HomeMy WebLinkAbout030500 ORD - 05/12/2015 Page 1 of 3
Ordinance
Approving a Business Incentive Agreement between the Corpus
Christi Business and Job Development Corporation ("Type A
Corporation") and Govind Development, LLC ("Govind") to provide a
grant of up to $908,000, for the creation and retention of jobs and
authorizing the City Manager, or designee, to execute a Business
Incentive Project Service Agreement with the Type A Corporation
regarding implementation and administration of the Govind Business
Incentive Agreement for the creation and retention of jobs; and
appropriating $908,000 from the unreserved fund balance in the No.
1140 Business/Job Development Fund for said business incentive
grant from the Type A Corporation to Govind; and changing the FY
2014-2015 operating budget, adopted by Ordinance No. 030294, by
increasing expenditures by $908,000.
Whereas, the Type A Corporation has budgeted funds to assist businesses create or
retain jobs in the City of Corpus Christi, Texas ("City").
Whereas, the Type A Corporation has requested proposals from businesses that will
create or retain jobs within the City, and determined that the proposal from Govind for
the creation of at least 44 full-time jobs and the retention of at least 162 full-time jobs an
average annual salary of at least $87,200 over a five year period will best satisfy this
goal;
.Whereas, City Council deems that it is the best interest of the City and citizens to
approve the business incentive agreement for creation and retention of jobs between
the Type A Corporation and Govind;
Whereas, there is a need for a business incentive project service agreement between
the City and the Type A Corporation for the implementation and administration of the
business incentive agreement for the creation of jobs between the Type A Corporation
and Govind.
Now, therefore, be it ordained by the City Council of the City of Corpus Christi,
Texas:
SECTION 1. That the business incentive agreement for the creation and retention of
jobs between the Type A Corporation and Govind that provides for the creation and the
retention of jobs within the City of Corpus Christi, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
service agreement between the City and Type A Corporation for the implementation and
administration of the business incentive agreement with Govind, which is attached to
this ordinance as Exhibit A.
ORDINANCE-Govind
1} 30500
INDEXED
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SECTION 3. That $908,000 from the unreserved fund balance in the No. 1140
Business/Job Development Fund is appropriated for a business incentive grant from the
Type A Corporation to Govind for the creation and retention of jobs.
SECTION 4. That Ordinance No. 030294, which adopted the FY 2014-2015 Operating
Fund, is changed to increase proposed expenditures in the No. 1140 Business/Job
Development Fund by $908,000 for a business incentive grant from the Type A
Corporation to Govind for the improvements to their engineering facility and the creation
and retention of jobs.
ATTEST: THE CITY OF CORPUS CHRISTI
Rebecca Huerta Nelda Martinez
City Secretary Mayor
APPROVED: '1/day of 2015.
Corpus Christi, Texas
That the foregoing ordinonce was read for the first time and passed to its second
reading on this the y Vay of ajyLQ., ., 2015, by the following vote:
Nelda Martinez Brian Rosas _aLt
Carolyn Vaughn Colleen McIntyre (V.,
Rudy Garza Lillian Riojas / 1
Lucy Rubio Mark Scott
Chad Magill
ORDINANCE-Govind
Page 3 of 3
That the foregoing ordinance was read for the second time and passed finally on this
the 1 ZP-day of , 2015, by the following vote:
Nelda Martinez d Brian Rosas
��(/�
Carolyn Vaughn I tc Colleen McIntyre 0.--(f
Rudy Garza IXA1Lillian Riojas _14_
Lucy Rubio Mark Scott _(k
Chad Magill I�J°
4
PASSED AND APPROVED, this the day of r _ , 2015.
ATTEST:
114,,,t,e, 4,,,J(J—?--, ..1,..e.4,..._
Rebecca Huerta Nelda Martinez
City Secretary Mayor
ORDINANCE-Govind 030500
BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT
GOVIND DEVELOPMENT, LLC
This Business Incentives Project Service Agreement ("Project Service Agreement") is entered
into between the Corpus Christi Business and Job Development Corporation ("Type A
Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil
Statutes (Development Corporation Act of 1979), now codified as Subtitle Cl, Title 12, Texas
Local Government Code ("the Act"), empowered local communities with the ability to adopt an
optional local sales and use tax as a means of improving the economic health and prosperity of
their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the
promotion and development of new and expanded business enterprises at the rate of one-
eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently
enacted by the City Council and filed with the State Comptroller of Texas, effective April 1,
2003, to be administered by the Type A Corporation's Board of Directors ("Board");
WHEREAS, the Type A Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for
Granting Business Incentives on October 18, 2010, which the City Council approved on
November 9, 2010;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and
expenditures of the Type A Corporation;
WHEREAS, Govind Development, LLC ("Govind") has submitted a proposal to the Type A
Corporation for a $908,000 grant for the creation and retention of jobs at their engineering
facility;
WHEREAS, on January 19, 2015 the Board has determined that it is in the best interests of the
citizens of Corpus Christi, Texas, to fund Govind's creation and retention jobs; and
WHEREAS, the Type A Corporation and Govind have executed a business incentives
agreement for the creation and retention of jobs related to Govind's engineering facility.
In consideration of the covenants, promises, and conditions stated in this Project Service
Agreement, the Type A Corporation and the City agree as follows:
1. Project Service Agreement to Implement Business Incentives Agreement. This Project
Service Agreement between the City and the Type A Corporation is executed to implement the
Business Incentive Agreement for the Creation and Retention of Jobs between the Type A
Corporation and Govind related to their engineering facility in Corpus Christi ("Business
Incentive Agreement").
Page 1 of 3
Project Service Agreement-Govind
2. Term. The term of this Project Service Agreement runs concurrently with the term of the
Business Incentive Agreement.
3. Services to be Provided by City.
a. The City Manager or designee shall administer funding on behalf of the Type A
Corporation.
b. The City Manager or designee shall perform contract administration responsibilities
outlined in the Business Incentive Agreement for the Type A Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to appropriation of
funds by City Council.
5. Effective Date. The effective date of this Project Service Agreement is the same date as the
Business Incentive agreement.
6. Amendments or Modifications. No amendments or modifications to this Project Service
Agreement may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or
word of this Project Service Agreement or the application of this Project Service
Agreement to any person or circumstance is, to any extent, held illegal, invalid, or
unenforceable under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Project Service Agreement, or the application of
the term or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the
definite intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or unenforceable
under present or future law effective during the term of this Project Service Agreement,
then the remainder of this Project Service Agreement is not affected by the law, and in
lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as
similar in terms to the illegal, invalid, or unenforceable clause or provision as may be
possible and be legal, valid, and enforceable, will be added to this Project Service
Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only and are
not a part of this Project Service Agreement. The captions do not in any way limit or amplify the
terms and provisions of this Project Service Agreement.
The remainder of this page intentionally left blank.
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Project Service Agreement-Govind
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Bart Braselton
City Manager President
Date: Date:
Attest
Rebecca Huerta
City Secretary
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Project Service Agreement-Govind
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7&8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money required
for the current fiscal year's portion of the contract, agreement, obligation or expenditure described
below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
City Council Action Date: May 12, 2015
Agenda Item:
Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development
Corporation ("Type A Corporation") and Govind Development, LLC ("Govind") to provide a grant of up
to $908,000, for the creation and retention of jobs and authorizing the City Manager, or designee, to
execute a Business Incentive Project Service Agreement with the Type A Corporation regarding
implementation and administration of the Govind Business Incentive Agreement for the creation and
retention of jobs; and appropriating $908,000 from the unreserved fund balance in the No. 1140
Business/Job Development Fund for said business incentive grant from the Type A Corporation to
Govind; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by
increasing expenditures by $908,000.
Amount Required: $ 908,000
Fund Name Account No. Fund No. Org. No. Project No. Amount
CCBJDC 530000 1140 15020 $908,000
Total $ 908,000
❑ Certification Not Required
Director of Financial Services
Date: APR 2 8 0115
/S- 00