HomeMy WebLinkAbout030680 ORD - 11/10/2015 ORDINANCE AUTHORIZING THE TAX INCREMENT REINVESTMENT ZONE #3
BOARD TO APPROVE EXPENDITURE OF FUNDS AND APPROVE
REIMBURSEMENT AGREEMENTS IN ACCORDANCE WITH THE PROJECT AND
FINANCING PLAN
WHEREAS, on December 16, 2008, the City Council of the City of Corpus Christi (the
"City Council") approved Ordinance 027996 (the "Creation Ordinance") establishing Tax
Increment Reinvestment Zone Number Three, City of Corpus Christi, Texas (TIRZ #3)
in accordance with the Tax Increment Financing Act, as amended (Texas Tax Code
Chapter 311) to promote development and redevelopment in the area through the use
of tax increment financing;
WHEREAS, TIRZ #3 is governed by a Board including City Council members and a
single representative from Nueces County and Del Mar College (the "Board");
WHEREAS, on August 25, 2015, after a long hiatus due to a period of recession, the
City Council approved the Project and Financing Plan (the "Plan") for TIRZ #3, pursuant
to the Creation Ordinance;
WHEREAS, the Creation Ordinance limits the powers of the Board to those powers
expressly delegated to it by the City Council; and
WHEREAS, both the City Council and the Board desire to implement the Plan and
establish an effective reimbursement program with the City as agent for the TIRZ #3
and the Board as the authorizing body, which will maximize the efficiency and timeliness
of approval of projects improving the economic health of the downtown area of the City.
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL:
SECTION 1. Expenditure of Funds. The Board is authorized to approve the
expenditure of funds necessary to implement the current approved Plan, both now and
in the future, until that authority is revoked by the City Council;
SECTION 2. Reimbursement Agreements. The Board is authorized to allow the City
Manager or his designee to enter into Reimbursement Agreements ("Agreements"), in
substantially the form attached to this ordinance as Exhibit A, with the Developer of
each Qualifying Project. All Agreements shall be subject to the approval of the Board if
the project in an Agreement meets the criteria of the Creation Ordinance, the Plan, this
Ordinance, and the current project guidelines for TIRZ #3. Changes in the attached form
of an Agreement may be allowed if the Board determines that the alteration is
commercially reasonable under the particular circumstances, but no Agreement may be
modified to create a program that is not authorized by the Plan and Creation Ordinance;
and
SECTION 3. Administration. Upon Board approval under Sections 1 and 2, City Staff
is charged with implementation and administrative duties, in coordination with the
Corpus Christi Downtown Management District.
030680
INDEXED
That the foregoing ordinance wa rad for the first time and passed to its second
reading on this the tray of ()(t b2r ,7,Q t5 by the following vote:
Nelda Martinez I • 1 Brian Rosas .,4 e
Rudy Garza , ,I/ Lucy Rubio
Chad Magill / Mark Scott I _4
Colleen McIntyre N r Carolyn Vaughn I At' 1
Lillian Riojas S .#!
That the f regoing ordinance was read for th second time and passed finally on this
the 1O1day of HOve oci., (Di , by the following vote:
Nelda Martinez —a-ael-- Rosas 1.
Rudy Garza ' Lucy Rubio It '
Chad Magill / 4! Mark Scott ac'
Colleen McIntyre t_ Carolyn Vaughn
Lillian Riojas ;
PASSED AND APPROVED, this the )Oayof 71 - 5
,
A ST•
k..*}..Q._,\ft.e,,,\ i.\ c.
Rebecca Huerta Nelda Martinez
City Secretary Mayor
030680
DOWNTOWN DEVELOPMENT REIMBURSEMENT AGREEMENT
This Downtown Development Reimbursement Agreement (the "Agreement") is entered into between
the City of Corpus Christi, Texas (the "City"), as the agent of the Corpus Christi Tax Increment
Reinvestment Zone#3 ("TIRZ#3"), and (the "Developer").
Recitals
WHEREAS on December 16, 2008, the City Council of the City (the "City Council") approved Ordinance
027996, which established the TIRZ #3 in accordance with Texas Tax Code Chapter 311. TIRZ #3
promotes economic development and stimulates business and commercial activity in its downtown
Corpus Christi area (the "Zone");
WHEREAS on August 25, 2015, the City Council approved a Project and Financing Plan (the "Plan") for
TIRZ#3;
WHEREAS the Board of Directors of TIRZ#3 (the "Board") includes members of the City Council in a non-
public-official capacity, as well as a representative from each Nueces County and Del Mar College, who
have committed to contribute to TIRZ#3 through Interlocal Agreements created in 2009 and amended
in 2012;
WHEREAS the Corpus Christi Downtown Management District ("DMD") assists the City with
administration of TIRZ #3, recommends projects and recommends a DMD representative to be
appointed to the Board through an Interlocal Agreement;
WHEREAS on , the City Council approved Ordinance , which
amended Ordinance 027996 and authorized the Board to approve agreements in this form, to be
entered into by the City, as the Board considers necessary or convenient to implement the Plan and
achieve its purpose;
WHEREAS the Plan contained certain programs designed to improve conditions and increase commerce
within the Zone;
WHEREAS the Developer has proposed a development plan (the "Development") for the certain
improvements listed on attached Exhibit A (each, an "Improvement" and, collectively, the
"Improvements"). The Improvements are planned to be constructed on the property located at
[ADDRESS], with such property being more fully described on attached Exhibit B (the "Property"). The
Property is located within the Zone, and the Improvements fall within one of the programs approved in
the Plan;
WHEREAS the Development concept has been refined through cooperation between the Developer, the
City and the DMD to meet the desired goals of revitalization within the Zone and serve a public benefit;
WHEREAS any reference to "City" or "City Staff," is entirely in agency capacity for TIRZ #3, and further
the City as a home-rule municipal corporation is not a party to this agreement; and
WHEREAS the Developer desires to be reimbursed for certain future costs incurred pursuant to the
Development, and TIRZ #3 desires to reimburse the Developer for these costs in accordance with this
Agreement;
1
Agreement
Now therefore, in consideration of the mutual covenants and obligations,the parties agree as follows:
Section 1. Reimbursement Obligations.
The City shall reimburse the Developer from available TIRZ #3 funds in an amount up to the estimated
project cost listed next to each Improvement in attached Exhibit C (the "Estimated Project Costs"),
except that (a)the total amount of such all such reimbursements for the Development may not exceed
$ and (b) if the Developer actually incurs a cost for an Improvement less than that
Improvement's Estimated Project Cost, the City shall reimburse the Developer for only the amount of
the cost that the Developer actually incurred for that Improvement. Based on qualifications of the
Development, the Program reimbursement structure is as follows (only the Programs pertaining to the
Development will be included in an actual Agreement):
(a) Chaparral Street Property Improvement Grant Program:
(1) 50/50 Match of Approved Expenses(Up to 70/30 may be considered on case-by case basis)
(2) Improvements must be permanent
(b) New Tenant Commercial Finish Out Grant Program:
(1) $10 Per Square Foot
(2) Improvements must be permanent, semi-permanent improvements or fixtures
(c) Downtown Living Initiative (minimum of 10 units must be built in order to qualify):
(1) $10,000 Per Unit
(d) Project Specific Development Agreement:
(1) Beginning the year after the Developer receives a Certificate of Occupancy ("C of 0") for the
Improvements from the City's Development Services Department, the City shall reimburse
annually up to 75% of the property taxes paid on the Improvements to the participating
taxing entities in TIRZ #3, for the 10 year period established in Exhibit A.
(2) Each such payment shall be made no later than 30 days following the Developer's submittal
of a valid Request for Reimbursement
(3) After City has paid to Developer an amount equal to all of the Project Costs, City shall have
no further obligation to pay any amount to Developer.
(4) No interest shall accrue on any amount of unreimbursed Project Costs, and City shall not be
obligated to pay Developer any interest whatsoever under this Agreement.
Section 2. Conditions for Reimbursement.
The City shall reimburse Developer in accordance with Section 1 only if the following conditions are
fulfilled:
(a) The Developer constructs all of the Improvements on the Property on or before (the
"Completion Date") in accordance with Exhibit A and the City's building codes and policies.
(b) The City's Development Services Department issues a C of 0 for the Improvements.
(c) Within 60 days of the issuance of C of 0, the Developer submits a Request for Reimbursement for
actual Project Costs, in the form contained in Exhibit D, including:
(i.) C of O;
2
(ii.) specific improvements completed under the Project and the amount of money that
Developer paid for completion of such work and that Developer claims as actual Project
Costs;
(iii.) supporting documents demonstrating that such amounts were actually paid by Developer,
including but not limited to invoices, receipts and final lien waivers signed by the general
contractor;
(d) Appropriate City Staff has inspected the Improvements and certifies that the Improvements are
complete, acceptable, and comport to the terms of this Agreement.
(e) Upon acceptance by City Staff, Request for Reimbursement form is reviewed and approved by the
Board.
Section 3. Audit
Developer will also make available for inspection by designated City Staff all financial and business
records of Developer that relate to the Project, in order to assist City Staff in verifying the Developer's
compliance with the terms and conditions of this Agreement. TIRZ#3 shall have the right to have these
records audited.
Section 4. Maintenance of Improvements.
If the Developer constructs the Improvements, the Developer shall maintain the Improvements,
premises, and adjacent public right of way in good condition and so as to not contribute to blight in the
Zone. The Developer's obligation to maintain the Improvements and public right of way adjacent to the
Property, includes without limitation, maintaining the landscaping, sidewalks, aesthetics, and general
cleanliness of the premises.
Section 5. Termination.
Unless sooner terminated in accordance with this Section, this Agreement shall survive the expiration of
TIRZ #3. If the Developer has not fully complied with Section 2 Conditions for Reimbursement by the
Completion Date, this Agreement shall terminate immediately, unless mutually agreed to in writing in
accordance with Section 16.
Section 6. Warranties.
Developer warrants and represents to City the following:
(a) Developer, if a corporation or partnership, is duly organized, validly existing, and in good standing
under the laws of the State of Texas, and further has all corporate power and authority to carry on
its business as presently conducted in Corpus Christi, Texas.
(b) Developer has the authority to enter into and perform, and will perform, the terms of this
Agreement.
(c) Developer has timely filed and will timely file all local, State, and Federal tax reports and returns
required by law to be filed, and has timely paid and will timely pay all assessments, fees, and other
governmental charges, including applicable ad valorem taxes, during the term of this Agreement.
(d) If an audit determines that the request for funds was defective under the law or the terms of this
agreement, Developer agrees to reimburse the City for the sums of money not authorized by law or
this Agreement within 30 days of written notice from the City requesting reimbursement.
3
(e) The parties executing this Agreement on behalf of Developer are duly authorized to execute this
Agreement on behalf of Developer.
(f) Developer does not and agrees that it will not knowingly employ an undocumented worker. If, after
receiving payments under this Agreement, Developer is convicted of a violation under §U.S.C.
Section 1324a(f), Developer shall repay the payments at the rate and according to the terms as
specified by City Ordinance, as amended, not later than the 120th day after the date Developer has
been notified of the violation.
Section 7. Force Majeure.
If the City or Developer are prevented, wholly or in part, from fulfilling its obligations under this
Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods,
governmental restraint or regulation, other causes of force majeure, or by reason of circumstances
beyond its control, then the obligations of the City or Developer are temporarily suspended during
continuation of the force majeure. If either party's obligation is affected by any of the causes of force
majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the
force majeure as soon as possible after the occurrence of the cause or causes relied upon.
Section 8. Assignment.
Developer may not assign all or any part of its rights, privileges, or duties under this Agreement without
the prior written approval of the Board. Any attempted assignment without such approval is void, and
constitutes a breach of this Agreement. Assignment can only be requested for multi-year
reimbursements, after completion of obligations by Developer.
Section 9. Indemnity.
Developer covenants to fully indemnify, save, and hold harmless the TIRZ#3, the City, their respective
officers, employees, and agents ("Indemnitees") against all liability, damage, loss, claims demands,
and actions of any kind on account of personal injuries (including, without limiting the foregoing,
workers'compensation and death claims), or property loss or damage of any kind, which arise out of
or are in any manner connected with, or are claimed to arise out of or be in any manner connected
with Developer activities conducted under or incidental to this Agreement, including any injury, loss or
damage caused by the sole or contributory negligence of any or all of the Indemnitees. Developer
must, at its own expense, investigate all those claims and demands, attend to their settlement or
other disposition, defend all actions based on those claims and demands with counsel satisfactory to
Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from
the liability, damage, loss, claims, demands, or actions.
Section 10. Events of Default.
The following events constitute a default of this Agreement:
(a) Failure of Developer to timely, fully, and completely comply with any one or more of the
requirements, obligations, duties, terms, conditions, or warranties of this Agreement.
(b) TIRZ #3, the Board or City Staff determines that any representation or warranty on behalf of
Developer contained in this Agreement or in any financial statement, certificate, report, or opinion
4
submitted to the TIRZ #3 in connection with this Agreement was incorrect or misleading in any
material respect when made.
(c) Developer makes an assignment for the benefit of creditors.
(d) Developer files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
Section 11. Notice of Default.
Should the City determine that Developer is in default according to the terms of this Agreement, the City
shall notify Developer in writing of the event of default and provide 60 days from the date of the notice
("Cure Period") for Developer to cure the event of default.
Section 12. Results of Uncured Default.
After exhausting good faith attempts to address any default during the cure Period, and taking into
account any extenuating circumstances that might have occurred through no fault of Developer, as
determined by the City, the following actions must be taken for any default that remains uncured after
the Cure Period.
(a) Developer shall immediately repay all funds paid from TIRZ#3 funds under this Agreement.
(b) Developer shall pay reasonable attorney fees and costs of court.
(c) The City and TIRZ#3 shall have no further obligations to Developer under this Agreement.
(d) Neither the City nor the TIRZ#3 may be held liable for any consequential damages.
(e) The City may pursue all remedies available under law.
Section 13. No Waiver.
(a) No waiver of any covenant or condition, or the breach of any covenant or condition of this
Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the
Agreement.
(b) No waiver of any covenant or condition, or the breach of any covenant or condition of this
Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or
condition or any other covenant or condition of this Agreement.
(c) Any waiver or indulgence of Developer's default may not be considered an estoppel against the City
or TIRZ#3.
(d) It is expressly understood that if at any time Developer is in default in any of its conditions or
covenants of this Agreement, the failure on the part of the City to promptly avail itself of the rights
and remedies that the City may have, will not be considered a waiver on the part of the City, but City
may at any time avail itself of the rights or remedies or elect to terminate this Agreement on
account of the default.
Section 14. Available Funds.
Developer specifically agrees that City and the TIRZ #3 shall only be liable to Developer for the actual
amount of the money due Developer under this Agreement from TIRZ #3 funds, and shall not be liable
to Developer for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost
of court for any act of default by City or the TIRZ#3 under the terms of this Agreement. Payment by City
is strictly limited to the total amount of increment funds for TIRZ #3. City shall use its best efforts to
anticipate economic conditions and to budget accordingly. However, it is further understood and
5
agreed that, should the actual tax increment funds be less than the total amount paid to all contracting
parties at the time, then in that event, all contracting parties shall receive only their pro rata share of
the available increment funds for that year, as compared to each contracting parties' grant amount for
that year, and City and the TIRZ#3 shall not be liable to for any deficiency at that time or at any time in
the future. In this event, City will provide all supporting documentation, as requested. Reimbursements
paid to Developer shall require a written request from Developer accompanied by all necessary
supporting documentation, as outlined in Section 2.
Section 15. Notices.
Any required written notices shall be sent by certified mail, postage prepaid, addressed as follows:
Developer:
City of Corpus Christi
Attn.: City Manager's Office
Tax Increment Reinvestment Zone#3
P.O. Box 9277
Corpus Christi,Texas 78469-9277
Notice is effective upon deposit in the United States mail in the manner provided above.
Section 16. Amendments or Modifications.
No amendments or modifications to this 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.
Section 17. Captions.
The captions in this Agreement are for convenience only and are not a part of this Agreement. The
captions do not in any way limit or amplify the terms and provisions of this Agreement.
Section 18. Severability.
If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this
Agreement or the application of this 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 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 Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this
Agreement be given full force and effect for its purpose.
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 Agreement, then the remainder of this Agreement is not
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
6
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 Agreement automatically.
Section 19. Venue.
Venue for any legal action related to this Agreement is in Nueces County, Texas.
Section 20. Sole Agreement.
This Agreement constitutes the sole agreement between City and Developer. Any prior agreements,
promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement,
are of no force and effect.
7
APPROVED AS TO FORM: day of , 2015.
Assistant City Attorney
For City Attorney
By:
City Manager/Designee
Date:
City of Corpus Christi on behalf of Tax Increment Reinvestment Zone#3
Attest:
By:
Rebecca Huerta
City Secretary
Developer
By:
President/Chief Executive Officer
Date:
8
Exhibit A—Project Description
Exhibit B—Property Description, Metes & Bounds, Plat
Exhibit C—Estimated Project Costs
Exhibit D—TIRZ#3 Reimbursement Request Form
9
Exhibit A— Project Description
Project will be described here.
10
Exhibit B—Property Description, Metes & Bounds, Plat
Legal Description of Property Here. Both Metes& Bounds and Plat will be separate pages.
11
Exhibit C—Project Costs
Improvement Estimated Cost Category
1)
2)
3)
4)
5)
Total Possible Reimbursement:
12
Exhibit D—Request for Reimbursement Form
City of Corpus Christi—City Manager's Office
Corpus Christi Downtown Management District
Tax Increment Reinvestment Zone #3
Request for Reimbursement
Project Name:
Grant Program:
Type of Reimbursement: LOne Time DRe-Occurring(First Payment)
Requestor: Date Requested:
Improvement Estimated Cost Actual Cost F Invoice
(Per Agreernent Exhibt C] (Per Attached Dooaneetaboni Reference
4
5)
TOTAL
Attached is the Following:
1) Executed TIRZ#3 Reimbursement Agreement ri
2) Certificate of Occupancy Date: C
3) Documentation of Expenses El
Signatures for Submittal:
Authorized Developer: Date:
Authorized General Contractor: Date:
An incomplete ireigaeitjar Reimbursement nal not be processed.916o*o hard copy and combined PDF
version to {yssas@ ctexas.cc.r.Upon receipt of Request fine inspection will be scheduled_
Signatures for Approval Process
Request Rec'd By City: Date: _
Documentation Complete: Inspection of Project:
Notes:
Reimbursement Approved by TIRZ#3 Board: Date:
Tax increment Reinvestment Zone#3 Request for Reimbursement
Updated October 2015
13