HomeMy WebLinkAboutC2009-179 - 5/12/2009 - ApprovedBUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION AND TEXAS A & M
UNIVERSITY -CORPUS CHRISTI FOR AN INTERN PROGRAM TO SUPPORT
SMALL BUSINESSES
This Business Incentive Agreement for ("Agreement") is entered into between the
Corpus Christi Business and Job Development Corporation ("Corporation") and Texas A
& M University -- Corpus Christi, a Texas institution of higher education ("TAMU-CC").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) 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 of Corpus Christi ("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 1/8th 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 Corpus Christi Business and Job
Development Corporation Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for
the purposes of encouraging and assisting entities in the creation of jobs for the citizens
of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives;
WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6,
Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the corporation;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on September 18, 2007;
WHEREAS, TAMU-CC has requested business development funds from the Board to
assist small businesses by providing access to students, who will serve as interns in
professional level positions;
WHEREAS, the small businesses will pay the student interns minimum wage (currently
$6.55 per hour, adjusting to $7.25 per hour on July 24, 2009) and TAMU-CC will match
the small business contribution.
2009-179
Res. 028159 Page 1 of 11
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TAMU-CC
WHEREAS, the interns will be selected based on the needs of the small businesses
with the goal of providing the businesses with resources that make the businesses more
effective and provide growth opportunities;
WHEREAS, the primary goal of the program is to provide support to small businesses in
Corpus Christi that will encourage growth, retention, economic development, and job
creation;
WHEREAS, the goal of the project is the creation of 1 new full time job for every 10
internship positions funded (a 10% new job "return on investment");
WHEREAS, a secondary benefit of the small business intern program is providing
students real-world experience, while they are making a living wage without working
extended hours and developing potential full-time employment opportunities following
graduation;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that business development funds be provided to TAMU-CC,
through this Agreement with TAMU-CC, to be used by TAMU-CC to assist small
businesses by providing access to students, who will serve as interns in professional
level positions.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and TAMU-CC agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
2. Term.
a. The term of this Agreement is for one year from August 1, 2009, through
July 31, 2010.
b. This Agreement may be extended at the option of the Corporation for up to
four additional one year terms, contingent upon annual appropriation of funds
and approval of the City Council.
c. If this Agreement is extended for subsequent period, this Agreement may be
amended by adoption of a revised Schedule A, which is attached to and
incorporated into this Agreement.
3. Grant.
a. The Corporation will grant TAMU-CC an incentive of up to One Hundred
Ninety Three Thousand One Hundred Forty Dollars ($193,140.00), which must
be used to fund one half of the salary of up to 105 interns and the entire salary
on three interns. The interns will be paid twice the minimum wage, while
participating in TAMU-CC's Small Business Employer Intern Program.
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b. The Corporation's grant conditioned upon TAMU-CC's successful completion
of the terms of this Agreement, including, but not limited to, the performance
requirements and conditions precedent in Schedule A.
c. The Corporation's grant shall be paid in monthly installments based upon
evidence of the amount paid by TAMU-CC to the small business employers
during the prior month.
4. TAMU-CC's Duties and Responsibilities.
a. TAMU-CC shall provide administrative oversight and direct supervision for the
placement of interns in the TAMU-CC's Small Business Employer Intern
Program.
b. TAMU-CC shall create and maintain not less than one part-time intern (1)
employment position to assist in the Small Business Employer Intern Program in
Corpus Christi, Nueces County, Texas, during the term of this Agreement. The
intern must be paid twice the minimum wage, which is scheduled to be $7.25 per
hour on July 26, 2009.
c. TAMU-CC shall place, with small businesses in Corpus Christi, the number of
interns specified in Schedule A, during each semester or summer session. Since
the primary goal of the TAMU-CC's Small Business Employer Intern Program is
to provide support to small businesses in Corpus Christi that will encourage
growth, retention, economic development, and job creation, placements must be
based on the needs of the small business with the goal of providing the business
with resources that make the business more effective and provide growth
opportunities for the businesses.
d. TAMU-CC shall ensure that the small business employer of each intern pays
the student intern the minimum wage, and TAMU-CC shall match the small
business employer's payments to the interns.
e. TAMU-CC shall try to place the interns for 20 hours per week and 12 weeks
per semester or summer session.
f. TAMU-CC shall work with the small businesses that receive interns under the
program to encourage the creation of permanent full time jobs for the interns or
similarly qualified individuals.
5. Job Creation Qualification.
a. In order to count as a created job under this Agreement, the job must pay
wages as required by Section 38(b) of the Development Corporation Act of 1979,
as amended, which is the median wage of the occupation in the Corpus Christi
MSA as determined by Texas Workforce Commission's Texas Industry Profiles
report.
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b. A full-time permanent job is one that provides at least 2,080 hours annually
c. TAMU-CC agrees to confirm and document to the Corporation that each job
created as a result of funding provided by this Agreement is maintained
throughout the term of this Agreement.
d. TAMU-CC agrees to provide Corporation with a sworn certificate by
authorized representative of each shall business assisted under this Agreement
certifying the number offull-time permanent employees employed by the
business assisted through the Intern Program.
e. TAMU-CC shall ensure that the Corporation is allowed reasonable access to
personnel records of the businesses assisted under this Agreement.
6. Reports and Monitoring.
a. TAMU-CC shall provide a report at the end of each semester or summer
session certifying the status of compliance through the life of the Agreement.
Documentation for jobs may be in the form of quarterly IRS 941 returns, TAMU-
CC employer Quarterly Reports, or employee rosters that show the hours worked
and the positions filled, and such other reports as may reasonably be required.
b. TAMU-CC, during normal working hours shall allow the Corporation and its
designee, City of Corpus Christi Economic Development Department, reasonable
access to TAMU-CC's employment records and books, to verify employment and
all other relevant records related to each of the other economic development
considerations and incentives, as stated in this Agreement, but the confidentiality
of the records and information must be maintained by Corporation and its
designee, unless such records and information shall be required by a court order,
a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney
General.
7. Warranties. TAMU-CC warrants and represents to Corporation the following:
a. TAMU-CC has the authority to enter into and perform, and will perform, the
terms of this Agreement.
b. The individual executing this Agreement on behalf of TAMU-CC is duly
authorized to execute this Agreement on behalf of TAMU-CC.
c. No litigation or governmental proceeding is pending or, to the knowledge of
TAMU-CC or TAMU-CC's officers, threatened against or affecting TAMU-CC that
may result in any material adverse change in TAMU-CC's business, properties,
or operations. No consent, approval, or authorization of or registration or
declaration within any governmental authority is required in connection with the
execution of this Agreement or the transactions contemplated by this Agreement.
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d. No certificate, statement, or information provided by TAMU-CC to Corporation
or the City of Corpus Christi in connection with any transaction contemplated by
this Agreement, contains any untrue statements or fails to state any fact
necessary to keep the statements contained in the certificate, statement, or
information from being misleading.
e. To the best of its knowledge, TAMU-CC has acquired and maintained all
necessary rights, licenses, permits, and authority to carry out this Agreement,
and will continue to use its best efforts to maintain all necessary rights, licenses,
permits, and authority.
f. The funds granted through this Agreement must be utilized solely for the
purpose of offsetting the cost of creating and maintaining the interns for TAMU-
CC's Small Business Employer Intern Program.
g. TAMU-CC shall complete the project required by this Agreement, and shall
provide and staff the required employment positions, investment, and other
economic development considerations described in this Agreement.
h. TAMU-CC shall timely and fully comply with all of the terms and conditions of
this Agreement.
i. TAMU-CC has received a copy of the Subtitle C1, Title 12, Texas Local
Government Code, which governs development corporations, and acknowledges
that the funds granted in this Agreement must be utilized solely for purposes
authorized under State law and by the terms of this Agreement.
j. In the event it is determined by Corporation or City of Corpus Christi that funds
provided under this Agreement were not used as authorized by State law, then
TAMU-CC shall repay the funds to the Corporation within 30 days of written
notice requesting reimbursement.
k. If an audit determines that the funds were not used for authorized purposes ,
TAMU-CC agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
I. There are no bankruptcy proceedings currently pending concerning TAMU-CC,
nor are any such proceedings contemplated by TAMU-CC, as of the date of
execution of this Agreement by TAMU-CC.
m. TAMU-CC shall provide information, reports, or statements respecting its
business operations and financial condition as Corporation may reasonably
request from time to time.
8. All representations, warranties, covenants, and agreements of the parties, as well as
any rights and benefits of the parties pertaining to the transaction contemplated by this
Agreement, shall survive the original execution date of this Agreement.
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9. Compliance with Laws. TAMU-CC shall observe and obey all applicable laws,
ordinances, regulations, and rules of the Federal, State, county, and city governments.
10. Non-Discrimination. TAMU-CC covenants and agrees that TAMU-CC will not
discriminate nor permit discrimination against any person or group of persons, with
regard to employment and the provision of services at, on, or in the Facility, on the
grounds of race, religion, national origin, marital status, sex, age, disability, or in any
manner prohibited by the laws of the United States or the State of Texas.
11. Force Majeure. If the Corporation or TAMU-CC 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 Corporation or TAMU-CC 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.
12. Assignment. TAMU-CC may not assign all or any part of its rights, privileges, or
duties under this Agreement without the prior written approval of the Corporation and
City. Any attempted assignment without approval is void, and constitutes a breach of
this Agreement.
13. Indemnity. To the extent authorized bylaw, TAMU-CC covenants
to fully indemnify, save, and hold harmless the Corporation, 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 TAMU-CC 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.
TAMU-CC must, at its own expense, investigate all those claims and
demands, attend to their seftlement 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.
14. Events of Default. The following events constitute a default of this Agreement
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a. Failure of TAMU-CC to timely, fully, and completely comply with any one or
more of the requirements, obligations, duties, terms, conditions, or warranties of
this Agreement.
b. The Corporation or City determines that any representation or warranty on
behalf of TAMU-CC contained in this Agreement or in any financial statement,
certificate, report, or opinion submitted to the Corporation in connection with this
Agreement was incorrect or misleading in any material respect when made;
15. Notice of Default. Should the Corporation or City determine that TAMU-CC is in
default according to the terms of this Agreement, the Corporation or City shall notify
TAMU-CC in writing of the event of default and provide 60 days from the date of the
notice ("Cure Period") for TAMU-CC to cure the event of default.
16. 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 TAMU-CC, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period.
a. TAMU-CC shall immediately repay all funds paid by Corporation under this
Agreement.
b. TAMU-CC shall pay Corporation reasonable attorney fees and costs of court
to collect amounts due to Corporation.
c. The Corporation shall have no further obligations to TAMU-CC under this
Agreement.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
17. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenantor
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 TAMU-CC' default may not be considered an
estoppel against the Corporation.
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d. It is expressly understood that if at any time TAMU-CC is in default in any of
its conditions or covenants of this Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Agreement on account of the default.
18. Limitation on Corporation's Liability. TAMU-CC specifically agrees that Corporation
shall only be liable to TAMU-CC for the actual amount of the money grants to be
conveyed to TAMU-CC ,and shall not be liable to TAMU-CC for any actual or
consequential damages, direct or indirect, interest, attorney fees, or cost of court for any
act of default by Corporation under the terms of this Agreement.
a. Payment by Corporation is strictly limited to those funds so allocated,
budgeted, and collected solely during the grant term of this Agreement, being
August 1, 2009, through July 31, 2010.
b. Corporation will use its best efforts to anticipate economic conditions and to
budget accordingly.
c. However, it is further understood and agreed that, should the actual total sales
tax revenue collected for any one year be less than the total amount of grants to
be paid to all contracting parties with Corporation forthat year, then in that event,
all contracting parties shall receive only their pro rata share of the available sales
tax revenue for that year, less Corporation's customary and usual costs and
expenses, as compared to each contracting parties' grant amount for that year,
and Corporation shall not be liable to for any deficiency at that time or at any time
in the future. In this event, Corporation will provide all supporting documentation,
as requested.
d. Payments to be made shall also require a written request from TAMU-CC to
be accompanied by all necessary supporting documentation.
19. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
TAMU-CC:
Texas A & M University -- Corpus Christi
c/o Jim Needham
Dean of Community Outreach
6300 Ocean Drive, NRC 2200
Corpus Christi, Texas 78412
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Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the
following address:
City of Corpus Christi
Attn.:City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
20. Incorporation of Other Documents. The Corpus Christi Business and Job
Development Corporation Guidelines and Criteria for Granting Business Incentives
("Corporation Guidelines"), as amended, are incorporated into this Agreement.
21. 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.
22. Relationship of Parties. In performing this Agreement, both the Corporation and
TAMU-CC will actin an individual capacity, and not as agents, representatives,
employees, employers, partners, joint-venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
23. 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.
24. Severability.
a. 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,
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SCHEDULE A
TAMU-CC's TIME OF TAMU-CC's CORPORATION's
PERFORMANCE CONDITIONS MAXIMUM
PRECEDENT AND PAYMENT
PERFORMANCE TOWARD
REQUIREMENTS GRANT DURING
PERIOD
Fall Semester 2009 Placement of not more $64,380.00
than 35 interns with
September 1 through small businesses in
December 31, 2009 Corpus Christi, plus
employment of 1 intern
to assist in program
administration.
Spring Semester 2010 Placement of not more $64,380.00
than 35 interns with
January 1 through May small businesses in
31, 2010 Corpus Christi, plus
employment of 1 intern
to assist in program
administration.
Summer Session 2010 Placement of not more $64,380.00
than 35 interns with
June 1 through July small businesses in
31, 2010 Corpus Christi, plus
employment of 1 intern
to assist in program
administration.
A -- 1
BUSINESS INCENTIVE AGREEMENT - TAMUCC Interns - 05012009