HomeMy WebLinkAboutC2009-527 - 10/13/2009 - ApprovedFIRST AMENDMENT TO
AGREEMENT TO GRANT BUSINESS INCENTIVES TO
TURNER INDUSTRIES GROUP, LLC,
FOR THE CREATION OF JOBS
A. The Agreement to Grant Business Incentives for the Creation of Jobs ("Agreement")
between the Corpus Christi Business and Job Development Corporation ("Corporation")
and Turner Industries Group, LLC, last executed on January 8, 2008, is amended as
follows:
1. The paragraph of Section II is revised to read as follows:
"II. ECONOMIC BENEFITS AND INCENTIVES AND PERFORMANCE
REQUIREMENTS
"2.1 BY THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION
".1 Money Grant: Corporation will convey by grant to TIG a total of One
Million Eight Hundred Fifty Thousand Dollars ($1,850,000.00) in {f"four 4
increments, as set forth in Schedule A, subject to the performance requirements
of TIG and the conditions precedent as set forth in Schedules A, B, and C and
that TIG has timely and fully complied with all applicable terms and conditions
contained in this agreement. All Corporation payments are subject to the TIG's
successful completion of all of performance requirements outlined in this
Agreement.
"Failure by Corporation to timely and fully comply with any performance
requirement shall be an act of default by Corporation giving TIG, as its sole
remedy, the right to the contracted amount to be conveyed and further being
limited to the terms and conditions contained in Article VII, paragraph 7.1, hereof.
"SCHEDULE A
"TIG's CONDITIONS "TIG's TIME OF "CORPORATION's
PRECEDENT AND PERFORMANCE PERFORMANCE
PERFORMANCE REQUIREMENTS
REQUIREMENTS
"Acquisition/construction of "Proof of "$8~A;98~ 860 500
an administrative office acquisition/construction of payable on or before April
building, fabrication facility, manufacturing facility; 1,~9 2010 °^r^°~' ^^^'
lay-down yard, and Proof of capital investment °
materials storage area for of at least $6,600,000 prior °
the fabrication of pipe to December 31,~AAS sfealier~.
products for the 2009; Proof of beginning
etrochemical Indust at a and maintainin full-time
2009-527
Res. 028344 Page 1 of 8
10/13/09 centive Agreement --10282009.doc
Turner Industries Group
total capital investment of at
least $6,600,000, beginning
and maintaining full-time
production with the
equipment, and either the
creation and continued
staffing of a minimum of fifty
(50) full-time employment
positions with an average
annual salary of $46,886
per position or a cumulative
annual payroll at the facility
of $2,344,300.
"Continued construction of
an administrative office
building, fabrication facility,
lay-down yard, and material
storage area for. the
fabrication of pipe products
for the petrochemical
industry at a total capital
investment of at least
$3;4~8~888 $2,400,000,
maintaining full-time
production with equipment;
and either the creation and
continued staffing of a
minimum of an additional
~.°.,°.,+., fi.,° ~~~~ fift 50
full-time employment
positions and continued
staffing of a minimum of fifty
(50) full-time employment
positions with an average
annual salary of $49;A84
48 651 per position or a
cumulative annual payroll at
the facility of~88
$4,865,100.
~~
~nrl °i+h°r +h° nr°~+inr• .~r•rl
production with equipment
at Facility on or before
December 31,~A9~ 2009;
Proof of either creation and
continued staffing of a
minimum of 50 full-time
employment positions each
with an average annual
salary of $46,886 each or a
cumulative annual payroll at
the facility of $2,344,300 on
or before December 31,
~AB~ 2009
"Proof of capital investment
of at least $3;4~88;A09
$2,400,000 prior to
December 31,9 2010,
with completion of
construction of the facility
before December 31,9
2010; either creation and
continued staffing of a
minimum of c°•~°^+•~ {i•~°
{~}~50~full-time
employment positions and
continued staffing of a
minimum of 50 full-time
employment positions each
with an average annual
salary of $49;884 48 651
per position or a cumulative
annual payroll at the facility
of~6~388 $4,865,100.
"$3988- 472 000
payable on or before April
1,~8 2011 °°r^°~' °^~'
0
0
nr°v~'GUCim7.
~~
minirr•~ ~m ivf 7C• ~~ III +irr•°
"$3~8;88~ 342 500
payable on or before April
1,~A~-1.2012. °^~-~r~
Page 2 of 8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
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"Completion of construction
of an administrative office
building, fabrication facilit rl~
lay-down yard, and
materials storage area;
along with required
equipment and furnishings;
with a capital investment of
$1,000,000, for a total
capital investment of at
least $10,000,000,
beginning and maintaining
full-time production with the
equipment, and the creation
of a minimum of an
additional fifty (50) full-time
employment positions and
continued staffing of a
minimum of one hundred
(100) full-time employment
positions with an average
annual salary of $51,326
per position or a cumulative
annual payroll at the facility
of $7,698,900.
"Maintaining full-time
production with equipment;
and either the creation and
continued staffing of a
minimum of an additional
+..,°.,+., inn` thirty five (35Z
full-time employment
positions and continued
of a minimum of one
"Proof of completion of
construction of
manufacturing facility
Proof of capital investment
of at least $1,000,000, for a
total capital investment of
$10,000,000 prior to
December 31 2011 • Proof
of maintaining full-time
production with equipment
at Facility on or before
December 31, 2011; Proof
of creation of a minimum of
an additional fifty (50) full-
time employment positions
and continued staffing of a
minimum of one hundred
(100) full-time employment
positions each with an
average annual salary of
$51,326 each or a
cumulative annual payroll at
the facility of $7,698,900 on
or before December 31,
2011.
"Proof of either creation and
continued staffing of a
minimum of ~A-35 full-time
employment positions and
continued staffing of a
minimum of 150 full-time
employment positions each
with an average annual
"$~A;9AA- 175 000
payable on or before April
1,~Aa-2 2013.,~a;,;ed-ae~
0
0
nr°arcaiivrT
salary of
Page 3 of 8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
hundred fifty (150) full-time or a cumulative annual
employment positions with payroll at the facility of
an average annual salary of $10,270,090 on
X53-,-3~9- 54 514 per or before December 31,
position or a cumulative ~4 2012.
annual payroll at the facility
of $10,270,090.
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"2.2 BY Turner Industries Group, LLC
".1 Investment-Production Facility: TIG agrees that it shall acquire/construct
and occupy for five (5) years beginning April 1, 2008, and ending five (5) years
thereafter or December 31, 2012 whichever occurs later, a fabrication facility in
Corpus Christi, Nueces County, Texas, as set forth in Schedule B below.
"Failure by TIG to timely and fully comply and to continue to comply with any
performance requirement of this agreement shall be an act of default.
Page 4 of 8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
"SCHEDULE B
"TIG's PERFORMANCE
REQUIREMENTS
"Acquisition and start of construction of a
fabrication facility to include an
administrative office building, fabrication
facility, lay-down yard, and material
storage areas; along with required
equipment and furnishings; with capital
investment of at least $6,600,000; occupy
and full-time operations at production
facility.
"Continued construction of a fabrication
facility to include an administrative office
building, fabrication facility, lay-down yard,
and material storage areas: along with
required equipment and furnishings: with
capital investment of at least $2,400,000,
for a total capital investment of at least
$9,000,000: occupy and full-time
operations at production facility-
"Completion of construction of a fabrication
facility to include an administrative office
building, fabrication facility, lay-down yard,
and material storage areas; along with
required equipment and furnishings; with
capital investment of at least ,
$1,000,000, for a total capital investment
of at least $10,000,000; occupy and full-
time operations at production facility.
"TIG's TIME OF PERFORMANCE
"~eeer~er-3~; 28Ao December 31, 2009.
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c~~rv~° fi~i° /C.~ v°~r n°rin~
"December 31, 2010
"accer~°~~~~December 31, 2011
".2 Employment:
"TIG agrees that it shall create, staff and maintain full-time employment positions
for its fabrication facility, administrative office and lay-down yard, in Corpus
Christi, Nueces County, Texas, as set forth in Schedule C.
Page 5 of 8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
"The jobs shall be primarily engaged in serving a customer base outside a 50-
mile radius of the city of Corpus Christi.
"Failure by TIG to timely and fully comply and to continue to comply with any
performance requirement of this agreement shall be an act of default.
"SCHEDULE C
"TIG's PERFORMANCE "TIG's TIME OF PERFORMANCE
REQUIREMENTS
"Fifty (50) full-time employment positions December 31, 2009
at TIG's production facility, average annual
salary for each position $46,886 or a
cumulative annual payroll of $2,344,300.
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~~T,.,o„+., fi.,o /~~\ ~,+,+i+i,,.,.,~ Fift~(50~ "December 31, 2010
additional full-time employment positions
and continued staffing of a minimum of fifty
(50) full-time employment positions at
TIG's production facility, average annual
salary for each position $5~~28-- 48 651
or a cumulative annual payroll of
$~ $4,865,100.
~~T~~,en+" /~n\ Fift 50 additional full-time "December 31, 2011
employment positions and continued
staffing of a minimum of one hundred
(100) full-time employment positions at
TIG's production facility, average annual
salary for each position $9- 51 326
or a cumulative annual payroll of
$A $7,698,900.
Page6of8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
"~~~°°^ ~~ ~` Thirty five (35) additional full-
time employment positions and continued
staffing of a minimum of one hundred fifty
(150) full-time employment positions at
TIG's production facility, average annual
salary for each position $55,514 or a
cumulative annual payroll of $10,270,090.
"December 31, 2012"
B. This amendment to the Agreement takes effect on the latest date that either party
executes this amendment
C. This amendment does not effect the term of the Agreement.
D. Any provision of the Agreement that is not expressly amended by this amendment
remains unchanged and in full force and effect.
E. This amendment to the Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and constitute one and the same instrument.
EXECUTED on the date shown opposite the signature of each party.
Corpus Christi Business & Job Development Corporation
By:
o Sa azar
airperson
Date: I-~~~~-U/~
Attest
By:
Armando Chapa
Assistant Secretary
Turner Industries Group, LLC.
By:
Name: Jo . Go he
Page7of8
,,~.~ • ~Ja ~3„~"T AUTNUKI~'~
Y C~UNClL ~ ® (3 9"t
SECRETARY ~l~J
FirstAmendment --Turner Business Incentive Agreement --10282009.doc
Title: Senior Vice-President and Regional Manager
Date: .b~~~ 30 ~ ~
Federal Tax ID No.: 72-1513047
The State of Texas §
County of Nueces §
Before me, ~onnie /r1 • Pa ~c~on (Notary's name), on this day
personally appeared John M. Golashesky, Senior Vice-President and Regional
Manager of Turner Industries Group, LLC., known to me to be the person whose name
is subscribed to the foregoing instrument and acknowledged to me that he executed the
same in the capacity stated as the act of Turner Industries Group, LLC., a limited liability
company authorized to do business in Texas, for the purposes and consideration
expressed in the instrument.
Given under my hand and seal of office this the3b`w" day of ~, 2009.
(/~ N~ /%,~'l ~~,.[.,1 ~ ) \\\\\\HNlllllllllll//////////
Notary Public, State of Texas ;~~°°~~•P~v p~~•'r~
~~ N~9lF OF S~+Q
Page8of8
FirstAmendment --Turner Business Incentive Agreement --10282009.doc