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HomeMy WebLinkAboutC2011-470 - 11/15/2011 - ApprovedBUSINESS INCENTIVE PROJECT SERVICE AGREEMENT LAKESIDE STEEL TEXAS, INC. This Business Incentive Project Service Agreement ( "Project Service Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi; Texas ( "City "). WHEREAS, the Texas Development Corporation Act, now codified as Title 12, Subtitle C1 (Chapters-50l.- 507) of the Texas Local Government Code, 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 residents; 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 118 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the Texas Comptroller, effective April 1, 2003, to be administered by the Corporation's Board of Directors ( "Board "); WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the residents of the City; WHEREAS, the Board amended the Corporation's Guidelines and Criteria for Granting Business Incentives ( "Guidelines ") on October 18, 2010; WHEREAS, Section 501.073 of the Texas Local Government Code, requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the amended Guidelines on November 9, 2010; WHEREAS, Lakeside Steel Texas, Inc. ( "Lakeside ") has submitted a proposal to the Corporation for a grant, that can be up to $150,000 depending on the number of retained and new jobs created, for investment in building improvements, computer purchases, office stations, furniture and fixtures; WHEREAS, the Board has determined that it is in the best interests of the residents of the City to provide business development funds to Lakeside; and WHEREAS, the Corporation and Lakeside have executed that certain Business Incentive Agreement Between the Corporation and Lakeside for the creation of jobs ( "Business Incentive Agreement "). In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Corporation and the City hereby agree as follows: 2011 -470 11/15/11 Res.029284 Page 1 of 3 cCBJvc INDEXED 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Corporation is executed to implement the Business Incentive Agreement. 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 the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentive Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by the City Council. 5. Effective Date. The effective date of this Project Service Agreement is the latest date that either party executes this Project Service 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, orword 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. Page 2 of 3 S. 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. CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION c - a k'w Ro ald L. 016h y U gal a r City Manager resident Date: Z Date: Attest Armando Chapa City Secretary Approved as to Legal Form: , 2011. L. Brian Narvaez Assistant City Attorney for City Attorney 1�-es nab zS� 07 mpcm��Is s�r�r v" Page 3 of 3