HomeMy WebLinkAboutC2018-728 - 11/27/2018 - Approved BUSINESS INCENTIVE AGREEMENT BETWEEN
THE CORPUS CHRISTI B CORPORATION AND LAVISTA POINTE, LP
FOR CREATION AND RETENTION OF JOBS
This Business Incentive Agreement for Capital Investments and the Creation and
Retention of Jobs ("Agreement") is entered into between the Corpus Christi B Corporation
("Corporation") and LaVista Pointe, LP ("Company"), a Texas limited partnership.
WHEREAS, the Texas Legislature in Chapter 501 et seq. of the Local Government Code
(Development Corporation Act of 1979) (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 8, 2016, residents of the City passed Proposition 1, Adopt
Type B Sales Tax to Replace Expiring Portion of Type A Sales Tax, which authorized the
adoption of a sales and use tax to be administered by a Type B Corporation at the rate of
one-eighth of one percent to be imposed for 20 years with use of the proceeds for (1)
50%to the promotion and development of new and expanded enterprises to the full extent
allowed by Texas law, (2) $500,000 annually for affordable housing, and (3) the balance
of the proceeds for the construction, maintenance and repair of arterial and collector
streets and roads;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 1 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2018, to be administered by the Corpus Christi B Corporation Board;
WHEREAS, the Corpus Christi B Corporation exists for the purposes of encouraging and
assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs
and expenditures of the Corporation;
WHEREAS, Company proposes to develop a 150-apartment complex on North Beach,
which will include an iconic lighthouse, located 4933 West Causeway Boulevard, which
is in a designated Texas Enterprise Zone (the "Project");
WHEREAS, Company proposes to invest approximately $14 million over a five-year
period;
C2018-728
11/27/18 1
Ord. 031600 _aVista
LaVista Pointe LP
S ANNED
WHEREAS, on September 17, 2018, the Board determined that it is in the best interests
of the citizens of Corpus Christi, Texas that business development funds be provided to
Company, through this Agreement with Company, to be used by Company to develop the
Project with its iconic lighthouse feature.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and Company agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement, or the date this Agreement has been
finally approved by the City's City Council. Company understands that this Agreement is
dependent upon the approval of City Council.
2. Term. The term of this Agreement is for five years beginning on the Effective Date.
3. Performance Requirements.
a. Company agrees to use the $625,000 described below to pay for the creation
of certain infrastructure improvements allowed under Section 501.103 of the Texas
Local Government Code needed for the Project.
b. Company agrees to provide the Corporation with a sworn certificate by an
authorized representative of the Company, certifying the amount used for
infrastructure improvements.
c. Company will provide the Corporation with a detailed list of infrastructure
expenditures each year within 30 days of the anniversary of the Effective Date until
construction is complete.
d. During the term of this Agreement, the Project will create at least eight new full-
time equivalent positions in the City of Corpus Christi.
e. During the term of this Agreement, Company will invest at least $14,000,000 in
the Project. Investment may include borrowed funds.
f. Company will begin construction on the Project on or before July 1, 2019. If
Company fails to begin construction by July 1, 2019, this Agreement will
automatically terminate.
4. Grant Award.
a. The Corporation will grant Company the amount of $625,000, to be paid to
Company so long as all of the terms and conditions of the Agreement are met prior
to the Agreement's expiration or earlier termination.
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Type B Business Incentive Agreement LaVista
b. The grant ($625,000)will be paid to the Company within 60 days after Company
provides documentation that it has received a permanent certificate of occupancy
for the Project issued by the City's Development Services department. Along with
the Certificate of Occupancy, Company must submit certification that there are no
mechanics, contractor's or materialman's liens against the property and provide
documentation establishing that all other performance requirements, including the
creation of jobs, have been met. If Company does not provide the required
documentation prior to the end of the Term, this Agreement shall expire, and
Company shall not be entitled to the grant funds.
5. Utilization of Local Contractors and Suppliers. Company agrees to exercise
reasonable efforts in utilizing local contractors and suppliers, when available, in the
construction of the Project, except where not reasonably possible to do so without added
expense, substantial inconvenience, or sacrifice in operating efficiency in the normal
course of business, with a goal of 50% of the total dollar amount of all construction
contracts and supply agreements being paid to local contractors and suppliers. For the
purposes of this section, the term "local" as used to describe manufacturers, suppliers,
contractors, and labor includes firms, businesses, and persons who reside in or maintain
an office within a 50-mile radius of Nueces County. Company agrees, during the
construction of the Project and for four years after Completion, to maintain written records
documenting the efforts of Company to comply with the Local Requirement, and to
provide an annual report to the City Manager or designee, from which the City Manager
or designee shall determine if Company is in compliance with this requirement. Failure
to substantially comply with this requirement shall be a default hereunder.
6. Utilization of Disadvantaged Business Enterprises ("DBE'). Company agrees to
exercise reasonable efforts in utilizing contractors and suppliers that are determined to
be DBEs, including minority business enterprises, women-owned business enterprises
and historically-underutilized business enterprises when available, except where not
reasonably possible to do so without added expense, substantial inconvenience, or
sacrifice in operating efficiency in the normal course of business. In order to qualify as a
business enterprise under this provision, the firm must be certified by the City, the
Regional Transportation Authority or another governmental entity in the jurisdiction of the
home office of the business as complying with state or federal standards for qualification
as such an enterprise. Company agrees to a goal of 30% of the total dollar amount of all
construction contracts and supply agreements being paid to DBEs, with a priority made
for DBEs which are local. Company agrees, during the construction of the Project and for
four years after Completion, to maintain written records documenting the efforts of
Company to comply with the DBE Requirement, and to provide an annual report to the
City Manager or designee, from which the City Manager or designee shall determine if
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Type B Business Incentive Agreement LaVista
Company is in compliance with this requirement. Failure to substantially comply with this
requirement, shall be a default hereunder. For the purposes of this section, the term
"local" as used to describe contractors and suppliers that are determined to be DBEs,
including minority business enterprises, women-owned business enterprises and
historically-underutilized business enterprises includes firms, businesses, and persons
who reside in or maintain an office within a 50 mile radius of Nueces County.
7. Living Wage Requirement. In order to count as a permanent full-time job under this
agreement, the job should provide a "living wage" for the employee. The target living
wage under this Agreement is that annual amount equal or greater than poverty level for
a family of three, established by the U.S. Department of Health and Human Services
Poverty Guidelines, divided by 2,080 hours per year for that year.
8. Health Insurance. To qualify for this incentive, an employer shall certify that it has
offered a health insurance program for its employees during the term of the Agreement.
The health insurance program must comply with all applicable laws.
9. Warranties. Company warrants and represents to Corporation the following:
a. Company is a limited partnership duly organized, validly existing, and in good
standing under the laws of the State of Texas, has all power and authority to carry
on its business as presently conducted in Corpus Christi, Texas.
b. Company has the authority to enter into and perform, and will perform, the terms
of this Agreement to the best of its ability.
c. Company has timely filed and will timely file all local, State, and Federal tax
reports and returns required by laws to be filed and all taxes, assessments, fees,
and other governmental charges, including applicable ad valorem taxes, have
been timely paid, and will be timely paid, during the term of this Agreement.
d. Company has received a copy of the Act and acknowledges that the funds
granted under this Agreement must be utilized solely for purposes authorized
under State law and by the terms of this Agreement.
e. The person executing this Agreement on behalf of Company is duly authorized
to execute this Agreement on behalf of Company.
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Type B Business Incentive Agreement LaVista °I1
f. Company does not and agrees that it will not knowingly employ an
undocumented worker. If, after receiving payments under this Agreement,
Company is convicted of a violation under 8 U.S.C. Section 1324a(f), Company
shall repay the payments received under this Agreement to the City, with interest
at the Wall Street Journal Prime Rate, not later than the 120th day after the date
Company has been notified of the violation.
10. Compliance with Laws. During the Term of this Agreement, Company shall observe
and obey all applicable laws, ordinances, regulations, and rules of the Federal, State,
county, and city governments.
11. Non-Discrimination. Company covenants and agrees that Company 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 Project, 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.
12. Force Majeure. If the Corporation or Company 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 Company 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.
13. Assignment. Company 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. Such
approval will not be unreasonably denied. Any attempted assignment without approval
is void and constitutes a breach of this Agreement.
14. Indemnity. Company 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
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Type B Business Incentive Agreement LaVista
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 Company's
activities conducted under or incidental to this Agreement, except to
the extent that such injury, loss, or damage is caused by the negligence
or willful misconduct of the Indemnitees. Company 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 costs and expenses of any kind
arising from the liability, damage, loss, claims, demands, or actions.
15. Events of Default by Company. The following events constitute a default of this
Agreement by Company:
a. The Corporation or City determines that any representation or warranty on
behalf of Company 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;
b. Any judgment is assessed against Company or any attachment or other levy
against the property of Company with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 120 days.
c. Company makes an assignment for the benefit of creditors.
d. Company files a petition in bankruptcy or is adjudicated insolvent or bankrupt.
e. If taxes owed by Company become delinquent, and Company fails to timely and
properly follow the legal procedures for protest or contest.
f. Company changes the general character of business as conducted as of the
date this Agreement is approved by the Corporation.
g. Company fails to comply with one or more terms of this Agreement.
16. Notice of Default. Should the Corporation or City determine that Company is in
default according to the terms of this Agreement, the Corporation or City shall notify
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Type B Business Incentive Agreement LaVista
Company in writing of the event of default and provide 60 days from the date of the notice
("Cure Period") for Company to cure the event of default.
17. Results of Uncured Default by Company. 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 Company, as determined by
the Board of Directors of the Corporation, the following actions may be taken for any
default that remains uncured after the Cure Period.
a. Company shall immediately repay all funds paid by Corporation to it under this
Agreement.
b. Company shall pay Corporation's reasonable attorney fees and costs of court
to collect amounts due to Corporation if not immediately repaid upon demand from
the Corporation.
c. Upon payment by Company of all sums due, the Corporation and Company shall
have no further obligations to one another under this Agreement.
18. 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 Company's default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time Company 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.
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Type B Business Incentive Agreement LaVista
19. Company specifically agrees that Corporation shall only be liable to Company for the
actual amount of the money grants to be conveyed to Company, and shall not be liable
to Company 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. Payment by Corporation is strictly limited to those funds so allocated,
budgeted, and collected solely during the grant term of this Agreement. Corporation shall
use its best efforts to anticipate economic conditions and to budget accordingly.
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 for that 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. Payments to be made shall also
require a written request from Company to be accompanied by all necessary supporting
documentation.
20. The parties mutually agree and understand that funding under this Agreement is
subject to annual appropriations by the City Council; that each fiscal year's funding must
be included in the budget for that year; and the funding is not effective until approved by
the City Council.
21 . Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
Company:
LaVista Pointe, LP
Attn: Jeffory D. Blackard
401 Adriatica Parkway, 7th Floor
McKinney, TX 75070
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Type B Business Incentive Agreement LaVista
Corporation:
Corpus Christi B 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.
23. 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.
24. Relationship of Parties. In performing this Agreement, both the Corporation and
Company will act in 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.
25. 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.
26. 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
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Type B Business Incentive Agreement LaVistab}ilf
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.
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 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 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.
27. Venue. Venue for any legal action related to this Agreement is in Nueces County,
Texas.
28. Sole Agreement. This Agreement constitutes the sole Agreement between
Corporation and Company. Any prior Agreements, promises, negotiations, or
representations, verbal or otherwise, not expressly stated in this Agreement, are of no
force and effect.
29. Survival of terms of Agreement and obligations of parties. The terms of this
Agreement and the obligation of the parties relating to Section 14 shall survive the
termination of this Agreement.
(Remainder of this page intentionally left blank)
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Type B Business Incentive Agreement LaVista
Corpus Christi B Corporati.
By: A,proved as to form: 1 t l(0l 155
Scott Harris , _ ■'i
President --�`" ""
Assistant City Attorney
Date: /_fa 1t1 For City Attorney
Attest:
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By: ► • u
Rebecca Huerta
Assistant Secretary
LaVista Pointe, LP
By Blackard General Partner III, Inc., the general partner or LaVista Pointe, LP
LA1, 05ke nom.
By: j
Jeffory Black rd sY C-0UNCIL..__. 1......� ..._-
President
_._.
3ECRETAR
Date: }� lei/, I )
2oi
THE STATE OF TEXAS
COUNTY OF COLLIN
This instrument was acknowledged before me on !�;: 2 , 2018, by
Jeffory Blackard, President of Blackard General Partner III, Inc., a Texas corporation, on
behalf of the corporation.
�jr � ������Aro�db BENJAMIN ROLLINS
Notary "ubll :r°' �iNotaryPublic. StateofTexas
-A.. =
State of Texas s 4:••• .. Comm.Expires 06 21-2022
%%%%% Notary ID 13162201-0
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Type B Business Incentive Agreement LaVista