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HomeMy WebLinkAbout028158 RES - 05/12/2009Page 1 of 3 A RESOLUTION APPROVING A SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCI6N TEXAS, INC. FOR AN INTEREST BUY -DOWN PROGRAM FOR SMALL BUSINESSES AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A SMALL BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE ACCI6N TEXAS SMALL BUSINESS INCENTIVE AGREEMENT WHEREAS, the Corpus Christi Business and Job Development Corporation ("4A Board") has budgeted funds to assist small business in Corpus Christi, Texas. WHEREAS, in 2007, the 4A Board requested proposals and determined that the proposal from ACCI6N Texas Inc. (ACCI6N Texas), best provided assistance for small business support; WHEREAS, there is a need for a small business incentive project support agreement between the City of Corpus Christi ("City") and the 4A Board for the implementation and administration of the business incentive agreement with ACCI6N Texas for an interest buy -down program to assist small businesses in Corpus Christi. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the small business incentive agreement for an interest buy -down program for small businesses between the 4A Board and ACCI6N Texas, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and 4A Board for the implementation and administration of the small business incentive agreement with ACCI6N Texas for an interest buy -down program to assist small businesses in Corpus Christi, which is attached to this resolution as Exhibit B. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI enry Garr Mayor 028158 Res-AgmtSma IIB us-4ABd-ACC IONapp royal--04302009.doc „Sal Page 2 of 3 APPROVED as to form: May 3 , 2009 R. J fining Fi t A sistant Ci Attorney For the City Attorney Res -Ag mtSmallBus-4ABd-ACC IONapproval--04302009. d oc Page 3 of 3 Corpus Christi, Texas 8,G.of The above resolution was passed Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon , 2009 by the following vote: 028158 Res-AgmtSma I I B us-4ABd-ACCT ONapprova I--04302009. doc SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCIbN TEXAS, INC. FOR AN INTEREST BUY -DOWN PROGRAM FOR SMALL BUSINESSES This Small Businesses Incentive Agreement for an Interest Buy -Down Program for Small Businesses ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and ACCI6N Texas, Inc., a Texas nonprofit corporation ("ACCI6N Texas"). 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, ACCI6N Texas is a Texas nonprofit corporation whose principal mission is to provide loans to small business owners lacking access to commercial credit; WHEREAS, ACCI6N Texas anticipates, over the next twelve months, providing interest buy -down to 5.5% for approximately 69 loans with an average value of $25,000 to low and moderate income micro and small business owners in Corpus Christi to generate 110 new permanent full-time jobs; ACCION Texas Agreement 04302009.doc Page 1 of 12 Exhbiit A 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 ACCI6N Texas, through this contract with ACCI6N Texas, to be used by ACCI6N Texas to buy -down the interest on commercial loans to 5.5% interest for small businesses and which will result in creation of new full-time permanent jobs in the city of Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and ACCI6N Texas 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. The term of this Agreement is for one year from August 1, 2009, through July 31, 2010. This agreement may be extended at the option of the Corporation for up to two additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. 3. Loan Loss Reserve Program. a. The Corporation has previously provided $75,000 for the Loan Loss Reserve Program. b. The Loan Loss Reserve Program funds will be used to allow ACCI6N Texas to leverage additional capital for small business loans. c. "Small business" is defined in the Corpus Christi Business & Job Development Corporation Guidelines & Criteria for Granting Business Incentives ("Corporation Guidelines), adopted on May 5, 2003, and amended on July 24, 2004, April 25, 2006, and April 10, 2007. d. ACCI6N Texas anticipates that it will have one million dollars available on an annual basis to be lent to qualifying small businesses in Corpus Christi. e. For every $50,000 in loans that ACCI6N Texas provides to a small business in Corpus Christi, ACCI6N Texas shall ensure that the loan will result in the creation of one new full-time permanent job in the city of Corpus Christi. f. Businesses assisted must be located in or locating within the city limits of Corpus Christi, Texas. g. Businesses assisted must be unable to obtain a loan form traditional lending institutions. h. Loan amounts shall be within the range of $5,000 to $50,000. i. ACCI6N Texas shall provide the Corporation with quarterly reports to identify the loans made, name and address of business receiving loan, jobs created, and other reports as requested by the Corporation. Page 2 of 12 ACCION Texas Agreement 04302009.doc j. ACCI6N Texas shall provide the corporation with quarterly reports of capital available for loans to qualified Corpus Christi small businesses or qualified small businesses locating to Corpus Christi. k. ACCI6N Texas will provide funds for operations and loan capital to implement and sustain the program. 4. Interest Buy Down Program. a. In consideration for creation and maintenance of new jobs as provided in this Agreement, the Corporation agrees to pay ACCI6N Texas up to $350,000 for the Interest Buy -Down Program as follows: i. ACCI6N Texas must first receive a request for a loan from a small business that has been in existence for not more than five (5) years located in Corpus Christi, or a business locating in Corpus Christi ("Business"). ii. ACCI6N Texas shall review the request for a loan from the Business. iii. Upon ACCI6N Texas approval of a loan, and prior to the closing of the loan, ACCI6N Texas shall submit Attachment "A" to the Corporation requesting funds to buy down the interest rate from the interest rate allowable per the underwriting criteria to 5.5%. The Corporation authorizes an interest buy -down up to 7% of the interest rate to finance the loan. Payment by Corporation shall not exceed $17,500 per loan and shall be calculated using the following formula: (Loan amount x interest rate to buy down to 5.5%) / 12 = N N x number of payments=interest buy down reimbursement to ACCI6N Texas for business loan. (The number of monthly payments shall not exceed sixty (60).) Example: ($10,000 x 7%) / 12 = 58.33 58.33 x 36 = $2,100 = amount to be reimbursed to ACCI6N Texas for business loan. iv. The Corporation shall provide a response to approve or deny the reimbursement for the Interest Buy Down Program funds to ACCI6N Texas within 2 business days of receipt of Attachment "A." The Corporation shall reimburse funds within 30 days after evidence of closing the loan is submitted. v. The total funds available on an annual basis under the Interest Buy - Down Program under this agreement is $350,000. Page 3 of 12 ACCION Texas Agreement 04302009.doc b. The loans assisted with the program must be within the range of $5,000 to $50,000. c. This program must result in the creation of one permanent full-time job per every loan of at least $50,000 assisted with the Interest Buy Down Program. ACCI6N Texas shall ensure that the loan will result in the creation of one new full-time permanent job in the city of Corpus Christi. d. Businesses assisted through this program must be: i. A start-up or existing small business that is unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case ACCI6N Texas can loan the remaining amount with the buy -down interest rate program in conjunction with the bank\credit union. ii. An existing small business that needs assistance to expand. iii. Any business assisted under the provisions of paragraphs i or ii of this subsection, must be: A. Located in or locating in Corpus Christi city limits. B. A business or home-based business in existence for not more than five (5) years located in the Corpus Christi city limits. C. Current on payment of all sales taxes. D. Current on payment of all ad valorem taxes in the City of Corpus Christi. e. The following projects are ineligible for this program: i. Refinancing of existing loans or debt ii. Businesses located outside the Corpus Christi city limits iii. Home-based businesses located outside the Corpus Christi city limits iv. Loans to existing businesses which are not planning on expanding v. Business retention. f. ACCI6N Texas may use up to $200,000 to assist start-up and existing small businesses that have little or no access to traditional credit, and up to $150,000 to existing small businesses that wish to expand. g. ACCI6N Texas shall provide the Corporation with quarterly reports as provided in Attachment "B" to identify the loans made, name and address of the Page 4 of 12 ACCION Texas Agreement 04302009.doc business receiving the loan, jobs created under the Interest Buy -Down Program, and other reports as requested by the Corporation. h. ACCI6N Texas shall provide funds for operations and loan capital to implement and sustain the program. i. ACCI6N Texas shall develop loan underwriting criteria and payment terms and conditions for its loan program and provide to the Corporation. j. At the termination of this agreement and after repayment or other conclusion of all loans assisted by Interest Buy Down Program, ACCI6N Texas will return to the Corporation any unexpended funds remaining from the Loan Loss Reserve Program. 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. b. A full-time permanent job is one that provides at least 2,080 hours annually. c. ACCI6N Texas 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 the loan to the Business. d. ACCI6N Texas agrees to provide Corporation with a sworn certificate by authorized representative of each shall business assisted under this Agreement certifying the number of full-time permanent employees employed by the small business. e. ACCI6N Texas shall ensure that the Corporation is allowed reasonable access to personnel records of the small businesses assisted under this Agreement. 6. Buy Local Provision. a. ACCI6N Texas agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. 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. Page 5 of 12 ACCION Texas Agreement 04302009.doc 7. Local Offices. Two staff persons of ACCI6N Texas offices shall be located in Corporation designated offices or a mutually agreeable location. 8. Representation on ACCI6N Texas governing board. ACCI6N Texas agrees to appoint a person designated by the Corporation as a member of ACCION Texas governing board. 9. Warranties. ACCI6N Texas warrants and represents to Corporation the following: a. ACCI6N Texas is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. ACCI6N Texas has the authority to enter into and perform, and will perform, the terms of this Agreement. c. ACCI6N Texas has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, 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. ACCI6N Texas has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, 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. e. If an audit determines that the funds were not used for authorized purposes, ACCI6N Texas agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. f. The parties executing this Agreement on behalf of ACCI6N Texas are duly authorized to execute this Agreement on behalf of ACCION Texas. 10. Compliance with Laws. ACCI6N Texas shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 11. Non -Discrimination. ACCI6N Texas covenants and agrees that ACCI6N Texas 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. 12. Force Majeure. If the Corporation or ACCI6N Texas 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 Page 6 of 12 ACCION Texas Agreement 04302009.doc regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or ACCI6N Texas 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. ACCI6N Texas 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. 14. Indemnity. ACCION Texas 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 ACCION Texas 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. ACCION Texas 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. 15. Events of Default. The following events constitute a default of this Agreement: a. Failure of ACCION Texas 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 ACCION Texas 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; Page 7 of 12 ACCION Texas Agreement 04302009.doc c. Any judgment is assessed against ACCI6N Texas or any attachment or other levy against the property of ACCI6N Texas with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. ACCI6N Texas makes an assignment for the benefit of creditors. e. ACCI6N Texas files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by ACCI6N Texas become delinquent, and ACCI6N Texas fails to timely and properly follow the legal procedures for protest or contest. g. ACCI6N Texas changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 16. Notice of Default. Should the Corporation or City determine that ACCI6N Texas is in default according to the terms of this Agreement, the Corporation or City shall notify ACCI6N Texas in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for ACCI6N Texas to cure the event of default. 17. 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 ACCI6N Texas, 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. ACCI6N Texas shall immediately repay all funds paid by Corporation under this Agreement. b. ACCI6N Texas 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 ACCI6N Texas 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. 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 Page 8 of 12 ACCION Texas Agreement 04302009.doc other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of ACC16N Texas' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time ACCI6N Texas 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. 19. ACC16N Texas specifically agrees that Corporation shall only be liable to ACC16N Texas for the actual amount of the money grants to be conveyed to ACC16N Texas , and shall not be liable to ACC16N Texas 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, being August 1, 2009, through July 31, 2010. 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 ACCI6N Texas to be accompanied by all necessary supporting documentation. 20. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: ACCION Texas: ACC16N Texas Attn.: Janie Barrera 2014 Hackberry San Antonio, Texas 78210 Page 9 of 12 ACCION Texas Agreement 04302009.doc 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. 21. 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. 22. 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. 23. Relationship of Parties. In performing this Agreement, both the Corporation and ACCION Texas 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. 24. 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. 25. 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, Page 10 of 12 ACCION Texas Agreement 04302009.doc 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. 26. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 27. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and ACCION Texas. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 28. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to the Loan Loss Reserve Program and the Interest Buy Down Program shall survive the termination of this agreement. Corpus Christi Business & Job Development Corporation By: Date: Eloy Salazar Chairperson Attest: By: Armando Chapa Assistant Secretary Page 11 of 12 ACCION Texas Agreement 04302009.doc ACCION Texas, Inc. By: Janie Barrera President and Chief Executive Officer Date: THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on , 2009, by Janie Barrera, President and Chief Executive Officer for ACCION Texas, Inc., a Texas non-profit corporation, on behalf of the corporation. Notary Public State of Texas Page 12 of 12 ACCION Texas Agreement 04302009.doc SMALL BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT This Small Business Incentives 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 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 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 1/8 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 Corporation's Board of Directors; WHEREAS, the 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, ACCION Texas has submitted a proposal to the Corporation for $350,000 for an interest buy -down program for small businesses in Corpus Christi; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund the ACCI6N Texas interest buy -down program; and WHEREAS, the Corporation and ACCI6N Texas have executed a small business incentive project agreement for an interest buy -down program for small businesses. In consideration of the covenants, promises, and conditions stated in this Project Service Agreement, the Corporation and the City agree as follows: 1. Project Service Agreement to Implement Business Incentives Agreement. This Project Service Agreement between the City and the Corporation is executed to ACCION Project Support Agreement 4A -City 04302009.doc Page 1 of 3 Exhibit B implement the Small Business Incentive Agreement for an Interest Buy -Down Program for Small Businesses between the Corporation and ACCION Texas ("Small Business Incentive Agreement"). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Small 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 Small Business Incentive Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Service Agreement is the latest date that either party executes this 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, or word 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 ACCION Project Support Agreement 4A -City 04302009.doc 8. 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. The City of Corpus Christi Corpus Christi Business & Job Development Corporation 'Angel R. Escobar Eloy Salazar City Manager Chairperson Date: Date: Attest: Armando Chapa City Secretary Approved as to Legal Form: May , 2009. R. Jay Reining First Assistant City Attorney for City Attorney ACCION Project Support Agreement 4A -City 04302009.doc Page 3 of 3 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Finance of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officer that the money required for the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. City Council Action Date: May 12, 2009 Agenda Item: APPROVING A SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCI6N TEXAS, INC. FOR AN INTEREST BUY -DOWN PROGRAM FOR SMALL BUSINESSES AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A SMALL BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE ACCI6N TEXAS SMALL BUSINESS INCENTIVE AGREEMENT Amount Required: $350,000 Fund Name Fund No. Org. No. Account No. Project No. Amount ceBSbC.- It 40 1502° 530000 i'3So)ODD Total w 5(1IDi . 4L) i-AonR—,2oro imdap" -‘R Aa �sy Director of Financial Services Date: 5-7-09