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HomeMy WebLinkAboutPR 19764: EDC LOAN AGREEMENT WITH B&B ICE, INC. Interoffice MEMORANDUM To: Mayor, City Council, City Manager From: Floyd Batiste, CEO lj_., Date: May 16, 2017 Subject: P. R. No. 19764; Council Meeting of May 23, 2017 ATTACHED IS PROPOSED RESOLUTION NO. 19764 A RESOLUTION APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN B&B ICE, INC. AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION. P. R. No. 19764 5/3/2017 KVM RESOLUTION NO. A RESOLUTION APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN B&B ICE, INC. AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION WHEREAS, on March 6, 2013, the Port Arthur City Council approved Resolution No. 13-101 authorizing the City of Port Arthur Section 4A Economic Development Corporation (the "PAEDC") to enter into an Economic Incentive Contract & Loan Agreement (the "Agreement") with B&B Ice, Inc. ("B&B"); and WHEREAS, B&B has fully satisfied their contractual obligations as denoted in the memorandum attached hereto as Exhibit"A"; and WHEREAS, on May 1, 2017, the PAEDC Board of Directors voted and acknowledged the satisfaction of the contractual obligations, thereby concluding the Agreement with B&B. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby acknowledges that the contractual obligations in the Economic Incentive Contract & Loan Agreement between B&B Ice, Inc. and PAEDC have been met and are complete, and therefore, approve the closing of the Agreement. Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2017, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers NOES: Derrick Freeman, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED: Floyd Batis PAE 1 EO APPROVED AS TO FORM: Goo Guy N. Goo•son, C Attorney APPROVED AS TO FORM: r \ I V VVal/eecci/ia R. Tize o, City Attorney #1383432 Page 2 EXHIBIT "A" • Port Arthur Economic Development Corporation Memorandum To: PAEDC Board of Directors From: Floyd Batiste, CE CC: Krystle Muller, ED Specialist Re: Closing of the Economic Incentive Contract & Loan Agreement with B&B Ice, Inc. It is recommended that the Board close the Economic Incentive Contract & Loan Agreement with B&B Ice, Inc. ("B&B") as B&B has fully satisfied the terms of the Agreement with the PAEDC. In 2013, B&B was awarded a conditional grant in the amount of$285,515 to be utilized for the purchase of equipment needed for the expansion of its operations in the Spur 93 Business Park, Port Arthur, TX. B&B has met the performance required by PAEDC by employing Port Arthur residents and receiving credits toward the incentive amount for payroll to Port Arthur residents. Total payroll to Port Arthur residents over the three year agreement was $467,557.38. kvm 501 PROCTER ST.,STE. 100,PORT ARTHUR,TX 77640 1409-963-05791 WWW.PAEDC.ORG