HomeMy WebLinkAboutPR 19813: APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT WITH COASTAL INDUSTRIAL SERVICES AND EDC Interoffice
MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: June 12, 2017
Subject: P. R. No. 19813; Council Meeting of June 20, 2017
ATTACHED IS PROPOSED RESOLUTION NO. 19813. A
RESOLUTION APPROVING THE CLOSING OF THE
ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT
BETWEEN COASTAL INDUSTRIAL SERVICES AND THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION.
P. R. No. 19813
6/8/2017 KVM
RESOLUTION NO.
A RESOLUTION APPROVING THE CLOSING OF THE
ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT
BETWEEN COASTAL INDUSTRIAL SERVICES AND THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION
WHEREAS, on January 14, 2013, the Port Arthur City Council approved Resolution No.
12-403 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 Coastal Industrial Services ("Coastal"); and
WHEREAS, Coastal has fully satisfied their contractual obligations as denoted in the
memorandum attached hereto as Exhibit "A"; and
WHEREAS, on June 5, 2017, the PAEDC Board of Directors voted and acknowledged
the satisfaction of the contractual obligations, thereby concluding the Agreement with Coastal.
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 Agreement between Coastal 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:
r'
Floyd Batist•, PAED CEO
APPRO .1D A HI FORM:
9
Guy N. Goods i n, PAED •
APPRO , D A TO FORM:
1A /��_
Valec a R. Tiz• o, City • tt i rney
#1396182 Page 2
Exhibit "A"
Port Arthur Economic
Development Corporation
Memorandum
To: PAEDC Board of Directors
From: Floyd Batiste, CEO
CC: Krystle Muller, ED Specialist
Re: Closing of the Economic Incentive Contract & Loan
Agreement with Coastal Industrial Services, Inc.
It is recommended that the Board close the Economic Incentive Contract & Loan
Agreement with Coastal Industrial Services, Inc. ("Coastal") as Coastal has fully
satisfied the terms of the Agreement with the PAEDC.
In 2013, Coastal was awarded a conditional grant in the amount of$95,144
equivalent to the value of the property Coastal purchased for the expansion of
its operations in the Spur 93 Business Park, Port Arthur, TX. The incentive credit
was applied against the purchase price of the property in consideration for the
promise by Coastal to construct the facilities in the Business Park and the
creation of full time jobs for Port Arthur residents.
Coastal has met and exceeded the performance required by PAEDC by
employing Port Arthur residents and receiving credits toward the incentive
amount for payroll to Port Arthur residents.
Coastal was to produce at least $673, 920 in payroll to Port Arthur residents.
Total payroll to PA residents over the three year agreement was $1,440,498.60.
kvm
501 PROCTER ST.,STE. 100,PORT ARTHUR,TX 77640
' 409-963-0579 i WWW.PAEDC.ORG