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HomeMy WebLinkAboutPR 19960: APROVING THE AGREEMENT WITH THE OLIVE PACKING COMPANY, INC. EDC Interoffice MEMORANDUM To: Mayor, City Council, City Manager From: Floyd Batiste, CEO /4 4) Date: March 20, 2018 Subject: P. R. No. 19960; Council Meeting of March 27,2018 ATTACHED IS PROPOSED RESOLUTION NO. 19960 APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN THE OLIVE PACKING COMPANY, INC. AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION P. R. No. 19960 3/7/2018 KVM RESOLUTION NO. A RESOLUTION APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN THE OLIVE PACKING COMPANY, INC. AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION WHEREAS, on May 13, 2014, the City Council of the City Port Arthur approved Resolution No. 14-229 authorizing the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") to enter into an Economic Incentive Contract & Loan Agreement (the "Agreement") with The Olive Packing Company, Inc. ("The Olive Packing Co."); and WHEREAS, The Olive Packing Co. has fully satisfied their contractual obligations as denoted in the memorandum attached hereto as Exhibit"A"; and WHEREAS, on March 5, 2018, the PAEDC Board of Directors voted and acknowledged that The Olive Packing Co. had met all contractual obligations under the Agreement, thereby concluding the Agreement. 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 The Olive Packing Co. and PAEDC have been met and are complete and therefore approves 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., 2018, 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: 4010 Floyd Batis e, PAE r C CEO APPROVED AS TO FORM: ' I Guy N. oodson, PAE Attorne APPROVED AS TO FORM: 7/Aa Valecia R. T eno,y Attorney 41485889 Page 2 EXHIBIT " A" Port Arthur Economic Development Corporation Memorandum To: PAEDC Board of Director From: Floyd Batiste, CEO CC: Krystle Muller, ED Specialist Re: Closing of the Economic Incentive Contract & Loan Agreement with The Olive Packing Company, Inc. It is recommended that the Board close the Economic Incentive Contract & Loan Agreement with The Olive Packing Company, Inc. ("The Olive Packing Co.") as The Olive Packing Co. has fully satisfied the terms of the Agreement with the PAEDC. In 2014, The Olive Packing Co. was awarded a conditional grant in the amount of $139,194.00 to be utilized for the purchase of equipment needed for the expansion of its operations at its location in Port Arthur, TX. The Olive Packing Co. 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. The Olive Packing Co. earned $1.00 in credit for every $6.22 in payroll to Port Arthur residents. In December 2015, The Olive Packing Co. had a total of $1,058,604.90 in Port Arthur payroll, equating to $170,193.71 in credits, exceeding the amount of credits needed to terminate any and all obligations to the PAEDC. kvm 501 PROCTER ST.,STE. 100,PORT ARTHUR,TX 77640 1409-963-0579 WWW.PAEDC.ORG