HomeMy WebLinkAboutPR 20606: EDC GRANT AGREEMENT WITH JOE'S SHOPPING PLAZA, LLC Interoffice
MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO
Date: December 10, 2018
Subject: P.R. No. 20606; Council Meeting of December 18, 2018
ATTACHED IS PROPOSED RESOLUTION NO. 20606
APPROVING AMENDMENT NO. 1 TO THE ECONOMIC
DEVELOPMENT CONDITIONAL GRANT AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION AND JOE'S
SHOPPING PLAZA,LLC
P. R. NO. 20606
12/5/2018 KVM
RESOLUTION NO.
A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT
AGREEMENT BETWEEN THE CITY OF PORT ARTHUR
SECTION 4A ECONOMIC DEVELOPMENT CORPORATION
AND JOE'S SHOPPING PLAZA, LLC
WHEREAS, per Resolution 18-208 dated May 22, 2018, the City Council of the City of
Port Arthur approved an Economic Development Conditional Grant Agreement(the"Agreement")
between the City of Port Arthur Section 4A Economic Development Corporation("PAEDC")and
Joe's Shopping Plaza, LLC. ("Joe's Plaza") in an amount of$350,000 for the purpose of making
qualified infrastructure improvements to property on Jimmy Johnson Blvd. for the development
of a shopping plaza; and
WHEREAS, the Agreement states that PAEDC will reimburse Joe's Plaza 88% of the
conditional grant upon submission of a certificate of occupancy evidencing tenant occupation,and
the remaining 12% will be reimbursed once a second certificate of occupancy is submitted
evidencing occupation of a second tenant; and
WHEREAS, Joe's Plaza has had to make significant investment in the development of
infrastructure to the undeveloped property; and
WHEREAS, the PAEDC Board of Directors met on December 3, 2018, and approved to
amend the terms of the Agreement allowing reimbursement in three phases rather than two so that
Joe's Plaza will receive funding following the infrastructure improvements made and approved an
amended milestone schedule included in the First Amendment to the Economic Development
Conditional Grant Agreement between PAEDC and Joe's Plaza attached hereto as Exhibit"A".
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 of the City of Port Arthur approves Amendment No. 1 to
the Agreement between PAEDC and Joe's Shopping Plaza, LLC as denoted in the Amendment
attached hereto as Exhibit "A".
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
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APPROVED:
Floyd Batiste, AEDC E
APPRO D AS TO FQRM:
f/
Guy N. Goodson, PAEDC Attorney
APPROVED AS TO FORM:
Valecia R. Tizeno,City Attorney
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EXHIBIT "A"
FIRST AMENDMENT TO THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT
BETWEEN
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION
AND
JOE'S SHOPPING PLAZA,LLC
WHEREAS, Joe's Shopping Plaza, LLC ("Joe's Shopping Plaza") and the City of Port
Arthur Section 4A Economic Development Corporation ("PAEDC") entered into an Economic
Development Conditional Grant Agreement (the "Agreement") on July 3, 2018 pursuant to
Resolution No. 18-208;
WHEREAS, the Agreement provided that Joe's Shopping Plaza would make
infrastructure improvements to property located at 3400 Jimmy Johnson Blvd. in Port Arthur,
Texas for the construction of a restaurant and ice cream and fruit shop; and
WHEREAS, the Agreement provided that Joe's Shopping Plaza would receive eighty
eight(88%)percent of the conditional grant upon receipt of a certificate of occupancy evidencing
a tenant occupying 7,500 square feet and Joe's Shopping Plaza would receive the remaining twelve
(12%) percent of the conditional grant upon receipt of a certificate of occupancy evidencing a
tenant occupying 1,000 square feet; and
WHEREAS, Joe's Shopping Plaza has had to make significant investment in the
development of the infrastructure to the undeveloped property; and
WHEREAS,PAEDC Board of Directors considered amending the terms of the Agreement
allowing reimbursement in three phases rather than two so that Joe's Shopping Plaza could receive
funding following the infrastructure improvements; and
WHEREAS, the PAEDC Board of Directors agreed to amend the Agreement and
performance milestones at its December 3, 2018 regular meeting.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION that:
1. This Amendment to the Economic Development Conditional Grant Agreement between
PAEDC and Joe's Shopping Plaza was approved by the PAEDC Board of Directors on December
3, 2018.
2. This Amendment to the Agreement shall be effective upon approval by the City of Port
Arthur, Texas.
3. Section 6(a)is amended as follows:
a. Performance by PAEDC
i. PAEDC shall conditionally grant INCENTIVE RECIPIENT not to exceed
$350,000 for the purpose of making qualified infrastructure improvements
for the construction of the Building.
ii. INCENTIVE RECIPIENT will provide PAEDC evidence of completion of
the infrastructure improvements as set forth in Exhibit "B" and upon
receipt PAEDC will reimburse INCENTIVE RECIPIENT forty percent
(40%) of the Conditional Grant.
iii. INCENTIVE RECIPIENT will provide PAEDC a certificate of occupancy
for the first commercial space of approximately 7,500 square feet of the
Building and upon receipt of that certificate of occupancy, PAEDC will
reimburse INCENTIVE RECIPIENT thirty percent (30%) of the
Conditional Grant;
iv. INCENTIVE RECIPIENT will provide PAEDC a certificate of occupancy
for a second commercial space of approximately 1,000 square feet of the
Building and upon receipt of the certificate of occupancy, PAEDC will
reimburse INCENTIVE RECIPIENT thirty percent (30%) of the
Conditional Grant; and
These are PAEDC's only obligations.
4.Exhibit C to the agreement is amended per the attached Performance Milestone Schedule
(Modified) for Joe's Shopping Plaza, LLC attached hereto as Exhibit"C".
5. The recitals to this Amendment are incorporated and fully referenced in this
Amendment.
6. Other than the amendment set forth herein,Joe's Shopping Plaza and PAEDC ratify and
affirm all terms and conditions of the Agreement dated July 3, 2018.
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SIGNED AND AGREED to on this day of , 2018.
City of Port Arthur Section 4A
Economic Development Corporation
By:
President
ATTEST:
Secretary
THE STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on the day of , 2018, by
as President and as Secretary on
behalf of City of Port Arthur Section 4A Economic Development Corporation.
Notary Public, State of Texas
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Joe's Shopping Plaza,LLC
By:
Its:
THE STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on the day of , 2018, by
behalf of Joe's Shopping Plaza, LLC.
Notary Public, State of Texas
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EXHIBIT "C"
PERFORMANCE MILESTONE SCHEDULE (Modified)
JOE'S SHOPPING PLAZA, LLC
DATE MILESTONE
Review approved construction plans by the City of Port Arthur and
(a) June 30, 2018 projected costs with PAEDC CEO for the construction of the project
at 3400 Jimmy Johnson Blvd., Port Arthur,Texas
(b) October 31, 2018 Joe's Shopping Plaza, LLC issue a status report to PAEDC CEO on
Project construction at 3400 Jimmy Johnson Blvd., Port Arthur, Texas
Joe's Shopping Plaza, LLC will provide evidence of completion of the
(c) December 31, 2018 qualifying infrastructure improvements. PAEDC will issue 40%of
Economic Incentive Grant
Joe's Shopping Plaza, LLC obtain Certificate of Occupancy for the first
(d) March 31, 2019 7,500 square feet of space and provide a copy to the PAEDC CEO.
PAEDC will issue 30%of Economic Incentive Grant
Joe's Shopping Plaza, LLC issue a status report to PAEDC CEO on
(e) July 31, 2019 remaining 1,000 sq. ft. Project construction at 3400 Jimmy Johnson
Blvd., Port Arthur,Texas
Joe's Shopping Plaza, LLC obtain Certificate of Occupancy for the
remaining 1,000 square feet of space and provide a copy to the
(f) November 30, 2019 PAEDC CEO.
PAEDC issue the remaining 30%of Economic Incentive Grant
(g) December 31, 2019 Joe's Shopping Plaza, LLC meets all of their contractual agreement.
File is closed.
PAEDC Board of Directors release Letter of Credit to Joe's Shopping
(h) December 31, 2019
Plaza, LLC
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