HomeMy WebLinkAboutPR 21239: EDC, AGREEMENT WITH PARC ENTERPRISES, INC. Interoffice
MEMORANDUM
To: Mayor, City Council, City Manager
From: Floyd Batiste, CEO 4.6
Date: January 28, 2020
Subject: P.R. No. 21239 Council Meeting of February 4, 2020
ATTACHED IS PROPOSED RESOLUTION NO. 21239, 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 PARC ENTERPRISES, INC.
P. R. No. 21239
01/21/2020 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 PARC ENTERPRISES, INC.
WHEREAS, per Resolution 17-361 dated December 19, 2017, 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 PARC Enterprises, Inc. ("PARC") in an amount of $195,750.00 to reimburse
PARC for necessary infrastructure improvements to the property located at 6770 9th Avenue in
Port Arthur, Texas for the purpose of construction of a pharmacy and additional retail space; and
WHEREAS, PARC has requested an extension to the Agreement due to circumstances
hindering the start of the project construction; and
WHEREAS, at their special Board meeting of January 14, 2020, the PAEDC Board of
Directors approved an amendment to the Agreement milestones allowing for an additional nine
(9) months to complete the project as detailed in the amended milestones 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 Economic Development Conditional Grant Agreement between PAEDC and PARC
Enterprises, Inc. 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., 2020,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor
Councilmembers ,
NOES:
Thurman Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Floyd Bati e, PAE C CEO
APPROV i • S TO - a ' M:
Guy N. Goodson, 'AEDC Al ey
k1722136 Page 2
APPROVED AS TO FORM:
Valecia R. Tizeno, City Attorney
#1722136 Page 3
Exhibit "A "
FIRST AMENDMENT TO THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT
BETWEEN
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION
AND
PARC ENTERPRISES, INC.
WHEREAS, PARC Enterprises, LLC ("PARC") and the City of Port Arthur Section 4A
Economic Development Corporation ("PAEDC") entered into an Economic Development
Conditional Grant Agreement (the "Agreement") on December 19, 2019 pursuant to Resolution
No. 17-361;
WHEREAS, the Agreement provided that PARC would make infrastructure
improvements to property located at 6770 9th Avenue in Port Arthur,Texas for the construction of
a pharmacy and retail space; and
WHEREAS, the Agreement provided that PARC would receive sixty percent (60%) of
the Conditional Grant when it received a certificate of occupancy for the pharmacy and forty(40%)
of the Conditional Grant when it received a certificate of occupancy for the retail space.; and
WHEREAS, PARC has requested for PAEDC to modify the performance milestones to
allow it additional time to construct the first commercial tenant space; and
WHEREAS, the PAEDC Board of Directors agreed to amend the Agreement and
performance milestones at its January 14, 2020 special 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 PARC was approved by the PAEDC Board of Directors on January 14,
2020.
2. This Amendment to the Agreement shall be effective upon approval by the City of
Port Arthur, Texas.
3. Exhibit C to the agreement is amended per the attached Performance Milestone
Schedule (Modified) for PARC attached hereto as Exhibit "C".
4. The recitals to this Amendment are incorporated and fully referenced in this
Amendment.
7. Other than the amendment set forth herein, Max Holdings and PAEDC ratify and
affirm all terms and conditions of the Agreement dated December 19, 2017.
SIGNED AND AGREED to on this day of , 2020.
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 , 2020, by
as President and as Secretary on
behalf of City of Port Arthur Section 4A Economic Development Corporation.
Notary Public, State of Texas
#1724062
Page 2
PARC ENTERPRISES, INC.
By:
Its:
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on the_day of , 2020, by
behalf of PARC Enterprises, Inc..
Notary Public, State of Texas
#1724062
Page 3
Exhibit "C"
PERFORMANCE MILESTONE SCHEDULE
PARC Enterprises, Inc.
Deadline Milestone
(a) January 1, 2018 Review Infrastructure plans and projected costs and schedule with
PAEDC staff
(b) March 1, 2018 Issue a status report to PAEDC for the period of the contract to
February 27, 2018.
(c) May 30, 2020 Foundation and infrastructure work completed
(d) July 30, 2020 Obtain Certificate of Occupancy for the new 3,650 square feet
pharmacy
(e) July 30, 2020 PAEDC will reimburse Incentive Recipient sixty percent (60%) of
the conditional grant
(f) September 30, 2020 Issue a project status report to PAEDC
(g) November 30, 2020 Obtain Certificate of Occupancy for remaining 2,434 square feet of t
(h) November 30, 2020 PAEDC will reimburse Incentive Recipient the remaining forty(40°,
conditional grant
(i) December 30, 2020 PAEDC close out report to PAEDC Board to compare actual econon
development results against expectation as presented to the Board
(j) December 30, 2020 PAEDC present to Council for project closeout