HomeMy WebLinkAboutPR 21563: 24 MONTH LEASE WITH ROBOGISTICS City of
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Texas
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INTEROFFICE MEMORANDUM
Date: February 5, 2021
To: The Honorable Mayor and City Council
Through: Ron Burton, City Manager
From: Adam Saunders, Director of the Civic Center
RE: P. R. No. 21563
Introduction:
The intent of this Council Agenda Item is to seek the City Council's approval authorizing the
City Manager to execute a 24 month lease with Robogistics a robotic, automation, and logistics
company leasing 3451 57th Street property.
Background:
In 2019, the City Council approved an initial 12 month lease agreement with Robogistics to
utilize the 57th Street armory facility. Robogistics management team worked the EDC and
PAISD officials in establishing a work study opportunity for eight (8) students interested in
automation and robotics technology. The success of the work study initiative allowed five (5)
PAISD students to be hired full time in 2020. Robogistics is on the cutting edge of developing
the next generation of robotic automation and has the potential to attract and retain local talent
in reaching their growth potential here in the region.
Budget Impact:
The lease agreement will generate a monthly revenue stream of$9,800 for the first 18 months
and will increase to $15,000 for the remaining six (6) months of the agreement.
Recommendation:
It is recommended that City Council P. R. No. 21563 and authorize the City Manager to
execute the 24 month lease agreement.
/as
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743
P.R. NO. 21563
02/05/21 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING A TWENTY-FOUR (24) MONTH
LEASE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR AND
ROBOGISTICS, LLC FOR PREMISES LOCATED AT 3451 57TH STREET
WHEREAS, the City of Port Arthur is the owner of a 26,059 square foot facility
located at 3451 57TH Street; and
WHEREAS, the City is the recipient of a grant from the Economic Development
Administration (EDA) which allowed for certain renovations to the property, which have
been completed; and
WHEREAS, the EDA has also required that the property be leased at Fair Market
Value as delineated in the lease agreement attached hereto as Exhibit "A"; and
WHEREAS, pursuant to Resolution No. 19-283, the City Council authorized the
City Manager to enter into a twelve (12) month lease agreement with Robogistics, LLC,
which expired on July 16, 2020, which was approved by the Economic Development
Administration's (EDA); and
WHEREAS, Robogistics, LLC has notified the City of Port Arthur that they wish to
sign a new twenty-four (24) month lease, in substantially the same form as attached
hereto as Exhibit "A".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR:
Section 1. The facts and opinions in the preamble are true and correct.
Section 2. That the City Council hereby authorizes the execution of a twenty-
four (24) month lease agreement with Robogistics, LLC, in substantially the same form
as Exhibit"A".
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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, this day of , 2021 AD,
at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following
vote: AYES:
Mayor:
Councilmembers:
NOES:
Thurman Bill Bartie, Mayor
ATTEST:
Sherri Bellard
City Secretary
APPROVED AS TO FORM:
PLEASE SEE CONFIDENTIAL MEMO TO CITY COUNCIL
REGARDING THE LEGAL REVIEW OF THIS MATTER
Val Tizeno
City Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton
City Manager
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EXHIBIT "A"
WILL BE PRESENTED AT OR BEFORE
THE FEBRUARY 16 , 2021 MEETING
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