HomeMy WebLinkAboutPR 21834: AN AGREEMENT WITH EDC AND AREF 1, LTD Interoffice
MEMORANDUM
To: Mayor, City Council, Ci Mana er
From: Floyd Batiste, CEO . ! airitlectz.,
Date: March 9, 2021
Subject: P.R. No. 21834; Council Meeting of March 16, 2021
ATTACHED IS PROPSED RESOLUTION NO. 21834
APPROVING AMENDMENT NO. 1 TO THE ECONOMIC
DEVELOPMENT CONDITIONAL GRANT AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION AND AREF 1,
LTD
P. R. No. 21834
03/08/2021 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 AREF 1, LTD.
WHEREAS,per Resolution 19-119 dated March 26, 2019,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
Aref 1, Ltd. ("Aref 1") in an amount of$368,760.00 to reimburse Aref 1 for a portion of the costs
for necessary infrastructure improvements to the property located at 3350 Jimmy Johnson Blvd.
in Port Arthur, Texas for the development of a multi-tenant shopping center; and
WHEREAS, Aref 1 has requested an extension to the Agreement due to circumstances
hindering the project construction's completion; and
WHEREAS, at their special Board meeting of March 1, 2021, the PAEDC Board of
Directors approved an amendment to the Agreement allowing for an additional sixty (60) days to
complete the project as detailed in the amendment 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 Aref 1, Ltd. 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., 2021,
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
APPROVE P•
r vl.oa I
Floyd Bat'?e, PA DC 'EO
APPROV AS ORM:
Guy N. Goodson, PAEDC Attorney
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APPROVED AS TO FORM:
Valecia R. Tizeno, City Attorney
#1843652
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
AREF I LTD.
WHEREAS, AREF I LTD. ("AREF") and the City of Port Arthur Section 4A Economic
Development Corporation("PAEDC")entered into an Economic Development Conditional Grant
Agreement(the"Agreement")on March 26,2019 pursuant to Resolution No. 19-119;
WHEREAS, the Agreement provided that AREF would make infrastructure
improvements to property located at 3350 Jimmy Johnson Blvd. in Port Arthur, Texas for the
construction of a multi-tenant shopping center; and
WHEREAS, the Agreement provided that PARC would receive thirty percent (30%) of
the conditional grant upon completion of infrastructure improvements, thirty five percent (35%)
when AREF obtains a certificate of occupancy for the 2,000 square feet commercial space, and
then thirty five percent (35%) of the conditional grant when the AREF obtains a certificate of
occupancy for the 1,200 square feet commercial space.; and
WHEREAS, AREF 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 March 1, 2021 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 AREF was approved by the PAEDC Board of Directors on March 1, 2021.
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 AREF 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, AREF and PAEDC ratify and affirm all
terms and conditions of the Agreement dated March 26, 2019.
SIGNED AND AGREED to on this day of ,2021.
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 , 2021,by
as President and as Secretary on
behalf of City of Port Arthur Section 4A Economic Development Corporation.
Notary Public, State of Texas
41843908
Page 2
AREF I LTD.
By:
Its:
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on the day of , 2021, by
behalf of AREF I LTD.
Notary Public, State of Texas
#1843908 Page 3
Exhibit C
PERFORMANCE MILESTONE SCHEDULE
Amended-March 2021
AREF I, LTD.
DATE MILESTONE
Review approved infrastructure plans by the City of Port Arthur
(a) March 31, 2019 and projected costs with PAEDC for the construction of the
project at 3350 Jimmy Johnson Blvd., Port Arthur,Texas
(h) April 30, 2019 Aref I will issue a status report to PAEDC on Project
construction at 3350 Jimmy Johnson Blvd.,Port Arthur, Texas
Aref I will provide evidence of completion of the qualifying
May 31, 2019 infrastructure improvements.
PAEDC will issue 30%of Economic Incentive Grant
Aref I will obtain Certificate of Occupancy for the first retail
(c) April 30, 2020 tenant space and provide a copy to the PAEDC
PAEDC will issue 35%of Economic Incentive Grant
(d) October 31, 2020 Aref I will issue a status report to PAEDC on remaining project
construction at 3350 Jimmy Johnson Blvd.,Port Arthur,Texas
Aref I will obtain Certificate of Occupancy for the second retail
(e) June 30, 2021 tenant space and provide a copy to the PAEDC.
PAEDC will issue the remaining 35%of Economic Incentive
Grant
(f) June 30, 2021 Aref I meets all of their contractual agreement. File is closed.
(g) June 30, 2021 PAEDC Board of Directors release Letter of Credit to Aref I.