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HomeMy WebLinkAboutPR 21835: CLOSING CONTRACT AND LOAN AGREEMENT BETWEEN WILLFIRE AND EDC Interoffice MEMORANDUM To: Mayor, City Council, Manager From: Floyd Batiste, CEO F r Date: March 9, 2021 Subject: P.R. No. 21835; Council Meeting of March 16, 2021 ATTACHED IS PROPSED RESOLUTION NO. 21835 APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT AND LOAN AGREEMENT BETWEEN WILLFIRE HC, LLC AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION P. R. No. 21835 3/8/2021 KVM RESOLUTION NO. A RESOLUTION APPROVING THE CLOSING OF THE ECONOMIC INCENTIVE CONTRACT AND LOAN AGREEMENT BETWEEN WILLFIRE HC, LLC AND THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION WHEREAS, on June 12, 2012, the City Council of the City of Port Arthur approved Resolution No. 12-298 authorizing the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") to enter into an Economic Incentive Contract and Loan Agreement (the "Agreement") with Willfire HC, LLC ("Willfire"); and WHEREAS, Willfire has fully satisfied their contractual obligations as denoted in the memorandum attached hereto as Exhibit "A"; and WHEREAS, on March 1, 2021, the PAEDC Board of Directors voted and acknowledged the satisfaction of the contractual obligations, thereby concluding the Agreement with Willfire. 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 Economic Incentive Contract and Loan Agreement between Willfire HC, LLC 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., 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 APPROVED: DetZe-e76-/ Floyd Ba" ste, PA D CEO APPROVED TO FO • Guy N. Goodson, PAEDC Attorney APPROVED AS TO FORM: Valecia R. Tizeno, City Attorney #1843697 Page 2 EXHIBIT "A" Port Arthur Economic Development Corporation Memorandum February 24,2021 To: PAEDC Board of Directors From: Krystle Muller, Contract Compliance Manager CC: Floyd Batiste, CEO Re: Closing of the Economic Incentive Contract & Loan Agreement with Willfire HC, LLC It is recommended that the Board close the Economic Incentive Contract & Loan Agreement with Willfire HC, LLC ("Willfire") as Willfire has fully satisfied the terms of the Agreement with the PAEDC. In 2012, Willfire was awarded a conditional grant in the amount of$326,025.00 equivalent to the value of the property Willfire purchased for the expansion of its operations in the Spur 93 Business Park, Port Arthur, TX. The incentive credit was applied against the purchase price of the property in consideration for the promise by Willfire to construct the facilities in the Business Park and occupy and conduct business operations for a minimum of seven (7) years. Willfire has met the performance required by PAEDC by constructing their facility within 18 months from the purchase date in the Spur 93 Business Park and remaining in operation for the minimum of seven (7) years. Willfire remains in operation to date. 501 PROCTER ST.,S 1'E. 100,PORT ARTHUR,TX 77640 1409-963-0579 l W W W.PAEDC.ORG