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Home My WebLink AboutPR 21992: AMENDMENT NO. 1 ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT WITH TONY & ANNE NGUYEN D/B/A RAI'S BAKERY ,- ,'" \ ,0 0 e , _ . „/ PORT*ARTHUR ECONOMIC DEVEI Or\II.NT CORPORATIO\ INTEROFFICE MEMORANDUAM Date: June 15,2021 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Floyd Batiste, CEO Port Arthur EDC ' —'+' RE: PR 21992—Amendment No. 1 Economic Incentive Contract& Loan Agreement with Tony&Anne Nguyen d/b/a Rai's Bakery Introduction: The intent of this Agenda Item is to seek City Council's approval for the Port Arthur EDC to amend the Economic Incentive Contract& Loan Agreement with Tony&Anne Nguyen d/b/a Rai's Bakery. Background: The EDC entered into an Economic Incentive Contract& Loan Agreement with Tony&Anne Nguyen d/b/a Rai's Bakery, Resolution 19-259 dated June 17, 2019, in the amount of$59,277. Rai's Bakery has requested an amendment to their Agreement to allow for more time to perform their contractual obligations as the construction of the new operation was halted due to effect of the recent pandemic. Budget Impact: It is in the best interest of both parties, the EDC and Rai's Bakery to extend the agreement by an additional two years to satisfy Rai's contractual obligations to the EDC. Recommendation: It is recommended that the City Council of the City of Port Arthur authorize the Port Arthur EDC to amend their agreement with Rai's Bakery for an additional two years. • P. R. No. 21992 6/10/2021 KVM RESOLUTION NO. A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND TONY & ANNE NGUYEN D/B/A RAI'S BAKERY WHEREAS, per Resolution 19-259 dated June 17, 2019, the City Council of the City of Port Arthur approved an Economic Incentive Contract & Loan Agreement (the "Agreement") between the City of Port Arthur Section 4A Economic Development Corporation("PAEDC") and Tony & Anne Nguyen d/b/a Rai's Bakery ("Rai's Bakery") in an amount of $59,277.00 to reimburse Rai's Bakery for equipment purchased for a Vietnamese bakery and distribution operation; and WHEREAS, Rai's Bakery has requested an amendment to their Agreement to allow for more time to perform their contractual obligations as the construction on the new operation was halted due to effects of the recent pandemic; and WHEREAS, the PAEDC Board of Directors at their regular Board meeting of June 7, 2021, approved extending the Agreement with Rai's Bakery by two additional years as detailed in Amendment Number 1 to the Agreement 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 Incentive Contract&Loan Agreement between PAEDC and Tony&Anne Nguyen d/b/a Rai's Bakery. 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 APPROV . Floyd Batiste, PAED CEO • APPROV PO TO Guy N. Goodson, PAEDC Attorney #1873672 Page 2 APPROVED AS TO FORM: Valecia R. Tizeno, City Attorney #1873672 Page 3 Exhibit "A" z, ig9 , FIRST AMENDMENT TO THE ECONOMIC INCENTIVE CONRACT& LOAN AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND TONY& ANNE NGUYEN D/B/A RAI'S BAKERY WHEREAS, Tony and Maryann Nguyen d/b/al Rai's Bakery("Incentive Recipient")and the City of Port Arthur Section 4A Economic Development Corporation("PAEDC") entered into an Economic Incentive Contract&Loan Agreement(the"Agreement")on July 10,2019 pursuant to Resolution No. 19-259. WHEREAS, the Agreement provided that Incentive Recipient would open a Vietnamese baker, Rai's Bakery, on Gulfway Drive in Port Arthur,Texas; and WHEREAS, the Agreement provided that Incentive Recipient would receive a credit against payroll paid to full-time employees who are residents of Port Arthur as outlined in the Agreement; and WHEREAS, Incentive Recipient has requested for PAEDC to modify the performance milestones to allow it additional time to perform its contractual obligations due to the Pandemic effecting the local economy; and WHEREAS, the PAEDC Board of Directors agreed to amend the Agreement and performance milestones at its June 7, 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 Incentive Contract & Loan Agreement between PAEDC and Incentive Recipient was approved by the PAEDC Board of Directors on June 7,2021. 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 Incentive Recipient 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, Incentive Recipient and PAEDC ratify and affirm all terms and conditions of the Agreement dated July 10, 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 *1873973 Page 2 Tony and Maryann Nguyen d/b/a/Rai's Bakery By: Its: THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on the day of , 2021, by behalf of Tony and Maryann Nguyen d/b/a/Rai's Bakery. Notary Public, State of Texas #1873973 Page 3 , EXHIBIT C PERFORMANCE MILESTONE SCHEDULE Amended O ./1 1202) RAPS BAKERY MILESTONE SCHEDULE Deadline Milestone (a) Rai's Bakery will issue a status report on the purchase of equipment and the JUNE 31 2021 ' equipment installation's estimated completion date to PAEDC (b) Achieve full-time permanent employment of five(5)Port Arthur residents wit DECEMBER 31, 2021 average payroll of$17,160 per employee (c) Rai's Bakery's average annualized payroll for 5 Port Arthur DECEMBER 31,2021 residents is not less than$85,800 (d) Rai's Bakery will provide PAEDC with W-2's for Port Arthur MARCH 30, 2022 Residents Employed during 2021 Rai's Bakery will maintain employment of a total of five(5) Port DECEMBER 31, 2022 Arthur residents with an annualized payroll of$85,800 (e) Rai's Bakery will provide PAEDC with W-2's for Port Arthur MARCH 30, 2023 (f) Residents Employed during 2022 Rai's Bakery's total Port Arthur payroll for 2021 and 2022 for MARCH 30, 2023 Port Arthur Residents must equal$171,600 (g) (h) JUNE 30, 2023 PAEDC recommends to close Rai's Bakery file if all contractual requirements #1873973 Page 4