HomeMy WebLinkAboutPR 22071: TERMINATING THE ECONOMIC INCENTIVE CONTRACT AND LOAN AGREEMENT BETWEEN AWC, INC. ' ,
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ONOMIC DEVELOPMENT CORPORATION
INTEROFFICE MEMORANDUM
Date: August 9, 2021
To: The Honorable Mayor and City Council
Through: Ronald Burton,City Manager
From: Floyd Batiste, CEO Port Arthur EDC
RE: PR—22071 Terminating the Economic Incentive Contract and Loan Agreement between
AWC,Inc.D/B/A Alford, Woods and Childs Texas, Inc. (AWC)and the Port Arthur
Economic Development Corporation(PAEDC)
Introduction:
The intent of this Agenda Item is to seek City Council's approval for the Port Arthur EDC to terminate the
Economic Incentive Contract and Loan Agreement with AWC,Inc., and close the file.
Background:
On December 19,2017,City Council authorized the PAEDC to enter into an Economic Incentive Contract
and Loan Agreement with AWC, Inc. Per the Agreement, AWC would receive $1.00 for every $6.65 in
payroll to Port Arthur residents not to exceed$100,000.00 through December,2020. AWC did not submit
payroll through the term of the Agreement,thus not receiving any incentive funds.
Budget Impact:
There is no budget impact for this item.
Recommendation:
It is recommended that the City Council of the City of Port Arthur approve the termination of the Economic
Incentive Contract and Loan Agreement with AWC, Inc.,and closing of the file with AWC, Inc.
P. R. No. 22071
8/5/2021 KVM
RESOLUTION NO.
A RESOLUTION APPROVING THE TERMINATION OF THE
ECONOMIC INCENTIVE CONTRACT AND LOAN
AGREEMENT BETWEEN AWC, INC. DB/A ALFORD, WOODS
AND CHILDS TEXAS, INC. AND THE CITY OF PORT ARTHUR
SECTION 4A ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, on December 19, 2017, the City Council of the City of Port Arthur approved
Resolution No. 17-362 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 AWC, Inc. d/b/a Alford, Woods and Childs Texas, Inc. ("AWC"); and
WHEREAS, per the Agreement, AWC could receive $1.00 for every $6.65 in payroll to
Port Arthur residents not to exceed $100,000.00 through December 2020; and
WHEREAS, AWC did not submit payroll for reimbursement throughout the term of the
Agreement,therefore, not receiving any incentive funds; and
WHEREAS,on August 2, 2021,the PAEDC Board of Directors voted and acknowledged
the termination of the Agreement, thereby concluding the Agreement with AWC and closing the
file.
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 the termination of the Agreement
between AWC and PAEDC and that there has been no disbursement of PAEDC funds, therefore,
approves the termination of the Agreement and closing of the file.
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:
DONALD FRANK, SR. MAYOR PRO TEM
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Floyd Bat' te, PAEDC CEO
APPR E AS TO FORM:
Guy N. Goodson, PAEDC Attorney
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APPROVED AS TO FORM:
Valecia R. Tize , Ci ttorney
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