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HomeMy WebLinkAboutPR 22072: TERMINATIN OF THE ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT WITH PARC ENTERPRISES, INC. , ( • PORT*ARThUR 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—22072 Termination of the Economic Development Conditional Grant Agreement between PARC Enterprises,Inc. (PARC)and the Port Arthur Economic Development Corporation(PAEDC)and closing of the file Introduction: The intent of this Agenda Item is to seek City Council's approval for the Port Arthur EDC to terminate the Economic Development Conditional Grant Agreement with PARC Enterprises, Inc., and close the file. Background: On December 19, 2017, City Council authorized the PAEDC to enter into an Economic Development Conditional Grant Agreement with PARC Enterprises, Inc., in the amount of $195,750.00 toward infrastructure costs for construction of a multi-retail space to be completed by March of 2020. Per Resolution 20-036, PARC was granted an additional nine months to meet the conditions set forth in the Agreement. PARC has now reached the amended term of the Agreement. Due to extenuating circumstances PARC has not been able to begin the project, therefore, not meeting the conditions of the Agreement and not receiving the 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 Development Conditional Grant Agreement with PARC Enterprises,Inc., and closing of the file. P. R. No. 22072 8/5/2021 KVM RESOLUTION NO. A RESOLUTION APPROVING THE TERMINATION OF THE ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT BETWEEN PARC ENTERPRISES,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. 17-361 authorizing the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") to enter into an Economic Development Conditional Grant Agreement (the "Agreement") with PARC Enterprises, Inc. ("PARC"); and WHEREAS, per the Agreement, PARC would receive a conditional grant in the amount of$195,750.00 toward the infrastructure costs for the construction of a multi-retail space building in Port Arthur to be completed by March of 2020; and WHEREAS, per Resolution 20-036, PARC was given an additional nine months to perform the necessary construction in order to receive the agreed upon incentive; and WHEREAS, PARC has reached the amended term of the Agreement, and due to extenuating circumstances, has not yet been able to begin the project, therefore, not meeting the requirement of the Agreement and not receiving the incentive funds; and WHEREAS,on August 2, 2021,the PAEDC Board of Directors voted and acknowledged the termination of the Agreement, thereby terminating the Agreement with PARC 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 that the termination of the Economic Development Conditional Grant Agreement between PARC 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 Batiste, PAEDC CEO #1888197 Page 2 APPROV S TO FORM: So Ci,C.del Guy N. Goodson, PAEDC Attorney APPROVED AS TO FORM: alecia R. T. o, City torney 41888197 Page 3