HomeMy WebLinkAboutPR 22074: TERMINATION OF THE ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT WITH MAX HOLDINGS, LLC o
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PORT*ARTHIJR
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—22074 Termination of the Economic Development Conditional Grant Agreement
between Max Holdings, LLC(Max Holdings)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 Development Conditional Grant Agreement with Max Holdings, LLC, and close the file.
Background:
On May 21,2019,City Council authorized the PAEDC to enter into an Economic Development Conditional
Grant Agreement with Max Holdings, LLC, in the amount of$118,800.00 toward infrastructure costs for
construction of a multi-tenant shopping plaza to be completed by January 30, 2020. Per Resolution 19-
564, Max Holdings was granted an amendment to amend the timeframe from six months to twenty-four
months to meet the conditions set forth in the Agreement. Max Holdings has now reached the amended
term of the Agreement. Due to extenuating circumstances Max Holdings 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 between Max Holdings, LLC (Max Holdings) and the Port
Arthur Economic Development Corporation(PAEDC)and the closing of the file.
P. R. No. 22074
8/5/2021 KVM
RESOLUTION NO.
A RESOLUTION APPROVING THE TERMINATION OF THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT
AGREEMENT BETWEEN MAX HOLDINGS, LLC AND THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION
WHEREAS, on May 21, 2019, the City Council of the City of Port Arthur approved
Resolution No. 19-208 authorizing the City of Port Arthur Section 4A Economic Development
Corporation ("PAEDC") to enter into an Economic Development Conditional Grant Agreement
(the "Agreement")with Max Holdings, LLC ("Max Holdings"); and
WHEREAS, per the Agreement, Max Holdings would receive a conditional grant in the
amount of $118,800.00 toward the infrastructure costs for the construction of a multi-tenant
shopping plaza in Port Arthur to be completed by January 30, 2020; and
WHEREAS,per Resolution 19-564,the Agreement was amended to correct the timeframe
given to Max Holdings for completion of construction from six months to twenty-four months;
and
WHEREAS, Max Holdings 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 Max Holdings 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 Max Holdings 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
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APPRO E AS TO FORM:
Guy N. Goodson, PAEDC Attorney
APPROVED AS TO FORM:
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Valecia R. Tizeno, ity ttorney
#1888225 Page 3