HomeMy WebLinkAboutPR 22141: EDC, I&C ENTERTAINMENT II, LLC PORT*ARTHUR
ONOMIC DEVELOPMENT CORâ–ºORATIO\
INTEROFFICE MEMORANDUM
Date: September 21, 2021
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: Floyd Batiste, CEO Port Arthur EDC
RE: PR 22141 —Approving Amendment No. 1 to the Economic Development
Conditional Grant Agreement between the City of Port Arthur Section 4A
Economic Development Corporation and I&C Entertainment II, LLC
Introduction:
The intent of this Agenda Item is to seek City Council's approval of Amendment No. 1 to the
Economic Development Conditional Grant Agreement between the City of Port Arthur Section
4A Economic Development Corporation and I&C Entertainment II, LLC.
Background:
The PAEDC awarded I&C Entertainment II, LLC a conditional economic development grant in
an amount of$415,000.00 to reimburse I&C for a portion of the costs for necessary
infrastructure improvements to the property located at 2729 Jimmy Johnson Blvd. in Port Arthur,
Texas for the development of a restaurant and retail multi-tenant strip mall. I&C has met two of
the three performance milestones completing the infrastructure and restaurant space. I&C has
requested an extension to the Agreement of one additional year to complete the second retail
space due to circumstances hindering the project construction as a result of the Covid-19
pandemic
Budget Impact:
None
Recommendation:
It is recommended that the City Council of the City of Port Arthur approve Amendment No. 1 to
the Economic Development Conditional Grant Agreement between the City of Port Arthur
Section 4A Economic Development Corporation and I&C Entertainment II, LLC.
P. R.No.22141
09/16/2021 KVM
RESOLUTION NO.
A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT
AGREEMENT BETWEEN THE CITY OF PORT ARTHUR
SECTION 4A ECONOMIC DEVELOPMENT CORPORATION
AND I&C ENTERTAINMENT II,LLC
WHEREAS, per Resolution 20-093, dated March 17, 2020, the City Council of the City
of Port Arthur approved an Economic Development Conditional Grant Agreement (the
"Agreement") between the City of Port Arthur Section 4A Economic Development Corporation
(the "PAEDC") and I&C Entertainment II, LLC ("I&C") in an amount of $415,000.00 to
reimburse I&C for a portion of the costs for necessary infrastructure improvements to the property
located at 2729 Jimmy Johnson Blvd. in Port Arthur, Texas for the development of a restaurant
and retail multi-tenant strip mall; and
WHEREAS, I&C has requested an extension to the Agreement due to circumstances
hindering the project construction's completion as a result of the Covid-19 pandemic; and
WHEREAS, at their special board meeting of September 13,2021, the PAEDC Board of
Directors approved an amendment to the Agreement allowing for an additional year to complete
the project as detailed in the amendment 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 Development Conditional Grant Agreement between the Port Arthur Section 4A
Economic Development Corporation and I&C Entertainment II, LLC as denoted in the
Amendment attached hereto as Exhibit"A".
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:
Floyd Batiste AEDC CEO
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APPROVED AS TO FORM:
244-
Frank a AEDC Attorney
APPROVED AS TO FORM:
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a R en , ity Attorney
#1370989 Page 3
EXHIBIT "A"
ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT
AMENDMENT NO. ONE
This is an Amendment to an Economic Development Conditional Grant Agreement
between THE CITY OF PORT ARTHUR ECONOMIC DEVELOPMENT
CORPORATION (PAEDC) , and I & C ENTERTAINMENT II, LLC (Incentive Recipient).
WHEREAS, the PAEDC and Incentive Recipient, entered into an Economic
Development Conditional Grant Agreement (hereinafter referred to as the"Agreement"),effective
May 18, 2020; and
WHEREAS, Incentive Recipient acquired the property at 2729 Jimmy Johnson and
intended to make significant infrastructure improvements to provide space to be occupied by a
restaurant and multiple major commercial tenants, which will generate both sales tax and add to
the ad valorem tax base of the City("Project"); and
WHEREAS,in consideration of development of the infrastructure improvements,PAEDC
agreed to reimburse Incentive Recipient in an amount,not to exceed$415,000.00 as a conditional
grant, subject to the receipt of verification of construction of qualifying improvements; and
WHEREAS, Incentive Recipient was given a period of twenty-four(24)months from the
execution of the Conditional Grant and related agreements to receive the certificates of occupancy
and Exhibit C of the Agreement outlined the Performance Milestone Schedule Incentive Recipient
was to achieve to complete the qualifying improvements; and
WHEREAS,the PAEDC Board approved amending the Agreement to extend the term by
one additional year as requested by the Incentive Recipient due to project delays as a result of
rising costs of all materials and labor and COVID related issues
NOW, THEREFORE, for and in consideration of mutual covenants and agreements
contained herein, and per Section 28 of the Agreement, the parties hereby agree to amend the
Agreement as follows:
Section 1. Exhibit C
a. April 30, 2021 - Review approved infrastructure plans by the City of Port Arthur and
projected costs with P AEDC for the construction of the project.
b. October 31, 2021 - I & C Entertainment II, LLC will issue a status report to P AEDC on
Project construction.
c. April 30, 2022 - I & C Entertainment II, LLC will provide evidence of completion of the
qualifying infrastructure improvements and assign Letter of Credit to PAEDC for 30% of
the total incentive amount. PAEDC will issue 30% of Economic Incentive Grant to I & C
Entertainment II, LLC.
d. December 31, 2022 - I & C Entertainment II, LLC will obtain Certificate of Occupancy
for the first retail tenant space and provide a copy to the P AEDC. I &C Entertainment II,
LLC will increase Letter of Credit in an amount equal to an additional 35%of the Incentive
Grant. PAEDC will issue 35% of Economic Incentive Grant to I & C Entertainment II,
LLC.
e. January 31, 2023 - I & C Entertainment II, LLC will issue a status report to P AEDC on
remaining project construction.
f. March 31, 2023 - I & C Entertainment II, LLC will obtain Certificate of Occupancy for
the second retail tenant space and provide a copy to the PAEDC. PAEDC will issue the
remaining 35%of Economic Incentive Grant.
g. April 30, 2023-PAEDC Board of Directors release Letter of Credit to I& C
Entertainment II, LLC and file is closed.
Section 2. The Amendment outlined in Section is the only change to the original Economic
Development Conditional Grant Agreement and all other provisions of the original Agreement,
any approved and Exhibits not in conflict with this Amendment shall remain in full force.
Section 3. This Amendment shall be effective upon the execution of this Amendment by both
parties.
THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT
CORPORATION
By:
Name: Darrell Anderson
Title: President
Date:
ATTEST:
PAEDC Secretary
I & C ENTERTAINMENT II,LLC
By:
Name: Clarence O. Vallet.
Title:
Date: