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Home My WebLink AboutPR 15089: PA HOLDINGS III, LTDinteroffice N~1~ORAI~DUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney ~,~,,,,~ ~~w~ Date: February 3, 2009 Subject: P. R. No. 15089; Council Meeting February 10, 2009 Attached is P. R. No. 15089 as it pertains to Port Arthur Holdings III, Ltd. MTS:ts Attachment Copy to: SDI Realty Bob Avery Construction Manager z.pz15089 memo P. R. No. 15'089 02/03/09 is RESOLUTION NO. A RESOLUTION AS IT PERTAINS TO PA HOLDINGS III, LTD. WHEREAS, per Resolution No. 07-010, the City and Port Arthur Holdings III, Ltd., entered into a. Sales Tax Refund Agreement; and Ti~uFnc, per Resolution No. 07-219, the City agreed to provide an incentive for the remediation of the property located at 8857 Highway 69; and w~uFnc, per Resolution No. 07-440, an Amendment No. 1 to the Sales Tax Refund Agreement. for Retail Center Development, a tacked z hereto as Exhibit "A", was approved, granting Port Arthur Holdings an extension until March 1, 2008 to remediate the property at 8857 Highway 69 to TCEQ standards and by building additional access and parking. areas on the property; and WHEREAS, per the letter, attached hereto as Exhibit "B", Port Arthur Holdings III, Ltd. is requesting the extension be changed to July 15, 2009 due to the remediation process of the property located at 8857 Highway 69 being more extensive than originally proposed by having to over excavate the property, which not only caused time delays, but budget over runs as well; and WHEREAS, it is deemed in the public interest. to grant Port Arthur Holdings III, Ltd. an extension until July 15, 2009 to z.pr;soa9 complete the remediation of the property located. at 8857 Highway 69. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That .the facts and opinions in the preamble are true and correct. Section 2. That Port Arthur Holdings III, Ltd. is herein granted an extension until July 15, 2009 to remediate the property located at 8857 Highway 69 to TCEQ standards. Section 3. That Port Arthur Holdings III shall sign this Resolution acknowledging the extension and that they will continue to comply with the other terms of the Sales-Tax Refund Agreement. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2009, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor Councilmembers NOES: MAYOR z.pi15089 ATTEST: TERRI HANKS, ACTING CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER AGREED TO: PORT ARTHUR HOLDINGS III, LTD BY: Name: Title: President z.pt15089 EXY-I I B LT "A" AMENDMENT NO. 1 TO SALES TAX REFUND AGREEMENT FOR RETAIL CENTER DEVELOPMENT BETWEEN THE CITY OF PORT ARTHUR AND PORT ARTHUR HOLDINGS III, LTD. WHEREAS, pursuant. to Resolution No. 07-010, the City of Port Arthur and the Port Arthur Holdings III, Ltd. entered into a Sales Tax Refund Agreement in January 2007; and WHEREAS, the City of Port Arthur has or will provide a $9,882.58 incentive as denoted in Resolution No.07-219 for the remediation of the property at 8857 Highway 69; and WHEREAS,-due to escalating remediation costs, Port Arthur Holdings III, Ltd. requests an additional incentive. to remediate the adjacent property located at 8857 Highway 69, which will enable them to provide additional access and parking area as to locate additional restaurants on the tracts described in Exhibits "A", "B", or °C" of the Sales Tax Refund Agreement_ NOW THEREFORE, it is herein agreed to between the City of Port Arthur and Port Arthur Holdings III, Ltd. as follows: 1. That Section. 2.01. of the Sales Tax Refund Agreement is amended as follows: "AS an incentive for the construction of the retail center in the Zone, the City agrees to refund to Port Arthur . Holdings III, Ltd., a portion (which portion is set forth below) of the sales tax proceeds from retail sales at this retail center, {the "Sales Tax Refund"). The parties acknowledge the provisions of existing state law (i.e., Chapters 151 and 321., Texas Tax Code), whereby retail sales at the stores to be located in the retail center are subject to a total tax of 8.25% (the !'Total Tax"). The Total Taxes that will be collected by Port Arthur Holdings III, Ltd., or by the occupants of the retail center on each applicable retail sale, reported and paid. to the Texas Comptroller of Public Accounts, are as follows: • To the State of Texas 6.25x; • To the City 1.00°s (the "City Portion"); z.POrt Arthur Holdings III, Ltd._refund acreement amer.~dment • To Jefferson County 0.600; and • To the City ofPort:Arthur EDC O.SOo. Only the City Portion of the Total Tax shall be subject to this Agreement. The Sales Tax Refund in each will equal: (i) 100% of the City Portion (lp) collected with respect to retail sales at the. stores to be located at the retail center described in Exhibit "A" (Tract I, 1.3156 acre), Exhibit "B" (Tract II, 3.5920 acres), and Exhibit "C" (Tract III, 4.8047 acres), for the first year. (ii) 50°s of the City Portion collected with respect to retail sales at the stores to be located at the retail center described in Exhibit "A" {Tract I, 1..3156 acre), Exhibit "B" (Tract IL, 3.5920 acres), and Exhibit "C" (Tract III, 4.8047 acres), for the second and third year. The refund for the second and third year shall be proportionately reduced if .Port Arthur Holdings III, Ltd. does not build a 80,000 square foot retail center as amount of square feet divided by 80,000. (iii) 50°s of the City Portion collected with respect to retail sales at the stores to be located at the retail center described in Exhibit "A" (Tract I, 1.3156 acre)., Exhibit "B" (Tract II, 3.5920 acres), and Exhibit "C" (Tract III, 4.804.7 acres), for the fourth year to the tenth year, up to a maximum of $120,000 per year. The refund for the fourth to the tenth year shall be proportionately reduced if Port Arthur Holdings III, Ltd, does not build a 80,000 square foot retail center as amount of square feet divided by 80,000. 2. That Section 2.03 of the Sales Tax Refund Agreement is amended as follows: "This agreement shall terminate on the expiration of the refund period." 3. That The City of Port Arthur will make .said refunds only from the City portion of sales tax that is collected with respect. to the retail center as located in the tracts described z.POrt Arthur Holdings III., Ltd._refund agreement amendment in Exhibits "A", "B", and "C", with such further limitations as denoted in the Sales Tax Refund Agreement approved by Resolution No. 07-010. 4. That said Amendment is contingent upon Port Arthur Holdings III remediating the property at 8857 Highway 69 to TCEQ standards and by building additional access and parking areas on the property located at 8857 Highway 69 as to locate additional restaurants on the tracts described in Exhibits "A", "B", or "C" of the Sales Tax Refund Agreement by March 1, 2008. SIGNED//-AND AGREED TO on this the ~ g hday of S rn.lOCT 2007. CITY OF PORT ARTHUR, a Texas Municipal Corporation (the "City") BY: L=~/ ~~~~.~~i - Name ?5~ Stephen Fitzgibbons Title: City Manager SIGNED AND AGREED TO on this the (p day of ~e.~Na4rl - 2009 PORT ARTHIIR HOLDINGS III, LTD'. BY: ame: @NX/F,L4S w S!7'fF,}C~ Title: President. z.POrt Arthur Holdings III, Ltd. refund agreement amendment - ~ EXHIBIT "B" sD~ REALTY RECEI~f~ JAN 13 1009 January 12, 2009 LEGA1 DEP~R~~ENT Ciry of Port Arthur Legal Department 444 4a' Street, 4"' Floor Port Arthur, TX 77640 RE: Amendment No. 1 to Sales Tax Refund Agreement for Retail Center Development. Mr. Sokolow, Port Arthur Holding III, Ltd is requesting the March 1, 2008 date in paragraph 4 be changed to July 15, 2009. The remediation process of the property located at 8857 Highway '69 was more extensive than originally proposed. To remediate to TCEQ standazds, Port Arthur Holding III, Ltd had to over excavate the property which not only caused time delays but budget over runs as well. Sincerely, Bob Avery SDI Realty, Ltd. Construction Mana~er 712 Main Street 29 Floor Houston, TX 77002 713-892-5200 ext. 106 ']I2 MAIN, 29TH FLOOR . HousroN,Tsxns 77ooz . 713.89z.gzoo • FAX 7t3.89z.so3z • www.sDtReALTY.COM