HomeMy WebLinkAboutPR 22234: EDC, CLOSING THE ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT WITH AREF 1, LTD. PORT*ARTHTJR ONOMIC DEVELOPMENT CORPORATION
INTEROFFICE MEMORANDUM
Date: November 9, 2021
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: George Davis, Interim PAEDC Chief Executive Officer
RE: P.R. 22234—A Resolution closing the Economic Development Conditional Grant
Agreement between Aref 1,Ltd. and the City of Port Arthur Section 4A Economic
Development Corporation
Introduction:
The intent of this Agenda Item is to seek City Council's approval to close the Economic
Development Conditional Grant Agreement between the City of Port Arthur Section 4A
Economic Development Corporation and Aref 1, Ltd.
Background:
On March 26, 2019, the City Council approved an Economic Development Conditional Grant
Agreement between the City of Port Arthur Section 4A Economic Development Corporation and
Aref 1, Ltd. for the purpose of reimbursing Aref 1, Ltd. for the a portion of the costs for
necessary infrastructure improvement to the property at 3350 Jimmy Johnson Blvd. to develop a
multi-tenant shopping center. Aref 1, Ltd. has completed the project and the shopping center is
now in operation with a minimum of two occupants. The PAEDC Board of Directors
acknowledged completion and approved closing the Agreement with Aref 1, Ltd..
Budget Impact:
None
Recommendation:
It is recommended that the City Council of the City of Port Arthur approve closing of the
Economic Development Conditional Grant Agreement between the City of Port Arthur Section
4A Economic Development Corporation and Aref 1, Ltd.
P. R. No. 22234
11/5/2021 KVM
RESOLUTION NO.
A RESOLUTION APPROVING THE CLOSING OF THE
ECONOMIC DEVELOPMENT CONDITIONAL GRANT
AGREEMENT BETWEEN AREF 1, LTD. AND THE CITY OF
PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION
WHEREAS, on March 26, 2019, the City Council of the City of Port Arthur (the "City
Council") approved Resolution No. 19-119 authorizing the City of Port Arthur Section 4A
Economic Development Corporation (the "PAEDC") to enter into an Economic Development
Conditional Grant Agreement (the "Agreement") with Aref 1, Ltd. ("Aref 1") for the purpose of
reimbursing Aref 1 for a portion of the costs for necessary infrastructure improvements to the
property located at 3350 Jimmy Johnson Blvd. in Port Arthur, Texas for the development of a
multi-tenant shopping center; and
WHEREAS, per Resolution 21-102 dated March 16, 2021, the City Council approved
Amendment No. 1 to the Agreement extending the Agreement by sixty (60) days due to delays
hindering the project's construction completion; and
WHEREAS, Aref 1 has now fully satisfied their contractual obligations as denoted in the
memorandum attached hereto as Exhibit"A"; and
WHEREAS, on November 1, 2021, the PAEDC Board of Directors voted and
acknowledged the satisfaction of the contractual obligations, thereby concluding the Agreement
with Aref 1.
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 contractual obligations in
the Economic Development Conditional Grant Agreement between Aref 1, Ltd. and the Port
Arthur Section 4A Economic Development Corporation have been met and are complete and
therefore approves the closing of the contract..
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
APPROV .
George avis, I erim PAEDC Chief Executive Officer
g1370969 Page 2
APPROVED AS TO FORM:
Frank rz AED Attorney
APPROVED AS TO FORM:
I ////4i `I
Valecia R.T' •n•,C orney
N1370989 Page 3
Exhibit "A"
Port Arthur Economic
Development Corporation
Memorandum
October 26, 2021
To: PAEDC Board of Directors
From: George Davis, Interim CEO
CC: Krystle Muller, Contract Compliance Manager
Re: Closing of the Economic Development Conditional Grant
Agreement with Aref 1, Ltd.
It is recommended that the Board of Directors close the Economic Development
Conditional Grant Agreement with Aref 1, Ltd. ("Aref 1") as Aref 1 has fully
satisfied the terms of the Agreement with the PAEDC.
In 2019, Aref 1 was awarded a conditional grant in the amount of$368,760.00
to be reimbursed by the PAEDC once certain infrastructure improvements were
complete at the property located at 3350 Jimmy Johnson Blvd. in Port Arthur,
Texas to allow for the construction of a multi-tenant shopping center.
Aref 1 has met the performance required by the PAEDC.
kvm
501 PROCTER ST.,STE. 100,PORT ARTHUR,TX 77640
1409-963-0579 l WWW.PAEDC.ORG