Loading...
HomeMy WebLinkAboutPR 15341: NEIGHBORHOOD EMPOWERMENT ZONEP. R. No. 15341 06/24/09 mts RESOLUTION NO. A RESOLUTION AS IT PERTAINS TO THE WAIVER OF BUILDING PERMIT FEES AND TAP FEES AS IT PERTAINS TO THE NEIGHBORHOOD EMPOWERMENT ZONE ADJACENT TO U.S HIGHWAY 69 AND THE SALES TAX REFUND AGREEMENT WHEREAS, a neighborhood empowerment zone was created pursuant to Resolution No. 04-426; and WHEREAS, a Sales Tax Refund .Agreement with LaGrone Services, Ltd. was authorized per Resolution No. 05-105 on March 29, 2005 as it pertains to development within the neighborhood empowerment zone; and WHEREAS, per Article 3 of the Agreement as delineated in Exhibit "A", the City agreed to waive all building permit fees and tap fees to be charged to LaGrone Services, Ltd. in order to assist in the timely construction of a retail center and a hotel in the area; and WHEREAS, the intent of the agreement was to provide LaGrone Services, Ltd. the flexibility to provide this incentive to companies that he sold the property to within the zone; and WHEREAS, LaGrone Services :Ltd has sold a portion of the property to WOW Land Holdings who is in the process of designing and constructing a Cheddar's restaurant within the zone; and WHEREAS, per Resolution No. ~D9-236, the City Council approved z.pr15341 the waiver of the building permit fees and tap fees as to facilitate the construction of facilities including Cheddars Restaurant in the neighborhood empowerment zone; and WHEREAS, the City Council deems said waiver to be prudent as to facilitate economic development:, under Chapter 380 of the Local Government Code; and WHEREAS, Cheddar's Restaurant:, as well as the other companies that plan to build retail, hotel or similar facilities were still required to pay for all construction costs, which includes, but is not limited to, the cost to tap into the City' s water and sewer system and to pay for all meters and related equipment. 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 Resolution No. 09-236 is herein amended as follows: Section 3. 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 z.pr15341 the City of Port Arthur, by the following vote: AYES: Mayor Councilmembers NOES: _: ATTEST: CITY SECRETARY APPROVED AS TO FORM: SEE CONFIDENTIAL MEMO MAYOR CITY ATTORNEY APPROVED FOR ADMINISTRATION: ~. CITY MANAGER ASSISTANT CITY MANAGER, REBECCA UNDERHILL z.pr15341 EXHIBIT "A" z.pr15341 SALES TAX REFIIND AGREEMENT FOR RETAIL FACILITY REDEVELOPMENT AND EXPANSION BETWEEN THE CITY OF PORT ARTHIIR AND LAGRONE SERVICES, LTD. This Sales Tax Refund Agreement (this "Agreement") is entered into as of April 1, 2005 (the "Effective Date") by and between the City of Port Arthur (the "City"), a Texas municipal corporation of the County of Jefferson and State of Texas, and LaGrone Services, LTD. Article 1. General Provisions 1.O1.This Agreement is authorized and governed by (i) Chapter 378 (Neighborhood Empowerment Zone) of the Texas Local Government Code, Sections 378.001 through 378.004, (ii) Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development) of the Texas Local Government Code, Sections 380.001 through 380.003, and (iii) the City's Resolution No. 05-105 enacted on March 29, 2005 and City Resolution No. OS-141 on May 10, 2005. 1.02. LaGrone Services, LTD., is negotiating a contract to purchase certain land (the "Property") in the City of Port Arthur, Jefferson County, Texas described on Exhibit A attached hereto and made a part hereof. The Property is situated within the City as a Neighborhood Empowerment Zone pursuant to Resolution enacted on December 14, 2004. LaGrone Services, LTD., proposes to construct. a retail center and possibly a hotel of approximately 266,000 square feet in Phase I, and 120,000 square feet in Phase II as delineated in projections provided to the City by LaGrone Services, LTD., on the Property, which retail center and hotel the City has found will contribute to an increase in economic development in the Zone. 1.03. The Property is not part of an improvement project financed with tax increment bonds. 1.04. The Property is not owned or leased by any member of the Port Arthur City Council or any member of the City Planning and Zoning Commission. Article 2. Grant and Refund Schedule and Term 2.O1.As partial consideration for the construction of the retail center and hotel in the Zone, the City agrees to refund to LaGrone Services, LTD., a portion (which port;icn is set forth below) of the sales tax proceeds from retail sales at this retail center and hotel, (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 and at the hotel are subject to a total tax of 8.25 (the "Total z.lei refund agreement2 ~ 'Cax") The Total Taxes will be collected by LaGrone Services, LTD., or by the occupants of the retail center and hotel on each applicable :retail sale, reported and paid to the Texas Comptroller of Public ;accounts, and thereafter disbursed as follows: • To the State of Texas • To the City • To Jefferson County • To the City of Port Arthur EDC 6.25%; 1.00% (the "City Portion"); 0.50%; and 0.50°s. Only the City Portion of the Total Tai: shall be subject to this Agreement. The Sales Tax Refund in each calendar year (i.e., January 1 through December 31) will equal: (i) 100% of the City Portion (1G) collected with respect to retail sales at the stores to be located at the retail center described in Exhibit "A" and at a hotel for the first year, up to a maximum of $300,000. (ii) 50% of the City Portion collected with respect to retail sales at the :>tores to be located at the retail center described in Exhibit "A" and at a hotel for the second year to the tenth year, up to a maximum of $300,000 per year. (iii) The total refund shall not exceed $3,000,000. (iv) The refund shall be proportionately reduced if LaGrone Services, LTD., does not build a 200,000 square foot retail center and a :hotel, as amount of square feet divided by 200,000. 2.02. The period of the Sales Tax Refund (the "Refund Period") will commence on December 1, 2006, the Commencement Date and will expire on November 30, 2016, unless sooner terminated in accordance with the terms and conditions herein set forth in this agreement. 2.03. This Agreement shall terminate on the earlier to occur of (i) the expiration of the Refund Period and (ii) the date that the sum of the Sales Tax Refund paid to LaGrone Services, LTD., equals $3,000,000. 2.04. The City will pay to LaGrone Services, LTD., thereof during the Refund Period either (a) within thirty (30) days after receipt of the City Portion from the Texas Comptroller of Public Accounts or (b) at the City's option (but only after written notice to LaGrone Services, LTD.,) in monthly installments based upon the reasonably estimated Sales Tax Refund for the applicable calendar year. :? z.lai refund agreement2 2.05. Notwithstanding anything to the contrary contained herein, the substantial completion of the retail center with a certificate of compliance by the City shall be a condition precedent to the obligations of the City under this Agreement. Article 3. Additional Incentives Provided by the City of Port Arthur As partial consideration for the. construction of the retail center and a hotel in the Zone and the creation of jobs and other economic benefits to the Zone anticipated in connection with the operation of the retail center and a hotel, the City agrees to expedite the process for all hearings, reviews, inspections, and contacts with City staff in order to ensure the timely completion of the construction process, and to consider any other reasonable requests made by LaGrone Services, LTD., in order to assist it in constructing the retail center and of the hotel. The City will either pay or waive all building permit fees and tap fees to be charged to LaGrone Services, LTD., for the retail center and hotel. Nevertheless, LaGrone Services, LTD., is responsible to pay for all construction costs, which includes, but is not limited to, the cost to tap into the City's water and sewer ~;ystem and to pay for all meters and related equipment. Article 4. Effect of Sale and Assignment 4.01. LaGrone Services, Ltd. shall have the right, without the City's consent, to transfer or assign this Agreement to an Affiliate (as such term is hereinafter defined;i of LaGrone Service, Ltd. or any other business that will occupy the retail store or own the hotel for the purpose of operating a retail business, provided that LaGrone Services, Ltd. shall notify the City in writing of such transfer or assignment within ten (10) after the effective date thereof. For purposes of this Agreement, the term "Affiliate" shall mean: (1) A parent corporation of LaGrone Services, Ltd; (2) Any wholly subsidiary of LaGrone Services, Ltd. or LaGrone Services, Ltd.'s parent corporation; (3) Any business entity succeeding to substantially all of LaGrone Services, Ltd.'s assets as a result of a consolidation or merger; or (4) Any business entity to which all or substantially all of LaGrone Services, Ltd.'s assets as to this property have been sold. 4.02. The Transfer or assignment of this Agreement to an entity which does not satisfy the requirements of Section 4.01 above shall require the City's consent as evidenced by a Resolution of the City Council after receipt by the City of LaGrone Services, Ltd.'s written notification of such proposed transfer at least ten (10) days before the effective date thereof, provided that the City's consent shall not unreasonably be withheld, conditioned, or delayed, but shall be z.lsi refund agreement2 $ conditioned upon the express assumption, pursuant to an Assignment of and Assumption of Obligations Under Sales Tax Refund Agreement in substantially the form attached hereto as Exhibit "B", by such transferee/assignee of all of LaGrone Services, Ltd.'s obligations set forth in this Agreement. 4.03. Any attempted transfer or <~ssignment of this Agreement in violation of the terms set forth in this Article 4 shall be void ab initio, and shall entitle the City to terminate this Agreement by written notice to LaGrone Services, Ltd., whereupon the parties hereto shall be relieved of all duties hereunder except that LaGrone Services, Ltd. shall be entitled to its share of the Sales Tax Refund accrued prior to the date of such termination; provided, however, that such termination shall not be effective if, within ten days after its receipt of the City's termination notice, LaGrone Services, Ltd. shall notify the City that LaGrone Services, Ltd. has rescinded such attempted transfer or assignment. 4.04. Effective as of the effective date of a transfer or assignment pursuant to Section 4.01 or 4.02 above, LaGrone Services, Ltd. will be released of any further duties or obligations under this Agreement. Article 5. Independent Contractor/Indemnity 5.01. In executing this Agreement and in performing their respective obligations hereunder, thE~ City and LaGrone Services, Ltd. are acting independently and not in any form of partnership or joint venture. The City assumes no respon:~ibilities or liabilities to any third parties in connection with thi:~ Agreement. Article 6. Documentation 6.O1.The parties agree that the dollar amount of retail sales tax eligible for the Sales Tax Refund will be calculated based upon sales and sales tax information furnished by the Office of the Comptroller of the State of Texas or any successor agency charged with collecting such information and preparing such reports (the "Comptroller's Office".) Each calendar year (or month, if the City elects to pay the Sales Tax Refund in monthly installments) during the applicable Refund Period, LaGrone Services, Ltd. will authorize the Comptroller's Office to furnish to the City a report of LaGrone Services, Ltd. or of the occupants of the retail center and hotel collections and payments of sales tax for the retail center and hotel during such calendar year (or month, as applicable.) The retail center occupants and the hotel will also provide to LaGrone Services, Ltd. or his assignee, a copy of their sales tax reports, who will thereafter forward it to the City. z.lsi refund agreement2 ~ Article 7. Notice 7.01. All notices required or permitted by this Agreement will be delivered either (a) by certified mail., postage prepaid, effective five days after mailing, or (b) by hand delivery or by a nationally recognized overnight courier, in either case effective upon delivery, in all cases addressed as follows (or to such other address as a party may specify to the other party by notice delivered in accordance with the terms hereof): TO LAGRONE SERVICES, LTD.: LaGrone Services, Ltd. ATTN: Kerry LaGrone 13810 Champion Forest Drive Suite 145 Houston, TX 77069 TO THE CITY: City of Port Arthur ATTN: City Manager 444 4th Street P. O. Box 1089 Port Arthur, TX 77641 Article 8. Miscellaneous 8.01. This Agreement was approved by the City Council of the City at its meeting on March 29, 2005. 8.02. If any section, subsection., paragraph, sentence, phrase, or word of this Agreement is held invalid for any reason, the balance of this Agreement will remain in effect and will be read as if the parties intended at all times not to include the invalid section, subsection, paragraph, sentence, phrase, or word. 8.03. This Agreement will be construed under the laws of the State of Texas. 8.04. This Agreement may be executed by the parties in multiple counterparts, all of which counterparts when taken together constituting one Agreement. Article 9. Termination Clauses 9.01. This Agreement can be terminated by the City of Port Arthur if LaGrone Services, Ltd. does not own the property described in Exhibit "A" by JU~'1'C 30i x,005 ~Re~erenc~ (~eso(,,,,i~~o~#(~5--4) 9.02. This Agreement can be terminated by the City of Port Arthur if LaGrone Services, Ltd. does not commence construction by October 1, 2005. z.lai refund agreement2 5 9.03. If the events delineated :in Sections 9.01 or 9.02 occur, the City of Port Arthur shall give LaGrone Services, Ltd. ten (10) days written notice thereof. z.lsi refund agreement2 f~ ,/ SIGNATIIRE PAGE TO SALES TAX REFUND AGREEMENT FOR RETAIL CENTER DEVELOPMENT BETWEEN THE CITY OF PORT ARTHUR AND LAGRONE SERVICES, LTD. EXECUTED by the parties hereto to be effective as of the date first set forth above. CITY OF PORT ARTHUR, a Texas Municipal Corporation (the "City") BY : ~/ _ Name: Stephen Fitzgibbons Title: City Manager LAGRONE SERVICES, LTD. BY: KERRY R. LAGRONE, LLC, ITS MANAGING G.P. BY: ` Name: Kerry R. LaGrone Title: President z.lei_refund agreement2 7