HomeMy WebLinkAboutPR 22534: AMENDMENT NO. 1 EDC GRANT AND MIKE'S ENTERPRISES, INC. PORT*ARTHUR
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MEMORANDUM
Date: May 12, 2022
To: The Honorable Mayor and City Council
From: Krystle Muller �.
RE: P. R. 22543 -A resolution approving Amendment No. 1 to the Economic
Conditional Grant Agreement between the City of Port Arthur Section 4A
Economic Development Corporation and Mike's Enterprises, Inc.
Introduction:
The intent of this Agenda Item is to seek the City Council's approval of an amendment to the
Economic Conditional Grant Agreement between the City of Port Arthur Section 4A Economic
Development Corporation and Mike's Enterprises, Inc.
Background:
Per Resolution 20-176, the City Council of the City of Port Arthur approved the Economic
Conditional Grant Agreement between the PAEDC and Mike's Enterprises, Inc. in an amount of
$169,101.00 to fund a portion of the infrastructure costs associated with the development of a
new shopping center with two or more businesses at 3300 Jimmy Johnson Blvd. in Port Arthur.
Mike's Enterprises has requested an extension to their agreement in order to complete the
construction as there were delays due to material and labor shortages.
Budget Impact:
None
Recommendation:
It is recommended that the City Council approve an amendment to the Economic Conditional
Grant Agreement between the City of Port Arthur Section 4A Economic Development
Corporation and Mike's Enterprises, Inc. allowing for an extension of their term.
P. R. No. 22543
5/6/2022 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 MIKE'S ENTERPRISES,INC.
WHEREAS, per Resolution 20-176. dated May 26, 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 Mike's Enterprises, Inc. in an amount of$169,101.00 to reimburse Mike's Enterprises, Inc.
for a portion of the costs for necessary infrastructure improvements to the property located at 3300
Jimmy Johnson Blvd. in Port Arthur,Texas for the development of a multi-tenant shopping center;
and
WHEREAS, Mike's Enterprises, Inc. has requested an extension to the Agreement due to
circumstances hindering the project construction's completion; and
WHEREAS, at their Regular Board Meeting of May 2, 2022, the PAEDC Board of
Directors approved an amendment to the Agreement allowing for an additional ninety (90) days
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 Mike's Enterprises, Inc. 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., 2022,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor
Councilmembers
NOES:
Thurman Bartle, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Jerry LaBove, President of the PAEDC Board of Directors
#1370989 Page 2
APPROVED AS TO FORM:
rank G ,P EDC Attorney
APPROVED AS TO FORM:
V ecia R.T' no,City ttorney
#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 MIKE'S ENTERPRISES, INC. (Incentive Recipient).
WHEREAS, the PAEDC and Incentive Recipient, entered into an Economic
Development Conditional Grant Agreement (hereinafter referred to as the"Agreement"),effective
September 18, 2020; and
WHEREAS, Incentive Recipient acquired the property at 300 Jimmy Johnson Boulevard
in the City of Port Arthur, Texas and intended to make significant infrastructure improvements to
provide for a 13,000 square feet commercial space for retail, restaurant, and office space, 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 $169,101.00 to reimburse
Mike's Enterprises, Inc. for a portion of the costs for necessary infrastructure improvements as a
conditional grant, subject to the receipt of verification of construction of qualifying improvements;
and
WHEREAS, Incentive Recipient was given a period of eighteen (18) 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
an additional ninety (90) days as requested by the Incentive Recipient due to project delays as a
result of rising costs of all materials and labor and labor shortages;
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
d. May 31,2022—Mike's Enterprises will obtain Certificate of Occupancy for the first retail
tenant space and provide a copy to the P AEDC. Mike's Enterprises 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 Mike's Enterprises.
e. July 31, 2022 - Mike's Enterprises will issue a status report to PAEDC on remaining
project construction.
f. September 30, 2022 - Mike's Enterprises 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. October 30,2022 -PAEDC Board of Directors release Letter of Credit to Mike's
Enterprises and file is closed.
Section 2. The Amendment outlined in Section 1 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: Jerry LaBlove
Title: President
Date:
ATTEST:
PAEDC Secretary
MIKE'S ENTERPRISES, INC.
By:
Name: Mike Aref .
Title:
Date:
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 MIKE'S ENTERPRISES, INC. (Incentive Recipient).
WHEREAS, the PAEDC and Incentive Recipient, entered into an Economic
Development Conditional Grant Agreement (hereinafter referred to as the"Agreement"),effective
September 18, 2020; and
WHEREAS, Incentive Recipient acquired the property at 300 Jimmy Johnson Boulevard
in the City of Port Arthur, Texas and intended to make significant infrastructure improvements to
provide for a 13,000 square feet commercial space for retail, restaurant, and office space, 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 $169,101.00 to reimburse
Mike's Enterprises, Inc. for a portion of the costs for necessary infrastructure improvements as a
conditional grant, subject to the receipt of verification of construction of qualifying improvements;
and
WHEREAS, Incentive Recipient was given a period of eighteen (18) 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
an additional ninety (90) days as requested by the Incentive Recipient due to project delays as a
result of rising costs of all materials and labor and labor shortages;
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
d. May 31, 2022—Mike's Enterprises will obtain Certificate of Occupancy for the first retail
tenant space and provide a copy to the P AEDC. Mike's Enterprises 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 Mike's Enterprises.
e. July 31, 2022 - Mike's Enterprises will issue a status report to PAEDC on remaining
project construction.
f. September 30, 2022 - Mike's Enterprises 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. October 30, 2022 - PAEDC Board of Directors release Letter of Credit to Mike's
Enterprises and file is closed.
Section 2. The Amendment outlined in Section 1 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: Jerry LaBlove
Title: President
Date:
ATTEST:
PAEDC Secretary
MIKE'S ENTERPRISES, INC.
By:
Name: Mike Aref .
Title:
Date: