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HomeMy WebLinkAboutPR 22801: AGREEMENT WITH SAIGON TOWN, LLC, REDEVELOPMENT P.R. No. 22801 10/11/2022 ht RESOLUTION NO. A RESOLUTION AUTHORIZING A CHAPTER 380 AGREEMENT WITH SAIGON TOWN,LLC FOR THE REDEVELOPMENT OF A COMMERCIAL PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE WHEREAS, on April 5, 2016, the City Council adopted Resolution 16-102 creating Neighborhood Empowerment Zones(NEZ)in certain areas of Port Arthur pursuant to Chapter 378 of the Texas Local Government Code to promote, (1)the creation of affordable housing,including manufactured housing, in the zone; (2) an increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or(4)the rehabilitation of affordable housing in the zone; and, WHEREAS, Saigon Town, LLC recently purchased the dilapidated commercial property located in a Neighborhood Empowerment Zone at 4439 Gulfway Drive; and WHEREAS, Saigon Town, LLC submitted a Project Certification Application attached hereto as Exhibit "A", to the City certifying that the existing 21,000sq/ft structure will be redeveloped into a shopping center that will attract retail businesses and provide jobs for local residents to promote economic development and stimulating business and commercial activities within the City; and WHEREAS, the rehabilitation project cost is approximately $400,000, therefore, Saigon Town, LLC is respectfully requesting that the City provide incentives such as property tax refunds and fee waivers; and WHEREAS,it is deemed in the public's interest that the City Council approve a Chapter 380 Agreement with Saigon Town,LLC,for the property located at 4439 Gulfway Drive.in substantially the same form as attached hereto as Exhibit"B". 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 does hereby find and make determinations as follows: a) That the creation of the zone would promote an increase in economic development in the zone. b) That the creation of the zone benefits the purpose of increasing the public health, safety, and welfare of the persons in the municipality. c) That the creation of the zone satisfies the requirements of Section 312.202 of the Tax Code and/or Chapter 380 of the Texas Local Government Code in that it will likely contribute to the retention or expansion of primary employment or attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City. Section 3. That the boundaries of the Port Arthur Neighborhood Empowerment Zone shall be as shown in Exhibit"A". Section 4. That the City Manager is herein authorized to execute the Chapter 380 agreement with Saigon Town, LLC in substantially the same form as described in Exhibit"B". Section 5. 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., 2022, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: Thurman Bill Bartie, Mayor ATTEST: • Sherri Bellard, City Secretary APPROVED AS TO FORM: Valecia Tizeno City Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager 4y. c:7\ Kandy Daniel, Finance Director EXHIBIT "A" ty r. _ - IR 11111111 1„t 1 1 ( � . -I =i� q '"'I_ I I - = r a !Nis • • .1 1[1�C ilk ' " I = m IC.'FI fA,' 12_.. IMO l_ ' _ j 1 — -� u h - r ,___I al +tYd�l _= b �A 1 I aim �� —(�' = .� , I E 1111 _ -- 1 �� '—' 1—.•> a..r - --A ��-^-iai ���i L_ _ A. .,• Wes• . J _ V L1 — — t, i j- :.: /., [41F Mr-1 — 12' p. r.. 70 0 ' n :_-_7 ni 1 1.--ir , ,___. .......1____„: 9 _ 0 ,_-1,_ ] _ . ___ w b« • - t i._._'MIN I I ,U._ • ._,.... I __ t �� � = � � T } _1LW^Y -! N , i '. blow_ _i__. .emu.. .I �.. 6 , O . - - T P- • 1 I If 1 1 11�. I ffI1� _ = . ._ . ice, E It - } t 1111111 11 ' \ i _ -_. �� �MN c�a� NA Mt 111•11 __......., = . ,:i i Nm ____ , ..., __ 1111111 sia . ... ..1111.... _ ,_ II 1 Non v1 -=^{ 1 )' III Ij� .... 011. — r�. �, I -- !_..- , ce' s _, , 014 f ;� fee r + . �1 I L ... :1 — _ t �? [ A_ " / ilk$ !� x = g �^ L� - .�- ~~ .— \\N- ---\-- — ,:,-. IQ" r ! Y I -1 Lit __ r"i-11---=F=1 'r- „rr rtJru r, _ NEIGHBORHOOD EMPOWERMENT ZONE(NEZ)PROGRAM PROJECT CERTIFICATION APPLICATION I. APPLICATION CHECK LIST—Please submit the following documentation: ' A completed application form signed by the property owner. A list of all properties owned by the applicant,owner,developer,associates,principals,partners, and agents in the City of Port Arthur. Non Refundable Application fee — For all Basic Incentives applications excluding Tax Abatement the application fee is $25.00. For multi-family, commercial, industrial, community facilities and mixed-use development projects: one-half of one percent(0.5%)of the total Capital Investment of the project, with a $150.00 minimum not to exceed $1,000; For residential tax abatement applications: $100 per house. ` ” Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated will OR evidence of site control,such as option to buy(A registered warranty deed is required for tax abatement application). Title abstract of the property(only if applying for release of City liens). / A reduced 11 x17 floor plan,site plan,and site elevation with a written detailed project description V that includes a construction time line. A detailed line item budget showing the cost breakdown for the project. V Copy of Incorporation Papers noting all principals,partners,and agents if applicable. Required—Meet with the Councilmember and Neighborhood&other Organizations representing the NEZ as outlined in the Public Notice requirement of the NEZ Policy and Guidelines or followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ. INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS OF THE DATE OF APPLICATION. YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90 BUSINESS DAYS TO COMPLETE THE TAX ABATEMENET AGREEMENT APPROVAL PROCESS ADTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT.AL BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED,OR YOU WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES. CITY OF PORT ARTH1 UR.-PROJECT CERTIFICATION APPLICATION PAGE 2 The purpose of this application is to present to the City of Port Arthur a reasonable comprehensive outline of the project for which the incentives are requested. Please review the Neighborhood Empowerment Zone guidelines carefully before completing this application. If additional space is needed,separate sheets may be attached. INCENTIVE TYPES(What are you seeking): lcuilding Fee Waiver ✓Expedited Permit Review i Lien Waivers VTax Abatement APPLICANT INFORMATION: Applicant Name: c c c C VI -A-()Le Yl Physical Address:9.; l-1 ,� iYlt W �r C✓4' u(^ "T (Street Address) (� f� (City) (State) (Zip) Mailing Address: AO O _(li 0 vet j)( poet Ai; r'" '- k t 1`'4 (Street Address) (City) (State) (Zip) Primary No: 1+0 -- C1 b ) Fax No: Other No: (Cell;etc.) Email Address: A.t.l(ea ex �,/ Ct-ackh . C 0 0'1 Authorized Agent(if applicable):cl 7 Physical Address: (Street Address) (City) (State) (Zip) Mailing Address: (Street Address) (City) (State) (Zip) Primary No: Fax No: Other No: (Cell;etc.) Email Address: Organization Informatiion: 1_ Business/Organization Name: _Cat' 61 yr L_t.C- Type of Business/Organization: (�-L' Date Formed:tOggifiMLL— y r 4Z.UPt)--- (i.e.Corporation,Ltd.Partnership,LLC,etc.) 1 Physical Address: (�l.r 3 4'U,t,.Jt,,� Dr Po fi�`• P iLu,r" t X .�7 �c . (Street Address) t 0 (City) 1 (State) (Zip) '� Mailing Address: ' /101) tL f Leo 0 d Q" D1�4 t}�"1"�rL(,�✓ -+ -1 L%�x . lj °vet Address) (C#y) (State) (Lip) State Registered: T Other Locations: (City/State) Designated Contact Person: MI L(�.,Q_ N,9 wt,-.+1 CITY OF PORT ARTHUR-PROJECT CERTIFICATION APPLICATION PAGE 13 Contact No: 1+09— ot—q 69 ? 1 Email Address: Principal Officers: Name Address // Telephone No. �aIdt t1 k� . t 4 T -,1�1, �Cllir_�u`G �t' \��c C� ����9 av a. NI 0., : s ,(0q- 73gGY-4 . If additional space is needed,please provide information as an attachment. Tax Information: Is the Business current with all taxes? Does the proposed project conform to City of Port Arthur Zoning? \Wes it/Yes No r No Project Type(check all that apply): Single Family or Duplex Non-residential/Heavy Commercial Multi-Family - Industrial Non-residential/Light Commercial Planned Development District Mixed-Use Development Information: Project Location: �'3 • u At X '-7 V U (Street Address) (Cit} (State) (Zip) Legal Description(Lot/Block/Subdivision): E,1-6 LAIR ti t= 1\i 1/ Q-1- LT ; ;Lk._ 3 vci- p ti L. C o I. ..70 c: Attach plat of property Project Description: .Z Y\ 0 A v cx. V\,,,Cj t W 1 t N 7 ‘d/Y\ -4r4 G . (c,C + (Oa U \.e Y S Lrko ,. )/e.C4-, a r\d P(c v "c� � frici 19QLA- A- f . CITY OF PORT AR FI IR-PROJECT CERTIFICATION APPLICATION PA C 'r 4 If the project is a Commercial (Light/Heavy), Industrial, Planned Development, or Mixed-Use project, please describe the type(s)of business(es)that is/are being1 proposed: �� a 4,_ �l/A0 VOk- Vx I/1 OW_G l.0 vl 1tL S tzt 't►r C G L �V t Y\ �v 0. t Y l(1 rl,.a l t ;,v I V\ 7 t, ft.)/Vl t` 1 S J u f f Riv\, . 1,/✓1 c 1<T e. . ✓e C1 f✓L i t >/ 6-V\J ( i e ,b d C Is this a new construction or improvement to existing project? C.— �Vl New Construction mprovement to existing project Total Square footage of improvement/project: 4-1 , sq. ft. Infrastructure Improvements? 'es f No Please describe: LV.0 U..ve, f t FAX T k-s/ �'� ��� !�v1n �v f�< �g (� e C cJ O b1Lt 4.}c V Col.1. GA, ,AA_ Y t a-1 4*4 Project Cost(estimated): $ L.. '0 0 000. 00 �} Estimated project commencement date: �6 t it-3 to).- Estimated project completion date: -4+ r 3 tk- Estimated date of project to be operational: I o1C� d Lien Waivers: Are you requesting City Liens to be released? I— Yes cX10 Please Describe: vU x - k a/wk.\ tl t vL\ n CITY OF PORT ARTHI R-PROJECT CERTIFICATION APPLICATION PAGE 15 Employment Impact: What is the estimated number of permanent full-time new jobs that will be created? h 0) How many new,temporary and part-time jobs will be created in Port Arthur? • New • Temporary • Part-time `rlL What percentage of employees do you anticipate will be residents living in? • Neighborhood Empowerment Zone: I Ov % • City of Port Arthur: % • Jefferson County: • Outside Jefferson County: What type of jobs will be created? Z& c 1 olj S What will be the total project's annual payroll of the newly created jobs? $ wnn I a,c-Fe,vk C( Will specialized training be required? 15 c4A,\_ r Yes No What type(s)of training: Fiscal Impact: Is there an anticipated cost to the City of Port Arthur for providing municipal services to the proposed project? rYes Mr/No CITY OF PORT ARTHUR-PROJECT CERTIFICATION APPLICATION PAGE 16 Community Impact: Do you anticipate the proposed project of having a substantial impact on the local residential,commercial or retail market? K4es " No Will one or more of the following be required? r Re-zoning i'Platting —RepIatting Definitions: Compatibility: Construction is generally compatible with the massing, size, scale. and architectural features of the surrounding buildings and environment. Amenities: Construction includes enhanced pedestrian and/or streetscape amenities. Downtown Revitalization Plan: Development project is consistent with and promotes the Downtown Revitalization Plan. Investment: New construction on a vacant site includes a minimum capital investment of $50,000. Rehabilitation of an existing building in accordance with Secretary of the Interior Standards. Includes a minimum capital investment of$50,000 or 30% of the present building value as appraised by JCAD, whichever is greater. Job Creation: Development project creates 1 new, full-time job (or correlative FTV (full-time employment)per 200 square feet of gross floor area:or(supporting documentation required) Vacant/Underutilized—Site/Building: Construction occurs within the Vacant/Underutilized Sites/Buildings Improvement Area as designated in the Tax Increment Reinvestment Zone(TIRZ). Rezoning:To change the governmental classification and permitted uses of(an area or piece of real estate). Platting: Chapter 212 of the Texas Local Government Code authorizes cities to require platting of property. The purposes of platting include, among other things, ensuring orderly development in accordance with the Comprehensive Plan,the provision of adequate public infrastructure meeting the City's design standards,and the establishment of accurate records of land subdivision. Replat: A map of a re-division of a previously platted subdivision which satisfies all legal requirements for recording with the county clerk. CITY OF PORT ARTHUR-PROJECT CERTIFICATION APPLICATION P A C; P: 17 Acknowledgement:. I. I hereby certify that the information provided is true and accurate to the best knowledge. I hereby acknowledge that I have received a copy of NEZ Program Guidelines,which governs granting of tax refunds and fee waivers, and that any VIOLATION of the terms of the NEZ guidelines or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City of Port Arthur. II. It is understood that the information provided herein is based on estimates and projections, but that such estimates and projections have been fully investigated and are made in good faith as to their accuracy.It is further understood that any information provided herein that is actual and not estimated is represented to be true and correct or for which there is no good faith basis,may result in the denial of consideration for or termination of incentive agreement. III. I understand that the approval of fee waivers and other incentives shall not constitute approval of any aspect of the project. I understand that I am responsible for obtaining all required permits and inspections from the City and in ensuring the project is in the correct zoning district. It is strongly suggested you meet with a member of the Planning Division prior to application. LL I L 1\13LA- I�V1 Print or T pe Applicant Name Author Ignature ' IA1 t.t �-, Date Please mail or fax your application to: City of Port Arthur,Department of Development Services—Planning Division 444 4th Street,Suite 337,Port Arthur,Texas 77640 Tel: (409)983-8135 Fax: (409)983-8137 CITY OF PORT ARTHUR-PROJECT CERTIFICATION APPLICATION PAGE 18 For Office Use Only City Council District: Date Application Completed: Date Application Submitted: Staff recommendation(s)and/or comment(s): r Approved r Denied Approved By: Print or Type Name Authorized Signature Date Comments: I II III 11111111oogs 2022036262 General Warranty Deed Date: I 0/ oZ / Grantor: Hoang Nguyen & Michelle Nguyen (Husband and Wife) Grantor's Mailing Address: 7100 Kelliwood Drive, Port Arthur,Texas 77642 Sailor -ttN Grantee: Town, LLC Grantee's Mailing Address: 7100 Kelliwood Drive, Port Arthur, Texas 77642 Consideration: For and in consideration of the sum of$10.00, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby Grants, Bargains. Sells, and convey to Grantee all of his interest: 1. Lot Number 46.25'X247.4' & 185'X337.4' OF N1/2 OF LT 6 BLK 3 RG G PALCO 1.702 AC, to the City of'Port Arthur, Texas as same appears upon the map or plat thereof, on file and of records in Jefferson County,Texas Also Known AS 4439 Gulfway Drive. Port Arthur. Texas 77642. Reservations from and Exceptions to Conveyance and Warranty: This conveyance is made subject to all restrictions, easements, covenants, conditions, and prior conveyances or reservations of mineral and/or royalties of record in Jefferson County, Texas, affecting said property: and subject to all zoning laws, and regulations and ordinances of municipal and/or other governmental authorities, if any, but only to the extent that they are still in effect. relating said property. Grantor, for the Consideration and subject to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. grants, sells, and conveys to Grantee the Property. together with all and singular the rights and appurtenances thereto in any way belonging. to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Grantor bind Grantor and Grantor's heirs, successors. to ‘varrant and forever defend all and singular the 1 ! Page Property to Grantee and Grantee's heirs, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the Reservations from Conveyance and the Exceptions to Conveyance and Warranty. When the context requires, singular nouns and pronouns include the plural. 1/1 Hoa g Nguj en usband) Michelle i guyen (Wife) Accepted By: f 0 Saigon Tow LL ' (Hoang Nguyen & Michelle Nguyen, Owners) STATE OF TEXAS ) COUNTY OF JEFFERSON ) This instrument was acknowledged before me on 10 / fl by I-loang Nguyen and Michelle Nguyen (Husband and Wife). '(.. V-4 4141 ,1: ELSA L MEDINA Notary Public, State of Texas PYPUB'i,-..Notary Public,State of Texas "::::;:r...1.:i?. Comm.Expires 11.14.2022 'i,;o ��` Notary ID 13179620.7 2IPage I'1 FR Rt.kA)R1)1\k: RI N.\ 1 tl FILED AND RECORDED OFFICIAL PUBLIC RECORDS A:31444:4-- I aL c FEL- ..‘"I " 2022036262 r .11)1111 t Jr1\+111t.M%a S•talli+11 I'1 MIA ! ;..• 'S:.t.! rt1 .'' �111. \. .rift 1i.,. 'V'11,;,.., ()flier of the Secretary of State ( 1.ItIil•i( •.% tI. OFI'II I\(. ()1 S.iit on I tm n. 1.11' !Ale \umhet Sit-tint)it►t, I he undersigned, as Sc':tet.0 of State of Ie\a•. hack certifies that a ('t:ttlli:.tte t+h I (+tmatit►n tin the at4+‘c named Domestic I nnttetl I talalttc ('un ►.u1n tl ICI h.I• hctin IC:eltetl In this office and has hecn found.to i 4„.tif+I ill to the applicable 1't 0%I�h►i1.t+t I.ri% 1('( ORI)IMil.1 the untictstgruxi. a. %cctetat\ of state, find he ctltue t,t the .uttit,''.t\ te.te,l in the K'eretar k la‘ , hcteb ,.sue.this comical,:c ItkCntiinn; mint ellecti%c on the,i.tte slim%tt hcit+tt I he 1"11.114:C Of tilt. Ct1tttli.it' %tt►C. not tltlA+tl.e the use of.1 name in this 'tale Ill ;a'lJtitm (lithe tit.ht. of another undo the t:ctetal Itadenl.lrl. Act of It)-k+. the 1-es.►• t►aaicnta,L I.t the 1'.tunet1 I;Et.lite.. t►r I'rotia..ion.ii \ante 111, ot the et►nmton tat h.tte,i 1)-$ 1+11 :IC' Ilh tnca r ; • F ✓' ,Wi• � • ' v, John t; Scott�'b •to �� Sectetar‘ of State s ti ( .•flit'17 att 1J�Mt 1)1. t•rlr Yth-1 it Nip +.N'. a.H t.'t.t+ l,'r.1 (`it,atc t�l!, t(, <ci ha% I 12)aht.t71N) 1),.tl " 1.1 Irr ►tci.n ti:lc t..s I'rit►.n�ttI°. Li, �aut►.1 lit) 11)iltl+ Ih�,rn►rnt III'!`"I"tr, • Secretary of State + f Filed in the Office of the P.O. Box 13697 + ` ' `� Secretary of State of Texas Austin, TX 78711-3697 Filing #: 804509196 04/06/2022 FAX: 512/463-5709 Document#: 1137223500003 Certificate of Formation Image Generated Electronically Filing Fee: $300 Limited Liability Company for Web Filing Article 1 -Entity Name and Type ,The filing entity being formed is a limited liability company.The name of the entity is: i (Saigon Town, LLC Article 2-Registered Agent and Registered Office rA.The initial registered agent is an organization (cannot be company named above) by the name of: OR 3B.The initial registered agent is an individual resident of the state whose name is set forth below: • Name: ;Van Thi Nguyen C.The business address of the registered agent and the registered office address is: Street Address. 7300 Brazos Avenue Port Arthur TX 77642 Consent of Registered Agent rA.A copy of the consent of registered agent is attached. OR 176.The consent of the registered agent is maintained by the entity. ��. ..___...__...__..._...�-' Article 3-Governing Authority A 1. l A. The limited liability company is to be managed by managers. OR l` B.The limited liability company will not have managers. Management of the company is reserved to the members. The names and addresses of the governing persons are set forth below: Manager 1.Vu Van Nguyen fide: Manager Address: 7300 Brazos Avenue Port Arthur TX, USA 77642 Manager 2:Van Thi Nguyen ftitie: Manager Address: 7300 Brazos Avenue Port Arthur TX, USA 77642 Article 4-Purpose The purpose for which the company is organized is for the transaction of any and all lawful business for which limited 'liability companies may be organized under the Texas Business Organizations Code. 1 Supplemental Provisions/ Information [The attached addendum,if any,is incorporated herein by reference.] Initial Maiiing-Address rAddress to be used by the Comptroller of Public Accounts for purposes of sending tax information. _ [The initial mailing address of the filing entity is: .7300 Brazos Avenue 'Port Arthur, TX 77642 USA Organizer The name and address of the organizer are set forth below. Van Nguyen 7300 Brazos Avenue, Port Arthur, Texas 77642 Effectiveness of Filing r-A. This document becomes effective when the document is filed by the secretary of state. OR •;1.•!B. This document becomes effective at a later date, which is not more than ninety (90) days from the date of its 'signing. The delayed effective date is: April 7, 2022 Execution The undersigned affirms that the person designated as registered agent has consented to the appointment.The ,undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument and certifies under penalty of perjury that the undersigned is authorized under the provisions of law governing the entity to execute the filing instrument. Van Thi Nguyen ;Signature of Organizer FILING OFFICE COPY SAI(;ON TOWN, LLC' PARTNERSHIP AGRE14,MEN'!' I loang II Nguyen and Michelle Nguyen enters intn this agreement to form Saigon "fown. IIC. The agreement has the following terms: I. Profit is split 50/50, 2. Loss and Taxes is 50/50, 3. Roth arc equal managing partner,and both can make all business decisions, 4. The partnership can be terminated anytime by either partner. 6 1 _ _ aq (r)q/, z I Ioan`r I I N yeti Date Michelle Nguyen Date EXHIBIT "B" STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is entered into by and between the City of Port Arthur,Texas,a home-rule city and municipal corporation of Jefferson County, Texas, hereinafter referred to as "City", and Saigon Town, LLC, Port Arthur, Texas, hereinafter referred to as"Developer". WITNESSETH WHEREAS,the City has established a program in accordance with Article III, Section 52- a of the Texas Constitution and Chapter 380 of the Texas Local Government Code("Chapter 380") under which the City has the authority to make loans or grants of public funds for the purposes of promoting local economic development and stimulating business and commercial activity within the City; and WHEREAS, pursuant to Resolution No. 16-102, the City designated Neighborhood Empowerment Zones (NEZ) in certain areas of Port Arthur pursuant to Chapter 378 of the Texas Local Government Code to promote, (1) the creation of affordable housing, including manufactured housing, in the zone; (2) an increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or(4)the rehabilitation of affordable housing in the zone; and WHEREAS,Developer has applied for economic development incentives from the City of Port Arthur to assist with a property redevelopment project in a NEZ located at 4439 Gulfway Drive, Port Arthur, Texas 77642; and WHEREAS, the Developer has made a substantial investment of approximately $400,000.00 to the existing 21,000 sqft structure since the designation of the NEZ; and WHEREAS, the City of Port Arthur is further authorized to make certain economic development incentives pursuant to Chapter 380 of the Texas Local Government Code in recognition of, conditioned upon and derived from the positive economic benefits that will accrue to the City; and WHEREAS, the City has concluded and hereby find that this Agreement promotes economic development in the City of Port Arthur and, as such, meets the requirements under Chapter 380 and the City's established economic development program, and is in the best interest of the City and Developer; and WHEREAS, the City recognizes the positive economic impact that the Facility brings to the City through development and diversification of the economy reduction of unemployment and underemployment through the production of new jobs, the attraction of new businesses, and the additional tax revenue generated by the Project for the City; and WHEREAS, consideration of the development, construction and continuous operation of the Facility, will assist in stabilizing the existing Property Tax Revenues to the City and create approximately 60 full time and 44 part time jobs located at 4439 Gulfway Drive, the City agrees to use such funds in order to provide the Reimbursement Amount (as defined herein) to the Developer directly in the amounts described in Section 6 of this Agreement; and WHEREAS,to ensure that the benefits the City provides under this Agreement are utilized in a manner consistent with Article III, Section 52-a of the Texas Constitution, Chapter 380 and other law, the Developer has agreed to comply with certain conditions to the payment of those benefits. NOW,THEREFORE,in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration,the receipt and sufficiency of which are hereby The property, known as the "Premises" subject of this Agreement shall be the property owned by Saigon Town, LLC at 4439 Gulfway Drive, Port Arthur, Texas, 1. The Developer has caused to be constructed a shopping center, known herein as the "Facility," with a construction cost of$400,000.00. The Developer agrees to maintain these improvements and continuous operation of the Facility for a period of eight (8) years as good and valuable consideration of this Agreement. In the event that the "Facility' is not continuously maintained in accordance with this Agreement,then this Agreement shall be subject to termination and all delinquent taxes and taxes which otherwise would have been paid to the City without the benefit of rebate will become a debt to the City and shall be due, owing and paid to the city within sixty(60) days of any such event. In the event that the Developer defaults in the terms and conditions of this Agreement,the City shall give the Developer written notice of such default and if the Developer has not cured such default within thirty(30)days of said written notice, this Agreement may be terminated by the City.Noticed shall be in writing and shall be delivered by personal delivery or certified mail addresses as follows: Saigon Town, LLC 7100 Kelliwood Drive Port Arthur, Texas 77642 2. In the event that the City should fail to timely or substantially comply with any one or more of the requirements, obligations, duties, terms, conditions or warrantied of this Agreement, such failures shall be an Act of Default by the City and the City shall have ninety(90)days to cure and remove the Default upon receipt of written notice to do so from Saigon Town,LLC. Saigon Town,LLC specifically agree that the City shall only be liable to Saigon Town, LLC, for the amount of waivers and rebate, outlined herein, attorney's fees, and costs of court, shall not be liable to Saigon Town, LLC for any alleged consequential damages. Saigon Town, LLC hereby waives any rights or remedies available to it at law or in equity. Notices shall be in writing and shall be delivered by personal delivery or certified mail addressed as follows: Ronald Burton, City Manager City of Port Arthur 444 4th Street Port Arthur, Texas 77640-1089 3. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. Other than assignment to a Saigon Town, LLC affiliate, this Agreement cannot be assigned by Developer to anyone or any other entity which is not an affiliate of Saigon Town, LLC, unless written permission is first granted by the City, which permission shall be in the sole discretion of the City. 4. The Developer agrees to hold the City harmless from any and all kinds of claims,losses, damages, injuries, suits or judgments involving the City and relating to such improvements. 5. The City shall have reasonable right to inspect the Premises and Project during regular daylight hours to ensure that the improvements are made according to the terms of this Agreement. In addition,the Developer agrees to provide records and documentation to the City, sufficient to verify improvements and employment data in order to ensure performance under this agreement. 6. Subject to the terms and conditions of this Agreement, all increases in taxes owed to the City, assessed from the ad valorem real value resulting from the improvements of these Premises, are hereby rebated in their entirety for a period of eight (8) years beginning January 1, 2023. 7. In reference to the City of Port Arthur's Neighborhood Empowerment Zone Program, Value of Abatement's: authorized facilities may be granted municipal tax abatement on all or a portion of the increased taxable of eligible property over the base year value for a period not to exceed three (3) years, except as outlined below. The eligibility requirements are as follows: Investment Municipal Tax Abatement Schedule or Incentive $400,000 or more for any 100% for new 8 Years eligible use investments and the incremental value for Substantial Investments relocating to the City 8. The City and Developer each agree to act in good faith and to do all things reasonably necessary or appropriate to carry out the terms and provisions of this agreement,and to aid and assist the other in carrying out such terms and provisions in order to put the other in the same condition contemplated by this Agreement. 9. If the Developer elects not to proceed with the continuous operation of the facility as contemplated by this Agreement, the Developer will notify all parties in writing and the obligations of either Saigon Town, LLC and the City will be deemed terminated and of no further force or effect as of the date of such notice,except those that expressly survive the termination hereof, if any. 10. This Agreement was authorized by resolution of the City Council at its meeting on the December 20,2022,authorizing the City Manager to executed the Agreement on behalf of the City. 11. This Agreement was authorized by the Developer on the day of 12. This shall constitute a valid and binding agreement between the City and the Developers when executed on behalf of said parties, for the rebate of City ad valorem taxes in accordance therewith. The Agreement is performable in Jefferson County, Texas, witness our hands This day of CITY: CITY OF PORT ARTHUR,TEXAS, a Texas Home-Rule Municipality, By: Ron Burton, City Manager ATTEST: Sherri Bellard,City Secretary APPROVED AS TO FORM: Val Tizeno. City Attorney DEVELOPER: SAIGON TOWN,LLC, a Limited Liability Company, By: Michelle Nguyen, Owner By: Hoang Nguyen, Owner