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Home My WebLink AboutPR 23216: 1ST AMENDMENT TO THE PERFORMANCE AGREEMENT BETWEEN EDC AND MID CO. SHOPPING PLAZA, LLC 0 PORT*ARTHUR+�%uat4 Uttt ntt\C INTEROFFICE MEMORANDUM Date: September 19, 2023 To: City Council of the City of Port Arthur Through: Ron Burton, City Manager From: Terry Stokes, PAEDC CEO RE: Proposed Resolution No. 23216 I First Amendment to the Performance Agreement between the City of Port Arthur Section 4A Economic Development Corporation and Mid Co. Shopping Plaza, LLC. Intent: The intent of Proposed Resolution No. 23216 is to seek the City Council of the City of Port Arthur's approval of the First Amendment to the Performance Agreement between the City of Port Arthur Section 4A Economic Development Corporation and Mid Co. Shopping Plaza, LLC. Background: The Performance Agreement entered into in January of 2022, was for the purpose of providing incentives to Mid Co in consideration for certain infrastructure improvements to the property located at 3701 41 st street in Port Arthur for the development of a multi-tenant shopping center. Construction costs for the project have increased significantly since execution of the Agreement and Mid Co has approached the PAEDC for consideration of an increase to their incentive amount to cover the increased costs of their infrastructure project. Budget Impact: The budget impact of this item is: $61,039.15, funds available in EDC Account No. 120-80-625- 5478-00-00-000. Recommendation: It is recommended that the City Council of the City of Port Arthur approve the First Amendment to the Performance Agreement with Mid Co. Shopping Plaza. P.R. No. 23216 09/19/2023 KM RESOLUTION NO. A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE PERFORMANCE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND MID CO. SHOPPING PLAZA, LLC; FUNDS AVAILABLE IN EDC ACCOUNT NO. 120-80-625-5478-00-00-000 WHEREAS, per Resolution No. 21-529, the City Council of the City of Port Arthur approved the City of Port Arthur Type 4A Economic Development Corporation ("PAEDC") to enter into an Economic Development Conditional Grant Agreement (the"Agreement") with Mid Co. Shopping Plaza, LLC ("Mid Co") for an amount of$108,911.73; and WHEREAS, the Agreement was for the purpose of providing incentives to Mid Co in consideration for certain infrastructure improvements to the property located at 3701 41st street in Port Arthur for the development of a multi-tenant shopping center; and WHEREAS,construction costs for the project have increased significantly since execution of the Agreement; and WHEREAS, at their Regular Board Meeting of June 12, 2023, the PAEDC Board of Directors found and determined that it is beneficial to reimburse the Recipient a percentage of the increased costs for the Project and approved the First Amendment to the Agreement increasing the incentive amount by an additional$61,039.15 as detailed in the First Amendment to the Agreement attached hereto as Exhibit"A". 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 the City Council approves the First Amendment to the Performance Agreement between the Port Arthur Economic Development Corporation and Mid Co. Shopping Plaza, LLC. 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., 2023, 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 APPROVED: 4 Terry Stokes, PAEDC CEO APP VED AS TO FORM: aAlt/L--; OJ 64IX- (4554- (VIA C arles E. Zech, PAEDC ttorn y #1470247 Page 2 APPROVED AS TO FORM: Val Tizeno, City Attorney APPROVED AS TO AVAILABILITY OF FUNDS: kCA-/ ct Kandy Daniel, Finance Director #1470247 Page 3 Exhibit "A" FIRST AMENDMENT TO ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND MID CO. SHOPPING PLAZA, LLC This First Amendment ("First Amendment") to the Performance Agreement between the City of Port Arthur Section 4A Economic Development Corporation and Mid Co. Shopping Plaza, LLC ("Agreement")is entered into to be effective as of the date as executed below, by and between the Port Arthur Economic Development Corporation, located in Port Arthur, Jefferson County, Texas (hereinafter called "PAEDC"), a Texas Type A non-profit economic development corporation under the Development Corporation Act and governed by TEX. LOC. GOV. CODE chapters 501, 502 and 504 and the Texas Non-Profit Corporation Act and Mid Co. Shopping Plaza,LLC,a Texas Limited Liability Corporation (hereinafter called "Recipient"), otherwise known as the "Parties" to this Agreement. RECITALS WHEREAS,the Parties previously entered into an Agreement on the 6th day of January, 2022 for the purpose of providing incentives to the Recipient in consideration for certain infrastructure improvements (the "Project"); and WHEREAS, construction costs for the Project have increased significantly since execution of the Agreement; and WHEREAS, the PAEDC finds and determines that it is beneficial to reimburse the Recipient a percentage of the increased costs for the Project. NOW, THEREFORE, in consideration of the mutual covenants, benefits and agreements described and contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and further described herein,the Parties agree as follows: ARTICLE I RECITALS 1. Recitals. The recitals set forth above are declared true and correct by the Parties and are hereby incorporated as part of this Agreement. ARTICLE II AGREEMENT AMENDMENT 1. Amendment. Section 6.a.i. is hereby amended to read as follows: PAEDC shall conditionally grant Incentive Recipient an amount not to exceed one hundred sixty-nine thousand nine hundred fifty dollars and 88 cents($169,950.88) for the purpose of constructing a 6,084 square-foot metal building with concrete parking, driveways and all utilities required for the developed site located on the Property; 2. Amendment of Agreement. Except as specifically amended by this First Amendment, the terms and provisions stated in the Agreement shall continue to govern the rights and obligations of the Parties, and all provisions and covenants of the Agreement, as amended by this First Amendment, shall remain in full force and effect. The terms and provisions of the Agreement, as hereby amended by this First Amendment, are hereby ratified and confirmed. In the event of any inconsistency, the terms and provisions of this First Amendment shall control over and modify the terms and provisions of the Agreement. 3. Binding Agreement. The terms and conditions of this Agreement shall be binding on and inure to the benefit of the Parties,and their respective successors and assigns.The Executive Director of the PAEDC shall be responsible for the administration of this Agreement and shall have the authority to execute any instruments, duly approved by the PAEDC, on behalf of the Parties related thereto. [SIGNATURE PAGE FOLLOWS] 2 Approved as to Form )(c<D4L---r /16(5 kJ— 64' A Charles E. Zech, PAEDC General Counsel Verification of Consistency with City Council Approval Valecia Tizeno Executed on this day of ,2023. COMPANY: MID CO.SHOPPING PLAZA,LLC By: Name: Heraldo Munoz Title: PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION(PAEDC) By: Name: Terry Stokes Title: Chief Executive Officer 3