HomeMy WebLinkAboutPR 24226: DILIGENCE OFFSHORE SERVICES LLC P.R. NO. 24226
03/13/2025 RPC
RESOLUTION No.
A RESOLUTION OF THE CITY OF PORT ARTHUR, TEXAS TO ENTER INTO A
GROUND LEASE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR,
TEXAS AND DILIGENCE OFFSHORE SERVICES LLC FOR APPROXIMATELY
2,274 ACRES OF CITY-OWNED LAND ON OR NEAR PLEASURE ISLAND FOR
THE DEVELOPMENT, CONSTRUCTION, AND OPERATION OF WIND AND
SOLAR ENERGY FACILITIES, A SUBSTATION, DATA CENTER, OFFSHORE
ENERGY HUB AND OTHER NECESSARY APPURTENANT FACILITIES
WHEREAS,the City of Port Arthur,Texas,is a home-rule municipality and is a"Council-Manager"
form of government in the State of Texas; and
WHEREAS, Diligence Offshore Services LLC ("Diligence")has requested that the City enter into a
ground lease agreement for the proposed construction of a wind power facility and/or solar power
facility,including one or more energy generation,storage,and/or transmission facilities,which may
include batteries, buildings, substations, related underground and aboveground utility lines,
interconnected transmission lines and other related facilities ("Project") to be located on or near
Pleasure Island using approximately 2,274 acres of City-owned land ("Site"), which is more
specifically and legally described in the ground lease agreement attached as Exhibit A; and
WHEREAS,City Council instructed City staff and its outside legal counsel to negotiate a ground lease
agreement for an under 40 year term with Diligence for the Project on the Site with certain terms and
conditions; and
WHEREAS,City Council finds that the Project promotes economic development,stimulates business
and commercial activities and further finds that its in the best interest of the City.
Now THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS:
SECTION 1. The facts and above-recitals in the preamble are true and correct.
SECTION 2. That the Mayor and City Manager are authorized to enter into a ground lease
agreement with a term less than 40 years with Diligence Offshore Services LLC (or its permitted
assigns)in substantially the same form 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.
Resolution No. Page l
READ,ADOPTED AND APPROVED,this 18th day of March,2025 AD,at a Meeting of the City Council
of the City of Port Arthur,Texas by the following vote: AYES:
Mayor: •
Councilmembers: •
•
•
NOES:
CITY OF PORT ARTHUR,TEXAS
Thurman"Bill"Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
Resolution No. Page 2
EXHIBIT A
GROUND LEASE BETWEEN
THE CITY OF PORT ARTHUR,TEXAS AND DILIGENCE OFFSHORE SERVICES, LLC
Resolution No. Page 3