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HomeMy WebLinkAboutPR 25067: APPROVING AN ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT BETWEEN THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION AND PARC ENTERPRISES, INC. p l' ECONOMIC DEVELOPMENOT CORPORATIN Arur MEMORANDUM Date: 8/5/2026 To: The Honorable Mayor and City Council Through: Ronald Burton, City Manager From: Krystle Muller, PAEDC Chief Executive Officer RE: P.R. 25067 — A resolution approving an Economic Development Conditional Grant Agreement between the Port Arthur Economic Development Corporation and PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas for an amount not to exceed $157,130.00; funds available in EDC Account No. 120-80-625-5478-00-00-000 Introduction: The intent of this Agenda Item is to seek City Council's approval of an Economic Development Conditional Grant Agreement between the Port Arthur Economic Development Corporation and PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas for an amount not to exceed $157,130.00 Background: The PAEDC previously entered into a Conditional Grant Agreement with PARC Enterprises for the infrastructure improvements at 6770 9th Ave. for the construction of a 5,710 square-foot Shopping Center with concrete parking,driveways, and all utilities required for the developed site to increase the amount of retail space and thereby increasing sales tax with the anticipated increase in consumers visiting the shopping center. Due to several factors setting the completion date back, the Conditional Grant Agreement has expired. PARC Enterprises requested PAEDC to consider a new contract to allow the project to be completed. At their July 20, 2026 Board Meeting, the PAEDC Board of Directors approved entering into a new Conditional Grant Agreement with PARC Enterprises for a completion term of twelve (12) months. • Budget Impact: $157,130.00 Recommendation: It is recommended that the City Council of the City of Port Arthur approve an Economic Development Conditional Grant Agreement between the Port Arthur Economic Development Corporation and PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas for an amount not to exceed$157,130.00 P. R.No.25067 8/3/2026 KVM RESOLUTION NO. A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT BETWEEN THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION AND PARC ENTERPRISES, INC. D/B/A SCRIPT CARE PHARMACY OF TEXAS FOR AN AMOUNT NOT TO EXCEED $157,130.00; FUNDS AVAILABLE IN EDC ACCOUNT NO. 120-80-625-5478- 00-00-000 WHEREAS, the City Council deems it in the public interest to authorize the Port Arthur Economic Development Corporation ("PAEDC") to enter into an Economic Development Conditional Grant Agreement (the "Agreement") with PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas ("PARC"); and WHEREAS, PAEDC has reviewed the application presented by PARC and the proposal for infrastructure improvements for the development of a shopping center located at 6770 9`1' Avenue in Port Arthur, Texas; and WHEREAS, the PAEDC Board of Directors has concluded that the expenditures found for the infrastructure improvements will promote or develop new or expanded business enterprises as well as determined that PARC has presented an application qualifying as a Section 4A Project as set forth in the Economic Development Act; and WHEREAS, PAEDC, at their special Board meeting of July 20, 2026, approved a conditional grant in the amount not to exceed $157,130.00 for the purpose of making qualified infrastructure improvements to the property on 9`h Avenue based upon findings of facts of economic benefit as to the development of the property; and WHEREAS, PAEDC, under the terms of the Agreement, will distribute funds to PARC on a reimbursement basis as the improvements to the property on 9th Avenue are completed and Certificates of Occupancy for the property are issued as detailed in the Agreement 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 PAEDC is herein authorized to enter into the Agreement with PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, and the President and Secretary of PAEDC are authorized to sign the Agreement in substantially the same form attached hereto as Exhibit Section 3. That the amount of the Conditional Grant is $157,130.00; funds available in PAEDC Account# 120-80-625-5478-00-00-000. Section 4. 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., 2026, at a Meeting of the City Council of the City of Port Arthur,Texas,by the following vote: AYES: Mayor Councilmembers • NOES: Charlotte Moses,Mayor #2585352 Page 2 IF, ATTEST: Christe Whitley Ned, City Secretary APPROVED: KrY st Muller Psi Chief Executive Officer APPROV S TO F Guy Goodson, PAEDC Attorne APPROVED AS TO FORM: Roxann Pais Cotroneo,City Attorney APPROVED AS TO AVAILABILITY OF FUNDS: 6gatf-V nd oswell,Finance Director #2585352 Page 3 Exhibit "A" ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT BETWEEN THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION AND PARC ENTERPRISES, INC. d/b/a/ SCRIPT CARE PHARMACY OF TEXAS Executive Summary The Port Arthur Economic Development Corporation ("PAEDC") finds that the construction of infrastructure improvements located at 6770 9th Ave.in the City of Port Arthur, Texas (the "City"), is beneficial for the development and expansion of new and existing business enterprises in the City. For the reason, based upon findings of economic development as set forth in this Economic Development Conditional Grant Agreement (the "Agreement"), PAEDC conditionally grants to PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, a Texas corporation, the costs of qualifying infrastructure improvements in the amount of $157,130.00. PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, a Texas corporation (the "Incentive Recipient") plans to construct infrastructure improvements (the "Improvements") for the construction of a 5,710 square-foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site to increase the amount of retail space and thereby increasing sales tax with the anticipated increase in consumers visiting the shopping center. Incentive Recipient agrees to send PAEDC reports each quarter on the construction status of the Improvements and the proposed commercial development as outlined in the Performance Milestone Schedule of this Agreement. Incentive Recipient has agreed to provide as collateral for the performance of its obligation under the Agreement a Letter of Credit. ECONOMIC DEVELOPMENT CONDITIONAL GRANT AGREEMENT BETWEEN THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION PARC ENTERPRISES, INC. d/b/a/ SCRIPT PHARMACY OF TEXAS RECITALS WHEREAS, PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, a Texas corporation desires to make improvements on its property (the "Property") located at 6770 9th Avenue in Port Arthur, Texas for the construction of a 5,710 square-foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site; and WHEREAS, §501.103, Texas Local Government Code authorizes expenditures on infrastructure by the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC") if the PAEDC Board finds the expenditure "to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises," and WHEREAS, on July 20, 2026 following of facts contained in Exhibit "A," the PAEDC Board found that the facts reasonably support the finding that the construction of a 5,710 square- foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site to increase the amount of retail space; and WHEREAS, the PAEDC Board approved an economic development conditional grant to Parc Enterprises to redevelop and make necessary infrastructure improvements to the Property; and WHEREAS, the PAEDC and Parc Enterprises desire to set forth in this Agreement the terms and conditions for PAEDC's conditional grant payments for the infrastructure improvements to the Property. NOW THEREFORE,the parties agree as follows: AGREEMENT DATES AGREEMENT START DATE 1. This Economic Development Conditional Grant Agreement (the "Agreement") is entered into with an effective date of , 20_, but in no case later than September 30, 2026, by and between the City of Port Arthur Section 4A Economic Development Corporation("PAEDC") and Incentive Recipient. AGREEMENT END DATE 2. This Agreement expires thirty (30) days after Incentive Recipient either performs fully (anticipated date of completion is August 1, 2027) or breaches the Agreement, subject to earlier termination voluntary or involuntary, as provided per Section 31. � ,_ 12 PARTIES 3. Port Arthur Economic Development Corporation ("PAEDC"), located at 501 Procter Street, Port Arthur, Texas 77640, is a corporation. It is duly authorized to do business in the State of Texas under Chapter 501, 504 Texas Local Government Code (the "Act" or "Development Corporation Act") and duly authorized by Resolution of the City Council of the City of Port Arthur to enter into this Agreement. So authorized and as provided by the PAEDC bylaws, the President and Secretary of the PAEDC Board have the authority to execute this Agreement. 4. PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, a Texas corporation located at 6770 9th Avenue Port Arthur, Texas 77642. Sandra Richardson is the registered agent for PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas, a Texas corporation located at 6770 9th Avenue Port Arthur, Texas 77642. CONDITIONS PRECEDENT 5. This Agreement has no legal consequences unless and until: a. Both the PAEDC Board and the City of Port Arthur City Council approve the Agreement in its final form; and b. Incentive Recipient delivers to PAEDC quarterly status reports reflecting the progress of construction improvements to the infrastructure and provides PAEDC evidence of completion of the qualifying infrastructure improvements no later than December 31, 2026. PROMISED PERFORMANCE 6. The parties agree to perform as follows: a. Performance by PAEDC i. PAEDC shall conditionally grant Incentive Recipient an amount not to exceed $157,130.00 for the purpose of constructing a 5,710 square-foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site located on the Property; ii. Incentive Recipient will provide PAEDC evidence of completion of the infrastructure improvements to the construction of a 5,710 square-foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site by December 31, 2026 as set forth in Exhibit "C" and upon receipt PAEDC will reimburse Incentive Recipient thirty percent (30%) of the Conditional Grant with proof of Letter of Credit from Financial Institution on file; iii. Incentive Recipient will provide PAEDC a Certificate of Occupancy for the first retail space and provide a copy to the PAEDC by April 30, 2027 as set forth in Exhibit "C" and PAEDC will reimburse Incentive 13 Recipient thirty-five percent (35%) of the Economic Incentive Grant with proof of Letter of Credit from Financial Institution on file; and iv. Incentive Recipient will provide PAEDC a Certificate of Occupancy for the second retail space and provide a copy to the PAEDC by July 31, 2027 as set forth in Exhibit "C" and PAEDC will reimburse Incentive Recipient thirty-five percent(35%)of the Economic Incentive Grant. These are PAEDC's only obligations and are not legally required to provide any other financial support. b. Performance by Incentive Recipient i. Incentive Recipient shall make infrastructure improvements to the Property as outlined in the Grant Application referenced in Exhibit"B." ii. Incentive Recipient shall provide PAEDC with quarterly reports detailing the progress of the infrastructure improvements. iii. Incentive Recipient shall provide PAEDC certificates of occupancy for the retail spaces in order to receive the reimbursable percentage. iv. Incentive Recipient shall use its best efforts to hire architect(s), engineer(s), and general subcontractor(s) from the Nine-County Southeast Texas Region for the construction of the Building; v. Incentive Recipient will use its best efforts to ensure that Port Arthur, Texas residents are hired for the construction of the Building to the maximum extent feasible. vi. Incentive Recipient must complete the infrastructure improvements and receive certificate of occupancy for each retail space in Section 6.a. above within twelve(12)months from the date this Agreement is executed. vii. On written demand by PAEDC and in response to Incentive Recipient's failure to achieve a performance milestone, Incentive Recipient shall provide PAEDC within 10 business days following receipt of such written demand with assurances that it has both the intention and capabilities to perform fully its Agreement dual obligations. INCENTIVE RECIPIENT'S PERFORMANCE MILESTONE SCHEDULE 7. Although failure to achieve a performance milestone is not a breach of Agreement, a failure is grounds for PAEDC to demand reasonable assurances1 from Incentive 1 Examples of reasonable assurances are copies of pending Agreement s and commitment letters. 14 Recipient that it can and will fully perform its Contractual obligations. Failure to provide demanded assurances is a breach of Agreement. 8. Incentive Recipient's performance milestones are contained in Exhibit"C." PAEDC's CONDITIONAL OBLIGATIONS AND LIMITED LIABILITY 9. The PAEDC's sole liability/obligations, if any, shall be to Incentive Recipient and shall be limited to the conditional incentive obligations detailed in this Agreement. The PAEDC shall not be liable, in Agreement or otherwise, to Incentive Recipient, or to any person or entity claiming by or through Incentive Recipient., for any expense, expenditure or cost incurred by or on behalf of Incentive Recipient related to the construction of the Building made the basis of this Agreement. LIQUIDATED DAMAGES FOR BREACH OF AGREEMENT BY INCENTIVE RECIPIENT. 10. In the event Incentive Recipient breaches this Agreement or does not fulfill its obligation to complete infrastructure improvements per Section 6 (b) in order to provide PAEDC certificates of occupancy, Incentive Recipient will not be reimbursed for costs incurred by them for infrastructure improvements and this Agreement shall be terminated. 11. It is expressly understood and agreed by the parties that any right or remedy shall not preclude the exercise of any other right or remedy under this Agreement or under any provision of law, nor shall any action taken in the exercise of any right or remedy by deemed a waiver of any other rights or remedies. Failure to exercise any right or remedy hereunder shall not constitute a waiver of the right to exercise that or any other right or remedy at any time. RECORDS/INSPECTION/PAEDC AUDIT 12. Incentive Recipient shall maintain records as necessary to allow the PAEDC to audit in compliance with this Agreement and the representations and warranties contained herein and in Incentive Recipient's application. 13. Incentive Recipient shall give the PAEDC, or any of its duly authorized representatives, access to and right to examine all books, accounts, records, reports, files and other papers, things or property belonging to or in use by Incentive Recipient pertaining to this Agreement. Such rights to access shall continue as long as the records are maintained by Incentive Recipient. Incentive Recipient agrees to maintain such records in and accessible location. Driver's license information is appropriate for interim reporting of Port Arthur residents hired. The reporting objective is to include documentation necessary for PAEDC to verify Incentive Recipient's reports without further outside inquiry. Is 14.All records pertinent to this Agreement shall be retained by Incentive Recipient at least three (3) years following the date of termination of this Agreement, whether said termination is a result of default or whether said termination is a result of final submission of a close out report by Incentive Recipient detailing Incentive Recipient's compliance with its obligations provided herein. Further, in the event any litigation, claim or audit arising out of or related to this Agreement is instituted before the expiration of the three (3) year period and extends beyond the tree (3) year period, the records will be maintained until all litigation, claims, or audit fmdings involving this Agreement and the records made the basis of same has been resolved. 15. Upon written request, Incentive Recipient shall provide PAEDC with all reports reasonably necessary for PAEDC to comply with the Development Corporation Act. 16. It is expressly understood and agreed by the parties hereto that if Incentive Recipient fails to submit to PAEDC in a timely and satisfactory manner any report required by this Agreement, PAEDC, may at its sole discretion, demand assurances that Incentive Recipient can and will fully perform its Contractual obligations. If Incentive Recipient fails to provide adequate assurances in ten (10) business days then Incentive Recipient is in breach and PAEDC is not obligated to reimburse Incentive Recipient for expenses incurred for infrastructure improvements. 17. The PAEDC reserves the right, from time to time, to carry out field inspections/audits to ensure compliance with the requirements of this Agreement. After completion of any such audit, the PAEDC, at its option, may provide Incentive Recipient with a written report of the audit findings. If the audit report details deficiencies in Incentive Recipient performance under the terms and conditions of this Agreement, the PAEDC may establish requirements for the timely correction of any such deficiencies by Incentive Recipient. HOLD HARMLESS 18. INCENTIVE RECIPIENT SHALL INDEMNIFY, DEFEND AND HOLD THE PAEDC AND THE CITY(TOGETHER THE"INDEMNIFIED PARTIES")HARMLESS FROM ALL INJURIES, CLAIMS, LIABILITIES, COSTS OR DAMAGES (INCLUDING COURT COSTS AND REASONABLE ATTORNEY'S FEES) SUSTAINED BY OR THREATENED AGAINST ANY OF THE INDEMNIFIED PARTIES FOR INJURY OR DEATH TO PERSONS OR PHYSICAL DAMAGE TO PROPERTY ARISING OUT OR RELATING TO THE PERFORMANCE BY INCENTIVE RECIPIENT OF ITS OBLIGATION UNDER THIS AGREEMENT. SUBCONTRACTORS 19. Incentive Recipient may subcontract obligations under this Agreement; however, Incentive Recipient, in subcontracting for any performances described in this Agreement, 16 expressly understands that PAEDC is in no way liable to Incentive Recipient's subcontractor(s). 20. Incentive Recipient is responsible for performances, as if such performances rendered were rendered by Incentive Recipient. PAEDC maintains any right of action which may exist or which may be subsequently accrue to PAEDC under this Agreement. 21. Incentive Recipient, as well as all of its subcontractors, shall comply with all applicable federal, state, and local laws, regulations, and ordinances relating to the operations and activities of the redevelop of the Building. CONFLICT OF INTEREST/DISCLOSURE OBLIGATION 22. Conflict of Interest: No employee, agent, officer or elected or appointed official of the City of Port Arthur or the PAEDC who has participated in a decision making process related to this Agreement (without recusing him/herself and executing a conflict affidavit) may obtain a personal or financial interest or benefit from an PAEDC assisted activity, or have an interest in any Agreement , subcontractors , or agreement (or proceeds thereof) with respect to an PAEDC assisted activity, during their tenure or for one (1) year thereafter. Incentive Recipient shall ensure compliance with applicable provisions of the Act and Chapter 171, Local Government Code. 23. Disclosure: In conjunction with execution of this Agreement, Incentive Recipient has fully disclosed to PAEDC all known and potential owners of interests in Incentive Recipient and its general partner (whether stockholder, manager, member or otherwise). In the event of any change in ownership or control of Incentive Recipient of five percent (5 %) or greater, Incentive Recipient shall notify PAEDC in writing. Further, Incentive Recipient shall be obligated to notify in writing the PAEDC in the event any time prior to, during or one (1)year after the term of this Agreement, any City or PAEDC employee or representative or any third party with a conflict of interest obtains or proposes to obtain a financial benefit, direct or indirect, from Incentive Recipient or its general partner. Failure to provide said notice immediately or no later than five (5)business days after receipt of information shall constitute a default herein. NONDISCRIMINATION/EMPLOYMENT/REPORTING 24. Incentive Recipient shall ensure that no person shall on the grounds of race, color, religion, sex, handicap, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any construction activity. Additionally: a. To the greatest extent feasible, opportunities for training and employment arising in connection with the redevelop of the Building will be given to Port Arthur residents; 17 b. To the greatest extent feasible, Agreement s for work to be performed in connection with the construction of the Building will be awarded first to Port Arthur residents and businesses, then to the residents and businesses of the nine- county Southeast Texas Region; and c. If Incentive Recipient advertises for workers in any media then it will advertise in the"Port Arthur News." LEGAL AUTHORITY 25. Incentive Recipient assures and guarantees that Incentive Recipient possesses legal and/or corporate authority to enter into this Agreement, and to perform the services Incentive Recipient has obligated to perform hereunder and has provided, and will in the future provide, as requested by the PAEDC, such corporate resolutions necessary to evidence this authority. 26. The person or persons signing and executing this Agreement on behalf of Incentive Recipient, or representing themselves as signing and executing this Agreement on behalf of Incentive Recipient, do hereby warrant and guarantee that he, she or they have been duly authorized by Incentive Recipient to execute this Agreement on behalf of Incentive Recipient and to validly and legally bind Incentive Recipient to all terms, performances, and provisions herein set forth. NOTICE OF LEGAL OR REGULATORY CLAIMS AGAINST INCENTIVE RECIPIENT. 27. Incentive Recipient shall give PAEDC immediate notice in writing of 1) any legal or regulatory action, including any proceeding before an administrative agency filed against Incentive Recipient, directly or indirectly; and 2) any material claim against Incentive Recipient or its general partner, which may impact continued operations. For purposes herein, "material" claims shall mean claims in excess of$15,000. Except as otherwise directed by PAEDC, Incentive Recipient shall furnish immediately to PAEDC copies of all pertinent documentation of any kind received by Incentive Recipient with respect to such action or claim. CHANGES AND AMENDMENTS 28. Except as specifically provided otherwise in this Agreement, any alterations, additions, or deletions to the terms of this Agreement shall be by amendment in writing and executed by all parties to this Agreement. 29. It is understood and agreed by the parties hereto that performances under this Agreement must be rendered in accordance with the Act, the regulations promulgated under the Act, the assurances and certifications made to PAEDC by Incentive Recipient, and the assurances and certifications made to the City of Port Arthur with regard to the construction of the infrastructure improvements. Based on these considerations, and in order to ensure the legal and effective performance of this Agreement by all parties, it is 18 agreed by the parties hereto that the performances under this Agreement may be amended in the following manner: PAEDC may from time to time during the period of performance of this Agreement issue policy directives which serve to establish interpret or clarify performance requirements under this Agreement consistent with the intent of the parties. Such policy directives shall be promulgated by the PAEDC Board of Directors in the form of PAEDC issuances shall be approved by the City Council and shall have the effect of qualifying the terms of this Agreement and shall be binding upon Incentive Recipient, as if written herein. 30.Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in federal, state, or local law are automatically incorporated into this Agreement without written amendment hereto, and shall become effective on the date designated by such law or regulation. Incentive Recipient agrees to comply with all federal, state, and local laws whether existing or hereinafter enacted. DEFAULT/TERMINATION 31. In the event of default of any of the obligations of Incentive Recipient detailed herein or in the event of breach of any of the representations of or warranties of Incentive Recipient either detailed herein or in Incentive Recipient's application to the PAEDC, the PAEDC may, at its sole and exclusive option and remedy, terminate this Agreement, in whole or in part. In the event of such termination, but subject to the provisions hereof, in addition to (i) any other remedies available to the PAEDC as provided by the laws of the State of Texas or (ii) any other remedies available to the PAEDC as provided herein, the PAEDC may, at its sole option: a. Withhold and/or disallow further PAEDC grant payments or incentives to Incentive Recipient, including funds to be advanced to Incentive Recipient hereunder. 32. In addition to the foregoing, the parties agree that this Agreement may be terminated at any time when both parties agree, in writing, to the terms and conditions of any such voluntary termination. INCENTIVE RECIPIENT AUDITS 33. If directed by the PAEDC Board, Incentive Recipient shall arrange for a compliance audit by a certified public accountant to verify performances reported under this Agreement. 34. Incentive Recipient shall take all necessary actions to facilitate the performance of any and all such audits, whether annual, mandatory, or otherwise requested under this Agreement. I 35. Subject to financial privacy requirements of Incentive Recipient and properly designated requests for non-disclosure due to proprietary reasons, all approved audit reports may be made available for public disclosure to the extent required by the Public Information Act. ENVIRONMENTAL CLEARANCE REQUIREMENTS 36. Incentive Recipient understands and agrees that by execution of this Agreement, Incentive Recipient shall be responsible for making all reasonable efforts in providing to PAEDC all information, concerning this PAEDC funded project, required for PAEDC to meet its responsibilities for environmental review, decision making, and other action which applies to PAEDC in accordance with and to the extent specified in federal, state, and local law. Incentive Recipient further understands and agrees that Incentive Recipient shall make all reasonable efforts to assist PAEDC in handling inquiries and complaints from persons and agencies seeking redress in relation to environmental reviews covered by approved certifications. ORAL AND WRITTEN CONTRACTS/PRIOR AGREEMENTS 37. All oral and written contracts between the parties to this Agreement relating to the subject matter of this Agreement that were made prior to the execution of this Contract have been reduced to writing and are contained in this Contract. 38. The documents listed below are hereby made a part of this Agreement for all purposes, and constitute promised performances by Incentive Recipient and/or PAEDC, as the case may be, in accordance with this Agreement: a. Exhibit"A"Findings of Fact for Infrastructure Improvements b. Exhibit "B" PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas Grant Application for PAEDC for funding c. Exhibit"C"Performance Milestones d. Exhibit"D" Certification Regarding Lobbying e. Exhibit"E"Compliance Statement f. Exhibit"F"Letter of Credit VENUE 39. For purposes of litigation that may accrue under this Agreement, venue shall lie in Jefferson County, Texas where substantially all the performance will occur. ADDRESS OF NOTICE AND COMMUNICATIONS Port Arthur Economic Development Corporation 501 Procter Street Port Arthur, Texas 77640 ATTN: Chief Executive Officer 10 PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas. Sandra Richardson 6770 9th Avenue Port Arthur, Texas 77642. CAPTIONS 40. This Agreement has been supplied with captions to serve only as a guide to the contents. The captions do not control the meaning of any paragraph or in any way determine its interpretation or application. COMPLIANCE WITH FEDERAL,STATE AND LOCAL LAWS 41. Incentive Recipient shall comply with all federal, state, and local laws, statutes, ordinances, resolutions, rules, regulations, orders and decrees of any court or administrative body or tribunal related to Incentive Recipient's performance under this Agreement. Upon request by PAEDC or by the City of Port Arthur, Incentive Recipient shall furnish reasonable satisfactory proof of its compliance herewith including execution of the Certification Regarding Lobbying attached hereto as Exhibit "D" and the Compliance Statement attached hereto as Exhibit"E". ASSIGNMENT 42. This Agreement may not be assigned by Incentive Recipient to another entity unless and until the PAEDC,by the action of the PAEDC Board, approves the assignment. SUPPLEMENTAL COVENANT 43. Incentive Recipient and any branch, division or department of Incentive Recipient certifies that they have not and will not knowingly employ an "undocumented worker" which means "an individual who, at the time of employment, is not lawfully admitted for permanent residence to the United States or authorized under law to be employed in that manner in the United States." 44. Incentive Recipient acknowledges that it has reviewed Chapter 2264, Texas Government Code and hereby affirmatively agrees by execution of this Agreement to repay the amount of any incentive with interest at the rate of ten (10%) percent per annum not later than the 120th day after the date PAEDC notifies Incentive Recipient of a violation. 45. Incentive Recipient acknowledges PAEDC may bring a civil action or cover any amounts owed under this Chapter and further acknowledges that PAEDC may recover court costs and reasonable attorneys' fees incurred in an action brought under §2264.101(a). Incentive Recipient is not liable for a violation of this Chapter by a subsidiary, affiliate or franchisee of the Incentive Recipient or by a person with whom the Incentive Recipient contracts. III ATTORNEY APPROVALS APPROVED AS TO FORM: Guy Goodson, General Counsel for PAEDC VERIFIED AS CONSISTANT WITH CITY COUNCIL RESOLUTION: Resolution Number : Roxann Pais Cotroneo, City Attorney �12 CONTRACT EXECUTION PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION SIGNED AND AGREED TO on the day of ,2026. By: By: President Secretary Witness Witness 113 PARC ENTERPRISES,INC. DB/A SCRIPT CARE PHARMACY OF TEXAS SIGNED AND AGREED TO on the day of , 2026. By: Witness 114 EXHIBIT "A" FINDINGS OF FACT FOR INFRASTRUCTURE IMPROVEMENTS Facts: • PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas has requested an incentive agreement from the PAEDC for infrastructure improvements for the construction of a of 5,710 square-foot Shopping Center with concrete parking, driveways, and all utilities required for the developed site. • PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas wants to make infrastructure improvements in order to make it more accommodating for consumers visiting the Property. Findings: • The PAEDC Board of Directors has found that constructing infrastructure improvements at 6770 9th Ave. in Port Arthur, Texas would lead to the development of new and expanded business enterprises in the City of Port Arthur. • The construction of a new metal building with concrete parking, driveways, and all utilities required for the developed site is anticipated to increase sales tax revenues for the City of Port Arthur and add to the City ad valorem tax base. its EXHIBIT "B" PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas Grant Application 116 P F u 501 Procter St. Ste. 100 Port Arthur.TX -'640 409.963.05-9 PHASE I - ECONOMIC INCENTIVE APPLICATION Date:_April 18, 2026 NAICS CODE:_621399 Name of Entity : Parc Enterprises Inc CONTACT: Dr. Sandra Richardson ADDRESS: 6770 9th Avenue CITY : Port Arthur STATE :TEXAS ZIP :77642 PHONE: (409) EMAIL: BUSINESS STRUCTURE: x CORP. LLC PARTNERSHIP SOLE PROPRIETORSHIP_x_HUB/MWBE NON-PROFIT BUSINESS TYPE: INDUSTRIAL/MANUFACTURING RECYCLING DISTRIBUTION SMALL- WARHOUSE_x_COMMERCIAL OTHER (SPECIFY) DATE BUSINESS ESTABLISHED 2000 DATE BUSINESS INCORPORATED 2004 PRESENT#OF EMPLOYEES OR TOTAL #OF EMPLOYEES AFTER INCENTIVE OR TOTAL PAYROLL 2 PAYROLL_14 JOB WAGE # OF JOB WAGE SCALE #OF CLASSIFICATION SCALE EMPLOYEES CLASSIFICATION EMPLOYEES PHARMACIST 75/HR 1 NURSE 70/HR 4 PRACTITICER PHARMACY 28/HR 1 CNA 15/HR 3 TECH OFFICE CLERK 17/HR 2 PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION LAST REVISED:10108/2025 r 1) 11 *\I11It i 501 Procter St. Ste. 100 Port Arthur.TX 7640 409.963.0579 #OF WAGE #OF EMPLOYEES SCALE EMPLOYEES AFTER INCENTIVE TEACHERS 45/HR 5 OWNERSHIP OF APPLICANT COMPANY: Owners with Five (5%) Percent or Greater Ownership of the Company NAME TITLE %OF OWNERSHIP Dr. Sandra Richardson CEO 100 OTHER SOURCES OF FUNDS AND/OR EQUITY: List all request and/or approvals of funds from other sources (e.g. banks, credit unions, govt. entities, etc ) together with dates of application, status and funding source contract party names: Simmons Bank Orlando Saldana December 2024 PNC Bank Bradley Collins February 2025 FINANCE AMERICA MIKE TEHSENSKY March 2024 AMOUNT SOURCE OF FUNDS Land $ Finance of America Bldg./Renovation $ Simmons Bank Infrastructure / $ PNC Bank Dentention Pond $ PNC Bank Equipment $ Finance of America Furniture/Fixture $ Finance of America Total $ 2 PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION LAST REVISED:10108/2025 1 J 1 I!..n1'.'"i 1 ILI 1# I 1.”11.11.0111111. 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I HO II.I 111,1 I LEFT SIDE ELEVATION SCALE: 1/4" =1'-0" C-2.I EXHIBIT "C" PERFORMANCE MILESTONE SCHEDULE PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas DATE MILESTONE Review approved infrastructure plans by the City of Port Arthur (a) October 1,2026 and projected costs with PAEDC for the construction of the project at 6770 9th Ave., Port Arthur, Texas (b) November 1,2026 PARC will issue a status report to PAEDC on Project construction at 6770 9th Ave.,Port Arthur, Texas PARC will provide evidence of completion of the qualifying (c) December 31,2026 infrastructure improvements. PAEDC will issue 30%of Economic Incentive Grant with proof of Letter of Credit from Financial Institution on file. (d) February 28, 2027 PARC will issue a status report to PAEDC on Project construction at 6770 9th Ave.,Port Arthur, Texas PARC will obtain Certificate of Occupancy for the first retail (e) April 30,2027 space and provide a copy to the PAEDC. PAEDC will issue 35%of Economic Incentive Grant with proof of Letter of Credit from Financial Institution on file. (f) June 15,2027 PARC will issue a status report to PAEDC on remaining project construction at 6770 9th Ave., Port Arthur,Texas PARC will obtain Certificate of Occupancy for the second retail (g) July 31, 2027 space and provide a copy to the PAEDC. PAEDC will issue the remaining 35%of Economic Incentive Grant (1)) August 31, 2027 PARC meets all of their contractual agreement. File is closed. (i) August 31, 2027 PAEDC Board of Directors release Letter of Credit to PARC 4 117 EXHIBIT "D" CERTIFICATION REGARDING LOBBYING For Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies,to the best of his knowledge and belief,that: 1. No funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of the City or of the PAEDC in connection with the awarding of any contract, the making of any grant, the making of any loan, the entering into of any cooperative agreement, or modification of any contract, grant, loan, or cooperative agreement. 2 The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub- grants, and contracts under grants, loans, and cooperative agreements), and that all Subs shall certify and disclose accordingly. This certification is material representation of fact which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction. PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas Date: By: 118 EXHIBIT "E" COMPLIANCE STATEMENT PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas hereby certifies that it has fully complied with Local Government Code §176.006, as amended, which mandates the disclosure requirements for persons who contract or seek to contract with a local governmental entity. PARC Enterprises, Inc. d/b/a Script Care Pharmacy of Texas Date: By: 119 EXHIBIT "F" LETTER OF CREDIT I20