HomeMy WebLinkAboutPR 16512: TERMINATING EDC LOAN AGREEMENT WITH TRIANGLE WASTE P. R. No. 16512
June 17, 2011
RESOLUTION NO.
A RESOLUTION TERMINATING THE ECONOMIC
INCENTIVE CONTRACT AND LOAN AGREEMENT
BETWEEN TRIANGLE WASTE SOLUTIONS, LLC AND THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION
WHEREAS, on July 17, 2007, the City Council of the City of Port Arthur approved
Resolution No. 07 -344 authorizing an Economic Incentive Contract and Loan Agreement (the
"Agreement") between Triangle Waste Solutions, LLC ( "Triangle ") and the City of Port Arthur
Section 4A Economic Development Corporation (the "PAEDC "); and
WHEREAS, on November 13, 2008, the City Council of the City of Port Arthur approved.
Resolution No. 08 -455 approving the First Amendment to the Agreement to revise performance
milestone schedules; and
WHEREAS, on March 2, 2010, the City Council of the City of Port Arthur approved
Resolution No. 10 -090 approving the Second Amendment to the Agreement to revise promised
performance by Triangle and to further revise the performance milestone schedule; and
WHEREAS, Triangle has proceeded through a corporate reorganization, and the business
plan of Triangle will not provide for the development of a facility on the 10 -acre parcel of land in the
PAEDC Business Park (the "Property ") in compliance with the performance milestone schedule of
the amended Agreement as provided in the Third Amendment to the Agreement; and
WHEREAS, Triangle has notified the PAEDC of its inability to meet its performance
milestones and has requested to terminate its contractual obligations with the PAEDC.
WHEREAS, Triangle agrees to terminate subject to the following conditions:
(i) Triangle will re- convey the Property to PAEDC by executing a Special Warranty
Deed on the property to PAEDC;
(ii) Triangle assumes all closing cost and attorney fees associated with the conveyance of
the Property to PAEDC; and
WHEREAS, PAEDC concurrently has agreed to terminate the contractual obligations under
the Agreement as revised through the Third Amendment to the Agreement by:
(i) releasing the Deed of Trust lien on the Property;
(ii) releasing the security interest in the certificate of deposit of BBVA Compass Bank
(formerly Texas State Bank) as referenced in Exhibit "C" and "E" to the Agreement
(the "Certificate of Deposit');
(iii) PAEDC pays the original discounted sales price of $186,000 to Triangle; and
WHEREAS, on June 13, 2011, the Board of Directors of PAEDC voted to terminate its
contractual obligations with Triangle, thereby, concluding the Agreement with Triangle.
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 terminating the
contractual obligations between Triangle and PAEDC set forth in the Agreement as revised through
the Third Amendment to the Agreement. Upon conveyance of the Property by Triangle to PAEDC
in consideration of payment in the amount of $186,000 for the Property, PAEDC is authorized to
release the Deed of Trust lien on the Property and the Certificate of Deposit securing the contractual
performance under the Agreement.
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., 2011, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
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Mayor
Councilmembers
;
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, Acting City Secretary
APPROVED:
Floyd Batiste, PAEDC CEO
APPROVED AS TO FORM:
Guy N. Goodson, PA DC Attorney
,...-7 /./'
Valecia R. Ti-.-no, City Atto
0
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