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HomeMy WebLinkAboutPR 16736: APPROVING USE OF PROMOTIONAL FUNDS TO BE USED FOR THE REHABILITATION OF DOWNTOWN PAVILION TO PROMOTE NEW BUSINESS ENTERPRISE Interoffice MEMORANDUM To: Mayor, City Council, City Manager From: Floyd Batiste, CEO Date: October 13, 2011 Subject: P. R. No. 16736; Council Meeting of October 18, 2011 Attached is P. R. No. 16736 approving the use of $336,578.00 of promotional funds to be used for the rehabilitation of the Downtown Pavilion to promote new business enterprise. P.R. No. 16736 10/11/2011 CS RESOLUTION NO. A RESOLUTION APPROVING THE USE OF $336,578.00 OF PROMOTIONAL FUNDS TO BE USED FOR THE REHABILITATION OF THE DOWNTOWN PAVILION TO PROMOTE NEW BUSINESS ENTERPRISE WHEREAS, Section 4A(b)(1) of the Development Corporation Act limits Section 4A corporations to spend no more than 10% of their corporate revenues (Section 4A tax proceeds) for promotional purposes. The Development Corporation Act generally requires a Section 4A development corporation to use sales tax revenues "for the promotion and development of new and expanded businesses." Thus, a promotional expenditure under Section 4A(b)(1) must advertise or publicize the City for the purpose of developing new or expanded business enterprises. Authorized uses include economic development projects (such as land, equipment, facilities and infrastructure) as set forth in Section 2(4) and (11)(a) of the Development Corporation Act; and WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation (the "PAEDC ") Board of Directors at its Special Board Meeting on October 10, 2011, approved spending $336,578.00 of its promotional budget for the rehabilitation of the Downtown Pavilion to promote new and expanded business enterprises in the City; and WHEREAS, the City has determined that the rehabilitation of the Downtown Pavilion will meet not only objectives sought in the Operation Downtown Ballot Proposition but will promote and advertise the City to potential business and industries through the cultural, musical and related events at the Downtown Pavilion and will promote continued revitalization of Downtown Port Arthur. s.pr16736 1 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 PAEDC is hereby authorized to allocate $336,578.00 from its Promotional Programs Account number 120- 1429 -582 -59.06 for the rehabilitation of the Downtown Pavilion, via an adjustment to its FY2012 budget. Section 3. That a copy of this Resolution shall 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: Mayor , Councilmembers , NOES: Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary #874456 Page 2 APPROVED: Floyd Batiste, PAEDC CEO APPROV AS TO FORM: y N. Goodson, PAEDC Attorney APPROVED AS TO FORM: Valecia R. Tizeno, City Attorney #874456 Page 3 APPROVED AS TO FORM: City Attu. ney J a 1