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MEMORANDUM
To: Mayor, City Council, City Manager /~ ~
From: Jana M. Barnes, Administrative Assista~ TM
Date: October 21, 2004 . . ~)~
Subject: P.R. No. 13306; Council Meeting of October 25, 2005
Attached is P. R. No. 13306 approving an economic incentive
agreement with Pleasure Island Shrimp House, Inc. This agreement was
previously approved by the EDC board. The contract (Exhibit "A") will be
presented at the council meeting.
Attachment
pr13306.memo
P.R. No. 13306
10/21/05 Jb
RESOLUTION NO.
A RESOLUTION APPROVING AN ECONOMIC
INCENTIVE CONTRACT AND LOAN AGREEMENT
BE~I'wEEN PLEASURE ISLAND SHRIMP HOUSE, INC.
AND THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, Pleasure Island Shrimp House, Inc. is a business on Pleasure
Island that processes and packages shrimp for distribution; and,
WHEREAS, Pleasure Island Shrimp House, Inc. will expand and upgrade its'
processing plant at its existing location; and,
WHEREAS, as a result of its planned upgrade and expansion, Pleasure
Island Shrimp House, Inc. will increase its annual payroll from $492,000 in 2004 to
at least $1,542,000 in 2007; and
WHEREAS, the City of Port Arthur Section 4A Economic Development
Corporation has funds derived from sales tax revenue that may be utilized for
economic development projects as defmed under Article 5190.6 V.T.C.A.; and
WHEREAS, Pleasure Island Shrimp House Inc.. is requesting a grant in the
amount of $500,000 and a loan in the amount of $250,000 to purchase equipment
and to refurbish and upgrade the company's packing house and dock; and
WHEREAS, the City of Port Arthur Section 4A Economic Development
Corporation will secure its grant with a first priority lien on the equipment
purchased; and
WHEREAS, General Counsel for the City of Port Arthur Section 4A
Economic Development Corporation approves and recommends the terms and
conditions of the proposed contract between the City of Port Arthur Section 4A
Economic Development Corporation and Pleasure Island Shrimp House, Inc.; and
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WHEREAS, the Board of Directors of the City of Port Arthur Section 4A
Economic Development Corporation has approved this economic incentive
agreement.
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 President and Secretary of the Board of Directors of
the City of Port Arthur Section 4A Economic Development Corporation are herein
authorized to execute an Economic Incentive Agreement with Pleasure Island
Shrimp House, Inc. in substantially the same for as attached hereto as Exhibit 'A',
with an effective date no later than November 1. 2005.
Section 3. That Pleasure Island Shrimp House, Inc.. shall receive up to
$750,000 for expansion costs, with the understanding that it will be used
exclusively for expansion as described in the contract, and that the grant, minus
any credits earned per the contract provisions, will automatically become a loan
upon breach of contract by Pleasure Island Shrimp House, Inc.
Section 4. That Pleasure Island Shrimp House Inc.. shall receive credit
for $1 for every $6.30 in payroll; and
Section 5. That the recipient will sign a Commercial Security Agreement
and Landlord Agreement, as detailed in the contract.
Section 6. That a copy of the caption be spread upon the minutes of the
City Council.
READ, ADOPTED AND APPROVED on this __ day of , A.D.
2005, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by
the following vote:
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AYES: Mayor
City Council
NOES:
OSCAR 0RTIZ, MAYOR
ATTEST:
EVANGELINE GREEN, CITY SECRETARY
APPROVED AS TO FORM:
ER & GERT~, EDd A~'I~ORNEYS ~
APPROVED FOR ADMINISTRATION:
STEPHEN FITZGIBBONS, CITY MANAGER
APPROVED AS TO THE AV,~,IIABILITY OF FUNDS:
REBECCA UNDERHILL, DIRECTOR OF FINANCE
APPROVED FOR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION:
KERRY THOMAS, VICE PRESIDENT
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EXHIBIT "A"
WILL BE PRESENTED AT COUNCIL MEETING
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