HomeMy WebLinkAboutP.R. 16776: INCENTIVE CONTRACT & LOAN AGREEMENT WITH HERNANDEZ & SOLIS, INC. RUEIVED
Interoffice 2011 JAN 20 Fil I: 19
MEMORANDUM
To: Mayor, City Council, C'
a er
Y tY �_
From: Floyd Batiste, CEO
Date: January 12, 2012
Subject: P. R. No16776; Council Meeting on January 24, 2012
Attached is P. R. No. 16776 requesting the City Council to
approve an Incentive Contract & Loan Agreement between
Hernandez & Solis, Inc. and the City of Port Arthur Section
4A Economic Development Corporation
'12M-118111841 LEGAL
P. R. No. 16776
1/10/2012 BV
RESOLUTION NO.
A RESOLUTION APPROVING AN ECONOMIC INCENTIVE
CONTRACT & LOAN AGREEMENT BETWEEN
HERNANDEZ & SOLIS, INC AND THE CITY OF PORT
ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION
WHEREAS, the City Council deems it in the public interest to authorize the City of Port
Arthur 4A Economic Development Corporation (the "PAEDC ") to enter into an Economic
Incentive Contract & Loan Agreement with Hernandez & Solis, Inc (the "Agreement ") attached
as Exhibit "A "; and
WHEREAS, Germer Gertz, L.L.P. has indicated that Hernandez & Solis, Inc. has
presented an application qualifying as a Section 4A project as set forth in the Executive
Summary; and
WHEREAS, the PAEDC has reviewed the application and accompanying financial
statements of Hernandez & Solis, Inc. together with guarantors of its obligations to PAEDC and
recommends approval thereof; and
WHEREAS, the PAEDC will provide a loan and a conditional economic incentive
grant/loan for equipment and inventory; and
WHEREAS, Hernandez & Solis, Inc. will receive a conditional grant/loan in the amount
of $60,000 and a loan in the amount of $40,000; and
WHEREAS, Hernandez & Solis, Inc. shall increase its annual payroll to $180,375.00 by
- December 31, 2016, as measured by the Internal Revenue Service (IRS) W -2 and W -3 forms to
satisfy the performance milestones under the conditional grant/loan.
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 herein authorized to enter into the Agreement with
Hernandez & Solis, Inc. represented by a $60,000 conditional grant /loan and a $40,000 loan.
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., 2012 ,
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
#894765 Page 2
•
APPROVED:
Flo Batiste, PAEDC CEO
APPROV 1
,1 AS TO FORM:
�
Guy N. Goodson, PAEDC Attorney
APPROVED AS : D A TO FORM
5e yd e �or�i�eh�ia
Valecia R. Tizeno, City Attorney
#894765 Page 3
EXHIBIT "A"
WILL BE PRESENTED AT THE COUNCIL MEETING