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HomeMy WebLinkAboutP.R. 16850: INCENTIVE CONTRACT & LOAN AGREEMENT WITH J.Z. RUSSELL INDUSTRIES, INC. . ,R l Interoffice , MEMORANDUM To: Mayor, City Council, City Manager From: Floyd Batiste, CEO Date: January 12, 2012 Subject: P. R. No16850; Council Meeting on January 24, 2012 Attached is P. R. No. 16850 requesting the City Council to approve an Incentive Contract & Loan Agreement between J.Z. Russell Industries Inc. and the City of Port Arthur Section 4A Economic Development Corporation 12JAN181117 Mi LEGAL P. R. No. 16850 1/11/2012 BV RESOLUTION NO. A RESOLUTION APPROVING AN ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN J.Z. RUSSELL INDUSTRIES, 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 Section 4A Economic Development Corporation (the "PAEDC ") to enter into an Economic Incentive Contract & Loan Agreement (the "Agreement") with J. Z. Russell Industries, Inc. ( "JZR "); and WHEREAS, Germer Getz, L.L.P. has indicated that JZR has presented an application qualifying as a Section 4A project as set forth in the Executive Summary of the Agreement; and WHEREAS, the PAEDC has reviewed the JZR application and accompanying financial statements presented by JZR and recommends approval thereof; and WHEREAS, JZR has acquired two (2) acres in the Spur 93 Business Park to relocate its business operations in the City of Port Arthur; and WHEREAS, JZR has secured financing for the purchase of its property and improvements to be constructed in the Spur 93 Business Park; and WHEREAS, the PAEDC incentive is $447,496.00 for the purchase of equipment and to reimburse JZR for equipment previously purchased for its business operations which equipment shall be relocated to the Spur 93 Business Park; and WHEREAS, JZR shall increase its staff by December 31, 2014, to employ 47 Port Arthur residents with an annual total payroll of not less than $2,803,160; and WHEREAS, JZR shall grant the PAEDC a security interest in the equipment to be located in the Spur 93 Business Park as security for its Conditional Loan; and WHEREAS, JZR has reviewed and approved the Agreement. 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 JZR, and the President and Secretary of the PAEDC are authorized to sign the Agreement in substantially the same form attached hereto as Exhibit "A ". 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 #896007 Page 2 ATTEST: Sherri Bellard, City Secretary APPROVED: Floyd Batiste, PAEDC CEO APPROVED S TO FORM: fe Guy N. Goodson, PAEDC Attorney APPROVED AS TO FORM: CA In G chid , Se a. Hac e I C 1 ' 2 -Mr° Valecia R. Tizeno, City Attorney #896007 Page 3