HomeMy WebLinkAbout(02) PR:13264 ABRAHAM MANF. P.R. No. 13264
1/12/06 jb
RESOLUTION NO.
A RESOLUTION APPROVING THE MATERIAL TERMS
OF AN ECONOMIC INCENTIVE AGREEMENT BETWEEN
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION AND ABRAHAM
MANUFACTURING, INC.
WHEREAS, the City of Po~t Arthur Section 4A Economic Development Corporation has
approved the material terms of an economic incentive agreement with Abraham Manufacturing, Inc.,
as described in Exhibit "A"; and
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation hereby
requests that the City Council approves the material terms of an economic incentive agreement with
Abraham Manufacturing, Inc.
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 ~rue and correct.
Section 2. That the material terms of the economic incentive agreement with Abraham
Manufacturing, Inc., as described in Exhibit "A" are herein approved.
Section 3. That a final contract, once approved by the City of Port Arthur Section 4A
Economic Development Corporation Board of Directors, must be presented to and approved by the
City Council.
.Section 4. 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. 2006, at a
Special Meeting of the City Council of the City of Port Arthur, Texas by the following vote:
AYES: Mayor
City Council
PR13264
NOES:
OSCAR ORTIZ, MAYOR
ATTEST:
EVANGELINE GREEN, CITY SECRETARY
APPROVED AS TO FORM:
SEE CONFIDENTIAL MEMO
MARK T. SOKOLOW, CITY ATTORNEY
GERMER GERTZ, LLP
APPROVED FOR ADMINISTRATION:
STEPHEN FITZGIBBONS, CITY MANAGER
APPROVED AS TO THE AVAILABILITY OF FUNDS:
REBECCA UNDEKHILL, DIRECTOR OF FINANCE
APPROVED FOR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION:
FLOYD BATISTE, CEO
PRI3264
EXHIBIT "A"
PR13264
SUMMARY OF TERMS OF AN ECONOMIC INCENTWE AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORP.
AND ABRAHAM MANUFACTURING, 1NC.
INCENTIVE
A. Abraham Manufacturing, Inc. will receive a conditional grant from the City of Port Arthur
Section 4A Economic Development Corporation in the amount of $251,510 to purchase
equipment, as approved by thc EDC Board. Thc length of the grant will be five years. The
equipment list will be incorporated into the contract.
B. Abraham Manufacturing, Inc. will receive a loan in the amount of $100,000 for working
capital as approved by the EDC Board. The term of this loan will be for seven years at 4%
interest.
C. The EDC Board desires a first priority lien on the land and building that houses Abraham
Manufacturing, Inc. In order to achieve first priority, the EDC Board will pay offthe liens
on the land and building at the approximate cost of $199,000. This will be done in the form
of a loan to be repaid by Abraham Manufacturing, Inc. to the City of Port Arthur at a term of
seven years and 4% interest.
PROMISED PERFORMANCE
Abraham Manufacturing, Inc. promises to create 50 permanent, full time jobs within five
years, with an average hourly wage of $8.50 per hour. 50% of employees hired will be Port Arthur
residents. Abraham Manufacturing, Inc. will also install a dust collection system within seven
months.
REPORTING REQUIREMENTS
Abraham Manufacturing, Inc. will provide quarterly balance sheets, profit and loss statements
and quarterly employment reports starting after the third quarter of 2006 and for every quarter
thereafier for thc life of the grant (5 years). They will also provide W-3's for the life of the grant and
five years thereafter to ensure that the number of employees reaches the fifty promised for this grant
plus the 50 promised for the prior grant that Abraham Manufacturing, Inc. received from the PAEDC
in the past.
PR13264