HomeMy WebLinkAboutPR 13415: GP INDUSTRIALInteroffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark T. Sokolow, City Attorney ~ ~'~Z~--'~
Date: February 3, 2006
Subject: P. R. No. 13415; Joint EDC/Special Council Meeting
February 7, 2006
Attached is P. R. No. 13415 authorizing the President
and Secretary of the EDC to execute an amendment to the incentive
agreement between the EDC and GP Industrial Contractors, Inc.
MTS/gt
Attachment
cc: VIA FACSIMILE (409) 962-4445
Floyd Batiste, CEO of EDC
VIA FACSIMILE (409) 835-2115
Kate McGlynn, GERMER GERTZ
z.pr13414 .memo
P. R. No. 13415
02/02/06 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE PRESIDENT AND
SECRETARY OF THE CITY OF PORT ARTHUR SECTION
4A ECONOI~IC DEVELOPMENT CORPORATION TO EXECUTE
AN AMENDMENT TO THE INCENTIVE AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION AND GP
INDUSTRIAL CONTRACTORS, INC.
WHEREAS, as noted in Exhibit "A", the Board of Directors of
the City of Port Arthur Section 4A Economic Development Corporation
has approved an amendment to the incentive agreement to be entered
into with GP Industrial Contractors, Inc.; and
WHEREAS, the original incentive agreement was approved by
Resolution No. 05-199.
WHEREAS, a letter has been provided by Germer Gertz as noted
in Exhibit "A" that they have approved the amendment to the
agreement as to legality; and
WHEREAS, pursuant to Section 8.19 of the bylaws, the City of
Port Arthur Section 4A Economic Development Corporation is
submitting this project for approval.
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.
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Section 2. That the City of Port Arthur herein approves
the amendment to the incentive agreement as noted in Exhibit "B"
and herein authorizes the President and Secretary of the City of
Port Arthur Section 4A Economic Development Corporation to
execute the amendment to the agreement in substantially the same
form as attached hereto as Exhibit "B".
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., 2006, at a Meeting of the City Council of
the City of Port Arthur, Texas, by the following vote: AYES:
Mayor '
Councilmembers '
;
NOES:
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MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
z.pr13415
EXHIBIT "A"
T T O R N E Y ~A T L A W
A
KATHLEEN
A.
McGLYNN
ASSOCIATE
February 3, 2006
I/ia Facsimile No. 1.409-962-4445
Mr. Floyd Batiste
Chief Executive Officer
City of Port Arthur EDC
P.O. Box 3934
Port Arthur, Texas 77642
Re: GP Industrial Contractors, Inc.; GG File//56257
Dear Mr. Batiste:
Attached is an amendment to the Economic Incentive Contract and Loan Agreement
between the City of Port Arthur Section 4A Economic Development Corporation ("PAEDC')
and GP Industrial Contractors, Inc. The amendment was approved by the PAEDC Board of
Directors on February 1, 2006, by a five to zero vote. The amendment has been approved by
Germer Gertz, L.L.P. as to its legality.
Sincerely,
GERMER GERTZ, L.L.P.
Khthleen X. McGlyn~
KAM/Ir
cc: Jana Barnes
Guy N. Goodson (in thefirm)
P.O. BOX 491,5 · BEAUMONT, TX 77704 · PHONE: 409.654.6700 · FAX: 409.835.2115
EXHIBIT "B"
AMMENDMENT TO
ECONOMIC INCENTIVE CONTRACT & LOAN AGREEMENT
BE"FVVEEN
THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
AND
GP INDUSTRIAL CONTRACTORS, INC.
WHEREAS, GP Industrial Contractors, Inc. ("GP") and the City of Port Arthur
Section 4A Economic Development Corporation ("PAEDC") entered into an
Incentive Contract and Loan Agreement (the "Agreement") on July 13, 2005;
WHEREAS, GP was granted $200,000 exclusively for the equipment on the list
contained in Exhibit "B" of the Agreement;
WHEREAS, GP has purchased a manipulator that was not on the equipment list
incorporated by reference into the contract for $6,337.27;
WHEREAS, GP could purchase this additional piece of equipment without
exceeding the $200,000 approved grant; and
WHEREAS, PAEDC wants a proportionate increase in promised performance.
NOW, therefore, the parties hereto agree as follows:
(1)PAEDC approves adding a manipulator to the approved list of
equipment, so long as the total expended on all of the equipment does
not cause GP to exceed the $200,000 approved grant;
(2) In consideration, GP will increase the payroll promised by $45,530,
bringing the total payroll obligation to from $1,500,000 to $1,545,530;
and
(3) Breach of this Amendment is a breach of the underlying Agreement.
EXECUTION
SIGNED AND AGREED TO on the day of ,2006.
CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT
CORPORATION
By:
President
Print Name
Witness
By:
Secretary
Print Name
Witness
SIGNED AND AGREED TO on the __ day of ,2006.
GP INDUSTRIAL CONTRACTORS, INC.
By:.
Roosevelt Petty, Jr., President & CEO
Witness
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