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Home My WebLink AboutPR 13556: GP INDUSTRIAL CONT.Memo Mayor, City ~.~__un il, a ity M.an. ager From.' Floyd Batiste, nomic Development Corporation, CEO Date.- May 18, 2006 Re-' P.R. No. 13556 Attached is P.R. 13556 amending the incentive agreement between the City of Port Arthur Section 4A Economic Development Corporation and GP Industrial Contractors, Inc. FB:df Attachment cc: City Attorney VIA FACSIMILE (409) 835-2115 Ms. Kate McGlynn Attomey for EDC GERMER & GERTZ, LLP z,pr13556.rnemo Port Arthur Economic Development Corporation (PAEDC) Attn: Jana M. Barnes P.O. Box 1089 Port Arthur, Texas 77641-1059 M~ ~: P.O. B~x 847 est ~or Changes -Economic Incentive Contract ~uly 2005 Telephones: We honorable request an amendment to the contract documents to reflect the changes to the equipment list as a result of the need to install the approved BAld tO Trl~lKe lU.~ u.~st Ernai~: equipment , .~..,,~,-- fit,, for the Sub-arc components with our fabrication shop. GP incurred costs to install the major pieces of equipment. In order for the Web=~e: equipment to function properly and reach maximum production capabilities, floor support, electrical enhancements and rack construction was necessary. The installation costs were $30,448.47. Ai~er the major componems were in place, the need to support the sub-arc items was necessary and equipment and material related to the sub-arc package was obtained to insure maximum production for the layout. The addit/onal items purchased that were not included on the list within the original contract are CWI Manipulator/freight $6,337.27 Miller Wire Feed $2,174.00 Miller Feeder/Drive roll $1,204.67 Weld Flux Recovery Unit $1,652.45 30' Sub Arc Cffound Package $ 496.14 GP is not requesting any additional funding for the changes. We are grateful for this oppozlunity to work with the pAEDC to ~hanee the community of the City of Port Arthur and employ its citizens. Please let us know if we can assist you further. Sincerely, Pat C_millory -CFO GP Industrial Contractors, Inc. gP ... We are a Certified Minority Owned and Operated Company serving industry with pride and skill P.R. No. 13556 05/19/06 df RESOLUTION NO. A RESOLUTION AUTHORIZING THE PRESIDENT AND SECRETARY OF THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION TO EXECUTE ~ AMENDMENT TO THE INCENTIVE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION AND GP INDUSTRIAL CONTRACTORS, INC. WHEREAS, on June 17, 2005, the City Council approved, by Resolution No. 05-199, an economic incentive agreement between the City of Port Arthur Section 4A Economic Development Corporation and GP Industrial Contractors, Inc.; and WHEREAS, on February 7, 2006, the City Council approved, by Resolution No. 06-040, an amendment to the economic incentive agreement between the City of Port Arthur Section 4A Economic Development Corporation and GP Industrial Contractors, Inc., which provided for a manipulator to be added to the approved list of equipment, and a promise by GP Industrial Contractors, Inc. to increase the total payroll obligation from $1,500,000 to $1,545,530; and WHEREAS, GP Industr/al Contractors, Inc. has not agreed to the amendment as delineated in Resolution No. 06-040; and, WHEREAS, GP Industrial Contractors, Inc. has requested an amendment to the economic incentive agreement, as delineated in Exhibit "A' attached hereto, which gives GP Industrial Contractors, Inc. the flexibility to purchase the remaining equipment, as needed; and z.pr13556 IIFI-IEILEAS, GP Industrial Contractors, Inc. has already purchased the equipment, as noted in Exhibit "B' and WHEREAS, on May 3, 2006, the Board of Directors of the City of Port Arthur Section 4A Economic Development Corporation approved the new amendment to the incentive agreement attached hereto as Exhibit "A'; and WHEREAS, a letter has been provided by Germer 8; Gertz, attached hereto as Exhibit "C', approving the amendment to the agreement as to legality. 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. Section2. That the City of Port Arthur herein approves the amendment to the incentive agreement, 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 with GP Industrial Contractors, Inc., in substantially the same form as attached hereto as Exhibit Seetioa 3. That Resolution No. 06-040 is herein rescinded. Section 4. That a copy of the caption of the Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of , A.D. 2006, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor z.pr13556 City Council NOES: OSCAR ORTIZ, MAYOR ATT~T: EVANGELINE GREEN, CITY SECRETARY APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEPHEN FITZGIBBONS, CITY MANAGER APPROVED AS TO THE AVAILABILITY OF FUNDS: REBECCA UNDERHILL, DIRECTOR OF FINANCE z.pr13556 EXHIBIT "A" z.pr13556 AMENDMENT TO ECONOMIC INCENTIVE CONTRACT ~ LOAN AGREEMENT BETWEEN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION A~D 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; wl/EREA~, GP was ~ranted $200,000 exclusively for the equipment on the list contadned in Exhibit 'A" of the Agreement, which is incorporated into the Agreement by reference; WHERFAS, because of a cost savings on the equipment list (Exhibit "A") GP could purchase additional equipment without exceeding the $200,000 approved grant; and WHEREAS, Hurricane Rita damaged the roof on GP's building, delaying equipment procurement. NOW, therefore, the parties hereto agree as follows: (1.} PAEDC approves the purchase of additional unscheduled equipment as long as the total does not exceed the original grant amount of $200,000. {2.) PAEDC approves adding the cost to install the equipment listed in Exhibit "A' to those expenses that are reimbursable, as long as the total amount reimbursed does not exceed the original grant amount of $200,000. PAEDC approves the extension of time from February 1, 2006 until 11/31/06 for purchase of equipment. z.pr13556 Breach of this Amendment is a breach of the underlying Agreement. VERIFIED AS CONSISTANT WITH CITY COUNCIL RESOLUTION: Resolution Number: Mark T. Sokolow, City Attorney 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 Petry, Jr., President & CEO Witness z.pr13556 EXHIBIT "A" TO THE AMENDMENT EXItlBIT "A" GP INDUSTRIAL cONTRACTORS, INC. PAEDC FUNDING REQUEST FOR MACHINERY.& EQUIPMENT SCHEDULE Miller XMT-456 Weiding Machine 6 ~ &4246= $25,476.00 I I Miller Optima pulse control :2 6 949= $1,898.00 I I We'ldmark 150 Flex head fi9 torch 4 (~ 75.73= $302.92 I I I 24" Chuck lot positioner ~ 2753= $2,753.00 :not Control for posttioner 6313= $313.00 I ~ypedhem~ 1650 plasma system wilh machine and hand Iorch $4,945.00 I [ Evolution 14" Chop Saw 5000 lb turning roll power/idler I (~ 3455= $3,455.00 I I :not Control for Tumin~ rolls I 6313= $313.00 Rid~id Pipe Vise 2 6184= $368.00 Wilton Machinest viSe 2 (~ 450.99= $901.98 I Poder CalY, e 7bp 2-stacde air com~ ~ressor I 6973= $973.00 I I B&B V-head jack stand ¢0 6 46= $1,840.00 I I 'exeS Pneumatic 114-' HD air grinder $ ~} 70.24= $421.44 I CP 4' air ~lrinder 6 ~ 257.50= $! ,545.36 I I in~ersall Rand 9" angle grinder 6 ~ 708.06= $4,248.36 I I Lincoln DC §00 W/Multi process switch $3,639.00 I Lincoln NA-3S weld control $2,054.00 Lincoln NA-3S wire drive Lincoln horizontal cross slide I I Jncoln wire met assembiy $193. I I Inter c,o~ne~ing ~a~e 30' pa~a~8 $436.53 I I Sub Arc ~lreuoding package $489.64 I [180 De~lree wall bracket cantilever 2 @3950= $7,S00.00 b crane 17' 20' boomI Jet elec~dcal chain tmisl 1-toa 2 @2016= $4,032.00 I Jet Electric Trolly l-Ton 2 ~ 1812= $3,652.00 I I let 6 Button push control 10' 2 ~ 232= I $4c~>4.00 I I pil~e Roller with etectdc machine $75,000.00 I I Pipe & Labor to run a{r sup~¥ $3,00o.00 I Sub Arc Machine PIpe rack $3,000.00 ~-Cad stations $10,000.00 15-Ton C~ane/F~,~ $12,200.00 $5,000.00 ~0' Float $1,500.00 Fans {P.~er$ $1,500.00 EXHIBIT "B" z.pr13556 Po~t Arthur Econom/c Development Coq~omfion (PAl&DC) ~o. ~.0, ~OX J~ Telephon~ Po~ ~, Te~ 77641-t089 ~: S~s ~o~ -~no~c h~ve Co~ ~ ~cor~ce ~ o~ oberon ~e ~no~c h~ ~ i~ by ~on ~A~nC), ~e fo~o~8 is mbm~. · ~ t~ ~s ~e~ t~e ~pm~. lt~ ~ to ~p~ ~e ~c corem of~e ~ul~ ~pmem ~ ~1~ ~e F~ ~ Roll, ~ Weld ~ ~ Udt, ~ i~s p~k~ge~. We ~ ~ for ~ op~ty to work ~ th~ P~C to ~e ~e :F~ ~ ~i~ you Pat ~11o~ ~FO ~ ~fl Co~s, ~e ~t offi~s, ~t~s, ~old~s ~ ~s of GP ~ R~elt P~, Jr. (~d~) ~d P~ ~1o~ (C~/S~ff~ff~). gP ... We are a Certified Minority Owned and Operated Company serving industry with pride and skill EXHIBIT "C" z.pr13556 FP_},I :PAE[C F A)i HO. :962 4445 Ma~. 18 2006 09:41A71 F'9 ivlay 1.2, 2006 Mr, Flo;yd Batiste: Chief Executive Officer City of Port Arth'.:r EDC P.O, Box 3934 Port Arthur, Texas 77642 Dear Mr Batiste We have reviewed ~:h,~: at:ached amendment to the Economic Incentive Contract and Loan Agreemen'[ between (!re ...try of Port Arthur Section 4A Economic Development Corporation UPAEDC") and (}P Industrial Contractors, Inc. This amendment was approved by the PAEDC Board of Directors on May 3. 2006, and replaces the contract amendment approved by boot the PAI!['.,C Bo:l rd all~! City Council in February. 2006. TP.,e attached, amertdtneu:t i-.as beela approved by Germer Gertz, L.L.P as to its legality, Sincerely, GERMER GERTZ, L.L.P. By: ~ KAM/Ir Iana Bartles G'ly N ('J,oodsol:~ 'in ,¢,~c F,O !~C5:'( 49! 5 ' 5'",!" ?," )l-,r TX 7770-' · PHONE: 409.654.6700 · r-AX: 409.835.211:5