HomeMy WebLinkAboutPR 17641: CLOSING ECONOMIC INCENTIVE AGREEMENT BETWEEN EDC AND TEAM FABRICATORS L.L.C. Interoffice
MEMORANDUM
To: Mayor, City Council, Acting City Manager
From: Floyd Batiste, CEO
Date: April 5, 2013
Subject: P. R. No. 17641; Council Meeting on April 16, 2013
A RESOLUTION APPROVING CLOSING THE
ECONOMIC INCENTIVE CONTRACT AND LOAN
AGREEMENT BETWEEN TEAM FABRICATORS L.L.C.
AND THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
P. R. No. 17641
4/4/13 CS
RESOLUTION NO.
A RESOLUTION APPROVING CLOSING THE
ECONOMIC INCENTIVE CONTRACT AND LOAN
AGREEMENT BETWEEN TEAM FABRICATORS L.L.C.
AND THE CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, the City Council of the City of Port Arthur approved authorizing an
Economic Incentive Contract & Loan Agreement (the "Agreement ") between Team Fabricators
L.L.C. ( "Team ") and the City of Port Arthur Section 4A Economic Development Corporation
(the "PAEDC ") on April 22, 2008 per Resolution 08 -222; and
WHEREAS, the obligations of Team included employment of 125 employees with Team
using its best efforts to employ Port Arthur residents creating an aggregate payroll of $4,824,375.
Moreover, the Agreement provided "once Team has earned credits equal to $650,000, its
commitments were satisfied, and the Agreement shall terminate "; and
WHEREAS, Team has provided evidence of $7,457,270 in payroll over the term of the
Agreement and has earned credits exceeding $650,000 as denoted in Exhibit "A "; and
WHEREAS, on April 1, 2013, the Board of Directors of the PAEDC deemed the
Agreement complete, thereby closing the Agreement with Team.
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.
Section 2. That the PAEDC is herein authorized to close the Agreement with Team.
Section 3. That a copy of this Resolution shall be spread upon the Minutes of the City
Council.
READ, ADOPTED AND APPROVED on this day of A.D., 2013,
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
APPROVED:
Floyd Batiste, PAEDC CEO
APPROV D AS • FORM:
I 0
•
Guy N. Goodson, PAEDC Attorney
#991707 Page 2
APPROVED AS TO FORM:
V4/e
Valecia R. Tizeno, City/ ttorney
#991707 Page 3
Exhibit "A"
TEAM INDUSTRIES CLOSE -OUT REPORT
Team Industries contract states that they promise to distribute an total payroll of $4,824,375 by the end
of the contract and that they promise to employ approximately 125 employees by the end of the
agreement; it also states that they will use their best effort to employ PA residents. They are to receive
$1 credit for each $9 of payroll paid to employees (including non PA residents) not to exceed $525,000;
shall also receive a credit of $3,835 per PA residents employed not Tess than 6 months during any yr. not
to exceed $125,000. Total credits cannot exceed $650,000.
YEAR PAYROLL PAYROLL CREDIT PA CREDIT TOTAL CREDIT
2008 $540,728.53 $60,080.94 $0 $60,080.94
2009 $1,268,354.82 $140,928.31 $15,340.00 $156,268.31
2010 $1,238,601.10 $137,622.34 $23,010.00 $160,632.34
2011 $1,480,207.38 $164,467.48 $61,360.00 $225,827.48
2012 $2,929,378.25 $325,486.47 $19,175.00 $344,661.47
2013 N/A N/A $15,340.00 $15,340.00
TOTAL $7,457,270.08 $828,585.54 $134,225.00 $962,810.54
(distribute (not to exceed (not to exceed (not to exceed
$4,824,375) $525,000) $125,000) $650,000)