HomeMy WebLinkAboutPR 18285: EDC AND CONTROLLED CONTAINERS MANUFACTURING, LLC CITY OF PORT ARTHUR
Port Arthur Economic Development Corporation
Interoffice
MEMORANDUM
To: City Attorney's Office
From: Floyd Batiste, CEO
Date: April 8, 2014
Subject: P. R. No. 18285; Council Meeting on April 9, 2014
A RESOLUTION APPROVING AN AMENDMENT TO THE
PERFORMANCE MILESTONES OF THE ECONOMIC
INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION AND CLIMATE
CONTROLLED CONTAINERS MANUFACTURING, LLC
Cc: City Council Members
City Manager
FB/pr
P.R. No. 18285
4/8/2014 pr
RESOLUTION NO.
A RESOLUTION APPROVING AN AMENDMENT TO THE
PERFORMANCE MILESTONES OF THE ECONOMIC
INCENTIVE CONTRACT & LOAN AGREEMENT BETWEEN
THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION AND CLIMATE
CONTROLLED CONTAINERS MANUFACTURING, LLC
WHEREAS, on June 14, 2012, the City Council of the City of Port Arthur entered into a
Lease Agreement with Climate Controlled Containers Manufacturing, LLC ( "CCC ") for the
property located at 3451 57 Street (hereinafter called the "Armory Building "); and
WHEREAS, the Armory Building was to be improved to meet business requirements of
CCC through a grant from the U.S. Department of Commerce Economic Development
Administration ( "EDA "); and
WHEREAS, per Resolution 12 -276, the City Council of the City of Port Arthur
approved an Economic Incentive Contract & Loan Agreement (the "Agreement ") between the
City of Port Arthur Section 4A Economic Development Corporation ( "PAEDC ") and CCC to
fund the purchase of equipment with incentive credits earned and with the increased payroll at
the Armory Building; and
WHEREAS, the improvements to the Armory Building have not been completed, and
CCC has not been able to expand its business operations in the present facilities to employ the
anticipated staff to reach the incentive credits as proposed; and
WHEREAS, CCC cannot meet the performance milestones set forth in the Agreement
until the improvements to the Armory Building are complete; and
WHEREAS, on April 7, 2014, the PAEDC Board agreed to amend the performance
milestones as set forth in Exhibit "A" attached hereto to provide additional time for the Armory
Building improvements to be completed, and CCC to meet its incentive obligations.
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 City Council approves an amendment to the Performance Milestones
of the Agreement as denoted in Exhibit "A" to be effective upon City Council approval of this
Resolution.
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., 2014,
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
#1067835 Page 2
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
Floyd Batiste, PAEDC CEO
APPROVED AS TO FORM:
.I
Guy N. Goodson, PAEDC Attorney
APPROVED AS TO FORM:
/0/1.-411g/t)
V 'Iecia R. liren s; CiE• ttorney
#1067835 Page 3
EXHIBIT "A"
PERFORMANCE MILESTONE SCHEDULE
Climate Controlled Containers Mfg., LLC
DATE MILESTONE
Climate Controlled Containers Manufacturing, LLC (CCC) issue
(a) December 30, 2012 a status report on building renovation and equipment purchase
and installation together with the estimated date for business
operations to commence to PAEDC, CEO.
Modify the contractual Milestones for the effective date of March
(b) March 1, 2014 1, 2014: issue a status report on building renovation and release
of building.
(c) July 15, 2014 Issue an Operational Status Report to PAEDC, CEO for the
period of March 1, 2014 to June 30, 2014.
Issue an Operational Status Report for the period of July 1, 2014
to December 31, 2014 and achieve employment of eleven (11)
(d) January 15, 2015 full -time permanent employees who are Port Arthur (PA)
Residents with an annualized payroll of $308,880 for PA
residents for the period of June 18, 2012 to December 31, 2014.
(e) July 15, 2015 Issue an Operational Status Report to PAEDC, CEO for the
period January 1, 2015 to June 30, 2015.
Achieve employment of twenty -four (24) full -time permanent
(f) January 15, 2016 employees who are PA residents with an annualized payroll of
$673,920. Total payroll for PA residents to December 31, 2015
not less than $982,800.
(g) July 15, 2016 Issue an Operational Status Report to PAEDC, CEO for the
period January 1, 2016 to June 30, 2016.
Achieve employment of thirty -nine (39) full -time permanent
(h) January 15, 2017 employees who are PA residents with an annualized payroll of
$1,095,120. Total payroll for PA residents to December 31, 2016
not less than $2,077,928.
(i) July 15, 2017 Issue an Operational Status Report to PAEDC, CEO for the
period January 1, 2017 to June 30, 2017.
Achieve employment of fifty -six (56) full -time permanent
(j) January 15, 2018 employees who are PA residents with an annualized payroll of
$1,572,480. Total payroll for PA residents to December 31, 2017
not less than $3,650,400.
(k) July 15, 2018 Issue an Operational Status Report to PAEDC, CEO for the
period January 1, 2018 to June 30, 2018.
Achieve employment of seventy -five (75) full -time permanent
(1) January 15, 2019 employees who are PA residents with an annualized payroll of
$2,106,000. Total payroll for PA residents to December 31, 2018
not less than $5,756,408.
(m) July 15, 2019 Issue an Operational Status Report to PAEDC, CEO for the
period January 1, 2019 to June 30, 2019.
(n) Jan uary 1, 2020 CCC meets all PAEDC Contractual Performances as verified by
the CEO of PAEDC.
(o) March 31, 2020 Prepare close out report for PAEDC Board and Council approval.