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HomeMy WebLinkAboutPR 18418: ZEOGAS, LLC FOR A POTENTIAL TAX ABATEMENT AGREEMENT (REQUESTED BY COUNCILMEMBER LEWIS) P. R. No. 18418 07/08/14 gt RESOLUTION NO. A RESOLUTION ACCEPTING A CONCEPT PROPOSED BY ZEOGAS, LLC, FOR A POTENTIAL TAX ABATEMENT AGREEMENT (REQUESTED BY COUNCILMEMBER LEWIS) WHEREAS, Councilmember Lewis has requested that the City Council accept a concept proposed by ZeoGas, LLC, for a potential Tax Abatement Agreement with ZeoGas, LLC, in substantially the same form as attached hereto as Exhibit "A"; and WHEREAS, approval of this proposal is contingent upon the appropriate rezoning of the property, an amendment of the Tax Abatement Policy, full compliance with the requirements of Chapter 312 of the Tax Code, and the creation of a Tax Reinvestment Zone. 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 hereby accepts a concept proposed by ZeoGas, LLC, for a potential Tax Abatement Agreement, in substantially the same form as attached hereto as Exhibit "A", contingent upon the appropriate rezoning of the property, an amendment of the Tax Abatement Policy, full compliance with the requirements of Chapter 312 of the Tax Code, and the creation of a Tax Reinvestment Zone. s.pr18418 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, by the following vote: AYES: Mayor: Councilmembers: , NOES: . MAYOR ATTEST: CITY SECRETARY APPROVED AS TO FORM: CITY A OR Y - APPROVED FOR ADMINISTRATION: ,( . JO A. COMEAUX, P.E. , INTERIM CITY MANAGER s.pr18418 '^1 EXHIBIT "A" s.pr18418 Grassroots Abatement Proposal JUL � € • Years 1—5 100% (Includes construction phase) • Year 6 100% (10% penalty for failure to employ 25% Port Arthur resident workforce) • Year 7 100% (15% penalty for failure to employ 25% Port Arthur resident workforce) • Year 8 100% (20% penalty for failure to employ 25% Port Arthur resident workforce) • Year 9 100% (30% penalty for failure to employ 25% Port Arthur resident workforce) • Year 10 100% (40% penalty for failure to employ 25% Port Arthur resident workforce) • Begin working immediately with PAISD and Lamar Technical Institute to train Port Arthur residents for jobs at ZeoGas while the plant is being constructed • Host a job fair at our ground breaking ceremony to help PAISD and LTI identify qualified candidates for its training programs and open construction jobs to Port Arthur residents • Offer at least four qualified Port Arthur ISD graduating seniors a full-ride scholarship to Lamar University to study engineering in perpetuity beginning the academic year following the commissioning and start up of the ZeoGas plant • Implement life skills training to create on-going employment opportunities for Port Arthur residents who might not otherwise qualify for employment at ZeoGas • Support the development and delivery of high school courses or curricula that would qualify for dual credit at Lamar Port Arthur and other institutions in technical disciplines relevant to ZeoGas • Allow local workers to provide resumes and register at the ZeoGas ground breaking for consideration of construction and permanent jobs for which they are qualified • Establish a purchasing manual and procurement process and a field procurement office in the City of Port Arthur from which certain non-process materials and services would be purchased on a competitive basis. This process excludes critical or proprietary components procured or specified by the licensors • Offer local vendors the opportunity to register for approval as preferred local vendors in procurement situations where local vendors are competitive. Similar to the City of Port Arthur's published procurement procedures • Agree to negotiate a long term contract to purchase process water from the City of Port Arthur on rates, terms and conditions per a commercially competitive basis • Create an incentive package for new employees who move to, and buy houses within, Port Arthur, consistent with ZeoGas Relocation Policy (to be developed)