Loading...
HomeMy WebLinkAboutPR 11664: EDC BUSINESS PARKMemorandum city of Port Arthur, Texas 'Finance Department To~ From: Date: Subject: Steve Fitzgibbons, City,~,,ag~er F'j.~/~'~ Rebecca Underhill, Dire~to~e February 7, 2002 u.~ - Proposed Resolution 11664 PR 11664 authorizes the Mayor to execute an agreement with the Port Arthur Economic Development Corporation. The agreement requires the EDC to fund the debt service payments on the $5 million Certificates of Obligation which will fund the business park. The EDC Board approved this agreement at their meeting February 12, 2002. The certificates are scheduled to be issued by the City on March 5, 2002. P. R. NO. 11664 JJA - 2/7/02 RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION REGARDING THE FINANCING OF THE BUSINESS PARK WHEREAS, on January 15, 2002, the City Council adopted Resolution 02-14 which authorized the financing mechanisms to build a business park by the Port Arthur Economic Development Corporation, and WHEREAS, the mechanism authorized was Certificate of Obligation in the amount of $5 million to be issued by the City; and WHEREAS, the Port Arthur Economic Development Corporation will fund the debt service on this issue. Now Therefore: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. The facts and opinions in the preamble are true and correct, Section 2. The Mayor is authorized to execute the agreement regarding the construction of improvements for the Port Arthur Economic Development Corporation business park in substantially the same form as attached hereto as Exhibit A. Section 3. That a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ, ADOPTED, AND APPROVED, this 19th day of February, 2002, AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Mayor ATTEST: Jan Stroder, Acting City Secretary APPROVED AS TO FORM: Mark Sokolow, City Attorney APPROVED FOR ADMINISTRATION: ve Fitzgibbons, City Manager Rebecca Underhill, Finance Director AGREEMENT REGARDING THE CONSTRUCTION OF IMPROVEMENTS FOR ECONOMIC DEVELOPMENT PURPOSES THE STATE OF TEXAS § COUNTY OF JEFFERSON § CITY OF PORT ARTHUR § This Agreement Regarding the Construction of Improvements for Economic Development Purposes (the "Agreement") is entered into as of the __ day of February, 2002, between the CITY OF PORT ARTHUR, TEXAS, a municipal corporation situated in Jefferson County, Texas (the "City") and the PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION, a non-profit industrial development corporation (the "Corporation") created pursuant to the provisions of Article 5190.6, Section 4A, Vernon's Texas Revised Civil Statutes (the "Act"). RECITALS At a special election held within the City on 11/7/95 _, the voters approved a proposition authorizing the levy and collection of a sales and use tax within the City at the rate of one-half of one percent (the "Additional Sales Tax") as authorized by the Act for economic development purposes. The Corporation was formed pursuant to the Act for the purpose of promoting and developing new and expanded business enterprises, including projects authorized by the Act. Pursuant to the provisions of the Act, the City collects the Additional Sales Tax and pays it to the Corporation. The City and the Corporation wish to proceed with the following economic development project: the construction of water and serer facilities and street and drainage improvements to serve the Port Arthur Business Park. (the "Project"). The City has determined that the most economical means of financing the costs of the Project is for the City to issue its Certificates of Obligation, Series 2002C (the "Certificates") in the principal mount of $5,000,000, with the agreement of the Corporation to make payments to the City from the Additional Sales Tax in mounts sufficient to pay the debt service on the Certificates as and when it becomes due. AGREEMENT For and in consideration of the respective promises and mutual covenants and benefits hereinafter set forth, the City and.the Corporation agree as follows: ARTICLE I THE PROJECT Section 1.01. Construction of the Proiect. The City agrees to prepare or cause to be prepared all plans and specifications required for the construction of the Project. Copies of all such plans and specifications shall be provided to the Corporation upon request. The City further agrees to contract with all individuals or entities necessary to complete the Project in accordance with the plans, specifications and other construction documents. Section 1.02. Issuance of the Certificates. The City agrees to proceed with the sale and to use the proceeds of the sale of the Certificates to pay the costs of the Project and the costs of issuing the Certificates. Section 1.03. Use of Sales Tax Revenues. The Corporation agrees to use the Additional Sales Tax, and any interest earned thereon, to make payments to the City in amounts sufficient to pay the principal of and interest on the Certificates when due. The City will provide the Corporation with a schedule of the principal and interest payments due on the Certificates, and the Corporation agrees to pay to the City amounts sufficient to make each such principal and interest payment at least fifteen (15) days before such payment is due. ARTICLE II MISCELLANEOUS PROVISIONS Section 2.01. Tenn. This Agreement shall be in force and effect f~om the date of execution hereof until the date on which the Certificates are paid in full. Section 2.02. Amendments and Supplements. This Agreement may be amended, supplemented or extended by mutual agreement of the parties hereto. Section 2.03. Merger. This Agreement embodies the entire understanding between the parties hereto and there are no prior effective representations, warranties, or agreements between - the parties hereto. Section 2.04. Severability. The provisions of this Agreement are severable, and if any provision or part of this Agreement or the application hereof to any person or circumstance shall ever be held by any court, of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provision or part of this Agreement to other persons or circumstances shall not be affected thereby. EXECUTED in multiple counterparts as of the date first written above. CITY OF PORT ARTHUR, TEXAS ATTEST: By: Mayor By: Acting City Secretary PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION By: President ATTEST: By: Secretary AGREEMENT REGARDING THE CONSTRUCTION OF IMPROVEMENTS FOR ECONOMIC DEVELOPMENT PURPOSES THE STATE OF TEXAS § COUNTY OF JEFFERSON § CITY OF PORT ARTHUR § This Agreement Regarding the Construction of Improvements for Economic Development Purposes (the "Agreement") is entered into as of the __ day of February, 2002, between the CITY OF PORT ARTHUR, TEXAS, a municipal corporation situated in Jefferson County, Texas (the "City") and the PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION, a non-profit industrial development corporation (the "Corporation") created pursuant to the provisions of Article 5190.6, Section 4A, Vemon's Texas Revised Civil Statutes (the "Act"). RECITALS At a special election held within the City on 11/7/95 ., the voters approved a proposition authorizing the levy aod collection of a sales and use tax within the City at the rate of one-half of one percent (the "Additional Sales Tax") as authorized by the Act for economic development purposes. The Corporation was formed pursuant to the Act for the purpose of promoting and developing new and expanded business enterprises, including projects authorized by the Act. Pursuant to the provisions of the Act, the City collects the Additional Sales Tax and pays it to the Corporation. The City and the Corporation wish to proceed with the following economic development project: the construction of water and serer facilities and street and drainage improvements to serve the Port Arthur Business Park. (the "Project"). The City has determined that the most economical means of financing the costs of the Project is for the City to issue its Certificates of Obligation, Series 2002C (the "Certificates") in the principal mount of $5,000,000, with the agreement of the Corporation to make payments to the City from the Additional Sales Tax in amounts sufficient to pay the debt service on the - Certificates as and when it becomes due. AGREEMENT For and in consideration of the respective promises and mutual covenants and benefits hereinafter set forth, the City and the Corporation agree as follows: ARTICLE I THE PROJECT Section 1.01. Construction of the Proiect. The City agrees to prepare or cause to be prepared all plans and specifications required for the construction of the Project. Copies of all such plans and specifications shall be provided to the Corporation upon request. The City further agrees to contract with all individuals or entities necessary to complete the Project in accordance with the plans, specifications and other construction documents. Section 1.02. Issuance of the Certificates. The City agrees to proceed with the sale and to use the proceeds of the sale of the Certificates to pay the costs of the Project and the costs of issuing the Certificates. Section 1.03. Use of Sales Tax Revenues. The Corporation agrees to use the Additional Sales Tax, and any interest earned thereon, to make payments to the City in amounts sufficient to pay the principal of and interest on the Certificates when due. The City will provide the Corporation with a schedule of the principal and interest payments due on the Certificates, and the Corporation agrees to pay to the City amounts sufficient to make each such principal and interest payment at least fifteen (15) days before such payment is due. ARTICLE II MISCELLANEOUS PROVISIONS Section 2.01. Term. This Agreement shall be in force and effect fxom the date of execution hereof until the date on which the Certificates are paid in full. Section 2.02. Amendments and Supplements. This Agreement may be amended, supplemented or extended by mutual agreement of the parties hereto. Section 2.03. Merger. This Agreement embodies the entire understanding between the parties hereto and them are no prior effective representations, warranties, or agreements between the parties hereto. Section 2.04. Severability. The provisions of this Agreement are severable, and if any provision or part of this Agreement or the application hereof to any person or circumstance shall ever be held by any court 'of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provision or part of this Agreement to other persons or circumstances shall not be affected thereby. EXECUTED in multiple counterparts as of the date first written above. CITY OF PORT ARTHUR, TEXAS ATTEST: By: Mayor By: Acting City Secretary PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION By: President ATTEST: By: Secretary