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HomeMy WebLinkAboutResolution - 5059 - Agreement For Finacial Assistance - Texcot Bleachery Inc - 3002 Municipal Dr - 12_14_1995Resolution No. 5059 December 14, 1995 Item #24 RESOLUTION WHEREAS, the City Council of the City of Lubbock desires to create a new City of Lubbock Economic Development Program to provide financial assistance in the establishment of a Texcot Bleachery, Inc., cotton fabric bleaching facility in Lubbock, Texas, pursuant to authority granted to the City of Lubbock by Section 380.001 of the Texas Local Government Code; and WHEREAS, it is the opinion the City Council of the City of Lubbock that the granting of such financial assistance is provided herein will be in the public interest and will serve to promote economic development of Lubbock and the South Plains area; and WHEREAS, Texcot Bleachery, Inc., has indicated to the City of Lubbock that the proposed facility to be constructed in Lubbock will employee 50 persons and it will represent a major investment of $13,000,000 in the City of Lubbock; and WHEREAS, the City of Lubbock shall participate in the project through financial assistance up to an amount of $250,000 for the purpose of promoting economic development for the City of Lubbock and the surrounding area; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. The City Council of the City of Lubbock hereby establishes and provides for a new economic development program for the City of Lubbock to provide financial assistance with regard to the establishment of a new Texcot Bleachery, Inc., cotton bleaching facility within the City of Lubbock, Texas. Said program shall be administered by the municipal personnel of the City of Lubbock. SECTION 2. The Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock the attached Agreement for Financial Assistance by and between the City of Lubbock, Texas, and Texcot Bleachery, Inc., which agreement shall be made a part of this Resolution as if fully copied herein in detail. 66�7 Passed by the City Council of the City of Lub ATTEST: L—A, Betty . Johnson ity Secretary APPROVED AS TO CONTENT: oel Beesinger, In ernrt Director of Business Developm APPROVED AS TO FORM: Donald G. Vandiver, First Assistant City Attorney DGV:da/ddres/ccdocs/ecodev.res December 5, 1995 DAVID R. LANGSTON, MAYOR 2 Resolution No. 5059 December 14, 1995 Item #24 STATE OF TEXAS § COUNTY OF LUBBOCK § AGREEMENT FOR FINANCIAL ASSISTANCE This Agreement is by and between the City of Lubbock, a Texas home rule municipality (hereinafter referred to as "CITY"), and Texcot Bleachery, Inc., Lubbock, Texas, (hereinafter referred to as or "TEXCOT"). WITNESSETH: That for and in consideration of the covenants, promises, and agreements set forth herein, it is mutually agreed as follows: Purpose CITY is authorized by the Section 380.001 of the Texas Local Government Code to provide financial assistance to private corporations in order to facilitate the retention or expansion of primary employment or to attract major investment that would contribute to the economic development of the City of Lubbock. CITY shall administer this program through the Director of Business Development, or his duly authorized representative, unless otherwise stated in this Agreement. CITY and TEXCOT wish to enter into an agreement whereby the CITY will provide financial assistance for certain infrastructure improvements associated with the Texcot Bleachery project and TEXCOT agrees to provide the specified level of job creation. Total assistance provided by the CITY shall not exceed an amount of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000). II. Duties A. CITY. Shall pay TEXCOT an amount up to TWO HUNDRED FIFTY THOUSAND ($250,000) in reimbursement for actual expenses for infrastructure improvements as specified in Exhibit "A" associated with the construction of a cotton bleachery manufacturing plant at 3002 Municipal Drive, Lubbock, Texas. 2. Shall have the right to periodically verify the number of persons employed by TEXCOT as a result of the project, the addresses of those persons employed, the number of hours the employee worked during the previous twelve (I2) months, social security numbers and total wages paid. Subject to compliance with state laws, this information shall remain confidential. B. TEXCOT: Shall provide the CITY with an irrevocable letter of credit on behalf of the CITY in the amount of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) prior to receipt of assistance to insure compliance with the terms and conditions of this agreement with TEXCOT. Said letter of credit shall remain in effect until ninety (90) days after completion of construction and the employment of 50 persons. 2. Shall make a good faith effort to ensure creation of a minimum of 50 full- time equivalent employment positions by one year from the date of receipt of the first payment hereunder. TEXCOT shall submit a complete list of the employment positions by said date. Such list shall contain all existing employment positions, names of employees holding said positions, home addresses, social security numbers, and the number of hours each employee works for TEXCOT. 3. Shall repay to the CITY the amount of FIVE THOUSAND DOLLARS ($5,000) for each jobless than the required 50 jobs to be created. Such amount as may be owed to the CITY shall be paid no later than December 31, 1997. 4. Shall certify in writing to the CITY on or about the first day of December 1996, that the majority (at least 51%) of the employment positions created have been made available to either residents of Lubbock or persons required to reside in Lubbock if employed by TEXCOT. Shall comply with all relevant local, state, and federal laws and regulations including, but not limited to, all of the codes of the City of Lubbock such as Building Code, Plumbing Code, Water Code, Electrical Code, Mechanical Code, and Fire Code. Upon notice of violation, TEXCOT shall have sixty (60) days to correct any deficiency. 6. Shall provide, subject to TEXCOT security requirements, reasonable access to and authorize reasonable inspection of books and records by CITY or its representatives, to ensure the specifications and conditions of this Agreement have been met. III. Duration- Termination If a violation of the terms and conditions of this agreement becomes known, TEXCOT will be notified and have sixty (60) days to correct the violation. Upon determination by CITY that TEXCOT has failed to correct the violation and comply with the terms and conditions of this agreement, the agreement may be terminated. Said termination may be Agreement for Financial Assistance Page 2 in whole, or in part as the violation warrants. Termination will be effective ten (10) days after delivery of Notice of Termination. This Agreement shall expire December 1, 1997. This agreement also may be terminated by CITY, in whole, or in part, upon determination by CITY that TEXCOT has failed or refused to comply with any relevant local, state, and federal laws and regulations including, but not limited to all of the City Codes such as Building Code, Electrical Code Water Code, Mechanical Code, Plumbing Code, and Fire Code. IV. Status of TEXCOT TEXCOT shall operate hereunder as an Independent Contractor and not as an officer, agent, servant or employee of CITY. TEXCOT shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same so long as such services are consistent with this agreement. The CITY shall not be responsible nor liable for the acts or omissions of TEXCOT' S officers, directors, agents, or employees nor vice versa. The doctrine of respondeat superior shall not apply between CITY and TEXCOT nor between CITY and any subcontractors of TEXCOT. The doctrine of respondeat superior shall not apply between the Contractor and its subcontractors, program participants, licensees or invitees. TEXCOT shall not be responsible nor liable for the acts or omissions of CITY"s officers, directors, agents, or employees. The doctrine of respondeat superior shall not apply between TEXCOT and CITY nor between TEXCOT and its subcontractors. Nothing herein shall be construed as creating a partnership or joint enterprise between CITY and TEXCOT. It is expressly agreed that no officer, director, member, agent, employee, subcontractor, licensee, or invitee of TEXCOT is in the paid service of CITY. CITY does not have the legal right to control the details of the tasks performed hereunder by TEXCOT, its officers, directors, members, agents, employees, subcontractors, program participants, licensees, or invitees. In no event shall any person participating in the program of TEXCOT be an officer, agent, servant, or employee of CITY. V. Venue Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or non-performance of this Agreement, venue for said action shall be in Lubbock, Lubbock County, Texas. VI. Assi nment TEXCOT shall not assign all or any part of its rights, privileges, or duties under this Agreement without prior written approval of CITY. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Agreement. Agreement for Financial Assistance Page 3 V. venue Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or non-performance of this Agreement, venue for said action shall be in Lubbock, Lubbock County, Texas. VI. Assignment TEXCOT shall not assign all or any part of its rights, privileges, or duties under this Agreement without prior written approval of CITY. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Agreement. VII. Indemnity TEXCOT agrees to indemnify and hold harmless and defend CCITY, its officers, agents, and employees from and against all liability for claims, liens, suits, demands, and/or actions for damages, injuries to persons (including death), property damage, (including loss of use), and expenses, including court costs and attorney"s fees, and reasonable costs arising out of or resulting from TEXCOT' S activities under this Agreement including intentional acts or negligence of TEXCOT, its officers, agents, employees, or invitees. TEXCOT further agrees that it shall at all times exercise reasonable precautions on behalf of, and be responsible for the safety of, its officers, agents, employees, customers, visitors, as well as its property, while performing the tasks required under this Agreement. It is further agreed with respect to the above indemnity that the CITY and TEXCOT will each provide the other prompt and timely notice of any event covered which in any way, directly or indirectly, coincidentally or otherwise, affects or might affect TEXCOT or CITY, and each shall have the right to reasonably compromise and defend the same to the extent of its own interest. VIII. AGREEMENT This Agreement shall constitute the sole agreement between TEXCOT and the CITY relating to the object of this Agreement and correctly sets forth the complete rights, duties, and obligations of each party to the other as of its date. Any prior agreements, promises, negotiations or representations, verbal or otherwise, not expressly set forth in this Agreement are of no force and effect. Agreement for Financial Assistance Page 4 FYPf IIfpA thie 7 c -z Anly of ATTEST: c►J Betty M. Johnsd1i, City Secretary APPROVED AS TO CONTENT: foel Beesingei, tnterigybirector of Business Development h - - -- I - r , 199�. APPROVED AS TO FORM: onald G. Vandiver, Assistant City Attorney Agreement for Financial Assistance Page 5 TEXCOT: .y BY: President ATTEST: BY: Title: ATTACHMENT "A" TEXCOT BLEACHERY, INC. Schedule of Payments Upon Completion of Permits Demolition, hauling, dumping Electrical Service, Main Panel and Wiring Foundation Reinforcement and Drawings Water well Steamlines, Humidity Control Room, and Exhaust Hood Lubbock Promotion Estimated Cost Financial Assistance Provided Upon Completion $ 18,000 (*) 85,000 (*) 29,000 130,000 130,000 20,000 20,000 8,000 8,000 53,000 25,500 3 7, 500 37,500 $351,500 $250,000 *LP&L has committed up to $150,000 of infrastructure assistance for Texcot Bleachery, Inc., under the existing LP&L Infrastructure Development Fund. v1/dp:45-c&a1a-abi1en.doc December 14, 1995 Agreement for Financial Assistance Page 6 Resolution No.5059 VO ID e24 14, 1995 Itemm #i�24 It STATE OF TEXAS § COUNTY OF LUBBOCK § AGREEMENT FOR FINANCIAL ASSISTANCE This Agreement is by and between the City of Lubbock, a Texas home rule municipality (hereinafter referred to as "CITY"), and Texcot Bleachery, Inc., Lubbock, Texas, (hereinafter referred to as or "TEXCOT"). WITNESSETH:: That for and in consideration of the covenants, promises, and agreements set forth herein, it is mutually agreed as follows: CITY is authorized by the Section 380.001 of the Texas Local Government Code to provide financial assistance to private corporations in order to facilitate the retention or expansion of primary employment or to attract major investment that would contribute to the economic development of the City of Lubbock. CITY shall administer this program through the Director of Business Development, or his duly authorized representative, unless otherwise stated in this Agreement. CITY and TEXCOT wish to enter into an agreement whereby the CITY will provide financial assistance for certain infrastructure improvements associated with the Texcot Bleachery project and TEXCOT agrees to provide the specified level of job creation. Total assistance provided by the CITY shall not exceed an amount of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000). II. Duties A. CITY: Shall pay TEXCOT an amount up to TWO HUNDRED FIFTY THOUSAND ($250,000) in reimbursement for actual expenses for infrastructure improvements as specified in Exhibit "A" associated with the construction of a cotton bleachery manufacturing plant at 3002 Municipal Drive, Lubbock, Texas. 2. Shall have the right to periodically verify the number of persons employed by TEXCOT as a result of the project, the addresses of those persons employed, the number of hours the employee worked during the previous twelve (12) months, social security numbers and total wages paid. Subject to compliance with state laws, this information shall remain confidential. B. TEXCOT: Shall provide the CITY with an irrevocable letter of credit on behalf of the CITY in the amount of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,00), prior to receipt of assistance. 2. Shall make a good faith effort to ensure creation of a minimum of 80 full- time equivalent employment positions by September 1, 1996. TEXCOT shall submit a complete list of the employment positions by said date. Such list shall contain all existing employment positions, names of employees holding said positions, home addresses, social security numbers, and the number of hours each employee works for TEXCOT. 3. Shall repay to the CITY the amount of THREE THOUSAND ONE HUNDRED TWENTY FIVE DOLLARS ($3,125) for each job less than the required 80 jobs to be created by September 1, 1996. Such amount as may owed to the CITY shall be paid no later than September 30, 1996. 4. Shall certify in writing to the CITY on or about the first day of September, 1996, that the majority (at least 51%) of the employment positions created have been made available to either residents of Lubbock or persons required to reside in Lubbock if employed by TEXCOT. 5. Shall comply with all relevant local, state, and federal laws and regulations including, but not limited to, all of the codes of the City of Lubbock such as Building Code, Plumbing Code, Water Code, Electrical Code, Mechanical Code, and Fire Code. Upon notice of violation, TEXCOT shall have sixty (60) days to correct any deficiency. 6. Shall provide, subject to TEXCOT security requirements, reasonable access to and authorize reasonable inspection of books and records by CITY or its representatives, to ensure the specifications and conditions of this Agreement have been met. II1. Duration- Termination If a violation of the terms and conditions of this agreement becomes known, TEXCOT will be notified and have sixty (60) days to correct the violation. Upon determination by CITY that TEXCOT has failed to correct the violation and comply with the terms and conditions of this agreement, the agreement may be terminated. Said termination may be in whole, or in part as the violation warrants. Termination will be effective ten (10) days after delivery of Notice of Termination. This Agreement shall expire September 30, 1996. Agreement for Financial Assistance Page 2 This agreement also may be terminated by CITY, in whole, or in part, upon determination by CITY that TEXCOT has failed or refused to comply with any relevant local, state, and federal laws and regulations including, but not limited to all of the City Codes such as Building Code, Electrical Code Water Code, Mechanical Code, Plumbing Code, and Fire Code. IV. Status of TEXCOT TEXCOT shall operate hereunder as an Independent Contractor and not as an officer, agent, servant or employee of CITY. TEXCOT shall have exclusive control of, and the exclusive right to control, the details of the work and services performed hereunder, and all persons performing same so long as such services are consistent with this agreement. The CITY shall not be responsible nor liable for the acts or omissions of TEXCOT' S officers, directors, agents, or employees nor vice versa. The doctrine of respondeat superior shall not apply between CITY and TEXCOT nor between CITY and any subcontractors of TEXCOT. The doctrine of respondeat superior shall not apply between the Contractor and its subcontractors, program participants, licensees or invitees. TEXCOT shall not be responsible nor liable for the acts or omissions of CITY's officers, directors. agents, or employees. The doctrine of respondeat superior shall not apply between TEXCOT and CITY nor between TEXCOT and its subcontractors. Nothing herein shall be construed as creating a partnership or joint enterprise between CITY and TEXCOT. It is expressly agreed that no officer, director, member, agent, employee, subcontractor, licensee, or invitee of TEXCOT is in the paid service of CITY. CITY does not have the legal right to control the details of the tasks performed hereunder by TEXCOT, its officers, directors, members, agents, employees, subcontractors, program participants, licensees, or invitees. In no event shall any person participating in the program of TEXCOT be an officer, agent, servant, or employee of CITY. V. Venue Should any action, whether real or asserted, at law or in equity, arise out of the execution, performance, attempted performance or non-performance of this Agreement, venue for said action shall be in Lubbock, Lubbock County, Texas. VI. Assignment TEXCOT shall not assign all or any part of its rights, privileges, or duties under this Agreement without prior written approval of CITY. Any attempted assignment of same without approval shall be void, and shall constitute a breach of this Agreement. Agreement for Financial Assistance Page 3 VII. Indemnity TEXCOT agrees to indemnify and hold harmless and defend CITY, its officers, agents, and employees from and against all liability for claims, liens, suits, demands, and/or actions for damages, injuries to persons (including death), property damage, (including loss of use), and expenses, including court costs and attorney's fees, and reasonable costs arising out of or resulting from TEXCOT'S activities under this Agreement including intentional acts or negligence of TEXCOT, its officers, agents, employees, or invitees. TEXCOT further agrees that it shall at all times exercise reasonable precautions on behalf of, and be responsible for the safety of, its officers, agents, employees, customers, visitors, as well as its property, while performing the tasks required under this Agreement. It is further agreed with respect to the above indemnity that the CITY and TEXCOT will each provide the other prompt and timely notice of any event covered which in any way, directly or indirectly, continentally or otherwise, affects or might affect TEXCOT or CITY, and each shall have the right to reasonably compromise and defend the same to the extent of its own interest. VIIL AGREEMENT This Agreement shall constitute the sale agreement between the TEXCOT and the CITY relating to the object of this Agreement and correctly sets forth the complete rights, duties, and obligations of each party to the other as of its date. Any prior agreements, promises, negotiations or representations, verbal or otherwise, not expressly set forth in this Agreement are of no force and effect. nothing below this line Agreement for Financial Assistance Page 4 Executed this 14thday of December , 1995 - CITY OF LUBBOCK DAVID R. LANGSTON, MAYOR ATTEST: Betty M. Johnson, City Secretary APPROVED AS TO CONTENT: And Joel Beesingerx teri irector of Business Development APPROVED AS TO FORM: Donald G. Vandiver, Assistant City Attorney Aereement for Financial Assistance Page 5 TEXCOT: :V President ATTEST: BY: Title: Upon Completion of. Permits Demolition, hauling, dumping Parking lot refurbishing Water well Fence and Gate Lubbock Production ATTACHMENT "A" TEXCOT BLEACHERY, INC. Schedule of Payments Estimated Cost $ 18,000 85,000 147,000 8,000 27,600 37,500 $323,100 Financial Assistance Provided Upon Completion *) 29,000 147,000 8,000 27,600 37,500 $250,000 *LP&L has committed up to $150,000 of infrastructure assistance for Texcot Bleachery, Inc., under the existing LP&L Infrastructure Development Fund. dp:#5-c&ala-abilen.doe December 5, 1995 Agreement for Financial Assistance Page 6