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HomeMy WebLinkAboutResolution - 2002-R0210 - Supplemental Grant Agreement - Market Lubbock Economic Development - 05/23/2002Resolution No. 2002-80210 May 23, 2002 Item 50 RESOLUTION WHEREAS, the City of Lubbock, a Texas Home Rule Municipal Corporation (the "City"), and Market Lubbock Economic Development Corporation, a Texas non-profit corporation ("Market Lubbock") have heretofore on January 19, 1996, entered into a Grant Management Agreement (herein so called) for economic development purposes pursuant to Section 380.002 of the Local Government Code of the State of Texas; WHEREAS, the Grant Management Agreement provides, in Section 2.03(a), thereof, that the City may from time to time make separate grants of funds for specific projects to Market Lubbock; WHEREAS, Market Lubbock and Tyco Fire Products, LP, a Delaware limited partnership ("Tyco'), Tyco being duly qualified to do business, and in good standing in the State of Texas, have entered into that certain Economic Development Grant and Contract providing for, among other things, the provision of certain incentives from Market Lubbock to Tyco; WHEREAS, the City desires to make such a grant to Market Lubbock for economic development purposes, specifically the incentives provided in the Tyco Contract by Market Lubbock to Tyco, and Market Lubbock desires to receive such grant. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Supplemental Grant Agreement, by and between the City of Lubbock and Market Lubbock Economic Development Corporation ("MLI"), granting the sum of Ten Million and No/100 Dollars ($10,000,000.00) as an economic development grant to be utilized for economic development programs, and all related documents. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 23 ATTEST: 'i RebeccaGz�sz. City Secretary APPROVED AS TO CONTENT: r a" kAJP� Debra Forte, D puty City Manager APPROVED AS TO FORM: Richard K. Casner Natural Resources Attorney (1cr-Vas S R C:/ke RieHad/MLI. Tyco. SG..Res May 17, 2002 Resolution No. 2002-RO210 May 23, 2002 Item No. 50 SUPPLEMENTAL GRANT AGREEMENT STATE OF TEXAS § COUNTY OF LUBBOCK WHEREAS, the City of Lubbock, a Texas Home Rule Municipal Corporation (the "City"), and Market Lubbock Economic Development Corporation, a Texas non-profit corporation ("Market Lubbock") have heretofore on January 19, 1996, entered into a Grant Management Agreement (herein so called) for economic development purposes pursuant to Section 380.002 of the Local Government Code of the State of Texas; WHEREAS, the Grant Management Agreement provides, in Section 2.03(a), thereof, that the City may from time to time make separate grants of funds for specific projects to Market Lubbock; WHEREAS, Market Lubbock and Tyco Fire Products, LP, a Delaware limited partnership ("Tyco"), Tyco being duly qualified to do business, and in good standing in the State of Texas, have entered into that certain Economic Development Grant and Contract, dated on or about May 16, 2002, (the "Tyco Contract"), providing for, among other things, the provision of certain incentives from Market Lubbock to Tyco; WHEREAS, the City desires to make such a grant to Market Lubbock for economic development purposes, specifically the incentives provided in the Tyco Contract by Market Lubbock to Tyco, and Market Lubbock desires to receive such grant. NOW THEREFORE, the parties hereto agree to as follows: WITNESSETH The purpose of this Agreement is to provide an economic development incentive to Market Lubbock so that Market Lubbock can provide incentives to Tyco, to foster the elimination of unemployment and underemployment and to stimulate business and commercial activity within the City. DUTIES OF MARKET LUBBOCK Market Lubbock agrees to accept the funds described below under the caption "Duties of the City", to be utilized by Market Lubbock to further promote local economic development and stimulate business and commercial activity in the City, and for such purposes as are stated by Section 1.01 of the Grant Management Agreement between the MLI/Tyco: Supp Grant Agreement Pagel of 5 City and Market Lubbock. Specifically, Market Lubbock shall provide incentives to Tyco as set forth in the Tyco Contract, and Market Lubbock shall comply with each and all terms thereof. The Tyco Contract will promote economic development for the City by increasing employment opportunities and stimulating business and commercial activities within the City. Market Lubbock shall utilize the grant funds herein provided solely to directly fund the construction of the Tyco Plant, as provided for in the Tyco Contract. The City recognizes that Market Lubbock may attempt to obtain third party financing utilizing the pledge of all or a portion of the funds provided herein and/or the liens it will acquire under or pursuant to the Tyco Contract. In the event such third party financing shall occur, Market Lubbock shall promptly pay to the City one hundred percent (100%) of the funds obtained from any and all third party lenders. DUTIES OF THE CITY The City hereby agrees to provide supplemental grant funding as described herein to Market Lubbock for the purposes described above, subject to the conditions of this Agreement. The supplemental grant funding shall be provided as follows: (b) (a) The City agrees to provide supplemental grant funding in the amount of Ten Million and No/100 Dollars ($10,000,000.00). Notwithstanding any other provision of this Agreement, the total incentives to be paid to Market Lubbock by the City under this Agreement shall be limited to Ten and No/100 Million Dollars ($10,000,000.00). (c) The supplemental grant funding provided by this Agreement shall be subject to the same financial reporting requirements as are provided in the Grant Management Agreement between Market Lubbock and the City, including, without limitation, Section 2.05 thereof, and the City shall be given authorization and a reasonable and timely manner to audit Market Lubbock records to, among other things, verify that the funds have been extended according to this Agreement. TERM The term of this Agreement shall be for one year (1) , commencing on May 23, 2002. Payments are to be disbursed to Market Lubbock by the City on, or as soon as possible after, May 23, 2002. FULL AGREEMENT This Agreement contains the entire understanding and agreement by and between Market Lubbock and the City and supercedes all other written or oral exchanges, agreements, MLI/Tyco: Supp Grant Agreement Page 2 of 5 arrangements, or negotiations between them or their legal representatives, and may not be altered, amended, or modified, except by duly authorized written documentation by or from the party to be charged thereby. SUCCESSORS AND ASSIGNS All covenants, conditions, and agreements herein shall inure to the benefit of and be binding upon Market Lubbock and the City and their respective successors and assigns. FUTURE ASSURANCES The parties agree to cooperate fully and utilize reasonable efforts to carry out the purpose and intent of this Agreement. Each party agrees to take such future actions and execute such additional documents as may be required or appropriate to give full force and effect of this Agreement. FORCE MAJEURE If any default or performance of any other covenant, condition or term of this Agreement is delayed by reason of war, civil commotion, act of God, governmental restriction, regulation, or interference, fire or other casualty, or any other circumstances beyond Market Lubbock's or the City's control, then the duty to do or perform a term, condition, or covenant, regardless of whether the circumstance is similar to those enumerated or not, is excused during the force majeure period. CAPTIONS The captions, headings, and arrangements used in this Agreement are for convenience only and shall not, in any way, affect, limit, amplify or modify the terms or provisions hereof. MLT/Tyco: Supp Grant Agreement Page 3 of 5 This Agreement is entered into and executed on this 23rd day of May , 2002. CITY OF C MMMOAL, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: f�J ebra Forte' Deputy City Manager APPROVED AS TO FORM: Richard K. Casner Natural Resources Attorney MLI/Tyco: Supp Grant Agreement Page 4 of 5 MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, a Texas Non -Profit Corporation Name: T. Mike Fields Title: Chairman ATTEST: By: Name: Jane Anne Stinnett Title: Secretary RKC/ke/l/cityatt/Richard/ MLI..TYCO.SuppGrantAgreement.(redline2)515Accepted.revised. MLI/Tyco: Supp Grant Agreement Page 5 of 5