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HomeMy WebLinkAboutResolution - 2009-R0051 - Amendment To FTZM Agreement - Market Lubbock Economic Development Corp. - 02/12/2009Resolution No. 2009—R0051 February 12, 2009 Item No. 5.8 RESOLUTION 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 Second Amendment to the Foreign Trade Zone Management Agreement, by and between the City of Lubbock and Market Lubbock Economic Development Corporation, d/b/a Market Lubbock, Inc, d/b/a Visit Lubbock for Foreign Trade Zone 260 located at Lubbock Preston Smith International Airport, and all related documents. Said Amendment 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 12th day of February . 2009. TOM MARTIN, MAYOR FAWNWO Reb •ca Garza, City ecretary APPROVED AS TQ CONTENT: Rob Alli n, ssist=- ity Manager Development Services APPROVED AS TO FORM: jEconomic Development Attorney s/ccdocs: Res- 2°dAmendment FTZ Mgmt. Agmt inuary 29, 2009 Resolution No. 2009-R0051 SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF LUBOCK AND MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, d/b/a MARKET LUBBOCK, INC., d/b/a VISIT LUBBOCK FOR MANAGEMENT OF FOREIGN TRADE ZONE 260 This Amendment is entered into by the City of Lubbock (referred to herein as "City"), a Home Rule Municipality of Lubbock County, Texas, and Market Lubbock Economic Development Corporation, d/b/a Market Lubbock, Inc., d/b/a Visit Lubbock (hereinafter called "MLI"). WITNESSETH: WHEREAS, the City Council of the City of Lubbock approved Resolution 2006- R0061 February 9, 2006, authorizing the City and MLI to execute an Agreement, wherein MLI agreed to operate Foreign Trade Zone 260 (FTZ-260) for the City; and WHEREAS, by Amended Agreement executed November 8, 2007, Paragraph 3.2 related to the Tariff Schedule and Paragraph 5.1 related to the Term of the Agreement were amended; and WHEREAS, by Resolution unanimously approved by the MLI Board of Directors at its regular meeting on December 16, 2008, the Schedule of Rates, Fees, and Charges was modified; and WHEREAS, City and MLI desire to adopt a new schedule of rates, fees and charges as described herein; NOW THEREFORE, City and MLI agree to the following amendment: 1. Paragraph 3.2 is amended to substitute a new "Exhibit A" and to read as follows: "City hereby approves and ratifies the tariff schedule entitled `2009 Schedule of Rates, Fees, and Charges' approved by the Market Lubbock Board of Directors marked `Exhibit A' which is attached hereto and incorporated as if fully set forth in this `Amendment to Agreement Between the City of Lubbock Economic Development Corporation, d/b/a Market Lubbock, Inc., d/b/a Market Lubbock, Inc., d/b/a Visit Lubbock."' Executed this 12th day of February, 2009. CITY OF LUBBOCK — < f_ -, //-/o5 4 Y _ _ . TOM MARTIN, MAYOR ATTEST: Reb ca Garza, City Secretary APPROVED AS TO CONSENT: Rob on, ' anf City Manager Development Services APPROVED AS TO FORM: Linda Chamales, Senior Attorney—Office Practice MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, d/b/a MARKET LUBBOCK, INC., d/b/a VISIT LU OCK Y LAWRENCE, CEO Date: Resolution No. 2009-R0051 "2009 Schedule of Rates, Fees, and Charges" Exhibit "A" Introduction: With the U.S. Customs & Border Protection Agency's (CBP) continuing revision of Federally mandated Zone operating and procedural regulations to enhance American international import logistics security concerns, the following FTZ operational procedures supersede all previously published requirements. The newly instigated E214 computer -driven FTZ/CBP Zone reporting procedures related to FTZ receiving, storing, handling, processing and shipping activities of imported merchandise revise many previous FTZ procedures. This is a continuing, fluid situation that will be in effect for the next several years - driven by world events. The following FTZ definitions currently apply to the relationship of FTZ-260 to companies operating in the Zone. Grantee — the City of Lubbock, holder of the authorization to function as FTZ-260 for commercial purposes. 2. Operator — an entity approved by the FTZ-260 Grantee and the National Foreign Trades Zone Board to operate within FTZ-260 — a corporation, partnership or person that operates a zone or sub zone under the terms of agreement with the Grantee. 3. User — a secondary entity using the Zone for storage, handling or processing of merchandise. An Operator may authorize a user to maintain its own inventory system and procedures manual, however the Operator remains responsible to Customs for inventory control unless the user posts its own operator's Customs Bond. 2009 Schedule of Rates, Fees, and Charges: FTZ-260 Zone Charges — fees charged will be amendable to fit the economic development requirements of the project — fees associated with setting -up and operating a FTZ- 260 Zone or SubZone. Project Application Fee — there will be no fee charged for FTZ-260 assistance to prepare formal zone operations application to be submitted to the National Foreign -Trades Zone Board in Washington, D.C. 2. Project Activation Fee — this fee is due to FTZ-260 upon notification from the National Foreign -Trades Zone Board in Washington D.C. that the FTZ-260 Zone or SubZone application has been approved. The amount of the fee assessed is based upon the gross facility space of the zone operator as follows: Zone I 0-10,000 square foot gross facility space $2,000.00 Zone II 10,001-25,000 square foot gross facility space $2,500.00 Zone III 25,001-40,000 square foot gross facility space $3,000.00 Zone IV 40,001+ square foot gross facility space $4,000.00 3. Franchise/Administration Annual Fee—this fee may be paid out monthly or annually up -front after Zone Operations activation approval by the National Foreign -Trades Zone Board. This annual fee is based upon the gross facility space of the zone operator as follows. Zone I 0-10,000 square foot gross facility space $1,500.00 Zone II 10,001-25,000 square foot gross facility space $2,500.00 Zone III 25,001-40,000 square foot gross facility space $5,000.00 Zone IV 40,001+ square foot gross facility space $7,500.00 4. Plus the Federal Application Fee which varies from $3,500.00 to $6,800.00 depending upon the type of Zone applied for. This fee is paid to the National Foreign -Trades Zone Board. 5. Internal Zone Operations & Customs Fees — these operational fees are determined, negotiated and collected by the Zone Operator, with many pre-set by U.S. Customs (CBP). In addition to these operating fees are the U.S. Customs Bond (usually US$50,000.00 - +/- US$700.00/year) AND the annual CBP Harbor Maintenance Fee (varies based on volume and location of import business activities). FTZ-260 is in compliance with all CBP Regulations as they pertain to Foreign Trade Zones as of September 1, 2008.