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HomeMy WebLinkAboutResolution - 2007-R0516 - Amendment To Agreement - Market Lubbock Economic Development Corp.- LPSIA FTZ - 11/08/2007Resolution No. 2007-80516 November 8, 2007 Item No. 5.9 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 an 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 8th ATTEST: Re e a Garza, City SecrtTary APPROVED AS TO CONTENT: f 4RoA , City Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section As/ccdocs/Res-Amendment FTZ Mgmt. Agmt October 12, 2007 day of November , 2007. 1 DAVID A. MILLER, MAYOR Resolution No. 2007—RO516 STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § AMENDMENT TO AGREEMENT BETWEEN THE CITY OF LUBBOCK 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 Agreement 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, City and MLI desire to adopt a new schedule of rates, fees, and charges, and to amend the term of the Agreement as described herein; NOW THEREFORE, City and MLI agree to the following amendments: 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 `2007 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 Visit Lubbock."' 2. Paragraph 5.1 entitled "Term" is amended to read as follows: Amendment to Management Agreement for FTZ-260 "The term of this management agreement shall begin upon activation of the Northport 273 acre portion of FTZ-260 and end December 31, 2010. The term shall automatically extend for successive one year periods thereafter, unless proper notice is given pursuant to this paragraph by either party that the term should not automatically extend. In the event either party desires in its discretion to not extend this Agreement after the expiration of the initial term or any subsequent extended term, the party desiring not to extend this Agreement agrees to give the other party advance notice of such intention at least 30 days prior to the next January 15t automatic extension date." Executed this 8th day of November , 2007. CITY OF LUBBOCK MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, d/b/a MARKET LUBBOCK, INC., d/b/a V LUBBOCK DAVID AA4ILLER, MAYOR BY: GARY LAWRENCE, CEO Date: ATTEST: Rebec a Garza, City Secretary APPROVED AS TO CONTENT: Rob Allis s ity Manager Develop6nent Services APPROVED AS TO FORM: Linda Chamales, Senior Attorney—Office Practice LC: cityatt/Linda[WI FTZ amendment October 12, 2007 Amendment to Management Agreement for FTZ 260 Page 2 a 112007 Schedule of Rates, Fees, and Charges" Exhibit "A" Introduction: Resolution No. 2007-80516 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 — 1. 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. 2007 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. 1. US$1,500.00 Project Initiation Fee this fee includes FTZ-260 assistance to prepare formal zone operations application to be submitted to the National Foreign -Trades Zone Board in Washington, D.C. 2. US$1,500.00 due upon submission of formal FTZ Application to the National Foreign -Trades Zone Board (D.C.). 3. US$750.00/month FTZ-260 Franchise/Administrative Fee, paid monthly after Zone Operations activation approval by NFTZB. 4. Plus the Federal Application Fee which varies from USS3,500.00 to US$6,800.00 depending on the type of Zone applied for. 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 USS50,000.00 - +/- 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, 2007.