HomeMy WebLinkAboutRES 15-299RESOLUTION NO. 15-299
WHEREAS, Tri -Con, Inc. is proposing to construct a new convenience store at
1755 East Cardinal Drive in the City of Beaumont, Texas; and,
WHEREAS, this construction is projected to be in excess of $1,000,000, but less
than $5,000,000, a substantial investment as outlined in the Neighborhood
Empowerment Zone Policy and would, therefore, be eligible for consideration for an
abatement of City taxes for up to a period of three (3) years, building fee waivers,
expedited permit review and lien waivers; and,
WHEREAS, Neighborhood Empowerment Zones are intended to attract this type
of economic development in areas of the City with higher concentrations of low to
moderate income families and limited redevelopment by offering incentives such as tax
abatement;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this resolution are hereby,
in all things, approved and adopted; and,
THAT the City Manager be and he is hereby authorized to execute a
Neighborhood Empowerment Zone Tax Abatement Agreement with Tri -Con, Inc., Of
Beaumont, Texas, offering economic incentives to encourage the construction of a
convenience store with a projected value in excess of $1,000,000, but less than
$5,000,000, at 1755 East Cardinal Drive in the City of Beaumont within Neighborhood
Empowerment Zone #6. The agreement is substantially in the form attached hereto as
Exhibit "A" and made a part hereof for all purposes.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 15th day of
December, 2015.
* IV
"Mayor -� -
KAREN*
T • .0 X -. A
CITY OF BEAUMONT
APPLICATION FOR NEIGHBORHOOD
EMPOWERMENT ZONE DEVELOPMENT INCENTIVES
The purpose of this application is to present to the City of Beaumont a reasonably
comprehensive outline of the project for which the incentives are requested. Please
review the Neighborhood Empowerment Zone guidelines carefully before completing
this application. If additional space is needed, separate sheets may be attached.
Types of incentives that you are seeking:
0 Building Fee Waivers
® Expedited Permit Review
❑ Lien Waivers
® Tax Abatement
DESCRIPTION OF PROJECT
1. Legal name and address of applicant:
Tri -Con, Inc. / P.O. Box 20555, Beaumont, Texas 77720
2. Type of organization (Corporation, Ltd. Partnership, etc.):
Corporation
3. Date organization formed:
8/14/1969
4. Address and telephone number of headquarters location:
7076 West Port Arthur Road, Beaumont, Texas 77705 (409) 835-2237
5. State(s) in which business is registered:
Texas
6. Other locations of this business (names of cities):
N/A
7. Is business current with all taxes?
Yes
8. Name, address, and telephone number of principal officers:
Elias Sarkis, Imad Sarkis - P.O. Box 20555, Beaumont, Texas 77720 (409) 835-2237
9. Name, address & phone number of designated contact person:
Elias Sarkis, P.O. Box 20555, Beaumont, Texas 77720 (409) 835-2237
10. Type of business to be conducted and goods or services to be produced or provided:
Convenience Store
11. Location of project (street address):
1755 East Cardinal Drive, Beaumont, Texas 77705
12. Legal (lot, block & subdivision) description of the project (Attach plat of property):
J.A. Veatch, B-22, BLK 11, L1
13. Identify and describe the kind, number and location of all improvements to the
physical property and discuss the development schedule of the proposed improvements.
New convenience store construction and retail fueling stations installed at the beginning of December 2015
EXHIBIT "A"
14. What infrastructure construction will be required to serve the proposed project? What
is the estimated cost of this construction?
No additional infrastructure construction needed.
15. Estimated construction commencement date:
12/01/2015
16. Estimated construction completion date:
08/10/2016
17. Estimated date for project to be operational:
08/10/2016
18. City liens requested to be released:
None
EMPLOYMENT IMPACT (for Non-residential Projects)
19. What is the estimated number of permanent full-time new jobs that will be created?
10
20. What percentage of employees do you anticipate will be residents living in:
(a) the Neighborhood Empowerment Zone 70%
(b) City of Beaumont 30%
(c) Jefferson County 100%
(d) Outside Jefferson County
21. How many new, temporary and part-time jobs will be created in Beaumont?
10
22. What types of jobs will be created?
clerks/cashier, managers, maintenance
23. What will be the total project annual payroll of the newly created jobs?
$117,560
24. Will specialized training be required? If so, what type?
TCEQ and TABC training
FISCAL IMPACT
25. Is there an anticipated cost to the City of Beaumont for providing municipal services
to the proposed project?
No
COMMUNITY IMPACT
28. Do you anticipate the proposed project having a substantial impact on the local
residential, commercial or.retail market?
Yes
29. Will rezoning and platting/replatting be required?
No
2
If you have any questions about this application please call the Community Development
Department at (409) 880-3762.
CITY OF BEAUMONT STAFF RECOMMENDATIONS) AND/OR COMMENT(S):
(To be completed by City of Beaumont Staff Only)
2. Recommendation:
Approve
Disapprove
Comments:
4
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
home -rule city and municipal corporation of Jefferson County, Texas, acting herein by
and through its City Manager, hereinafter referred to as "City"; and Tri -Con, Inc., P.O.
Box 20555, Beaumont, Texas, hereinafter referred to as "Owner".
WITNESSETH:
WHEREAS, On the eighth day of December, 2015, the City Council of the City
of Beaumont, Texas, passed Ordinance No. 15-055, establishing the boundaries of
Empowerment Zone Number Six, for residential and commercial tax abatements as
authorized by Vernon's Texas Civil Statutes Tax Code, Section 312.001 and Chapter 378
of the Texas Local Government Code, et seq, as amended, hereinafter referred to as
"Statute".
WHEREAS, in order to maintain and/or enhance the local economy and/or
provide quality, affordable housing, in accordance with said Ordinance and Statute, the
City and Tri -Con, Inc., known herein as the Owner, do mutually agree as follows:
1. The property, known as the "Premises" to be the subject of this Agreement
shall be the property owned by Tri -Con, Inc. at 1755 East Cardinal Drive, Beaumont,
Texas and described at Lot 1, Block 11 of J.A. Veatch, B-22 Subdivision.
2. The Owner shall cause to be constructed a new convenience store and fueling
station, known herein as the "Project," on the Premises and shall not have a construction
cost less than $750,000 and shall be completed not later than December 31, 2016.
3. The Owner agrees to pursue these improvements as good and valuable
consideration of this Agreement.
4. In the event that the Project and improvements for which an abatement has
been granted are not completed in accordance with this Agreement, then this Agreement
shall be subject to termination and all delinquent taxes and taxes which otherwise would
have been paid to the City without the benefit of abatement will become a debt to the
City and shall be due, owing and paid to the City within sixty (60) days of any such
event. In the event that the Owner defaults in the terms and conditions of this
Agreement, the City shall give the Owner written notice of such default and if the Owner
has not cured such default within thirty (30) days of said written notice, this Agreement
may be terminated by the City. Notices shall be in writing and shall be delivered by
personal delivery or certified mail addressed as follows:
Elias Sarkis
Tri -Con, Inc.
P.O. Box 20555
Beaumont, Texas 77720
5. In the event that the City should fail to timely or substantially comply with any
one or more of the requirements, obligations, duties, terms, conditions or warranties of
this Agreement, such failures shall be an Act of Default by the City and the City shall
have ninety (90) days to cure and remove the Default upon receipt of written notice to do
so from Tri -Con, Inc. Tri -Con, Inc. specifically agree that the City shall only be liable to
Tri -Con; Inc. for the amount of waivers and abatement, outlined herein, attorney's fees,
and costs of court, shall not be liable to Tri -Con, Inc. for any alleged consequential
damages. Tri -Con, Inc. hereby waives any rights or remedies available to it at law or in
equity. Notices shall be in writing and shall be delivered by personal delivery or certified
mail addressed as follows:
Kyle Hayes, City Manager
City of Beaumont
801 Main
Beaumont, TX 77701
6. The terms and conditions of this Agreement are binding upon the successors
and assigns of all parties hereto. Other than assignment to a Tri -Con, Inc. affiliate, this
Agreement cannot be assigned by Owner to anyone or any other entity which is not an
affiliate of Tri -Con, Inc., unless written permission is first granted by the City, which
permission shall be in the sole discretion of the City.
7. The Owner agrees to hold the City harmless from any and all kinds of claims,
losses, damages, injuries, suits or judgments involving the City and relating to such
improvements.
8. The City shall have reasonable right to inspect the Premises and Project during
regular daylight hours to ensure that the improvements are made according to the terms
of this Agreement. In addition, the Owner agrees to provide records and documentation
to the City, sufficient to verify improvements and employment data in order to ensure
performance under this agreement.
9. Subject to the terms and conditions of this Agreement, all increases in taxes
owed to the City, assessed from the ad valorem real value resulting from these
improvements of these Premises, are hereby abated in their entirety for a period of three
(3) year beginning January 1, 2017.
10. In addition, an exemption from planning and building fees associated with
new construction, though not including water tap fees, shall be made as part of this
agreement.
11. In addition, the City and the Owner agree to cooperate with one another to
facilitate the expeditious processing of permits, including zoning applications (s),
subdivision applications, plat approvals, development application (s) and building permit
applications required for the completion of the project, in accordance with State Statutes
and City Ordinances.
12. The City and Owner each agree to act in good faith and to do all things
reasonably necessary or appropriate to carry out the terms and provisions of this
agreement, and to aid and assist the other in carrying out such terms and provisions in
order to put the other in the same condition contemplated by this Agreement.
13. If the Owner elects not to proceed with the development of the project as
contemplated by this Agreement, the Owner will notify all parties in writing and the
obligations of either Tri -Con, Inc. and the City will be deemed terminated and of no
further force or effect as of the date of such notice, except those that expressly survive the
termination hereof, if any.
14. This Agreement was authorized by resolution of the City Council at its
meeting on the , authorizing the City Manager to
execute the Agreement on behalf of the City.
15. This Agreement was authorized by the Owners on the day of
16. This shall constitute a valid and binding agreement between the City and the
Owners when executed on behalf of said parties, for the abatement of City ad valorem
taxes in accordance therewith.
The Agreement is performable in Jefferson County, Texas, witness our hands
This day of ,
CITY OF BEAUMONT
ATTEST:
Tina Broussard
City Clerk
By:
Kyle Hayes
City Manager
By:
Elias Sarkis
ATTEST:
Lamar Neighborhood Empowerment
Zone (#6)