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HomeMy WebLinkAboutRES 18-287RESOLUTION NO. 18-287 WHEREAS, Pour Brothers Brewery, LLC and Collburn and Angie McClelland are proposing to develop a new craft brewery and taproom at 585 Wall Street in the City of Beaumont, Texas; and, WHEREAS, this development is projected to be an investment of $150,00.00 in the facility, 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; and, WHEREAS, the 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 Pour Brothers Brewery, LLC, a Texas limited liability company and Collburn and Angie McClelland offering economic incentives to encourage the development of a craft brewery and taproom with a projected investment value in the building of $150,000.00 at 585 Wall Street in the City of Beaumont within Neighborhood Empowerment Zone #5. The agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of November, 2018. STATE OF TEXAS ,COUNTY OF JEFFERSON AGREEMENT This Agreement is entered into by and between the City of Beaumont, Texas, a $ome-rule city and municipal corporation of Jefferson County, Texas, acting herein by and through its City Manager, hereinafter referred to as "City"; and Pour Brothers Brewery, LLC, 470 Orleans, Beaumont, Texas, hereinafter referred to as "Business Owner" and Collbum & Angie McClelland; 414 Dowlen, Beaumont, Texas, hereinafter referred to as "Property Owner". WITNESSETH: WHEREAS, On the eighth day of December, 2015, the City Council of the City of Beaumont, Texas, passed Ordinance No. J15-055establishing the boundaries of Empowerment Zone Number Five, 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, Pour Brothers Brewery, known herein as the Business Owner, and Angie and Collburn McClelland, known herein as the Property Owner, do mutually agree as follows: 1. The property, known -as the "Premises" to be the subject of this Agreement shall be the property at Wall, Beaumont, Texas and described as Lots 397 and 398, Block 56, Beaumont, Neighborhood 101 -SA. 2. The Business Owner shall cause to be developed a production brewery with taproom, known herein as the "Project," on the Premises and shall not have a EXHIBIT "A" construction cost less than $75,000 and shall be completed not later than December 31, 2019. 3. The Business Owner and Property Owner agree 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 Business Owner or Property Owner defaults in the terms and conditions of this Agreement, the City shall give the Business Owner and Property Owner written notice of such default and if the Business Owner or Property 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: Joel Iiollier Pour Brothers Brewery, LLC 470 Orleans, Suite 810 Beaumont, Texas 77701 Angie & Colburn McClelland 414 Dowlen Beaumont, Texas 77706 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 the Business Owner or Property Owner. The Business Owner and Property Owner specifically agree that the City shall only be liable to the Business Owner and 2 Property Owner for the amount of waivers and abatement, outlined herein, attorney's fees, and costs of court, shall. not be liable to the Business Owner or Property Owner for any alleged consequential damages. The Business Owner and Property Owner 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 Pour Brothers Brewery, LLC affiliate, this Agreement cannot be assigned by the Business Owner or Property Owner to anyone or any other entity which is not an affiliate of Pour Brothers Brewery, LLC, unless written permission is first granted by the City, which permission shall be in the sole discretion of the City. 7. The Business Owner and Property 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. Lu addition, the Business 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, 2019. 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 Business 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 the Business Owner and Property 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 Business Owner or Property Owner elects not to proceed with the development of the project as contemplated by this Agreement, the Business Owner or Property Owner will notify all parties in writing and the obligations of either the Business Owner or Property Owner 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 shall constitute a valid and binding agreement between the City and the Business Owner and Property Owner 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 L! CITY OF BEAUMONT ATTEST: Tina Broussard City Clerk BUSINESS OWNER By:1- Joel Hollier ATTEST: PROPERTY OWNERS By: An; By r.n ATTEST: Kyle Hayes City Manager E