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Home My WebLink AboutRES 00-199 RESOLUTION NO. O BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute an agreement with West Telemarketing Corporation for financial assistance in return for West 's establishment of a fully staffed and completely operational call center within the city limits of Beaumont. The agreement is substantially in the form attached hereto as Exhibit "X. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 2000. - Mayor - GA MRESOLUTRAGENDAI.RES STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT FOR FINANCIAL SERVICES This agreement is effective the day of 2000 by and between the City of Beaumont, a home-rule city of the State of Texas (herein "City") and West Telemarketing Corporation (herein "West"), a for-profit corporation with headquarters located at 11808 Miracle Hills Drive, Omaha, Nebraska 68154. That for and in consideration of the covenants, promises and agreements set forth herein, it is mutually agreed as follows: 1. PURPOSE City is authorized by Chapter 380 of the Local Government Code of the State of Texas to provide financial assistance to private corporations in order to attract major investment that would contribute to the economic development of the City of Beaumont. To that end, City and West wish to enter into an agreement whereby City will provide financial assistance to West subject to West's establishment of fully staffed and completely operational service center within the city limits of the City of Beaumont in accordance with all laws and ordinances of the State of Texas and the City of Beaumont (herein the "project"). EXHIBIT "A" GACGIAGREEMEMW ESTELEA.700 1 2. DUTIES City shall: 2.1. Pay the amount of One-Hundred Thousand ($100,000) Dollars to West at the time of the execution of this agreement but not before October 1, 2000 and agrees to provide One-Hundred Thousand ($100,000) Dollars each year for three years thereafter as an economic development grant, subject to the job creation and retention standards of paragraph 2.3 below. 2.2. Use all reasonable efforts to establish an enterprise zone to encompass the proposed location of West's facility. The enterprise zone will allow West to qualify for certain state sales and use tax rebates, franchise tax reductions, and other state programs for which the enterprise zone designation is required. The City agrees to provide within the enterprise zone to West tax abatement at 100 per cent of the value of the leasehold estate and the personal property value used in the project as such value is determined by the Jefferson County Appraisal District. Tax abatement shall be provided in accordance with the City's tax abatement policy attached hereto as Exhibit"A", but shall be for a maximum of five (5) years after completion of construction of the project, not to exceed a total of seven (7) years. West shall: 2.3. During the twelve (12) month period commencing with the execution of this agreement create a minimum of two-hundred fifty (250) new full-time positions at their site within the City limits of City. A full-time position is defined as working an average of thirty (30) hours or more a week in a thirty GAGGV+GREEMEMWESTELEA.700 2 (30) day period with benefits offered to the employee. Additionally, within the same twelve (12) month period, West shall create and fill at least three- hundred fifty (350) positions of any type (a total of 600 filled employment positions). Should West not meet the six-hundred (600) position requirement set out above, it must repay the City One-Thousand ($1,000) Dollars per position up to a maximum of thirty (30) positions. Should West fail to create at least five-hundred seventy (570) positions, West shall immediately refund to the City the sum of One-Hundred Thousand ($100,000) Dollars, and City's obligations under this agreement shall cease. Should West fail or refuse to refund the One-Hundred Thousand ($100,000) Dollars to City, City may take all legal efforts to collect same with the unpaid amount bearing interest at the rate of 10 per cent per annum from and after the first date of payment. Should litigation be necessary, in addition to One-Hundred Thousand ($100,000) Dollars and interest, West agrees to pay costs and attorney's fees. To qualify for the second year's payment, West shall maintain two-hundred fifty(250)full-time positions and maintain, create and fill an additional four-hundred fifty (450) employment positions of any type (a total of seven-hundred (700)filled employment positions). To qualify for the third and fourth year's payments, West shall maintain two- hundred fifty (250) full-time positions and create, maintain and fill an additional five-hundred fifty (550) positions of any type (a total of eight- hundred [800) filled employment positions). If in years two through five, West fails to meets its filled employee positions requirement by 5% or less, the payment to West will be reduced by One-Thousand ($1,000) Dollars per GAMAGREEMEMWESTELEA.700 3 employee. If West fails to meet the filled employment positions required by more than 5%, no payment from City to West shall be due. 2.4. Annually on the anniversary date of this agreement, certify in writing to City the number of equivalent employment positions which have been created and the number which have been retained. West agrees to provide to City reasonable access to its records to audit compliance with the terms of this contract. 3. Events of Default If any of the following events of default shall occur, City shall have no further obligation under this agreement: 3.1. If West fails to perform any term, covenant or agreement contained herein or in any related documents; or, 3.2. If West submits or makes any representation or warranty herein or in any financial statement, certificate, report or opinion submitted to City in connection with or pursuant to the requirements of this agreement in such representation or warranty showed to be incorrect or misleading in any material respect when made; or, 3.3. If any judgement against West or any attachment or other levy against the property of West with respect to a claim remains unpaid, unstayed, or appeal, undischarged, not bonded or not dismissed for a period of thirty (30) days; or, 3.4. If West makes an assignment for the benefit of creditors, admits in writing its inability to pay its debts generally as they become due; files a petition in GAMAGREEMEMWESMLEA.700 4 bankruptcy; is adjudicated insolvent or bankrupt; petitions or applies to any tribunal for any receiver or any trustee of West or any substantial part of its property, commences any action relating to West under any reorganization arrangement, readjustment of debt, dissolution or liquidation statute of any jurisdiction whether now or hereafter in effect; or 3.5. If there is commenced against West any such action or West by an act indicates its consent to or approval of any trustee of West or any substantial part of its property or suffers any such receivership or trustee to continue undischarged. 4. West shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City, nothing herein shall be construed as creating a partnership or joint enterprise between City and West. 5. VENUE Should any action whether real or asserted at law or in equity arise out of the execution performance, attempted performance or nonperformance of this agreement, venue for said action shall be in the City of Beaumont, Jefferson County, Texas. This contract shall be governed by the laws of the State of Texas. 6. ASSIGNMENT West shall not assign all or any part of its rights, privileges or duties under this agreement without City's prior written approval. GAMAGREEMEMWESTELEA.700 5 7. INDEMNITY West agrees to indemnify and hold harmless and defend City, its officers, agents and employees from and against all liability for claims, liens, suits, demands and/or actions for damages, injuries to any person (including death), property damage (including loss of use) and expenses including court costs and attorney's fees and reasonable costs arising out of or resulting from West activities under this agreement including intentional acts of negligence of West, its officers, agents, employees or invitees and including allegations of negligence on the part of City, its officers, agents, employees or invitees. 8. NOTICES Unless otherwise provided herein, all notices, requests, consents and demands shall be in writing and shall be mailed certified mail, postage prepaid addressed as follows: West City of Beaumont City Manager PO Box 3827 Beaumont, Texas 77704 GAMAGREEMEMWESTELEA.700 6 EXECUTED in duplicate originals this the day of , 2000. CITY OF BEAUMONT WEST TELEMARKETING By: By: City Manager "CITY" ATTEST: By: City Clerk G1CMAGREEMEMWESTELEA.700 7