HomeMy WebLinkAboutRES 20-040RESOLUTION NO. 20-040
WHEREAS, in 1987, the City of Beaumont received a $500,000.00 grant from
the United States Economic Development Administration (EDA) to establish a Revolving
Loan Fund (RLF) Program; and,
WHEREAS, the EDA grant was matched with Community Development Block
Grant (CDBG) funds initially in the amount of $250,000.00; and,
WHEREAS, interest in the program has decreased and most applicants now
seek loans through the Lamar Small Business Development Center (Lamar SBDC) and
the Southeast Texas Economic Development Foundation (SETEDF); and,
WHEREAS, due to the decrease in the number of applications and loans
awarded through the RLF Program, EDA is seeking to recover these funds; and,
WHEREAS, recent changes in rules controlling the CDBG portion of the program
has resulted in the City being responsible for the repayment of underperforming loans,
therefore, this portion of the program has been suspended; and,
WHEREAS, City Council is of the opinion that it is in the best interest of the
citizens of the City of Beaumont to enter into an Agreement to Terminate Financial
Assistance Award for Convenience to terminate a financial assistance award and remit
the balance of $515,779.86 in EDA funds in the City's Small Business Revolving Loan
Fund (RLF) Program to the United States Economic Development Administration (EDA)
and to reallocate the CDBG portion to other activities in the City's CDBG to be approved
by the City Council at a future date;
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 an Agreement
To Terminate Financial Assistance Award For Convenience to terminate 'a financial
assistance award and remit the balance of the United States Economic Development
Administration (EDA) funds in the amount of $515,779.86 in the City's Small Business
Revolving Loan Fund (RLF) Program to the United States Economic Development
Administration (EDA). 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 25th day of
February, 2020.
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Mayor Bec y Ames -
* \\ UNITED STATES DEPARTMENT OF CONEMRCE
Economic Development Administration
f5;,� �! • Austin Regional Office
903 San Jacinto Blvd., Suite 206
__* Austin, TX 78701
AGREEMENT TO TERMINATE
FINANCIAL ASSISTANCE AWARD FOR CONVENIENCE
EDA Investment No.: 08-39-02536
WHEREAS, the United States of America, Department of Commerce, Economic
Development Administration ("Government" or "EDA") pursuant to its authority under the
Public Works and Economic Development Act of 1965 (P. L. 89-136), as amended, entered into
a -Financial Assistance Award ("Award" ), with the City of Beaumont ("Recipient");
WHEREAS, the Award provided an amount not to exceed the lower of $500,000 or
66.67 percent of the total project cost of $750,000 to capitalize a revolving loan fund ("RLF");
and
WHEREAS, the Government and Recipient (collectively the "Parties") have determined
that it is not feasible or not desirable to continue the project and that an accounting should be
made and the Award terminated for convenience of the Parties; and
NOW, THEREFORE, for the mutual benefit and convenience of the Parties, the
Government tenders this Agreement to Terminate Financial Assistance Award for Convenience
("Termination Agreement"), which will be effective upon the signature of the Parties:
1. The Parties agree that the value of the RLF's assets are $773,669.79.
2. The Parties agree that the amount to be recovered by the Government is equal to
$515,779.86, which represents the Federal share of the RLF capital base ("Federal Share
Due").
3. The Federal Share Due shall be remitted, in full, within 30 calendar days of the effective date
of this Termination Agreement to:
Chief Counsel
Office of the Chief Counsel
Economic Development Administration
U.S. Department of Commerce
1401 Constitution Avenue,
NW/Mail Stop 72023
Washington, D.C. 20230
Checks must include the EDA grant number in the memo portion of the check and the
"Payee" is the "U.S. Economic Development Administration."
Page 1 of 3
EXHIBIT "A"
4. Pending final disposition of the RLF assets, this Termination Agreement does not relieve
Recipient of the obligation to protect the Federal interest in the RLF assets. All Award terms
and conditions remain in effect until the full Federal Share Due is deposited with the
Government.
S. Certain provisions of the Award terms and conditions are continuing obligations that extend
beyond termination of the Award. These obligations include, but are not limited to, the
following:
a. Recipient must comply with Award closeout and post -closeout adjustments and
continuing responsibilities, as set forth in 2 CFR §§ 200.343 and 200.344 (or the
equivalent regulations in 15 CFR part 14 or 24, as applicable, for most awards made
prior to December 26, 2014). Under these regulations, the Government may recover
funds on the basis of a later audit and the Recipient must return any funds due as a
result of a refund or correction.
b. If applicable, Recipient may have audit requirements under 2 CFR part 200, subpart
F.
c. EDA may require Recipient to report on project performance beyond the project
closeout date for Government Performance and Results Act ("GPRA") purposes. In
no case shall Recipient be required to submit any report more than ten years after the
project closeout date.
d. All records in the possession of Recipient or its sub-awardees regarding the Award
shall be retained for a period of three (3) years after the effective date of this
Termination Agreement. All records shall be retained beyond the three (3) year
period if audit findings have not been resolved within that period or if other disputes
have not been resolved. These requirements are further detailed in 2 CFR § 200.333
(or the equivalent regulations in 15 CFR part 14 or 24, as applicable, for most awards
made prior to December 26, 2014).
e. The Recipient shall continue to provide the Government access to records regarding
the Award as detailed in2. CFR § 200.336 (or the equivalent regulations in 15 CFR
part 14 or 24, as applicable, for most awards made prior to December 26, 2014).
6. Acceptance of this Termination Agreement must be made by the Recipient, with an executed
original returned to the Government, on or before 30 days from the date of the Regional
Director's signature on this Termination Agreement. Failure to submit a timely executed
Termination Agreement may result in the Government withdrawing this Termination
Agreement and initiating a unilateral termination, if deemed appropriate by the Government.
7. Recipient represents and warrants that the execution, delivery, and performance of this
Termination Agreement was duly authorized in accordance with Recipient's governance
rules and that the Termination Agreement is signed by a person duly authorized to bind the
Recipient, and that any and all required permissions from the governing body of the
Recipient have been obtained.
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Page 2 of 3
AGREEMENT TO TERMINATE
FINANCIAL ASSISTANCE AWARD FOR CONVENIENCE
EDA Investment No.: 08-39-02536
DEPARTMENT OF COMMERCE
ECONOMIC DEVELOPMENT ADMINISTRATION
k1H
February 5, 2020
Jorge D. Ayala, Regional Director Date
Austin Regional Office
CITY OF BEAUMONT
The above Agreement to Terminate Financial Assistance Award for Convenience is hereby
accepted by Recipient.
Signature
Title of Accepting Official
Printed Name Date
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