HomeMy WebLinkAboutRES 24-069RESOLUTION NO. 24-069
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
WHEREAS, on January 23, 2024, the City Council authorized the City Manager to enter
into an agreement with GP Realty and Management, Inc., to allow a three (3) year 100%
municipal tax abatement, building fee waivers and expedited permit reviews of an apartment
complex at 704 Neches Street. The approved abatement period began March 1, 2024, and
terminates February 28, 2027; and,
WHEREAS, for GP Realty and Management, Inc., to receive the full incentives for their
qualified project through the Neighborhood Empowerment Zone Program, Administration
requests authorization to amend the municipal tax abatement period to begin January 1, 2025,
and terminate December 31, 2028;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to an -rend an agreement with GP
Realty and Management, Inc., for economic development incentives to include: a possible three
(3) year 100% municipal tax abatement for all added value for investments greater than
$50,000.00 for residential uses and $75,000.00 for all other uses, building fee waivers (not
including tap and ureter fees), and expedited permit review; under the Neighborhood
Empowerment Zone Program for the development of an apartment complex at 704 Neches Street
to begin January 1, 2025, and terminate December 31, 2028.
The meeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Governiilent Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 19"' day of March,
2024.
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
hone -rule city and municipal corporation of Jefferson County, Texas, acting herein by
and through its City Manager, hereinafter referred to as "City"; and GP Realty Building
Company, 4606 FM 1960 W. Ste, 640, Houston, Texas, hereinafter referred to as
"Business Owner" and as "Property Owner".
WITNESSETH:
WHEREAS, On the eighth day ofDecernber, 2015, the City Council of the City
of Beaumont, Texas, passed Ordinance No. 15-055 , establishing 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 sect, as amended, hereinafter referred to as
"Statute".
WHEREAS, in order to maintain axed/or enhance the local economy and/or
provide quality, affordable housing, in accordance with said Ordinance and Statute, the
City and GP Realty Building Company, known herein as the Business Owner and
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 704 Neches, Beaumont, Texas and described as Lot 474, Block 62, Original
Townsite of Beaux-nont, Beaumont, Jefferson County, Texas.
2. The Business Owner shall cause to be developed a twelve (12) unit apartment building
with a total investment of $1,500,000 to $1,600,000, known herein as the "Project," on
the Premises and shall not have a construction cost less than $50,000 and shall be
completed not later than February 28, 2025.
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 nail addressed as follows:
Richard Gilbert
GP Realty Building Company
1502 Elk River Road
Houston, Texas 77069
Richard Gilbert
GP Realty Building Company
4606 FM 1960 VLT, Suite 640
Houston, Texas 77069
S. 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) clays 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 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
Pa
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.
Kenneth Williams, City Manager
City of Beaumont
801 Main
Beaumont, TX 77701
G. The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. Other than assignment to a GP Realty Building Company,
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 GP Realty Building Company,
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 (including death), 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 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. The base year value of this project is January l of the year- it is executed by both
parties. 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 three-year period of beginning
January 1, 2025 and terminating December 31, 2028.
10. 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,
subdivision applications, plat approvals, development applications 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 fiurther 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
n
NU
This day of
CITY OF BE' AUMONT
12
ATTEST:
Tina Broussard
City Clerk
BUSINESS OWNER
Kenneth Williams
City Manager
By: G
Richard Gilbert
GP Realty Building Company
ATTES
PROPERTY OWNER
A Gilbert
,alty Building Company
A
5
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BIERIKIN-*
x " 9 ° ° A ° 19 CITY OF BEAUMONT
APPLICATION FOR NEIGHBORHOOD
EMPOWERMENT ZONE DEVELOPYffiNT INCENTIVES
The purpose of this applications 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 seelcing;
0"'Building Fee Waivers
t y-Xpedited Permit Review
I left Waivers
Tax Abatement
DESCRIPTION OF PROM CT
1. Legal name and address of applia t; .y Ife id, Sle
2. Type of organization. (Corpora zon, Ltd. Partnership, etc.):
e eap
3, Date org nization formed:
2/7RU
4, Address and tele one�Cex[aW(d` Tat`x. 77a1�� P1` 2�'f�'�� 9'7 3
4641P P-M i it G✓= of
S. State(s) in which business is registered:
I C--AAS
6. Other locations of this business (names of cities): I,(f #
7. Is business current with all taxes? '
vas
8. Z ICC& P 6 e14 Bti2.7e, address, and efhono i t elf p rin� a1 Si vet f� 7Y 7`7 0f, ��'' '3 -� 7 �
9. Name, address & phone number of designated contact person:
sm vke As )lazlvc
10, Type of business to be conducted and goods or services to be produced or provided.;
11 PAn'(WWr''BLL J)trc
l l . Location of project (street alress):
12. Legal (lot, block & subdivision) description of the project (Attach plat of property):
LoT q7q 814 4 Z
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.
14, What infi-astaicturo construction will be roquired to serve the proposed project? What
is the estimated cost of this construction? tuu 4t-a4'r ?�"DIS -r( "A
15. Estimated construction commencement date; '21 I 1 zoz e4
16. Estimated construction completion date:
17. Estimated date for project to be operational:
18. City liens requested to be released: 414
E, MPLOYW, NT IMPACT (for Non-residential Projects)
19, What is the estimated number of permanent full -tune new jobs that will be created?
20, What percentage of employees do you anticipate will be residents living in:
(a) the Neighborhood Empoweime-nt Zone
(b) City of Beaumont
(c) sefferson County
(d) Outside Jefferson County
21, How many now, temporary and part-time jobs will be created in Beaumont?
22. What types of jobs will be created?
23, What will be the total project annual payroll of the newly created jobs?
24. Will specialized training be required? If so, what type?
'FISCAL IMPACT
25. Is there an anticipated cost to the City of Beaumont for providing municipal services
to the proposed project? j'�/(,)
COMMUNITY IMPACT
28. Do you anticipate the proposed project having a substantial impact on the local
residential, commercial or retail market? N6
29, Will rezoning and platting/replatting be required? NO
2
It is understood that the information provided herein is based on estimates and
projections, but that such estimates and projections have been fully investigated and are
made in good faith as to their accuracy. It is forther understood that any information
provided herein that is actual and not estimated is represented to be true and correct. Any
information herein, which is irdstepresented as true and correct or for which there is no
good faith basis, may result in the denial of consideration for or termination of incentive
agreement.
I t 12 7% Ze,>2T
Date
If you have any questions about this application please call the Community Development
Department at (409) 880-3762.
CITY OF BEAUMONT STAFF RECOMMENDATION(S) AND/OR COMMENT(S):
(To be completed by City of Beaumont Staff only)
2. Recommendation,
Approve
Disapprove
Comments:
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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 GP Realty Building
Company, 4606 FM 1960 W. Ste. 640, Houston,Texas,hereinafter referred to as
"Business Owner"and as"Property 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 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 and GP Realty Building Company,known herein as the Business Owner and
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 704 Neches, Beaumont, Texas and described as Lot 474,Block 62, Original
Townsite of Beaumont,Beaumont,Jefferson County, Texas.
2. The Business Owner shall cause to be developed a twelve(12)unit apartment building
with a total investment of$1,500,000 to$1,600,000,known herein as the"Project,"on
the Premises and shall not have a construction cost less than $50,000 and shall be
completed not later than February 28, 2025.
1
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:
Richard Gilbert
GP Realty Building Company
1502 Elk River Road
Houston, Texas 77069
Richard Gilbert
GP Realty Building Company
4606 FM 1960 W, Suite 640
Houston, Texas 77069
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 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
2
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:
Kenneth Williams, 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 GP Realty Building Company,
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 GP Realty Building Company,
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 (including death), 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 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. The base year value of this project is January 1 of the year it is executed by both
parties. 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 three-year period of beginning
January 1,2025 and terminating December 31,2028.
3
10. 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,
subdivision applications,plat approvals,development applications 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 MIA p?oR., 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
4
This d/sf day of49'JQ 'Ci) ("-
CITY OF BEAUMONT
Bye
Kenneth Williams
City Manager
ATTEST:
Juk ea Ditao #6-9- lee
Tina Broussardg t"'.3 0 t
City Clerk / W
BUSINESS OWNER
By: ri(c;.4 .2 4/
Richard Gilbert
GP Realty Building Company
ATTES
PROPERTY OWNER
By:ilmj. 4r& /
Richard Gilbert
GP Realty Building Company
ATTES • ,-
5