Loading...
HomeMy WebLinkAboutResolution No. 2015-038CITE:' OF THE COLONY, TEXAS RESOLUTION NO. 2015- o , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, FINDING THAT THE DEVELOPER'S OBLIGATIONS REQUIRED BY SECTION 7 OF THE TYPE A CORPORATION PERFORMANCE AGREEMENT BY AND BETWEEN LMG VENTURES, LLC, TN M, INC., ANIS THE COLONY ECONO'-NIIC DEVELOPMENT CORPORATION EFFECTIVE NOVEMBER 15, 2011 HAVE. BEEN FULLY SATISFIED AS OF THE EFFECTIVE DATE OF THIS RESOLUTION; FINDING NO DEFAULT BY THE DEVELOPER ZTNDER THE TYPE A CORPORATION PERFORMANCE AGREEMENT; FINDING THAT ALI, EXPENDITURES UNDER THE TYPE A CORPORATION PERFGRIN/IANCE AGREEMENT HAVE BEEN FOR AUTHORIZED PROJECT COSTS; FINKING THAT THE COLONY ECONOMIC DEVELOPMENT CORPORATION HAS SPENT BOND PROCEEDS FOR AUTHORIZED PURPOSES; AND PROVIDING FOR AN EFFECTIVE DATE. ` NIMEREAS. on November 15.. 2011. The Colony City Council adopted. Resolution 011-078 approving and ratifying a Type A Corporation Performance Agreement by and bem een LMG \7entures.. I:sLC.. TXF'\I, Inc., and The Colony Economic Development Corporation (the "T` pe A Performance £Ngreement")and WHEREAS. all capitalized terms used in this Resolution shall have the meaning set forth in the T,,pe A Performance Agreement unless otherwise defined herein: and WHEREAS, Section i of the Type A Performance Agreement includes the following obligations of the Developer. which are set forth verbatim below,- (collectively.. the "Performance Standards"): (a) Completion of the Facility-. The Facility shall be completed and open for business to the public no later than December _)1. 2015" subject to ",force majeure" delays and delays approved by the Type A Corporation. If the Facility,- is not completed and. open for4 business by such date, an amount equal to 550,000 for each month that the Facility, is late in opening shall: (i) FIRST, reduce the Maximum Debt Limit for Bonds and Private debt: and (ii) SECO-ND, after giving effect to such reductions. the remainder of such amount, if any. shall be deducted from the 80 Incentive Program or from any other legally available funds owed by the Type A Corporation to the Developer, excluding fiends required to pad' Bonds. (b) Qualified Costs. At least $100.000,N)0 in Qualified Costs shall be expended to construct and open the Facility. The Developer agrees to submit to the Type A Corporation or the Cite by January 71.2016, ins o ces. receipts, or other documentation acceptable to the TN pe A Corporation or the Cite 2\ idencing expenditure of the required urrinimum amount of Qualified Costs. If less than the required amount of Qualified Costs is expended, the amount of the deficiency shall: (1) FIRST, reduce the Maximum Debt 1 ;'7;;_r"N 43 51,-/ Limit for Bonds and Private debt. and (Jil) SECOND, after giving effect to such reductions, the remainder of such amount, if any. shall be deducted from the 380 Incentive Program or from any other legally available funds oNved by the Type A Corporation to the Developer, excluding funds required to pay Bonds. (c) Full -Time EqLiic°alent Jobs, On January I of the first calendar year after the Facility is completed and open for business., the Facility will provide employment for a minimum of 850 Full -Time Equialcnt Jobs. If the Facility does not provide the required minimum number of Full -Time Equivalent Jobs, an amount equal to 55.000 for each job that is not provided shall: (i) FIRST. reduce the Maximum Debt Limit for Bonds and Private debt-, and (11) SECOND, after giving effect to such reductions, the remainder of such amount, if an%-. shall be deducted from the 380 Incentive Program or from any other legally available funds owed by the Type A Corporation to the Developer under this Agreement. excluding funds required to pay TIF Obligations. (d) Forfeiture of Project Costs. Am, reductions in the Maximum Debt Limit described in Sections 7(a) through 7(c), inclusive, shall constitute a permanent forfeiture of the right of the Developer to be paid or reimbursed for Project Costs in an amount equal to the reductions. If the failure to satisfy the performance standards described in Sections 7(a) through 7(c), inclusive, occurs after the Maximum Debt Limit is reached (and provided the reductions have not been deducted from the 380 Incentive Program or from any other legally available funds oNved by the City to the Developer), then the reductions shall constitute a permanent -forfeiture of the right of the Developer to be paid or reimbursed forl"uture Project Costs in an amount equal to the reductions. (e) Performance. The Developer agrees to perform and comply Nith all terms. conditions. and provisions set forth in this Agreement and in all other instruments and agreements bet,,wen the Developer and the Type A Corporation. and any related agreements between the Developer and the Tv , pe A Corporation. (f) Certain Prohibited Economic Incentives. The Developer covenants and agrees and will cause each End User to covenant and agree that this Agreement does not violate Section 501.161 of the Texas Local Government Code, as amended. WHEREAS. the City Council finds that the Facility is completed and open for business to the public: and WHEREAS. the City Council finds that at least S100,000.000 in Qualified Costs has been expended to construct and open the Facility.. and acknow [edges that the Developer has submitted to the Type A Corporation and the City invoices, receipts, or other documentation acceptable to the Type 2), Corporation and the City evidencing expenditure of the required minimum amount of Qualified Costs: and WHEREAS. the Cit-,' Council finds that the Facility is completed and open for business, and is currently providing employment for a minimum of 850 Full -Time Equivalent Jobs: and Pal -e 2 1715 NO 4`,651.7 WHEREAS, the Citi Council anticipates that. on Januar- I of the first calendar year after the FacilitN is completed and open for business. the Facility -, ill continue to provide empioyment for a minimum of 850 Full -Time Equivalent Jobs, and WHEREAS, the City Council finds that the Developer to date has performed and complied with all terms, conditions. and provisions ,set forth in the Type A Performance :Agreement. and WHEREAS, the City Council finds that. to date. the Developer has caused each End t+ser to covenant and agree that the Type A Performance Agreement does not violate Section 501.161 of the Texas Local Government Code. as amended; and WHEREAS, the City Council finds that the Developer has timer satisfied all of the Performance Standards to date: and. WHEREAS, the Cite Council finds that the Performance Standards are independent performance obligations that are subject only to the monetary penalties described in the Type A Performance =Agreement: and WHEREAS, the CAN Council finds that. as of the date of this Resolution, the Developer is in compliance "ith the terms of the Type A Performance, _Agreement and at no time has there been a default by the Developer tinder the "T) pe A Performance .'agreement: and WHEREAS.. the City Council finds that all expenditures of funds b) the Cite pursuant to the terms of the Type ;A Performance .Agreement have been for Project Costs authorized by the a<v reement: and WHEREAS, the City Council finds that all Developer expenditures submitted to the Citi„ for reimbursement pursuant to the terms of the Type A Performance Agreement have been for Project Costs authorized b� the Tti pe '� Performance .A.greement and WHEREAS, the Cit} Council finds that the expenditure by The Colony Economic Development Corporation of the proceeds of the Series 2013 'Nebraska furniture Mart Texas project bonds has been in accordance r, ith the Indenture of Trust and Security Agreement, dated as of February 1. 2013: and WHEREAS. the Citi Council finds that all of the findings contained herein are true and correct as of the March 4. 2015 opening date of the Facility. NOW THEREFORE, BE IT RESOLVED BY THE CITY COU'_\CIL OF THE. CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above are; incorporated into the body of this Resolution as if fully set forth heroin. SECTION 2. This Resolution shall become effective immediately upon passage. pane 3 1775 0 10,4364 1 . i PASSED AND APPROVED BY T COLONY, TEXAS, THIS THE 7"' DAY OF JE CITY COUNCIL OF THE CITY OF THE APRIL, 2015. .'fc ivlcc06rrV`."May'or ATTFS CluBtle''Milson, City Secretar� APPROVED AS TO FO Jeff WoreCity attorney Pxe 4 1775.o I Q 4365, L?