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HomeMy WebLinkAboutResolution No. 2015-040CITY OF THE COLONY, TEXAS RESOLUTION NO. 2015-_Q40 A RESOLUTION OF THE CITY COUINCIL OF THE CITY OF THE COLONY, TEXAS, FINDING THAT THE DEVELOPER'S OBLIGATIONS REQUIRED B -Y SECTION 6.8.1 THROUGH 6.8.3 OF THE DEVELOPMENT AND TAX INCREMENT PAYMENT AGREEMENT FOR TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF THE COLONY, TEXAS, BY AND BETWEEN ,LMG VENTURES, LLC, TXFNI, INC., THE BOARD OF DIRECTORS OF THE ZONE, THE CITY OF THE COLONY, AND THE COLONYLOCAL DEVELOPMENT CORPORATION, EFFECTIVE NOVEMBER 15, 201.1 HAVE BEEN FL)LLY SATISFIED, AS OF THE EFFECTIVE DATE OF THIS RESOLUTION; FINDING NO BASIS FOR THE CITY OR THE COLONY LOCAL DEVELOPMENT CORPORATION TO REGAIN TITLE TO PROPERTY TRANSFERRED TO DATE TO TXFM, INC. OR LMG VENTURES, LLC-, FINDING NO DEFAULT BY THE DEVELOPER t TNDER THE DEVELOPMENT AND TAX INCREMENT PAYMENT AGREEMENT; FINDING THAT ALL EXPENDITURES UNDER THE DEVELOPMENT AND TAX INCREMENT PAYMENT AGREEMENT HAVE BEEN FOR AUTHORIZED TIF PROJECT COSTS; FINDING THAT THE COLONY LOCAL DEVELOPMENT CORPORATION HAS SPENT BOND PROCEEDS FOR AUTHORIZED PURPOSES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS. on. November 15, 2011, The Colony City Council adopted Ordinance No. 2011-1932 approving a Development and Tax Increment Pa-v'ment Agreement (the "TIRZ Developi-rient Agreement") by and between The City of The Colonv, Texas. LMG Ventures, LLC, TXFNI, Inc.. the Board of Directors of Tax Increment Reinvestment Zone Number One. Citi of the Colony. Texas. and The Colony Local Development Corporation, and WHEREAS. all capitalized terms used in this Resolution shall have the meaning set forth in the'FIRZ Development Agreement unless otherwise defined herein-, and WHEREAS, Sections 6.8.1 through 6.8.3 of the TIRZ Development Agreement include the folloxving obligations of the Developer. which are set forth verbatim below (collectively. the "Performance Standards"): 6,8.1 Completion of the Facility. Construction of the Facility shall be completed. and the Facility shall be open for business to the public. no later than December 31. 2015, subject to force majeure delays and delays approved by the City, If the Facility is not completed and open for business by such date, an amount equal to ,50.000 for each month that the Facility is late in opening shall: (i)FIRST be applied to reduce the Maximum Debt Limit for TIF Obligations and Pri,, ate Debt, and (ii) SECOND. after giving effect to such reductions, the remainder of such amount, if anN. shall be deducted from the 380 Incentive Program or from any other legally available funds olAed by the City to the Developer. excluding funds required to pay TIF u 77ti,(1flJ'45744,-,, Obligations. 6.8.2 Qualified Costs of the Facility. At least $100,000,000 in Qualified Costs shall be expended to construct the Facility. If less than such amount of Qualified Costs is expended, the amount of the deficieneN shall: (i) FIRST be applied to reduce the Maximum Debt Limit for TIF Obligations and Private Debt, and (ii) SF..,COND, after giN ing effect to such reductions, the remainder of such amount, if anis.. shall be deducted from. the 380 Incentive Program or from an -y other legally- available funds owed by the Citi to the Developer. excluding funds required to pay TIF Obligations. 6.8.3 Full -"lime Jobs. On JanuarN 1 of the first calendar year after the Facility is completed and open for business to the public. the Facility will provide employment for a minimum of 850 Full -Time Equivalent Jobs. If the Facility does not provide the required minimum number of Full -"lime Equivalent Jobs, an amount equal to $5.000 for each job that is not prodded shall: ti) FIRST be applied to reduce the Maximum Debt Limit for TIF Obligations and Priti ate Debt; and (ii) '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 owed by the Cite to the Developer.. excluding funds required to pad TIF Obligations, WHEREAS., the City Council finds that the Facility is completed and open for business to the public: and. WHEREAS, the Cite Council finds that at least $100,000.000 in Qualified Costs has been expended to construct the Facility: and WHEREAS, the Citi- Council finds that the Facility- is completed and open for business. and is currently providing employment fora minimum of 850 Full -Time Equivalent Jobs; and WHEREAS, the Citi Council anticipates that, on January 1 of the first calendar year after the Facilit\ is completed and open for business. the Facility will continue to provide employment for a minimum of 850 Full -Time Equivalent Jobs:, and WHEREAS, the Citi' Council finds that the DeN eloper, to date, has performed and complied with all terms, conditions. and provisions set forth in the TIRZ Development .'agreement. and. WHEREAS, the City Council finds that the Developer has timely 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 TIRO Deti elopment a)greement; and 4N'FIEREAS, the Cite Council finds that there is no basis for the Citi- or The Colon- Local Development Corporation. to regain title to the property;- transferred to date to TNFN-I, Inc. or L\IG -Ventures. LL.C: and WHEREAS, the Citi Council finds that as of the date of this Resolution. the Developer is in compliance with the terms of the. TIRZ Development Agreement and at no time has there been a default by the Developer under the TIRZ Development .Apreementa and WHEREAS. the Cit} Council finds that all expenditures of funds by the City- pursuant to the terms of the TIRZ Development Agreement ha4 e been for TIF Project Costs authorized b tlae agreement; and WHEREAS, the Citi- Council finds that all Developer expenditures submitted to the Citi- for reimbursement pursuant to the terms of the TIRZ Development Aagreement have been for TIP Project Costs authorized by the `l'IRZ Development Agreement: and WHEREAS, the Cite Council finds that the expenditure by The Colony Isocal Development Corporation of the proceeds of the Series 2013 Nebraska Furniture Mart Texas project bonds has been in accordance NNith 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 COUNCIL OF TIME CITY CSFTHE COLONY, TE AS, THAT: SECTION 1. The findings set forth above are incorporated into the body` of this Resolution as if full, set :forth herein.. SECTION 2. This Resolution shall become effective immediately upon passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, , TE1AS, THIS THE 7" DAY OF APRIL, 2015. ., Joe '\,IcCourr\ . Niav or ATTEST: L , -�. L/.�.. t Christie "k`ilson. Cite Secretary �12;11MSIMIIOIM MG Pao,