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HomeMy WebLinkAboutResolution No. 01-12 ORI ilNAL Economic Development Agreement Golden Corral May 7, 2001 CITY OF THE COLONY, TEXAS RESOLUTION NO. 0 ! - A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE AN ECONOMIC DEVELOPMENT AGREEMENT BY AND AMONG THE CITY OF THE COLONY, TEXAS, THE COLONY ECONOMIC DEVELOPMENT CORPORATION AND THE GOLDEN CORRAL RESTAURANT OF THE COLONY; PROVIDING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Manager of the City of The Colony is hereby authorized to execute an Economic Development Agreement between the City of The Colony The Colony Economic Development Corporation and The Golden Corral Restaurant Of The Colony. Section 2. That a true and correct copy of the Economic Development Agreement is attached hereto as Exhibit "A" and incorporated herein. Section 3. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED by the City Council of the City of The Colony, Texas this 7th day of May 2001. APPROVED: William W. Manning, Mayor ATTEST: Pamela J. Russell, Deputy City Secretary APPROVED AS TO FORM: ~4~ttomey, ~f~e ~;lony ( THE GOLDEN CORRAL RESTAURANT OF THE COLONY ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT STATE OF TEXAS § COUNTY OF DENTON § This Economic Development Agreement ("Agreement") is among the City of The Colony, a Texas Home Rule municipality with the full power of local self government as provided by Article 11, Section 5 of the Texas Constitution and its Home Rule Charter (the "City"), The Colony Economic Development Corporation, a Texas non-profit corporation ("EDC"), and The LoyMc II, LLC dba The Golden Corral Restaurant of The Colony (the "Company") (the City, the EDC, and the Company are hereinafter referred to together as the "Parties"). RECITALS WHEREAS, the EDC is an agent of the City, per approval ofa Tex. Rev. Civ. Stat. Ann. Section 5190.6(4A) sales tax by the citizens of the City on January 17, 1998. Section 4A tax proceeds may be used to fund many types of economic development endeavors, including the promotion of new and expanded business development, and facilities to promote job creation and retention; and WHEREAS, the City has established an economic development program or policy pursuant to the authority granted by Section 380.001 of the Texas Local Government Code; and WHEREAS, the Company is required to pay 4A sales taxes to the City; and WHEREAS, the Company's location as described in Exhibit "A", which is attached hereto and incorporated herein by reference, is intended to create new jobs and generate sales taxes in the City and generate other new economic development; and WHEREAS, the EDC and the City, acting by and through their duly authorized representatives, have found that the significant positive impact to the local community of the Company will qualify the project for economic development incentives from the EDC and the City granted in this Agreement. THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMiENT T:~rospects\Golden Corral Agreement 3.doc Page I AGREEMENTS NOW THEREFORE, in consideration of the recitals stated above and commitmems and obligations of the Parties set forth hereinafter, the Parties hereto covenant and agree as follows: I. DEFINITIONS Whenever used in this Agreemem, the following terms shall have the meanings ascribed to them: (i) The Company shah mean, The LoyMc II, LLC d/b/a The Golden Corral Restaurant of The Colony. (ii) Reimbursement Term shall mean, the three (3) year term of this Agreemem that covers 4A sales taxes paid beginning the second year after the Company has been operating within the City of The Colony. II. PAYMENT AMOUNT AND SCHEDULE The Parties to this Agreement agree that the EDC shall partially reimburse permit fees to the Company in the sum often thousand dollars and no/100 dollars ($10,000.00) within thirty (30) days of the Company opening for business. Additionally, the Company shall be paid an annual reimbursement sum by the EDC during the reimbursement term based on the following formula: (i) One hundred percem (100%) of the 4A sales tax paid by the Company for the second, third and fourth years that the Company is open for business. IlL AMENDMENTS AND WAIVERS Any provision of this Agreemem may be amended or waived if such amendmem or waiver is in writing and is signed by the City and the Company. No course of dealing on the part of the Company or the City, nor any failure or delay by the Company or the City with respect to exercising any right, power or privilege of the Company or the City under this Agreement shall operate as a waiver thereof, except as otherwise provided in this Section. THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:~°rospects\Golden Corral Agreement 3.doc Page 2 IV. TERMINATION This Agreement may be terminated by the mutual agreement of the Parties. Upon such termination, the Parties shall promptly execute and file of record in the County Clerk Official Records of Denton County, a document confirming the termination of this Agreement, and shall execute such other documents as may be appropriate to document such termination. V. ANNUAL CERTIFICATION It shall be the responsibility of the Company to certify annually to the City and the EDC that the Company is in compliance with each applicable term of this Agreement. Furthermore, the Company shall file with the EDC a copy of each sales tax filing made during the life of this Agreement. VI. DEFAULT: RECAPTURE The Parties agree that the Company shall remain open for business within the City of The Colony for at least three years fi.om the date the Company opens for business or the Company will be in default. In the event the Company fails to perform any of the requirements of this Agreement, then the Company, after notice and the periods described below, shall be in default of this Agreement. As liquidated damages in the event of default, the Company shall, within sixty (60) days after demand, pay to the City/EDC all monies which have been paid to the Company up to the point of default. The Parties agree that any monies lost by the City/EDC as a result of this Agreement shall be recoverable against the Company, its successors and assigns. Upon breach by the Company of any obligations under this Agreement, the City/EDC shall notify the Company in writing. The Company shall have sixty (60) days fi.om receipt of the notice in which to cure any such default. If the default cannot reasonably be cured within a sixty (60)-day period, and the Company has diligently pursued such remedies as shall be reasonably necessary to cure such default, then the Parties shall automatically extend the period in which the violation must be cured for an additional sixty (60) days. THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:L°rospects\Goiden Corral Agreement 3.doc Page 3 If the Company fails to cure the default within the time provided or as such time period may be extended, then the governing body of the City, at its sole option, shall have the right to terminate or modify this Agreement by written notice to the Company. Upon such termination, the Company shall be obligated to repay all reimbursed permit fee monies received to the date of the breach, plus all costs associated with the default and collection of the reimbursed permit fee monies. VII. EXHIBITS: TITLES OF ARTICLES, SECTIONS AND SUBSECTIONS The exhibit(s) referenced herein and attached to this Agreement are incorporated herein and shah be considered a part of this Agreement for all purposes, except that in the event of any conflict between any of the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the Parties and shall not be construed to have any effect or meaning as to the agreement between the Parties hereto. Any reference herein to a Section or Subsection shall be considered a reference to such Section or Subsection of this Agreement unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable exhibit attached hereto unless otherwise stated. VIII. ADDITIONAL ACTIONS The Parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions and intent. IX. SUCESSORS AND ASSIGNS This Agreement shall be binding on and inure to the benefit of the Parties to it and their respective heirs, executors, administrators, legal representatives, successors and assigns. The Agreement may be assigned by the Company with the written consent of the City, which consent shall not be unreasonably withheld or delayed. THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:~¥ospeets\Golden Corral Agreement 3.doc Page 4 X. CITY COUNCIL AUTHORIZATION This Agreemem was authorized by resolution of the City Council authorizing the Mayor to execute this Agreement on behalf of the City, is within the City's authority to enter and is a binding obligation of the City. XI. ECONOMIC DEVELOPMENT CORPORATION AUTHORIZATION This Agreemem was approved by the Board of Directors of the EDC, authorizing the Presidem to execute this Agreement on behalf of the EDC, is within the EDC's authority to emer and is a binding obligation of the EDC. XII. SEVERABILITY In the evem any section, subsection, paragraph, semence, phrase, or word herein is held invalid, illegal, or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the Parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase, or word. The unenforceability of this Agreement, or any portion thereof as to any of the City or EDC shall not affect enforceability as the others. XIII. WAIVER The Company expressly acknowledges that by emering into this comract, the Company, its successors, assigns, vendors, grantees, and/or trustees, shall never construe this contract as waiving any of the requiremems of the Zoning Ordinance or Subdivision Controls in force by the City, except as herein agreed upon. XlV. APPLICABLE LAW TillS AGREEMENT SHALL BE CONSTRUED UNDER THE LAWS OF THE STATE OF TEXAS. VENUE FOR ANY ACTION UNDER THIS AGREEMENT SHALL BE THE STATE DISTRICT COURT OF DENTON COUNTY, TEXAS. THIS AGREEMENT IS PERFORMABLE IN DENTON COUNTY, TEXAS. The prevailing party in any litigation required to enforce this Agreement shall additionally recover costs and attorneys' fees. THE GOLDEN CORRAL RESTAURANT OF ~ COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:~Prospects\Golden Corral Agreement 3.doc Page 5 XV. NOTICES All notices required to be provided hereunder shall be sent certified mail, postage prepaid, addressed as follows: If to the Company: The Golden Corral Restaurant of The Colony 4 Remington Drive Highland Village, Texas 75077 Attn: Mike McDaniel If to the City: City of The Colony City Hall 6800 Main Street The Colony, Texas 75056 Attn: Ms. Patti Hicks, Interim City Manager, City of The Colony with a copy to: Gordon R. Hikel, City Attorney Hayes, Coffey & Berry, P.C. 1710 Westminster P.O. Box 50149 Denton, Texas 76206 If to EDC: City of The Colony Economic Development Corporation 6800 Main Street The Colony, Texas 75056 Attn: Tom Terrall, Director of Economic Development The address for notice may be changed by a notice under this section. THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:~rospects\Golden Corral Agreement 3.doc Page 6 XVI. TIME OF THE ESSENCE Time is of the essence in performance of this Agreemem. EXECUTED on this -/Ih day of ~ ,2001. THE CITY OF THE COLONY THE CITY OF THE COLONY a Texas Home Rule Murlicipality ECONOMIC DEVELOPMENT By: ~ Mam~ng, I~ayo; - ~ A1 ~ Acting City Secretary THE GOLDEN CORRAL RESTAURANT OF THE COLONY Mike McDaniel Its: THE GOLDEN CORRAL RESTAURANT OF THE COLONY - ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT T:~h'ospects\Goiden Corral Agreement 3.doc Page 7