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MDD Resolution No. 504 (Item 2.c.) RESOLUTION NO. 504 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE, AND THE ASSISTANT SECRETARY TO ATTEST TO, AN ECONOMIC DEVELOPMENT CONTRACT WITH THE BAYTOWN AREA/WEST CHAMBERS COUNTY ECONOMIC DEVELOPMENT FOUNDATION; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED THREE HUNDRED FIFTY THOUSAND AND NO.1100 DOLLARS ($350,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT: Section l: That the Board of Directors of the Baytown Municipal Development District hereby finds that the expenditures authorized herein are for improvements, which satisfy the purposes for which the funds can be expended pursuant to Chapter 377 of the Texas Local Government Code and/or Section 3888.102 of the Special District Local Laws Code. All required findings pursuant thereto are hereby declared to have been made and adopted as findings of the Board of Directors. Section 2: That the Board of Directors of the Baytown Municipal Development District hereby authorizes the General Manager to execute, and the Assistant Secretary to attest to, an Economic Development Contract between the Baytown Area/West Chambers County Economic Development Foundation and the Baytown Municipal Development District. A copy of the agreement is attached hereto as Exhibit"A,"and made a part hereof for all intents and purposes. Section 3: That the Board of Directors of the Baytown Municipal Development District hereby authorizes the payment of an amount not to exceed THREE HUNDRED FIFTY THOUSAND AND NO'100 DOLLARS ($350,000.00) to the Baytown Area/West Chambers County Economic Development Foundation in accordance with the agreement referenced in Section 2 hereof. Section 4: This resolution shall take effect immediately from and after its passage by the Board of Directors of the Baytown Municipal Development District. INTRODUCED, READ and PASSED by the affirmative oteVhand of Directors of the Baytown Municipal Development District, this the 131" day ov beCH LES President 1 �s ANGE A jSO A r APPROVE tsz DF SCOTT L -MOND, General Counsel R-Ordinances and ResolutionstiResolution Drafts.MDD 2025-1 1-13 Res-Econ D Agt-B-West Chambers Cnty EDF-SL.doc Exhibit"A" ECONOMIC DEVELOPMENT CONTRACT STATE OF TEXAS § COUNTY OF HARRIS This Economic Development Contract(the"Contract") is effective as of the I''day of October,2025, by and between the BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, a political subdivision of the State of Texas, and the City of Baytown, ("District,") and THE BAYTOWN AREA/WEST CHAMBERS COUNTY ECONOMIC DEVELOPMENT FOUNDATION. a Texas non-profit corporation,( "Foundation"). WITNESSETH: WHEREAS, the District desires to investigate and undertake ways and means of promoting prosperous development of business, industry and commerce within Baytow n,and further desires to promote the location and development of new businesses and industries in Baytown as well as the maintenance and expansion of existing businesses, and WHEREAS, the Foundation was formed for the purposes, among others, of promoting and encouraging,or causing to be promoted and encouraged,the formation of new busine,,ses and the expansion of existing businesses,the relocation of existing businesses,and the general diversification of the economy of and in Baytown and West Chambers County: and WHEREAS,the District desires to contract w ith the Foundation to prm,ide,or cattle to be provided, economic development ser%ices herein described in the Baytmvn area: and WI iFRI:AS,the Foundation is willing, in exchange for the consideration herein provided,to provide, or cause to be pro%ided, the economic development services desired by the District which are intended to expand the tax bawe and the employment base of Baytown and the surrounding area: and WHEREAS,the formation of new businesses and the expansion of existing businesses in Baytown would benefit the District by the resultant expansion of both the tat base of the District and the employ ment base: and W HE RFAS,the District and the Foundation agree that in order to foster and promote competition,to assure the integrity of the competitive process.and to protect proprietary or innovative business strategies and concepts, information and data developed,generated,or received by the Foundation should remain privileged and confidential except as herein provided: NOW THERE:FORE, for and in consideration of the premi wee and mutual cov enants herein contained. it is agreed as follows- Section 1. Representations and Warranties of Foundation. Foundation hereby represents and warrants as follows: a. The Foundation is engaged in an ongoing effort to attract new businesses to the Baytowt�`West Chambers Count) area and to encourage the retention and expansion of existing businesses in the Baytown'West Chambers Count} area. b. The Foundation covenants that it shall actively work to productively coordinate its activities with City of Baytown staff and area economic development organizations in an effort to optimize services. Economic Development Contract. Pace I C. The Foundation represents and warrants that it is a non-profit economic development organization, the principal purpose of which is the promotion of economic development in the Baytown Vest Chambers County area and certain unincorporated areas of Harris County. Section 2. Services to be Provided by Foundation. The Foundation shall provide the following economic development services;provided such services are designed (i)to promote or develop new or expanded business enterprises that create or retain primary jobs and/or required or suitable for entertainment ande'or tourist purposes or (ii) to promote new or expanded business development in the District consistent with Section 3888 102 of the Texas Special District Local Laws Code: a. Citv-wide Redevelooment Assistance. The Foundation shall provide assistance and guidance in developing programs designed to assist and promote the efforts of local businesses and entrepreneurs to form new business ventures or to expand existing business ventures. The Foundation, through its subsidiary non-profit organization Cedar Trinity Corporation, will also provide assistance and guidance in the City's acquisition and disposition of land, related assets, and other projects in targeted areas. b. Marketinu and Recruitment Activities. The Foundation shall provide assistance and guidance in organizing and conducting coordinated marketing programs to positively influence the attitudes of local, national, and international business decision makers by drawing attention to the Baytown area's strengths and potential. The marketing program shall target groups and senior executives most likely to result in business relocations and expansions in the Baytown area. Additionally,the Foundation shall provide assistance and guidance in developing programs designed to encourage the dissemination,on a national and international level, of accurate and detailed information oil business and economic development opportunities in the Baytown area. Work items include: I. Collaborating in formulating a strategy designed to effectively reach targeted companies to educate them about the potential of locating in Baytown: 2. Assisting in the development and deployment of an incentive framework that attracts and assists targeted companies locating in specific areas of the city and its extraterritorial jurisdiction (ET1); 3. Collaborating in preparing and disseminating "Elevate Baytown" messaging and material that appropriately conveys the facts regarding the potential in the Baytown area; 4. Traveling to meet with decision makers to discuss Baytown, and 5. Assisting in implementing elements of the City of Baytown Economic Development Strategic Plan (BEDSP) and Economic Prosperity Roadmap. (EPR). C. Incubator without Walls ("IWOW"). The Foundation will provide assistance to start-up, minority-owned, women-owned, and disadvantaged business enterprises through the coordination and application of existing programs from multiple sources. The IWOW will be interoperable with City of Baytown business development programming. d. Public Policv. The Foundation shall develop and provide advice on public policy and programs for action by the State of Texas, Harris County, the City of Baytown,Chambers County, and other agencies that would facilitate and encourage economic growth. The Foundation may develop advice on policy and budgetary priorities,tax abatement,desirable regulatory chan�ae�,and incentives likely to result in business relocations and expansions in the Bay to..n area Economic Development Contract. Page e, Cooueration with Other Entities. The Foundation shall agree to participate in joint projects of mutual benefit with or supply appropriate information requested by other economic development organizations. f. Business Intelligence and Data Analvtics Clearinghouse. The Foundation shall function as a provider of specialized research, business intelligence, and clearinghouse for up-to-date statistical,economic,government,educational,labor::workforce information. This work item shall include funding for upgrades in technical capabilities. g. Work Force Development and Talent Attraction. The combination of an aging workforce, decreasing working-age population, workplace hybridization, and an increase in local and national demand for skilled employees serves to set a high priority on this work item. The urgency of identifying,developing,and sustaining an appropriate workforce and labor shed is heightened and shared by the City of Baytown,area school districts, Lee College, Harris, and Chambers Counties,and area businesses and industries. Because of this.the Foundation is facilitating workforce preparedness partnerships, the Economic Development Human Resource Network(EDH RN)comprised of members from all stakeholders mentioned above. h New Market Tax Credits, EB-5, and Oualified Opportunity Zone Proeram Research. Development, and Implementation. The Foundation shall conduct ongoing analyses of the benefits, processes,and requirements of these programs. This will be done with a focus on encouraging targeted redevelopment and new development in qualified Census sections of Ba)town and certain areas in the ETJ. i. Trade Shows. The Foundation shall participate in trade shows promoting one or more of tile following target industries: I. Advanced Manufacturing, 2. Corporate Headquarters+ Regional Offices 3. Petrochemicals/Energy, and 4. Transportation and Logistics. 5. Life Sciences 6. Retail and Mixed Used Livable Centers j. Phase III Research. Continuing and building upon previous studies,the Foundation will engage the services of consultants andlor acquire appropriate anal)tics platforms to further define the assets and deficiencies of the area in terms of attracting new residential, commercial, retail, and workforce development. with special focus on analyses supportive of Project Vector. The goal of this research is to provide the database,tools,and real-time capacity necessary to effectuate desired development. k. Marketing Program Implementation. In as much as the marketing program 4vill include elements that "ill be utilized in the attraction of both primary and service sector jobs, funding of this program will be allocated in such a manner as to ensure the District's funds are used only in the preparation of basic material and attraction ofprimary jobs. Funding for non-District eligible activities will be flu}ded with other Foundation monies. Work tasks shall include: • formulation of a strategy targeting companies that most clearly align with the BEDSP and EPR, local socioreconomic profile, and regional assets; ■ developing incentive plans and evergreen collateral materials; • traveling to meet decision makers and site selection consultants. and Economic Develooment Contract, Page 3 ■ design and redesign of the Foundation's website to align with the Elevate Baytown Strategy. In this section, the term "primary job" means a job that is: a. available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets infusing new dollars into the local econonty, and b. included in one of the following sectors of the North American Industry Classification System (NAICS): NAICS Sector# Description Ill Crop Production 112 Animal Production 113 Forestry and Logging l 141 1 Commercial Fishing I l5 Support Activities for Agriculture and Forestry 211-213 Mining 221 Utilities 311-339 Manufacturing 42 Wholesale Trade 48-49 Transportation and Warehousing 51 (excluding 512131 and Information(excluding movie theaters and drive-in theaters) 512132) Securities,Commodity Contracts,and other Financial Investments and 523-525 Related Activities: Insurance Carriers and Related Activities: Funds, Trusts,and Other Financial Vehicles 5413,5415,5416, Scientific Research and Development Services 5417,and 5419 551 Management of Companies and Enterprises 922140 Correctional Institutions Section 3. Foundation Reports. The Foundation shall prepare and present to the District, as soon as practicable after the end of the Foundation's fiscal year, a written and verbal report describing in detail the services performed by the Foundation pursuant to this contract during the preceding fiscal year. Kev Performance Indicators.:01.1tnuts Investment Attraction: The amount of investment attracted to Baytown'Barto«n ETJ. Number of New Businesses:The number of new businesses initiated or expanded with the assistance of the Foundation in Baytown and Baytown ETJ. Outcome Measures: • Collaborative Projects:Track the number and success ofjoint projects within Baytown and Baytown ETJ (partnerships with COB, Chambers County, Improvement Districts, etc ) • Increase in Tax Base:: Measure the growth in tax revenues generated from expanded and retained business opportunities Economic Development Contract. Page 4 • Regional Competitiveness: Assess the region's competitiveness compared to other similar regions. • Job Quality: Evaluate the quality of jobs created or retained related to actual wages, benefits, etc. • Business Perception: Gauge how Baytown.Baytown ETJ is perceived by the private sector as a favorable place for investment and expansion Section 4. Fees. For and in consideration of the services to be performed by the Foundation and compliance with the terms of this contract and subject to the other provisions of this section, the District agrees to pay the Foundation an amount not to exceed THREE HUNDRED FIFTY THOI'SAND AND NOS 100 DOLLARS ($350,000.00) based upon the following: October 1,2025 - December 31. 2025 December 31,2025 $61500 a -h January 1,2026- March 31, 2026 February 31,2026 $62,500 {lump sum payment,) April I,2026-June 30,2026 April 30.2026 $62,500 July 1,2026- September 30,2026 July 31,2026 $62,500 Section 2. Subsection Descripfion orservice Due Date Amount Not to Fxcccd Trade Shows Attend and booth space $10,000 0 k Economic Development Strategic Plan. Economic 30 days after receipt of Prosperity Roadmap service or receipt of invoice, $5,000 Phase II[ Research whichever is later $75,000 n Marketing Pro.ram Implementation $ 10,000 Section 5. Allocated Funds. Payments by the District to the Foundation are subject to funds being appropriated by the District for the purpose of purchasing the services provided in this contract. Section 6. Term. This contract shall be effective for the period from October 1, 2025. to September 30, 2026. It is specifically agreed that the Foundation shall not be obligated to perform any services under or pursuant to this contract and the District shall not be obligated to make any payments for services performed after the expiration of that period. The continuation of this Contract beyond the current fiscal year of the District is subject to and contingent upon sufficient funds being appropriated, budgeted,and otherwise made available by the District. The district may terminate this Contract, and Foundation waives any and all claims(s) for damages, effective immediately upon receipt of written notice if for any reason the District's funding is not appropriated or is withdrawn, limited, or impaired. Economic Development Contract, Page 5 Section 7. Termination for Cause. A party may terminate its performance under this contract only upon default by the other party. Default by a party shall occur if the party fails to perform or observe any of the terms and conditions of this contract required to be performed or observed by that party. Should such a default occur, the party against whom the default has occurred shall have the right to terminate all or part of its duties under th is contract as of the 3011, day following the receipt by the defaulting party of a notice describing such default and intended termination, provided: (1)such termination shall be ineffective if within said 30-day period the defaulting party cures the default,or(2)such termination may be stayed.at the sole option of the party against whom the default has occurred, pending cure of the default. Section 8. Option to Renew. At the expiration of the initial term of this agreement,the Parties have the option to mutually agree to renew this contract for an additional term of three (3) years under the same terms and conditions outlined herein. Section 8. Independent Contractor. The relationship of the Foundation to the District shall be that of an independent contractor. The District shall have no authority to direct the day-to-day activities of any of the Foundation's personnel decisions, and shall have no other rights to internal working papers or other information or data than the District would have to any other independent contractor providing specific services(e.g., museum services, weed cutting, legal services,auditors). Without in any way limiting the generality of the foregoing, it is specifically acknowledged and agreed that Foundation has bargained for the confidentiality of all internal information and data that it generates,other than that required to be submitted to the District pursuant to sections 3 and 13 of this contract, in order to foster and promote competition, to assure the integrity of the competitive process.and to protect proprietary or innovative business strategies and concepts. Section 9. Parties in Interest. This contract shall bind and benefit the District and the Foundation and shall not bestow any right upon any third parties Section 10. Non-waiver. Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce, by an appropriate remedy,strict compliance with any other obligation hereunder oar to exercise any right or remedy occurring as a result ofany tulu.c default or failure of performance. Section 11. Applicable Laws. This contract is subject to and shall be construed in accordance with the laws of the State of Texas, the laws of the federal government of the United States of America and all rules and regulations of any regulatory body or officer having jurisdiction. This contract is performable in Harris County, Texas. Section 12. Notices. Economic Develooment Contract. Page 6 All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or,if earlier,on the third day following deposit in a United States Postal Service post office or receptacle with proper postage affixed(certified mail,return receipt requested)addressed to the respective other party at the address described below or at such other address as the receiving party may have theretofore prescribed by notice to the sending party: FOUNDATION Baytown Area/West Chambers County Economic Development Foundation Attn: President.,:CEO 1300 Rollingbrook, Suite 505 Baytown, Texas 77521 Fax. (281)422-7682 DISTRICT Baytown Municipal Development District Attn: General Manager P. O. Box 424 Bayto%N n, Texas 77522-0424 Fax: (281)420-6586 Section 13. Audits. The Foundation shall provide the District, w ithin ninety (90)days of the close of the Foundation's fiscal year, its audited annual financial statements. Section 14. Ambiguities. In the event of any ambiguity in any of the terms of this contract, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. Section 15. Entire Agreement. This Contract contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement bet«een the parties. Section 16. Assignment or Transfer of Rights or Obligations. The Foundation shall not sell,assign,or transfer any of its rights or obligations under this contract in whole or in part without prior written consent of District, nor shall the Foundation assign any monies due or to become due to it hereunder %%ithout the previous consent of the District. Section 17. Severability. All parties agree that should any provision of this contract be determined to be invalid or unenforceable,such determination shall not affect any other term of this contract, which shall continue in frill force and effect. [Remainder of page intentionally left blank] Economic Development Contract. Page 7 IN WITNESS WHEREOF,the parties have made and executed this contract in multiple copies, each of which shall be an original, on this the day of November, 2025. BAYTOWN MUNICIPAL DEVELOPMENT BAYTOWN AREA/WEST CHAMBERS DISTRICT COUNTY ECONOMIC DEVELOPMENT FOUNDATION JASON REYNOLDS, General Manager (Signature r (Printed Name) (Title) ATTEST: ATTEST• ANGELA JACKSON, Assistant Secretary (Si att re) �nf"-�-� (Printed Name) (Titl ) APPROVED AS TO FORM: SCOTT LEMOND, General Counsel APPROVED AS TO FUNDING AVAILABILITY-. TERESA MCKENZIE,'Director of Finance R Karen Hamer D-cuinem,F le%Ctt}ComeiI Muntctpa.De,6:01nent De,tnct'Contractb'-Contracu 2021.EDF AMILka4 Con[raLT COB 2021 -2022 Cornba`cd doc Economic Development Contract. Pa.-e 8