MDD Resolution No. 201 RESOLUTION NO. 201
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVEI,OPMBNT DISTRICT' AUTHORIZING THE PRESIDENT" 10
HXECt TE AN INTERLOCAL AGRF.EMFNT WI'[if TH&CITY OF BAYTOWN FOR
FUNDING ECONOMIC DEVELOPMENT GRANTS AND AN ECONOMIC
DEVELOPMENT LOAN FOR KIWI GOLF LLC.AUTHORIZING PAYMITNf OP AN
AMOUN] NOT TO E:SCEIM ONE HUNDRED NINETY '111OUSAND AND NO1100
DOLLARS ($190,000.00); MAKING OTlIFR PROVISIONS RF.T,AI'ED 'THERETO;
AND PROVIDING FORT]IF EFFFC1 1V L DATE THLREOF.
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BE If RESOLVED BY THE BOARD OF DIRECTORS OF THE BAY"I'OW'N MUNICIPAL
DEV ELOPNIENT DISTRICT:
Section 1: That the Bomd of Directors of the.Baytown Municipal Development District
heichy finds that the expenditures authonzed herein are for improvements,which satisfy the proposes for
which the funds call be expended pursrtant to Choptca 377 of the Texas Local Government Code and/or
Section 3888.IO2 of Ow Special .District Local Lows Code. All required findings.pursuant Owrero aye
hereby declared to have been made and adopted as findings of theBomd of Directors.
Section 2: That the Board of Directors of the Baytown Municipal Development District
hereby authorizes the President to execute the Interlocal Agreement with the City of Baytown for funding
economic development grants and an economic development loan for KIWI Golf LLC. A copy of said
agreement is attached hetcio as Exhibit-A,- and incorporated heroin for all intents and purposes..
Section3: That The Board of Dircetors of the Baytown Municipal Development District
hereby authorizes the payment of an amount not to exceed ONE HUNDRED NINETY "fhIOUSAND
ANT,) NOMOn DOLI:ARS ($190MO.00) to the City of Baytown in accordance with the agreement
referenced in Section 2 hereo4'.
Section4: This resolution `,hill tape effiect immediately fwm and ahel its jo age by the
Eoaud of Directors of the B.iytown Municipal Development District.
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INTRODUCED, READ and PASSED by the the oars of it btois of the
Baytown Mumapal DaveTopmeni District. this the 3ie d p ui J'trttigr.'. <01 .
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APPROVED AS TO FORM:
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Exhibit "A"
AGREEMENT FOR FUNDING OF
ECONOMIC DEVELOPMENT GRANTS AND AN ECONOMIC
DEVELOPMENT LOAN
STATE OF TEXAS §
COUNTY OF HARRIS §
This Agreement for Funding of Economic Development Grants and an Economic Development
Loan (the "Agreement") is made by and between the CITY OF BAYTOWN, a municipal corporation
located in Harris and Chambers Counties, Texas, (the "City") and the BAYTOWN MUNICIPAL
DEVELOPMENT DISTRICT, created under Chapter 377 of the Texas Local Government Code, as
amended, (the "Act") and located in Harris County, Texas, (the "District"). For and in consideration of
the mutual covenants herein contained, it is agreed as follows:
Section 1. Representations and Warranties of District.
a) The District is engaged in an on-going effort to provide new resources to plan, acquire,
establish,develop,construct and/or renovate one or more development projects beneficial
to the District, which includes the incorporated limits of the City lying within Harris
County.
b) The District covenants that it shall actively work to productively coordinate its activities
with the City in an effort to reduce duplication of services.
c) The District represents and warrants that it has been properly created and is duly
authorized pursuant to the Act to enter into this Agreement.
Section 2. Description of Program.
The City, with the assistance of the District as herein specified, agrees to endeavor to enter into a
Chapter 380 Economic Development Agreement ("Chapter 380 Agreement") with KIWI Golf LLC
("KGL") for a development project to promote new or expanded business development in the District(the
'Project"). The Chapter 380 Agreement will be structured around benchmark accomplishments over
several years and will include up to six grants of FORTY THOUSAND AND NO/100 DOLLARS
($40,000.00)each and one five-year loan in the amount of ONE HUNDRED FIFTY THOUSAND AND
NO1100 DOLLARS ($150,000.00), provided certain performance measures are satisfied. Such
performance measures shall include, but not be limited to, the construction of headquarter facilities and
the creation of a minimum of forty(40) full-time jobs.
Should the Chapter 380 Agreement be executed by KGL and the City of Baytown, the District
agrees that the District shall provide funding for the following grants to KGL if KGL is not in breach of
the Chapter 380 Agreement and has satisfied the conditions listed hereinbelow:
Fiscal Year 2012-13 $40,000 on or before July 30, 2013, if KGL has leased warehouse space
within the District's territory,has at least$100,000 worth of inventory at
such location, which value shall be determined by the City, and has
created at least two (2)jobs within the District at the leased warehouse
facility;
Fiscal Year 2013-14 $40,000 on or before September 30, 2014, if KGL has attained 50%
completion of its headquarters within the District's territory which
aereement for Fundine of Economic Development
Grants and an Economic Development Loan. Page I
percentage of completion shall be determined by the City, and has
created at least ten(10)additional jobs within the District;
Fiscal Year 2014-15 $40,000 on or before October 15, 2014, if KGL has attained 100%
completion of its headquarters within the District's territory, which
percentage of completion shall be determined by the City;
Fiscal Year 2015-16 $40,000 on or before October 15. 2015, if KGL has commenced
production of golf tees within the District's territory, and has created at
least fifteen(15)additional jobs within the District;
Fiscal Year 2016-17 $40,000 on or before October 15, 2016, if KGL has and has created at
least fifteen(15)additional jobs within the District; and
Fiscal Year 2017-I8 $40,000 on or before September 30, 2017, if KGL has created at least ten
(10)additional jobs within the District.
It is expressly understood and agreed that funding for grants beyond the Fiscal Year 2012-13 is
expressly contingent upon the Board of Directors of the District appropriating funds for the Project. If
funds are not so appropriated, the District shall have no obligation to fund any grant for the year or years
in which the funds are not appropriated.
Section 3. Reports.
The City shall prepare and submit to the District within 120 days after the end of each fiscal year
during the term of this Agreement a verbal or brief written report describing the services performed by the
City pursuant to this contract during the previous year along with a summary of expenditures for the
previous fiscal year.
Section 4. Approvals.
The District understands, hereby directs and authorizes the City to make any Project clarifications
and/or modifications as may be necessary as determined by the City in its sole discretion.
Section 5. Funds to be provided by the District.
For and in consideration of the services to be provided by the City in furtherance of this
Agreement, the District shall tender funds to the City in an amount not to exceed ONE HUNDRED
NINETY THOUSAND AND NO/100 DOLLARS ($190,000.00) in Fiscal Year 2012-13. The District
will tender funds to the City in future fiscal years in accordance with Section 2. All payments required to
be made herein shall be payable on or before 30 days after the District receives an invoice therefor from
the City.
Section 6. Term.
This Agreement shall be effective on the date of execution of this Agreement by the City
Manager, and shall expire thirty (30) days after final completion and acceptance of the Project by the
City, unless sooner terminated by either patty hereto pursuant to the terms hereof.
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 Agreement 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 obligations under
Agreement for Funding of Economic Development
Grants and an Economic Development Loan Page 2
this contract as of the 30'" day following the receipt by the defaulting party of a notice describing such
default and intended termination, provided: (1)such termination shall be inetTective if within said 30-day
period the defaulting party cures or has commenced the cure of 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.
Upon the termination of this Agreement, both parties shall be relieved of their respective
obligations herein stated,except for those referenced in Section 9 hereinbelow. This Agreement shall not
be subject to termination for convenience.
Section 8. Force Majeure.
Any prevention, delay, nonperformance, or stoppage due to any of the following causes shall
excuse nonperformance for the period of any such prevention, delay, nonperformance, or stoppage,
except the obligations imposed by this Agreement for the payment of funds allocated for the District's
programs. The causes referred to above are strikes, lockouts, labor disputes, failure of power, acts of
God, acts of public enemies of this State or of the United States, riots, insurrections, civil commotion.
inability to obtain labor or materials or reasonable substitutes for either, governmental restrictions or
regulations or controls, casualties or other causes beyond the reasonable control of the party obligated to
perform.
Section 9. Refund and Payment upon Termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
City, the City hereby agrees to refund all unexpended, unappropriated monies previously paid by the
District to the City pursuant to this Agreement. If at the time of termination the District owes the City
monies,the District shall remit to the City the appropriate amount computed as of the effective date of the
termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
District, the District hereby agrees to pay the total amount committed in Section 5 hereof on or before the
effective date of the termination.
Section 10. Parties in Interest.
This contract shall bind and benefit the City and the District and shall not bestow any rights upon
any third parties.
Section 11. 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 or to exercise any right or remedy occurring as a result of any future
default or failure of performance.
Section 12. Compliance with Applicable Laws.
The parties hereto shall comply with all rules, regulations, and laws of the United States of
America,the State of Texas, and all laws, regulations, and ordinances of the City of Baytown as they now
exist or may hereafter be enacted or amended.
Section 13. Choice of Law; Venue.
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.
Agreement for Funding of Economic Development
Grants and an Economic Development Loan Page 3
Section 14. Notices.
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:
District
Baytown Municipal Development District
Attn: President, Board of Directors
P.O. Box 424
Baytown,Texas 77522-0424
Fax: (281)420-6586
City
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown,Texas 77522-0424
Fax: (281)420-6586
Section 15. Audits.
The City and the District may, at any reasonable time,conduct or cause to be conducted an audit
of the other parties' records and financial transactions. The cost of said audit will be borne by the entity
requesting the audit. The City and the District shall make available all of its records in support of the
audit.
Section 16. 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 17. Captions.
The captions of the sections and subsections, if any, of this Agreement are for convenience and
ease of reference only and do not define, limit, augment or describe the scope, content or intent of this
Agreement or of any part or parts of this Agreement.
Section 18. Entire Agreement.
This Agreement contains all the agreements of the parties relating to the subject matter hereof and
is the full and final expression of the agreement between the parties. Any oral representations or
modifications concerning this instrument are of no force or efTect excepting a subsequent modification in
writing signed by all the parties hereto.
Section 19. Assignment or Transfer of Rights or Obligations.
The City shall not sell, assign, or transfer any of its rights or obligations under this Agreement in
whole or in part without prior written consent of the District.
Section 20. Severability.
All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement,which shall continue
in full force and effect.
Agreement for Funding of Economic Development
Grants and an Economic Development Loan Page 4
Section 21. Authority.
The officers executing this Agreement on behalf of the parties hereby represent that such officers
have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties have made and executed this contract in multiple copies,
each of which shall be an original and effective on the_day of January,2013.
CITY OF BAYTOWN BAYTOWN MUNICIPAL
DEVELOPMENT DISTRICT
ROBERT D. LEIPER STEPHEN H. DONCARLOS
City Manager President
ATTEST: ATTEST:
LETICIA BRYSCH LETICIA BRYSCH
City Clerk Assistant Secretary
APPROVED AS TO FORM: APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR. IGNACIO RAMIREZ, SR.
City Attorney General Counsel
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Agreement for Funding of Economic Development
Grants and an Economic Development Loan Page 5