HomeMy WebLinkAboutCDCRes2014.08.03ANNA COMMUNITY DEVELOPMENT CORPORATION
RESOLUTION NO. ac iY-as v3 (Ch()
A RESOLUTION OF THE ANNA COMMUNITY DEVELOPMENT CORPORATION
APPROVING A PROJECT TO PROMOTE NEW OR EXPANDED BUSINESS
DEVELOPMENT, AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE
PROJECT, AND AUTHORIZING THE EXECUTION OF A LINE OF CREDIT TO
ADVANCE FUNDS TO EMPOWERED TRAINING CENTRE, LLC, ALL SUBJECT TO
APPROVAL OF THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS
WHEREAS, on December 10, 2013 the City Council of the City of Anna, Texas
approved Resolution No. 2013-12-10 authorizing the Anna Economic Development
Corporation ("EDC") to enter into the Economic Development Incentive Grant for Capital
Investment Performance Agreement ("Performance Agreement") with Empowered
Training Centre, LLC (the "Company"); and
WHEREAS, the EDC and the Company duly entered into the Performance Agreement;
and
WHEREAS, under Section 3(b) of the Performance Agreement the EDC and the
Company had intended that the Company would have access to a line of credit from the
Anna Economic Development Corporation; and
WHEREAS, the Board of Directors of the CDC has determined that it would be
appropriate if the line of credit was provided and administered by the Anna Community
Development Corporation instead of EDC; and
WHEREAS, the Board of Directors of the Anna Community Development Corporation
(the "CDC"), created by the City of Anna, Texas (the "City"), in accordance with Article
5190.6, V.A.T.C.S., Section 413, and now operating under Texas Local Government
Code, Chapter 505 (the "Act"), has determined that it is advisable and in the best
interests of the CDC to give notice of the intention of the CDC to undertake the following
project(s):
one or more expenditures in a total amount not to exceed $108,000 in the form of
advances on a letter of credit to one or more entities doing business in or near
the city under a contract with the CDC and or Anna Economic Development
Corporation ("Recipients") to assist with the Recipients' operating expenses
necessary for the purpose of expanding the operations of Recipients' business
and the expansion of business development within the city (the "Project"). The
Project will be financed from a grant the CDC was awarded by the USDA. The
costs of the Project are estimated not to exceed $108,000.
CDC OF ANNA, TEXAS RESOLUTION NO. 20N -09 '03 (co c) PAGE 1 OF 2
WHEREAS, the CDC desires to authorize the expenditure of funds of up to $108,000
under a project line of credit with the Recipient for the funding of the Project, subject to
certain conditions as set forth in this resolution; and,
WHEREAS, the CDC's funding of the Project is subject to the approval of the Project by
the City Council of the City of Anna ("City Council"); and,
WHEREAS, the CDC Board of Directors has investigated and determined that providing
the funding for the Project, subject to the aforementioned conditions, is in the CDC's
best interest and will promote new and expanded business development in the City;
and,
WHEREAS, it is hereby officially found and determined that the meeting at which this
resolution was passed, was open to the public and public notice of the time, place, and
purpose of said meeting was given, all as required by Chapter 551, Texas Government
Code;
NOW THEREFORE, BE IT RESOLVED BY THE ANNA COMMUNITY
DEVELOPMENT CORPORATION, THAT:
Section 1. Recitals Incorporated
The recitals set forth above are incorporated herein for all purposes as if set forth in full.
Section 2. Approval of Project and Authority to Expend Funds and Authority to
Enter Into Amended Performance Agreement and to Execute a Line of Credit
The CDC approves the Project and authorizes the expenditure of funds of up to
$108,000 in accordance with a line of credit to Empowered Training Centre, LLC. for
the expansion of Recipient's business. The CDC authorizes the CDC President to
execute the Amended Performance Agreement as stated above, on the CDC's behalf,
subject to form of same by the CDC's legal counsel, and any necessary approval by
the City of Anna City Council. The CDC further authorizes the CDC President to
execute the above -referenced line of credit on the CDC's behalf, which shall serve as
an addendum to the Amended Performance Agreement. Said expenditure by the CDC
will be subject to City Council approval by resolution after the City Council gives the
resolution at least two separate readings, and subject to approval as to the substance
of the line of credits by the CDC's Chief Administrative Officer and approval as to the
form of said line of credit by the CDC's legal counsel.
Section 3. Form of Notice
Attached hereto as Exhibit A is a form of Notice of Project ("Notice"), which shall be
published without unnecessary delay after the adoption of this resolution, in
substantially the same form and substance as attached hereto.
CDC OF ANNA, TEXAS RESOLUTION NO. �D I y' 0g>-o,3 Cc vc) PAGE 2 OF 2
Section 4. Publication of Notice
Said Notice shall be published in a newspaper, as defined in Texas Government Code
Sec. 2051.044, of general circulation in the area of the City of Anna, Texas.
PASSED AND APPROVED by the Anna Community Development Corporation this
day of , 2014.
APPROVED:
J n Houcek, CDC President
CDC OF ANNA, TEXAS RESOLUTION NO. 1�261K -C,r -0 ����� PAGE 3 OF 2
ANNA COMMUNITY DEVELOPMENT CORPORATION
NOTICE OF PROJECT
NOTICE IS HEREBY GIVEN that the Anna Community Development
Corporation (the "CDC"), a non-profit corporation created pursuant to the Development
Corporation Act of 1979, Article 5190.6, Vernon's Texas Civil Statutes, Section 413, and
now operating under Texas Local Government Code, Chapter 505 (the "Act"), intends to
make one or more expenditures in a total amount not to exceed $108,000 in the form of
advances on a line of credit to one or more entities doing business in or near the city
under a contract with the CDC and or Anna Economic Development Corporation
("Recipients") to assist with the Recipients' operating expenses necessary for the
purpose of expanding the operations of Recipients' business and the expansion of
business development within the city (the "Project"). The Project will be financed from a
grant the CDC was awarded by the USDA. The costs of the Project are estimated not to
exceed $108,000.
EXHIBIT A
AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL
INVESTMENT
PERFORMANCE AGREEMENT
This Amended Economic Development Incentive Grant for Capital Investment
Performance Agreement (this "Amended Agreement") is made and entered into by and
between the Anna Economic Development Corporation, the Anna Community
Development Corporation, and Empowered Training Centre, LLC (the "Company").
WITN ESSETH :
WHEREAS, on December 10, 2013 the City Council of the City of Anna, Texas
approved Resolution No. 2013-12-10 authorizing the EDC to enter into the Economic
Development Incentive Grant for Capital Investment Performance Agreement with
Empowered Training Centre, LLC ("Performance Agreement"), a copy of which is
attached hereto as Exhibit A; and
WHEREAS, the Anna Economic Development Corporation and the Company duly
entered into the Performance Agreement; and
WHEREAS, under Section 3(b) of the Performance Agreement the Anna Economic
Development Corporation and the Company had intended that the Company would
have access to a line of credit from the Anna Economic Development Corporation; and
WHEREAS, the parties to this Amended Agreement have agreed that it would be in
said parties' collective interest if the line of credit was provided and administered by the
Anna Community Development Corporation instead of the Anna Economic
Development Corporation; and
WHEREAS, the Anna Community Development Corporation has found that entering
into this Amended Agreement will promote new and expanded business development in
the City;
NOW, THEREFORE, in consideration of the foregoing, the mutual benefits, promises
and undertakings of the parties to this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto covenant and agree as follows:
Section 1. Recitals Incorporated.
The above -stated recitals are incorporated into this Agreement as if set forth in full and
constitute material representations by the Company and Anna Economic Development
Corporation to induce the other party to enter into this Agreement.
AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE
AGREEMENT
PAGE 1 OF 4
Section 2. Incorporation and Amendment to Performance Agreement.
The Performance Agreement shall continue to be in full force and effect in all respects
and is incorporated herein by reference with the exception that Section 3(b) of the
Performance Agreement shall be amended to read as follows:
(b) The Anna Community Development Corporation will make a line of credit
available in the amount not to exceed $4,500 per month for 24 months which
would be paid back with interest and the details of such line of credit outlined
in a separate document that will serve as an addendum to this Agreement,
as amended. Providing the line of credit will be the sole obligation of Anna
Community Development Corporation under this Agreement, as amended.
IN WITNESS WHEREOF, the parties hereto have executed this Amended Agreement.
Anna Economic Development Corporation
By: .
Alonzo Tutson, its Vice - President
STATE OF TEXAS §
COUNTY OF COLLIN §
o� Lauretta Kay Blacketer
� � 04/01/2017My an Expiroa
Before me, the undersigned notary public, on the ',day of e%J 2014,
personally appeared Constance Ann Stump known to me (or proved to me) to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that she
executed the same in her capacity as President of the Anna Economic Development
Corporation and on behalf of the Anna Economic D velopment Corporation.
Nota Public, State of a as
[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]
AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE
AGREEMENT
PAGE 2 OF 4
Anna Community Development Corporation
By:
_ a4:�� q--C�
i6fin Houcek, its President
STATE OF TEXAS § !; �
moo: Lauretta Kay Bladceteir
§ My Commission Expires
COUNTY OF COLLIN � 04/01/2017
Before me, the undersigned notary public, on the Ici ay of ak , 2014,
personally appeared John Houcek, known to me (or proved to me) to be the person whose
name is subscribed to the foregoing instrument and acknowledged to me that he executed the
same in his capacity as President of the Anna Community Development Corporation and on
behalf of the Anna Community Development Co or 'on.
Nota Public, State of Texis
AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE
AGREEMENT
PAGE 3OF4
Empowered Training Centre, LLC
1
By.
Mu Gillani, its Director and Manager
STATE OF TEXAS Lauretta Kay Blacketer
§ * i My Commission Expires
` i 04/01/2017
COUNTY OF COLLIN OF
Before me, the undersigned notary public, on the 19Aday of , 2014,
personally appeared Mubina Gillani known to me (or proved to me) to be th(6 person whose
name is subscribed to the foregoing instrument and acknowledged to me that she executed the
same in her capacity as Director and Manager of Empowered Training Centre, LLC and on
behalf of Empowered Training Centre, LLC.
CW
4n0tyPublic, State of e s
AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE
AGREEMENT
PAGE 4OF4
ADDENDUM TO AMENDED ECONOMIC DEVELOPMENT INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE
AGREEMENT
This Addendum: (1) confirms the Anna Community Development Corporation's (the "CDC") willingness to
extend to Empowered Training Centre, LLC (the "Company") an unsecured line of credit (this "LOC") not to exceed
$4,500 per calendar month in accordance with Section 3(b) of the AMENDED ECONOMIC DEVELOPMENT
INCENTIVE GRANT FOR CAPITAL INVESTMENT PERFORMANCE AGREEMENT ("Amended Agreement")
entered into between the Anna Economic Development Corporation, the CDC, and the Company; and (2) sets forth
the terms of this LOC.
This LOC is available to the Company with no obligation to repay until the expiration of 2 years after the date
that the Company executes this Addendum as shown below. Upon expiration of said 2 year period, and beginning
with the first full calendar month following said expiration, the Company shall make equal monthly installment
payments of principal and interest to the CDC for 24 months until all principal advanced under this LOC and interest
has been repaid. Each monthly payment is due on or before the 10t" day of each calendar month.
Advances from this LOC must be requested by the Company in writing. The CDC will fund advances by
checks made payable to the Company. The minimum amount of each advance is $500. The maximum amount that
may be advanced during any calendar month is $4,500. Interest shall apply to all outstanding principal at the rate of
2% from the time of each advance. The schedule attached as Exhibit A is an example that shows the amount of the
payments to be made by the Company if the first advance occurs on October 8, 2014 and the maximum monthly
amount is advanced each month for 24 months.
It shall be a condition precedent to obtain any advance from this LOC that the Company be in full
compliance with its obligations under the Performance Agreement, including but not limited to its Obligation to
Maintain. If the Company fails to fully comply with any of said obligations, or if the Company materially breaches the
Performance Agreement, the CDC may at its sole discretion elect to suspend or terminate advances under this
LOC, in which case the CDC will provide written notice of termination and the Company must repay all amounts
under this LOC and not repaid to the CDC plus interest at the rate of 2% from the time of each advance. If so
terminated by the CDC, the payment is due within 30 days of the date of said termination notice or a longer period
as determined solely by the CDC.
By executing this Addendum, the CDC and the Company agree that this Addendum is in satisfaction of and
accords with Section 3(b) of the Performance Agreement.
Anna Community Development Corporation
By: _ r 4-0-Vc
J4Yn Houcek its President
Date: P19-011q
Empowered Training Centre, LLC
By:.
Pfdbine)Gillani, its Director and Manager
Date: 01
EXHIBIT A - Example Schedule of Repayment
Pavment
interest
Interest
Principal
Deferred
No.
Date
Rate
Accrued
Payment
Balance
Interest
Total C'::ed
`
AM
AL
11314
2.00%
189.37
0.00
4.500.00
189.37
4.889.37
2
1218:14
2.00%
7.40
0.00
9.000.00
198 71
9.198.777
3
118.'15
2.00%
15.29
0.00
13.500.W
212 08
13.712.08
4
218115
2.0096
22.93
0.00
18.000.W
234 W
18.234.99
5
T8115
2.00%
27.82
0.00
22.500.W
282,81
22,782.81
8
48'15
2,00%
38.22
O.W
27.00D.W
3W.83
27,300.93
7
518115
2.00%
44.38
O.W
31.5W.W
345.21
31.845.21
8
818115
2.0C%
53.51
0.00
38.000M
398.72
38.398.72
9
718115
2.W%
59.18
0.W
40.500.W
457-90
40.957.90
10
818115
Z00%
88.79
O-W
45.000.W
528.89
45.528.89
11
"'15
2.0C%
78.44
0.W
49.E00.W
80313
50.103.13
12
103115
2.0C%
81.37
0.00
54.000.00
884 50
54,884.50
13
1118115
2.00%
91.73
O.W
58.500.W
778 23
59.278.23
14
1218115
2.00%
98.18
0.00
83.000.W
872.39
83.872.39
15
118118
2.00%
107.01
0.W
87.5W.W
979.40
88.479.40
18
2/8118
2,00%
114.05
0.00
72.000.00
1094 C8
73.094.00
17
3,'8118
2.0C%
114.41
O.W
78.5W.00
1208.47
77.708.47
18
418118
2.0096
129.95
0.00
81.000.W
1338.42
$2,338.42
19
V 8118
2,00%
133.15
0.W
85.5w. W
147157
88.971.57
20
818118
2.00%
145.23
O.W
94.5W.W
1818.80
98.1 Mao
21
718118
2.W%
155-34
0.00
99.0O0. W
177214
100.772.14
22
818118
2.00%
188.18
0 00
103.E00.W
194030
105.440.30
23
918118
2.00%
175.81
0.00
103.500.00
211811
105.818.11
24
1a'8'18
2,00%
170.14
O.CO
108.0W.00
2288 25
110.288.25
25
1118&18
2.W%
183.45
4.594.35
105.875.3E
O-W
105.875.35
28
12,81,16
2.00%
174.04
4,895.90
101.353.49
0.00
101,353.49
27
118117
2.00%
172.18
4,895.79
98.829.88
0 00
98.829.88
28
2'8'17
2.00%
164.48
4.89E-95
92,298.39
000
92.298.39
29
318117
2.00%
141.81
4.898.11
87.743.89
0 CO
87, 743.89
30
48117
2.00%
149.04
4,89E-45
83.127.48
O.CO
83.197.48
31
VW17
2.00%
138.78
4.895.81
78.838.83
0 00
78.038.83
32
818117
2.00%
133.58
4.89E-50
74.078.71
coo
74,078.71
33
718117
2.00%
121.77
4.89E-88
89.E02.82
0-W
89.502.82
34
818117
2.00%
118.06
4.895.54
84,925.34
0 CO
84.925.34
35
W8117
2.W%
110.28
4,89E-70
W.339.92
000
80.339.92
38
M'17
2.W%
9919
4.895-W
55.743.25
O CO
55.743.25
37
1118117
2.00%
94.89
4.895.75
51,142.19
0 00
51.142.19
38
12'8117
2.00%
84.07
4.89E-91
48.5W.35
O.CO
48,530.35
39
118118
2.00%
79.04
4.895.79
41.913.W
0 00
41.913.80
40
218118
2.00%
71.20
4.895.96
37,268.84
000
37.288.84
41
18118
2.00%
57.21
4,8W-13
32.849.92
O CO
32.849.92
42
4818
2.00%
55.48
4.895 42
28.009.98
O.CO
28.009.98
43
518118
2.00%
48.04
4.895.EO
23.380.40
OM
23.360.40
44
818'18
2.W%
39.88
4.89E-47
18.704.61
0 c0
18.704.81
45
718118
2.W%
30.75
4,895-65
14.039.71
O CO
14.039.71
48
818118
2.0C%
23.85
4.89E.51
9.388,0E
0 CO
0.388.05
47
9.'8'18
2.00%
15.91
4,895.74
4.888.22
0 C0
4.888.22
48
1 OW 8
2.00%
7.71
4.895.93
0.00
0 w
0.W