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R-13-08-08-G13 - 8/8/2013RESOLUTION NO. R -13-08-08-G13 WHEREAS, NIR Investments, Ltd. ("NIR") currently owns the property located at 115 Bagdad, ("Bagdad Tract") which it leases to BGS Acquisitions Corp., ("BGS") which is operating the Builders Gypsum Supply Company at such location; and WHEREAS, City would like to acquire the Bagdad Tract from NIR to promote economic development in the downtown area, and WHEREAS, NIR would like to sell the Bagdad Tract to the City in lieu of acquisition by eminent domain and acquire a tract of land located at 1302 Chisholm Trail, ("Chisholm Trail Tract"), which tract is a suitable location BGS to relocate its business; and WHEREAS, BGS would like to move its business from the Bagdad Tract to the Chisholm Trail Tract; and WHEREAS, the purpose of this Resolution is to approve an economic development program (the "Program") as contemplated by Chapter 380 of the Texas Local Government Code whereby NIR will sell the Bagdad Tract and purchase the Chisholm Trail Tract and BGS will relocate its business to the Chisholm Trail Tract; and WHEREAS, the City has agreed to provide performance based economic development grants to NIR to help defray a portion of the costs of acquiring the Chisholm Trail Tract and upgrading existing buildings and/or constructing new buildings required by BGS ("Improvements"); and WHEREAS, the City Council has determined that the Program described in Exhibit "A" will meet the goals set forth in said §380.001 and will be of mutual benefit to both parties, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the City offers to NIR a §380.001 Program in exchange for NIR selling the Bagdad Tract to the City, acquiring the Chisholm Trail Tract, and relocating BGS from the Bagdad Tract to the Chisholm Trail Tract, and 0112.1304; 00279249/sls BE IT FURTHER RESOLVED That the offer of the Program shall be as generally outlined in Exhibit "A" attached hereto and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 8th day of August, 2013. ATTEST: SARA L. WHITE, City Clerk ni AIJ"AN MCGRAW, Mayor City of Round Rock, Texas 2 EXHIBIT A ECONOMIC DEVELOPMENT PROGRAM The terms of the §380.001 Economic Development Program to be offered to NIR Investments, Ltd. ("NIR") in exchange for (1) NIR selling its property located at 115 Bagdad (the "Bagdad Tract") to the City, (2) acquiring the tract of land located at 1302 Chisholm Trail (the "Chisholm Trail Tract"); and relocating its tenant, Builders Gypsum Supply Company,("BGS") to the Chisholm Trail Tract, are as generally outlined below: 1. NIR's obligations: 1.1. NIR agrees to sell the Bagdad Tract to the City. 1.2. NIR agrees to acquire the Chisholm Trail Tract. 1.3. NIR agrees to relocate its tenant, BGS, from the Bagdad Tract to the Chisholm Trail Tract. 2. City's obligations: 2.1. City agrees to provide performance based economic development grants to NIR to help defray a portion of the costs of acquiring the Chisholm Trail Tract and upgrading existing buildings and/or construction new buildings (the "Improvements"). 2.2. City agrees to expedite City approval of required permits. 2.4. City agrees to make a payment to NIR of $450,000 on or before 45 days after the date that NIR acquires title to the Chisholm Trail Tract. 2.5. City agrees to make an additional payment of $ $550,000 on or before 30 days after NIR receives a Certificate of Occupancy for the Improvements. 3. The terms and provisions of this Program will be set out in more detail in the Economic Development Program Agreement of even date herewith. 3 ROUND ROCK. TEXAS PURPOSE MAORI PROSPERITY City of Round Rock Agenda Item Summary Agenda Number: G.13 Title: Consider a resolution establishing an Economic Development Program to encourage NIR Investments, Ltd. to relocate its tenant, BGS Acquisitions Corp., from property located at 115 Bagdad to 1302 Chisholm Trail Road. Type: Resolution Governing Body: City Council Agenda Date: 8/8/2013 Dept Director: Steve Norwood, City Manager Cost: Indexes: Attachments: Resolution Text of Legislative File 13-616 City of Round Rock Page 1 Printed on 8/5/2013