City of Canyon Commission Meetings

AGENDA NOTICE OF MEETING Notice is hereby given that the governing body of the City of Canyon will meet at 5:30 p.m. on the 18th day of May, 2015, in the Commission Chambers of City Hall at 301 16th Street in the City of Canyon to discuss the following agenda items: 1. Call to Order. 2. Invocation. 3. Pledge of Allegiance. 4. Approval of the Minutes of the Meeting of May 4, 2015. 5. Public Forum – Comments from Interested Citizens. 6. Consider and Take Appropriate Action on Resolution No. 09-2015, Canvassing the Returns and Declaring the Results of the May 9, 2015 General Election. 7. Oath of Office for Mayor Place 1 and Commissioners Place 2, 3, 4 and 5, Duly Elected for Purposes of the May 9, 2015 General Election. 8. Consider and Take Appropriate Action on Election of Mayor Pro-Tem for the City of Canyon Commission. 9. First Reading of Resolution No. 08-2015, Conveying Property Located on US Highway 60 to Lone Star Milk Producers for a New Construction Dry Powder Milk Plant. 10. Executive Session Pursuant to Texas Government Code §551.072 Real Property, §551.087 Economic Development Negotiations, and §551.074 Personnel (Planning and Zoning Commission) 11. Consider and Take Appropriate Action on Items Discussed in Executive Session. 12. Adjournment. Randy Criswell, City Manager I certify that the above Notice of Meeting was posted on the bulletin board of the Civic Complex of the City of Canyon, Texas on the 15th day of May 2015. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting April 20, 2015 The City Commission of the City of Canyon met in regular session at 5:30 p.m. in the City Commission Chambers of the Civic Complex. Mayor Quinn Alexander presided over the meeting with the following Commissioners in attendance: Mayor Pro-Tem Jed Welch, Gary Hinders, and David Logan. Commissioner Justin Richardson was unable to attend. Also present were the following City Staff: City Manager Randy Criswell, City Secretary Gretchen Mercer, Assistant City Manager for Special Projects Jon Behrens, Business and Community Development Director Evelyn Ecker, Code Enforcement Director Danny Cornelius, Parks and Recreation Director Brian Noel, Swimming Pool Manager Andrew Neighbors, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Alexander called the meeting to order at 5:40 p.m. Item 2. Invocation. Mayor Pro-Tem Welch gave the invocation. Item 3. Pledge of Allegiance. Pack 4 Cub Scouts Garrett Dressler and Caleb Mata, and Troop 4 Boy Scouts Hayden Mayfield and Jackson Wesbrooks led the Pledge of Allegiance. Item 4. Approval of Minutes of the Meeting of April 20, 2015. Commissioner Logan moved, duly seconded by Commissioner Hinders, to approve the minutes of April 20, 2015. Motion carried unanimously. Item 5. Public Forum – Comments from Interested Citizens. No comments were made. Item 6. Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 06-2015 With Regards to Funding the Furman Family Partnership, LLP New Development. Business and Community Development Director Evelyn Ecker presented Resolution No. 06-2015 for its second and final reading. Commissioner Logan moved, duly seconded by Mayor Pro-Tem to adopt Resolution No. 06-2015 as presented. Motion carried unanimously with Commissioner Hinders Abstaining. RESOLUTION NO. 06-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING A PROJECT FUNDING AGREEMENT BETWEEN FURMAN FAMILY PARTNERSHIP, LLP AND CANYON ECONOMIC DEVELOPMENT City Commission Meeting May 4, 2015 Page 2 of 3 CORPORATION REGARDING DIRECT FINANCIAL ASSISTANCE FOR THE NEW CONSTRUCTION OF A MIXED USE DEVELOPMENT LOCATED AT 1901 N. 2nd AVENUE. THE FUNDING IS BASED ON PROPERTY DEVELOPMENT FOR RETAIL BUSINESSES. Item 7. Conduct a Public Hearing and Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 07-2015 With Regards to Funding the Canyon Marketing Plan for 2015. Business and Community Development Director Evelyn Ecker presented Resolution No. 07-2015 for its second and final reading. Mayor Pro-Tem Welch moved, duly seconded by Commissioner Logan to adopt Resolution No. 07-2015 as presented. Motion carried unanimously. RESOLUTION NO. 07-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING A PROJECT FUNDING AGREEMENT BETWEEN THE CANYON ECONOMIC DEVELOPMENT CORPORATION AND CANYON MAIN STREET FOR FUNDING OF THE THIRD AND FINAL YEAR OF THE COMPREHENSIVE MARKETING PLAN FOR CANYON. THE PLAN WOULD ENCOURAGE RETAIL SALES, HOTEL STAYS, AND GENERATE STATE AND LOCAL TAX REVENUE. Item 8. Consider and Take Appropriate Action on Acceptance of $100,000 Gift From Amarillo National Bank, Intended to Be Used For Improvements to Neblett Park or Other Downtown Improvements. City Manager Randy Criswell requested the City of Canyon Commission formally accept the generous gift of $100,000 from Amarillo National Bank. The Wares, owners of Amarillo National Bank, asked that the donation be used for improvements of Neblett Park located at the planned downtown parking lot. Mr. Criswell said once the gift is officially accepted, he felt it would be good to refer to the City of Canyon Parks and Recreation Committee for recommendations on how best to utilize the money on Neblett Park. After discussion, Mayor Pro-Tem Welch moved, duly seconded by Commissioner Hinders to accept the gift of $100,000 from Amarillo National Bank for improvements to Neblett Park, and refer the matter to the Canyon Parks and Recreation Committee to come up with a plan for the use of the money on Neblett Park. Motion carried unanimously. Mr. Criswell and the City Commission expressed their gratitude to Amarillo National for the generous gift. Item 9. Consider and Take Appropriate Action on Family Aquatic Center Feasibility Study. Assistant City Manager for Special Projects Jon Behrens gave a brief overview of the three options from the Family Aquatic Center Feasibility Study given at the City Commission meeting held April 20, 2015. Mr. Behrens presented tax information that included costs to taxpayers for City Commission Meeting May 4, 2015 Page 3 of 3 each of the 3 options for an aquatic center as presented. Commissioners said they agreed with the Aquatic Study Committee that Option B offered the citizens a facility that will meet the needs of the community for many years. Mr. Behrens stated if it was the desire of the Commission to have a Bond Election on the November 2015 ballot, the decision would have to be made before mid-August 2015. Mr. Behrens said a November election would be the best for construction purposes as that would allow for the pool to remain open during the summer months, and demolition could begin as soon as the pool closes with completion before the following swimming season begins. After discussion, Commissioner Logan moved, duly seconded by Commissioner Hinders to support Option B as recommended by the Aquatic Study Committee and directed staff to explore other funding options. Motion carried unanimously. Item 10. Executive Session Pursuant to Texas Government Code §551.072 Real Property, §551.087 Economic Development Negotiations, and §551.074 Personnel (Planning and Zoning Commission). Mayor Alexander indicated the Commission would adjourn into executive session at 6:17 pm. Item 11. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from executive session at 7:50 pm with no action taken. Item 12. Adjournment There being no further business, Mayor Pro-Tem Welch moved this meeting be adjourned. ______________________________ Quinn Alexander, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary  RESOLUTION NO. 09-2015 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS CANVASSING THE RETURNS AND DECLARING THE RESULTS OF A GENERAL ELECTION HELD MAY 9, 2015 FOR THE PURPOSE OF ELECTING MAYOR PLACE 1, AND COMMISSIONER PLACES 2, 3, 4 AND 5. WHEREAS, on this the 18th day of May, 2015, came to be considered by the City Commission the canvass of the returns of the General Election for the purpose of electing persons to serve as Mayor Place 1 and Commissioner Places 2, 3, 4, and 5 to the resident qualified electors of the City held on May 9, 2015; WHEREAS, the Randall County Election Administrator that reported said Election has duly made the return of the results thereof, and said returns have been duly delivered to the City Commission; WHEREAS, the City Commission finds and declares that the meeting at which this Resolution is considered is open to the public and complies with the open meetings act; and WHEREAS, there were cast in said election 7 absentee votes as shown in the official election results submitted by the Randall County Election Administrator and lawfully submitted to the City Commission of the City of Canyon, Texas, and filed with the City Secretary of said City; and WHEREAS there were cast in said election 469 early votes as shown in the official election results submitted by the Randall County Election Administrator and lawfully submitted to the City Commission of the City of Canyon, Texas, and filed with the City Secretary of said City; and WHEREAS there were cast in said election 394 election day votes as shown in the official election results submitted by the Randall County Election Administrator and lawfully submitted to the City Commission of the City of Canyon, Texas, and filed with the City Secretary of said City; and WHEREAS, the City Commission has canvassed the returns of said election and it appears from said returns, duly and legally made, the Combined Absentee Voting, Early Voting and Election Day Voting Accumulated a total of 870 votes resulting in the following: Mayor Place 1 Quinn Alexander 656 Cheryl Malcolm 208 Commissioner Place 2 Joe Shehan 711 Commissioner Place 3 David Logan 697 Commissioner Place 4 Gary Hinders 730 Commissioner Place 5 Justin Richardson 724 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: SECTION 1. That said election was duly called; that notice of said election was given and held in accordance with law; and that said election and the returns thereof have been duly canvassed by the City Commission. SECTION 2. That at said election; A. Quinn Alexander received a majority of the votes cast for the office of Mayor and was duly elected Mayor of the City of Canyon. B. Joe Shehan has been certified as unopposed and duly elected as Commissioner Place 2. C. David Logan has been certified as unopposed and duly elected as Commissioner Place 3. D. Gary Hinders has been certified as unopposed and duly elected as Commissioner Place 4. E. Justin Richardson has been certified as unopposed and duly elected as Commissioner Place 5. AND IT IS SO RESOLVED. PASSED AND APPROVED this 18th day of May, 2015. Quinn Alexander, Mayor ATTEST: Gretchen Mercer, City Clerk Prescribed by Secretary of State Section 2. 051- 2.053, Texas Election Code 5/ 02 CERTIFICATION OF UNOPPOSED CANDIDATES CERTIFICACION DE CANDIDATOS UNICOS To: Presiding Officer of Governing Body Al: Presidente de la entidad gobernante As the authority responsible for having the official ballot prepared, I hereby certify that the following candidates are unopposed for election to office for the election scheduled to be held on May 09, 2015. Como autoridad a cargo de la preparacion de la boleta de votacion official, por la presente certifico que los siguientes candidatos son candidatos unicos para eleccion para un cargo en la eleccion que se llevara a cabo el 09 de mayo, 2015. List offices and names of candiates: Lisa de cargos y nombres de los candidatos: Offices( s) Cargo( s) Candidate( s) Candidato( s) Commissioner, Place 2 Joe Shehan Commissioner, Place 3 David Logan Commissioner, Place 4 Gary Hinders Commissioner, Place 5 Justin Richardson lfivido ign. ure ( Firma) Gretchen Mercer Printed name ( Nombre en letra de molde) City Secretary Title (Puesto) 05- 13- 2015 Se411-rsel Date of signing ( Fecha de firma)  VxÜà|y|vtàx Éy XÄxvà|ÉÇ \Ç à{x atÅx tÇw Uç à{x Tâà{ÉÜ|àç Éy g{x fàtàx Éy gxåtá g{|á |á àÉ VxÜà|yç? à{tà dâ|ÇÇ TÄxåtÇwxÜ jtá WâÄç XÄxvàxw `tçÉÜ? cÄtvx D YÉÜ ÑâÜÑÉáxá Éy à{x `tç CL? ECDH zxÇxÜtÄ xÄxvà|ÉÇA \Ç àxáà|ÅÉÇç ã{xÜxÉy? \ {täx {xÜxâÇàÉ á|zÇxw Åç ÇtÅx tÇw vtâáxw à{x fxtÄ Éy à{x V|àç Éy VtÇçÉÇ àÉ ux tyy|åxw? à{|á à{x DKà{ wtç Éy `tç? ECDHA f|zÇtàâÜx Éy cÜxá|w|Çz byy|vxÜ  STATEMENT OF ELECTED/APPOINTED OFFICER (Pursuant to Tex. Const. art. XVI, §1(b), amended 2001) Statement I, QUINN ALEXANDER, do solemnly swear, that I have not directly or indirectly paid, offered, promised to pay, contributed, or promised to contribute any money or thing of value, or promised any public office or employment for the giving or withholding of a vote at the election at which I was elected or as a reward to secure my appointment or confirmation, whichever the case may be, so help me God. Mayor, Place 1 Canyon, TX, Randall County Position to Which Elected/Appointed City and/or County Execution UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING STATEMENT AND THAT THE FACTS STATED THEREIN ARE TRUE. May 18, 2015 _____________________________________________________ Date Officer's Signature Form No. 2201  In the name and by the authority of The State of Texas OATH OF OFFICE I, QUINN ALEXANDER, do solemnly swear, that I will faithfully execute the duties of the office of MAYOR, PLACE 1, of the City of Canyon, State of Texas, and will to the best of my ability preserve, protect, and defend the Constitution and laws of the United States and of this State, so help me God. Affiant SWORN TO and subscribed before me by affiant on this 18th day of May, 2015. Signature of Person Administering Oath Chuck Hester (seal) Printed Name City Attorney Title  VxÜà|y|vtàx Éy XÄxvà|ÉÇ \Ç à{x atÅx tÇw Uç à{x Tâà{ÉÜ|àç Éy g{x fàtàx Éy gxåtá g{|á |á àÉ VxÜà|yç? à{tà ]Éx f{x{tÇ jtá WâÄç XÄxvàxw VÉÅÅ|áá|ÉÇxÜ? cÄtvx E YÉÜ ÑâÜÑÉáxá Éy à{x `tç CL? ECDH zxÇxÜtÄ xÄxvà|ÉÇA \Ç àxáà|ÅÉÇç ã{xÜxÉy? \ {täx {xÜxâÇàÉ á|zÇxw Åç ÇtÅx tÇw vtâáxw à{x fxtÄ Éy à{x V|àç Éy VtÇçÉÇ àÉ ux tyy|åxw? à{|á à{x DKà{ wtç Éy `tç? ECDHA f|zÇtàâÜx Éy cÜxá|w|Çz byy|vxÜ  STATEMENT OF ELECTED/APPOINTED OFFICER (Pursuant to Tex. Const. art. XVI, §1(b), amended 2001) Statement I, JOE SHEHAN, do solemnly swear, that I have not directly or indirectly paid, offered, promised to pay, contributed, or promised to contribute any money or thing of value, or promised any public office or employment for the giving or withholding of a vote at the election at which I was elected or as a reward to secure my appointment or confirmation, whichever the case may be, so help me God. Commissioner, Place 2 Canyon, TX, Randall County Position to Which Elected/Appointed City and/or County Execution UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING STATEMENT AND THAT THE FACTS STATED THEREIN ARE TRUE. May 18, 2015 _____________________________________________________ Date Officer's Signature Form No. 2201  In the name and by the authority of The State of Texas OATH OF OFFICE I, JOE SHEHAN, do solemnly swear, that I will faithfully execute the duties of the office of COMMISSIONER, PLACE 2, of the City of Canyon, State of Texas, and will to the best of my ability preserve, protect, and defend the Constitution and laws of the United States and of this State, so help me God. Affiant SWORN TO and subscribed before me by affiant on this 18th day of May, 2015. Signature of Person Administering Oath Chuck Hester (seal) Printed Name City Attorney Title  VxÜà|y|vtàx Éy XÄxvà|ÉÇ \Ç à{x atÅx tÇw Uç à{x Tâà{ÉÜ|àç Éy g{x fàtàx Éy gxåtá g{|á |á àÉ VxÜà|yç? à{tà Wtä|w _ÉztÇ jtá WâÄç XÄxvàxw VÉÅÅ|áá|ÉÇxÜ? cÄtvx F? YÉÜ ÑâÜÑÉáxá Éy à{x `tç CL? ECDH zxÇxÜtÄ xÄxvà|ÉÇA \Ç àxáà|ÅÉÇç ã{xÜxÉy? \ {täx {xÜxâÇàÉ á|zÇxw Åç ÇtÅx tÇw vtâáxw à{x fxtÄ Éy à{x V|àç Éy VtÇçÉÇ àÉ ux tyy|åxw? à{|á à{x DKà{ wtç Éy `tç? ECDHA f|zÇtàâÜx Éy cÜxá|w|Çz byy|vxÜ  STATEMENT OF ELECTED/APPOINTED OFFICER (Pursuant to Tex. Const. art. XVI, §1(b), amended 2001) Statement I, DAVID LOGAN, do solemnly swear, that I have not directly or indirectly paid, offered, promised to pay, contributed, or promised to contribute any money or thing of value, or promised any public office or employment for the giving or withholding of a vote at the election at which I was elected or as a reward to secure my appointment or confirmation, whichever the case may be, so help me God. Commissioner, Place 3 Canyon, TX, Randall County Position to Which Elected/Appointed City and/or County Execution UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING STATEMENT AND THAT THE FACTS STATED THEREIN ARE TRUE. May 18, 2015 _____________________________________________________ Date Officer's Signature Form No. 2201  In the name and by the authority of The State of Texas OATH OF OFFICE I, DAVID LOGAN, do solemnly swear, that I will faithfully execute the duties of the office of COMMISSIONER, PLACE 3, of the City of Canyon, State of Texas, and will to the best of my ability preserve, protect, and defend the Constitution and laws of the United States and of this State, so help me God. Affiant SWORN TO and subscribed before me by affiant on this 18th day of May, 2015. Signature of Person Administering Oath Chuck Hester (seal) Printed Name City Attorney Title  VxÜà|y|vtàx Éy XÄxvà|ÉÇ \Ç à{x atÅx tÇw Uç à{x Tâà{ÉÜ|àç Éy g{x fàtàx Éy gxåtá g{|á |á àÉ VxÜà|yç? à{tà ZtÜç [|ÇwxÜá jtá WâÄç XÄxvàxw VÉÅÅ|áá|ÉÇxÜ? cÄtvx G YÉÜ ÑâÜÑÉáxá Éy à{x `tç CL? ECDH zxÇxÜtÄ xÄxvà|ÉÇA \Ç àxáà|ÅÉÇç ã{xÜxÉy? \ {täx {xÜxâÇàÉ á|zÇxw Åç ÇtÅx tÇw vtâáxw à{x fxtÄ Éy à{x V|àç Éy VtÇçÉÇ àÉ ux tyy|åxw? à{|á à{x DKà{ wtç Éy `tç? ECDHA f|zÇtàâÜx Éy cÜxá|w|Çz byy|vxÜ  STATEMENT OF ELECTED/APPOINTED OFFICER (Pursuant to Tex. Const. art. XVI, §1(b), amended 2001) Statement I, GARY HINDERS, do solemnly swear, that I have not directly or indirectly paid, offered, promised to pay, contributed, or promised to contribute any money or thing of value, or promised any public office or employment for the giving or withholding of a vote at the election at which I was elected or as a reward to secure my appointment or confirmation, whichever the case may be, so help me God. Commissioner, Place 4 Canyon, TX, Randall County Position to Which Elected/Appointed City and/or County Execution UNDER PENALTIES OF PERJURY, I DECLARE THAT I HAVE READ THE FOREGOING STATEMENT AND THAT THE FACTS STATED THEREIN ARE TRUE. May 18, 2015 _____________________________________________________ Date Officer's Signature Form No. 2201  In the name and by the authority of The State of Texas OATH OF OFFICE I, GARY HINDERS, do solemnly swear, that I will faithfully execute the duties of the office of COMMISSIONER, PLACE 4, of the City of Canyon, State of Texas, and will to the best of my ability preserve, protect, and defend the Constitution and laws of the United States and of this State, so help me God. Affiant SWORN TO and subscribed before me by affiant on this 18th day of May, 2015. Signature of Person Administering Oath Chuck Hester (seal) Printed Name City Attorney Title  VxÜà|y|vtàx Éy XÄxvà|ÉÇ \Ç à{x atÅx tÇw Uç à{x Tâà{ÉÜ|àç Éy g{x fàtàx Éy gxåtá g{|á |á àÉ VxÜà|yç? à{tà ]âáà|Ç e|v{tÜwáÉÇ jtá WâÄç XÄxvàxw VÉÅÅ|áá|ÉÇxÜ? cÄtvx H YÉÜ ÑâÜÑÉáxá Éy à{x `tç CL? ECDH zxÇxÜtÄ xÄxvà|ÉÇA \Ç àxáà|ÅÉÇç ã{xÜxÉy? \ {täx {xÜxâÇàÉ á|zÇxw Åç ÇtÅx tÇw vtâáxw à{x fxtÄ Éy à{x V|àç Éy VtÇçÉÇ àÉ ux tyy|åxw? à{|á à{x DKà{ wtç Éy `tç? ECDHA f|zÇtàâÜx Éy cÜxá|w|Çz byy|vxÜ Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you Please go over the information on your forms and make sure everything is covered on our insurance. We generally do not cover vehicles / equipment with a value of less than $4500. If you have questions on that, we can discuss. Be sure if you are adding a vehicle or equipment that you include the Year, Make, VIN#, and total value including any radios, tool boxes, decals etc. In order for me to get the updated information to TML in a timely manner, PLEASE return to me no later than May 28, 2015. Thank you  In the name and by the authority of The State of Texas OATH OF OFFICE I, JUSTIN RICHARDSON, do solemnly swear, that I will faithfully execute the duties of the office of COMMISSIONER, PLACE 5, of the City of Canyon, State of Texas, and will to the best of my ability preserve, protect, and defend the Constitution and laws of the United States and of this State, so help me God. Affiant SWORN TO and subscribed before me by affiant on this 18th day of May, 2015. Signature of Person Administering Oath Chuck Hester (seal) Printed Name City Attorney Title  AGENDA To: Randy Criswell, City Manager; Mayor and City Commission From: Evelyn Ecker, Executive Director Canyon Economic Development Corp. Date: April 13, 2015 Re: First Reading of Resolution No. 08-2015 With Regards to the Conveyance of Property Located on US Highway 60 to Lone Star Milk Producers for a New Construction Dry Powder Milk Plant _________________________________________________________________________ The Canyon Economic Development Corporation held a public hearing on Thursday, May 7th with regards to the conveyance of the property located on US Highway 60. This conveyance is being considered as a land grant for the construction of a dry powder milk plant. Please find attached the Resolution for this project. The Funding Agreement will be available on Monday. This is the first reading of Resolution No. 08-2015. The second reading and approval of the Resolution will be June 1st. City of Canyon  RESOLUTION NO. 08-2015 RESOLUTION APPROVING PROJECT FUNDING AGREEMENT BETWEEN LONE STAR MILK PRODUCTS CO. (“LSMP”) AND CANYON ECONOMIC DEVELOPMENT CORPORATION (“CEDC”) FOR THE PURPOSE OF FUNDING PRODUCTION OF MILK PRODUCTS AND TO ASSIST IN CONSTRUCTING A PLANT IN CANYON, TEXAS. WHEREAS, on May 7, 2015, the Canyon Economic Development Corporation (“CEDC”) held a public hearing regarding the use of sales and use tax revenues collected pursuant to the Development Corporation Act of 1979 (Tex. Rev. Civ. Stat. Art. 5190.6 §4B, (“the Act”) as per a request from LONE STAR MILK PRODUCTS CO., for the purpose of constructing a plant for production of milk products: and, WHEREAS, the City Commission of the City of Canyon, Texas, finds it to be in the public interest to approve Project Funding Agreement No. 1 between the Canyon Economic Development Corporation and Lone Star Milk Products Co. for conveyance of land to be used as a plant location; and, WHEREAS; the City Commission approves conveyance of the land described in a Special Warranty Deed from the City of Canyon to CEDC dated March 2, 2015, recorded under Clerk’s File No. 2015003470, Official Public Records, Randall County, Texas, subject to the reservations and restrictions set forth in such conveyance or the cash payment in lieu of the reversionary interest referred to in the Deed; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS; That the project above-described is approved and the officers designated by the CEDC Board of Directors are authorized to execute Project Funding Agreement No. 1 with LONE STAR MILK PRODUCTS CO. and a Deed conveying the above-described land for the purpose of the project described in such Project Funding Agreement. INTRODUCED at the First Reading on the 18th day of May. 2015, and Adopted on the Second Reading on the 1st day of June, 2015. QUINN J. ALEXANDER, MAYOR ATTEST: Gretchen Mercer, City Clerk (resolution.08-2015)  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT NO 1. LONE STAR MILK PRODUCTS CO. This agreement is made by and between the Canyon Economic Development Corporation (“CEDC”), a Texas non-profit corporation duly organized and existing pursuant to the TEXAS DEVELOPMENT CORPORATION ACT and LONE STAR MILK PRODUCTS CO. (hereinafter referred to as “Second Party.”). 1. The purpose of this agreement is to facilitate the proper use of funds held and administered by the CEDC, a tax supported non-profit corporation whose primary income is from sales tax collected within the City of Canyon and dedicated exclusively to economic development. The sales tax supporting CEDC is authorized as a local option under Chapter 504 and 505 TEX. LOC. GOV’T CODE, formerly TEX. REV. CIV. STAT. ART. 5190.6 §4B, the primary purpose of which is the developing, stabilizing, diversifying, and expanding the economy through the retention, recruitment, expansion, and employment opportunities of the citizens of Canyon and the surrounding area and to 2. DRAFT enhance the quality of life of the citizens of Canyon and the surrounding area. The project and performance requirements to be implemented by means of this agreement are described as follows: (a.) Second Party shall construct new improvements consisting of a food grade dairy ingredients plant on the land to be conveyed to Second Party by CEDC at no cost to Second Party as part of the financial incentive package more fully described in ¶2b conforming to the plans and specifications presented to the CEDC Board at the time the project was approved. (b.) The improvements shall be constructed on the following property to be conveyed to Second Party: 15 acres, more or less, in Section 35, Block B-5, H.&GN Ry. Co. Survey, Randall County, Texas, more specifically described in Exhibit “A” attached hereto and incorporated herein by reference for all purposes. (c.) The improvements shall be constructed at Second Party’s expense except to the extent funding is made available under this agreement and any other grant or economic development incentive approved by another entity. 3. The CEDC will provide the following funding and financial incentives for the project in two phases, to-wit: Project Funding Agreement - Lone Star Milk Producers Page -1-  (a.) Phase One is this Project Funding Agreement No. 1 relating to conveyance of the real estate for the plant site. (b.) Phase Two covers the job incentives to be extended by CEDC. Phase Two will be the employee financial incentives under Project Funding Agreement No. 2. (4) The deed conveying the land to Second Party described in ¶2 above shall contain a reversionary interest conditioned as follows: (a.) title to the land shall revert to CEDC in the event Second Party is unable to commence construction not later than 36 months from the effective date of this agreement; and, (b.) in the event the plant closes prior to being in operation for 240 months from the effective date of this agreement, Second Party shall have the option of re-conveying the property to CEDC, after a reasonable time to remove improvements (not to exceed 400 days from the date of plant closure) or payment to CEDC in the amount of $157,700 plus interest at 5% per annum from the date of CEDC’s conveyance to Second Party. In the event Second Party retains title to the property and makes (c.) DRAFT payment to CEDC as specified above, Second Party shall be obligated to maintain the property and any improvements thereon so that the condition of the plant location does not become a nuisance . In the event the reverter clause in the deed becomes effective through the occurrence of a condition specified in subparagraphs (a) or (b) above, Second Party shall re-convey the land described in paragraph 2 above upon written request by CEDC. (d.) In the event the conditions described in subparagraphs (a) or (b) above do not occur and there is not a basis for CEDC to exercise the reversionary interest, at the expiration of 240 months from the effective date of this agreement, CEDC shall quitclaim and release the reverter to Second Party. (e.) The deed from CEDC to Second Party referred to in ¶2(a) and (b) above shall contain a clause substantially as provided in the deed from the City of Canyon to CEDC: 5. In the event the City of Canyon is a lienholder on the property at the time of conveyance by CEDC to Second Party, CEDC shall obtain a subordination of the City's lien to the lien of Second Party's lender. 6. All other terms and provisions of this agreement notwithstanding, the obligations of the parties hereto are expressly made contingent upon the following: (a.) approval of the financial incentives by the CEDC Board; (b.) approval of the financial incentives by the Canyon City Commission; and, (c.) compliance with the requirements of the Texas Development Corporation Act. Project Funding Agreement - Lone Star Milk Producers Page -2- 7. The failure of Second Party to fully and timely comply with any requirement under Project Funding Agreement No. 2 shall be an act of default by Second Party which shall entitle the CEDC to suspend further funding and, at its option, to terminate this agreement by written notice delivered pursuant to paragraph 9. In such event, all financial incentives provided by CEDC to Second Party shall be repaid to CEDC upon demand. 8. Second Party agrees to the following in connection with the project: (a.) Comply at all times with all the requirements of this agreement during performance of Second Party’s obligations hereunder. (b.) Permit an audit by the CEDC of the employee payroll records of Second Party, to determine whether Second Party is in compliance with this agreement. 9. Second Party makes the following covenants and warranties to the CEDC: (a.) Any false or substantially misleading statement contained herein or the failure of DRAFT Second Party to comply and fully perform as required in this agreement shall be an act of default by Second Party. Failure to comply with any covenant or warranties shall constitute an act of default and entitle the CEDC to suspend further funding and at it’s option to terminate this agreement by written notice in accordance with paragraph 9 below. (b.) Second Party is authorized to do business in Texas, is in good standing in the State of Texas and shall remain in good standing in the State of Texas during the term of this agreement. (c.) The execution of this agreement has been duly authorized by the governing body or authorized agents of Second Party and all necessary approvals have been obtained. Second Party’s designated agent or officer executing this agreement is duly authorized and empowered to execute this agreement and bind Second Party to the covenants, warranties and other terms of this agreement. Second Party’s execution of this agreement and the performance thereof is not contrary to any law, rule, regulation, or provisions of Second Party’s organizational documents or any contract, instrument, or agreement to which Second Party is a party or by which it may be bound at the time this agreement is executed. The authority of the agent whose signature that appears below is evidenced by a resolution or certificate furnished to CEDC or attached to this agreement. (d.) No litigation or governmental proceeding is pending or to the knowledge of Second Party is contemplated or threatened against Second Party or affecting it’s operations or business that may result in any material or adverse change in Second Party’s business, properties, or operations. Project Funding Agreement - Lone Star Milk Producers Page -3-  (e.) To Second Party’s knowledge no drawing, plan certificate or statement delivered by Second Party to CEDC in connection with this agreement or any transaction contemplated by this agreement contains any untrue statement or fails to state the facts necessary to keep the statements contained therein from being misleading or false. (f.) There are no bankruptcy proceedings or other legal proceedings currently pending or contemplated affecting the Second Party. The Second Party has not been informed of any intent to initiate involuntary bankruptcy proceedings against Second Party. (g.) To it’s knowledge Second Party has acquired and maintained all necessary rights, licenses, permits, and authority to carry on it’s business in Texas and to perform the terms of this agreement and will continue to use it’s best efforts to maintain all necessary rights, licenses, and permits in current status and good standing. (h.) The funds provided by CEDC shall be utilized solely for the purpose of the project (i.) DRAFT as stated in this agreement and within the scope of the project as stated in this agreement and for no other purpose. Second Party shall pay all taxes and assessments due and owing to all taxing authorities having jurisdiction over Second Party’s property and business operations. In addition, Second Party shall timely pay all employment, income, franchise, and other taxes due and owing by Second Party to all local, state, and federal entities. (j.) Second Party shall complete the project described in this agreement and shall provide the necessary staff, employees and funding for the completion and performance of this agreement. (k.) Second Party shall timely and fully perform and comply with all terms and conditions of this agreement. (l.) Second Party shall notify CEDC in writing of substantial changes in the management of Second Party within seven (7) business days. Substantial changes shall mean changes in executive officers, board members, partners or managers. (m.) The Second Party agrees that with regard to all programs and activities arising out of this agreement, the Second Party will not discriminate against any person upon the basis of race, color, national origin, gender, or disability. 10. The CEDC under the following circumstances and at the sole discretion of its board of directors may suspend the obligations under this agreement or may terminate this Project Funding Agreement - Lone Star Milk Producers Page -4-  agreement without liability to the CEDC upon: (a.) The filing of bankruptcy proceedings or the appointment of a receiver of Second Party or any part of it’s assets or property and failure of such bankruptcy or receivership to be discharged within sixty (60) days of filing. (b.) The adjudication of Second Party as a bankrupt. (c.) A change in ownership of Second Party which constitutes a material change in the nature of Second Party’s business and operations. (d.) Material breach of this agreement. 11. Second Party agrees to the following reports in connection with the project: (a.) Second Party shall provide periodic reports as requested by the CEDC. (b.) DRAFT During normal business hours, Second Party shall allow a representative of the CEDC reasonable access to its employee payroll records to verify compliance with this agreement. CEDC agrees to maintain the confidentiality of such records. Such information shall be used only for the purpose of administering the funding provided by CEDC pursuant to this agreement and for no other purpose; provided however, CEDC may, if required by legal process or at the discretion of the office of the Attorney General provide such documentation to a third party as is required by the Attorney General or pursuant to such legal process. 12. Should Second Party fail to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, and conditions or warranties of this agreement such failure shall constitute an act of default by Second Party and, if not fully and completely cured within 60 days after written notice by CEDC to Second Party, the CEDC may terminate this agreement and pursue any legal remedies existing under the law; provided however, that Second Party’s liability under this agreement shall be limited to the immediate return by Second Party of all funds or other economic incentives provided by the CEDC and any consideration previously paid to Second Party by the CEDC. The rate of interest on all funds paid by the CEDC to Second Party subject to refund shall be 6% per annum from the date of default. In the event CEDC should prevail in any litigation to recover funds pursuant to this paragraph, the CEDC shall, in addition to all other damages provided by this paragraph, be entitled to recover reasonable attorney’s fees and expenses of litigation. 13. In the event of unforeseeable delays in the performance of this agreement by Second Party, or force majeure, and upon a reasonable showing by Second Party that it has immediately and in good faith commenced and is diligently and continuously pursuing the Project Funding Agreement - Lone Star Milk Producers Page -5-  correction, removal, or abatement of such delays by using its best efforts, CEDC may excuse any such delay by action of the Board. 14. Any delay by the CEDC in providing notice of default to Second Party, shall in no event be deemed or constitute a waiver of such default by CEDC or waiver of any of it’s rights and remedies available under this agreement or at law or in equity. 15. Any waiver provided by CEDC to Second Party of an act of default shall not be deemed to constitute a continuing waiver or a waiver of any other existing or future act of default by Second Party even if the act or default is of the same or a similar nature. 16. Second Party specifically agrees that CEDC shall only be liable to Second Party for the amount of money actually budgeted and committed to the project described in this agreement. CEDC shall not be liable or held responsible for any other direct or indirect costs, attorneys fees, expenses, court costs, actual or consequential damages, direct or indirect. It is further stipulated and agreed that CEDC shall only be required to pay the DRAFT amount of the project cost out of its sales tax revenues held and administered pursuant to the Development Corporation Act for the fiscal year in which the funding under this agreement is due together with unencumbered funds then on hand and from no other source. It is specifically agreed, that in the event actual total sales tax revenues collected by CEDC for any year during which this agreement is to be performed should be less than the total amount of all grants to all contracting parties for that year, then in that event, CEDC shall fund projects in the order the grants were awarded after payment of CEDC’s usual administrative cost and expenses. All contracting parties shall receive only their share of the available sales tax revenue for that year, less CEDC’s customary and usual administrative costs and expenses and CEDC shall not be liable to any contracting party for any deficiency for that time or in the future. In the event of such revenue shortfall, CEDC will provide written notice to all contracting parties affected by the revenue shortfall along with such documentation as will allow the contracting party to ascertain their share of the funding to be provided. 17. This agreement, together with the submittals by Second Party constitutes the entire agreement of the parties hereto and supersedes any oral, written or contemporaneous agreements between the parties relating to the matters covered by this agreement. Except as otherwise provided herein, this agreement cannot be modified or amended without a writing subscribed by the authorized agents of the parties. 18. No term or provision of this agreement or an act of the CEDC in the performance of this agreement shall be construed as making or constituting Second Party or its employees, or agents, partners or joint venturers of the CEDC or employees of the CEDC. This contract is not for the benefit of any third party. Project Funding Agreement - Lone Star Milk Producers Page -6- 19. The termination of this agreement as provided herein may be upon mutual agreement of the parties or pursuant to the provisions hereof relating to default. The termination of this agreement either by mutual agreement or by notice served by the CEDC shall extinguish all rights, duties, and obligations of the CEDC except as provided herein. 20. This agreement may be executed in a number of identical counterparts each of which shall be deemed an original upon execution by both parties. 21. This agreement is made pursuant to the laws of the State of Texas and shall be governed and interpreted under the laws of the State of Texas. Venue in any litigation arising out of the execution or performance of this agreement shall be in the court of appropriate jurisdiction in Randall County, Texas and in no other Venue. Second Party, by signing this agreement, consents to and waives any objections to in personam jurisdiction in Randall County, Texas. 22. In the event one or more of the provisions contained in this agreement should, for any reason, be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this agreement. This 23. DRAFT agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein. This agreement is subject to all legal requirements contained in the Municipal Charter and Code of Ordinances of the City of Canyon and all other applicable state and federal laws and regulations. Second Party agrees that, in compliance with this agreement, it will promptly comply with all applicable laws, regulations, orders, and rules of the state, city, and other governmental entities. 24. This agreement shall be binding upon the parties hereto, their successors, and (where permitted) assigns. This agreement may not be assigned by either party without the specific prior written consent of the other, which consent shall not be unreasonably withheld or conditioned. Provided however, that in the event Second Party transfers all or substantially all it’s assets to another entity or merges with another entity to the extent that the underlying purpose of this agreement cannot, in the sole discretion of the CEDC’s board of directors, be accomplished, the CEDC shall have the option to suspend it’s performance under this agreement or terminate this agreement. 25. Second Party represents that no member of the board of directors of the CEDC or member of the governing body of the City of Canyon or any officer or employee of the City of Canyon or CEDC will be compensated in any manner with respect to directly or indirectly bringing the parties together for the purpose of this agreement or participation in the negotiation or formation of this agreement. No finders fee or other origination fee of any type will be paid or will become payable to any officer or employee of the City of Canyon, member of the governing body of the City of Canyon, or the governing body of the CEDC with regard to the formation or performance of this agreement. Project Funding Agreement - Lone Star Milk Producers Page -7- 26. All notices from one party to the other party required or permitted by this agreement shall be delivered personally or sent by certified mail postage prepaid addressed to the party at the address shown on the signature page. All notices shall be deemed given on the date so delivered or deposited in the mail unless otherwise provided. Either party may change its address by sending written notice of such change to the other party in the manner provided by this agreement. DRAFT Project Funding Agreement - Lone Star Milk Producers Page -8- 27. All representations, warranties, covenants, and agreements of the parties as well as all rights and benefits of the parties pertaining to the transaction contemplated by this agreement shall survive the original execution date of this agreement and shall constitute continuing obligations. Effective Date:_____________________________ Second Party: CANYON ECONOMIC DEVELOPMENT LONE STAR MILK PRODUCTS CO. CORPORATION By:_________________________________ By:_________________________________ Randy Croslin, President/Chairman ___________________________, Name DRAFT 301 16th Street, Canyon, Texas 79015 Address , Title Address Phone Number Phone Number Project Funding Agreement - Lone Star Milk Producers Page -9-