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 5th day of September 2017, 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 August 21, 2017. 5. Public Comment – Comments from Interested Citizens. 6. Update from Freese and Nichols on Comprehensive Plan Project. 7. Consider and Take Appropriate Action on Second Reading of Resolution No. 17-2017, Approving a Lease With Option to Purchase the Property Located at 502 15th Street, Canyon, Texas. 8. Consider and Take Appropriate Action on Second Reading of Resolution No. 18-2017 With Regards to Direct Financial Assistance for Improvements to Property Located at 502 15th Street, Canyon, Texas. The Funding is Based on New Business Development and Job Creation. 9. Budget Work Session. 10. Conduct Second Public Hearing on Proposed Tax Rate for Fiscal Year 2017-2018. 11. Executive Session Pursuant to §551.072 Deliberation Regarding Real Property, §551.074, Appointments to Boards and Commissions (Canyon Economic Development Corporation Board of Directors) and §551.071, Consultation with Attorney. 12. Consider and Take Appropriate Action on Items Discussed in Executive Session. 13. Adjourn. 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 1st day of September 2017. Gretchen Mercer, City Clerk City of Canyon City Commission Meeting August 21, 2017 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 Gary Hinders presided over the meeting with the following Commissioners in attendance, Mayor Pro-Tem Justin Richardson, Cordell Jones, Paul R. Lyons and Roger Remlinger. Also present were the following City Staff: City Manager Randy Criswell, Assistant City Manager Chris Sharp, City Secretary Gretchen Mercer, Director of Code Enforcement Danny Cornelius, Public Works Director Dan Reese, Assistant City Manager for Special Projects Jon Behrens, Business and Community Development Director Evelyn Ecker, Librarian Sandra Munger, Chief of Police Dale Davis, Golf Course Superintendent John Haun, Safety Director Tony Lawson, Police Captain Ray Resendez, Golf Course Manager Casey Renner, Parks and Open Space Director Brian Noel, and City Attorney Chuck Hester. Item 1. Call to Order. Mayor Hinders called the meeting to order at 5:32 p.m. Item 2. Invocation. Commissioner Lyons gave the invocation. Item 3. Pledge of Allegiance. The Pledge of Allegiance was led by Commissioner Remlinger. Item 4. Approval of Minutes of the Meeting of August 7, 2017. Mayor Pro-Tem Richardson moved, duly seconded by Commissioner Jones, to approve the minutes of August 7, 2017 as presented. Motion carried unanimously. Item 5. Public Comment – Comments From Interested Citizens. Rhonda Melugin – 18 Griffin, Canyon, Texas. Owns property on Creekmere. Is frustrated with all the tree limbs in the alley and the length of time it takes to get them picked up. Nelson Bullard – 2714 4th Ave, Canyon, Texas. Mr. Bullard reiterated his concern for the lack of sidewalks along 4th Ave. Also commented he is concerned with bulky trash removal and asked the City of Canyon keep the brush site and keep it free, especially with the City of Amarillo closing their free wood waste sites. Item 6. Conduct Second Public Hearing on Ordinance No. 1062 for Annexation of JJ Randall Property for Skilled Nursing Facility. Randy Criswell presented Ordinance No. 1062 for the first of two required public hearings. Mayor Hinders opened the public hearing. There being no comment, Mayor Hinders closed the public hearing. City Commission Meeting August 21, 2017 Page 2 of 6 No action required for the second reading. ORDINANCE NO. 1062 ANNEXING TERRITORY TO THE CITY OF CANYON JJ RANDALL, LLC, a Texas Limited Liability Company AN ORDINANCE OF THE CITY OF CANYON, TEXAS, ANNEXING THE TERRITORY HEREIN DESCRIBED TO THE CITY OF CANYON IN RANDALL COUNTY, TEXAS, EXTENDING THE BOUNDARY LIMITS OF THE CITY OF CANYON TO INCLUDE THE PROPERTY HEREIN DESCRIBED WITHIN THE SAID CITY LIMITS, AND GRANTING TO ALL THE INHABITANTS OF SAID PROPERTY ALL THE RIGHTS AND PRIVILEGES OF OTHER CITIZENS AND BINDING SAID INHABITANTS BY ALL OF THE ACTS, ORDINANCES, RESOLUTIONS, AND REGULATIONS OF SAID CITY. Item 7. First Reading of Resolution No. 17-2017 Approving a Lease With Option to Purchase the Property Located at 502 15th Street, Canyon, Texas. Business and Community Development Director Evelyn Ecker presented Resolution No. 17-2017 for its first reading. Mrs. Ecker stated Resolution No. 17-2017 solidified a 5-year lease with option to purchase at the end of the lease with Joe Taco. Mrs. Ecker stated the Canyon Economic Development Corporation would retain ownership of the property through the lease. Mrs. Ecker said Joe Taco plans to open November/December 2017. Mrs. Ecker stated the Canyon Economic Development Corporation approved the Lease with Option to Purchase agreement with Joe Taco at the July 11, 2017 board meeting. No action required on the first reading. RESOLUTION NO. 17-2017 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING LEASE WITH OPTION TO PURCHASE BETWEEN JOE TACO CANYON, LLC. AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO THE PROPERTY LOCATED AT 502 15TH STREET, CANYON, TEXAS. THE PROJECT IS RELATED TO NEW BUSINESS DEVELOPMENT. Item 8. First Reading of Resolution No. 18-2017 With Regards to Direct Financial Assistance for Improvements to Property Located at 502 15th Street, Canyon, Texas. The Funding is Based on New Business Development. Business and Community Development Director Evelyn Ecker presented Resolution No. 18-2017 for its first reading. Mrs. Ecker said the Canyon Economic Development Corporation approved the funding request for direct financial assistance for improvements to the property at 502 15th Street currently owned by the CEDC. Mrs. Ecker stated the project cost is approximately $1,000,000 with the Canyon Economic Development Corporation funding $220,000. Mrs. Ecker said disbursements would be made as follows. $50,000 upon issuance of construction permits for the improvement. $50,000 upon issuance of the certificate of occupancy. $50,000 on the first anniversary of opening the business to the public. $70,000 on the second anniversary of opening the business to the public. City Commission Meeting August 21, 2017 Page 3 of 6 No action required for the first reading. RESOLUTION NO. 18-2017 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN JOE TACO CANYON, LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING DIRECT FINANCIAL ASSISTANCE FOR IMPROVEMENTS ON PROPERTY LOCATED AT 502 15TH STREET, CANYON, TEXAS. THE FUNDING IS BASED ON NEW BUSINESS DEVELOPMENT. Item 9. Consider and Take Appropriate Action Financial Status Report from CEDC and Proposed Budget for 2017-2018. Business and Community Development Director Evelyn Ecker gave a financial status report for the Canyon Economic Development Corporation. CEDC Treasurer Jim Bryant was present to answer any question. Mr. Bryant presented a spreadsheet projecting and tracking liquidity of the CEDC and stated the goal of the CEDC was to bring in new business that will generate new sales tax. Mayor Hinders expressed appreciation for the quality of life projects the EDC had funded and the creativity at the Canyon Area Library. Mayor Hinders expressed interest in holding one or two joint meetings between the Canyon City Commission and the Canyon Economic Development Corporation each year. Mrs. Ecker went over the highlights of the CEDC Budget. After discussion, Mayor Pro-Tem Richardson moved, duly seconded by Commissioner Remlinger to adopt the 2017-2018 Canyon Economic Development Corporation Budget as presented. Motion carried unanimously. Item 10. Consider and Take Appropriate Action on Park and Greenway Dedication for Madison Park Unit No. 2. City Manager Randy Criswell presented a proposed plan for a park and greenway to be constructed in the Madison Park Development. Mr. Criswell reminded the Commission that Assistant City Manager Jon Behrens had recently proposed the concept of a Parks Dedication Ordinance, which the Commission at the time rejected, stating they felt park dedications could be dealt with on a case by case basis. Mr. Criswell stated that was the purpose of tonight’s discussion. Mr. Criswell stated staff has been in conversations with the Madison Park Development team, and it has been agreed that the Developer will pay for materials and installation for the park and the greenway entrance, including trees, with all improvements to be in accordance with specifications provided by the City. The City of Canyon will install the water taps and take over the maintenance of the areas. Commissioner Remlinger and Mayor Hinders asked if this would overload the Parks Department. Parks Director Brian Noel stated it was a small area and would not be a large impact. Commissioner Jones asked if a Parkland Dedication Ordinance would address how this was dealt with anytime a park is proposed instead of staff and the City Commission addressing each one individually. Mr. Criswell said it would. Mr. Criswell stated the developers have been very cooperative in the planning of the park and greenway and that staff was pleased with the arrangement. Commissioner Lyons commended staff for working with the developers and a positive outcome. City Commission Meeting August 21, 2017 Page 4 of 6 Item 11. Conduct a Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1063 to Rezone the Proposed Madison Park Unit No. 2 to SF-S(Single-Family Suburban Residential District), PD (Planned Development District) and RC-1 (Retail District) from SF-A (Single Family Agricultural Residential District). Director of Code Enforcement Danny Cornelius presented Ordinance No. 1063 for consideration. Mr. Cornelius said 31 letters were sent to property owners within 200’ and received 7 responses, 4 in support and 2 opposing the request. Mr. Cornelius stated the Planning and Zoning Commission voted unanimously to recommend approval of the zoning request. Mayor Hinders opened the public hearing. There being no comment Mayor Hinders closed the public hearing. After discussion, Commissioner Lyons moved, duly seconded by Commissioner Jones to adopt Ordinance No. 1063 as recommended by the Planning and Zoning Commission. Motion carried unanimously. Item 12. Consider and Take Appropriate Action on a Plat for Madison Park Unit No. 2. Director of Code Enforcement Danny Cornelius presented a plat for Madison Park Unit No. 2. Mr. Cornelius said Madison Park Unit No. 2 proposed 142 residential lots and 15 commercial lots. Mr. Cornelius said the Planning and Zoning Commission voted unanimously to recommend approval of the plat. After discussion, Commissioner Remlinger moved, duly seconded by Mayor Pro-Tem Richardson to approve the plat as recommended by the Planning and Zoning Commission. Motion carried unanimously. Item 13. Conduct a Public Hearing and Consider and Take Appropriate Action on Ordinance No. 1064, Amending the Zoning Code, Chapter 156 of the City of Canyon Code of Ordinances, Section 5.10, Sign Regulations, by Adding a Definition for Flag and Adding Exceptions to Prohibited Signs for Flags and Special Event Flutter Signs. Director of Code Enforcement presented Ordinance No. 1064 for consideration. Mr. Cornelius said the Planning and Zoning Commission had been discussing amendments for flags and signs for a while due to issues with flutter/feather signs and some flags being prohibited. Mr. Cornelius stated with the adoption of Ordinance No. 1064 clarification would be given on flags with business logos and temporary feather flags being allowed. Mr. Cornelius stated the proposed amendment would allow advertising flags that are on poles and at least 12’ above the ground and limits each business to one flag. The proposed amendment would also allow feather or feather signs to be displayed for special events up to 14 days per calendar year. Mayor Hinders asked if this would affect team flags to which Mr. Cornelius stated they are not considered advertising. Commissioner Lyons thanked Mr. Cornelius, the Planning and Zoning Commission and staff for all their work on fixing the issue with flags. Mr. Cornelius stated the Planning and Zoning Commission voted unanimously to recommend approval of Ordinance No. 1064. City Commission Meeting August 21, 2017 Page 5 of 6 Mayor Hinders opened the public hearing. There being no comment, Mayor Hinders closed the public hearing. After discussion, Commissioner Lyons moved, duly seconded by Commissioner Jones to adopt Ordinance No. 1064 as recommended by the Planning and Zoning Commission. ORDINANCE NO. 1064 FLAG AND FLUTTER SIGN AMENDMENTS AN ORDINANCE OF THE CITY COMMISSIN OF THE CITY OF CANYON, TEXAS; AMENDING THE ZONING CODE, CHAPTER 156 OF THE CODE OF ORDINANCES, SECTION 5.10, SIGN REGULATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEALER; PROVIDING FOR AN EFFECTIVE DATE. Item 14. Budget Work Session. City Manager Randy Criswell highlighted changes made as directed from the Budget Work Session held August 7, 2017. After discussion, Commissioners expressed to staff they want to provide the tools and means to continue the high quality of service currently provided to the citizens of Canyon and stated appreciation for the information provided by the staff. Item 15. Conduct Public Hearing on Budget as Per City Charter. City Manager Randy Criswell stated as per the City Charter, a public hearing is required on the annual budget, which is separate from the Public Hearings on the Tax Rate to be held later in this meeting. Mayor Hinders opened the Public Hearing. Dr. Harry Hueston – 3308 Mable Drive. Dr. Hueston addressed the Commissioners and expressed the importance of supporting the police department and providing additional officers to maintain the quality of life and safety the citizens of Canyon were accustomed to. There being no other comments, Mayor Hinders closed the public hearing. Item 16. Conduct First Public Hearing on Proposed Tax Rate for Fiscal Year 2017-2018. Assistant City Manager Chris Sharp stated pursuant to the Texas Truth in Taxation Laws, the City of Canyon is required to hold two public hearings if adopting a tax rate higher than the effective tax rate. Mr. Sharp said in anticipation of increasing the effective tax rate of $.43410 by 4.78% to $.45484 ($.39083 M&O, and $.06401 I&S) valuation. Mayor Hinders opened the public hearing. There being no comment, Mayor Hinders closed the public hearing. First of two required public hearings, no action required. City Commission Meeting August 21, 2017 Page 6 of 6 Item 17. Executive Session Pursuant to §551.072 Deliberation Regarding Real Property, §551.074, Appointments to Boards and Commissions (Canyon Economic Development Corporation Board of Directors) and §551.074, Personnel Matters (City Engineer, Municipal Court Judges, City Attorney, and City Manager). Mayor Hinders indicated the Commission would adjourn into Executive Session at 7:46 pm. Item 18. Consider and Take Appropriate Action on Items Discussed in Executive Session. Upon returning from Executive Session at 9:00 pm, the following action was taken. Mayor Pro-Tem Richardson moved, duly seconded by Commissioner Jones to continue the contract with City Attorney Chuck Hester and increase his monthly compensation from $7,500 to $7,750 a month. Motion carried unanimously. Commissioner Remlinger moved, duly seconded by Commissioner Jones to re-appoint Municipal Court Judge Bob Splawn for another 2 years and increase the monthly compensation from $1,850 per month to $1,950 per month, and to re-appoint Judge Jerry Bigham as alternate Municipal Court Judge. Motion carried unanimously. Item 12. Adjournment. There being no further business, Mayor Pro-Tem Richardson moved this meeting be adjourned. ______________________________ Gary Hinders, Mayor ATTEST: ________________________________ Gretchen Mercer, City Secretary  AGENDA To: Randy Criswell, City Manager From: Jon Behrens, Assistant to the City Manager Date: August 23, 2017 Re: Update from Freese & Nichols on Comprehensive Plan Project. The consulting team from Freese & Nichols that is leading our Comprehensive Plan project will be in Canyon on September 5 & 6. The team would like to give a brief update to the City Commission at the September 5, City Commission meeting. This presentation should last no longer than 15 minutes and will provide the Commission with an update on the work that has already taken place and the next steps in the planning process. City of Canyon REGARDING ITEM 7 AGENDA To: Randy Criswell, City Manager From: Evelyn Ecker, Executive Director Canyon Economic Development Corp. Date: August 14, 2017 Re: Consider and Take Appropriate Action on Second and Final Reading of Resolution No. 17-2017 Approving a Lease with Option to Purchase the Property located at 502 15th Street, Canyon. At the regular scheduled meeting of the Canyon Economic Development Corporation held July 11, 2017 the board approved a Lease Option to Purchase agreement with Joe Taco Canyon. The agreement is for five years commencing on the first day of the month following the issuance of a Certificate of Occupancy by the City of Canyon Code Enforcement office. At the end of the 5th year, the Lessee has the option to purchase the property at a set price. If the purchase option is not exercised, another 5 year lease will be signed. I have attached a copy of the Lease with Option to Purchase which was developed by city attorney Chuck Hester. The CEDC is currently working on a Local Impact Analysis for this project. The firm we use have done several projects for the CEDC including Chicken Express, Lone Star Dairy Products and Feldman’s Wrong Way Dinner. This is the second and final reading for Resolution No. 17-2017. Staff concurs with the CEDC’s recommendation that Resolution No. 17-2017 be adopted. City of Canyon  RESOLUTION NO. 17-2017 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING LEASE WITH OPTION TO PURCHASE BETWEEN JOE TACO CANYON, LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION RELATING TO THE PROPERTY LOCATED AT 502 15TH STREET, CANYON, TEXAS. THE PROJECT IS RELATED TO NEW BUSINESS DEVELOPMENT. WHEREAS, on AUGUST, 10, 2017 the Canyon Economic Development Corporation (“CEDC”) conducted a public hearing regarding the use of sales and use tax revenues collected pursuant to the Development Corporation Act of 1979, TEX. LOC. GOV'T CODE CHAPTERS 501- 505, (“the Act”) and to consider a funding agreement the primary purpose of which is the developing, stabilizing, diversifying, and expanding the economy through the retention, recruitment, and expansion, of employment opportunities of the citizens of Canyon and the surrounding area and to enhance the quality of life of the citizens of Canyon and the surrounding area; and, WHEREAS, the City Commission of the City of Canyon, Texas, finds it to be in the public interest for CEDC to execute a Lease Agreement with Option to Purchase between the Canyon Economic Development Corporation and Joe Taco Canyon LLC., an entity qualified to do business in Texas, on the terms and conditions set forth in the Lease with Option to Purchase approved by the CEDC board and presented to the City Commission for consideration and approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That the Lease Agreement with Option to Purchase by and between CEDC and Joe Taco Canyon LLC. is hereby approved, and the sales tax revenue collected pursuant to “the Act” by CEDC may be used for the primary purpose of financial assistance for new business development. INTRODUCED at the First Reading on the 21st of August, 2017, and Adopted on the Second Reading on the 5th of September, 2017. ________________________________ GARY HINDERS, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk REGARDING ITEM 8 AGENDA To: Randy Criswell, City Manager From: Evelyn Ecker, Executive Director Canyon Economic Development Corp. Date: August 30, 2017 Re: Consider and Take Appropriate Action on Second Reading of Resolution No. 18-2017 With Regards to Direct Financial Assistance for Improvements to Property Located at 502 15th Street, Canyon, Texas. The Funding is Based on New Business Development and Job Creation. The Canyon Economic Development Corporation approved a funding request for direct financial assistance for improvements to the property located at 502 15th Street. This property is currently owned by the CEDC. The funds will be used to make improvements that will be permanent to the property (HVAC, window replacement, plumbing and electrical upgrades as well as an addition of an outdoor dining area to the west.) The funding is not to exceed $220,000. The schedule for fund disbursement is as follows: $50,000 upon issuance of construction permits for the improvement. $50,000 upon issuance of the certificate of occupancy. $50,000 on the first anniversary of opening the business to the public. $70,000 on the second anniversary of opening the business to the public. The Project cost is approximately $1,000,000. The CEDC is funding $220,000 of the project. Colby Monroe and Kevin Hawkins, owners of the Joe’s restaurants in Amarillo reached out to the CEDC last December with the idea of bringing a second location for Joe Taco to Canyon. The location that was of interest to them, was 502 15th Street, formerly Read Automotive. The CEDC acquired the property August 2016. This project meets the requirements in which we can grant funds. The new restaurant will create jobs and increase the sales tax revenue for the city. As well as offering more options for the local and out of town customers. In 2010 the CEDC revisited their strategic plan and one of the desired outcomes was to stop the “vacuum” of local dollars leaving the community. Projected opening date for Joe Taco Canyon is November-December of this year. I have included a copy of the Project Funding Agreement for Joe Taco Canyon, LLC. This is the second and final reading for Resolution No. 18-2017. Staff concurs with the CEDC’s recommendation that Resolution No. 18-2017 be adopted. City of Canyon  CANYON ECONOMIC DEVELOPMENT CORPORATION PROJECT FUNDING AGREEMENT JOE TACO CANYON, LLC 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 JOE TACO CANYON, LLC, a Texas Limited Liability Company (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 SUBTITLE C1, TITLE 12, TEX. LOC. GOV’T CODE, 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 enhance the quality of life of the citizens of Canyon and the surrounding area. 2. The project and performance requirements to be implemented by means of this agreement are described as follows: a. Second Party shall construct the improvements necessary to open a retail food and beverage service business at 502 15th Street, Canyon, Texas. b. The improvements shall be constructed on Lots 1, 2 and 3, Block 49, Original Town of Canyon, Randall County, Texas at Second Party’s expense. c. The improvements contemplated by this agreement shall be constructed in accordance with written plans and specifications and approved by CEDC. d. Second Party will remain in business in Canyon for a period of (5) years from the date of funding by CEDC engaged in a retail business which collects sales tax on retail sales to the public. 3. CEDC will lease the building and land described in ¶2(b) above for the purpose of the business venture contemplated by this agreement, by a separate lease agreement providing for a primary term of five (5) years, a renewal term of five (5) years, an option to purchase and right of first refusal in favor of CEDC to repurchase the property as more specifically set forth in such lease agreement. CEDC shall also provide the following cash incentives if Second Party is not in default hereunder: (a.) $50,000 upon issuance of construction permits for the improvements; (b.) $50,000 upon issuance of the certificate of occupancy; PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -1-  (c.) $50,000 on the first anniversary of opening the business to the public; and, (d.) $70,000 on the second anniversary of opening the business to the public. 4 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. 5. Second Party agrees to undertake the following actions in order to accomplish the project: a. Comply at all times with the requirements of paragraph 2 of this agreement during the term of this agreement. b. Permit periodic inspection of improvements to 502 15th Street, Canyon, Texas as work progresses. 6. Second Party makes the following covenants and warranties to the CEDC and agrees to timely and fully perform the following obligations and duties: a. Any false or substantially misleading statement contained herein or the failure of 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 8 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 of Second Party and all necessary corporate 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 necessary authority for the agent whose signature that appears below is evidenced by a resolution or certificate furnished to CEDC or attached to this agreement. PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -2-  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. To Second Party’s knowledge, no additional consent, approval, or authorization of a governmental entity or other authority is required in connection with the execution and performance of this agreement or the transactions contemplated hereby. e. To Second Party’s knowledge no 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 as stated in this agreement and within the scope of the project as stated in this agreement and for no other purpose. i. 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 required by this agreement and shall provide the necessary staff and employees 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) days. Substantial changes shall mean changes in executive officers, board members, managers or ownership. m. The Second Party agrees that with regard to all programs and activities arising out of this agreement, the Second Party shall fully comply with all civil rights acts and PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -3-  specifically will not discriminate against any person upon the basis of race, color, national origin, gender, or by reason of being disabled. 7. The CEDC under the following circumstances and at the sole discretion of its board of directors may terminate this 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. 8. 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. 9. 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 correction, removal, or abatement of such delays by using its best efforts, CEDC may consent and excuse any such delay, which consent shall not be unreasonably conditioned or withheld. The failure by Second Party to continuously and diligently pursue compliance shall constitute an act of default. 10. 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. 11. 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. 12. 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, attorney’s fees, PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -4- court costs, actual or consequential damages, direct or indirect, for any act of default by CEDC under the terms of this agreement. It is further stipulated and agreed that CEDC shall only be required to pay the 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 however, 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. 13. This agreement incorporates the entire agreement of the parties hereto and supersedes any oral or written previous and 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 written agreement of the parties. 14. 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 of the CEDC or employees of the CEDC. This contract shall not benefit any third party not a direct party to this agreement. 15. 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 and Second Party except as provided herein. 16. This agreement may be executed in a number of identical counterparts each of which shall be deemed an original upon execution and shall constitute the same instrument. 17. 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 without regard to any conflict of laws provision. 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. 18. 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 agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein. PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -5-  19. This agreement is subject to all legal requirements contained in the Municipal Charter of the City of Canyon and Code and 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. 20. 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. 21. 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. 22. 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. 23. 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 JOE TACO CANYON, LLC CORPORATION By:_______________________________ By:_________________________________ Larry Don Lee, President/Chairman Name:___________________________ Title:____________________________ PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -6- Address: 1604 4th Avenue, Suite 21 Address: P. O. Box ________________ Canyon, Texas 79015 Canyon, Texas 79015 Telephone: (806) 656-6833 Telephone:_______________________ By:_____________________________ Name:___________________________ Title:____________________________ Address: P. O. Box ________________ Canyon, Texas 79015 Telephone:_______________________ PROJECT FUNDING AGREEMENT – JOE TACO CANYON, LLC Page -7-  RESOLUTION NO. 18-2017 RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CANYON APPROVING PROJECT FUNDING AGREEMENT BETWEEN JOE TACO CANYON, LLC AND CANYON ECONOMIC DEVELOPMENT CORPORATION REGARDING DIRECT FINANCIAL ASSISTANCE FOR IMPROVEMENTS ON PROPERTY LOCATED AT 502 15TH STREET, CANYON, TEXAS. THE FUNDING IS BASED ON NEW BUSINESS DEVELOPMENT. WHEREAS, on AUGUST, 10, 2017 the Canyon Economic Development Corporation (“CEDC”) conducted 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”) and to consider a funding agreement for 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 enhance the quality of life of the citizens of Canyon and the surrounding area. WHEREAS, the City Commission of the City of Canyon, Texas, finds it to be in the public interest to execute a Project Funding Agreement between the Canyon Economic Development Corporation and Joe Taco Canyon LLC., a registered entity qualified to do business in Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CANYON, TEXAS: That the Lease Agreement by and between CEDC and Joe Taco Canyon LLC. be, and it is hereby approved, and the sales tax revenue collected pursuant to “the Act” by CEDC may be used for the primary purpose of financial assistance for new business development. The sales tax revenue referred to in this Resolution shall be the revenue on deposit in Sales Tax Improvement Fund (Fund 40) for direct costs related to the project. INTRODUCED at the First Reading on the 21st of August, 2017, and Adopted on the Second Reading on the 5th of September, 2017. ________________________________ GARY HINDERS, MAYOR ATTEST: _______________________________ Gretchen Mercer, City Clerk REGARDING ITEM 9 AGENDA To: Mayor and City Commission From: Randy Criswell, City Manager Date: Sept 5, 2017 Re: Budget Work Session. At the last Budget Work Session there were no other items brought up for discussion as far as changes, so we’ve left the budget as prepared for that meeting. We always put this item on the Agenda up until the night we adopt the Budget, in case of a last- minute change, but we have not made any changes. I feel good about this budget and the commitments it makes to service for our customers. I appreciate all of your hard work on this, as elected officials, and all the work by the staff. This is never easy, but working together, we’ve succeeded in establishing a good financial plan for the next year. We’ll be prepared to answer any questions if you have any. City of Canyon REGARDING ITEM 6 AGENDA To: Randy Criswell, City Manager From: Chris Sharp, Assistant City Manager Date: August 29, 2017 Re: Hold Second Public Hearing on Proposed Tax Rate for Fiscal Year 2017- 2018 Pursuant to the Texas Truth in Taxation Laws, we must hold two public hearings if we are adopting a tax rate higher than the effective rate. After updating our proposed budget, we are anticipating increasing the effective tax rate of $.43410 by 4.78% to $.45484 ($.39083 M&O, $.06401 I&S) per $100 valuation. Tonight is the second of two required public hearings. No other action is required at this time. City of Canyon