06-24-19 Regular Meeting of the La Porte City Council

Browse Search

LPDC may determine Recipient to be in default if Recipient fails to 1) achieve substantial completion of the Styrene Monomer Project by December 31, 2024, 2) meet any of the capital investment or job creation thresholds outlined in the schedule contained in Article I of this Agreement for the Styrene Monomer Project, or 3) fails to maintain a minimum $330,000,000 million HCAD valuation for the Styrene Monomer Project site and eighty-five (85) additional full-time employees for two (2) years following payment of the third and final incentive payment in the amount of $200,000.00. Should LPDC determine the Recipient to be in default of this Agreement, LPDC shall notify the Recipient in writing, and if such default is not cured within sixty (60) days from the date of such notice ("Cure Period"), then LPDC shall have the right to reclaim and recapture all or a portion of the cash incentive payments previously disbursed to Recipient with respect to the Styrene Monomer Project; provided, however, that in the case of a default that for causes beyond Recipient's reasonable control cannot with due diligence be cured within such sixty-day period, the Cure Period shall be deemed extended if Recipient (i) shall immediately, upon the receipt of such notice, advise the LPDC of Recipient's intention to institute all steps necessary to cure such default and (ii) shall institute and thereafter prosecute to completion with reasonable dispatch all steps necessary to cure same. LPDC shall have the right to reclaim and recapture all or a portion of the cash incentive payments previously disbursed to Recipient with respect to the Project, whether or not such disbursements have been spent by Recipient at the time of the reclamation by the LPDC. For purposes of this Agreement, LPDC's right of recapture shall apply to the full amount of the initial $250,000.00 incentive payment if Recipient fails to achieve substantial completion of the Project by December 31, 2024. Additionally, LPDC's right of recapture shall apply to the percentage of the capital investment and/or job creation targets not met by Recipient for the Project. In each such case, the applicable percentage of the previously paid cash payment or payments for the Styrene Monomer Project shall be remitted to the LPDC within sixty (60) days of receipt of written demand for same following the Cure Period. The applicable percentage of the capital investment and/or job creation target not met by Recipient shall be mutually agreed by the Parties; provided however, should the Parties fail to agree on such the Dispute Resolution clause in Article XV shall apply. In the event of a material breach by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this Agreement; and, furthermore, LPDC shall have the right to reclaim and recapture, and Recipient shall refund, any funds that are not spent in accordance with the terms of this Agreement, and any unspent and unobligated LPDC funds previously paid to Recipient but not yet paid or pledged by Recipient to third parties. In each such case, Recipient shall remit payments to the LPDC within sixty (60) of receipt of written demand for same. ARTICLE V The term of this Agreement is for a period beginning on the date of approval by LPDC and ending two (2) years from the date of the final payment by the LPDC of the proposed cash incentive to Recipient made pursuant to Article 1 of this Agreement. ARTICLE VI During the term of this Agreement, Recipient shall provide to the LPDC by December 31St of each calendar year following each payment made pursuant to Article 1 of this Agreement, a report and