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HomeMy WebLinkAboutAgenda CC 09.14.1999Council Meeting Date: September 14, 1999 Item No. AGENDA ITEM COVER SHEET SUBJECT A resolution to terminate contract 716121 with the Texas Department of Economic Development on behalf of Alu-Cut International, Inc., terminate the associated lease agreement with the business and use the land purchased for this business as a future site for City facilities. ITEM SUMMARY Alu-Cut, a manufacturer of band saws and other equipment, received funding to construct a facility through the Texas Department of Economic Development's (TDED) Real Estate Program early in 1997 and committed to providing the community with 22 jobs. The City, using TDED program funds, purchased land for the business facility in July 1997. Problems arose during the design phase of the project that caused significant delays. Construction costs rose substantially during this period, creating a shortfall in funding for the project. Therefore, the business has requested that the real estate project through the Texas Department of Economic Development Real Estate program be canceled. Staff proposes to reimburse the state $93,045.03 and Georgetown Industrial Foundation for $5,522 for costs relating to the purchase of the land through this program. The City would then be able to use this land as the site for the relocation of Fire Station 1. The City currently holds the title to the land which is located on Industrial Avenue across from C3 Communications. COMMENTS The relocation of Station 1 to the south of its present location will decrease the overlap for stations 1 & 2 -and provide for needed coverage to the south area of Georgetown. The relocation will also provide needed driveway space for the daily operations and checking of fire apparatus. With the limited parking downtown, it is very difficult to enforce fire lanes that will allow for the proper turning radius needed .to get in and out of this older fire station. The relocation of the downtown fire station was identified in the 1994 Fire Services study. ATTACHMENTS Proposed resolution Submitted By: George Russell, Assistant City Manager G P:\ACCI'\GRANTS\TCF\ALUCUT\CANCELCS. WPD RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, AUTHORIZING THE TERMINATION OF THE CONTRACT WITH THE TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT (TDED) ON BEHALF OF ALU-CUT INTERNATIONAL, TERMINATION OF THE ASSOCIATED LEASE AGREEMENT WITH ALU-CUT , REIMBURSING THE TEXAS DEPT. OF ECONOMIC DEVELOPMENT FOR THE COST OF THE LAND AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Alu-Cut International, Inc. received funding to construction a facility through the Texas Department of Economic Development's Real Estate Program; and and WHEREAS, the City purchased land for the construction of the facility using TDED funds; WHEREAS, Alu-Cut International, Inc. has requested that the project be canceled; and WHEREAS, the City plans to relocate Fire Station No. 1 to the south part of the City; and WHEREAS, the City can use the land originally purchased for construction of the Alu-Cut facility for the relocation of fire station No. 1 by reimbursing TDED for the cost of the land; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct, and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this resolution implements the following policy of the Century Plan - Policy Plan Element: 1. Facilities and Services Policy End 4.0, which states: "The City provides for the safety of its citizens and supports the responsive delivery of coordinated services by the City and other public agencies," and 2. Finance Policy End 5.0, which states: "All municipal operations are conducted in an efficient business -like manner and sufficient financial resources for both current and future needs are provided;" and further finds that the adoption of this resolution is not inconsistent or in conflict with any other Century Plan Policies, as required by Section 2.03 of the Administrative Chapter of the Policy Plan. Resolution No. P:\ACCT\GRANTS\TCF\ALUCU]7\RESOLU.WPD Page 1 of 2 SECTION 2. The Mayor is hereby authorized to terminate, and the City Secretary to attest thereto, contract 716121 with TDED and the. lease agreement with Alu-Cut International on behalf of the City of Georgetown. SECTION 3. The City will pay a total of $98,567.03 for the 2.708 acres of land, previously purchased for the Alu-Cut International facility construction, for the future site for Fire Station No. 1, or other City facililty purposes as may be deemed appropriate. SECTION 4. This resolution shall be effective immediately upon adoption. RESOLVED this 14th day of September, 1999. ATTEST: Sandra D. Lee City Secretary APPROVED AS TO FORM: Marianne Landers Banks City Attorney THE CITY OF GEORGETOWN: By: MaryEllen Kersch Mayor Resolution No. P:\ACCT\GRANTS\TCF\ALUCUTIRESOLU.WPD Page 2 of 2