Res 110-2016 11/1/2016Resolution No. _110-2016__
Resolution approving the programs and expenditures of the
Wichita Falls Economic Development Corporation (WFEDC) and
amending the budget to include up to $128,000 for Chantex
Manufacturing Inc., to purchase equipment needed to expand
operations for the fabrication and assembly of highly pressured
vessels
WHEREAS, Texas Local Gov’t. Code § 501.073(a) provides “The corporation's
authorizing unit will approve all programs and expenditures of a corporation and
annually review any financial statements of the corporation”; and,
WHEREAS, on October 19, 2016, the WFEDC approved the Project listed below
and as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The Wichita Falls Economic Development Corporation’s approval and funding
of the following programs and expenditures as described below and in said
corporation’s agenda, are approved:
A $128,000, No Interest, Forgivable Loan to the Chantex
Manufacturing Inc., for a period of seven years for the acquisition of
two new, twenty-ton cranes to be installed at the new 7,500 sq. ft.
facility. The purchase price of the cranes is approximately
$170,000.
The 4A Corporation would require a first lien position on this
equipment.
For each year that the company creates and maintains 28
employees (16 additional positions), the loan would be forgiven at
the rate of 14.29% per year. At the end of year seven, the
company would own the equipment outright. If the company is
unable to create and maintain the jobs specified, the amount of the
loan not already forgiven would be repayable to the City.
2. The current fiscal year budget of the WFEDC is amended to provide for the
aforementioned expenditures and changes thereto.
PASSED AND APPROVED this the 1st day of November, 2016.
______________________________
M A Y O R
ATTEST:
____________________
City Clerk