AGENDA CAPTION:
Title
Consider approval of Resolution 2019-21R, approving an amendment to the Chapter 380 Economic Development Incentive Agreement with Urban Mining Company and Urban Mining Development, LLC that extends the date by which the company shall being construction of its facilities, provides for the company to dedicate land to the City for the Rattler Electric Substation and provides for offsets against any grant payments due for any unpaid amounts under a contribution in aid of construction agreement related to the construction of said substation; authorizing the City Manager to execute the agreement; and declaring an effective date.
Body
Meeting date: January 29, 2019
Department: CMO - Steve Parker, Assistant City Manager / CFO
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: Council adopted Resolution No. 2017-78R, approving an agreement with Urban Mining Company and Urban Mining Development, LLC on April 18, 2018.
City Council Strategic Initiative:
N/A
Comprehensive Plan Element (s):
☒ Economic Development - Fiscally Responsible Incentives for Economic Development
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Not Applicable
Master Plan:
Vision San Marcos - A River Runs Through Us
Background Information:
The existing agreement, effective April 18, 2017, required that Urban Mining begin operations before June 30, 2018. This Resolution amends Section 3.01 of the agreement to require that Urban Mining begin operations before December 31, 2019. The agreement is also amended to memorialize the intent of Urban Mining Development, LLC to dedicate approximately 2.4 acres of land to the City of San Marcos for the construction of an electric service sub-station, and to enter into a separate Contribution In Aid of Construction agreement for related improvements.
Urban Mining Company was issued a Complete Site Prep Permit on March 2, 2018 and construction is currently underway. Urban Mining intends to make a minimum capital investment in real and personal property of approximately $25 M, and will employ a minimum of 100 persons, during the term of the agreement, in permanent, full time positions earning at least $15 per hour.
Council Committee, Board/Commission Action:
N/A
Alternatives:
Take no action.
Recommendation:
Staff recommends approval.