Title
Consider/Discuss/Act on a Resolution Terminating the Chapter 380 Agreement by and between the City of McKinney, Texas and Tatum Tek Modular LLC and Mutually Releasing Both Parties from Any Further Obligations, and Authorizing the City Manager to Execute the Agreement; and Providing an Effective Date
Summary
COUNCIL GOAL: Operational Excellence
MEETING DATE: October 4, 2021
DEPARTMENT: City Manager’s Office
City Attorney’s Office
CONTACT: Paul Grimes, City Manager
Mark S. Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION: Staff recommends approval of the proposed Resolution terminating the Chapter 380 Agreement by and between the City of McKinney, Texas and Tatum Tek Modular LLC and mutually releasing both parties from any further obligations, and authorizing the City Manager to execute the Agreement.
ITEM SUMMARY: This Resolution would authorize the City Manager to terminate the existing Chapter 380 Agreement with Tatum Tek Modular LLC, dated effective as of December 31, 2020. Upon termination, both parties would be released from any and all obligations contained in the Agreement.
BACKGROUND INFORMATION: The City previously entered into a Chapter 380 Agreement with Tatum Tek Modular LLC wherein the City offered certain incentives for the construction of a manufacturing facility and corporate headquarters in the City of McKinney. Due to changing market conditions, Tatum Tek Modular LLC is no longer able to satisfy the obligations contained in the Agreement, and has requested that the Agreement be terminated.
FINANCIAL SUMMARY:
N/A
BOARD OR COMMISSION RECOMMENDATION