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HomeMy WebLinkAbout26-1216Docusign Envelope ID: F72AD368-DF17-824B-83BF-21 D4379DA9EE ORDINANCE NO. 26-1216 AN ORDINANCE OF THE CITY OF DENTON APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND HICKORY & RAIL VENTURES, LLC, REGARDING AN ECONOMIC DEVELOPMENT PROGRAM FOR STOKE DENTON, IN THE AMOUNT OF $158,000; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton ("City") deems it is in the public interest and serves a municipal and public purpose to enter into an agreement with Hickory & Rail Ventures, LLC ("HRV"), for the purpose of providing for a program to promote economic development through the joint effort of the City and HRV; and WHEREAS, to achieve this public purpose, the City created Stoke Denton in 2016 to offer a co -working space and access to resources to support entrepreneurship, small business development, and the development of tech and tech -enabled businesses and workers; and WHEREAS, Stoke Denton is focused on the recruitment and support of tech and tech - enabled startups, as well as memberships of businesses in other sectors that are complementary to a healthy startup community; and WHEREAS, the City contracted with HRV on November 14, 2017 for the management and operation of Stoke Denton, and WHEREAS, HRV has submitted a proposal to the City for the continued support and management of Stoke Denton and entrepreneurship focused programming beginning October 13, 2026 in the amount of $158,000; and WHEREAS, Article III, Section 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code authorize the City to enter agreements that promote local economic development and stimulate business and commercial activity in the City of Denton; and WHEREAS, the City agrees that HRV is uniquely positioned to continue management of Stoke Denton and can assist in the City's strategic goals to support entrepreneurs, startups, and other small businesses and support the recruitment and growth of tech and tech -enabled businesses and workers; WHEREAS, City Council deems it in the public interest to authorize such a payment and program agreement; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The City Council finds that the Agreement between the City and Hickory & Rail Ventures, LLC, attached hereto and made a part hereof by reference (the "Agreement") serves a Docusign Envelope ID: F72AD368-DF17-824B-83BF-2lD4379DA9EE valid municipal and public purpose and is in the public interest. SECTION 3. The Agreement shall be effective on October 13, 2026 and shall remain in full force and effect until September 30, 2027. SECTION 4. The City Manager is hereby authorized to execute the agreement between the City and Hickory & Rail Ventures, LLC, and the expenditure of funds pursuant to the Agreement is hereby authorized. SECTION 5. The City Council hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City under the Agreement to the City Manager of the City, or the City Manager's designee. SECTION 6. This Ordinance shall become effective upon its passage and approval. The motion to approve this ordinance was made by seconded by George Ferrie the following vote [s - 0 ]: Aye Chris Watts, Mayor: Jordan Villarreal, District 1: Nick Stevens, District 2: Suzi Rumhor, District 3: V Joe Holland, District 4: George Ferrie, At Large Place 5: Jill Jester, At Large Place 6: PASSED AND APPROVED this the 27th Suzi Rumohr and the ordinance was passed and approved by Nay Abstain Absent day of October , 2026. 01 / - ��� "�� - CH WATTS, NftUk Page 2 Docusign Envelope ID: F72AD368-DF17-824B-836F-21 D4379DA9EE ATTEST: KRISTI GILBERT, CITY SECRETARY BY: t *20a� APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY CS-Vned W. s.Af 'Jrtw_ cm>mmw BY: 59757F95914E488... m Page 3 Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND HICKORY & RAIL VENTURES, LLC THIS AGREEMENT is made and entered into as of the day of , 2026 between the City of Denton, Texas, a home rule municipal corporation, hereinafter referred to as the "City", and Hickory & Rail Ventures, LLC, a Texas limited liability company hereinafter referred to as "HRV", jointly referred to herein as "parties" and each separately as a "party." WHEREAS, the City seeks to support, encourage, and promote the public purpose of driving new business creation and job growth by fostering a sustainable startup community for entrepreneurs primarily in early -stage tech and tech -enabled businesses; and WHEREAS, to achieve this public purpose, the City created in 2016 a co -working space with access to resources to support entrepreneurship, small business development, and the development of tech and tech -enabled businesses and workers ("Stoke Denton"); and WHEREAS, Stoke Denton is focused on the recruitment and support of tech and tech - enabled startups, as well as memberships of businesses in other sectors that are complementary to a healthy startup community; and WHEREAS, the City contracted with HRV on November 14. 2017 for the management and operation of Stoke Denton, and WHEREAS, HRV has submitted a proposal to the City for the continued support and management of Stoke Denton and entrepreneurship focused programming beginning October 13, 2026 in the amount of $158,000; and WHEREAS, Article I11, Section 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code authorize the City to enter agreements that promote local economic development and stimulate business and commercial activity in the City of Denton; and WHEREAS, the City agrees that HRV is uniquely positioned to continue management of Stoke Denton and can assist in the City's strategic goals to support entrepreneurs, startups, and other small businesses. NOW THEREFORE, in consideration of the covenants, promises, terms, and provisions contained herein, and for the considerations expressed herein, the City and HRV mutually AGREE to the following: Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE ARTICLE I SERVICES TO BE PROVIDED BY HRV HRV represents, acknowledges, warrants, and agrees to perform and provide the following with regard to its operation, purpose, and services provided for Stoke Denton: (1) Purpose. HRV agrees to operate Stoke Denton for the purpose of providing support to entrepreneurs, startups, small businesses, tech and tech -enabled workers, and remote workers in Denton. The goal of the partnership will be to build businesses, create jobs, and strengthen the culture and economy of the City of Denton. (2) Mission. HRV, through Stoke Denton, will support programs, partnerships, events, and activities that will build a supportive entrepreneurial ecosystem in the City of Denton. (3) Independent. HRV operates as a private legal entity separate from the City. This Agreement does not in any way constitute a joint venture or create a partnership or principal -agent relationship between the City and the HRV. Neither party will assert control over the operations of the other party. (4) Organization. HRV is a Texas limited liability company duly organized and validly existing under the laws of the State of Texas and is qualified to do business in the State of Texas. HRV has the legal capacity and authority to enter into and perform its obligations under this Agreement. (5) Administration. HRV will administer funds, property, services, or other benefits in accordance with the following procedures and requirements: a. HRV shall maintain records and accounts that document all funds received by HRV and all costs incurred by HRV, including any in -kind support received by HRV. b. HRV shall provide a report to the City of Denton Economic Development Partnership Board annually to summarize HRV's financial information and benefit to the City as it relates to the performance under this Agreement. c. A copy of any HRV financial audits upon request and required tax filings shall be provided annually. (6) Staff. HRV shall employ an Executive Director for the entirety of this Agreement. HRV must also maintain the appropriate staff to carry out the functions of Stoke Denton in accordance with this Agreement. The Executive Director and any other staff member of HRV are employees of HRV and shall not be considered an employee of the City and shall not be entitled to any payment or benefit from the City on account of services performed pursuant to this Agreement. 0a Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE (7) Commercial space. HRV shall secure a lease agreement for the Commercial Space and will maintain at its sole cost any utilities, contracts, equipment, supplies, or materials necessary to perform the obligations pursuant to this Agreement. (8) Equipment and Supplies. HRV shall provide any equipment, supplies, or materials necessary to fulfill the obligations of this Agreement, except those provided for in Article II of this Agreement. (9) Performance. HRV will perform all actions listed in Exhibit A "Scope of Work" attached hereto and incorporated herein for all purposes. (10) Reporting. HRV will attend meetings and submit reports on actions and progress according to the following schedule: a. Semi-annual meetings between Stoke Denton Executive Director and City's Director of Economic Development. b. Progress on economic development strategic work plan items will be provided to City's Director of Economic Development or designated staff as needed, but no less than quarterly.. c. Quarterly reports to be provided by Stoke Denton Executive Director to City's Director of Economic Development or designated staff, which must include the following: i. Number of total active memberships providing a quarterly membership roster to Director including: a) Industry representation of members b) Membership satisfaction (at least annually) c) Duration of memberships d) Denton businesses d. Annual report and presentation to the City's Economic Development Partnership Board including economic impact of Stoke services. (11) Sponsorship and Acknowledgement. For any programs listed in Exhibit A which are supported by or partially supported by funding provided by this Agreement, the City must be listed as a co-sponsor and acknowledged on any applicable marketing materials and event materials, both verbally and in print, whenever possible. (12) Promotions. Must actively tag the City's Economic Development social media channels in all digital marketing, promotions, and live event coverage related to City - funded events or programs. (13) Recapture. Failure to complete any of the items in the Scope of Work shall result in the recapture of funds allocated for that item by the City. HRV shall return any funds received pursuant to this Agreement allocated to any item HRV fails or refuses to complete during the term of the Agreement within ten (10) days of receiving written notice of such failure from City. 3 Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE ARTICLE II OBLIGATIONS OF THE CITY OF DENTON The City will provide the following to HRV: (1) Funding. The City shall pay One Hundred Fifty -Eight Thousand One Hundred Seventy Dollars ($158,000) to HRV to be utilized for the purposes set forth in Exhibit A. Payment shall be made no later than October 31, 2027. (2) Brand, logo, and Other Intellectual Property. The City hereby transfers the City's ownership of the brand and logo of Stoke Denton to HRV for the purposes of operating or marketing Stoke Denton and for other purposes required in carrying out the terms of this Agreement. The ownership rights to the brand and logo of Stoke Denton granted from City to HRV by this Agreement will immediately, automatically and completely revert to City for its sole benefit in the event HRV ceases to manage and operate Stoke Denton for the purposes provided in this Agreement or otherwise breaches or terminates this Agreement. ARTICLE III TERM OF THE AGREEMENT This Agreement shall be effective on October 13, 2026, and shall remain in full force and effect until September 30, 2027. The City or HRV shall have the right to terminate the Agreement, in whole or in part, without cause any time upon sixty (60) calendar days' prior written notice to the other party. Upon receipt of a notice of termination by the City, HRV shall promptly cease all further work pursuant to the Agreement, with such exceptions, if any, specified in the notice of termination. If this Agreement is terminated by HRV, or terminated for cause by the City because HRV fails to meet the performance requirements of this Agreement, HRV shall pay the City a prorated amount of the fundsprovided by the City pursuant to this Agreement, which amount shall be prorated to the months remaining in the term of this Agreement. HRV shall submit contract renewal request by written notice including required documentation to the City no later than ninety (90) calendar days prior to the expiration date of this Agreement. Failure to submit such request and notice within the specified timeframe may result in delayed processing. An annual questionnaire must be completed along with funding requests. The City may terminate this agreement for cause effective immediately upon delivering notice to HRV if at any time during the term of this Agreement it reasonably determines that HRV will not or cannot complete its obligations hereunder. ARTICLE IV ASSURANCES BY THE PARTIES 4 Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE The following is a list of representations, assurances, understanding, policies, procedures, and agreements regarding the roles, relationship, and functions of the City and HRV in their working relationship pursuant to this Agreement: A. Any agreement between the HRV and City that is not within the scope of the terms of this Agreement shall receive the prior approval of the City Council. B. HRV has no authority to supervise, direct, control, or demand that a City employee perform any function on behalf of HRV. C. This Agreement does not grant HRV authority to use the City's name and trademarks unless directly specified in this Agreement. D. Any personnel employed by or volunteering on behalf of HRV shall be deemed employees or volunteers respectively of the HRV and shall not be deemed employees or volunteers of the City. HRV shall be responsible for the supervision, management, and control of such HRV employees and volunteers and any payroll, taxation, or other employment obligation, if any, incident to their work. Any personnel employed by or volunteering on behalf of the City shall be deemed employees or volunteers respectively of the City and shall not be deemed employees or volunteers of the HRV. The City shall be responsible for the supervision, management, and control of such City employees and volunteers and any payroll, taxation, or other employment obligation, if any, incident to their work. E. HRV shall maintain general liability insurance in the amount of $1,000,000 and in accordance with City insurance requirements, including adding the City as an additional insured party. F. HRV will appoint a representative who will be available to meet with City officials when requested. G. HRV AGREES TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE CITY, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR INJURIES, DAMAGE, LOSS, OR LIABILITY OF WHATEVER KIND OR CHARACTER, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE BY HRV OR THOSE SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ALL SUCH CLAIMS OR CAUSES OF ACTION BASED UPON COMMON, CONSTITUTIONAL, OR STATUTORY LAW, OR BASED, IN WHOLE OR IN PART, UPON ALLEGATIONS OF NEGLIGENT OR INTENTIONAL ACTS OF HRV, ITS OFFICERS, EMPLOYEES, AGENTS, VOLUNTEERS, SUBCONTRACTORS, LICENSEES, AND INVITEES. H. HRV acknowledges that in accordance with Chapter 2271 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott s Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Agreement, HRV certifies that HRV's signature provides written verification to the City that HRV.• (1) does not boycott Israel; and (2) will not boycott Israel during the term of the Agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. I. HRV acknowledges that in accordance with Chapter 2276 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains written verification from the company that it (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. The terms "boycott energy company" and "company" shall have the meanings ascribed to those terms in Section 809.001 of the Texas Government Code. By signing this agreement, HRV certifies that HRV's signature provides written verification to the City that HRV. (1) does not boycott energy companies, and (2) will not boycott energy companies during the term of the Agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. J. HRV acknowledges that in accordance with Chapter 2274 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains written verification from the company that it (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. The terms "discriminate against a firearm entity or firearm trade association," "firearm entity" and "firearm trade association" shall have the meanings ascribed to those terms in Chapter 2274 of the Texas Government Code. By signing this Agreement, HRVicertifies thatHRV's signature provides written verification to the City that HRV. (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. Failure to meet or maintain the requirements under this provision will be considered a material breach. K. Section 2252 of the Texas Government Code restricts City from contracting with companies that do business with Iran, Sudan, or a foreign terrorist organization. By signing this Agreement, HRV certifies that HRV's signature provides written verification to the City that HRV, pursuant to Chapter 2252, is not ineligible to enter into this Agreement and will not become ineligible to receive payments under this Agreement by doing business with Iran, Sudan, oraforeign terrorist organization. Failure to meet or maintain the requirements under this provision will be considered a material breach. L. The City of Denton may terminate this Agreement immediately without any further liability if the City of Denton determines, in its sole judgment, that this Agreement meets the requirements under Chapter 2275, and HRV is, or will be in the future, (i) owned by or the majority of stock or other ownership interest of the company is held or controlled by individuals who are citizens of China, Iran, North Korea, Russia, or rel Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE other designated country (ii) directly controlled by the Government of China, Iran, North Korea, Russia, or other designated country, or (iii) is headquartered in China, Iran, North Korea, Russia, or other designated country. ARTICLE V NOTICE Any notice or other written instrument required or permitted to be delivered underthe terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via electronic mail, hand -delivery or facsimile, addressed or sent to HRV or the City, as the case may be, at the following addresses: CITY City of Denton, Texas Attn: City Manager 215 E. McKinney St. Denton, TX 76201 Cassey.Ogden@cityofdenton.com City of Denton, Texas Attn: Director of Economic Development 401 N. Elm St. Denton, TX 76201 Hickory & Rail Ventures, LLC Hickory & Rail Ventures, LLC Attn: Heather Gregory 608 E. Hickory Denton, TX 76205 Heather@stokedenton.com ARTICLE VI RIGHT TO AUDIT HRV agrees to retain all books, records, documents, reports, and written accounting policies and procedures pertaining to services provided under this Agreement for a period of five (5) years. The City shall have the right to audit and make copies of the books, fundraising activities, pledges, donations, gifts, statements, financial records, and computations pertaining to the Agreement. ARTICLE VII ADMINISTRATION OF AGREEMENT HRV shall designate an officer responsible for the administration of the Agreement for HRV. The City Manager, or designee, shall be the City staff member responsible for the administration of this Agreement on behalf of the City. ARTICLE VIII NO ASSIGNMENT The Agreement is solely between the parties and cannot be assigned to another party without the express advance written approval of the non -assigning party. Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE ARTICLE IX MODIFICATION OF AGREEMENT No modification of this Agreement shall be effective unless it is in writing and signed by both parties to the Agreement. ARTICLE X GOVERNING LAW AND VENUE This Agreement is subject to, governed by, and shall be construed under the laws of the State of Texas. Venue of any suit or cause of action arising under this Agreement shall be exclusively in Denton County, Texas. ARTICLE XI SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement, and shall not cause the remainder of this Agreement to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the parties hereto respecting the stricken provision. ARTICLE XII CAPTIONS The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. ARTICLE XIII COUNTERPARTS This Agreement may be executed in multiple counterparts, by one or more signatories, separately and each of such counterparts shall be deemed an original for all purposes, and all such signed counterparts shall constitute but one and the same instrument. For purposes of the parties' execution of this Agreement, it is expressly agreed that a facsimile or telecopy of a party's signature hereto shall be valid, binding and enforceable as the original. IN WITNESS THEREOF, the City and HRV have executed this Agreement in original counterparts, the City acting by and through its duly -authorized City Manager, and HRV acting by and through its duly -authorized undersigned officer. Docusign Envelope ID: F72AD368-DF17-824B-83BF-21D4379DA9EE ATTEST: KRISTI GILBERT, CITY SECRETARY APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY CSigned by: =�ra'T'y S� om��rn—, BY: 5Q757FQFQ1dF488 THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED As to financial and operational obligations and business terms. ESI,",d by: C4A76D1808B6439... 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