DATE:

 10-32-00      

SUBJECT: FINAL READING Of ORDINANCE 2000-O-266

                   Foreign-Trade Zone Operators Agreement

Authorizing the City Manager to execute a Foreign-Trade Zone Operators Agreement with Nippon Express USA, Inc. to operate an approximately 10,000 square foot facility within Foreign-Trade Zone No. 94-Site 3 located at the Killam Industrial Park for a term of one (1) year, with two-one year renewal options ending on October 31, 2003.  This site has been approved by the FTZ Board.

  

 

INITIATED BY: Cynthia Collazo

                               Asst. City Manager                          

STAFF SOURCE: Jose L. Flores

                                 Airport Director

 

PREVIOUS ACTION:

City Council has approved a similar request with .

 

 

 

BACKGROUND:

A Foreign-Trade Zone is a secured specialized area, in or adjacent to the U.S. Port of Entry, which is considered to be outside the Customs Territory of the United States.  Both foreign and domestic merchandise may be admitted to a Zone with no duty paid on the foreign merchandise unless and until it leaves the Zone for domestic consumption.  If the merchandise is exported, no duties are paid to U.S. Customs.

 

Nippon Express USA, Inc., presently leases approximately30,000 square feet of warehouse space located at Warehouse No. 4, within the Killam Industrial Park.  Of this space, Nippon Express USA, Inc., requests FTZ activation for 10,000 square feet.

 

Nippon Express USA, Inc., will be required to post a FTZ Operators Bond with the U.S. Customs Service in the amount of $100,000, a Foreign-Trade Zone Indemnification Bond (Grantee/Operator) in the amount of $100,000 naming the City of Laredo, Grantee of FTZ #94, as Obligee, as well as provide Public Liability Insurance in the amount of One Million Dollars for the benefit of the  City of Laredo, and naming the City of Laredo as additional insured.

 

FINANCIAL: The Operators Agreement provides the following fees:

a)      Initial Activation in the amount of two cents ($0.02) per square foot of activated space with a

      minimum of $500.00 and a Maximum of $5,000.00.

b)      Annual Administration fee of three cents ($0.03) per square foot of activated space, and

c)      An Activity fee of $2.00 for the following U. S. Customs transactions  (CF 214, CF 216 or their  

      equivalent).         

COMMITTEE RECOMMENDATION:  

          

STAFF: Recommends that the City Manager be authorized to execute an FTZ Operator Agreement with Nippon Express USA, Inc.

 

 

 

AN ORDINANCE 2000-O-266

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BY AND ON BEHALF OF THE CITY OF LAREDO AS ZONE GRANTEE OF FOREIGN-TRADE ZONE NO. 94 FOR THE OPERATION OF ZONE SITE 3 WITHIN SAID FOREIGN TRADE ZONE; AND SPECIFICALLY AUTHORIZING THE CITY MANAGER TO ENTER INTO AN OPERATIONS AGREEMENT  WITH NIPPON EXPRESS USA, INC.,   FOR  APPROXIMATELY 10,000 SQUARE FEET,  WITHIN FOREIGN-TRADE ZONE NO. 94-SITE 3 LOCATED AT THE KILLAM INDUSTRIAL PARK  IN RETURN FOR THE SERVICES PROVIDED BY THE CITY AS A FOREIGN-TRADE ZONE GRANTEE; PROVIDING FOR EFFECTIVE DATE.

 

 

 

            WHEREAS, the Airport Director  recommends that the City Council approve the proposed contract  between the City of Laredo, as Grantee, and Nippon Express USA, Inc., as Grantee of Foreign-Trade Zone No. 94, for approximately 10,000 square foot facility within Foreign-Trade Zone No. 94-Site 3 located at the Killam Industrial Park  and in furtherance of the development of the Foreign-Trade Zone No. 94.

 

            WHEREAS, the Airport Advisory Board finds that said contract is  in the best interest of the Airport; and

 

            WHEREAS, the City Council of the City of Laredo is of the same opinion.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1:         The City Manager be and is hereby authorized to execute a contract with Nippon Express USA, Inc. for approximately 10,000  square foot facility within Foreign-Trade Zone No. 94-Site 3 located at Killam Industrial Park for the operation of the Foreign-Trade Zone Site No. 3 within the Foreign Trade-Zone No. 94, granted by the Foreign-Trade Zones Board to the City of Laredo, a copy of which contract is attached hereto as Exhibit A, and incorporated herein as if set out at length.

 

Section 2:         This Ordinance shall become effective upon passage hereof.

 

 

AN ORDINANCE AUTHORIZING A CONTRACT BETWEEN THE CITY OF LAREDO AND NIPPON EXPRESS USA, INC.

 

 

            PASSED BY THE CITY COUNCIL AND APROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2000.

 

 

                                                                                    _________________________

                                                                                    ELIZABETH G. FLORES

                                                                                    MAYOR

 

ATTEST:

 

_____________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

 

BY:__________________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY