Title
Consider a resolution approving the action of Round Rock Transportation and Economic Development Corporation in terminating the Economic Development Program Agreement with Sovos Brands Intermediate, Inc.
Body
The Round Rock Transportation and Economic Development Corporation entered into an Economic Development Program Agreement with Sovos Brands Intermediate, Inc., on December 5, 2019, to rehabilitate and install new equipment in a facility and create new jobs within the City. The City was able retain Sovos in Round Rock and benefit from it's expansion. The company did meet its investment requirements; however, due to sudden economic changes starting in 2020, the company will no longer be able to meet its job requirements per the Agreement.
Both parties wish to terminate the Economic Development Program Agreement. No incentives were paid after the first year, and no claw backs are recommended.
Recommended Action:
Staff recommends approval.