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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Agenda Date Requested: 10/31/2007 <br /> <br />Bud2et <br /> <br />::::.::' :::::k '1 <br /> <br />Source of Funds: <br /> <br />N/A <br /> <br />Account Number: <br /> <br />N/A <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: X <br /> <br />Amount Budgeted: <br /> <br />N/A <br /> <br />Exhibits: Proposed Agreement <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Attached you will find a copy of the proposed ED Incentives Grant Agreement between the <br />City of La Porte and WesMor Cryogenic Manufacturing L TO for your review and <br />consideration. <br /> <br />As you may recall, the initial discussions with representatives of WesMor occurred in mid- <br />February of this year. They were introduced to us through the Economic Alliance who had <br />heard of their plans to possibly relocate. At the time, the company was looking to relocate to <br />the City of Pearland for expansion of their operations as they had found a less expensive <br />location which seemed to suit their needs. The City Manager, Ms. Feazelle, worked with the <br />Alliance and Intern Mike Stokes to facilitate meetings between the City and WesMor in the <br />hopes that we could encourage them to remain in our City. Representatives were given an <br />application for tax abatement and also informed that there might be the possibility of receiving <br />support from the LPEDC. <br /> <br />After the initial discussions, for whatever reason, there was miscommunication between city <br />staff and WesMor representatives. The result of that miscommunication was that the <br />representatives from WesMor thought that they would qualify for tax abatement when in fact <br />they did not. <br /> <br />When the Interim City Manager John Joerns brought this matter to the attention of the City <br />Council the resulting determination was to have staff develop other avenues of support for <br />the Council to consider for the project. The result of the collaboration between the Interim City <br />Manager, staff and the Assistant City Attorney has resulted in the attached 380 agreement. <br />Please be aware, that while this agreement does not include recapture provisions if they do <br />not achieve their first year sales tax bench mark the agreement may be considered void <br />thereby, making recapture much less of an issue than with other incentive agreements. <br /> <br />Action Required by Council: <br /> <br />Approve the attached Ordinance authorizing the Mayor to execute the Economic <br />Development Grant Agreement between the City of La Porte and WesMor Cryogenic <br />Manufacturing LTD. <br /> <br />1 <br />