09-20 and 09-21-10 Special Called Regular Meeting of Fiscal Affairs Committee

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CITY OF LA PORTE, TEXAS Agreed Upon Procedures - Five Points Town Center Project (Continued) September 21,2010 . Review the expenditure of funds by the 4B Development Corporation for the S-Points Project for compliance with applicable state statutes. (This procedure was addressed under "Review EDC Project Plan and Associated Documents for Compliance with State Statutes") . Verify proper authorization for expansion of funding for the Project. . Review transactions between the City and Developer as they relate to the following: o Criteria used for providing of a loan to the Developer. o Review loan documents to determine compliance with the agreement and applicable laws and regulations. o Obtain Confmnation from the City to determine the depositor of a wire transfer used for repayment of the loan. . Review various real estate transactions between the City/4B Development Corporation and the Developer as they relate to the following: o The sale of a portion of San Jacinto Street to the Developer. o Payment of property taxes on the Triangle property. o Review of evidence of payments made by City to all parties at closing on Triangle Property. o Review of HUD-I known as Exhibit C for proper execution. o Review title history along with lien documents on property, if available, and timing of transactions. . Prepare report. . Review the procedures completed and the report. Each of these items is addressed individually below. IV. Detail of Procedures Performed and Results 1. Obtain Further Understandinl! of Five Points Proiect: Because of the overall complexity of the Project, we began our procedures by viewing documents provided by the City and the City Attorney in order to gain an overall understanding of the Project goals, the timing of events, responsible parties, and applicable state and local codes. We read meeting minutes related to the Project including those for the Council, EDC, and FAC from February 2008 (before Project approval) to June 2010. These were obtained from the City's website. Also, we interviewed Katherine Aguilar, a concerned citizen. It was represented to us by the F AC that she had submitted public information requests concerning many of the questions raised and had attended a majority of public meetings related to the Project. Present at this interview were FAC Chairman and Councilman, Chuck Engelton and FAC member, Louis Rigby. During the interview, Mrs. Aguilar discussed many of her questions and concerns related to the Project. Information obtained in this interview was used to assist in developing our list of tasks planned and performed, as well as to better our understanding of the Project and public concerns related to it. Also interviewed were the members of the F AC in order to gain a better understanding of the Proj ect as a whole, as well as an overview and background of some of the concerns that have been raised by citizens of La Porte. 6