02-12-13 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Appropriation Agenda Date Requested:February 12, 2013 Source of Funds: Requested By:Traci Leach Account Number: Department:CMO Amount Budgeted: Report:Resolution:Ordinance: Amount Requested: Budgeted Item:YESNO ExhibitProject Facts and Figures SUMMARY & RECOMMENDATION In November 2012, the La Porte Development CorporationBoard held a public hearing for an infrastructure incentive request for the proposed Intergulf Corporation world headquarters building, west side of the SH 146 Frontage Road, between C and D streets located on the . Intergulf intends to purchase the property between the existing G and P Office Furniture store and the Hammelman building, which is under construction now. G and P has indicated that it does not intend to lay claim to the half of the C Street right-of-way. Intergulf has requested an incentive amount of $500,000to expand the available parking on the property. Since the November2012 meeting, the City has not received a qualified petition opposing the designation of this incentive as a project. The Board has previously designatedthe incentiveas a projectand tonight the Board must consider whether to formally fund theproject under Section 501 of the Local Government Code and in what amount. The public hearing notice was posted with a “not to exceed” incentive amount of $500,000 to provide the Board maximum flexibility when considering this request. Should the Board designate the incentive request as a project of theLa Porte Development Corporation Board, staff will place this item on the next Council agenda for Council approval and move forward to develop an incentive agreement between the Development Corporation and Intergulf outlining the obligations of all parties. Additionally, staff is recommending that Intergulf close on the adjacent property and close the right of way prior to making any payment to Intergulf. This would make the transaction simpler by eliminating the City as a party to the agreement, which would be the case if the improvements were made prior to Intergulf taking possession of the right of way. Action Required by the La Porte Development Corporation Board: Consider approval or other action to fundthe expenditure of an infrastructure incentiveto Intergulf Corporationas part of an approved project of the La Porte Development Corporation. Approved for La Porte Development Corporation Agenda Corby D. Alexander, City ManagerDate