06-27-16 Meeting of the La Porte Development Corporation Board of Directors

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ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION, AND NORTHERN SAFETY COMPANY, INC., A NEW YORK CORPORATION, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS th THIS AGREEMENT made by and entered into this 27 day of June 2016 between the La Porte Development Corporation, a Type B non-profit corporation operating under authority of Texas Local Government Code Chapters 501 and 505, hereinafter “LPDC”, and Northern Safety Company, Inc., a New York Corporation, hereinafter referred to as “Recipient”. WITNESSETH: WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within the City for promotion of economic development and the LPDC is authorized to use such tax revenues for certain qualifying projects and other economic development related purposes; and WHEREAS, Recipient is a New York based corporation, which is a national distributor of top quality safety and industrial supplies, and which employs positions classified as primary jobs, as the term “primary jobs” is defined in Chapter 501 of the Texas Local Government Code; and WHEREAS, Recipient is currently identified in the Sales Tax Analysis and Reporting Service (“STARS Report”) for Quarter #4 of 2015 as the “Northern Safety Company” at 301 E. Main Street in La Porte, TX; and WHEREAS, Recipient currently utilizes facilities for its business operations at 301 E. Main Street in La Porte, Texas and at 1475 Sam Houston Parkway, Pasadena, Texas; and WHEREAS, Recipient wishes to relocate and consolidate its current business operations in Pasadena and La Porte to a new site at 359 Pike Court, La Porte, Texas (“Business Site”), where it will make improvements of at least $140,000.00 to the Business Site, which it will lease for a minimum of five (5) years, to accommodate increasing business demand, creating an estimated increase to the business personal property tax base valuation in La Porte of $1,25,000.00, generating a minimum of $2,500,000.00 in new, annual taxable sales at site, and which operation is anticipated to employ an estimated one hundred and twenty (120) full time employees; and WHEREAS, Recipient has requested that LPDC provide financial incentives towards the proposed consolidation of Recipient’s business operations to the Business Site, under a qualifying project of the LPDC for the creation and retention of primary jobs, as authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of same, finding that such expenditures will contribute to 1) the creation or retention of primary jobs, and 2) will be suitable for the development, retention, or expansion of manufacturing and industrial facilities, as well as regional or national corporate headquarters facilities. 1 9