|
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
<br />ITEMITEM
<br />January 9, 2017January 9, 2017AppropriationAppropriation
<br />Agenda Date Requested:Agenda Date Requested:
<br />
<br />Traci LeachTraci LeachSource of Funds:Source of Funds:
<br />Requested By:Requested By:
<br />
<br />AdministrationAdministrationAccount Number:Account Number:
<br />Department:
<br />
<br />Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
<br />
<br />Amount Requested:Amount Requested:
<br />Exhibits:
<br />Budgeted Item:Budgeted Item:YESYESNONO
<br />1.Development Agreement ProjectsDevelopment Agreement Projects
<br />2.Letter to RepresentativesLetter to Representatives
<br />3.Proposed Amended LanguageProposed Amended Language
<br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
<br />The La Porte Development Corporation was approved by the voters in April 1999. This vote allowed the The La Porte Development Corporation was approved by the voters in April 1999.
<br /> This vote allowed the
<br />Corporation to collect a oneCorporation to collect a one--half cent sales tax to promote new or expanded business enterprises, including roads half cent sales tax to promote new or expanded
<br /> business enterprises, including roads
<br />and related infrastructure. Funds can also be used for public parks, museums, and facilities. Since its inception, and related infrastructure. Funds can also be used for public parks,
<br /> museums, and facilities. Since its inception,
<br />the La Porte Development Corporation has completed a variety of projects, ranging from quality of life the La Porte Development Corporation has completed a variety of projects, ranging
<br /> from quality of life
<br />improvements like construction of regional baseball complex to infrastructure projects like additional downtown improvements like construction of regional baseball complex to infrastructure
<br /> projects like additional downtown
<br />parking lots and Canada Road street construction to development incentives that facilitated both new business parking lots and Canada Road street construction to development incentives
<br /> that facilitated both new business
<br />recruitment and business expansion/retention. The Corporation has entered into development agreements with recruitment and business expansion/retention. The Corporation has entered
<br /> into development agreements with
<br />businesses for a total of almost $2.2 million in incentives, which facilitated over $273 million in capital investment, businesses for a total of almost $2.2 million in incentives, which
<br /> facilitated over $273 million in capital investment,
<br />465 additional jobs, and an increase in taxable sales of at least $6.5 million over the life of the agreements. 465 additional jobs, and an increase in taxable sales of at least $6.5
<br /> million over the life of the agreements.
<br />Additionally, there are several planned projects funded in the FY17 budget (Pecan Park parking spaces, Five Additionally, there are several planned projects funded in the FY17 budget
<br /> (Pecan Park parking spaces, Five
<br />Points restroom/Pavilion, Beautification efforts along Wharton Weems/Spencer) that would potentially be in Points restroom/Pavilion, Beautification efforts along Wharton Weems/Spencer)
<br /> that would potentially be in
<br />jeopardy without changing the law. jeopardy without changing the law.
<br />Currently, as the law is written, a 4B Corporation must issue debt in order to continue to collect Sales and Use Currently, as the law is written, a 4B Corporation must issue debt in
<br /> order to continue to collect Sales and Use
<br />taxes. In La Portetaxes. In La Portes situation, there is enough fund balance to continue to offer incentive for properly defined s situation, there is enough fund balance to continue
<br /> to offer incentive for properly defined
<br />Projects without the need to issue debt. Without taking action, it is possible that the La Porte Development Projects without the need to issue debt. Without taking action, it is possible
<br /> that the La Porte Development
<br />Corporation would be precluded from collection of sales tax for economic development purposes if the Corporation Corporation would be precluded from collection of sales tax for economic
<br /> development purposes if the Corporation
<br />does not have existing debt, which it currently does not.does not have existing debt, which it currently does not.
<br />The proposed amended language to Section 505.258(1), Local Government Code would clarify the law by The proposed amended language to Section 505.258(1), Local Government Code would clarify
<br /> the law by
<br />accounting for Corporations that do not require issuance of debt to fund eligible projects. It is a minor change with accounting for Corporations that do not require issuance of debt
<br /> to fund eligible projects. It is a minor change with
<br />major implications.major implications.
<br />Staff recommends that the La Porte Development Board authorize President Richard Warren to coStaff recommends that the La Porte Development Board authorize President Richard Warren to
<br /> co--sign the letter sign the letter
<br />that will be sent to La Porte elected representatives, urging them to present this amended language in the that will be sent to La Porte elected representatives, urging them to present
<br /> this amended language in the
<br />upcoming 2017 Legislative Session. This item is on the January 9, 2017 agenda for Council consideration to have upcoming 2017 Legislative Session. This item is on the January 9, 2017
<br /> agenda for Council consideration to have
<br />the Mayor co--sign the letter, as well.sign the letter, as well.
<br />Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
<br />Consider approval or other action authorizing Richard Warren to sign a letter advocating changing the language of Consider approval or other action authorizing Richard Warren to sign
<br /> a letter advocating changing the language of
<br />Section 505.258(1), Local Government Code to allow the La Porte Development Corporation to continue to collect Section 505.258(1), Local Government Code to allow the La Porte Development
<br /> Corporation to continue to collect
<br />sales tax as long as bonds, projects, or other obligations of the Corporation exist.sales tax as long as bonds, projects, or other obligations of the Corporation exist.
<br />
<br />
|