10-22-12 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested:10/22/12 Source of Funds: Requested By:Stacey Osborne Account Number: Department:CMO Amount Budgeted: Report:Resolution:Ordinance: Amount Requested: Exhibits:A.InterGulf Letterand Background Budgeted Item:YES NO B.Project cost estimate C.Site Map D.Photographs SUMMARY & RECOMMENDATION InterGulf Corporation is a local company seeking a location for the offices of the World Headquartersfor their growing business. InterGulf isplanning to consolidate the regional administrative offices to a new headquarterson a piece of property on the west side of SH 146 between C and D streets in La Porte. The company plans to invest $2.1M in capital investment, and create at least 40 new primary jobs in the coming year. InterGulf Corporation and the current owners of the property approached staff regarding the need for increased property areafor expansion and parking. InterGulf Corporation would like the La Porte Development Corporation to consider a project to pay for the cost of improving the drainage right of way, currently owned by the City of La Porte, on the south side of the property (D Street). The improvements would include the addition of box culverts, backfill, and paving it with asphalt so the site can accommodate the company’s plans for future growth. The company would also like to purchase the portion of the D Street right of way containing the improvements for the existing drainage channel from the City so they can use the surfacefor their expansion plans. However, the underground system would continue to serve the City’s drainage purposes, and would be a drainage corridor thatthe City would maintain and operate under the surface of the land. The city would reserve an easementas part of the closure of the right-of-way, for this purpose. In addition to improving the site for future development, this project would have the added benefit of saving the City costly maintenance costsover time. The right of wayis currently in disrepair, and this project would improve both the appearance and the efficiency of the drainage system. This project is a permissible EDC project under Chapter 501 of the Texas Local Government Code. As such, staff recommends that the EDC fund the project in an amount not to exceed