09-23-13 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested:23September2013 Source of Funds: Requested By:Traci E. Leach Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution:Ordinance: Amount Requested: Exhibits:Amendment to Agreement Exhibit:Original Agreement Budgeted Item:YESNO SUMMARY & RECOMMENDATION On June 10, 2013, the La Porte Development Corporation approved an incentive agreement with Intergulf Corporation for the relocation of a corporate headquarters in La Porte. As part of this relocation, Intergulf requested an incentive to assist in the construction of drainage improvements to the DStreet right-of-way to expand the buildable area of the lot. The incentive agreement, as approved by the Board, is attached an exhibit. Since that time, Intergulf has been working on the drainage work is prepared to present a request for the Board to consider making the first payment pursuant to the agreement terms. During the process of verifying documentation for this payment request, it was discovered that there was an error in Article 1 (2)(a) and (2)(b). This section outlines the benchmarks that Intergulf must achieve prior to receiving any incentive funds. Article 1 (2)(a) was intended to specify that Intergulf complete the drainage structure and all associated work prior to requesting the first payment. However, the benchmark that was included in the approved agreement included Item No. 5 (refer to Exhibit B in the original agreement), which is not work related to the drainage, but rather to the parking structure/surface construction. The amendment attached removes Item No. 5 from the benchmarks for the first payment and places it in the benchmarks for the parking structure/surface required for the second payment. Staff recommends approving the amendment to correct Article 1 (2)(a) and (2)(b). Action Required by the La Porte Development Corporation: Consider approval or other action of Amendment No. 1 to an Incentive Agreement dated June 10, 2013 between the La Porte Development and Intergulf Corporation. Approved for the La Porte Development CorporationAgenda