04-14-14 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM April 14, 2014April 14, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: 4B Board 4B Board S. Livingston S. Livingston Source of Funds:Source of Funds: Requested By:Requested By: Retained Earnings Retained Earnings Economic Development/Tourism Economic Development/Tourism Account Number:Account Number: Department: N/A N/A Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: $40,000 $40,000 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Development Agreement1. Development Agreement SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Phase #1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146. In order Phase #1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146. In order to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with firewalls between the adjoining lease spaces. In order to keep the construction costs within limits that will still firewalls between the adjoining lease spaces. In order to keep the construction costs within limits that will still allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting an additional incentive in the amount of an additional incentive in the amount of .. $40,000$40,000 On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60--day petition period and day petition period and schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of for $40,000$40,000 Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Porte at the La Porte PlazaLa Porte Plazaon the southwest corner of Spencer Hwy and SH 146. on the southwest corner of Spencer Hwy and SH 146. On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incentive in On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incentive in the amount of to Rob Johnson Interests. to Rob Johnson Interests. $40,000$40,000 Staff and the City Attorney have created a development agreement with the Staff and the City Attorney have created a development agreement with the Rob Johnson Realty Rob Johnson Realty Corporation(dba/aka dba/aka Rob Johnson InterestsRob Johnson Interests) ) with the following key terms:with the following key terms: Proof of a received Proof of a received for a minimum 20,000 sf retail building, for a minimum 20,000 sf retail building, Certificate of OccupancyCertificate of Occupancy Proof of a signed leases for Proof of a signed leases for of the constructed space, of the constructed space, 50%50% Minimum construction value of the 20,000 sf building of at least Minimum construction value of the 20,000 sf building of at least , and , and $2.75 million$2.75 million