08-11-14 Meeting of the La Porte Development Corporation Board of Directors

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According to Article I.A.1 of the INEOS Development Agreement, approved 23 September 2013, the principals of According to Article I.A.1 of the INEOS Development Agreement, approved 23 September 2013, the principals of INEOS must make a commitment to invest at least INEOS must make a commitment to invest at least in an Ethylene Oxide Project, also known as in an Ethylene Oxide Project, also known as $500 million$500 million Unit #2, by in order to receive a payment of $700,000 from the 4B Board. in order to receive a payment of $700,000 from the 4B Board. 1 August 20141 August 2014 INEOSs incentives consultant, Eric D. Geisler, reports that the anticipated amount of investment for the s incentives consultant, Eric D. Geisler, reports that the anticipated amount of investment for the Polyethylene Project (i.e. Unit #1) is now expected to be $400 Polyethylene Project (i.e. Unit #1) is now expected to be $400 --$$500 million, which is 60500 million, which is 60--100% greater than the 100% greater than the initially expected amount of $250 million. By the time INEOS decides to commit to the Ethylene Oxide Project initially expected amount of $250 million. By the time INEOS decides to commit to the Ethylene Oxide Project (i.e. Unit #2), assuming that the size of the project remains the same, staff anticipates that the level of investment (i.e. Unit #2), assuming that the size of the project remains the same, staff anticipates that the level of investment for Unit #2 will also be greater than $500 million. for Unit #2 will also be greater than $500 million. Considering the impact that Unit #2 will have on the City of La Porte, even at the minimum stated value of $500 Considering the impact that Unit #2 will have on the City of La Porte, even at the minimum stated value of $500 million, staff recommended that the 4B Board consider extending the terms of the development agreement, plus million, staff recommended that the 4B Board consider extending the terms of the development agreement, plus the ancillary terms pertaining to employment and growth for Unit #2, by two (2) years to 1 August 2016.the ancillary terms pertaining to employment and growth for Unit #2, by two (2) years to 1 August 2016. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action authorizing Board President Richard Warren to sign and execute an amendment Consider approval or other action authorizing Board President Richard Warren to sign and execute an amendment to the INEOS development/incentive agreement, which contains revisions to selected portions of the original to the INEOS development/incentive agreement, which contains revisions to selected portions of the original development agreement that were approved by the 4B Board on Monday, 14 July 2014.development agreement that were approved by the 4B Board on Monday, 14 July 2014. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate