08-11-14 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: 11 August 2014 Source of Funds: N/A Requested By: Scott D. Livingston Account Number: N/A Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution: Ordinance: Amount Requested: N/A Exhibit: 1 Aug. 2014 - Amendment to LPDC Incentive Agreement Budgeted Item: YES NO Exhibit: INEOS Request to Revise the Development Agreement Exhibit: INEOS Development Agreement, 23 Sept. 2013 SUMMARY Ethylene Oxide Project In order to enable further development of commercial aspects of , which is taking longer than originally planned, the principals of INEOS respectfully requested a two-year extension of Ethylene Oxide Project deadlines related to only the under the existing development/incentive agreement, which was signed 23 September 2013. On Monday, 14 July 2014, the 4B Board voted to approve and authorized staff to draft all the necessary revisions to the existing development/incentive agreement. Staff Recommendation Consider 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 development agreement that were approved by the 4B Board on Monday, 14 July 2014. History According to Article I.A.1 of the INEOS Development Agreement, approved 23 September 2013, the principals $500 million of INEOS must make a commitment to invest at least in an Ethylene Oxide Project, also known as 1 August 2014 in order to receive a payment of $700,000 from the 4B Board. sler, reports that the anticipated amount of investment for the Polyethylene Project (i.e. Unit #1) is now expected to be $400 - $500 million, which is 60-100% greater than the 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 for Unit #2 will also be greater than $500 million.