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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA <br />ITEM <br />Agenda Date Requested: August 18, 2014 <br />Requested By: S. Livingston <br />Department: Economic Development/Tourism <br />Report: ' Resolution:'' Ordinance: '' <br />Exhibits: <br />1. LPDC Project Score Card - PRIORITIES, 18 <br />August 2014 <br />2. La Porte Tax Abatement Policy <br />Appropriation <br />Source of Funds: N/A <br />Account Number: N/A <br />Amount Budgeted: N/A <br />Amount Requested: N/A <br />Budgeted Item: YES NO <br />SUMMARY & RECOMMENDATIONS <br />The 4B Board has the authority to award economic development incentives to encourage a wide variety of <br />projects in the interest of the City of La Porte. The purpose of the special meeting is to discuss the 4B Board's <br />priorities regarding the variety of projects for which the Board may wish to consider awarding financial <br />incentives. <br />In any discussion regarding economic development incentives for any industrial or retail project, the Board must <br />reference La Porte's current Tax Abatement Policy. The maximum abatement for industry, whether for <br />"advanced manufacturing" or "warehouse/ distribution", is an average of 10% for 5 years. These percentages <br />are too low to be the sole basis for awarding an economic development grant to industry. The maximum tax <br />abatement offered for retail development is 50% for 5 years. For the caliber of retail development that La Porte <br />wishes to attract, these percentages are too low to be the sole basis for awarding an economic development <br />grant. The tax abatement rates in La Porte's current Tax Abatement Policy communicate at least two (2) <br />things: <br />1) La Porte is not very interested in attracting industry to the incorporated city limits of La Porte, and <br />2) Generally speaking, the citizens of La Porte are as much as five (5) times as interested in attracting retail <br />development to the City of La Porte as compared to industrial development. <br />This preference for retail development over industrial developments is included in the empirical formulas that staff <br />created to value and compare various types of projects. <br />Although tonight's discussion is not intended to create a rigid framework for offering financial incentives to any <br />