06-01-15 Meeting of the La Porte Development Corporation Board of Directors

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$100,000 (1)The LPDC will pay “Gantstein Esquire, LLC” an amount not to exceed upon receipt of a Certificate of Occupancy for a Pipeline Grill at 10003 Spencer Hwy and proof of expenditure of at least $1.2 million in infrastructure and site related improvements, (2)The cash incentive payment made to Gantstein Esquire LLC will be in an amount equal to that specified in one of the three performance metrics indicated below, based on Recipient’s generation of taxable sales in the “Food Service” category in relation to the overall generation of taxable sales in the “Food Service” industry by market participants in the City of La Porte. In other words, the amount of the incentive for calendar years 2017 through 2020, is measured by the net amount of sales tax generated by Pipeline Grill in relation to restaurants as a whole. a.Upon proof of employment of at least 35 full time employees and 50 part time up to employees, the LPDC will pay “Gantstein Esquire, LLC” an amount $100,000 that is equal to2% of the estimated total taxable retail sales independently generated by the Pipeline Grill in calendar year 2017. b.Upon proof of employment of at least 35 full time employees and 50 part time up to employees, the LPDC will pay “Gantstein Esquire, LLC” an amount $100,000 that is equal to2% of the estimated total taxable retail sales independently generated by the Pipeline Grill in calendar year 2018. c.Upon proof of employment of at least 35 full time employees and 50 part time employees, the LPDC will pay “Gantstein Esquire, LLC” an amount up to whichever is less: d.$100,000, (b) 2% of the estimated total taxable retail sales independently generated by the Pipeline Grill in calendar year 2019, or (c) $200,000 minus the sum of payments #2 and 3. (3)The sum total of the payments #2-4 above will not exceed $200,000. (4)The sum total of all payments for this project will not exceed $300,000. (5)The term of the development agreement will end upon the earliest of (a) a total payment of $200,000 for payments #2-4, or (b) 31 March 2020. Staff is recommending approval of a development agreement with Gantstein Esquire, LLC for the construction of a Pipeline Grill in La Porte. Action Required by the La Porte Development Corporation: Consider approval or other action of a development agreement with “Gantstein Esquire, LLC” for $300,000 an amount not to exceed and authorize Board President Richard Warren to sign and execute such agreement. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date