10-24-16 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: October 24 2016 Source of Funds: CIP #015-9892-993 Requested By: Traci Leach Account Number: Department: Administration/Economic Development Amount Budgeted: $222,105.48 Report: Resolution: Ordinance: Amount Requested: $25,000.00 Exhibit: Project Application and Quotes Budgeted Item: YES NO Exhibit: Development Agreement – Signed Exhibit: Project Worksheet SUMMARY & RECOMMENDATION Staff reviewed an Enhancement Grant Application from Patrasia Hefley, new owner of property located at 832 S. Broadway in La Porte, Texas. The applicant collected bids from general contractors to complete several projects to completely rehabilitate the exterior of the building. The proposed project is as follows: a.Replacement of door, fascia boards, windows, and gutters $12,250.00 b.Build decorative wall on top of building $17,420.00 c.Re-asphalt the parking lot $11,800.00 d.Installation of new exterior lighting $ 1,500.00 e.Painting exterior walls $ 1,775.00 f.Remove old eaves and build new eave at $15,915.00 front and side door g.Repair flower terraces $ 1,375.00 h.Sales Tax $ 5,117.89 Total $67,152.89 As a result of the lowest bid for the project, the total expenditure proposed to be made by the applicant is estimated to be $67,152.89. Fifty percent of this sum is $33,576.44. However, in the interest of expediency, the applicant has requested that the reimbursable amount be lowered to $25,000. The development agreement associated with this project is slightly different from previous ones. The property is currently vacant and, as such, there are no jobs currently retained at this location. However, Ms. Hefley desires to complete repairs on the building to lease it to a future tenant, who would bring new jobs to La Porte. The proposed development agreement provides for two separate payments. The first reimbursement (80%) would occur after the proposed improvements have been completed and verified by the Board with receipts and photos.The applicant has 18 months to complete the improvements. The second reimbursement payment (20%) would occur after the applicant provides proof of a lease that is bringing jobs. The applicant has eighteen months to provide documentation of a valid lease. In the Budget block at the top of the page, $221,105.48 represents the amount of uncommitted funds in the enhancement grant account and includes commitment of $7,559.73 for The Gates. 16