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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
<br />ITEMITEM
<br />October 24, 2016October 24, 2016AppropriationAppropriation
<br />Agenda Date Requested:Agenda Date Requested:
<br />Fund 038Fund 038
<br />Traci LeachTraci LeachSource of Funds:Source of Funds:
<br />Requested By:Requested By:
<br />
<br />AdministrationAdministrationAccount Number:Account Number:
<br />Department:
<br />$426,000.00$426,000.00
<br />Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
<br />$185,000.00$185,000.00
<br />Amount Requested:Amount Requested:
<br />Exhibits:
<br />Budgeted Item:Budgeted Item:YESYESNONO
<br />1.Notarized StatementNotarized Statement
<br />2.Development Agreement ExcerptDevelopment Agreement Excerpt
<br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
<br />On 22 September 2014, both the ED Board and City Council approved an economic development incentive On 22 September 2014, both the ED Board and City Council approved an economic development
<br /> incentive
<br />for ACT Independent Turbo Services, Inc.ACT Independent Turbo Services, Inc.((ACT) in the amount of ACT) in the amount of $426,000$426,000.. The ED Board approved and The ED Board
<br /> approved and
<br />executed the development agreement for this project on 17 November 2014.executed the development agreement for this project on 17 November 2014.
<br />According to the terms of the development agreement, ACT may receive three separate payments of up to According to the terms of the development agreement, ACT may receive three separate
<br /> payments of up to
<br />$75,000, $185,000, and $166,000 over a three year period.$75,000, $185,000, and $166,000 over a three year period. On June 27, 2016, the ED Board approved On June 27, 2016, the ED Board
<br /> approved
<br />Payment Request No. 1 for $75,000.Payment Request No. 1 for $75,000. In order to qualify for the second payment of $185,000, ACT must: In order to qualify for the second payment of $185,000,
<br /> ACT must:
<br />Submit proof of fullSubmit proof of full--time employment for a minimum of seventytime employment for a minimum of seventy--five (75) employees that are permanently five (75) employees
<br /> that are permanently
<br />located at the La Porte site by September 30,located at the La Porte site by September 30, 2016; 2016;
<br />Staff reviewed the Staff reviewed the Texas Quarterly tax Report,Texas Quarterly tax Report,which outlines the roster of employees located at the La Porte which outlines the roster
<br /> of employees located at the La Porte
<br />location, as reported to the State of Texas.location, as reported to the State of Texas.location, as reported to the State of Texas.location, as reported to the State of Texas. This
<br /> report includes eighty (80) full This report includes eighty (80) full This report includes eighty (80) full This report includes eighty (80) full----time employees at the La Porte
<br /> time employees at the La Porte time employees at the La Porte time employees at the La Porte
<br />location. Per the requirements of the Development Agreement, ACT Turbo also provided the 941 Form as Per the requirements of the Development Agreement, ACT Turbo also provided the 941
<br /> Form as
<br />required to be filed with the IRS each quarter.required to be filed with the IRS each quarter. In the interest of protecting the company In the interest of protecting the companys
<br /> revenues from local s revenues from local
<br />competitors the 941 report was not included in the packet, but it was submitted as required.competitors the 941 report was not included in the packet, but it was submitted as required.
<br /> Staff has evaluated Staff has evaluated
<br />the required documentation, finds that the company has satisfied the requirements of the development the required documentation, finds that the company has satisfied the requirements
<br /> of the development
<br />agreement, and recommends execution of payment in the amount of agreement, and recommends execution of payment in the amount of $185,000$185,000 to to ACT Independent Turbo ACT Independent
<br /> Turbo
<br />Services, Inc.Services, Inc...
<br />Representatives of the company will be available to answer any questions that the Board may have about the Representatives of the company will be available to answer any questions that
<br /> the Board may have about the
<br />project.
<br />Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
<br />Consider approval or other action to authorize staff to execute payment in the amount of Consider approval or other action to authorize staff to execute payment in the amount of $185,000.00
<br /> $185,000.00 to to ACT ACT
<br />Independent Turbo Services, Inc.Independent Turbo Services, Inc.in accordance with terms of incentive agreement.in accordance with terms of incentive agreement.
<br />Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
<br />Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
<br />7
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