08-24-20 Regular Meeting of the La Porte Development Corporation Board

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are Goodies and the La Porte-Bayshore Chamber of Commerce. The primary reason for the reduction from three (3) to two (2) commercial business was due to the Chamber needing an additional 500 sq. ft. of space, thereby only allowing capacity for these two (2) commercial businesses. Additional changes reduced the number of apartments on the second floor from three (3) to two (2) due to a resident requiring 1800 sq. ft. of space. To-date, the applicant has secured rental tenants for the apartment units. The initial investment ofthe applicant was estimated at $500,000; however, once the development team gathered the necessary documentation for the renovation, this estimate has increased to $700,000. The total investment will be $850,000, including land and building at $150,000 and the total renovations. In addition to a request for an incentive for this project, the applicant submitted a request for an enhancement grant in the amount of $50,000. On July 27, 2020, the La Porte Development Corporation Board approved the enhancementgrant in the amount of $50,000 and conducted a public hearing on the incentive project in the amount of $85,000 and approved moving forward with the incentive agreement. On August 24, the La Porte Development Corporation Board will consider the development agreement attached. Summary In order for Mr. & Mrs. Campise to make this project work they submitted for an additional application (in addition to the incentive grant) for an enhancement grant to aid in the refurbishment/renovation of the old bank building at 100 W. Main Street. The Board approved a $50,000 reimbursement of his projected $850,000 in façade, signage, roofing and parking eligible expenses. Due to this request being in excess of $25,000, the application required action by the City Council,which will occur on August development agreement concerning the additional funding through an incentive project for an amount not to exceed $85,000. Below outlines detailsof this draft development agreement: Total cash incentive of $85,000 with following payment schedule: two payments of $40,000 and $45,000 o First payment of $40,000, within 30 days of substantial completion of construction/ renovations. This payment is estimated to occur around January 2021. o Second payment of $45,000 when building is occupied with four (4) full- time jobs (confirmed by documentation from each business stating such). The applicant will be responsible for maintaining jobs 5 years after 2nd payment. This payment is estimated to occur around June 2021. Claw- maintain the four (4) jobs for five (5) years, each year potential claw-back amount decreases by $17,000. Also, this item will beconsidered for approval by the La Porte city Councilon August 24th. Staff recommends the La Porte Development Corporation Boardapprove the