04-27-11 LPRDA/TIRZ - Laserfiche WebLink

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3. DETAILED NOTES ON ALL FUNDS (Continued) Long-term Obligations — Due to the City of La Porte The City of La Porte financed capital improvements on behalf of the Authority. A payment schedule has not been determined between the City and the Authority. Long-term liability activity for the year ended September 30, 2010, was as follows: Governmental activities: Due to the City of La Porte Beginning Balance Additions $ 615,026 $ $ 615,026 $ - 4. COMMITMENTS AND CONTINGENCIES Ending Reductions Balance $ 615,026 $ - $ 615,026 The Redevelopment Authority is a party to several agreements with developers who own property in the La Porte Tax Increment Reinvestment Zone #1. The Authority is obligated to repay the developers for public improvements made on the property up to the amount of incremental tax value gained A liability is not able to be determined because the amount of incremental tax value that will be gained is not estimable. The Authority has entered into agreements with the following developers: Port Crossing Land, LP; 65 La Porte, LP; and Retreat at Bay Forest, LP. Port Crossing has completed the public improvements detailed in the agreement with the Authority. The accounting firm of McCall, Gibson, Swedlund, Barfoot, PLLC, was hired by the Authority to review the developer's expenses and determine the amount of reimbursable expenditures, which totaled $12,096,488. To date, payments in the amount of $1,859,700 have been made to Port Crossing for incremental tax value gained. 65 La Porte, LP, has also completed the improvements detailed in its agreement with the Authority; however, the developer has not applied for reimbursement because there has been no incremental tax value gained. 10