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rt- Subject <br />La Porte Redevelopment Authority April 24, 2014 <br />Page 3 <br />The Developer originally submitted an advance to the City for $200,000, not including <br />interest. We have revised the reimbursable amount to $232,500, including interest of <br />$32,500 calculated through December 21, 2013, the five year limit in accordance with the <br />agreement. The following changes were made to the original schedule: <br />A. We calculated interest at the prime commercial lending rate of J. P. Morgan Chase <br />Bank, and limited interest to five years in accordance with the Development <br />Agreement through December 21, 2013. No additional interest will be due under <br />the agreement. The calculation resulted in an increase of $32,500. <br />According to the Development Agreements, the Developers are to be paid interest on the <br />reimbursable amount at the prime commercial lending rate of J. P. Morgan Chase Bank per <br />annum, limited to five years. Interest was calculated on the per annum basis of a year being <br />365 days. The following details the interest rates used for the periods included: <br />Dates <br />Prime <br />Rate <br />December 22, 2008 to January 12, 2014* 3.25% <br />*Five year limit was reached, no additional interest will accrue <br />The Authority's obligation to reimburse the Developers is limited to any Pledged Available <br />Tax Increment under the Development Agreement. <br />We were not engaged to and did not conduct an audit, the objective of which would be the <br />expression of an opinion on the aforementioned reimbursable costs. Accordingly, we do not <br />express such an opinion. Had we performed additional procedures, other matters night have <br />come to our attention that would have been reported to you. <br />This report is intended solely for the information and use of the Board of Directors and is not <br />intended to be and should not be used by anyone other than this specified party. However, <br />this report is a matter of public record and its distribution is not limited. This report should <br />not be associated with the presentation of any financial data of the District except to comply <br />with filing requirements as specified by the parties to the agreement. <br />McCall Gibson Swedlund Barfoot PLLC <br />Certified Public Accountants <br />2014 Report AUP <br />