07-16-12 Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested:7/16/12 Source of Funds: Requested By:Stacey Osborne Account Number: Department:CMO Amount Budgeted: Report:Resolution:Ordinance: Amount Requested: Budgeted Item:YESNO ExhibitNebula Facts and Figures Commitment Letter Public Hearing SUMMARY & RECOMMENDATION This Public Hearing is to receive public input on the proposed expenditureof La Porte Development Corporation funds to pay for an incentive grant in the amount of $1M for Project Nebula. The project, which consists of two different plants, is estimated to bring a capital investment of $950,000,000 and 90 direct jobs. The company expects that they will be up and running by the end of 2015, so the City of La Porte will begin to see revenues in 2016(year 1). The estimated revenues through 2025 are as follows: Total annual IDA fees paid to the City of La Porte (years 1 –4): $1,358,845 Total annual IDA fees paid to the City of La Porte (years 5 –10): $4,259,195 At a Special Called La Porte Development Corporation Board meeting on April 16, 2012, the Board committed to a grant from the Economic Development fund not to exceed $1,000,000 and set two conditions on the grant: 1.Contingent upon both plants being located within the Battleground Industrial District; and 2.Grant distribution will be negotiated based on construction scheduled agreed upon by both the company and the City Upon receipt of public input on this project, the Board will vote on whether to approve this expenditure as a project of the La PorteDevelopment Corporation. If approved, the project cannot be undertaken until the 60 day period following the publication date of the notice of public hearing. If during this 60 day period at least 10 percent of the registered voters file a petition requesting a public election on the proposed project, the project must be put on hold and submitted to the voters for approval. If approved, the projectwill beincluded in theFY 2012-13budget to be approved by both the La Porte Development CorporationBoard and the City Council.