03-25-19 Regular Meeting of the La Porte Development Corporation Board

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: February 25, 2019 Requested By: Ryan Cramer, ED Coordinator Department: Administration Report: Resolution: Ordinance: Exhibit: Incentive Agreement Exhibit: Supporting Documentation Budget Source of Funds: Special Programs Account Number: 038-6030-565-9997 Amount Budgeted: $425,527 Amount Requested: $100,000 Budgeted Item: YES NO SUMMARY & RECOMMENDATION On June 1, 2015, the La Porte Development Corporation entered into an agreement with Gantstein Esquire LLC for site improvements and the operation of Pipeline Grill in which the City would provide $300,000 in total incentives over the course of three years in $100,000 increments. The first payment was dependent on $1.2 million in spending on the building's remodel and getting an Occupancy Permit. The Cooperation payments two and three required Pipeline Grill to have $4 million in total taxable sales over the course of a year and have 35 full-time, as well as 50 part-time employees at the La Porte location. Today, staff is requesting approval of the third and final payment. In validating the incentive requirements for the third and final payment, there was some debate over the term "total taxable sales". After a conversation with the previous Economic Development Coordinator, staff was given an insight into the "spirit" of the incentives intent to include all potential sales. Staff concludes that the applicant has met both of these benchmarks in 2018. Action Required by the La Porte Development Corporation: Approve or take other action as it relates to payment of $100,000 to Gantstein Esquire LLC. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager