06-24-19 Regular Meeting of the La Porte Development Corporation Board

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c)company creating 85 additional full-time jobs with an average wage of $100,000; maintaining for 2 years after final/3rd payment d) completion of project within 4 years of the first payment. There are also clawback provisions in Article IV of the development agreement if the project is not completed in four years or required metrics are not met. CATEGORY TOTAL NEW INVESTMENT Cost of Land : $ - Cost of Building/Structures (Real Property): $ 5,000,000 Cost of Machinery & Equipment (please describe): $ 326,000,000 Cost of Engineering: $ 83,000,000 Cost of Construction: $ 397,000,000 Other (catalyst, misc. chemicals, start-up costs): $ 29,000,000 TOTAL $ 840,000,000 Above is a snapshot from the incentives application provided by the applicant, you will see their total projected cost is $840 million, while our development agreement only asks them to spend $750 million. The reason for this is based on our incentive matrix. The metric most valued by our incentive matrix is tax money coming back to the City over 10 years, total investment is not actually considered in the incentive matrix. To get a conservative number for this, staff only used the cost of building/structures and the cost of machinery/equipment to come to a $331 million projected valuation. The yearly value to the City is reflected in this packet on the payback schedule exhibit. To make sure future valuation, the most important number to the City was cemented into the development agreement, the applicant wanted some flexibility in their required capital investment, which is how the number in the development agreement came to be $750 million. Staff received no comments from the public during the 60-day window. ACTION REQUIRED BY LPDC Hear comments from the public on Project G. Approved for the La Porte Development Corporation Board meeting agenda. Corby D. Alexander, City Manager Date