08-24-16 Meeting of the La Porte Redevelopment Authority/TIRZ

Browse Search

La Porte Redevelopment Authority ,august 24, 2016 City of LaPorte, Texas SU$j�GDRApT Page 3 7 7-0 Cy��GE D. We removed detention land which was reimbursable to the owner, which resulted in a decrease of $74,880.00. E. An adjustment to actual amount paid was made for landscaping amenities invoices, which resulted in a decrease of $1,305.74 The attached Schedule B, titled "Schedule of Construction, Engineering and Related Costs Reimbursable to Senior Associates, Inc. (Owner)", sets forth their reimbursable costs. This reimbursement is in accordance with the terms and conditions of the Reimbursement Agreement by and among the Reinvestment Zone Number One, City of LaPorte, Texas, La Porte Redevelopment Authority and Senior Associates, Inc. dated October 28, 2014. Senior Associates, Inc. originally submitted schedules and invoices totaling $201,285.29, which did not include interest or land. Subsequently, land documents showing current value were submitted, making the total due $455,823.47. We have revised the reimbursable amount to $466,031.93 including interest calculated through July 31, 2016 in the amount of $10,208.46. The following changes were made to the original schedule: A. We calculated interest through July 31, 2016 at the prime commercial lending rate of J. P. Morgan Chase Bank in accordance with the Development Agreement. That resulted in an increase of $10,208.46. According to the Development Agreement, the Developer is to be paid interest on the reimbursable amount at the prime commercial lending rate of J. P. Morgan Chase Bank per annum. Interest was calculated on the per annum basis of a year being 365 days. The following details the interest rates used for the periods included: Prime Dates Rate October 24, 2013 to December 16, 2015 3.25% December 17, 2015 to July 31, 2016 3.50% Schedule C compares the actual reimbursable costs due the Developer and Owner with Exhibit B of the Development Agreement. We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion on the aforementioned reimbursable costs. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.