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

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La Porte City of La Porte,lTexasnt Authority S[�$jpC"RoF7- August 24pa2g01 � C/�',4NGE C. We verified the mathematical accuracy of the engineering invoices on a test basis. We tested the completeness of the engineering invoices based upon the total engineering invoices billed. D. We reviewed the computation of certain costs to gain assurances that the amounts required to be paid 100% by the Developer, in accordance with the Development Agreement, are deleted from the amounts to be reimbursed. E. For construction contracts, we footed the final pay estimates and calculated extensions for items paid on behalf of the Authority on a test basis. F. We obtained verbal confirmation from Paskey, Inc. and Landscape Art, Inc. that the construction contracts have been paid in full and that there are no additional claims against the La Porte Zone or Developer. We were unable to contact Angel Brothers Enterprises, Ltd. and Lou's Construction Company, Inc. to verify the status of their contracts. G. We prepared a reimbursement report for the benefit of the Authority, including the accountant's report and schedule of amounts reimbursable to the Developer and Owner, and have compared the amounts in the Development Agreement with the actual reimbursable costs to complete the projects. H. We were available to attend a meeting to present the report, and to answer questions relating to the report. The attached Schedule A, titled "Schedule of Construction, Engineering and Related Costs Reimbursable to Beazer Homes Texas LP (Developer)", sets forth their reimbursable costs. This reimbursement is in accordance with the terms and conditions of the Development Agreement by and among the Reinvestment Zone Number One, City of La Porte, Texas, La Porte Redevelopment Authority and Beazer Homes Texas LP dated February 10, 2014. Beazer Homes Texas LP originally submitted schedules and invoices totaling $1,902,08696, which did not include interest. We have revised the reimbursable amount to $1,449,516.87 including interest calculated through duly 31, 2016 in the amount of $55,466.42. 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 $55,466.42. B. We deducted 30% Developer Share for items other than detention, which resulted in a decrease of $155,685.48. C. The owner share related to detention and land was deducted, which resulted in a decrease of $276,165.29.