10-01-03 La Porte Redevelopment Authority Meeting minutes

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,,- Harris County Precinct 2 officials have indicated that they have budgeted their share in its entirety, but expect to be reimbursed by the Tax Increment Reinvestment Zone #1 that they are partners in. This option is available for us as well, and is probably our best opportunity for funding this project. Another funding possibility is to borrow against the revenues generated by the Sylvan Beach Fishing Pier. Our share of revenues in the past has been fairly constant at $30,000 per year. We just increased fees at the beginning of this fiscal year and expect revenues to increase by about 25-300/0, which should bring in around $38,000 annually. We could issue revenue bonds at about 10 times this revenue flow and expect to receive a roughly $380,000 that could be placed toward our share of the project. The TGLO Project Administrator has indicated that the state "probably" will fund V2 of this project, primarily because of the severe funding cuts they have received. There is a drawback to phased construction; that is, that mobilization costs would be expected to be increased by about $60,000 if it's divided into two phases. SUMMARY The positive part of all this is, the project is still a bargain in that development of an established beach at Sylvan Beach Park will be a tremendous asset to our community, both as a recreational destination and as an economic boon to the local economy. Our share will, in any event be approximately 20Q/o of the total cost, while the benefits to the City of La Porte should be much higher. The TIRZ Board will meet to discuss these issues shortly, and we are awaiting word from the Texas General Land Office as to what they will require from the City regarding funding assurances (I.e. Resolution, Letter of Agreement, etc.). If a Resolution is required, one will be presented for Council consideration at the January 12th Coundl meeting. The TGLO is expected to make a decision on their funding level sometime in January 2004.