11-29-00 Meeting of the Tax Increment Reinvestment Zone Number One Minutes

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. e AGENDA ITEM 6 FOR REDEVELOPMENT AUTHORITY AGENDA ITEM 5 FOR TIRZ DISCUSS AND TAKE APPROPRIATE ACTION WITH REGARD TO A TRI- PARTY AGREEMENT BETWEEN THE CITY OF LA PORTE, TEXAS; REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS; AND THE LA PORTE REDEVELOPMENT AUTHORITY A key element of our Tax Increment Reinvestment Zone (TIRZ) is the Tri-Party Agreement between the City, the TIRZ Board, and the Redevelopment Authority. This document describes the relationship of the three parties and outlines the type of services to be provided by the Authority and the obligations and duties of the Authority. As with other TIRZ and Authority documents, we have attempted to provide a document that is flexible enough to deal with the issues that might surface over the next 25:t years. As drafted, there are several checks and balances which are incorporated. 1. The Authority can only issue bonds with City Council's approval (Section III, A). 2. The terms and conditions of the Authority's assIgmng or pledging the proceeds received by the Authority must be approved by the City Manager (Section III, last paragraph). 3. The Authority agrees to operate under the City's financial, accounting and procurement policies. Deviation from these policies will require City Council approval (Section VII Operating Policies). 4. Except where City Council approval is required, the Authority shall not enter into any agreements, contracts, or obligations without the City_ Manager's approval (Section VII Operating Policies). Several areas of the agreement refer to the Authority providing certain administrative services, reports, accounting services, audits, depository agreements, investments, etc. It is anticipated that the Authority will contract with the City to provide these services (with some exceptions, i.e. audit). This is similar to the way the City and the La Porte Area Water Authority operate. The Redevelopment Authority would pay the City for these services from the TIRZ funds, as it is an eligible expense. At the July 9 meeting, City Council approved entering into a Tri-Party Agreement between the City, the TIRZ Board, and the Redevelopment.