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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM
<br />July 25, 2016July 25, 2016AppropriationAppropriation
<br />Agenda Date Requested:Agenda Date Requested:
<br />N/AN/A
<br />Traci LeachTraci LeachSource of Funds:Source of Funds:
<br />Requested By:Requested By:
<br />Account Number:Account Number:
<br />AdministrationAdministration
<br />Department:Department:
<br />Amount Budgeted:Amount Budgeted:
<br />Report:Resolution:Resolution:Ordinance:Ordinance:
<br />Amount Requested:Amount Requested:
<br />Other:
<br />Budgeted Item:Budgeted Item:YESYESNONO
<br />AttachmentsAttachments : :
<br />1. Notice of published Public Hearing Notice Notice of published Public Hearing Notice
<br />2. Development Agreement Development Agreement
<br />3. Project Scorecard Project Scorecard
<br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
<br />Founded in 1983 by Salvatore Longo, Northern Safety and Industrial (Northern Safety), headquartered in Founded in 1983 by Salvatore Longo, Northern Safety and Industrial (Northern Safety),
<br /> headquartered in
<br />Frankfort, NY, is a national distributor of top quality safety and industrial supplies. Northern Safety Frankfort, NY, is a national distributor of top quality safety and industrial
<br /> supplies. Northern Safety
<br />distributes a wide variety of branddistributes a wide variety of brand--name products, including 3M, Honeywell, DeWalt, Moldex, MSA, name products, including 3M, Honeywell, DeWalt, Moldex,
<br /> MSA,
<br />Ansell Healthcare, Von Drehle Paper, Manulatex, DexterAnsell Healthcare, Von Drehle Paper, Manulatex, Dexter--Russell Cutlery and countless others. The Russell Cutlery and countless
<br /> others. The
<br />company also developed its own line of safety and industrial products under the NS Brand name, which company also developed its own line of safety and industrial products under the NS
<br /> Brand name, which
<br />include its flagship brand, Ninclude its flagship brand, N--Specs Safety Eyewear, Gloves, ActivGARD Protective Apparel, NS Specs Safety Eyewear, Gloves, ActivGARD Protective Apparel,
<br /> NS
<br />Respiratory Protection, Head & Face Protection, ActivFlex Ergonomics, Fall Protection and several Respiratory Protection, Head & Face Protection, ActivFlex Ergonomics, Fall Protection
<br /> and several
<br />others. Northern Safety distributes its products through multiple catalog mailings and its inside and others. Northern Safety distributes its products through multiple catalog mailings
<br /> and its inside and
<br />outside sales force, as well as its fully interactive website. Northern Safety proposes to consolidate an outside sales force, as well as its fully interactive website. Northern Safety
<br /> proposes to consolidate an
<br />existing facility in La Porte, TX, which has 18 employees, with an existing facility in Pasadena, TX that existing facility in La Porte, TX, which has 18 employees, with an existing
<br /> facility in Pasadena, TX that
<br />has 36 employees. has 36 employees. has 36 employees. has 36 employees.
<br />On April 25, 2016, the La Porte Development Corporation Board authorized staff to publish a public On April 25, 2016, the La Porte Development Corporation Board authorized staff to publish
<br /> a public
<br />hearing notice for an economic development incentive in an amount not to exceed $300,000 for hearing notice for an economic development incentive in an amount not to exceed $300,000
<br /> for
<br />Northern Safety Company, Inc. Since that time, staff has been communicating with Northern SafetyNorthern Safety Company, Inc. Since that time, staff has been communicating with Northern
<br /> Safetys
<br />representatives to finalize the scope of the project and draft a development agreement. representatives to finalize the scope of the project and draft a development agreement.
<br />Initial estimates indicated that this project would generate sales tax revenues and taxable business Initial estimates indicated that this project would generate sales tax revenues and
<br /> taxable business
<br />personal/inventory property in amounts that would yield a 2.2 year payback on a $300,000 LPDC personal/inventory property in amounts that would yield a 2.2 year payback on a $300,000
<br /> LPDC
<br />incentive. As discussions progressed, estimates regarding revenue were revised by the company. incentive. As discussions progressed, estimates regarding revenue were revised by the
<br /> company.
<br />Based on the revised project estimates, staff is recommending, and the Company has agreed to, a Based on the revised project estimates, staff is recommending, and the Company has agreed
<br /> to, a
<br />modified LPDC incentive of $230,000. The project includes an economic development incentive in an modified LPDC incentive of $230,000. The project includes an economic development
<br /> incentive in an
<br />amount not to exceed $230,000 within a fiveamount not to exceed $230,000 within a five--year period and allocated according to the following terms:year period and allocated according
<br /> to the following terms:
<br />Payments of $50,000 (Payment #1 of 5), $50,000 (#2 of 5), $40,000 (#3 of 5), $40,000 (#4 of 5), Payments of $50,000 (Payment #1 of 5), $50,000 (#2 of 5), $40,000 (#3 of 5), $40,000 (#4
<br /> of 5),
<br />and $50,000 (#5 of 5); andand $50,000 (#5 of 5); and
<br />120 full employment, rather than 140, phased in over time; and120 full employment, rather than 140, phased in over time; and
<br />Added business personal property and inventory taxable value of $1.25 million, as opposed to Added business personal property and inventory taxable value of $1.25 million, as opposed
<br /> to
<br />$2.5 million; and$2.5 million; and
<br />
<br />
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