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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested: June 24, 2019 <br /> <br />Source of Funds: Special Programs <br />Requested By: <br />R. Cramer, Econ. Dev. Coordinator <br /> <br />Department: <br />CMO <br />Account Number: 038-6030-565-9997 <br /> <br />Amount Budgeted: <br />Report Resolution Ordinance <br /> <br /> <br /> <br />Amount Requested: $700,000 <br />Exhibits: Development Agreement, Payback Period, EDC Debt <br />Budgeted Item: Yes No <br /> <br />Capacity, Incentive Application <br /> <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />Project G, a styrene monomer plant project from INEOS, at 1230 Independence Parkway, was first brought to <br />the Board in executive session on February 25, 2019, where the Board declared it a project. <br /> <br />On March 25, 2019, the Board approved an incentive amount not to exceed $700,000, opening the 60-day <br />public comment window, and the basic outline of a development agreement. Once the development agreement <br />was typed up, the Board submitted recommendations including: removing payments before work has started, <br />making the three separate payments equal or closer to equal in size, increasing the required investment, and <br />putting a hard number on the term substantial completion. Staff took those comments back to the applicant <br />and arrived at the following outline: <br /> <br />1) Total cash grant of $700,000 with following payment schedule: three payments of $250k, $250k, and <br />$200k, <br />a) first payment 30 days after receiving permits, start of construction beyond land clearing, and <br />execution of IDA (confirmed by le EPC contractor stating such) <br />b) second payment at substantial completion of construction (80% - confirmed by letter from company <br />project engineer stating such) <br />c) third payment when company reaches 85 full-time jobs (confirmed by documentation from company <br />stating such). <br /> <br />2) Grant based on the following: <br />a) company building a new styrene monomer plant in La Porte with a total gross capital investment of <br />$750 million <br />b) company adding additional $330 million in appraised value at the La Porte site and maintained for a <br />period of 2 years after final/3rd payment <br />c) company creating 85 additional full-time jobs with an average wage of $100,000; maintaining for 2 <br />years after final/3rd payment <br /> <br />