07-17-17 Meeting of the La Porte Development Corporation Board

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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: July 17, 2017 Requested By: Traci Leach Department: Administration Report: Resolution: C Ordinance: C Exhibits: 1. Request for extension 2. Development Agreement 3. Denial Letter 4. Tiemline of Action Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: 4, YES - NO SUMMARY & RECOMMENDATIONS On February 22, 2016, the Board approved a development agreement with Fischer's Hardware for a major renovation of the business located at 1010 S. Broadway. The total value of the agreement is $120,000, which is paid to Fischer's upon successful completion of specified benchmarks. The first incentive payment of $50,000 requires that Fischer's show proof of a minimum capital investment of $600,000, photos of all improvements, and copies of all required permits for the work. This benchmark also has language that provides some flexibility on the capital expenditure amount and allows Fischer's to qualify for a pro -rata share of the first incentive payment if a threshold of $550,000 is met. Anything less than $550,000 would disqualify Fischer's from this payment. Fischer's submitted an initial packet of documentation to the City on February 20, 2017, which was 8 days in advance of the contractual deadline for materials. Since that time, staff has been working with Fischer's to clarify information included in this packet of documentation. On June 8, 2017 staff emailed Fischer's to set a deadline for final submission of clarifying documentation for June 19, 2017. No additional materials were provided by the deadline and staff emailed the denial letter to Fischer's on June 20, 2017. The validated capital expenditure amount at that time was $386,264.03 and staff had not received the required photos. On June 21, Fischer's requested that an extension be considered. Should the Board Eke to consider granting an extension, an amendment to the existing agreement will be drafted based on any parameters the Board would Eke to see included. Action Required by the La Porte Development Corporation: Provide staff with direction regarding request from Fischer's Hardware for an extension and take appropriate action. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date