03-24-14 Regular Meeting of La Porte City Council

Browse Search

REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM March 24, 2014March 24, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A Scott Livingston Scott Livingston Source of Funds:Source of Funds: Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO Attachments :Attachments : 1. Public Notice1. Public Notice 2. Project Materials2. Project Materials SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Rob Johnson Interest (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Rob Johnson Interest (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Phase #1 of the new, proposed retail development. Phase #1 is planned to encompass 2.86 acres, while Phase #2 Phase #1 of the new, proposed retail development. Phase #1 is planned to encompass 2.86 acres, while Phase #2 is planned to encompass 1.67 acres. Mr. Johnson plans to complete Phase #1 in 2014 and Phase #2 by either late is planned to encompass 1.67 acres. Mr. Johnson plans to complete Phase #1 in 2014 and Phase #2 by either late 2014 or early 2015. In order to accommodate a larger, national retail tenant in the retail center, RJI must construct 2014 or early 2015. In order to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with firewalls between the adjoining lease spaces. In order to keep the construction costs within a larger building with firewalls between the adjoining lease spaces. In order to keep the construction costs within limits that will still allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, limits that will still allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting an additional incentive in the amount of RJI is requesting an additional incentive in the amount of . . $40,000$40,000 On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60----day petition period and day petition period and day petition period and day petition period and schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of for $40,000$40,000 Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Porte. Per the Boards direction on 13 January 2014, staff scheduled a public hearing to discuss thiss direction on 13 January 2014, staff scheduled a public hearing to discuss this incentive grant request on 24 March 2014, which satisfied the 60incentive grant request on 24 March 2014, which satisfied the 60--day petition period. Noday petition period. No qualified petition has been received. This project will require that Rob Johnson enter into aqualified petition has been received. This project will require that Rob Johnson enter into a performance agreement with the La Porte Development Corporation, the terms of which wouldperformance agreement with the La Porte Development Corporation, the terms of which would establish minimum thresholds for key performance indicators such as receipt of a certificate of occupancy, a establish minimum thresholds for key performance indicators such as receipt of a certificate of occupancy, a minimum capital investment, and a minimum rate of lease occupancy. All parties involved will have the minimum capital investment, and a minimum rate of lease occupancy. All parties involved will have the opportunity to provide input on the performance agreement before it is completed.opportunity to provide input on the performance agreement before it is completed. The subject property of both Phases #1 and #2 is on the tax rolls for $700,000, which yields approximately $4,970 The subject property of both Phases #1 and #2 is on the tax rolls for $700,000, which yields approximately $4,970