04-28-14 Regular Meeting of La Porte City Council

Browse Search

REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENT FOR LA PORTE DEVELOPMENT CORPORATION AGENDA SD ITEMITEM April 14, 201April 14, 201AppropriatioAppropriatio 44nn Agenda Date Requested:equested: R 4B Board 4B Board S. Livingston S. Livingston Source of Funds:Source of Funds: Requested By :: Retained Earnings Retained Earnings Economic Development/Tourism Economic Development/Tourism Account Number:Account Number: Department: /A/A NN Amount Budgeted:Amount Budgeted: ReportResolution:Resolution:Ordinance:Ordinance: : $40,000 $40,000 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESOO NN 1. Develoloppment Ament Aggreementreement SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease spterests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in ace n Phase #1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146. I new, proposed retail development on the southwest corner of Spencer Hwy and SH 146. In order en to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with e a larger, national retail tenant in the retail center, RJI must construct a larger building with t firewalls between the adjoining lease spaces. In order to keep the construction costs within limits that will seen 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, RJI is requer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting fe $40,000$40,000 an additional incentive in the amount of entive in the amount of .. c On January 13, 2014, the 4B Board authorized staff to publish public notice of a 62014, the 4B Board authorized staff to publish public notice of a 6-day petition period and -day petition period and 00 $40,00$40,0000 schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of ic hearing on March 24, 2014 to discuss the incentive grant request in the amount of for l Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City oterests to construct a new retail strip center and attract new retail development to the City of La n Porte at the La Porte Plaza”on the southwest corner of Spencer Hwy and SH 146. Porte Plaza”on the southwest corner of Spencer Hwy and SH 146. “a On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incenti014, both the 4B Board and City Council voted to approve this project and award an incentive in 2v $40,000$40,000 the amount of to Rob Johnson Interests. to Rob Johnson Interests. Staff and the City Attorney have created a development agreement with the ity Attorney have created a development agreement with the Rob Johnson Realty Rob Johnson Realty C““ Corporatio”(dba/aka ba/aka Rob Johnson Interests”) with the following key terms:Rob Johnson Interests”) with the following key terms: nd““ Certificate of OccuCertificate of Occuppancancyy Proof of a received a received for a minimum 20, for a minimum 20,000 sf retail building, 000 sf retail building, f 50%50% Proof of a signed leases for a signed leases for of the constructed space, of the constructed space, f $2.75 million$2.75 million Minimum construction value of the 20,000 sf building of at least construction value of the 20,000 sf building of at least , and , and m