05-24-21 Regular Meeting of the La Porte Development Corporation Board

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Due to several delays in starting and performing the work, the applicant had not been able to satisfy the requirements of the 1 st benchmark. At the April 26, 2021 LPDC Board meeting, the Board approved an amended and restated development agreement by extending the first benchmark to May 15, 2021. Staff has been in close contact with the applicant. While, the applicant has been working very diligently, at the time of this report it is unlikely that substantial completion will be reach when previously predicted. Generally, "substantially complete" is commonly used and understood term in the construction industry, which means the point where the owner can occupy and/or use the project site for its intended purpose. Staff is requesting a 60 day extension to both benchmark. Staff believes that the applicant is very close and may reach substantial completion by the time of the meeting of Development Corporation. However, 60 days would be ample time to satisfy development agreement requirements. Staff is recommending the Board approve the attached amended and restated development agreement for the 100 W. Main Street project to include extending both benchmark dates by 60 days as follows: • Total cash incentive of $85,000 with following payment schedule: two payments of $40,000 and $45,000 o First payment of $40,000, within 30 days of substantial completion of construction/ renovations. This payment is estimated to occur around July 15, 2021. o Second payment of $45,000 when building is occupied with four (4) full- time jobs (confirmed by documentation from each business stating such). The applicant will be responsible for maintaining jobs 5 years after 2nd payment. This payment is estimated to occur around August 31, 2021. ACTION REQUIRED BY BOARD Approve or deny an amended and restated economic development incentive agreement between the La Porte Development Corporation, and Marion Campise and Vicki Campise, for the use of Type B Development Corporation Sales Tax Funds for refurbishment/renovation of the old bank building located at 100 W. Main Street in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda. Corby D. Alexander, City Manager Date