01-09-17 Regular Meeting of the La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM January 9, 2017January 9, 2017AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Traci LeachTraci LeachSource of Funds:Source of Funds: Requested By:Requested By: AdministrationAdministrationAccount Number:Account Number: Department:Department: Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted: Other:Amount Requested:Amount Requested: Budgeted Item:Budgeted Item:YESYESNONO AttachmentsAttachments : : 1.Proposed Amended LanguageProposed Amended Language 2.Letter to Elected RepresentativeLetter to Elected Representative 3.Development Agreement ProjectsDevelopment Agreement Projects SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The La Porte Development Corporation was approved by the voters in April 1999. This vote allowed the The La Porte Development Corporation was approved by the voters in April 1999. This vote allowed the Corporation to collect a oneCorporation to collect a one--half cent sales tax to promote new or expanded business enterprises, half cent sales tax to promote new or expanded business enterprises, including roads and related infrastructure. Funds can also be used for public parks, museums, and including roads and related infrastructure. Funds can also be used for public parks, museums, and facilities. Since its inception, the La Porte Development Corporation has completed a variety of facilities. Since its inception, the La Porte Development Corporation has completed a variety of projects, ranging from quality of life improvements like construction of regional baseball complex to projects, ranging from quality of life improvements like construction of regional baseball complex to infrastructure projects like additional downtown parking lots and Canada Road street construction to infrastructure projects like additional downtown parking lots and Canada Road street construction to development incentives that facilitated both new business recruitment and business development incentives that facilitated both new business recruitment and business expansion/retention. The Corporation has entered into development agreements with businesses for a expansion/retention. The Corporation has entered into development agreements with businesses for a total of almost $2.2 million in incentives, which facilitated over $273 million in capital investment, 465 total of almost $2.2 million in incentives, which facilitated over $273 million in capital investment, 465 additional jobs, and an increase in taxable sales of at least $6.5 million over the life of the agreements. additional jobs, and an increase in taxable sales of at least $6.5 million over the life of the agreements. Additionally, there are several planned projects funded in the FY17 budget (Pecan Park parking spaces, Additionally, there are several planned projects funded in the FY17 budget (Pecan Park parking spaces, Additionally, there are several planned projects funded in the FY17 budget (Pecan Park parking spaces, Additionally, there are several planned projects funded in the FY17 budget (Pecan Park parking spaces, Five Points restroom/Pavilion, Beautification efforts along Wharton Weems/Spencer) that would Five Points restroom/Pavilion, Beautification efforts along Wharton Weems/Spencer) that would potentially be in jeopardy without changing the law. potentially be in jeopardy without changing the law. Currently, as the law is written, a 4B Corporation must issue debt in order to continue to collect Sales Currently, as the law is written, a 4B Corporation must issue debt in order to continue to collect Sales and Use taxes. In La Porteand Use taxes. In La Portes situation, there is enough fund balance to continue to offer incentive for s situation, there is enough fund balance to continue to offer incentive for properly defined Projects without the need to issue debt. Without taking action, it is possible that the La properly defined Projects without the need to issue debt. Without taking action, it is possible that the La Porte Development Corporation would be precluded from collection of sales tax for economic Porte Development Corporation would be precluded from collection of sales tax for economic development purposes if the Corporation does not have existing debt, which it currently does not. development purposes if the Corporation does not have existing debt, which it currently does not. The proposed amended language to Section 505.258(1), Local Government Code would clarify the law The proposed amended language to Section 505.258(1), Local Government Code would clarify the law by accounting for Corporations that do not require issuance of debt to fund eligible projects. It is a minor by accounting for Corporations that do not require issuance of debt to fund eligible projects. It is a minor change with major implications. change with major implications. The La Porte Development Board received this same presentation and authorized President Richard The La Porte Development Board received this same presentation and authorized President Richard Warren to coWarren to co--sign the letter that will be sent to La Porte elected representatives, urging them to present sign the letter that will be sent to La Porte elected representatives, urging them to present this amended language in the upcoming 2017 Legislative Session. Staff is recommending authorization this amended language in the upcoming 2017 Legislative Session. Staff is recommending authorization for the Mayor to sign the letter as well.for the Mayor to sign the letter as well.