05-24-21 Regular Meeting of the La Porte City Council

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REQUEST FOR LA PORTE CITY COUNCIL AGENDA ITEM Appropriation Agenda Date Requested: May 24,, 2021 Special Programs Requested By: Corby D. Alexander Source of Funds: Department: Administration/CMO 038-6030-565-9997 Account Number: $135,000 Amount Budgeted: Report Resolution Ordinance N/A Amount Requested: Exhibits: New Amended Development Agreement, Budgeted Item: Yes No Redline Amended Development Agreement,& Incentive Application SUMMARY & RECOMMENDATION The La Porte City Council (Council) has approved an original and amended & restated development agreement related to the project at 100 W. Main Street. The applicant Marion (Marty) and Vicki Campise have purchased the Main Street bank building located at 100 W. Main Street.. The initial investment of the applicant was increased from $500,000 to $700,000, with the total investment of $850,000, including land and building at $150,000 and the total renovations. However, the development agreement states the applicant must invest a minimum of $650,000 exclusive of the cost to purchase the land and building. On February 24th, the La Porte Development Corporation Board discussed the project and approved to move forward with an incentive package for this project in an amount not to exceed of $85,000. The development original agreement provided the below benchmarks: 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 January 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 June 2021.