01-30-06 Special Called City Council Retreat Meeting of La Porte City Council

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• r: • IDA NEGOTIATIONS Introduction/Purpose The City's Industrial District Contracts run for a 7 year period. The current contracts expire December 31, 2007. The process for re -negotiations is time consuming and must be timed in such a matter that annexation proceedings (or the threat of) can be instituted and completed prior to December 31, 2007. In fact, the current contract language states that if the agreement is not extended on or before August 31, 2007 "the agreement of City not to annex property of Company within the District shall terminate. In that event, City shall have the right to commence immediate annexation proceedings as to all of Company's property covered by this Agreement, notwithstanding any of the terms and provisions of this Agreement." Included in this package are some statistical and historical information on the Industrial Districts and some suggestions/issues for the upcoming negotiations. The purpose of this session is to review the information provided and to provide staff with direction or requests for more information. The goal is to achieve within the next 2-3 months a consensus from City Council regarding proposed terms for the negotiations. Typical Negotiation Process ■ City Management and Mayor meet with our Industrial District Appraisers (H. Landrum and Associates) to discuss current and projected climate for industry. ■ Mayor and City Manager will meet with the top 5+/- Industrial District. taxpayers/leaders to flush out key issues/concerns. ■ Summary of these meetings reported to the full City Council/further direction received. ■ City invites all companies with IDA's and those (known) companies that meet the threshold for IDA's (valuation greater than $300,000) to a general meeting. ■ After opening comments, general discussion and Q/A, City asks the group to pick 5-7 companies to represent their interests during negotiations. ■ Mayor, City Management, and consultant meet with industry representatives to continue negotiations. ■ Representatives report to industry. ■ Mayor and City Management report to City Council. ■ Negotiations continue until general agreement or impasse is reached. ■ For companies that have not entered into an IDA by June, 2007 the City Council may consider instituting annexation proceedings. • Preferred outcome is to reach consensus with industry and secure signed IDA's before May 2007 (August 2007 is contract deadline for renewal).