08-04-08 Special Called Regular Meeting of the La Porte Development Corporation Board of Directors

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REQUEST FOR LPEDC BOARD AGENDA ITEM Agenda Date Requested: 9/2/2008 Bud2et Requested By: Gretchen I.ar!lon Source of Funds: ED Budget Department: City MilliKer/EDC Account Number: 015-9892-97611.00 Report: Resolution: Ordinance: Amount Budgeted: $2,700,000 Exhibits: Memorandum of Understanding SUMMARY & RECOMMENDATION As you know, at the request of the Board, the City Manager has been negotiating with Developer, Garson Silvers, on the Town Plaza Project area at Five Points. Part of the negotiations includes the purchase of property and specifically the "Triangle Property" at the intersections of East and West Main, San Jacinto and Broadway which is key to the development of the plaza. The asking price of the property is $150,000 and the appraisal commissioned by the Board indicated an appraised value of $52,500. A Phase I and II environmental study was completed and paid for by the Developer and is on file at city hall. The report indicates that the tanks appear to be filled with water and that approximately 10,000 gallons would need to be pumped out and properly disposed of before the tank removal. While there is still work to be completed on a final Development Agreement, the Developer has agreed conditionally to allow the Board to purchase the "Triangle Property". His condition is that the attached Memorandum of Understanding on the basic points of the overall final Development Agreement must be agreed to by the Board at the meeting of the 1 oth. The City Manager would like to discuss the proposed MOU with the Board in Executive Session and then ask the Board to consider acting upon the MOU in open session thereafter if the basic terms are acceptable to the Board. The MOU includes a purchase price of $150,000 plus the LPDC accepting all costs for removal and liability associated with the underground storage tanks located on the property. The funds for the Project, including this proposed property purchase, have been included and approved in the FY 2009 Budget. If the Board approves the attached Memorandum of Understanding then staff will proceed to the next steps which include street closure procedures and other matters necessary to finalize the purchase. Action Required by the Board: Approve the attached Memorandum of Understanding between the LPDC and East A Developments, LP and La Porte 5 Points Properties, L.P. for the basic terms to be included in a final Development Agreement for the Town Plaza Project. Authorize the City Manager to complete the property purchase for the vacant .3297 acre tract at San Jacinto and South Broadway Streets in the City of La Porte, more commonly known as the "Triangle Property" in order to proceed with the development of the Town Plaza.