07-26-10 Special Called Regular Meeting and Workshop Meeting of the La Porte Development Corporation Board of Directors

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Osborne, Stacey From: Sent: To: Subject: Clark T. Askins [ctaskins@swbell.net] Friday, August 13, 20109:44 AM Osborne, Stacey Fw: Discuss Sector 23- (development behind Kroger Below is opinion you requested for 8-23-10 Type B meeting. Clark ----- Original Message ----- From: Clark T. Askins To: Knox W. Askins Cc: Joems, John Sent: Friday, July 23,2010 10:43 AM Subject: Re: Discuss Sector 23- (development behind Kroger Knox: My opinion is that the Type B board can fund water and sewer mains in existing rights-of-way. Sec. 505.151 authorizes a Type B Board to initiate projects falling under the definition of "project" in Chapter 501 of the LGC. Section 501.103 says "in this subtitle (which would encompass Chapter 505, governing Type B boards) "project" includes expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, limited to ... streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements..." (emphasis added). Several AG opinions support the use of Development Corporation funds to build streets, so long as the board of directors makes a factual determination that the infrastructure development "promotes or develops new or expanded business enterprises". Closest on pOint is Opinion LO-95-072, which concerned the development of sanitary sewer lines in an existing residential subdivision. While the AG expressed doubt that the installation of the sewer line in a residential development had a nexus with "new or expanded enterprises", it found that it couldn't exclude the possibility as matter of law. I don't believe the fact that the proposed sewer main was in an existing development was an issue;the question centered around the fact that it serviced a residential development. Appears that an infrastructure project will satisfy the defintion of project even if within existing street, so long as it can shown to have a direct impact on development of new or expanded business enterprises. Would caution that unless this proposed expenditure clearly falls under a previously approved project, the Type B Board will need to hold a public hearing, as required by LGC 505.159 and 505.160. Clark ----- Original Message ----- From: Knox W. Askins To: Clark Askins Sent: Friday, July 23,2010 9:02 AM Subject: Fwd: Discuss Sector 23- (development behind Kroger Clark, Can 4b money be used for water and sewer mains in existing street r-o-w's? 1