05-05-04 La Porte Redevelopment Authority Meeting

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e e City of La Porte Interoffice Memorandum To: TIRZ I La Porte Redevelopment Board David Hawes, Board Consultant From: John Joems, Assistant City Ma a cc: Debra B. Feazelle, Ex-Officio Cynthia Alexander, Ex-Officio Knox Askins, Ex-Officio Date: July 29, 2004 Subject: Golf Course Community I Infrastructure Reimbursements August 4, 2004 Agenda Item 4 Backeround In December 2003 you were provided a report on the request for reimbursement for Arete Real Estate Development. That report was intended to be a base line for further negotiations. Early conversations with Mr. Fogarty discussed the typical reimbursement he could receive if he were in a MUD. Enclosed is a spreadsheet depicting six different scenarios, which compare potential TIRZ reimbursements to typical MUD reimbursements. Also provided is the latest summary of development costs and a schedule of revenues anticipated with this development. At this point Mr. Fogarty has re-applied for his SCUP. This application does not include any joint venture/land swap with Mr. Hettig. The Planning and Zoning Commission has recommended approval and City Council will consider the SCUP in August. Random Thou2hts During the time Mr. Fogarty spent attempting the land swap he obviously incurred financing costs. Arete will be funding/financing significant off-site costs and oversizing costs early on. The land accumulation costs were higher than typical for this area. A large expenditure for the trunk main will be financed by Arete before any lotlhome sales generate revenue for certain sections of the subdivision. Knowledge of this development has spurred interest in re-development of property along South Broadway including some Bayfront property.