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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA <br />ITEM <br />Agenda Date Requested: April 14, 2014 <br />Requested By: S. Livingston <br />Department: Economic Development/Tourism <br />Report:Ot Resolution: Ordinance:0 <br />Exhibits: <br />1. Development Agreement <br />Appropriation <br />Source of Funds: 4B Board <br />Account Number: Retained Earnings <br />Amount Budgeted: N/A <br />Amount Requested: $40,000 <br />Budgeted Item: 0 YES 0 NO <br />SUMMARY & RECOMMENDATIONS <br />Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in <br />Phase # 1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146. In order <br />to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with <br />firewalls between the adjoining lease spaces. In order to keep the construction costs within limits that will shill <br />allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting <br />an additional incentive in the amount of $40,000. <br />On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60 -day petition period and <br />schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of $40,000 for <br />Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La <br />Porte at the "La Porte Plaza" on the southwest comer of Spencer Hwy and SH 146. <br />On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incentive in <br />the amount of $40,000 to Rob Johnson Interests. <br />Staff and the City Attorney have created a development agreement with the "Rob Johnson Realty <br />Corporation" (dba/aka "Rob Johnson Interests") with the following key terms: <br />. Proof of a received Certificate of Occupancy for a minimum 20,000 sf retail building, <br />. Proof of a signed leases for 50% of the constructed space, <br />9 Minimum construction value of the 20,000 sf building of at least $2.75 million, and <br />