2014-09-22 Regular Meeting of La Porte City Council minutes

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Mayor Rigby questioned how the La Porte Development Corporation Board arrived at $426,000. Councilmember Martin responded the Return on Investment (ROI) discussed during the La Porte Development Corporation Board meeting was based on an estimate of property taxes generated from the capital investment (approximately $42,600 per year) over a 10-year period. Councilmember Zemanek commented he is not for or against the expenditure of funds for the economic incentive project; but before making a decision, he would like to view the Development Agreement to see how it is written and before it is signed by either party. Economic Development Coordinator Scott Livingston advised that staff can certainly bring a development agreement back to the October 13, 2014, meeting. Councilmember Martin commented he does not have an issue with moving forward with $426,000 since the original amount requested was $450,000. Mayor Rigby questioned Billy Coleman, Chief Executive Officer with ACT Independent Turbo Services, Inc., if the company is waiting on the City to move forward with the project. Mr. Coleman responded yes and that the company is running out of capacity and respectfully requests Council approve the expenditure of funds for the economic incentive project. Councilmember Zemanek questioned Economic Development Coordinator Scott Livingston how he arrived at $275,000 as a recommendation from staff. Mr. Livingston responded by using the La Porte Development Corporation Board Project Score Card -PRIORITIES and basing it on the amount of funds in the account, other projects and the demand for capital. Councilmember Earp questioned after the agreement is paid, what is the estimated balance in the account for funding other projects. Finance Director Michael Dolby responded $1.2 million. Councilmember Martin moved to authorize the La Porte Development Corporation to make an expenditure of $426,000 for an economic incentive project ACT Independent Turbo Services, Inc. Councilmember Moser seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Engelken, Moser, Clausen, Earp, Engelken, Martin, and Kaminski Nays: None Absent: Councilmember Leonard 8. DISCUSSION OR OTHER ACTION (a) Discussion or other action regarding dangerous buildings/structures — R. Davidson Deputy Building Official Russell Davidson presented a summary. Councilmember Moser moved to authorize a public hearing date for October 13, 2014. Councilmember Kaminski seconded. MOTION PASSED. Ayes: Mayor Rigby, Councilmembers Engelken, Moser, Clausen, Earp, Engelken, Martin, and Kaminski Nays: None Absent: Councilmember Leonard 9. REPORTS (a) Presentation — Receive 2014 Annual Report from Bob Mitchell, President of the Bay Area Houston Economic Partnership — Mayor Rigby Bob Mitchell, President of the Bay Area Houston Economic Partnership, presented the 2014 Annual Report. Page 3 of 5 September 22, 2014, Council Meeting Minutes