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Councilmember Zemanek asked if Council is being asked to approve up to $300,000 for an <br /> economic development incentive without an agreement. Mr. Livingston advised the La Porte <br /> Development Corporation Board members are aware of the terms of the agreement, the funds have <br /> been obligated, and an agreement will go back to the Board members. Councilmember Zemanek <br /> questioned what will be the percentage of alcohol sales. Kris Gant with Gantstein Esquire, LLC., <br /> responded between 15 to 19 percent. <br /> Councilmember Earp asked if there are funds available to give to five other local restaurants if <br /> requested. Mr. Livingston responded it is unlikely to give up to $300,000 to each restaurant. <br /> Councilmember Earp commented he is not in favor of giving the City's tax money to individuals to <br /> compete with the people that are actually paying the taxes. <br /> Mayor Rigby commented it is not property tax money that is used from the General Fund; it is 4B <br /> sales and use tax at a rate of one-half of one percent that is spent in the City of La Porte and <br /> comes out of a totally different fund. Councilmember Earp advised he does understand the funds <br /> and funding. <br /> Councilmember Moser asked if the 4B Sales and Use Tax was voted on by the voters in the City of <br /> La Porte and if the funds are mandated by state regulations on the use and collection of funds. Mr. <br /> Livingston responded yes. <br /> Councilmember Martin commented the La Porte Development Corporation Board did a good job <br /> vetting the project. Pipeline Grill is not a bar; it's a restaurant that closes at a reasonable hour; and <br /> the neighbors appreciate the property being maintained. In addition, Councilmember Martin advised <br /> the La Porte Development Corporation Board is working to establish guidelines for economic <br /> development projects for new and existing businesses. <br /> Councilmember Zemanek commented he cannot support approving funds for an economic <br /> development incentive without knowing the terms of the agreement. <br /> Councilmember Earp asked what other means can the sales tax funds be utilized. Mr. Livingston <br /> responded the economic development funds can be primarily used for job creation and <br /> infrastructure improvements. <br /> Councilmember Earp pulled Consent Item 5(b)for a separate vote. <br /> Councilmember Engelken asked if the development agreement will come back to Council after it <br /> has been ee approved by the La Porte Development Corporation Board. Mr. Livingston responded it <br /> doesn't have to come back unless directed by Council. Councilmember Engelken commented it <br /> was his understanding at the La Porte Development Corporation Board meeting Mr. Livingston <br /> commented the development agreement will come back to the La Porte Development Corporation <br /> Board for approval and then back to City Council. Councilmember Engelken also informed he <br /> reported the information to City Council during his report from the La Porte Development <br /> Corporation on April 13, 2015, and commented the development agreement should come back to <br /> City Council. Economic Development Coordinator Scott Livingston advised according to the bylaws, <br /> the agreement goes back to only the La Porte Development Corporation Board. <br /> Councilmember Moser moved to approve the Consent Agenda Items 5a and 5c pursuant to staff <br /> recommendations. Councilmember Leonard seconded. MOTION PASSED. <br /> Ayes: Mayor Rigby, Councilmembers Clausen, Moser, Leonard, <br /> Engelken, Martin, Zemanek, Kaminski and Earp <br /> Nays: None <br /> Absent: None <br /> Page 2 of 6 <br /> April 27, 2015, Council Meeting Minutes <br />