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HomeMy WebLinkAboutOrd, 2006-2894 - development agreement, City, TIRZ #1, Redev. Authority Agenda Date Requested: EST FOR CITY COUNCIL AGENDA ITEM Appropriation Requested By: Source of Funds: Department: Account Number: Report: Resolution: Ordinance: x Amount Budgeted: Exhibits: Ordinance 2006- Amount Requested: Exhibits: Development Al?;reement Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION Prior correspondence to Council and the TIRZ/Redevelopment Authority noted that the developer of Lakes at Fairmont Greens could not secure financing for the development because of significant up front costs associated with the trunk sewer and lift station, even though the TIRZ/ Authority could eventually reimburse the developer. With this cost center removed, the developer was able to secure financing. During 05-06 budget preparation, Council approved $645,000 for the construction of the trunk sewer and lift station based on the understanding that the TIRZ/ Authority would reimburse the City from future increment. This agreement, between the City and TIRZ/ Authority provides for the City to advance the funds ($645,000) for the trunk sewer and lift station and act as construction manager for the TIRZ/ Authority. The agreement further provides for the TIRZ/ Authority to reimburse the City in the future. The trunk sewer lift station project is now estimated to cost $841,525 (includes Engineering costs) plus costs for a project representative during construction. Additional funds can come from either Fund 005 or the recently authorized Certificates of Obligation for water and sewer improvements or a combination. After bids are received we will return to City Council with a final recommendation for funding and any necessary budget adjustment. The TIRZ/ Authority approved this agreement at the May 24 meeting. Action Required bv Council: Consider approval of Ordinance 2006-_ authorizing a Development Agreement between the City of La Porte, TIRZ #1 and La Porte Redevelopment Authority. Approved for City Council A2enda rJhJf:flQ(iIiJ Debra B. F azelle, City anager (p-& -()~ Date ORDINANCE NO. 2oo6-dQ1 AN ORDINANCE APPROVING AND AUTHORIZING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, THE LA PORTE REDEVELOPMENT AUTHORITY, CITY OF LA PORTE, TEXAS AND CITY OF LA PORTE, TEXAS; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is herby authorized to attest to all such signatures and to affix the seal ofthe City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ORDINANCE NO. 2006-~tq1 PASSED AND APPROVED, this I/}II-- day o~, 2006. By: (\ CITY OF LA ~E . "-l^*-~ G. \~-C-- Alton E. Porter Mayor ATTEST: Martha A. Gillett City Secretary APPROVED: ~ tf:4cJ' · Knox W. Askins City Attorney