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<br />MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION <br />January 24, 2005 <br /> <br />1. Call to Order <br /> <br />President Pat Muston called the meeting to order at 5:01 p.m. <br /> <br />Members Present: Pat Muston, Bill Love, Ed Matuszak, Tommy Moser, Chuck <br />Engelken, Mike Clausen <br /> <br />Members Absent: Deborah Johnson <br /> <br />Staff Present: City Secretary Martha Gillett, Assistant City Manager Cynthia <br />Alexander, Assistant City Manager John Joerns, Assistant Finance Director Michael <br />Dolby and City Manager Debra Feazelle <br /> <br />Others Present: Paul G. of "Project Fixit". <br /> <br />2. Motion was made bv Chuck Engelken to approve the Minutes of September 27. 2004 <br />and the Minutes of January 3. 2005 as presented. Second by Ed Matuszak. Motion <br />carried unanimously. Councilmember Engelken motioned to make changes to include <br />the Economic Development Board. <br /> <br />Ayes: Pat Muston, Bill Love, Ed Matuszak, Tommy Moser, Chuck Engelken, Mike <br />Clausen, Michael Dolby <br />Nays: None <br />Abstain: None <br /> <br />3. Public Hearing for loan leveraging with the State of Texas Economic Development <br />Office for the promotion of a new business enterprise. <br /> <br />a. Open Public Hearing at 5:04 p.m. <br /> <br />b. Assistant City Manager Cynthia Alexander provided staff with a presentation of <br />loan leveraging for a HUB Operations for an Automotive Remanufacturing Center <br />to be constructed near the Intersection of Old Underwood Road and State Highway <br />225. <br /> <br />Ms. Alexander spoke briefly of loan leveraging; the loan leveraging program in <br />conjunction with the State of Texas and the office of the Governor of Economic <br />Development. The program is designed to allow communities to leverage local <br />funds with state funds to assist expansion, business recruitments and other business <br />opportunities. The program is administered by the Governor's Office; Economic <br />Development Corporation programs are eligible to borrow up to four to five times <br />the annual sales tax revenue under this program. These are low cost loans <br />providing capital at a floating prime rate. Future tax revenues serve as collateral <br />for the loan repayment. Loan proceeds must be used to pay eligible costs of the <br />project that is defined by the Development Corporation Act and our proposed <br />project meets the standard. The loan process is put into action earlier this month <br />following the meeting between the Governor's Staff and La Porte Development <br />Consortium. We are now working with the proposed applicant in submission of a <br />loan with the State of Texas. The applicant repays us and we repay the State. The <br />proposed project is "Fix It" to remanufacture automobile; this project will create <br />pmn!ovmpnt Fin:!! nptition will hp c'lonp within thp npxt six wppks <br />