Ordinance #12,143

AN ORDINANCE AUTHORIZING THE CITY OF MONROE TO ACQUIRE A CERTAIN PARCEL OF REAL PROPERTY FROM I-20 CORRIDOR PROPERTIES, LLC, SITUATED IN OUACHITA PARISH, MONROE, LOUISIANA, SAID PROPERTY IS LOCATED NEAR THE CORNER OF TOWER DRIVE AND BIENVILLE DRIVE CONTAINING 8.45 ACRES ± IN MONROE, LA, AND FURTHER PROVIDING WITH RESPECT THERETO

WHEREAS, under the Louisiana Cooperative Economic Development Law, La. R.S. 33:9020, et seq., the City of Monroe (“City”) is authorized to enter into agreements with the State of Louisiana for state sales tax increments to receive and expend funds for the purpose of economic development;

WHEREAS, the City created the Tower-Armand Economic Development District (the “District”) for the purpose enhancing economic development, and entered into a cooperative endeavor agreement with the State of Louisiana for the pledge of state sales tax increments within the boundaries of the District;

WHEREAS, under the Cooperative Economic Development Law, the City is authorized to issue revenue bonds up to the full amount of the state sales increments to finance or refinance an economic development project or any part thereof or to pay all or a portion of the costs of an economic development project under La. R.S. 33:9035;

WHEREAS, in 2019, the City caused to be issued additional revenue bonds funded by state sales tax increments for the financing or refinancing or additional economic development projects within the District;

WHEREAS, under the Cooperative Economic Development Law and the bond issuance, the City may participate in the costs of an economic development, including but not limited to, the costs of acquiring property necessary for an economic development project;

WHEREAS, using District funds, the City desires to acquire 8.45 acres ± located near the corner of Tower Drive and Bienville Drive, Monroe, LA (legal description attached hereto as Exhibit “A”) currently owned by the I-20 Corridor Properties, LLC, for the purpose of economic development;

WHEREAS, the purchase of the property will facilitate a partnership and cooperative endeavor agreement with the Biomedical Research and Innovation Park (“BRIP”), a private nonprofit corporation organized and existing under the laws of Louisiana and is a tax-exempt organization as described in Section 50l(c)(3) of the Internal Revenue Code, whose mission is to support the growth of the biotechnical industry in north Louisiana by developing a physical location for biomedical start-ups and existing health sciences companies;

WHEREAS, BRIP intends to enter into cooperative endeavor and lease agreements with the City for the use and occupancy of the property, which will include the construction of a state-of-the-art research facility that will drive economic development through research, innovation, the promotion and development of new technologies, and serving as an incubator for small business;

WHEREAS, the purchase of the land will allow for BRIP’s investment into and construction of an expected $30,000,000 in capital infrastructure and improvements on the premises, including a 60,000 sq. ft. state the art research facility, a roadway that will be dedicated to the City, and other infrastructure improvements and enhancements upon the property;

WHEREAS, the purchase of this property and subsequent agreements with BRIP will also enhance economic development within the District and City by creating temporary construction jobs, generating sales and use tax on construction, creating an anticipated 175 permanent payroll jobs within the facility within three years (including an estimated $10.5 million in direct payroll impact), generating retail activity and consumption through new purchasers within the District, and promoting further growth and expansion of supporting businesses;

WHEREAS, Appraisal Consultants, LLC prepared an appraisal dated January 24, 2022, with the appraised value at $5,100,000.00.  A copy of the appraisal summary is attached hereto as Exhibit “B”;

WHEREAS, the City and I-20 Corridor Properties, LLC have agreed upon a purchase price of Five Million One Hundred Thousand and no/100 Dollars ($5,100,000.00); and

WHEREAS the funds to purchase this property will come from the Tower-Armand Economic Development District.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Monroe, Louisiana in legal session convened, that Friday Ellis, Mayor, be and he is hereby authorized and empowered for and on behalf of the City of Monroe to acquire the following described property for the sum of $5,100,000.00, to-wit:

See Exhibit “A”

IT IS FURTHER ORDAINED, that this Ordinance shall become effective immediately upon passage.

This Ordinance was INTRODUCED on the  25th    day of October 2022.

NOTICE PUBLISHED on October 31st and the  7th & 14th day of  November, 2022.

This Ordinance having been submitted in writing, introduced and published, was then submitted to a final vote as a whole and the vote thereon being as follows:

AYES: Ezernack, Woods, Marshall & Dawson

NAYS: None.

ABSENT: Harvey

And the Ordinance was declared ADOPTED on the  22nd day of  November, 2022.