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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
<br />ITEMITEM
<br />January 9, 2017January 9, 2017AppropriationAppropriation
<br />Agenda Date Requested:Agenda Date Requested:
<br />Fund 038Fund 038
<br />Traci LeachTraci LeachSource of Funds:Source of Funds:
<br />Requested By:Requested By:
<br />
<br />AdministrationAdministrationAccount Number:Account Number:
<br />Department:
<br />$426,000.00$426,000.00
<br />Report:Resolution:Resolution:Ordinance:Ordinance:Amount Budgeted:Amount Budgeted:
<br />$166,000.00$166,000.00
<br />Amount Requested:Amount Requested:
<br />Exhibits:
<br />Budgeted Item:Budgeted Item:YESYESNONO
<br />1.Development Agreement ExcerptDevelopment Agreement Excerpt
<br />2.Presentation and Tax StatementPresentation and Tax Statement
<br />SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
<br />On September 22, 2014, both the ED Board and City Council approved an economic development incentive On September 22, 2014, both the ED Board and City Council approved an economic development
<br /> incentive
<br />for ACT Independent Turbo Services, Inc.ACT Independent Turbo Services, Inc.((ACT) in the amount of ACT) in the amount of $426,000$426,000.. The ED Board approved and The ED Board
<br /> approved and
<br />executed the development agreement for this project on 17 November 2014.executed the development agreement for this project on 17 November 2014.
<br />According to the terms of the development agreement, ACT may receive three separate payments of up to According to the terms of the development agreement, ACT may receive three separate
<br /> payments of up to
<br />$75,000, $185,000, and $166,000 over a three year period.$75,000, $185,000, and $166,000 over a three year period. On June 27, 2016, the ED Board approved On June 27, 2016, the ED Board
<br /> approved
<br />Payment Request No. 1 for $75,000 and on October 24, 2016, the Board approved Pay Request No. 2 for Payment Request No. 1 for $75,000 and on October 24, 2016, the Board approved Pay
<br /> Request No. 2 for
<br />$185,000. In order to qualify for the third and final payment of $166,000, ACT must: In order to qualify for the third and final payment of $166,000, ACT must:
<br />Submit proof of total taxable value of at least $6,000,000 by October 31, 2017.Submit proof of total taxable value of at least $6,000,000 by October 31, 2017.
<br />Staff reviewed the both the documentation available on Harris County Appraisal District and the City of La Staff reviewed the both the documentation available on Harris County Appraisal
<br /> District and the City of La
<br />Porte billing.Porte billing. The ACT Independent Turbo operation covers several HCAD parcels and for tax year 2015, the The ACT Independent Turbo operation covers several HCAD parcels
<br /> and for tax year 2015, the The ACT Independent Turbo operation covers several HCAD parcels and for tax year 2015, the The ACT Independent Turbo operation covers several HCAD parcels
<br /> and for tax year 2015, the
<br />companys total real property valuation is over $7,000,000.s total real property valuation is over $7,000,000. The company has surpassed the taxable value The company has surpassed
<br /> the taxable value
<br />requirement in the development agreement without even accounting for the business personal property requirement in the development agreement without even accounting for the business
<br /> personal property
<br />(equipment). Please note that the property is held under two separate company names Please note that the property is held under two separate company names-- Gantua, LLC and NGT Gantua,
<br /> LLC and NGT
<br />& L Properties, LLC.& L Properties, LLC. These are the real estate/construction arms of ACT Turbo. These are the real estate/construction arms of ACT Turbo. ACT Turbo currently has
<br /> ACT Turbo currently has
<br />long-term auto renewing leases with these two companies, whose principals include Glenn Turner and Billy term auto renewing leases with these two companies, whose principals include
<br /> Glenn Turner and Billy
<br />Coleman.
<br />Staff has evaluated the required documentation, finds that the company has satisfied the requirements of the Staff has evaluated the required documentation, finds that the company has
<br /> satisfied the requirements of the
<br />development agreement, and recommends execution of payment in the amount of development agreement, and recommends execution of payment in the amount of $166,000$166,000 to to ACT
<br />
<br />Independent Turbo Services, Inc.Independent Turbo Services, Inc...
<br />Representatives of the company will be available to answer any questions that the Board may have about the Representatives of the company will be available to answer any questions that
<br /> the Board may have about the
<br />project.
<br />Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
<br />Consider approval or other action to authorize staff to execute payment in the amount of Consider approval or other action to authorize staff to execute payment in the amount of $166,000.00
<br /> $166,000.00 to to ACT
<br />Independent Turbo Services, Inc.Independent Turbo Services, Inc.in accordance with terms of incentive agreement.in accordance with terms of incentive agreement.
<br />
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