06-01-15 Meeting of the La Porte Development Corporation Board of Directors

Browse Search

REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 1 June 2015 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: $300,000 Exhibit: Development Agreement -- Option A (Signed) Budgeted Item: YES NO Exhibit: Development Agreement – Option B Exhibit: Project Presentation Exhibit: Proposed Floor Plan Exhibit: Project Score Card w Gantstein Exhibit: Public Hearing Posting, BAO 2-5-15 Exhibit: Prospective Projects Financial Cash Flow Analysis SUMMARY & RECOMMENDATION Introduction The principals of Gantstein Esquire, LLC have purchased the former Texans Sports Bar and Grill at 10003 Spencer Hwy. Gantstein is considering two options to either: (1) invest only the necessary capital to redevelop the property and lease the space to an ice house operator, or (2) invest a significantly larger sum of capital to redevelop the property and open a new Pipeline Grill (see www.pipelinegrill.com). $1.2 Should the principals choose to redevelop the property as a Pipeline Grill, approximately million will need to be invested to repair the dilapidated property and upgrade it to a condition that is suitable for a nice, family-oriented restaurant. Once the restaurant is open for business, 4060 the project principals will hire approximately full time employees and part time employees to staff the restaurant and provide its famous quality service to its customers. The principals of Gantstein Esquire, LLC are planning to serve all of the Pipeline Grill’s catering customers for the entire area surrounding the Houston Ship Channel from this restaurant location in La Porte. Therefore, Gantstein estimates that the restaurant’s annual taxable retail sales will be $4 million approximately . In order to facilitate the re-development of the vacant building and develop a new Pipeline Grill $300,000 at this location, the principals request financial assistance in the amount of . The 3.54 years, estimated payback period for the $300,000 incentive for this proposed project is assuming there is no market cannibalization . Please note the enclosed project materials for additional information.