07-14-14 Meeting of the La Porte Development Corporation Board of Directors

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Component Facility Rotor Facility 8525 Freeland St 12022 N. P Street Houston, TX 77061 La Porte, TX 77571 713-364-7500 713-364-7500 To: City of La Porte Economic Development Corporation 604 W. Fairmont La Porte, TX 77571 Attn: Scott Livingston Re: ACT Independent Turbo Services Application for Economic Assistance Executive Summary ACT Independent Turbo Services is a fast growing company that specializes in IGT Overhaul and Repair. The company has worked hard to position itself as a leader in the market and based on the successes over the last couple of years, increase in production capacity and facilities expansion will be required to keep up with demand and expand our service offerings. Company management believes that relocating all service offerings to La Porte will be beneficial to the business, employees and the community. However, there is significant cost difference between expanding at the existing Houston location and performing a relocation of the business to La Porte. To assist in the relocation of our Main Production facility to La Porte, ACT Independent Turbo Services is requesting economic assistance in the amount of $450,000. About ACT Independent Turbo Services ACT Independent Turbo Services was founded in 1996 and served as a small niche market IGT (Industrial Gas Turbine) service provider for many years. In 2011 the decision was made to expand the service offerings as well as make significant investments in capabilities and personnel. Today, we employ 80 people between two locations and provide skilled services to industrial rotating equipment and power generation clients all over North and South America. We take pride in our highly skilled employee base that includes expert craftsman such as super -alloy welders, precision machinists, industrial mechanics, engineers and a tenured supervision and support network. With the addition of our Rotor facility in early 2013 and installation of state of the art equipment; ACT has invested more than $8MM into the business since 2011. Starting in early 2013, ACT Independent Turbo Services opened a second facility with expanded capabilities. This allows us to serve our clients out of not only our original and main facility located near Hobby Airport but a newly built rotor & heavy mechanical facility located in La Porte TX. Since 2012, the business has experienced growth greater than 20% year over year growth and are projected to reach full capacity at our main facility near Hobby Airport before or during the 2016 calendar year. The company is at a critical juncture as there is a requirement to invest capital to expand our operations to meet the current and projected demand. ACT Independent Turbo Services will need to enlarge the existing Hobby Airport location or totally relocate the entire business to La Porte. Why La Porte? The management team is familiar with the La Porte area and the benefits that living and working in the area have to offer. Our Rotor Facility property has room for an expanding business and could easily accommodate the current Houston business plus room for future expansions. In addition to La Porte's favorable location, our executive management is comprised of (6) senior members of which (3) are La Porte High School graduates and (2) others have lived and/or worked in La Porte for over 20 years. We not only have a commitment to make the business grow, but also a personal connection to the community. Some of the many benefits to the local La Porte economy and community upon relocation of ACT's operations to La Porte will be: - Several of our Employees are looking to relocate and buy homes in the area - We often entertain our clients and staff at local restaurants and golf courses - Development of Vocational programs to train students and recent graduates with vocational skills o Drafting/ Engineering o Welding/ Fabrication o Machining June 30, 2014 Page: 1 of 3