HomeMy WebLinkAbout04-09-12 Meeting of the La Porte Development Corporation Board of DirectorsRICHARD WARREN, PRESIDENT
BOB PIZZITOLA, VICE PRESIDENT
JOHN ZEMANEK, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER
MIKE CLAUSEN, BOARD MEMBER
RANDY WOODARD, BOARD MEMBER
NANCY OJEDA, BOARD MEMBER
CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA
Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on April 9,
2012, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to
consider the following items of business:
1. Call to order
2. Consider approval of minutes of the meeting of La Porte Development Corporation Board held on
March 12, 2012 — P. Fogarty
3. Receive presentation on incentive projects from consultant Eric Geisler, regarding possible
economic development expansion project — S. Osborne
4. Set date for next meeting — S. Osborne
5. Staff Reports
(a) Receive Financial Report — M. Dolby
(b) Receive update on East A Developments, LP, and/or Garson Silvers foreclosure
proceedings — S. Gillett
6. Board member comments regarding matters appearing on agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual
information or existing policies.
7. Executive Session — The La Porte Development Corporation reserves the right to meet in executive
session on any agenda item should the need arise and if authorized by the Texas Open Meetings
Act, Title 5, Chapter 551, of the Texas Government Code.
8. Reconvene into regular session and consider action, if any, on items discussed in executive
session.
9. Adjourn
In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATION
I certify that a copy of the April 9, 2012, agenda of items to be considered by the Board of the La Porte Development
Corporation was posted -on the City Hall bulletin Board on April 3, 2012.
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Patrice Fogarty, City Secretary
Page 1 of 1
April 9, 2012, La Porte Development Corporation Agenda
RICHARD WARREN, PRESIDENT
BOB PIZZITOLA, VICE PRESIDENT
JOHN ZEMANEK, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER
MIKE CLAUSEN, BOARD MEMBER
RANDY WOODARD, BOARD MEMBER
NANCY OJEDA, BOARD MEMBER
MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OF MARCH 12, 2012
The City of La Porte Development Corporation Board met on Monday, March 12, 2012, at the City Hall
Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:15 p.m. to consider the following
items of business:
1. Call to Order
President Warren called the meeting to order at 5:15 p.m. The following members of the La Porte
Development Corporation Board were present: Board members Ojeda, Woodard and Engelken.
Members of the La Porte Development Corporation Board absent: Vice President Pizzitola, Board
members Zemanek and Clausen.
Staff Present: Steve Gillett, Traci Leach, Stacey Osborne, Patrice Fogarty, Michael Dolby, and
Assistant City Attorney Clark Askins.
2. Consider approval of Minutes of the La Porte Development Corporation Board held on
February 27, 2012 — P. Fogarty
Board member Engelken moved to approve the minutes as presented. Board member Woodard
seconded. MOTION PASSED.
Ayes: President Warren, Board members Woodard, Ojeda, and
Engelken
Nays: None
Absent: Vice President Pizzitola, Board members Zemanek and
Clausen
3. Consider approval or other action awarding a grant amount not to exceed $25,000 for Curtis
Paskey and Paskey Incorporated for the Main Street Overlay District enhancement program
to be awarded at the completion of the project — S. Osborne
Economic Development Coordinator Stacey Osborne presented a summary.
Board member Engelken moved to award a grant not to exceed $25,000 for Curtis Paskey and
Paskey Incorporated through the Main Street Overlay District enhancement program to be awarded
at the completion of the project. Board member Ojeda seconded. MOTION PASSED.
Ayes: President Warren, Board members Woodard, Ojeda, and
Engelken
Nays: None
Absent: Vice President Pizzitola, Board members Zemanek and
Clausen
Page 1 of 2
March 12, 2012, La Porte Development Corporation Board Minutes
4. Receive presentation on incentive projects and direct staff how to proceed with future incentive
requests — S. Osborne
Economic Development Coordinator Stacey Osborne presented a summary and a list of commonly
requested economic development incentives. Ms. Osborne reported there are presently 125
Industrial District Agreements. Ms. Osborne also presented La Porte's local incentives and reported
that a company is looking at La Porte as one of its possible locations for development of
approximately $7 million to $1 billion of capital investment. Representatives will be at the April
meeting.
Staff was directed to move forward with future incentive requests on a case-by-case basis.
5. Set date for next meeting — S. Osborne
Board members set the next meeting date for April 9, 2012, at 5:00 p.m.
6. Board Comments
There were no comments from the board.
7. Executive Session
There was no executive session.
8. Reconvene
There was no executive session.
9. Adjournment
There being no further business, Board member Engelken moved to adjourn the meeting. Board
member Woodard seconded. The meeting was adjourned at 5:35 p.m.
Respectfully submitted,
Patrice Fogarty, City Secretary
Passed and approved on this 9th day of April, 2012.
President Richard Warren
Page 2 of 2
March 12, 2012, La Porte Development Corporation Board Minutes
REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM
Agenda Date Requested: 4/9/12
Requested By: Stacey Osborne
Department: CMO
Report: Resolution: Ordinance:
Exhibits: Presentation from E. Geisler
Appropriation
Source of Funds:
Account Number:
Amount Budgeted:
Amount Requested:
Budgeted Item:
SUMMARY & RECOMMENDATION
YES NO
Eric Geisler is the consultant for a large industrial project called Project Nebula. The City of La
Porte is one of several sites that have been short-listed for the project. The City of La Porte
submitted a proposal for Project Nebula offering the incentive of the Industrial District
Agreement (IDA), and Mr. Geisler has requested the opportunity to present to the EDC Board a
request for additional incentives on behalf of his client.
Staff will be ready to answer any questions pertinent to the Industrial Districts or the City of La
Porte that Mr. Geisler is unable to answer.
Action Required by Economic Development Corporation:
1. Receive the presentation from Mr. Geisler
2. Take any action desired by the Economic Development Corporation Board.
Approved for La Porte Development Corporation Agenda
Steve Gillett, City Manager
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This is an Unaudited Statement
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 413 Sales Tax)
Unaudited Beginning Fund Balance 9/30
Plus Year to Date Revenues:
1/2 Cent Sales Tax
Interest Income
Total Revenues
Equals Total Resources
Less Year to Date Expenditures:
Payroll
Supplies
Services & Charges (Memberships, Training, Advertising, Legal, Utilities)
Debt Service Transfer *
Capital Projects Transfers **
Total Expenditures
Estimated Year to Date Fund Balance
FY 2011-12 FY 2010-11
2,125,224 1,639,258
609,096
520,080
1,340
1,889
610,436
521,969
2,735,660
2,161,227
25,718
35,557
1,906
787
50,304
54,412
330,169
311,346
485,000
177,500
893,096
579,603
$ 1,842,563
$ 1,581,624
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
* *Capital Project Transfers are for the Lomax Rodeo Arena Improvements, Dog Park, Playground
Renovations, Golf Course Bathrooms and the remaining 50% of the bulkhead funding.
askins
& askins P.c.
ATTORNEYS and COUNSELORS
Knox W. Askins
Clark T. Askins
April 3, 2012
Board of Directors
City of La Porte
Development Corporation
City Hall
La Porte, Texas
Dear Board Members:
At its February 13, 2012, meeting, the City of La Porte Development
Corporation Board authorized our office to initiate legal
proceedings against East A Developments, LP, and/or Garson Silvers,
individually, for the collection of all amounts due to the City of
La Porte Development Corporation. On February 21, 2012, our office
sent notices to Garson Silvers, individually and as Registered
Agent for East A Developments, LP; and to Benjamin Miller, attorney
for Garson Silvers and East A Developments, LP, advising of a
foreclosure sale on April 3, 2012, of the property described as all
of Lots 6, 7, and 8, and the north 18' of Lot 9, in Block 198, Town
of La Porte, Harris County, Texas, which property secures a second
lien mortgage from East A Developments, LP, to the City of La Porte
Development Corporation, to secure a promissory note with a balance
of $35,153.76.
While the foreclosure sale was pending, I had a telephone
conference with Benjamin Miller, attorney for East A Developments,
LP, who confirmed that his client would not contest the foreclosure
sale. He gave me the name and telephone number of Ronald Piperi,
President of the first lienholder, Real Property Mortgage &
Investment Co., Inc. I contacted Mr. Piperi, who advised me that
Real Property Mortgage & Investment Co., Inc., holds first liens on
all of the property owned by East A Developments, LP, including the
Alamo Building. He confirmed that Garson Silvers had abandoned the
project, and the intention of the first lienholder to foreclose its
liens, and take over the development of the property. I have
attached to this letter, a letter which I received from Mr. Piperi,
as to the intentions of Real Property Mortgage & Investment Co.,
Inc. He confirmed that the first lienholder had posted for
foreclosure of its liens, on April 3, 2012.
As I explained to the Board at its January meeting, the foreclosure
of the first lien, cancels the second lien. Real Property Mortgage
702 W. Fairmont Parkway, P.O. Box 1218, La Porte, TX 77572-1218
281.471.1887 phone • 281.471.2047 fax • knoxaskins@comcast.net • ctaskins@swbell.net
Development Corporation
April 3, 2012
page 2
& Investment Co., Inc., recognizes that it must pay all of the
delinquent taxes on the property, and secure the dismissal of the
pending delinquent tax suit, or it will lose the property. The
property is now owned by Real Property Mortgage & Investment Co.,
Inc. Mr. Piperi indicated that his firm plans to take steps to
complete the construction of the property, so that it may be
offered for sale.
Please let me know if you have any questions.
Yours very truly,
Knox W. Askins
City Attorney
City of La Porte
Real Property Mortgage & Investment Company, Inc.
1502 Augusta Suite lOO Houston, Texas 77057
Telephone: 713.882.7171
March 20, 2012
Mr. Knox Askins
Askins & Askins P.C.
La Porte, Texas
RE: Our Conversation Yesterday
Dear Mr. Askins:
Facsimile: 713.470.2107
Via Email: knoxaskins(a)comcast.net
In reference to our conversation Monday, I would like to restate our desire to work with the City of La
Porte to recapture the original vision of Five Points. As you know we are the first lien holders on the
properties that adjoin the park by virtue of our loan to East A Development, LLC (aka Garson
Silvers), and that these loans have been in default for an extended period of time, the property is in
disrepair and the real property taxes are overdue.
It is our intent to foreclose upon our liens and take possession of the underlying assets — but in our
opinion this is where our relationship with the City of La Porte begins, not ends, as we move forward
to secure these properties by paying the past due RE taxes and making these assets ready to sale. It is
our intent to market these properties as a single unit and to gamer an end sales price that would allow
us to recapture our investment, the expenses and a portion of our past dues which we envision would
still allow us to allocate some of the sales proceeds to acquire the promissory note held by the City for
monies advanced to East A Development secured by a junior lien position by these same [or some of
these same] properties.
We are currently working with an agent for the sales listing in preparation of the upcoming
foreclosure date in April, and based upon our preliminary conversation and research that we have
performed we feel that our goal is achievable.
Please feel free to share this letter with the City of La Porte or any other interested party, and I will
keep you advised as to our progress, since it is my intent to develop our relationship and be a good
corporate citizen of the La Porte community.
Thank you.
Sincerely,
Ronald Drew Piperi
President