HomeMy WebLinkAbout07-16-12 Meeting of the La Porte Development Corporation Board of Directors
RICHARD WARREN,PRESIDENT
MIKE CLAUSEN, BOARD MEMBER
MIKE COOKSLEY, BOARD MEMBERRANDY WOODARD, BOARD MEMBER
JOHN ZEMANEK, BOARD MEMBERNANCY OJEDA, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER
CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA
July 16,
Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on
2012,5:00p.m.
at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at to
consider the followingitems of business:
1.
Call to order
2.
Consider approval of minutes of the meeting of La Porte Development Corporation Board held on
May 15, 2012 –P. Fogarty
3. Public Hearing
to receive comments on aproposed project providing for the expenditure of
$1,000,000.00 bythe La Porte Development Corporation to fund an incentive grant for drainage
and street related infrastructure improvements for a plant expansion project in the Battleground
Industrial District –S. Osborne
4.
Consider approval or other action concerning proposed expenditure of $1,000,000.00 by
the
Development Corporation to fund an incentive grant for drainage and street related
La Porte
infrastructure improvements for a plant expansion project in the Battleground Industrial District –S.
Osborne
5.
Consider approval or other action regarding proposed budget for the 2012-2013 La Porte
Development Corporation Board and provide staff withdirection –S. Osborne
6.
Set date for next meeting –S. Osborne
7.Staff Reports
(a)Receive Financial Report –M. Dolby
8.Board member commentsregarding matters appearing on agenda; recognition of community members,
city employees, and upcoming events; inquiry of staff regarding specific factual information or existing
policies.
9.
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.
10.
Reconveneinto regular session and consider action, if any, on items discussed in executive
session.
11.
Adjourn
In compliance with the Americans with Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending publicmeetings. To better serve attendees, requests should be
received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
Page 1of 2
July 16, 2012, La Porte Development Corporation Agenda
CERTIFICATION
I certify that a copy of the July 16, 2012, agenda of items to be considered by the Board of the La Porte Development
Corporation was posted on the City Hall bulletin BoardonJuly 11, 2012.
________________________________
Patrice Fogarty,City Secretary
Page 2of 2
July 16, 2012, La Porte Development Corporation Agenda
RICHARD WARREN,PRESIDENT
MIKE CLAUSEN, BOARD MEMBER
MIKE COOKSLEY, BOARD MEMBERRANDY WOODARD,BOARDMEMBER
JOHN ZEMANEK, BOARD MEMBERNANCY OJEDA, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER
MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OF MAY 15, 2012
May 15,2012,
The City of La Porte Development Corporation Board met onat the City Hall Council
5:00p.m
Chambers, 604 West Fairmont Parkway, La Porte, Texas, at .to consider the followingitems of
business:
1.
Call to Order
Board member Engelken called the meeting to order at 5:05p.m. The following members of the La
Porte Development Corporation Board were present: Board membersClausen, Zemanek and
Cooksley. Absent: Board members Woodard and Ojeda. President Warren arrived at 5:07 p.m.
Staff Present:Steve Gillett, Traci Leach, Stacey Osborne, Sharon Harris,Shelley Wolny,and
Assistant City Attorney Clark Askins.
2.
Consider approval of Minutes of the La Porte Development Corporation Board held on April 16,
2012–P. Fogarty
Board member Clausenmoved to approve the minutes as presented. Board member Zemanek
MOTION PASSED.
seconded.
Ayes: Board members Clausen, Engelken, Zemanek and Cooksley
Nays: None
Absent:President Warren and Board members Woodard and Ojeda
3.
Consider approval or other action to authorize the La Porte Development Corporation Board
President to negotiate and execute a purchase and sale agreement, and any necessary
agreements and instruments related thereto, for the transfer of 908 W. Main Streetfrom the City of
La Porte to the La Porte Development Corporation, acting as an independent foundation, for the
resale of such property to K. Belle Interests for the development of office space and for the La Porte
Development Corporation Board President to negotiate and execute a purchase and sale
agreement, and any necessary agreements and instruments related thereto, for the transfer of 908
W. Main Street from the La Porte Development Corporation to K. Belle Interests for the
development of office space–T. Leach
Assistant City Manager Traci Leach presented a summary.
Board member Zemanekmoved to authorize the La Porte Development Corporation Board
President to negotiate and execute a purchase and sale agreement, and any necessary
agreements and instruments related thereto, for the transfer of 908 W. Main Street from the City of
La Porte to the La Porte Development Corporation, acting as an independent foundation, for the
resale of such property to K. Belle Interests for the development of office space and for the La Porte
Development Corporation Board President to negotiate and execute a purchase and sale
agreement, and any necessary agreements and instruments related thereto, for the transfer of 908
Page 1of 3
May 15, 2012, La Porte Development Corporation Board Minutes
W. Main Street from the La Porte Development Corporation to K. Belle Interests for the
MOTION PASSED.
development of office space.Board member Clausen seconded.
Ayes: President Warren and Board members Clausen, Engelken,
Zemanek and Cooksley
Nays: None
Absent:Board members Woodard and Ojeda
4.
Consider approval or other action awarding a grant amount not to exceed $17,845.00 for Kathleen
Lemon P.C., CPA,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 Zemanek questioned $1,000.00 for miscellaneous. Ms. Osborne informed the
$1,000.00 for miscellaneous was for area pavingof the driveway; car stops and striping; shutters
and painting; and landscaping.
Board member Cooksley questioned if the grant amount not to exceed $17,845.00 was to fund half
of the project. Economic Development Coordinator Stacey Osborne responded yes.
Board member Clausenmoved to approve awarding a grant amount not to exceed $17, 845.00 for
Kathleen Lemon P.C., CPA,for the Main Street Overlay District enhancement program to be
MOTION PASSED.
awarded at the completion of the project. Board member Engelkenseconded.
Ayes: President Warren and Board members Clausen, Engelken,
Zemanek and Cooksley
Nays: None
Absent:Board members Woodard and Ojeda
5.
Consider approval or other action regarding the purchase of land located at 114 N. Third Street by
the La Porte Development Corporation for use as parking lot for Main Street business and park
patrons and the addition of a budget item in the FY2012-2013 budget for parking construction –S.
Osborne
Economic Development Coordinator Stacey Osborne presented a summary.
Board member Cooksley questioned if the address was actually 114 S. Third Street instead of 114
N. Third Street. Interim City Manager responded yes, the address was erroneously listed as 114 N.
Third Street at the Harris County Appraisal District.
Board member Engelken moved to approve the purchase of land located at 114 N. Third Street by
the La Porte Development Corporation for use as parking lot for Main Street businessesand park
patrons and the addition of a budget item in the FY2012-2013 budget for parking construction.
MOTION PASSED.
Board member Zemanekseconded.
Ayes: President Warren and Board members Clausen, Engelken,
Zemanek and Cooksley
Nays: None
Absent:Board members Woodard and Ojeda
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May 15, 2012, La Porte Development Corporation Board Minutes
6.–
Set date for next meetingS. Osborne
Board members set the next meeting date for tentatively June 11, 2012,or June 12, 2012,at 5:00
p.m.
7.
Staff Reports
(a)Receive Financial Report –M. Dolby
Treasurer Shelley Wolnypresented a Financial Report.
8.
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.
President Warren requested Economic Development Coordinator Stacey Osborne to provide an
update regarding directional signage. Ms. Osborne reported the signs are constructed and were
approved by the Texas Department of Transportation, butHarris County requested specifications
from the sign company before moving forward.Ms. Osborne reported she is working with the sign
company to provide specificationsto Harris County.
President Warren and Board members Zemanek and Clausen welcomed new Board member Mike
Cooksley.
9.
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.
There was no executive session.
10.
Reconvene into regular session and consider action, if any, on items discussed in executive
session.
There was no executive session.
11.
Adjournment
There being no further business, Board member Engelkenmoved to adjourn the meeting. The
meeting was adjourned at 5:25p.m.
Respectfully submitted,
____________________________________
Patrice Fogarty, City Secretary
Passed and approved on thisdayofJune,2012.
____________________________________
President RichardWarren
Page 3of 3
May 15, 2012, La Porte Development Corporation Board Minutes
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
Appropriation
Agenda Date Requested:7/16/12
Source of Funds:
Requested By:Stacey Osborne
Account Number:
Department:CMO
Amount Budgeted:
Report:Resolution:Ordinance:
Amount Requested:
Budgeted Item:YESNO
ExhibitNebula Facts and Figures
Commitment Letter
Public Hearing
SUMMARY & RECOMMENDATION
This Public Hearing is to receive public input on the proposed expenditureof La Porte
Development Corporation funds to pay for an incentive grant in the amount of $1M for Project
Nebula.
The project, which consists of two different plants, is estimated to bring a capital investment of
$950,000,000 and 90 direct jobs. The company expects that they will be up and running by the
end of 2015, so the City of La Porte will begin to see revenues in 2016(year 1). The estimated
revenues through 2025 are as follows:
Total annual IDA fees paid to the City of La Porte (years 1 –4): $1,358,845
Total annual IDA fees paid to the City of La Porte (years 5 –10): $4,259,195
At a Special Called La Porte Development Corporation Board meeting on April 16, 2012, the
Board committed to a grant from the Economic Development fund not to exceed $1,000,000 and
set two conditions on the grant:
1.Contingent upon both plants being located within the Battleground Industrial District;
and
2.Grant distribution will be negotiated based on construction scheduled agreed upon by
both the company and the City
Upon receipt of public input on this project, the Board will vote on whether to approve this
expenditure as a project of the La PorteDevelopment Corporation. If approved, the project
cannot be undertaken until the 60 day period following the publication date of the notice of
public hearing. If during this 60 day period at least 10 percent of the registered voters file a
petition requesting a public election on the proposed project, the project must be put on hold and
submitted to the voters for approval.
If approved, the projectwill beincluded in theFY 2012-13budget to be approved by both the
La Porte Development CorporationBoard and the City Council.
Action Required by La Porte Development CorporationBoard:
1.Conduct public hearing
Consider approval or other action to accept the incentive grant of $1M for Project Nebula
2.
as aproject of the La Porte Development Corporation.
Approved for La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerDate
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
Appropriation
Agenda Date Requested:7/16/12
Source of Funds:
Requested By:Stacey Osborne
Account Number:
Department:CMO
Amount Budgeted:
Report:Resolution:Ordinance:
Amount Requested:
Budgeted Item:YESNO
ExhibitNebula Facts and Figures
Commitment Letter
Public Hearing
SUMMARY & RECOMMENDATION
This Public Hearing is to receive public input on the proposed expenditureof La Porte
Development Corporation funds to pay for an incentive grant in the amount of $1M for Project
Nebula.
The project, which consists of two different plants, is estimated to bring a capital investment of
$950,000,000 and 90 direct jobs. The company expects that they will be up and running by the
end of 2015, so the City of La Porte will begin to see revenues in 2016(year 1). The estimated
revenues through 2025 are as follows:
Total annual IDA fees paid to the City of La Porte (years 1 –4): $1,358,845
Total annual IDA fees paid to the City of La Porte (years 5 –10): $4,259,195
At a Special Called La Porte Development Corporation Board meeting on April 16, 2012, the
Board committed to a grant from the Economic Development fund not to exceed $1,000,000 and
set two conditions on the grant:
1.Contingent upon both plants being located within the Battleground Industrial District;
and
2.Grant distribution will be negotiated based on construction scheduled agreed upon by
both the company and the City
Upon receipt of public input on this project, the Board will vote on whether to approve this
expenditure as a project of the La PorteDevelopment Corporation. If approved, the project
cannot be undertaken until the 60 day period following the publication date of the notice of
public hearing. If during this 60 day period at least 10 percent of the registered voters file a
petition requesting a public election on the proposed project, the project must be put on hold and
submitted to the voters for approval.
If approved, the projectwill beincluded in theFY 2012-13budget to be approved by both the
La Porte Development CorporationBoard and the City Council.
Action Required by La Porte Development CorporationBoard:
1.Conduct public hearing
Consider approval or other action to accept the incentive grant of $1M for Project Nebula
2.
as aproject of the La Porte Development Corporation.
Approved for La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerDate
PROJECTNEBULA/CARL: FACTS AND FIGURES
Industrial District Facts:
Total revenue from all Industrial District Agreements (IDA’s), as of February 2012:
$10,396,748
126
Total number of IDA’s currently in place:
$3,041,503,531
Total value of companies currently in the Industrial Districts:
$210,263,775
Value of the largest revenue producer(Total Petrochemical):
$780,465
Annual revenue from the largest revenue producer:
Assumptions:
Bothprojects land in La Porte
$950,000,000
Total project value, after construction, will be
Construction period of 3 years
First year of income to the City of La Porte: 2016
Current Property Value and Taxes (based on HCAD valuation):
$2,200,914
Current property value =
$9,688*
Total annual IDA fees paid to the City of La Porte:
Real, Business Personal Property Received Annually After Expansion:
$1,358,845
Total annual IDA fees paid to the City of La Porte(years 1 –4):**
$4,259,195**
Total annual IDA fees paid to the City of La Porte (years 5 –10):
$1,000,0002016
City of La Porte Break-Even Point on Grantis .
*Calculation is based on an IDA rateof 63% of the City of La Porte property tax rate, per the IDA currently in place.
**Calculation assumes that (a) an IDA rateof 20% of the City of La Porte property tax ratethrough Year 4(2019) AND (b)that the IDA
ratewill increase to 63% of the City of La Porte property tax rate in Year 6 (2020).
4/12/12
Prepared by S. Osborne, City of La Porte Economic Development
THE STATE OF TEXAS
COUNTY OF HARRIS
CITY OF LA PORTE
NOTICE OF PUBLIC HEARING
LA PORTE DEVELOPMENT CORPORATION BOARD (TYPE B BOARD)
Notice is hereby given that the La Porte Development Corporation Board (Type B Board)
th
5:00 p.m16day
of the City of LaPorte, Texas will conduct a public hearing at . on the
of July,2012
, in the Council Chambers at City Hall, 604 West Fairmont Parkway, La
Porte, Texas. The purpose of the public hearing is to receive public input onaproposed
project providing for the expenditureof $1,000,000.00by the La Porte Development
Corporation to fund an incentive grant for drainage and street related infrastructure
improvements for a plant expansion project in the Battleground Industrial District.
Persons wishingto address theBoard pro or con shall be required to sign in before the
meeting is convened.
CITY OF LA PORTE
Patrice Fogarty, TRMC
City Secretary
A quorum of City Council members may be present and participate in discussions during this meeting,
however, no action will be taken by Council.
This facility has disability accommodations available. Requests for accommodations or interpretive
services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s
office at (281) 471-5020 or TDD Line (281) 471-5030 for further information.
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
Appropriation
Agenda Date Requested:7/16/12
Source of Funds:
Requested By:Stacey Osborne
Account Number:038
Department:CMO
Amount Budgeted:
Report:Resolution:Ordinance:
Amount Requested:
Budgeted Item:YES NO
Exhibits:Budget Summary-Revenues
Budget Summary -Expenditures
Fund Summary
Advertising Summary
SUMMARY & RECOMMENDATION
The 2012/2013 Budget will go before Council in August. Fund038 is funded by the ½ cent Type
B Sales Tax that this Board oversees. The current budget is attached for reference, as well as an
advertising summary that explains the advertising portion of the fund. Staff will discuss key
points of the budget at tonight’s workshop.
After this workshop, staff recommends thatthe Board to consider action adopting the 2012/2013
budget for the La Porte Development Corporation Board prior to the City submitting the Budget
for a public hearing and Council’s ratification.
Action Required by Economic Development Corporation:
Consider approval or other action to approve the proposed fiscal year 2012-13 budget for the La
Porte Development Corporation.
Approved for La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerDate
7/6/2012
City of La Porte
La Porte Develoment Cororation (038) Fund Summar
ppy
(Section 4B Sales Tax)
eginning Fund Balance 9/30/11
$ 2,123,808
B
Plus Estimated 11-12 Revenues1,852,741
Less 11-12 Expenditures and Commitments
Debt Payments660,338
Economic Development Operations149,276
Capital Projects/Transfers970,000
Total Expenditures1,779,614
stimated Fund Balance 9/30/12
2,196,935
E
Plus 12-13 Revenues:
1/2 Cent Sales Tax1,727,397
Interest Income3,000
Total Revenues1,730,397
quals Total Resources
3,927,332
E
Less 12-13 Expenditures:
Economic Development Operations280,060
*
Debt Service Transfer410,061
Transfer to General CIP Fund - 3rd St Parking Lot Project125,000
Total Expenditures815,121
nding Fund Balance 9/30/13
$ 3,112,211
E
EstimateProjecte
dd
2011-122012-13
Revenues1,852,741$ 1,730,397$
Expenditures & Commitments1,779,614 815,121
Revenues over Expenditures73,127$ 915,276$
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
Advertising Expenditures - Explanation
FY 2012-13
Fund 038
The advertising budget for the 038 account is primarily focused on La Porte’s viability as a business destination for both
potential business owners and people who will patronize businesses that are already in our City. We also included some
tourism advertising, because tourism was one of the industries specifically listed as a target in the 2009 Economic
Development Strategic Plan.
In 2011-12 we advertised in the following publications and/or websites. The 2012-13 proposed budget includes some of
the same print, web, and general listings as last year, as well as cooperative advertising opportunities that we can extend
to brokers in the area who are targeting specific industries.
The publication list for FY 2011-12 included the following:
GHP ED Guide (produced by Texas Monthly)
Trade & Industry Development (listing in November/December issue)
Trade & Industry Development (web)
Ultimate Pasadena (Oct/Nov/Dec/April/May)
Texas Real Estate Guide (March 2012 Advertorial and ads in October/May editions)
See Texas First - Spring Advertisement (co-op ad offered by the BAHCVB)
Texas Wide Open for Business (produced by Journal Communications)
Bay Area Houston Magazine (four ads)
Tour Texas (co-op ad offered by the BAHCVB)
RED News (co-op ad that we offered to a local broker trying to sell a medical office space)
This is an Unaudited Statement.
City of La Porte
La Porte Develoment Cororation (038) Fund Summar
ppy
(Section 4B Sales Tax)
Previous
ReportFY 2011-12FY 2010-11
Unaudited Beginning Fund Balance 9/30
2,125,2242,125,224 1,639,258
Plus Year to Date Revenues:
1/2 Cent Sales Tax738,774 937,971 780,197
Transfers-In 154,914154,914 -
Interest Income2,519 2,724 3,027
Total Revenues896,207 1,095,609 783,224
quals Total Resources
3,220,8333,021,431 2,422,482
E
Less Year to Date Expenditures:
Payroll 35,96829,592 47,198
Supplies 2,1981,921 1,354
Services & Charges (Memberships, Training, Advertising, Legal, Utilities)52,176 63,202 60,378
*
Debt Service Transfer385,197 495,254 415,128
Capital Projects Transfers565,833 727,500 236,667
**
Total Expenditures1,034,719 1,324,123 760,725
stimated Year to Date Fund Balance
$ 1,896,7111,986,712$ 1,661,757$
E
*,.
DebtServicePaymentsforLibraryBayAreaBoulevard&CanadaRoadandBallfields
DebtServicePaymentsforLibraryBayAreaBoulevard&CanadaRoadandBallfields
**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.