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HomeMy WebLinkAbout10-22-12 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 Notice is hereby given of a meeting of theCity of La Porte Development Corporation to be held on October 22,2012, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00p.m. 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 August 14, 2012 –P. Fogarty 3. Receive presentation from staff and provide guidance regarding the pursuit of anincentive project– S. Osborne 4. Consider approval or other action awarding a grant amount not to exceed $25,000.00 for Kyle Reese, owner of a historic building needing renovations for the Main Street Overlay District enhancement program to be awarded at the completion of the project –S. Osborne 5. Set date for next meeting –S. Osborne 6.Staff Reports (a)Receive Financial Report –M. Dolby 7.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. 8. 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. 9. Reconveneinto regular session and consider action, if any, on items discussed in executive session. 10. 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. CERTIFICATION I certify that a copy of the October 22, 2012, agenda of items to be considered by the Board of the La Porte Development Corporation was posted on the City Hall bulletin Boardon October 16, 2012 Page 1of 1 October 22, 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 AUGUST 14, 2012 August14,2012, 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 President Warrencalled the meeting to order at 5:00p.m. The following members of the La Porte Development Corporation Board were present: Board membersEngelken, Woodard, and Cooksley. Absent: Board members Zemanek, Clausen and Ojeda. Staff Present:Corby Alexander,Patrice Fogarty, Traci Leach, Clark AskinsandStacey Osborne. 2. Consider approval of Minutes of the La Porte Development Corporation Board held on July 24, 2012–P. Fogarty Board member Engelkenmoved to approve the minutes as presented. Board member Woodard MOTION PASSED. seconded. Ayes: President Warren, Board members Engelken, Woodardand Cooksley Nays: None Absent:Board members Zemanek, Clausen 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 912W. 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 Marty Campise and Joe Bertugliafor the development of medical/office space and retail 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 912W. Main Street to Marty Campise and Joe Bertugliafor the development of medical/office space and retail space –T. Leach Assistant City Manager Traci Leach presented a summary. Board member Woodard moved toauthorize 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 912W. 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 Marty Campise and Joe Bertugliafor the development of medical/office space and retailspace and for the La Porte Development Corporation Board president to negotiate and execute a purchase and sale agreement, and any necessary agreements and instruments Page 1of 3 August 14, 2012, La Porte Development Corporation Board Minutes related thereto, for the transfer of 912W. Main Street to Marty Campise and Joe Bertugliafor the development of medical/office space and retail space.BoardmemberCooksleyseconded. MOTION PASSED. Ayes: President Warren and Board members Engelken, Clausen and Cooksley Nays: None Absent:Board members Zemanek, Clausen and Ojeda 4. 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 911and915 S. 8th Streetfrom the City ofLaPortetotheLaPorte Development Corporation, acting as an independent foundation, for the resale of such property to G Force Development, Inc. 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 911 and 915 S. 8th Streetto G Force Development, Inc.for the development of office space –T. Leach Assistant City Manager Traci Leach presented a summary. Board member Engelkenmoved toauthorize 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 911and915 S. 8th Streetfrom the City ofLaPortetotheLaPorte Development Corporation, acting as an independent foundation, for the resale of such property to G Force Development, Inc. 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 911 and 915 S. 8th Streetto GForce Development, Inc.for the development of office MOTION PASSED. space. Board member Woodard seconded. Ayes: President Warren, Board members Engelken,Woodardand Cooksley Nays: None Absent:Board members Zemanek, Clausen and Ojeda 5.– Set date for next meetingS. Osborne th Board members set the next meeting date for the 10of September, 2012,at 5:00p.m. to discuss possible consideration of an enhancement grant. 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. Board member Woodard asked for an update on the Sylvan Beach Pavilion. City Secretary Patrice Fogarty andEconomic Development Coordinator Osbornadvised there is agroundbreaking ceremony on September 5, 2012,at 10:00 a.m. for the pavilion. 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. There was no executive session. Page 2of 3 August 14, 2012, La Porte Development Corporation Board Minutes 8. Reconvene into regular session and consider action, if any, on items discussed in executive session. There was no executive session. 9. Adjournment There being no further business, Board member Engelkenmoved to adjourn the meetingat 5:45 p.m.Board member Cooksley seconded. Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary nd Passed and approved on this22dayofOctober,2012. ____________________________________ President RichardWarren Page 3of 3 August 14, 2012, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested:10/22/12 Source of Funds: Requested By:Stacey Osborne Account Number: Department:CMO Amount Budgeted: Report:Resolution:Ordinance: Amount Requested: Exhibits:A.InterGulf Letterand Background Budgeted Item:YES NO B.Project cost estimate C.Site Map D.Photographs SUMMARY & RECOMMENDATION InterGulf Corporation is a local company seeking a location for the offices of the World Headquartersfor their growing business. InterGulf isplanning to consolidate the regional administrative offices to a new headquarterson a piece of property on the west side of SH 146 between C and D streets in La Porte. The company plans to invest $2.1M in capital investment, and create at least 40 new primary jobs in the coming year. InterGulf Corporation and the current owners of the property approached staff regarding the need for increased property areafor expansion and parking. InterGulf Corporation would like the La Porte Development Corporation to consider a project to pay for the cost of improving the drainage right of way, currently owned by the City of La Porte, on the south side of the property (D Street). The improvements would include the addition of box culverts, backfill, and paving it with asphalt so the site can accommodate the company’s plans for future growth. The company would also like to purchase the portion of the D Street right of way containing the improvements for the existing drainage channel from the City so they can use the surfacefor their expansion plans. However, the underground system would continue to serve the City’s drainage purposes, and would be a drainage corridor thatthe City would maintain and operate under the surface of the land. The city would reserve an easementas part of the closure of the right-of-way, for this purpose. In addition to improving the site for future development, this project would have the added benefit of saving the City costly maintenance costsover time. The right of wayis currently in disrepair, and this project would improve both the appearance and the efficiency of the drainage system. This project is a permissible EDC project under Chapter 501 of the Texas Local Government Code. As such, staff recommends that the EDC fund the project in an amount not to exceed $500,000.00.In addition, the city will contribute staff time devoted to engineering and project management. Any amount over the $500,000.00will be paid for by Intergulf Corporation. If the Board is amenable to this project, staffwill schedule a public hearing for the meetingof the Board of Directorsin November. This project will require that InterGulf Corporation enter into aperformance agreement with the La Porte Development Corporation, the terms of which would establish minimum thresholds for the creation of jobs, a specific capital investment, and other items to be determined. All parties involved will have the opportunity to provide input on the performance agreement before it is presented as a project. Action Required by Economic Development Corporation: Receive presentation and provide guidance to staff regarding the pursuit of this project. Approved for La Porte Development Corporation Agenda Corby D. Alexander, City ManagerDate September 19, 2012 Stacey F. Osborne Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, Texas 77571 Re: Intergulf Corporation’s Office Expansion Dear Ms. Osborne, I wanted to thank you for your time Monday morningand I’m encouraged to learn that the City of La Porte has established an economic development program that can provide incentives to businesses that are considering locatingto La Porte. As we discussed, we are interested in 1.07 acres of property located on Hwy. 146 S frontage just south of West C Street. This site serves as an excellent location between our three facilities and easy access to major highways. Our plan is to build an office / administration building to support our three facilities. This proposed office building would be our main headquarters for executives, accounting, administration, human resources, information technology, middle management, sales, etc. We expect to move an estimated 36 employeesimmediately from various offices inPasadena, Kemah and La Porte’s Battleground Industrial District with plans for a 20% employee growth factor. We are currently working on our finalized budget, but we are planning on a capital expense in the rangeof $2.0-$2.1 million for the acquisition of the property and the construction of a two story 14,000 –20,000 square foot building. The current property size of 1.07 acres will have significant limitations on parking spaces, fire access and future growth. Adjacent to the south side of the property is a drainage easement owned by the City of La Porte that measures approximately 80’ x 266’. This propertycould be improved with box culverts and covered to add an additional 0.49 acres ofproperty thus adding anadditional parking area that wouldsolve our perceived limitations. This improvement would also benefit the city as itwould no longer need to maintain a large drainage ditch that is currently experiencing slope failure and is an eyesore. Additionally, we are concerned that the 1.07 acreproperty could be impacted by the current slope failure of the drainage ditch causing future foundation issues. As you can see, this improvement would be beneficial to both Intergulf Corp. and the City of La Porte. We would like to ask the City of La Porte’s Economic Development Committee to consider sellingIntergulf the aforementioned property for approximately 75% of the estimated value ($3.25 per square foot)and pay for the improvements that includeadding box culverts, backfilling and paving withasphalt. This would solidify our decision to purchase this property and move our new office location to the City of La Porte. We look forward to working with the City of La Porte on our future office building site. Sincerely, Bandon Velek BrandonVelek, COO 281-474-4210 Phone 281-910-4210 Cell 281-474-2987 Fax About Intergulf Corporation Intergulf Corporation is an industrial liquids management company specializing in procuring, blending, treating, and processing petroleum,petrochemical secondary products, and waste streams. Strategically located along the Houston Ship Channel, Intergulf is actively involved in the petrochemical community and understands the dynamics involved in this sensitive, highly regulated arena. Formed in 1983, Intergulf has the experience, financial strength, and conservative management principals needed to meet the requirements of our customers. Intergulf operates in two primary business segments: products blending & trading, and waste & recoverable materials. Buyers of Petrochemical Co-Products & Cutterstock Our product segment specializes in petroleum and chemical products blending, processing, trading, and reclassification. Product sales and procurement activities extend from the U.S. Gulf Coast to the Central Northeast U.S., West Coast, and Canada. Products are shipped by rail and tank truck to ourStrang Road facility in La Porte, Texas or our Bayport Plant in Pasadena, Texas. Products can be shipped by barge or truck to our leased bulk storage tanks located on the Houston Ship Channeland our Marine Terminal in La Porte, Texas. Bulk shipments are made in or out bound by barge, rail, or truck. Liquid Waste & Recoverable Petroleum Fuels Intergulf provides liquid waste and recycling services to industrial generators and marine vessels. In January 1999, the Bayport processing facility was built and primarily focused on the collection and treatment of liquid waste from marine, industrial, and petrochemical industries and more specificallymaterials that contain recoverable amounts of petroleum products for extraction and resale. In 2000, Intergulf expanded services to include non-hazardous wastewater treatment rd and disposal for 3party generators pursuant to a permit received from the Texas Commission on Environmental Quality (TCEQ). This permit was modified in 2011 to include hazardous waste. This fully permitted processing facility accepts materials from industrial, petrochemical, and transportation related facilities including waste water, oil emulsions, used oil, sludges, tank bottoms, municipal sumps/grit traps for road base recycling, and recoverable petroleum product streams. The Bayport plant is equipped to handle both truck (vacuum, tanker, roll off, drum) and rail shipments. Intergulf also provides off site waste services and transportation using our fleet of vacuum trucks, tanker trucks, and drum transports. Bayport -Physical Plant The Bayport facility is situated on 2.5 acres of land located in the Bayport Industrial Complex, Pasadena, Texas. The facility was constructed in 1999 on virgin property zoned strictly industrial. All truck handling and material processing operations are conducted within a sealed concrete containment area designed to eliminate the possibility of environmental contamination. The Bayport facility is routinely inspected by a variety of regulatory agencies and has never been cited for a major violation. A closure bond has been established with the TCEQ in the form of a paid-in trust to cover potential clean up expenses in the event of facility closure. The Bayport facility is registered with the U.S. EPA and the Texas Commission for Environmental Quality (TCEQ) as a used oil processor and transporter. The facility is permitted by the U.S. Coast Guard as a mobile transfer facility and by the TCEQ as a non-hazardous industrial waste processing facility. The U.S. EPA has determined that the Bayport facility is acceptable for the receipt of hazardous substances, pollutants or contaminants (excluding RCRA hazardous waste) from Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) response actions. Intergulf’s Bayport facility recovers several thousand barrels of oil/fuel and recovered products per month that is blended onsite then sold into utility fuel oil, gasoline blendstock market, and commercial chemical product markets. Residual waste water rd generated from the fuel recovery operation and waste water received from 3party generators is pretreated using a variety of approved methods prior to discharge via pipeline to Gulf Coast Waste Disposal Authority (GCA). GCA is a state-chartered authority created to provide regional waste treatment services to industry. Wastewater discharged is allowed under a permit withGCA to its Bayport plant. The physical plant and facility consists of 2 office buildings with asphalt parking lot, plant processing area of approximately 22,000 square feet which contains 6 truck loading/unloading stations, rail spur for rail car transfers, 18 assorted storage/processing tanks with a total capacity of 700,000 gallons, two steam boilers, DAF (dissolved air floatation unit), filter press, mix tank, solids handing unit, and associated pumps, valves, piping, filters, walkways, controls, carbon absorption canisters, etc. Our onsite laboratory supports all phases of operations including material screening and oil and water quality. The Bayport plant is equipped to handle both truck and rail shipments. Intergulf also provides off site waste services and transportation using our fleet and vacuum, tank trucks, and drum transports. Strang –Physical Plant The Strang facility is 11 acres located at LaPorte’s Battleground Industrial District. This area is zoned heavy industrial and has easy access to Highway 225. The site is mostly raw land with 2,000’ of rail track, 1,500bbls. per day refinery, thermal oxidizer, 13,500bbls. of heated storage tanks, propane fire boiler, 3 railcar loading/unloading containment, 4 truck loading/unloading containment, laboratory, dispatchoffice, truck maintenance shop,controlled access gates, security cameras, and truck maintenance area. Intergulf’s future expansions will be located at this sitethat include a used oil re-refinery and centrifuge processing. Marine Terminal –Physical Plant Intergulf operates a bulk storage terminal located in La Porte’s Battleground Industrial District that serves as a fleeting location for Intergulf’s owned and operated 1,800HP tug boat, 10,000bbl. barge and two leased 10,000bbl. barges. This site stores petrochemical products and marine waste collected from vessels and terminals in the Texas gulf coast. The terminal consists of 31,200bbls. of bulk storage for Intergulf’s activities and rd 54,000bbls. of storage for 3party tank tenants. The terminal can receive and discharge materials by truck or barge featuring automated truck loading/unloading. The site is currently under construction to expand its bulk storage capacity to 200,000bbls. in the near future. Website:www.intergulfcorp.com PRELIMINARY ENGINEERING ESTIMATE FOR DRAINAGE IMPROVEMENTS ALONG "D" STREET CITY OF LA PORTE, TEXAS SECTION "A" - DRAINAGE ITEMBIDUNIT NO.ITEM DESCRIPTIONUNITQUANTITYPRICEAMOUNT 1Mobilization @_________________________________________________ _________________________________________________LS1.00$20,000.00$20,000.00 Per LumpSum 210'x7' RCB including Clearing, Grubbing & Bedding @_________________________________________________ _________________________________________________LF330.00$870.00$287,100.00 Per Linear Foot 3Earthwork Excavation for Fill Material @_________________________________________________ _________________________________________________CY7,300.00$4.75$34,675.00 Per Cubic Yard 4Type I Junction Box @_________________________________________________ _________________________________________________EA1.00$15,000.00$15,000.00 Per Each 5Type I Junction Box w/ Grate Inlet Top @_________________________________________________ _________________________________________________EA2.00$20,000.00$40,000.00 Per Each 6Storm Water Pollution Prevention @_________________________________________________ _________________________________________________LS1.00$1,000.00$1,000.00 Per Lump Sum SUBTOTAL SECTION "A" DRAINAGE$397,775.00 SUBTOTAL SECTION "A" SANITARY SEWER$397,775.00 +15% CONTINGENCY$59,666.25 TOTAL ESTIMATE FOR DRAINAGE IMPROVEMENTS$457,441.25 SECTION "B" - PARKING LOT ITEMBIDUNIT NO.ITEM DESCRIPTIONUNITQUANTITYPRICEAMOUNT 16" Reinforced Concrete Pavement @_________________________________________________ _________________________________________________SY1800.00$30.00$54,000.00 Per Square Yard 26" Lime Stabilization (8% by weight) @_________________________________________________ _________________________________________________SY1,926.00$3.75$7,222.50 Per Square Yard 36" Dowel Curb @_________________________________________________ _________________________________________________LF400.00$3.00$1,200.00 Per Linear Foot 4Striping @_________________________________________________ _________________________________________________LS1.00$5,000.00$5,000.00 Per Lump Sum 5Storm Water Pollution Prevention @_________________________________________________ _________________________________________________LS1.00$2,000.00$2,000.00 Per Lump Sum SUBTOTAL SECTION "B" $69,422.50 SUBTOTAL SECTION "B" PARKING LOT$69,422.50 +15% CONTINGENCY$10,413.38 TOTAL ESTIMATE FOR PARKING LOT$79,835.88 755756252628 AREA MAP W B ST 758757242321 PROPOSED CLOSING N. 11TH ST. R-O-W 4 PROJECT LOCATION WEST "D" STREET R-O-W 79179212 119 794793120117 W E ST 122 827828121124 Legend CLOSED RIGHT-OF-WAY 830829144143141 1 inch = 200 feet REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested:10/22/12 Appropriation Requested By:Stacey Osborne Source of Funds: Department:CMO Account Number:15-9892-993-1100 Report:XResolution:Ordinance: Amount Budgeted:$200,000 Amount Requested:$25,000 Exhibits:A.Application YESNO Budgeted Item: B.Photos C.Evaluation Summary SUMMARY & RECOMMENDATION In the most recentbudget year, the La Porte Economic Development Corporationagreed to continue fundingan enhancement grant program for the Main Street District. The program offered matching grants of up to $25,000 for businesses in the Main Street District to improve building facades. The project was allotted $200,000. The goals of the project were to beautify Main Street, to enhance Main Street’s appeal to new businesses and visitors, and to add value to the City of La Porte. Kyle Reesehas submitted a grant application for renovations to a historic building at 406 West Main Street.The Enhancement Grant Application Committee met to discuss the application, and agreed that it should be approved for an amount not to exceed $25,000. The actual award will be one-half of the amount Mr. Reesespends on approved expenses for the project up to $25,000, and will be contingent upon the project being completed as indicated in this grant application. Attached is the application that Mr. Reesesubmitted, as well some photographs of thebuilding and an evaluation summary. The committee recommends that the Board conditionally award a grant in an amount not to exceed $25,000, based on receipts and completion of work as indicated. Action Required by Economic Development Corporation: Consider approval or other action ofa grant amount not to exceed $25,000forMr. Reese, to be awarded at the completion of the project, conditional upon receipts and completion of work as indicated. Approved for La Porte Development Corporation Agenda Corby D. Alexander,City ManagerDate This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2011-12FY 2010-11 Unaudited Beginning Fund Balance 9/302,125,2242,125,2241,639,258 Plus Year to Date Revenues: 1/2 Cent Sales Tax1,086,9651,432,6321,169,590 Transfers-In154,914154,914- Interest Income3,2303,8443,870 Total Revenues1,245,1091,591,3901,173,460 Equals Total Resources3,370,3333,716,6142,812,718 Less Year to Date Expenditures: Payroll40,27349,90163,596 Supplies2,2472,4801,975 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)63,67083,38175,613 Capital Outlay-23,900- * Debt Service Transfer495,254605,310570,801 Capital Projects Transfers**727,500889,167325,417 Total Expenditures1,328,9441,654,1391,037,402 Estimated Year to Date Fund Balance$2,041,389$2,062,475$1,775,316 *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.