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HomeMy WebLinkAbout10-14-13 Meeting of the La Porte Development Corporation Board of DirectorsRICHARD WARREN, PRESIDENT MIKE COOKSLEY, BOARD MEMBER JAY MARTIN, 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 October 14, 2013, 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. 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. 1. CALL TO ORDER 2. CONSENT AGENDA (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately.) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on September 23, 2013 — P. Fogarty 3. PRESENTATIONS (a) Receive final report on retail and market study from Catalyst Commercial, Inc. — S. Livingston 4. AUTHORIZATIONS (a) Consider approval or other action to move forward with items identified for changes to the Enhancement Grant Program; renaming the program as the La Porte Enhancement Grant Program; expanding the boundaries of the program; and requesting an amendment to the FY 2013-2014 Budget for new enhancement grant projects — S. Livingston 5. SET DATE FOR NEXT MEETING — S. Livingston 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. 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 October 14, 2013, agenda of items to be considered by the Board of the La Porte Development Corporation was posted on the City Hall bulletin Board on October 8, 2013. October 14, 2013, La Porte Development Corporation Agenda RICHARD WARREN, PRESIDENT MIKE COOKSLEY, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER JAY MARTIN, BOARD MEMBER MIKE CLAUSEN, BOARD MEMBER RANDY WOODARD, BOARD MEMBER NANCY OJEDA, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF SEPTEMBER 23, 2013 The City of La Porte Development Corporation Board met on September 23, 2013, 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 President Warren called the meeting to order at 5:02 p.m. The following members of the La Porte Development Corporation Board were present: Board members Engelken, Woodard, Clausen, and Ojeda. Vice -President Cooksley and Board member Martin were absent. Staff Present: Corby Alexander, Traci Leach, Patrice Fogarty, Scott Livingston, Michael Dolby and Assistant City Attorney Clark Askins. 2. CONSENT AGENDA (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on August 26, 2013 — P. Fogarty (b) Consider approval or other action regarding proposed Amendment No. 1 to an Incentive Agreement dated June 10, 2013 between the La Porte Development Corporation and Intergulf Corporation — S. Livingston (c) Consider approval or other action authorizing first incentive payment of $375,000.00 to Intergulf Corporation pursuant to Incentive Agreement dated June 10, 2013 — S. Livingston (d) Consider approval or other action regarding proposed Incentive Agreement between the La Porte Development Corporation and INEOS USA, LLC. — S. Livingston Board member Engelken moved to approve the Consent Agenda pursuant to staff recommendations. Board member Clausen seconded. MOTION PASSED. Ayes: President Warren, Board members Clausen, Woodard, Engelken and Ojeda Nays: None Absent: Vice -President Cooksley and Board member Martin Page 1 of 4 September 23, 2013, La Porte Development Corporation Board Minutes 3. PUBLIC HEARING AND ASSOCIATED MATTERS (a) Public Hearing to receive comments regarding proposed incentive grant in an amount not to exceed $66,000.00 to Rob Johnson Interests to demolish and remove concrete slab in preparation for a new retail development on the former Chevrolet dealership lot, as a project of the La Porte Development Corporation — S. Livingston The public hearing was opened at 5:03 p.m. Economic Development Coordinator Scott Livingston presented a summary regarding a proposed incentive grant in an amount not to exceed $66,000.00 to Rob Johnson Interests to demolish and remove concrete slab in preparation for a new retail development on the former Chevrolet dealership lot, as a project of the La Porte Development Corporation. There being no public comments, the public hearing closed at 5:08 p.m. (b) Consider approval or other action regarding proposed incentive grant in an amount not to exceed $66,000.00 to Rob Johnson Interests to demolish and remove concrete slab in preparation for a new retail development on the former Chevrolet dealership lot, as a project of the La Porte Development Corporation — S. Livingston Board member Engelken moved to approve an incentive grant in an amount not to exceed $66,000.00 to Rob Johnson Interests to demolish and remove concrete slab in preparation for a new retail development on the former Chevrolet dealership lot, as a project of the La Porte Development Corporation. Board member Clausen seconded. MOTION PASSED. Ayes: President Warren, Board members Clausen, Woodard, Engelken and Ojeda Nays: None Absent: Vice -President Cooksley and Board member Martin 4. AUTHORIZATIONS (a) Consider approval or other action to authorize staff to move forward with preparations for a proposed project for an incentive grant in the amount not to exceed $15,000.00 to the Richard Industrial Group to open a new office and relocate and/or hire at least 75 full-time employees in La Porte — S. Livingston Economic Development Coordinator Scott Livingston presented a summary Rusty Sims, General Manager of Richard Industrial Group, provided information on the company. Mr. Sims advised the board Richard Industrial Group will be located at 1200 Hwy 146 by October 1, 2013, and has applied with the Chamber of Commerce and Economic Alliance. Board member Woodard questioned the expenses for an incentive grant in the amount of $15,000.00. Economic Development Coordinator Livingston advised $10,000.00 for a sign and $5,000.00 toward retrofit. Economic Development Coordinator Livingston advised the Board staff recommends an incentive grant in the amount of $15,000.00 and authorization to publish a notice for a public hearing to be held on December 9, 2013. Board member Clausen moved for staff to move forward with preparations for an incentive grant amount not to exceed $15,000.00 to the Richard Industrial Group. Board member Ojeda seconded. MOTION PASSED. Page 2 of 4 September 23, 2013, La Porte Development Corporation Board Minutes Ayes: President Warren, Board members Clausen, Woodard, Engelken and Ojeda Nays: None Absent: Vice -President Cooksley and Board member Martin (b) Consider approval or other action to expand the Enhancement Grant Program to include existing businesses on both Broadway and SH -146 — S. Livingston Board member Ojeda proposed funding $200,000.00 to the Enhancement Grant Program for Broadway. Board member Clausen commented there is only $67,000.00 remaining in the original grant program and questioned if the Board should consider a new fund to include other parts of the City. Board member Ojeda proposed that Economic Development Coordinator Scott Livingston re -write the policy for the Enhancement Grant Program and bring it back at a future meeting. 5. Set date for next meeting — S. Livingston Board members set the next meeting date for October 14, 2013, at 5:00 p.m. 6. Staff Reports (a) Receive Financial Report — M. Dolby Finance Director Michael Dolby presented the Financial Report. 7. 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 Ojeda questioned Economic Development Coordinator Scott Livingston if any concerns regarding the policy for the Enhancement Grant Program should be forwarded to him. Mr. Livingston responded, yes; and please do so by October 3, 2013. Ms. Ojeda also welcomed Rusty Sims to La Porte. 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. There was no executive session. 10. Adjourn There being no further business, at 5:38 p.m. Board member Engelken moved to adjourn the meeting. Board member Ojeda seconded. MOTION PASSED. Ayes: President Warren, Board members Clausen, Woodard, Engelken, and Ojeda Nays: None Absent: Vice -President Cooksley and Board member Martin Page 3 of 4 September 23, 2013, La Porte Development Corporation Board Minutes Respectfully submitted, Patrice Fogarty, City Secretary Passed and approved on this day of 12013. President Richard Warren Page 4 of 4 September 23, 2013, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: 14 October 2013 Requested By: Scott n_ Living%ton Department: Report: X Resolution: Ordinance: Exhibits: PowerPoint Presentation by Catalyst Commercial, Inc. Exhibits: Final Report of the Retail Study Exhibits: Catalvst Commercial's Service Agreement Budget Source of Funds: Account Number: Amount Budgeted: Budgeted Item: YES NO SUMMARY & RECOMMENDATION In January 2013, the La Porte Development Corporation Board approved a contract with Catalyst Commercial, Inc. to complete a retail and market study. Since that time, Catalyst has been collecting data for trade area delineation, competing trade area statistics, traffic counts, and mapping of key metrics/data. Catalyst Commercial, Inc. has completed the final report of the retail and market study. An electronic copy of the final report and a copy of the service agreement are enclosed in your meeting packet. Mr. Jason Claunch is available tonight to present the findings and conclusions of the retail and market study and address any questions that you might have. Action Required by the La Porte Development Corporation: None Approved for the La Porte Development Corporation Agenda Corby D. 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STATE OF TEXAS § § AGREEMENT FOR PROFESSIONAL SERVICES COUNTY OF § This Agreement (hereinafter "AGREEMENT,,) is made by between the City of La Porte Development Corporation (hereinafter "CLIENT"), a Texas non-profit corporation, acting by and through its President, and Catalyst Commercial, Inc., (hereinafter "CONSULTANT") a Texas corporation, acting by and through its authorized representatives: WHEREAS, the CLIENT selected CONSULTANT and approved amounts set forth herein for Consultant to provide services related to developing commercial retail growth and recruitment strategies in the City of La Porte, Texas ("SERVICES"); and WHEREAS, CONSULTANT has the knowledge, ability and expertise to provide such SERVICES needed by the CLIENT; and WHEREAS, the CLIENT desires to engage the services of CONSULTANT, as an independent contractor and not as an employee, to provide the SERVICES under the terms and conditions provided in this AGREEMENT; NOW, THEREFORE, in exchange for the mutual covenants set forth herein and other valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree as follows: A. TERM / TERMINATION 1.. The term of this AGREEMENT shall begin on the date of its execution by all parties. This AGREEMENT shall continue until CONSULTANT completes the services required herein to the satisfaction of the CLIENT, unless sooner teri-ninated as provided herein. 1 This Agreement may be terminated prior to the end of the term by either party, for any reason or for no reason, at any time upon thirty (30) days written notice by registered or certified mail, return receipt requested, addressed to the other party at the addresses listed below; provided, that in any such case, the CONSULTANT shall be paid the reasonable value of the services rendered up to the time of termination on the basis of the payment provisions of this Agreement. Copies of all completed or partially work prepared tinder this Agreement shall be delivered to the CLIENT when and if this Agreement is terminated, but it is mutually agreed by the parties that the CLIENT will use them solely in connection with the work performed by the CONSULTANT, except as otherwise agreed in writing by the parties. AGREEMENT FOR PROFESSIONAL SERVICES PAOFA Al B. SCOPE OF SERVICES / RES PONS IBILIT'Y OF THE PARTIES 1. O SULTANT's Responsibilities and Authority. A. Meetings, Prior to commencing work on the SERVICES listed in subsections (b) and (c) of this Section, CONSULTANT shall coordinate one (or more, as necessary) meetings with appropriate CLIENT staff members to determine the CLIENT's vision, goals, and timing regarding delivery of the SERVICES, and to help CONSULTANT better understand the site., market, concept and Project details. Said meetings) will allow further review of the CLIENT'S documents that are related to delivery of the SERVICES, including infrastructure, utilities, and zoning information. CONSULTANT shall coordinate two (2) additional meetings with appropriate CLIENT staff members to 1) report CONSULTANT's findings and 2) COiw SULTANT's presentation of the completed SERVICES. B. Scope. CONSULTANT shall provide the following SERVICE; related to the development of commercial retail growth and recruitment strategies in the City of La. Porte, Texas as follows: a. Trade Area Delineation i. Trade Area Delineation — Consultant shall collect customer samples from existing restaurants, major anchors, sub -anchors, highway retail, entertainment uses, and other retail locations. Samples shall be processed and geocoded to establish the retail trade are for LaPorte. ii. Competing 'Trade Area. Delineation — Consultant shall collect customer samples at Fairmont Parkway and Sam Houston Tollway ("Pasadena"), Interstate 45 ("Gulf Freeway") and W. Bay Area Boulevard ("Baybrook"), Garth Road and Interstate 10 (44San Jacinto Mall"), and FM 146 and FM 2094 ("Clear Label emah retail") iii. Trade Area Analysis Upon completion of collecting customer intercepts, Consultant shall evaluate the samples from in -market and competing areas and complete a summary of findings. b. Demand Analysis — Consultant shall complete an retail gap analysis using the statistical trade areas for each study area in relationship to current supply and demand to determine the estimated amount of retail leakage in La Porte. c. Merchandising Plan Consultant shall complete a written analysis (a "Merchandising Plan") from its findings, including; the following Sections: i. Marketing Collateral — Consultant shall prepare a summary of its finding in a condensed format in which Client can use in outlining key points for retail recruitment. AGREEMENT FOR PROFESSIONAL SERVICES PANG 2 ii. Merchant Matrix — Consultant shall list, categorize and geocode all major national retail within La Porte, Texas. iii, Sales/Lease Comparables — Consultant shall conduct interviews with major landowners or leasing agents in order to determine a range of asking rental rates or asking prices for major retail land tracts or leasing opportunities. iv. Traffic counts — Consultant shall provide four traffic counters and a summary of traffic counts. Any additional counters shall be at additional expense. v. Mapping — Consultant shall provide the following maps as part of the Merchandising Plan. 1. Aggregate Trade Area Maps 2. Site Specific Trade Area Maps 3. Customer Dot Maps 4. Demographic Maps a. Population density b. Income (average and median) 5. Major shopping centers within La Porte 6. Major competing shopping nodes 7. Major employers 8. Traffic counts (data to be provided by Client) C. Reporting. During the term of this AGREEMENT, CONSULTANT shall provide brief monthly written reports to the CLIENT detailing the status of CONSULTANT'S delivery of the SERVICES. No later than six (6) months after the effective date of this Agreement, Consultant shall deliver a final written report to the CLIENT detailing the results of the SERVICES referenced in Subsection (B), including the following information: executive summary, trade area delineation, drive time analysis, concentric ring analysis, property analysis, population analysis, income analysis, education profile, racial profile, lifestyle segmentation, firmographic analysis of the top 10 large employments, gap analysis, traffic count analysis, area overview for retail and restaurant, and retail and restaurant market analysis. D. CONSULTANT may enlist the efforts of CONSULTANT'S associates, and all CONSULTANT'S associates shall devote an amount of tine and effort on CLIENT'S behalf as CONSULTANT, in CONSULTANT'S sole discretion, determines necessary to carry out the duties described in this AGREEMENT. CONSULTANT and CONSULTANT's employees, agents, affiliates, and associates are entitled to engage in other business activities including, but not limited to, representing other principals, listing properties for sale or lease, and presenting the same properties to other prospects. E. CONSULTANT shall not commit CLIENT to any agreement unless CLIENT gives CONSULTANT written authorization to do so, I. Conflicts of Interest. CONSULTANT agrees and confirms that no official, representative, or employee of the CLIENT, Texas, including members of all boards, AGREEMENT FOR PROFESSIONAL SERVICES PAGE 3 M commissions, committees, and or corporations controlled or appointed by CLIENT, including the Board of Directors of the CLIENT, has received or been promised, in connection with or related in any way to this AGREEMENT, any commission, finder's fee, or otherthing of value.In addition, CONSULTANT affirms that it has no knowledge of any official, representative, or employee of CLIENT, including members of all boards, commissions, committees, and or corporations controlled or appointed by CLIENT, including the Board of Directors of CLIENT, has any financial interest in this AGREEMENT whatsoever, CONSULTANT agrees to exercise extreme care and to undertake preemptive measures to avoid any conflicts of interest, unintended or otherwise which may exist now or in the future. If any such conflict should develop or exist that is subject to Texas Local Government Code Chapter 171, as amended, CONSULTANT agrees to bring that fact immediately to the attention of the CLIENT. CONSULTANT shall complete and file a conflicts of interest questionnaire as required by Section 176.006 of the Texas Local Government Code with the CLIENT and the City Secretary for the City of La Forte, Texas, upon execution of this AGREEMENT. 2. Confidentiality. In the course of providing services for the CLIENT, CONSULTANT may learn or discover information that is identified by the CLIENT, as confidential, non-public, or proprietary information. CLIENT and CONSULTANT agree that, during the term of engagement and thereafter, it will not, directly or indirectly, disclose or use any such inforination of the other party ("Confidential Information") without the written consent of such party. Confidential Information shall not include: information which is currently in the public domain or hereafter enters the public domain without the fault or involvement of the receiving party; information known to the receiving party prior to its disclosure by other party and information disclosed to a receiving party from a source (other than the other party) having a lawful right to make such disclosure to the receiving party, or information required to be disclosed Linder any court order or governmental directive. Notwithstanding the above, CONSULTANT shall comply with all applicable laws regarding requirements of confidentiality and utilize its best efforts to safeguard such information and its own internal practices and procedure regarding prohibitions on disclosing information about its various clients. C. COMPENSATION 1. In exchange for its commitment to provide services to CLIENT hereunder, CLIENT shall pay CONSULTANT a fee of $24,947.00, of which thirty percent (30%) shall be paid prior to work commencement, thirty percent (30%) shall be paid upon presentation of finding update, thirty percent (30%) shall be paid upon delivery of the final report, and the remainder to be paid upon completion of the SERVICES to CLIENT's satisfaction and within thirty (30) days of receipt of invoice, D. TIME FOR COMPLETION 1. CONSULTANT'S SERVICES rendered tinder this AGREEMENT, excluding Implementation, shall be completed within six (6) months of the date of execution of this AGREEMENT. E. INDEMNIFICATION AGREEMENT FOR PROFESSIONAL SERVICES PAGE 4 �k- I. THE CONSULTANT AGREES, TO THE FULLESTEXTENT PERMITTED BY LAW, TO INDEMNIFY AND HOLD THE CLIENT HARMLESS FROM ANY DAMAGE, LIABILITY OR COST (INCLUDING REASONABLE ATTORNEYS' FEES AND COSTS OF DEFENSE) TO THE EXTENT CAUSED BY THE CONSULTANT'S NEGLIGENT ACTS, ERRORS OR OMISSIONS IN THE PERFORMANCE OF PROFESSIONAL SERVICES UNDER THIS AGREEMENT" AND THOSE OF HIS OR HER SUBCONSULTANTS OR ANYONE FOR WHOM THE 'CONSULTANT IS LEGAT.LY LIABLE. . THE CLIENT AGREES, TO THE FULLEST" EXTENT PERMITTED BY LAW, TO INDEMNIFY AND HOLD THE CONSULTANT HARMLESS FROM ANY DAMAGE, LIABILITY OR COST (INCLUDING REASONABLE ATTORNEYS' FEES AND COSTS OF DEFENSE) TO THE EXTENT CAUSED BY THE CLIENT'S NEGLIGENT ACTS, ERRORS OR OMISSIONS AND TIIosE OF THS OR HER CONTRACTORS, SUBCONTRACTORS Olt CONSULTANTS OR ANYONE FOR WHOM TIIE CLIENT Is LEGALLY LIABLE, AND ARISING FROM THE SERVICES THAT IS THE SUBJECT OF THIS AGREEMENT. 3. A PARTY TO THIS AGREEMENT IS NOT OBLIGATED TO INDEMNIFY THE OTHER PARTY IN ANY MANNER WHATSOEVER FOR THE FIRST PARTY'S OWN NEGLIGENCE. 4. NOTHING CONTAINED HEREIN SHALL CONSTITUTE A WAIVER OF GOVERNMENTAL IMMUNITY IN FAVOR OF ANY THIRD PARTY. F. MISCELLANEOUS L Entire Agd eetnent. This AGREEMENT constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties with respect to this subject matter. 2. Assignment. Neither this AGREEMENT nor any duties or obligations under it shall be assignable lay CONSULTANT without the prior written consent of CLIENT. 3, Amendment. This AGREEMENT may be amended only by the mutual written agreement of the parties. 4. Governing law., The validity of this AGREEMENT and any of its terms or provisions, as well as the rights and duties of the parties, shall be governed by the laws of the State; of Texas; and venue for any action concerning this AGREEMENT shall be in Harris County, Texas. 5. Notices. All notices required herein shall be in writing and shall be deemed delivered if personally delivered by hand, electronically sent by facsimile transmission or dispatched by certified or registered mail, return receipt requested, postage prepaid addressed to the parties as follows; If to CLIENT: Corby D. Alexander City Manager, LaPorte, a 604 West Fairmont Parkway AGR I tEMEN'r FOR PROFESSIONAL SERVICES PAGi� 5 j LaPorte, Texas 77571 If to CONSULTANT: Catalyst Commercial, Inc. 5307 E. Mockingbird Lane, 5"' Floor Dallas, Texas 75206 Notice shall be deemed given on the date received or when deposited in the mail in accordance with the foregoing. Each party may change the address to which to send notices by notifying the other party of such change of address in writing. 6. Legal construction. In the event any one or more of the provisions contained in this AGREEMENT shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or Unenforceability shall not affect any other provisions and the AGREEMENT shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this AGREEMENT, 7, Successors and Assigns. -- Successors A. The CLIENT and CONSULTANT each is hereby bound and the partners, successors, executors, administrators, legal representatives and assigns of CLIENT and CONSULTANT are hereby bound to the other party to this AGREEMENT and to the partners, successors, executors, administrators, legal representatives and assigns of such other party in respect of all covenants and obligations of this AGREEMENT, B. Neither the CLIENT nor the CONSULTANT may assign, sublet, or transfer any rights tinder or interest (including, but without limitation, moneys that are due or may become due) in this AGREEMENT without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this AGREEMENT. C. Nothing in this AGREEMENT shall be construed to create, impose or give rise to any duty owed by the CONSULTANT to any contractor, subcontractor, supplier, other person or entity, or to any surety for or employee of any of them, or give any rights in or benefits tinder this AGREEMENT to anyone other than the CLIENT and the CONSULTANT. 8. Sever i ability_. Any provision or part of the AGREEMENT held to be void or unenforceable under any law or regulation shall be deemed stricken and all remaining provisions shall continue to be valid and binding upon the CLIENT and the CONSULTANT, who agree that the AGREEMENT shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. AGREEMENT FOR PROFESSIONAL SERVICES PAGE 6 �k- 9, Count,erparts. This AGREEMENT may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. [Signature Purge to Follow] IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT to be effective as of the date last written below: EXECUTED on this day of 2013. City of La Porte Development Corporation By: -Richard Warren, President By: Patrice Fogarty, t ,eta, -/o -®roraiio---- - 0 in- - EXECUTED the day of fie" ,2013. CATALYST COMMERCIAL, Inc. By: kson Claunch, President M&MIM By: AGREEMENT FOR PROFESSIONAL SERVICES PAGE 7 REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: 14 October 2013 Requested By: Scott n_ Living%ton Department: Report: Resolution: Ordinance: Exhibit: Proposed, Revised Enhancement Grant Program Guidelines Exhibit: Pages from the City of La Porte's Strategic Plan for 2013 - 2017 Exhibit: Budget Source of Funds: General Fund Account Number: 015-9892-993 Amount Budgeted: 5200,000 Amount Requested: IMA1000 n,orP Budgeted Item: YES NO SUMMARY & RECOMMENDATIONS In the Strategic Plan for 2013 - 2017, City Council expressed an interest in re -developing and eliminating blight on both Broadway and SH 146. One tool that could be used to achieve this goal is expanding the Enhancement Grant Program beyond the borders of Main Street to include Broadway and SH 146. During the Board's most recent meeting, staff received direction to revise the current program application and guidelines and bring the amended documents back for review and discussion by the Board. While revising the Enhancement Grant Program Guidelines, staff noted that enhancement grant applicants must complete all work described in the application within one (1) year from the date the grant is approved, unless an extension is requested and accepted by the Enhancement Grant Evaluation Committee (EGEC). Of the four (4) outstanding enhancement grant commitments, two (2) of them, which are marked with an asterisk (*), have passed the deadline for their enhancement grant project without making a request for, or receiving, an extension. Enhancement Grant Applicant Grant S Offered Deadline for Completion Follis Construction $25,000 December 13, 2012 Paskey, Inc. $25,000 March 15, 2013 Entrust Professional Insurance Company $17,611 January 21, 2014 Stepping Stone Funeral Home S 1,065.10 February 26, 2014 Staff continues to promote the Enhancement Grant Program to the businesses on Main Street. Mr. Jaime Suarez, the new owner and chief chef of Ogarrios Restaurant, is planning to submit an enhancement grant project for the 4B Board's approval on November 11th. During the course of this enhancement grant discussion, staff will also engage the owners of the large retail shopping center on the northeast corner of Broadway and Fairmont Parkway. Staff's Proposal for Revising and Expanding the Enhancement Grant Program: In light of the City's Strategic Plan and the need for re -development and the elimination of blight along Broadway, at this time, staff requests that the 4B Board consider revising and expanding the Enhancement Grant Program as follows: • Request City Council to amend the FY 2013-2014 Budget to add $100,000 to account 9015- 9892-993 for enhancement grant projects on Broadway. • Expand the enhancement grant program to include the properties outlined in black hatch marks on the map below. • Change the name of the program to the "La Porte Enhancement Grant Program" to reflect the change in the scope and limits of the project to include properties/businesses on Broadway. • Recognize that a project with the owners of the retail shopping centers on the northeast and southeast corners of Broadway and Fairmont Parkway would be too large for an enhancement grant project, and, therefore, would be better suited for an incentive grant outside the enhancement grant program. • Please reserve an open mind about further expanding the geographical boundaries of the "La Porte Enhancement Grant Program" to include other areas of La Porte, including, but not limited to, SH 146 in years to come. Staff's Proposal for Further Implementing the Current Enhancement Grant Program (items to be completed regardless of whether the program itself is expanded to include Broadway): • Provide Follis Construction and Paskey, Inc. with 90 days written notice to request an extension, submit proof of completed enhancement grant projects, and make a final presentation to the 4B Board for project reimbursement. • Continue discussions with Jaime Suarez of Ogarrio's Restaurant and encourage him to move ahead with submitting an Enhancement Grant Application for his business. • Start a new discussion with the two (2) owners of the large retail shopping centers on the northeast corner of Broadway and Fairmont Parkway. Note: Based upon the magnitude of this large shopping center, these projects would be too large to be included in the Enhancement Grant Program. • Another discussion may also ensue with the owner of the shopping center on the southeast corner of Fairmont Parkway and Broadway. Again, based upon the magnitude of this large shopping center, this project would likely be too large to be included in the Enhancement Grant Program. Action Required by the La Porte Development Corporation Board: Consider approval or other action for moving forward with the items identified for further implementing the current Enhancement Grant Program. 2. Consider approval or other action to rename the enhancement grant program as the "La Porte Enhancement Grant Program," expand the boundaries of the program to include the area shown on the proposed map herein, and request an amendment to the FY 2013-2014 Budget which adds $100,000 to the La Porte Enhancement Grant Program for new enhancement grant projects in the newly expanded portion of the "La Porte Enhancement Grant Program." Approved for the La Porte Development Corporation Aeenda Corby D. Alexander, City Manager Date I r °r 11 II,,,,,,,,, II I r�m' r 0a 46 LA PORTE ENHANCEMENT GRANT PROGRAM The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development Corporation, offers matching grants to businesses which are located in the La Porte Enhancement Grant District. A map of the La Porte Enhancement Grant District is provided in the full explanation of the program. Eligible improvements of the EGP include facade renovation, beautification projects, and new awnings, canopies, porches, and signage. A single owner of multiple properties may apply for grant funds for each property owned, but each matching grant must be for more than $2,500 and less than $25,000 per property in a three (3) year period. Each program application will be evaluated on a case-by-case basis. Interested business nwnarc ara walrnma to rmmnlata tha Pnclosed application form. Please deliver appli Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway Please contact Scott D. Livingston at livingstons@laportetx.gov or 281 /470-5016, if you have any questions about the La Porte Enhancement Grant Program. Sincerely, LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE: 1 I r °r 11 II,,,,,,,,, II I r�M, r Scott D. Livingston Economic Development Coordinator City of La Porte La Porte Enhancement Grant Program The La Porte Enhancement Grant Program provides matching funds to enhance and/or beautify businesses in the La Porte Enhancement Grant District as outlined in the light/dark green shaded areas and the areas marked with the black hatch marks in the map below. ANrPROGRAM PAGE: 2 I 1 °r 11 II,,,,,,,,, II I I�M' r ELIGIBLE PROJECTS Business owners may be eligible for a reimbursement grant of funds used to enhance and/or beautify their businesses. The following types of projects are eligible for reimbursement grants: • Fagade Rehabilitation/Enhancement This includes work done on existing structures, such as removing non- historic/added facades, re -pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick, replacing windows, restoring transom windows, repairing facades, etc. • New Awnings, Canopies, Porches® Parking Lots m and Signage This includes replacing, adding, or repairing awnings, canopies, porches parking lots, and signs. Signs may include signboards, projecting signs, pedestrian signage, window signs, hanging signs, and awning/canopy signs. • Beautification Projects This may include public art, landscaping, and other beautification projects as approved by the Enhancement Grant Evaluation Committee (EGEC). PROGRAM GUIDELINES 1. Grant funds are available only for exterior work on commercial property and building facades that are visible from public streets in the La Porte Enhancement Grant District. 2. Grants will be processed and considered for award on a first-come, first-served basis until funds are depleted or until the program ends, whichever comes first. LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE: 3 Deleted: <#>In general, grants offered to businesses on Main Street are intended to support project to renovate or convert existing structures to their original historic condition. ¶ I r °r 11 II,,,,,,,,, II I r�M, r 3. Grants will not be awarded for work that has already been started or completed, or for work that is covered by insurance. If desired work is above and beyond what insurance will pay, and is, therefore, considered an upgrade and enhancement in the opinion of the EGEC, it may be eligible for grant funds. 4. Grants will not be awarded to any Applicant that owes any delinquent indebtedness" to the City of La Porte or the La Porte Development Corporation. *`Delinquent Indebtedness "shall mean any indebtedness due and owing to the City of La Porte or the La Porte Development Corporation, including but not limited to, ad valorem taxes on real and personal property, which property is in fact owned by and is legally subject to taxation, whether or not the same may have been properly rendered to the tax assessor -collector by any person. Such term shall also include, but not be limited to, charges for penalties, interest and costs on any such ad valorem taxes, charges for water, sewer, garbage and other services rendered or goods furnished by the City of La Porte or the La Porte Development Corporation to any person, and any other manner of indebtedness to the City of La 5. Each grant will be awarded on a reimbursement basis once completed work has been verified by the EGEC to be compliant with the plans proposed in the approved application. Any deviation from the approved project may result in the total or partial withdrawal of the grant. 6. Each enhancement grant application will be subject to review by the EGEC, and approval from the La Porte Economic Development Corporation. The review criteria include the following: The project demonstrates a significant improvement over the existing situation, The project will add to the beautification of Main Street and/or Broadway, The project will enhance Main Street and/or Broadway's appeal to new businesses and visitors, The project will complement the surrounding buildings, and The project will add value to the City of La Porte. LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE: 4 I r °r 11 II,,,,,,,,, II I r�M, r 7. Grant applications and awards may be made in any of the reimbursable activities described above and may be combined for any single property or project. 8. An applicant is defined as an owner, tenant, or combination thereof, who occupies space in an eligible property within the La Porte Enhancement Grant District. A single owner of multiple properties may apply for grant funds for each property owned, but the matching grant must be for more than $2,500 and less than $25,000 per property in a three (3) year period. APPLICATION PROCESS 1. Determine eligibility: Discuss project plans with the Economic Development Coordinator, and the Coordinator will set up a pre -development meeting with the EGEC. 2. Complete the application and sign the agreement form. Each grant application must include the following: a. A scale drawing by the project architect or design professional of all the work to be completed. b. Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will enable the EGEC to envision the finished project. c. Three (3) itemized work estimates on all project work from contractors or project architects. Self -contracted work will be reimbursed for actual legitimate expenses, excluding labor. d. Photographs of the building's exterior. The Applicant shall be required to provide before and after photographs of the building before the reimbursement grant can be awarded. For the initial application, "before" photographs will suffice, but "after" photographs of the completed project must be submitted before the grant may be considered for reimbursement. 3. Return the completed application form, with all applicable items, to: Scott D. Livingston Economic Development Coordinator NHANCE:ME:NrGRAN rPROGRAM City of La Porte PAGE: 604 W. Fairmont Parkway I r °r 11 II,,,,,,,,, II I r�M, r 4. The application will undergo an approval process, which includes but is not limited to the following: a. Each project must meet current building standards and codes, as well as building permit requirements. b. The EGEC will only consider applications that have been properly and fully completed, and which contain all information requested in the application and/or by the committee. c. All itemized work estimates submitted by the Applicant must be dated no earlier than ninety (90) days prior to the Application request. Bids shall be submitted on the contractor's or project architect's letterhead and shall contain the contractor's name, address, and telephone number and shall itemize the bid in a manner that allows the EGEC to determine the bid components and authenticity of the bid. d. Applications receiving approval by the EGEC shall commence construction described in the application within ninety (90) days from the date that the enhancement grant is approved. Each Applicant must complete the construction described in the Application within one (1) year from the date that the grant is approved. If the Applicant cannot meet this timeline, then the Applicant may submit a written request for an extension of the commencement date or completion date provided the extension request is made prior to the ninety (90) day or one (1) year time limit. The EGEC shall not be obligated to grant an extension, but it may do so for good cause determined solely by the members of the Committee. The extensions, if granted, shall be for the term and for the conditions determined exclusively by the EGEC. Denial of an extension request may not be appealed. LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE: 6 I r °r 11 II,,,,,,,,, II I r�M, r e. As a condition of this grant Application, the Applicant consents, and shall allow, the EGEC to request city inspections to determine that the grant, if awarded, will not be used for construction on any building that is not in compliance with the City Municipal Codes and Ordinances that are applicable to the construction contemplated in the application. f. The EGEC and EDC shall have sole discretion in awarding grants. They shall award grants considering the amount requested, grant funds available, the guidelines of the grant program, condition of the building in which the grant funds will be used, economic impact, other grant requests, the type and nature of the construction, and the proposed construction results considering the grant program. g. No Applicant has a proprietary right to receive grant funds. The EGEC shall consider any application within its discretionary authority to determine what grant amount would be in the best interest of the grant program. h. The Applicant shall be required to furnish "before" photographs of the building's exterior, and any other site locations that are included as part of the application request. The applicant shall also provide "after" photographs once the construction has been completed, as a condition of final grant disbursement. i. The EGEC has the final discretion with regard to funding and reserves the right to recommend modifications or reject any project or elements of any project. 5. Reimbursement. When the entire enhancement grant project has been completed, the Applicant shall present the Economic Development Office with the following: a. Copies of all paid invoices, including copies of cancelled checks and/or credit card receipts for a single payment reimbursement of the approved funding, and LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE: 7 II I 11 1�M, b. Photographs of all completed work. 6. When the project has been reviewed and signed off by the EGEC and their recommendations have been presented and approved by the EDC, a reimbursement check will be issued. LA PORTE: ENHANCEMENT GRANT PROGRAM PAGE 8 I r °r 11 II,,,,,,,,, II I r�M' r La Porte Enhancement Grant Application Please print clearly. Please submit a completed application to: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Pkwy La Porte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE Applicant Name Business Name Physical Business Address Business Owner (if different from applicant) Mailing Address Contact Phone Email Address TYPE OF WORK (check all that apply): ❑ Fagade ❑Awnings/Signage/Canopies/Porches/Parkin Rehabilitation/Enhancement g Lot ❑ Other (describe): ❑ Beautification DETAILS OF PLANNED IMPROVEMENTS (attach additional pages ifnecessary): ENHANCEMENT GRANT APPLICATION PAGE: 1 I r °r 11 II,,,,,,,,, II I r�M' r Please list the name of each Contractor and/or Project Architect and the Total Amount of each bid. Please, also, attach the original proposals and work estimates: CONTRACTOR/PROJECT ARCHITECT TOTAL AMOUNT 1. $ 2. $ 3. $ 4. $ 5. $ BUDGET DETAIL PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIED TOTAL Fa ade Rehab $ $ $ Awnings/Signage/Canopies/Porches/Parking Lots $ $ $ Beautification $ $ $ Other (list): $ $ $ Other (list): $ $ $ TOTALS $ $ $ Total estimated cost of proposed project: Amount requested (up to 50% of total cost, $2,500 to $25,000): Please attach color samples, model numbers (for windows, doors, etc.), photos, scale drawing, and other illustrations of work to be completed. Please include as much detail as possible. Your signature on this application certifies that you understand and agree with the following statements: I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I intend to use these grant funds for the renovation projects, as spelled out in the application. I have not received, nor will I receive insurance monies for this revitalization project OR I have disclosed all pertinent insurance information. I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant funds. If I am awarded a reimbursement grant for fa4ade, awning, signage, beautification, or other approved work, alterations should not be made within five (5) years from construction; otherwise I may be required to reimburse the La Porte Economic Development Corporation immediately for the full amount of the grant. 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