Loading...
HomeMy WebLinkAbout12-09-13 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN,PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, BOARD MEMBERRANDY WOODARD, BOARD MEMBER JAY MARTIN, 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 December 9,2013, at the City Hall Council Chambers, 604 West Fairmont Parkway, LaPorte, Texas, at 5:00p.m. to consider the followingitems 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 Boardand will be enacted by one motion. There will be no separate discussion of these items unless a Board memberrequests anitem be removed and considered separately.) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on November 11,2013–P. Fogarty 3.AUTHORIZATIONS (a) Consider approval or other action to approve moving forward with an incentive grant request in the amount no 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 4.SET DATE FOR NEXT MEETING S. Livingston – 5.STAFF REPORTS (a) Receive Financial Report –M. Dolby 6.BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognitionof 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 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 December 9, 2013, agenda of items to be considered by the Board of the La Porte Development Corporation was posted on the City Hall bulletin Boardon December 3,2013. December 9, 2013, La Porte Development Corporation Agenda RICHARD WARREN,PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, BOARD MEMBERRANDY WOODARD,BOARDMEMBER CHUCK ENGELKEN, BOARD MEMBERNANCY OJEDA, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF NOVEMBER 11, 2013 November11,2013, 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 Vice-President Cooksleycalled the meeting to order at 5:00p.m.The following members of the LaPorte Development Corporation Board were present: Board membersEngelken, Woodard, Clausen, andOjeda.Absent: President Warren and Board member Martin. Staff Present:Corby Alexander,Traci Leach, Patrice Fogarty,Scott Livingston, Michael Dolbyand Assistant City Attorney ClarkAskins. ( 2. CONSENT AGENDA All consent agenda items are considered routine by the La Porte Development Corporation Boardand will be enacted by one motion. There will be no separate discussion of these items unless a Board memberrequests anitem be removed and considered separately.) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on October 14, 2013 –P. Fogarty Board memberEngelkenmoved to approve the minutes as presented.Boardmember Clausen seconded. Ayes: Vice-President Cooksley, Boardmembers Clausen, Woodard, Engelken and Ojeda Nays: None Absent:President Warren and Board member Martin 3.DISCUSSION OR OTHER ACTION (a)Receive reporton the International Council of Shopping Centers (ICSC) Deal Making Conference –S. Livingston Retail Development Strategy Economic Development Coordinator Scott Livingston presented an in depth reportfrom the International Council of Shopping Centers (ICSC) Deal Making Conference that was held November6-8, 2013, in Dallas, Texas.He indicated he made many contacts and feels the conference is very beneficial. City Manager Corby Alexander and Board member Randy Woodard attended, as well. Board member Ojeda commented the City is miles ahead of where it was last year,and thanked EDC Scott Livingston for his hard work. Page 1of 2 November 11, 2013, La Porte Development Corporation Board Minutes 4.SET DATE FOR NEXT MEETING S. Livingston – Board members set the next meeting date for December 9, 2013,at 5:00 p.m. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of 5. community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. There were no comments. 6.ADJOURN There being no further business, at 5:50p.m.Board member Engelken moved to adjourn the MOTION PASSED. meeting.Board member Woodardseconded. Ayes: Vice-President Cooksley, Board members Clausen, Woodard, Engelken, andOjeda Nays: None Absent:President Warren and Board member Martin Respectfully submitted, ____________________________________ Patrice Fogarty,City Secretary th Passed and approved on this9dayofDecember, 2013. ____________________________________ President RichardWarren Page 2of 2 November 11, 2013, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Budget Agenda Date Requested: 9December2013 Source of Funds: Source of Funds:4B Board Requested By:Scott D. Livingston Account Number: Account Number: 038 Department: Administration/Economic Development Amount Budgeted: Amount Budgeted: N/A Report: Resolution:Ordinance: Amount Requested: Amount Requested:$15,000 Exhibit:Project Facts and Figures Budgeted Item:YES NO Budgeted Item:YES NO Exhibit: Richard Industrial Group Flyer Exhibit: Public Hearing Notice SUMMARY & RECOMMENDATION The Richard Industrial Group(RIG)(www.rig-rds.com) is a full-service engineering, procurement, and constructionfirm that has completed projects for Chevron Phillips, LLC, Enterprise Product Partners, LP, ExxonMobil, Firestone Polymers, Flint Hills Resources, Hess, Honeywell, INEOS Phenol, Motiva Enterprises, LLC, Panther Companies, Sunoco Logistics, Total, and Valero to name a few. With a reputation for integrity and reliability, the Richard Industrial Group offerssome of the industry’s top talent through a family of four companies that capture synergies and integrateservices across the full spectrum of any project. Baton Rouge The Richard Industrial Group(RIG)currently has offices in , LA, and three (West) HoustonBeaumont,Huffman locations in Texas: ,and . Due tothe investment and growth of the companies in the area surrounding the Houston Ship Channel, RIGwanted to open a new office in the ship channel area.RIG recently signeda3 year lease for 7,500square feet with the first right of refusal on an additional 3,500 square feet of office spaceat 1200 SH 146 in La Porte, Texas.The initial space will house a new engineering office to establish a presence on the ship channel.Over the next 2 years, while the engineering office is working to develop market share in the area, RIG will search for undeveloped land sites in the Bayport Industrial District upon which to construct a permanent, brand new facility in year #3. \[Note: More information is provided about RIG’s future plans beyond year #3 after the Incentive Request at the conclusion of this summary.\] 90full-time However, over the next 3 years, RIG plans to relocate and/or hire employees with full (medical, dental, and 401k) benefits: By the Endof 2013RelocatedNew HiresTotal Managers 268 Admin 022 Engineers 156 Designers 5710 Total Employmentby the End of 2013:26 By the End of 2014New HiresTotal Managers 110 Admin 12 Engineers 17 Designers 1747 Total Employment by the End of 2014:66 By the End of 2015 New HiresTotal Managers 010 Admin 13 Engineers 310 Designers 20 67 Total Employment by the Endof 2015:90 In addition to full benefits (medical, dental, and 401k), the average, annual salary for each category of employees is as follows: Managers $250,000 Admin $ 55,000 Engineers $160,000 Designers $200,000 In openingthe new engineering office in La Porte, RIG estimates that it spent: $160,000 inbuilding improvements, infrastructure/utility installation, and furniture, $120,000 in hiring/human resource expensesincluding signing bonuses, and $340,000 in computers and software. Other than fresh paint in the lease space and carpet cleaning, the owner of the 1200 Building on SH 146 did not offerRIG any allowance for tenant improvements. Incentive Grant Request In order to facilitate the opening of theirnew office in La Porte, RIGrequests a cash incentive $15,000 grant in the amount of .In order to facilitate the opening of RIG’s new office inLa 90 Porte and support the creation of new full-time jobs in La Porte, staff recommends that the 4B $15,000 Board award RIGa cash incentive grant in the amount of . Per the Board’s direction on 23 September 2013, staff scheduled a public hearing to discuss this incentive grant request on 9 December 2013. Public notice was published on Thursday, October rd 3, which satisfiesthe 60-day petition period. No qualified petition was receivedin opposition to this proposed incentive award. This project will require that the Richard Industrial Group, Inc. enter into a performance agreement with the La Porte Development Corporation, the terms of which would establish minimum thresholds for key performance indicators such as the 75 requirement to open a new office and re-locate and/or hire at least full-time employees in La Porte. RIG’s Future Plans The new, proposed facilityto be constructed in year #3will include engineering office space for up to 150 personnel including designers, admin, project managers, managers, accounting, project controls, human resources,etc.The new facility will also include space for RIG’s automation engineering/fabrication group, whichwill have office space for 35 +/-employees (designers, project managers, procurement, admin and managers),plus 45+/-fabrication/shop personnel.It will also include warehouse, fabrication and testingfacilities.The testing facility will be designed for clients who are taking delivery of new automation buildings to set up and test the buildings/instruments over a several week period, bringing in testing personnel from other communities. The new, proposed facility will also include facilities for Richard’sconstruction group with office space for 50+/-managers, human resources, admin, construction managers, accounting, safety, project controls, etc.Warehouse space will be for storage of tools, consumables and small equipment with 5-10 employees to control inventory. Alarge storage area will also be provided for large equipment parking and some material. The number of construction field personnel will fluctuate with workload. Action Required by the La Porte Development Corporation Board: Consider approval or other action to approve moving forward with an incentive grant request in $15,000 the amount not to exceed to the Richard Industrial Group to open a new office and re- 75 locate and/or hire at least full-time employees in La Porte. Approved for the La Porte Development Corporation Agenda Corby D. Alexander,City ManagerDate RICHARD INDUSTRIAL GROUP:FACTS AND FIGURES Assumptions: 90 Relocate and/or hire approximately full-time employees with full benefits. Pay average salaries for employees as follows: $250,000 Managers $ 55,000 Admin $160,000 Engineers $200,000 Designers $160,000 RIG will spend in building improvements, infrastructureinstallation, and furniture, $120,000 RIG will spend in hiring/human resource expensesincluding signing bonuses, $340,000 RIG will spend in computers and software, $400,000 RIG will own roughly ($340,000 plus $60,000 in furniture and other property) of taxable business personal property, RIG will spend the first two years looking for a site upon which to construct a new, permanent facility in year #3. Real andBusiness Personal Property Tax Projections: $2,840 Total annual taxes paid to the City of La Porte over 3 years: ($400,000/100 x 0.71 = $2,840) Primary Job Opportunities for La Porte Residents: 82 RIG willoffer approximately new full-time, well paid positions with benefits to work in their engineering office in La Porte. Other Benefits of the Project: Improvement of an old suburban office in town, Opportunity to forge a new relationship with a growing company that may builda new, permanent facility, and further expand in La Porte after 3 years, Opportunity to attract other quality tenants/businesses to both the 1200 Building and the City of La Porte. This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2012-13FY 2011-12 Unaudited Beginning Fund Balance 9/302,196,9352,196,9352,123,808 Plus Year to Date Revenues: 1/2 Cent Sales Tax1,515,9902,037,8231,948,484 Transfers-In--154,914 Interest Income4,4404,5503,844 Total Revenues1,520,4302,042,3732,107,242 Equals Total Resources3,717,3654,239,3084,231,050 Less Year to Date Expenditures: Payroll47,02653,72656,866 Supplies1,5251,7302,734 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)150,376551,19187,377 Capital Outlay--23,900 * Debt Service Transfer375,889410,061660,338 Capital Projects Transfers**684,583695,000970,000 Total Expenditures1,259,3991,711,7081,801,215 Estimated Year to Date Fund Balance$2,457,966$2,527,600$2,429,835 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. **Capital Project Transfer is for the 3rd Street Parking Lot Project.