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Home My WebLink About03-24-14 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 March 24,2014, 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.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 February 10,2014–P. Fogarty (b) Consider approval or other action authorizing the President of the La Porte Development Corporation Board to execute a development agreement with Richard Industrial Group –S. Livingston 3.DISCUSSION OR OTHER ACTION (a) Receive presentation regarding Workforce Development Programs –S. Livingston (b) Discussion regarding Workforce Development Programs–S. Livingston 4.PUBLIC HEARING AND ASSOCIATED MATTERS (a) Public Hearing to receive comments regardingproposed incentive grant in an amount not to exceed $40,000.00 to Rob Johnson Interests for a new retail development as a project of the La Porte Development Corporation S. Livingston – (b) Consider approval or other action regarding proposed incentive grant in an amount not to exceed $40,000.00 to Rob Johnson Interests for a new retail development as aproject of the La Porte Development Corporation S. Livingston – 5.SET DATE FOR NEXT MEETING S. Livingston – 6.STAFF REPORTS (a) ReceiveFinancial Report –M. Dolby 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. 8.ADJOURN 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. March 24, 2014, La Porte Development Corporation Agenda 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 PatriceFogarty, City Secretary, at 281.470.5019. CERTIFICATION I certify that a copy of the March 24, 2014, agenda of items to be considered by the Board of the La Porte Development Corporation was posted on the City Hall bulletin Boardon March 18, 2014. March 24, 2014, La Porte Development Corporation Agenda RICHARD WARREN,PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICE PRESIDENT RANDY WOODARD,BOARDMEMBER CHUCK ENGELKEN, BOARD MEMBERNANCY OJEDA, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF FEBRUARY10, 2014 February10,2014, The City of La Porte Development Corporation Board met on at 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 LaPorte Development Corporation Board were present: Board membersEngelken, Woodard, Martin, Clausen, andOjeda. Absent: Vice President Cooksley. Staff Present:Corby Alexander,Patrice Fogarty,Scott LivingstonandAssistant City Attorney Clark Askins. ( 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 January 13, 2014–P. Fogarty Board memberClausenmoved to approve the minutes as presented.Boardmember Engelken seconded. Ayes: President Warren, Boardmembers Clausen, Martin, Engelken OjedaandWoodard Nays: None Absent:Vice-President Cooksley 3.AUTHORIZATIONS (a) Consider approval or other action authorizing staff to reimburse Claudia Cox on behalf of Entrust Professional Insurance in the amount of $17,611.00 for completion of an enhancement grant project –S. Livingston Economic Development Coordinator Scott Livingston presented a summary.Claudia Cox showed before and after photos of the building. President Warren commented the outcome of the enhancement grant project was nicely completed. Page 1of 3 February 10, 2014, La Porte Development Corporation Board Minutes Board memberEngelkenmoved toauthorize staff to reimburse Claudia Cox on behalf of Entrust Professional Insurance in the amount of $17,611.00 for completion of an enhancement grant project.Boardmember Clausenseconded. Ayes: President Warren, Boardmembers Clausen, Martin, Engelken Ojedaand Woodard Nays: None Absent:Vice-President Cooksley 4.PRESENTATION (a) Receive presentation regarding proposed revisions to the monthly Financial Report –S. Livingston Economic Development Coordinator Scott Livingston presented a summary and provided proposed information that will be added to the Financial Report next month. Board member Ojeda questioned when will the Board get a decision regarding the location of Project Nebulaas to whether it will bein Texas or Louisiana.Economic Development Coordinator Scott Livingston responded possibly by the summer of 2014. Board member Ojeda questioned why the $15,000.00 had not been paid to the Richard Industrial Group after the Board approved the commitment. Mr. Livingston responded staff was directed to include some stipulations and conditions in the Developer Agreement that were very specific in terms of reporting mechanisms whichhas delayed the process. Mr. Livingston advised the item will come back to the upcoming meeting in March. Board member Ojeda requested an item be added to the upcoming agenda regarding Workforce Training Incentives. 5.SET DATE FOR NEXT MEETING S. Livingston – Board members set the next meeting date for March24, 2014,at 5:00 p.m. STAFF REPORTS 6. (a)Receive Financial Report –M. Dolby Finance Director Michael Dolby presented the Financial Report. Board member Engelken questioned if the sales tax issue with Monument Inn has been solved. Finance Director Michael Dolby responded the city has made arrangements to pay the taxes back over a five year period. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community 7. members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. There were no comments. 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. There was no executive session. Page 2of 3 February 10, 2014, La Porte Development Corporation Board Minutes 9.RECONVENE into regular session and consider action, if any, on items discussed in executive session. There was no executive session. 10.ADJOURN There being no further business, at 5:33p.m.Board member Engelkenmoved to adjournthe MOTION PASSED. meeting.Board member Ojedaseconded. Ayes: President Warren, Boardmembers Clausen, Martin, Engelken OjedaandWoodard Nays: None Absent:Vice President Cooksley Respectfully submitted, ____________________________________ Patrice Fogarty,City Secretary th Passed and approved on this24dayofMarch,2014. ____________________________________ President RichardWarren Page 3of 3 February 10, 2014, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested:24March 2014 Source of Funds:4B Board Requested By:Scott D. Livingston Account Number: 038 Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution:Ordinance: Amount Requested:$15,000 Exhibit:Development Agreement Budgeted Item:YESNO Exhibit: Richard Industrial Group Flyer Exhibit: Exhibit: SUMMARY & RECOMMENDATION In order to facilitate the opening of their new office in La Porte, RIGrequesteda cash incentive $15,000 grant in the amount of on 23 September 2013.Public notice of a 60-day petition period and a public hearing was published, and the public hearing was held on 9 December 2013. 90 In order to attract RIG’s new office to La Porte and support the creation of up to new full- time jobs in La Porte, both the 4B Board and the La Porte City Council voted to award RIG a $15,000 cash incentive grant in the amount of on 9 December 2013to open a new officefor at 375 least a period of yearsand re-locate and/or hire at least full-time employees in La Porte. Development Agreement Details A development agreement has been drafted,which includes the following criteria and conditions for performance: Equal installments of $5,000 per year over a three year period, per the terms of the development agreement will be made. In order to receive each, full annual payment of $5,000, the Richard Industrial Group will need to submit proof to the LPDC that they have retained and/or hired at least the full time employees minimum number of (FTEs) for that given year, according to the targets they provided, and which are also included in the development agreement, to the 4B Board and Council. RIG must provide the LPDC with objective, annual reports to prove the minimum number of FTEs were retained and/or hired each year.Ideally, RIG will simply provide the LPDC with information which they are already generating and providing to the State C3 Report 941 Report of Texas called a and/or the US Government called a . RIG must provide the LPDC with signed and notarized documentation that each of the full time employees reported to work at the office in La Porte, in fact work at the office in La Porte rather thansome other office. Copy of a signed and executed lease agreement for a minimum of 7,500 sf of space for a minimum term of three (3) years at 1200 SH 146, La Porte, Texas77571, The sum of $15,000 is expected to be paid in three (3) annual payments, each in the amount of $5,000 when the following conditions have been met each year: Continued occupancy of their lease in a minimum of 7,500 sf of space at 1200 SH o 146, La Porte, Texas77571, Annual submission of copies of the 941 and C3 Reports, either with annually o compiled data from each report or copies of the separate quarterly reports, Annual employment targets would be for each of the following minimum o thresholds: By 10/1/14--new, cumulative 20 minimum FTEs required, By 10/1/15--new, cumulative 40 minimum FTEs required, and By 10/1/16--new, cumulative 75 minimum FTEs required. If RIG doesn’t meet their FTE targets, then they won’t receive a payment of $5,000 for that year. Date of annual report to be made 1 October of each year If they break their lease, but pay out their lease to the owner of the building, build a facility in La Porte, and simply relocate their FTEs to another building in La Porte, then we’ll continue to make annual payments to RIG per the terms of this agreement until this agreement terminates at the end of the original three (3) year term. 24 March, 2014 Date of execution: January 2017 Date of termination not to exceed: Staff recommends that the Board vote to authorize Board President Richard Warren to sign and execute the enclosed development agreement with the Richard Industrial Group. Action Required by the La Porte Development Corporation Board: Consider approval or other action to authorize Board President Richard Warren to sign and execute the enclosed development agreement with the Richard Industrial Group. Approved for the La Porte Development CorporationAgenda Corby D. Alexander,City ManagerDate Please Join us at our Open HouseFrom Concept to Completion When:March 20, 201410am -2pmRichard Industrial Group (RIG) provides Engineering, Construction, Pipe Fabrication, Where: Richard Industrial Group and Electrical/Automation services. 1200 Hwy 146, Suite 200 With over 30 years of experience, La Porte, TX 77571 engineering offices and projects located throughout the Gulf Coast, Richard has the Catfish on Wheelswill be serving fried fish, experience and expertise to safely deliver, shrimp and chicken between 11:00 -1:00 on-time, superior and predictable results even in the most challenging environments. Bring your business cards for door prize drawings to include Yeti Coolers, From full spectrum engineering and Academy gift cards and more! construction projects to routine maintenance Please email RSVP to: work, Richard is ready and capable of Debbie.Kraemer@rig-rds.com meeting your exact specifications safely, on time and under budget. or CLICK HEREto fill out your RSVP form online. Richard Industrial Group| 1200 Hwy 146 Suite 200 La Porte, TX 77571 | 281.941.4522 Rusty Sims General Manager -East Houston Operations -Richard Design Services, Inc. REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested:24March 2014 Source of Funds:4B Board Requested By:Scott D. Livingston Account Number: N/A Department: Administration/Economic Development Amount Budgeted: N/A Report: Resolution:Ordinance: Amount Requested:N/A Exhibit:San Jacinto CollegePresentation Budgeted Item:YES NO Exhibit: SUMMARY & RECOMMENDATION Dr. JD Taliaferro,Director ofApplied Technologies & Tradesfor San Jacinto College, is prepared tonight to give the 4B Board a presentation regarding workforce development programs and curricula at San Jacinto College to address both the current and anticipated future worker shortage in many of the industries of eastern Harris County and the area surrounding the Houston Ship Channel. Please note that the enclosed presentation is one (1) year old. However, Dr. Taliaferro will deliver a similar, but updated presentation to the 4B Boardduring themeeting. Action Required by the La Porte Development Corporation Board: No action necessary. Approved for the La Porte Development CorporationAgenda Corby D. Alexander,City ManagerDate San Jacinto College Applied Technologies & Trades Regional Barriers and Constraints to Economic Development*: 2011 Comprehensive Economic Development Strategy Establishing Training Centers and Academies Job Training and Workforce Development: Gulf Coast Economic Development District, July, 2009. labor shortages High school graduation rates - Addressing skilled - According to the 2009 * Labor Shortages New Program Development - Enrollment Courses Addressing Skilled Contract Training - Open OSHA (New Hire Orientation, - Process Operations for Non Analytical Troubleshooting Machining & Welding for Customized Training Includes: Enrollment Courses/Contract Training Process Equipment Lab Safety, etc) Engineers Operators Delta V Computer Numerical Controlled Programmable Logic Controller Industrial Automation Technician Destructive Testing (NDT) Troubleshooting Electrical Process Troubleshooting Systems and Equipment (CNC) Lathes and Mills Process Operations (PLC) Programming Arc/Flash NFP70E Laser Alignment - Open - Non Introduction to craft skills: Scaffolding and Rigging, Pipefitting, etal New Program Development M Welding, Basic Electrical and Sheet Occupational math and blueprint reading Introduction to hand and power tools General workplace skills 80 hour training that includes: Basic Safety Helper Plus Program Plus Establishing Training Centers and Proposed Center for Applied Technologies and Trades Working with Pipeline Research Council International Offer Certified Occupational Safety Specialist program Academies Partners with the American Petroleum Institute Maritime & Technical Training Center REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested:24March 2014 Source of Funds:4B Board Requested By:Scott D. Livingston Account Number: N/A Department: Economic Development Amount Budgeted: N/A Report: Resolution:Ordinance: Amount Requested:N/A Exhibit:EHCMA Brochure Budgeted Item:YES NO Exhibit: Careers in Manufacturing, EHCMA Presentation Exhibit: BAHEP News Article________________________ Exhibit: _Port Region Investment Survey_______________ SUMMARY & RECOMMENDATION The following question has been raisedby a 4B Board memberand requested to be made part of this discussion regarding workforce development: “Are career awareness opportunities for LPISD students a legal/eligible expense of our Workforce Development budget. Also, is this something in which the 4B Board is interested in entertaining? Two examples are “Camp Invention”, a week long summer camp that follows STEM curriculum and introduces students to engineering and the Junior Achievement Organization's program called “Biz Town” that teaches entrepreneurship and city government issues.” --------------------------------------------------- Additionally, the intent of this agenda item is to foster an open discussion about “Workforce Development” that may include, but not be limited to, the followingtopics or perspectives: What is the status of “Workforce Development” in La Porte? What does La Porte (industry, citizens, students, etc.) need/want with respect to “Workforce Development”? Who is doing what in La Porte with respect to “Workforce Development”? What are other communities doing to support “Workforce Development”? What is the LPDC prepared to do to support “Workforce Development” in La Porte? How can the 4B Board support “Workforce Development” in La Porte? Usually, development corporations use workforce development/training funds as an incentive to either lure a new industry to town or encourage an existing industry to expand.The 4B Board may wish to consider using all or a portion of the funds committed to support “Workforce Development”: (1)Giveup front La Porte industries funds“”, with claw-back provisions through an executed development agreement, to re-train existing employees and/or train new employees, (2)Reimburse La Porte industries,with claw-back provisions through anexecuted development agreement,for the cost to re-train existing employees and/or train new employees, Other possibilities, which will require additional discussionand City Attorney approval,include: (3) Pay San Jacinto College directly to give “primary job training” to the employees of a company with which we have a Boardapproved development agreement, (4) Give funds to the San Jacinto College Education Foundation to give “primary job training” to company employees which have an approved development agreement, (Note: This option is very questionable.) (5) Give funds to the SanJacinto College Education Foundation to give “primary job training” todesignated citizens who qualify for, and are approved by the 4B Board, (Note: This option is very questionable.) (6) Partner with LPISD to offer CTE courses, whichqualify for dual credit from San Jacinto College. Since thesecourses are classified as “primary job training”at San Jacinto College, is there a legal way that the 4B Board could consider using funds to support these programs? (Note: This option is very questionable.) Action Required by the La Porte Development Corporation Board: No action necessary. Approved for the La Porte Development CorporationAgenda Corby D. Alexander,City ManagerDate REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March24, 2014Appropriation Requested By:Scott LivingstonSource of Funds: Department:Economic DevelopmentAcct Number: Report:Resolution: Ordinance: Amount Budgeted: Attachments:Public noticeRequested: Attachments: Project MaterialsBudgeted Item(s): YES NO Attachment: Development Agreement _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION Rob Johnson Interest (RJI) has beenpursuingandnegotiatingwithmultiple, retailprospectsto lease space in Phase #1 of the new, proposed retail development.Phase#1isplannedto encompass2.86acres,whilePhase#2isplannedtoencompass1.67acres.Mr.Johnsonplansto completePhase#1 in2014andPhase#2byeitherlate2014orearly 2015. In order to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with firewalls between the adjoining lease spaces.In order to keep the construction costs within limits that will still allow RJI to offer competitive and attractive lease rates to the prospective $40,000 national retail tenant, RJI isrequestinganadditional incentive in the amount of . On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60-day petition period and schedule a public hearing on March 24, 2014 to discuss the incentive grant request in $40,000 the amount of for Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Porte. Per the Board’s direction on 13 January 2014, staff scheduled a public hearing to discuss this incentive grant request on 24 March 2014, which satisfied the 60-day petition period. No qualified petition has been received. This project will require that Rob Johnson 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 receipt of a certificate of occupancy, a minimum capital investment, and a minimumrate of lease occupancy. All parties involved will have the opportunity to provide input on the performance agreement before it is completed. Thesubjectpropertyof both Phases #1 and #2 isonthetaxrollsfor$700,000,whichyields approximately$4,970(at$0.71/$100ofassessedvalue)annuallyintaxestotheCityofLa Porte. Oncedevelopmenthasbeencompleted on both phases,theestimatedtaxablevalueofthe newdevelopmentwill be$6,000,000to$8,000,000.Excludingsalestaxrevenue,theestimated annualtaxeswouldbe$42,600to$56,800.Takinganaverageofthetwo,iftheestimatedtaxable valueweretobe$7,000,000,theannualtaxeswouldbe$49,700.Therefore,theestimated $44,730 annualincreaseintaxesuponcompletionofthemulti-phaseprojectis.Assuming a total $106,000 incentive grant of ($66,000that has already been approved and development agreement $44,730 signedplus $40,000requested here) and new annual taxes ($49,700 -$4,970) of , the break- 2 years 4 months even point would be and. Staff is recommending that the Board approve designating this development incentive as a project of the Corporation and authorize the Board President to execute the attached development agreement. Theagreement would not be effective until the City Council officially takes action to affirm the Board’s project designation later this evening. A ction Required by Council: 1.Consider approval or other action to designate an incentive grant request in the amount not to $40,000 exceed to Rob Johnson Interests to construct a new retail strip center and attract new retail development as a project of the La Porte Development Corporation. 2.Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed development agreement with Rob Johnson Interest. Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander, CityManagerDate REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: March24, 2014Appropriation Requested By:Scott LivingstonSource of Funds: Department:Economic DevelopmentAcct Number: Report:Resolution: Ordinance: Amount Budgeted: Attachments:Public noticeRequested: Attachments: Project MaterialsBudgeted Item(s): YES NO Attachment: Development Agreement _____________________________________________________________________________________________ SUMMARY & RECOMMENDATION Rob Johnson Interest (RJI) has beenpursuingandnegotiatingwithmultiple, retailprospectsto lease space in Phase #1 of the new, proposed retail development.Phase#1isplannedto encompass2.86acres,whilePhase#2isplannedtoencompass1.67acres.Mr.Johnsonplansto completePhase#1 in2014andPhase#2byeitherlate2014orearly 2015. In order to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with firewalls between the adjoining lease spaces.In order to keep the construction costs within limits that will still allow RJI to offer competitive and attractive lease rates to the prospective $40,000 national retail tenant, RJI isrequestinganadditional incentive in the amount of . On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60-day petition period and schedule a public hearing on March 24, 2014 to discuss the incentive grant request in $40,000 the amount of for Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Porte. Per the Board’s direction on 13 January 2014, staff scheduled a public hearing to discuss this incentive grant request on 24 March 2014, which satisfied the 60-day petition period. No qualified petition has been received. This project will require that Rob Johnson 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 receipt of a certificate of occupancy, a minimum capital investment, and a minimumrate of lease occupancy. All parties involved will have the opportunity to provide input on the performance agreement before it is completed. Thesubjectpropertyof both Phases #1 and #2 isonthetaxrollsfor$700,000,whichyields approximately$4,970(at$0.71/$100ofassessedvalue)annuallyintaxestotheCityofLa Porte. Oncedevelopmenthasbeencompleted on both phases,theestimatedtaxablevalueofthe newdevelopmentwill be$6,000,000to$8,000,000.Excludingsalestaxrevenue,theestimated annualtaxeswouldbe$42,600to$56,800.Takinganaverageofthetwo,iftheestimatedtaxable valueweretobe$7,000,000,theannualtaxeswouldbe$49,700.Therefore,theestimated $44,730 annualincreaseintaxesuponcompletionofthemulti-phaseprojectis.Assuming a total $106,000 incentive grant of ($66,000that has already been approved and development agreement $44,730 signedplus $40,000requested here) and new annual taxes ($49,700 -$4,970) of , the break- 2 years 4 months even point would be and. Staff is recommending that the Board approve designating this development incentive as a project of the Corporation and authorize the Board President to execute the attached development agreement. Theagreement would not be effective until the City Council officially takes action to affirm the Board’s project designation later this evening. A ction Required by Council: 1.Consider approval or other action to designate an incentive grant request in the amount not to $40,000 exceed to Rob Johnson Interests to construct a new retail strip center and attract new retail development as a project of the La Porte Development Corporation. 2.Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed development agreement with Rob Johnson Interest. Approved for City Council Agenda ___________________________________________________________ Corby D. Alexander, CityManagerDate Project Rob Johnson’sFACTS AND FIGURES Assumptions: $6 - 8 million Total estimated, taxable value of both Phases #1 and 2: August 2014 Phase #1 will be substantially complete by . 2015 Phase #2 will begin by early . Current Property Value and Taxes $700,000 Current, taxable property value (based upon HCAD valuation): Total annual taxes currently paid to the City of La Porteat $0.71 per $100 of assessed $4,970 taxable value: Real, Business Personal Property Tax to be Received Annually: Totaltaxes to be paid tothe City of La Porte upon completion of both Phases #1 and 2 of $49,700 * the project,and an estimatedtotal taxable value of $7,000,000: Break-Even Point: $106,000$44,730 Assuming a total incentive grant of and new annual taxes of , the 2 years and 4 months break-even point would be . st ) Incentive: $ 66,000 Value of the First (1 Current, Additional Incentive Request: $ 40,000 Total Incentive to the Project: $106,000 + Break-Even Point: 2.37 years * * This sum does not consider the amount of new sales tax that the whole project will generate. + $106,000/($49,700-$4,970) = 2.37 years, or 2 years and 4 months This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2013-14FY 2012-13 Unaudited Beginning Fund Balance 9/30$2,768,155$2,768,155$2,196,935 Plus Year to Date Revenues: 1/2 Cent Sales Tax207,035363,022179,498 Interest Income1,5601,6761,659 Total Revenues208,595364,698181,157 Equals Total Resources2,976,7503,132,8532,378,092 Less Year to Date Expenditures: Payroll15,87221,30210,984 Supplies46696 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)20,50530,25428,763 Debt Service Transfer237,136316,182102,515 * Capital Projects Transfers19,25025,66731,250 ** Total Expenditures292,809393,474173,519 Estimated Year to Date Fund Balance as of 1/31/2014$2,683,941$2,739,379$2,204,573 Commitments Project Nebula$1,000,000 Intergulf125,000 Rob Johnson Interests106,000 Richard Industrial Group15,000 Debt Service Reserve948,545 $2,194,545 Adjusted Year to Date Fund Balance$544,834 Projection Through Year End Adjusted Year to Date Fund Balance$544,834 Plus: Estimated Sales Tax1,626,416 Less: Estimated Operational Costs(273,963) Less: Debt Service Transfers(632,363) Less: Capital Projects Transfers(151,333) Projected Year End Fund Balance$1,113,591 Sales tax revenues for Fiscal Year 2015 are estimated to be $2,029,227. (2% growth over current year) Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance District 23 Street Paving175,000-175,000 Façade Grants300,00063,959236,041 Total475,00063,959411,041 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. **Capital Project Transfer is for 1/2 of the Golf Course/Little Cedar Bayou Park Irrigation Sytstem.