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HomeMy WebLinkAbout04-14-14 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, BOARD MEMBERMIKE COOKSLEY, BOARD MEMBERRANDY WOODARD, BOARD MEMBERRANDY WOODARD, BOARD MEMBER JAY MARTIN, BOARD MEMBERJAY MARTIN, BOARD MEMBERNANCY OJEDA, BOARD MEMBERNANCY OJEDA, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBERCHUCK ENGELKEN, BOARD MEMBER CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDACITY 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 Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on April 14, 2014April 14, 2014, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 05:00 PM to consider the following items of business:beginning at 05:00 PM to consider the following items of business: 1.CALL TO ORDERCALL TO ORDER 2.CONSENT AGENDACONSENT AGENDA (All consent agenda items are considered routine by the La Porte (All consent agenda items are considered routine by the La Porte Decelopment Corporation Board and will be enacted by one motion. There will be no separate Decelopment 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 discussion of these items unless a Board member requests an item be removed and considered separately)separately) (a)Consider approval of minutes of the meeting of La Porte Development Corporation Board Consider approval of minutes of the meeting of La Porte Development Corporation Board held on March 24, 201 held on March 24, 201 -- P. Fogarty P. Fogarty (b)Consider approval or other action authorizing the President of the La Porte Development Consider approval or other action authorizing the President of the La Porte Development Corporation Board to execute a development agreement between the La Porte Corporation Board to execute a development agreement between the La Porte Development Corporation and Rob Johnson Realty Corporation Development Corporation and Rob Johnson Realty Corporation -- S. Livingston S. Livingston 3.PRESENTATIONPRESENTATION (a)Receive presentation from Bay Area Houston Economic Partnership on recent activities Receive presentation from Bay Area Houston Economic Partnership on recent activities - S. LivingstonLivingston 4.DISCUSSION OR OTHER ACTIONDISCUSSION OR OTHER ACTION (a)Discussion or other action regarding Workforce Development Training Discussion or other action regarding Workforce Development Training -- S. Livingston S. Livingston (b)Discussion or other action regarding 2014Discussion or other action regarding 2014--2015 La Porte Development Corporation Board 2015 La Porte Development Corporation Board budget for proposed projects: Workforce Development/Training; Small Business budget for proposed projects: Workforce Development/Training; Small Business Development; Local Initiatives Support Corporation of Greater Houston and the Northside Development; Local Initiatives Support Corporation of Greater Houston and the Northside Community; and La Porte Municipal Airport as a Master Planned Community Community; and La Porte Municipal Airport as a Master Planned Community -- S. Livingston S. Livingston 5.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 6.STAFF REPORTSSTAFF REPORTS (a)Receive Financial Report Receive Financial Report -- M. Dolby M. Dolby 7.Board member comments regarding matters appearing on agenda; Recognition of Board member comments regarding matters appearing on agenda; Recognition of community members, city employees, and upcoming events; inquiry of staff regarding community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies.specific factual information or existing policies. 8.Executive Session Executive Session ——The La Porte Development Corporation reserves the right to meet in 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 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.Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code. 9.Reconvene into regular session and consider action, if any, on items discussed in executive Reconvene into regular session and consider action, if any, on items discussed in executive session.session. 10.AdjournAdjourn In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received 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 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATIONCERTIFICATION I certify that a copy of the April 14, 2014, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the April 14, 2014, agenda of items to be considered by the Board of the La Porte Development Corporation was placed on the City Hall Bulletin Board on April 8, 2014 .Corporation was placed on the City Hall Bulletin Board on April 8, 2014 .   signature heresignature here     Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary   RICHARD WARREN, PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICE PRESIDENT RANDY WOODARD, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER NANCY OJEDA, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF MARCH 24, 2014 March 24 10, 2014, The City of La Porte Development Corporation Board met on at the City Hall Council 5:00 p.m Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of business: 1. CALL TO ORDER President Warren called the meeting to order at 5:00 p.m. The following members of the La Porte Development Corporation Board were present: Vice President Cooksley, Board members Woodard, Martin, Clausen, and Ojeda. Absent: Board member Engelken Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston 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 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 Board member Clausen moved to approve the consent agenda as presented. Board member Martin seconded. Ayes: President Warren, Vice-President Cooksley, Board members Clausen, Martin, Ojeda and Woodard Nays: None Absent: Board member Engelken 3. DISCUSSION OR OTHER ACTION (a) Receive presentation regarding Workforce Development Programs S. Livingston Economic Development Coordinator Scott Livingston presented a summary. JD Taliaferro, Director of Applied Technologies & Trades for San Jacinto College, provided a presentation regarding their efforts on Workforce Development Programs. Page 1 of 4 March 24, 2014, La Porte Development Corporation Board Minutes Board member Woodard questioned the investment plans of corporations and organizations for skilled laborer shortages. Mr. Taliaferro responded he is currently working with an organization that is training their people, and San Jacinto College has access to the equipment at night. President Warren questioned if students are hired after completing the programs. Mr. Taliaferro responded it depends on the program and/or the individuals performance if a job will become temporary or permanent. (b) Discussion regarding Workforce Development Programs S. Livingston Economic Development Coordinator Scott Livingston presented a summary and opened the opportunities for LPISD students a legal/eligible expense of the Workforce Development budget, and is it something in which the La Port City Manager Corby Alexander suggested Board members digest the information received during the presentation and bring the discussion back to the next meeting. 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 The public hearing was opened at 5:41p.m. Economic Development Coordinator Scott Livingston a presented a summary regardingproposed additional 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. Phillip Hoot, 927 Seabreeze, addressed Board members and commented when will the La Porte Development Corporation stop providing incentive grants to Rob Johnson Interests for a new retail development? There being no further public comments, the public hearing was closed at 5:43 p.m. (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 a project of the La Porte Development Corporation S. Livingston Board member Woodard moved to approve an 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 MOTION PASSED. Development Corporation. Board member Ojeda seconded. Ayes: President Warren, Vice-President Cooksley, Board members Clausen, Martin, Ojeda and Woodard Nays: None Absent: Board member Engelken 5. SET DATE FOR NEXT MEETING S. Livingston Board members set the next meeting date for April 14, 2014, at 5:00 p.m. Page 2 of 4 March 24, 2014, La Porte Development Corporation Board Minutes Page 3 of 4 March 24, 2014, La Porte Development Corporation Board Minutes STAFF REPORTS 6. (a) Receive Financial Report M. Dolby Finance Director Michael Dolby presented the Financial Report. There were no questions. 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. Board member Ojeda questioned if there was an update on Project Nebula. Economic Development Coordinator informed the Board that Texas Enterprise Fund Grant and will go back to Harris County after that process. 8. ADJOURN There being no further business, at 5:50 p.m. Board member Cooksley moved to adjourn the meeting. MOTION PASSED. Board member Clausen seconded. Ayes: President Warren, Vice President Cooksley Board members Clausen, Martin, Ojeda and Woodard Nays: None Absent: Board member Engelken Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary th Passed and approved on this 14 day of April, 2014. ____________________________________ President Richard Warren Page 4 of 4 March 24, 2014, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM April 14, 2014April 14, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: 4B Board 4B Board S. Livingston S. Livingston Source of Funds:Source of Funds: Requested By:Requested By: Retained Earnings Retained Earnings Economic Development/Tourism Economic Development/Tourism Account Number:Account Number: Department: N/A N/A Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: $40,000 $40,000 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Development Agreement1. Development Agreement SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Rob Johnson Interests (RJI) has been pursuing and negotiating with multiple, retail prospects to lease space in Phase #1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146.  In order Phase #1 of the new, proposed retail development on the southwest corner of Spencer Hwy and SH 146.  In order to accommodate a larger, national retail tenant in the retail center, RJI must construct a larger building with 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 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 national retail tenant, RJI is requesting allow RJI to offer competitive and attractive lease rates to the prospective national retail tenant, RJI is requesting an additional incentive in the amount of an additional incentive in the amount of .. $40,000$40,000   On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60On January 13, 2014, the 4B Board authorized staff to publish public notice of a 60--day petition period and day petition period and schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of schedule a public hearing on March 24, 2014 to discuss the incentive grant request in the amount of for $40,000$40,000 Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Rob Johnson Interests to construct a new retail strip center and attract new retail development to the City of La Porte at the “La Porte PlazaLa Porte Plaza””on the southwest corner of Spencer Hwy and SH 146. on the southwest corner of Spencer Hwy and SH 146.    On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incentive in On 24 March 2014, both the 4B Board and City Council voted to approve this project and award an incentive in the amount of to Rob Johnson Interests.  to Rob Johnson Interests.  $40,000$40,000   Staff and the City Attorney have created a development agreement with the Staff and the City Attorney have created a development agreement with the ““Rob Johnson Realty Rob Johnson Realty Corporation”(dba/aka dba/aka ““Rob Johnson InterestsRob Johnson Interests””) ) with the following key terms:with the following key terms:   Proof of a received Proof of a received for a minimum 20,000 sf retail building, for a minimum 20,000 sf retail building, Certificate of OccupancyCertificate of Occupancy   Proof of a signed leases for Proof of a signed leases for of the constructed space, of the constructed space, 50%50%   Minimum construction value of the 20,000 sf building of at least Minimum construction value of the 20,000 sf building of at least , and , and $2.75 million$2.75 million   Note:  Job creation was already included in the original incentive/development agreement regarding $66,000 for :  Job creation was already included in the original incentive/development agreement regarding $66,000 for this project.      Project Information Previously Shared on 13 January and 24 March, 2014Project Information Previously Shared on 13 January and 24 March, 2014       Mr. Rob Johnson is the Owner of Rob Johnson Interests, which is a local Real Estate Development Company.  Mr. Rob Johnson is the Owner of Rob Johnson Interests, which is a local Real Estate Development Company.  He developed the He developed the on Center Street and Pasadena Blvd in Deer Park, Texas.  He on Center Street and Pasadena Blvd in Deer Park, Texas.  He Shoppes of Town SquareShoppes of Town Square recently placed a portion of the Jay Marks Chevrolet dealership under contract to construct a new recently placed a portion of the Jay Marks Chevrolet dealership under contract to construct a new retail/commercial development. retail/commercial development.        Phase #1 is planned to encompass 2.86 acres, while Phase #2 is planned to encompass 1.67 acres.  Mr. Johnson Phase #1 is planned to encompass 2.86 acres, while Phase #2 is planned to encompass 1.67 acres.  Mr. Johnson plans to complete Phase #1 in 2014 and Phase #2 by either late 2014 or early 2015.plans to complete Phase #1 in 2014 and Phase #2 by either late 2014 or early 2015.       Rob Johnson has been pursuing and negotiating with multiple, retail prospects to lease space in Phase #1 of the Rob Johnson has been pursuing and negotiating with multiple, retail prospects to lease space in Phase #1 of the new, proposed retail development.  In order to accommodate a larger, national retail tenant in the retail center, Rob new, proposed retail development.  In order to accommodate a larger, national retail tenant in the retail center, Rob must construct a larger building with firewalls between the adjoining lease spaces.  In order to keep his must construct a larger building with firewalls between the adjoining lease spaces.  In order to keep his construction costs within limits that will still allow him to offer competitive and attractive lease rates to the construction costs within limits that will still allow him to offer competitive and attractive lease rates to the prospective national retail tenant, Rob is requesting an additional incentive in the amount of prospective national retail tenant, Rob is requesting an additional incentive in the amount of .. $40,000$40,000       The subject property of both Phases #1 and #2  is on the tax  rolls for $700,000, which yields approximately $4,970 The subject property of both Phases #1 and #2  is on the tax  rolls for $700,000, which yields approximately $4,970 (at $0.71/$100 of assessed value) annually in taxes to the City of La Porte.  Once development has been (at $0.71/$100 of assessed value) annually in taxes to the City of La Porte.  Once development has been completed on both phases, the estimated taxable value of the new development will be $6,000,000 to $8,000,000.  completed on both phases, the estimated taxable value of the new development will be $6,000,000 to $8,000,000.  Excluding sales tax revenue, the estimated annual taxes would be $42,600 to $56,800.  Excluding sales tax revenue, the estimated annual taxes would be $42,600 to $56,800.  Taking an average of the Taking an average of the two, if the estimated taxable value were to be $7,000,000, the annual taxes would be $49,700.  Therefore, the two, if the estimated taxable value were to be $7,000,000, the annual taxes would be $49,700.  Therefore, the estimated annual increase in taxes upon completion of the multiestimated annual increase in taxes upon completion of the multi--phase project is phase project is .. $44,730$44,730       Assuming a total incentive grant of Assuming a total incentive grant of ($66,000 plus $40,000) and new annual taxes ($49,700 ($66,000 plus $40,000) and new annual taxes ($49,700 -- $4,970) of $4,970) of $106,000$106,000 , the break, the break--even point would be even point would be andand.. $44,7302 years 2 years 4 months 4 months         Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed Consider approval or other action authorizing Board President Richard Warren to sign and execute the enclosed development agreement with the development agreement with the ““Rob Johnson Realty CorporationRob Johnson Realty Corporation””.. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM April 14, 2014April 14, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Presentation1. Presentation SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate 313 extension passes Proposition 6 passes House Bill 5 passes passes Senator Dan Patrick R&D Tax Incentive Chapter Chemical Day Austin Advocacy Science, Space, and Technology Committee ongressman Lamar Smith Advocacy the Chairman of C Science, Space, and Technology Committee ongressman Lamar Smith Advocacy the Chairman of C Congressman Weber BAHEP Members Advocacy addresses Legislative Update Advocacy rd 83 update BAHEP Members Henry and Emmett Advocacy County Judges Expanding Educational Advocacy Opportunities Waters Flood Insurance Act Advocacy - Biggert are a small city fighting a big battle Chris Reed, Nassau Bay City Manager setting up and there was no way that we could have arranged a meeting by Waters Flood Insurance Act ! n o i t Advocacy c a s e Waters meeting. We k a t P E H A B - Biggert - the Biggert Waters Flood Insurance Act Advocacy - Biggert Drafts white paper and mails packets to BAHEP builds Texas Coalition from Waters page to - Creates Information web - 97 members of Congress Simonton to Bridge City Waters Flood Insurance Act Advocacy - Biggert resolutions of support! Hosts numerous local meetings Joins National Coalition (CSFI) Sends daily email updates Waters Flood Insurance Act Secures 35 Advocacy - Biggert Senator Taylor and Council Member Martin join BAHEP on inspection of New Orleans Storm Protection System Storm Surge Suppression Advocacy BAHEP Expands Opportunities approx Celanese Corp. will build $500 million to $1 billion based Ultrapar building a $100 million Oxiteno, a subsidiary of Holdings, will start up a 312,000 SF facility for its bottled water operation. new specialty chemical America has opened a $30 60 new jobs Three manufacturing 50 employees Bayport Industrial polymer facility in Nestle Waters North million investment a new methanol NA Industries is - investment plant in Bayport each line. production plant New! New! New! - District Brazilian lines Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster $500 million investment Bayport No. Industrial Park & Distribution Center capacity at La Porte ethylene area projects LyondellBasell expanding Harris County Galveston County Port of Houston Authority - for all Houston Pasadena Light Industrial District -- plant La Porte Calpine Corporation leased Lago Bay 83,500SF for its turbine Pasadena Clear Lake Shores Dickinson El Area Business Park -- maintenance group chemical plant in La Porte 15 new jobs. and will building an approx. $300 expand its EVAL plant in Air Liquide is building a new hydrogen plant in Bayport Industrial Kuraray America is million PVOL resin $49 M office and 80,000 SF $31 million building 20,000 SF New! 35 Technology is 110 new jobs manufacturing New! District - Pasadena New! new jobs investment Lummus investment - facility Expanding Opportunities Specialty Chemicals Industry Breakfast with Weber and Stockman Congressmen Expanding Opportunities Chemicals Specialty Kuraray Groundbreaking Expanding Opportunities Chemicals Specialty Expanding Opportunities Port of Houston Authority Oct 2013 Jul 2013 Followers Getting the word out via Social Media Facebook LinkedIn May 2013 Twitter Communication BAHEP Mar 2013 Jan 2013 Nov 2012 0 800600400 200 509% strong growth in the following our Social number of people LinkedIn 51% Growth this year: BAHEP has had Twitter 38% Facebook Media. Interviews with print and broadcast media Communication REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM April 14, 2014April 14, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A S. Livingston S. Livingston Source of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS   The intent of this agenda item, which is initially discussed during our previous meeting on Monday, 24 March 2014, The intent of this agenda item, which is initially discussed during our previous meeting on Monday, 24 March 2014, is to foster an open discussion about is to foster an open discussion about ““Workforce DevelopmentWorkforce Development””that may include, but not be limited to, the that may include, but not be limited to, the following topics:following topics:   How may the 4B Board support How may the 4B Board support ““Workforce DevelopmentWorkforce Development””in La Porte? in La Porte? Who is doing what in La Porte with respect to Who is doing what in La Porte with respect to ““Workforce DevelopmentWorkforce Development””? ? What are other communities doing to support What are other communities doing to support ““Workforce DevelopmentWorkforce Development””? ? What is the status of What is the status of ““Workforce DevelopmentWorkforce Development””in La Porte? in La Porte? What does La Porte (industry, citizens, students, etc.) need/want with respect to What does La Porte (industry, citizens, students, etc.) need/want with respect to ““Workforce Workforce DevelopmentDevelopment””? ?   ------------------------------------------------------------------------------------------------------   The following question has been raised by a 4B Board member and requested to be made part of this discussion The following question has been raised by a 4B Board member and requested to be made part of this discussion regarding workforce development:regarding workforce development:   “Are career awareness opportunities for LPISD students a legal/eligible expense of our WorkAre career awareness opportunities for LPISD students a legal/eligible expense of our Work--force Development force Development budget.  Also, is this something in which the 4B Board is interested in enterbudget.  Also, is this something in which the 4B Board is interested in enter--taining?  Two examples are taining?  Two examples are ““Camp Camp Invention”, a week long summer camp that follows STEM curriculum and introduces students to engineering and a week long summer camp that follows STEM curriculum and introduces students to engineering and the Junior Achievement Organization's program called the Junior Achievement Organization's program called ““Biz TownBiz Town””that teaches entrepreneurship and city that teaches entrepreneurship and city government issues.government issues.””     ------------------------------------------------------------------------------------------------------   Usually, development corporations use workforce development/training funds as an incentive to either Usually, development corporations use workforce development/training funds as an incentive to either   However, the 4B Board may   However, the 4B Board may lure a new industry to town or encourage an existing industry to expand.lure a new industry to town or encourage an existing industry to expand. also wish to consider using all or a portion of the funds to support also wish to consider using all or a portion of the funds to support ““Workforce DevelopmentWorkforce Development””in any of the in any of the additional and following ways:additional and following ways: staff and/or 4B Board approved staff and/or 4B Board approved funds funds ““””to reto re--train existing train existing (1)       Givecompanies in La Portecompanies in La Porteup frontup front employees and/or train new employees.  In this scenario, the development agreement with clawemployees and/or train new employees.  In this scenario, the development agreement with claw--back provisions back provisions would be with each company. would be with each company.    staff and/or 4B Board approved staff and/or 4B Board approved funds funds ““””to reto re--train (2)       ReimburseReimbursecompanies in La Portecompanies in La Porteafter the factafter the fact existing employees and/or train new employees.  In this scenario, the development agreement with clawexisting employees and/or train new employees.  In this scenario, the development agreement with claw--back back provisions would be with each company.provisions would be with each company.   Pay (3)       San Jacinto College, any other institution of higher learning, or specialized trainerSan Jacinto College, any other institution of higher learning, or specialized trainer directly to give directly to give ““primary job trainingprimary job training””to new and/or existing employees of staff and/or 4B to new and/or existing employees of staff and/or 4B (s)/consultant(s)(s)/consultant(s) Board approvedBoard approved.  In this scenario, the development agreement would be with San Jacinto .  In this scenario, the development agreement would be with San Jacinto companies in La Porte companies in La Porte College, any other institution of higher learning, or the specialized trainer(s)/consultant(s).College, any other institution of higher learning, or the specialized trainer(s)/consultant(s).   Pay (4)       (4)       San Jacinto College, any other institution of higher learning, or specialized trainerSan Jacinto College, any other institution of higher learning, or specialized trainerSan Jacinto College, any other institution of higher learning, or specialized trainerSan Jacinto College, any other institution of higher learning, or specialized trainer directly to give directly to give ““primary job trainingprimary job training””to staff and/or 4B Board approved to staff and/or 4B Board approved .  (s)/consultant(s)(s)/consultant(s)citizens of La Portecitizens of La Porte In this scenario, the development agreement would be with San Jacinto College, any other institution of higher In this scenario, the development agreement would be with San Jacinto College, any other institution of higher learning, or the specialized trainer(s)/consultant(s).learning, or the specialized trainer(s)/consultant(s).   Give funds to the Give funds to the to hold in earnest and pay upon staff to hold in earnest and pay upon staff (5)       San Jacinto College Education FoundationSan Jacinto College Education Foundation and/or 4B Board approval to San Jacinto College to give and/or 4B Board approval to San Jacinto College to give ““primary job trainingprimary job training””to new and/or existing employees to new and/or existing employees of staff and/or 4B Board approvedof staff and/or 4B Board approved.  In this scenario, our development agreement would .  In this scenario, our development agreement would companies in La Porte companies in La Porte be with both the San Jacinto College Education Foundation and San Jacinto College.be with both the San Jacinto College Education Foundation and San Jacinto College.   Give funds to the Give funds to the to hold in earnest and pay upon staff to hold in earnest and pay upon staff (6)       San Jacinto College Education FoundationSan Jacinto College Education Foundation and/or 4B Board approval to San Jacinto College to give and/or 4B Board approval to San Jacinto College to give ““primary job trainingprimary job training””to staff and/or 4B Board approved to staff and/or 4B Board approved .  In this arrangement, our development agreement would be with both the San Jacinto .  In this arrangement, our development agreement would be with both the San Jacinto citizens of La Portecitizens of La Porte College Education Foundation and San Jacinto College.College Education Foundation and San Jacinto College.   : Notes   (1)       Based upon the existing bylaws of the La Porte Development Corporation, (1)       Based upon the existing bylaws of the La Porte Development Corporation, for for or all expensesall expenses$15,000$15,000 more, even if the expense are included in the approved budget, must be approved by the City Council. more, even if the expense are included in the approved budget, must be approved by the City Council.    (2)       All “projectsprojects””of the LPDC may be considered for approval only after a 60 notice for a public hearing has of the LPDC may be considered for approval only after a 60 notice for a public hearing has been posted and the public hearing has been conducted. been posted and the public hearing has been conducted.    (3)       Staff and Traci are working with the City Attorney on the possibility of including (3)       Staff and Traci are working with the City Attorney on the possibility of including ““””for for $$50,00050,000 “Workforce Development/TrainingWorkforce Development/Training””as a as a ““projectproject””in the proposed budget for the next fiscal year.  The goal is to in the proposed budget for the next fiscal year.  The goal is to hold and conduct a public hearing on this hold and conduct a public hearing on this ““projectproject””when the 4B Board approves the proposed budget for the new when the 4B Board approves the proposed budget for the new fiscal year so that we donfiscal year so that we don’’t again have to hold a public hearing on the same project later in the year.t again have to hold a public hearing on the same project later in the year. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Give staff direction regarding the BoardGive staff direction regarding the Board’’s desire to use the funds in the current budget for s desire to use the funds in the current budget for ““Workforce Workforce Development/TrainingDevelopment/Training””.. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM April 14, 2014April 14, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A S. Livingston S. Livingston Source of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Staff has been evaluating ways to streamline the process by which projects of the Development Corporation work Staff has been evaluating ways to streamline the process by which projects of the Development Corporation work its way through the necessary legal steps.  One idea that staff would like to propose that the Board consider for its way through the necessary legal steps.  One idea that staff would like to propose that the Board consider for the development of the upcoming FY 2015 budget is to delineate, to the extent possible, specific projects of the the development of the upcoming FY 2015 budget is to delineate, to the extent possible, specific projects of the Corporation as part of the CorporationCorporation as part of the Corporation’’s budget review process. s budget review process.    According to the bylaws of the La Porte Development Corporation, According to the bylaws of the La Porte Development Corporation, , including expenses that are , including expenses that are all expensesall expenses included in the approved budget, for included in the approved budget, for must be approved by the City Council.  Additionally, each must be approved by the City Council.  Additionally, each $15,000$15,000or moreor more “project”of the LPDC may be considered for approval only after a 60of the LPDC may be considered for approval only after a 60--day notice for a public hearing has been day notice for a public hearing has been posted and the public hearing has been conducted. posted and the public hearing has been conducted.    Therefore, for each known and expected Therefore, for each known and expected Therefore, for each known and expected Therefore, for each known and expected ““““projectprojectprojectproject””””for the upcoming fiscal year, it may be more timely and for the upcoming fiscal year, it may be more timely and for the upcoming fiscal year, it may be more timely and for the upcoming fiscal year, it may be more timely and efficient to hold and conduct a public hearing on each efficient to hold and conduct a public hearing on each ““projectproject””for the upcoming fiscal year when the 4B Board for the upcoming fiscal year when the 4B Board approves the proposed budget.  When the City Council votes to approve the proposed budget of the 4B Board for approves the proposed budget.  When the City Council votes to approve the proposed budget of the 4B Board for FY 2014-2015, the City Council could separately, but simultaneously approve each 2015, the City Council could separately, but simultaneously approve each ““projectproject””as part of the as part of the approved budget.approved budget.   Proposed “ProjectsProjects””in FY 2014 in FY 2014 --20152015      Proposed “Projects,Projects,””and the proposed budget for each project in FY 2014 and the proposed budget for each project in FY 2014 --2015 may be considered as follows:2015 may be considered as follows:   for Workforce Development/Training,  for Workforce Development/Training,  $50,000$50,000   to support Small Business Development, to support Small Business Development, $25,000$25,000   to support a partnership with the Local Initiatives Support Corporation (LISC) of Greater to support a partnership with the Local Initiatives Support Corporation (LISC) of Greater $20,000$20,000 Houstonand the Northside Community to support reHoustonand the Northside Community to support re--development and redevelopment and re--vitalization of the Northside vitalization of the Northside Community. Community.   to pay a consultant to draft a Request for Proposal and Request for Quote to re to pay a consultant to draft a Request for Proposal and Request for Quote to re--purpose the La purpose the La $50,000$50,000 Porte Municipal Airport as a master planned community, should the city council express an interest in Porte Municipal Airport as a master planned community, should the city council express an interest in further exploring the possibility of refurther exploring the possibility of re--purposing the La Porte Municipal Airport. purposing the La Porte Municipal Airport.   Other ideas?  In the past, there have been specific capital projects that the Board has funded.  At this time, Other ideas?  In the past, there have been specific capital projects that the Board has funded.  At this time, staff does not have any projects identified but would like to entertain suggestions from the Board.  staff does not have any projects identified but would like to entertain suggestions from the Board.    Proposed Timeline to Consider New Proposed Timeline to Consider New ““ProjectsProjects””for FY 2014 for FY 2014 --20152015   Discuss and finalize proposed new Discuss and finalize proposed new ““projectsprojects””for FY 2014 for FY 2014 --2015 during our next, proposed meeting at 5:00 2015 during our next, proposed meeting at 5:00 thth pm on , , Monday, April 28Monday, April 28   thth By May 15By May 15 publicly publish and post a public hearing to discuss and designate each of these publicly publish and post a public hearing to discuss and designate each of these ““projectsprojects”as thth a “projectproject””in the proposed budget for FY 2014 in the proposed budget for FY 2014 --2015 on 2015 on , and , and Monday, July 14Monday, July 14   Conduct a public hearing on Conduct a public hearing on , 2014 during a posted 4B Board meeting to designate and , 2014 during a posted 4B Board meeting to designate and Monday, July 14Monday, July 14 approve each approve each ““projectproject””to be included in the proposed budget of the 4B Board for FY 2014to be included in the proposed budget of the 4B Board for FY 2014--2015. 2015.   Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: None. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate 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 Tax363,022569,498497,536 Interest Income1,6762,0072,034 Total Revenues364,698571,505499,570 Equals Total Resources3,132,8533,339,6602,696,505 Less Year to Date Expenditures: Payroll21,30226,70414,164 Supplies6941198 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)30,25478,95030,194 Debt Service Transfer316,182395,227170,859 * Capital Projects Transfers25,66732,08352,083 ** Total Expenditures393,474533,375267,398 Estimated Year to Date Fund Balance as of 2/28/2014$2,739,379$2,806,285$2,429,107 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$611,740 Projection Through Year End Adjusted Year to Date Fund Balance$611,740 Plus: Estimated Sales Tax1,419,940 Less: Estimated Operational Costs(219,523) Less: Debt Service Transfers(553,318) Less: Capital Projects Transfers(144,917) Projected Year End Fund Balance$1,113,922 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 Grants300,00081,570218,430 Total475,00081,570393,430 *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.