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HomeMy WebLinkAbout11-17-14 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICEMIKE COOKSLEY, VICE--PRESIDENTPRESIDENTRANDY 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 November 17, 2014November 17, 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 the La Porte Development Corporation Consider approval of minutes of the meeting of the La Porte Development Corporation Board held on October 27, 2014 Board held on October 27, 2014 -- P. Fogarty P. Fogarty (b) Consider approval or other action regarding an enhancement grant amount not to exceed Consider approval or other action regarding an enhancement grant amount not to exceed $9,652.90 to Ronda Stockton, owner of And Sew It Began to be awarded at the completion $9,652.90 to Ronda Stockton, owner of And Sew It Began to be awarded at the completion of the project, conditional upon receipts for work of the project, conditional upon receipts for work -- S. Livingston S. Livingston 3.AUTHORIZATIONSAUTHORIZATIONS (a) Consider approval or other action authorizing Board President Richard Warren to execute a Consider approval or other action authorizing Board President Richard Warren to execute a proposed development agreement with ACT Independent Turbo Services, Inc. proposed development agreement with ACT Independent Turbo Services, Inc. - S. Livingston Livingston 4.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 5.STAFF REPORTSSTAFF REPORTS (a) Receive Financial ReportReceive Financial Report-- M. Dolby M. Dolby 6.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. 7.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. 8.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. 9.AdjournAdjourn The La Porte Development Corporation Board reserves the right to meet in closed session on any The La Porte Development Corporation Board reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code (the Texas open meetings laws).of the Texas Government Code (the Texas open meetings laws). 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 November 17, 2014, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the November 17, 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 November 11, 2014 .Corporation was placed on the City Hall Bulletin Board on November 11, 2014 . signature heresignature here Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary 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 OCTOBER 27,2014 October 27, 2014, 5:00 p.m 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 aBoard member requests an item be removed and considered separately.) 3. SET DATE FOR NEXT MEETING 4. STAFF REPORTS (a) Page 1 of 2 October 27, 2014, La Porte Development Corporation Board Minutes BOARD MEMBER COMMENTS 5. 6. EXECUTIVE SESSION 7. RECONVENE 8. ADJOURN MOTION PASSED Page 2 of 2 October 27, 2014, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM November 17, 2014November 17, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Scott Livingston Scott Livingston Requested By:Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: 9,652.90 9,652.90 Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Bid Sheet Summary1. Bid Sheet Summary 2. Power Point Presentation2. Power Point Presentation 3. Enhancement Grant Application3. Enhancement Grant Application 4. Enhancement Grant Evaluation Summary4. Enhancement Grant Evaluation Summary SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS thth The Enhancement Grant Review Committee (The Enhancement Grant Review Committee (““CommitteeCommittee””))met on Wednesday, October 29met on Wednesday, October 29 to review and to review and stst discuss an Enhancement Grant Application from discuss an Enhancement Grant Application from ““And Sew it BeganAnd Sew it Began””at 211 S. 1at 211 S. 1 Street. The applicant received Street. The applicant received landscapinglandscapingirrigationirrigationwindowswindowslightinglightingfencingfencing three (3) bids each for three (3) bids each for , , , , , , , and , and . . LandscapingLandscaping ---- 50% of the lowest bid for landscaping, which was $6,539.40 (this is $5,107.81, plus 50% of the lowest bid for landscaping, which was $6,539.40 (this is $5,107.81, plus $3,269.70 $3,269.70 $757.61, and $673.98), so the maximum amount of reimbursement would be $757.61, and $673.98), so the maximum amount of reimbursement would be (this bid included (this bid included sales tax).sales tax). IrrigationIrrigation ---- The lowest bid was $2,200 (Note: this vendor included the sales tax), so the maximum The lowest bid was $2,200 (Note: this vendor included the sales tax), so the maximum $1,100$1,100 reimbursement of 50% would be reimbursement of 50% would be .. WindowsWindows ---- The lowest bid was $484.70 per window or $6,301.10 for thirteen (13) windows. Therefore, The lowest bid was $484.70 per window or $6,301.10 for thirteen (13) windows. Therefore, $3,410.47 $3,410.47 the maximum reimbursement of 50% would be the maximum reimbursement of 50% would be ($6,301.10 plus sales tax, divided by 2).($6,301.10 plus sales tax, divided by 2). LightingLighting $1,163.69$1,163.69 ---- The lowest bid was $2,150, so the maximum reimbursement of 50% would be The lowest bid was $2,150, so the maximum reimbursement of 50% would be ($2,150plus sales tax, divided by 2).($2,150plus sales tax, divided by 2). FencingFencing$709.04$709.04 ---- The lowest bid was $1,310, so the maximum reimbursement of 50% would be The lowest bid was $1,310, so the maximum reimbursement of 50% would be ($1,310 plus sales tax, divided by 2).($1,310 plus sales tax, divided by 2). $9,392.98 $9,392.98 The total reimbursement would, therefore, not exceedThe total reimbursement would, therefore, not exceed for the sum of the following: $3,269.70 for the sum of the following: $3,269.70 (Landscaping), $1,100 (Irrigation), $3,150.55 (Windows), $1,163.69 (Lighting) and $709.04 (Fencing).(Landscaping), $1,100 (Irrigation), $3,150.55 (Windows), $1,163.69 (Lighting) and $709.04 (Fencing). The Enhancement Grant Evaluation Committee met to discuss this enhancement project and The Enhancement Grant Evaluation Committee met to discuss this enhancement project and believes that this project will encourage similar rebelieves that this project will encourage similar re--development throughout the community of development throughout the community of La Porte. Therefore, the Enhancement Grant Evaluation Committee does support to this Therefore, the Enhancement Grant Evaluation Committee does support to this project. The applicant will be available at the meeting to address any questions the Board might have about the proposed The applicant will be available at the meeting to address any questions the Board might have about the proposed project. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action of an enhancement grant amount not to exceed $9,392.98 for Ms. Ronda Consider approval or other action of an enhancement grant amount not to exceed $9,392.98 for Ms. Ronda Stockton, owner of Stockton, owner of ““And Sew It BeganAnd Sew It Began””to be awarded at the completion of the project, conditional upon receipts to be awarded at the completion of the project, conditional upon receipts for work as indicated.for work as indicated. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate $1,310.00$1,700.00$1,600.00 Fencing $2,150.00$2,950.00$2,519.65 Lighting $11,158.35 $6,301.10$7,038.57 Windows $4,050.00$3,300.00$2,200.00 Irrigation Landscaping $9,195.00$8,675.00$6,539.40 Note: * Figures from this vendor include 8.25% sales tax. Gulf Coast Painting/Remodeling Decorative Pools & Landscape* Anderson Remodeling Co. EDS Landscaping, LLC Anderson Fence Co. Pasadena Fence Co. Randall Bradshaw Home Depot From: Randall Bradshaw <bradsrandall@aol.com> Date: October 1, 2014 at 9:01:32 PM CDT Ronda926@comcast.net" <Ronda926@comcast.net> To: " Subject: Landscape quote for 211 S 1st Ronda, Based on our meeting last week this is the quote I came with: Remove all existing landscape except for the yellow bells on side by drive way. $ 150.00 Design new beds with 10 yds of soil mix and 3 yds of mulch. $ 780.00 Border all beds including new red oak and existing crepe myrtle with moss rock incorporating irregular boulders to break up consistency. (See pic) $ 1,200.00 Install 4 accent boulders to top of beds. $ 500.00 Line bottom of house with 6" bender board to hold beds in place. $ 400.00 (Tree) $ 1,200.00 1- 100 gal red oak (Plants) $ 4,865.00 1- 15 gal patio tree bougainvillea 3- 30 gal pyramid Japanese yews. (See pic) 1- 30 gal patio tree Hanna ray bottlebrush 1- Plant on a lattice to go against chimney. Rangoon,Carolina jasmine or similar evergreen plant. 55- 5 gal various evergreen plants 18- 1 gal various evergreen plants 20- flats of fall/winter color Repair lawn where it was damaged from tree removal. $ 100.00 Install automatic irrigation system with automatic rain sensor for all of front and back lawn,beds and trees. Includes all necessary permits. $ 4,050.00 Install an 11 (Commercial grade) LED lighting system to accent home, focal plants and trees. Includes automatic timer and all 12 gauge wiring. $ 2,150.00 Sub total $ 15,395.00 Tax $ 1,270.09 Total $ 16,665.09 Thank you Bradshaw Landscaping 271-541-5745 18096 Kings Row Suite G Houston, TX 77058 281-335-8316 Decorativepoolsinc.com DATE: November 2, 2014 BID PROPOSAL FOR: NAME: Ronda st ADDRESS: 211 south 1street CITY & ZIP: La Porte TX 77571 SCOPE OF WORK: Landscape per plan$5,107.81 : $5,107.81 Demo new bed areas and dispose of off site. Build beds approximately 6” above grade with flowerbed mix (7 yards). Plants will be installed as specified on the plan. All plants will receive slow release fertilizer. Bed areas will be topped with shredded hardwood mulch (black) approximately 2” deep (3.5yards). Tree will be staked. Chop stone or moss rock will be leveled on top of stabilized sand around perimeter of beds 6” Bender board to retain beds off house. Change Orders: $757.61 - 100g Shumardi Red Oak installed $757.61 $673.98 - (4) moss accent boulders installed (3’L x 3’W x 1.5’ T) $673.98 $2,519.65 - Low voltage lighting $2,519.65 (11) rs uplights with 3 watt led bulbs (1) 300 watt fx transformer with timer and photo cell 10g wire and grease packs for all connections $9,059.05 Total: Note: all prices include sales tax WARRANTY INFORMATION: three months All container plants are guaranteed for a period of from the date of installation, with automatic irrigation, excluding annuals, the effects of fire, vandalism, freeze, drought, storms, or any other extreme act of nature. No guarantee on sod or transplanted plants. All other work carries a one-year warranty on materials and labor. 1 PAYMENT SCHEDULE: 50% deposit at contract signing with the remaining 50% balance due upon completion of all approved work. _____________________ HOMEOWNER SIGNATURE OF ACCEPTANCE:__________________ :________________________________________ DECORATIVE POOLS REPRESENATIVE This proposal may be withdrawn if not accepted within 30 days. 2 Following is a summary of the evaluations of the Main Street Enhancement Grant Evaluating Committee (EGEC). Please note that if an item status is Grant awarded in an amount not to exceed $___________ based on receipts and completion of work as ase depending upon the additional information Average Score provided. If you have any questions about the items listed below, please call the Economic Development Office at 281-470-5016 4.34.34.34.74.3 4 ) # of Evaluations Total Average Score (out of 5 10/29/2014 33333 Ronda92@comcast.net Initial Review Date: Total Score La Porte Enhancement Grant Program 1312131314 Application Evaluation Summary E-Mail: over the existing situation. And Sew it Began Street; La Porte, TX 77571 27 October 2014 -9800 Project will add to the beautification of Main Street. Project will complement the surrounding buildings. Project Demonstrates a significant improvement Ronda Stockton Criteria st adds value to the City of La Porte 211 S. 1 Recommendation: Business Address: Application Date: Business Name: 828 Contact Name: 713-Evaluating Committee Members: indicated. Phone: Tim Planning Director Project Name Title listed a 604 W. Fairmont Parkway, La Porte, Texas 77571 (281) 470-5016 LA PORTE BY THE BAY Scott Economic Development Coordinator Cris Resident, employee of La Car Porte REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM November 17, 2014November 17, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Scott Livingston Scott 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 1. Proposed ACT Development Agreement1. Proposed ACT Development Agreement 2. ACT turbo Original Presentation Files2. ACT turbo Original Presentation Files SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS On Monday, 22 September 2014, both the La Porte City Council and the 4B Board approved an incentive grant On Monday, 22 September 2014, both the La Porte City Council and the 4B Board approved an incentive grant award in the amount of $426,000 for ACT Independent Turbo Service, Inc. award in the amount of $426,000 for ACT Independent Turbo Service, Inc. Enclosed is the proposed development agreement for ACT Independent Turbo Services, Inc. Enclosed is the proposed development agreement for ACT Independent Turbo Services, Inc. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action authorizing the President of the La Porte Development Corporation to execute a Consider approval or other action authorizing the President of the La Porte Development Corporation to execute a proposed development agreement with ACT Independent Turbo Services, Inc. proposed development agreement with ACT Independent Turbo Services, Inc. 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 ITEM Budget Agenda Date Requested: 22September2014 Source of Funds: N/A 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:Business Overview, ACT Independent Turbo Budgeted Item:YES NO Exhibit: Incentive Request, ACT Independent Turbo Exhibit: Facts and Figures__________________________ Exhibit: LPDC Project Score Card, 10Sept.2014 ACT Turbo, Public Hearing Posting Affidavit_ Exhibit: SUMMARY ACT Independent Turbo Services, Inc. (ACT)is a fast growing company that specializes in industrial gas turbine overhaul and repair and has positioneditselfas a leader in the market. Based upon the successes over the last couple of years, increases in production capacity and expanded facilities will be required to keep up with the demand for ACT’s service offerings. Company management believes that consolidating and relocating all service offerings to La Porte will benefit the business, employees, and the community. However, asignificant cost difference exists between expanding at ACT’s existinglocation in Houston versus relocating to La Porte. In order to assist ACT in the proposed relocationof its Main Production facility to La Porte, $450,000 ACT requests economic assistance in the amount of. Public Hearing Posting On 14 July 2014, staff presented this proposed project to the 4B Board. The 4B Board authorized staff to post public notice for at least sixty (60) days of a public hearing at 5:00 pm on 22 September 2014 to consider awarding an economic development grant for this project. Public notice for tonight’s public hearing was posted on 17 July 2014. Proposed Expansion Highlights If ACT relocates to La Porte, it will: $6.6 million Invest a total, estimated taxable value of in property and business personal property as follows: $3.6million Invest in new building construction as follows: o 15,000 square foot office, o 33,000 square foot, crane served industrial building, o $2 million Relocate of existing equipment and inventory, o $1 million Purchase in new equipment, o Relocate seventy-three (73) full time employeesfrom its existing location at Hobby Airport in Houston. Note:Seven (7) full time employees are already working at ACT’s facility in La Porte. Start the project in September of 2014 and finish the relocation by the end of 2015. Personnel Information Below is an itemized categorization of the ACT’s employment: (6) Executive Management (9) Sales, Accounting and Support Staff (12) Engineering & Supervision (53) Hourly Technicians ACT offers competitive salary and benefits. Many of ACT’s hourly employees make between $20 - $30/hr. Supervisors and engineering staff are typically compensated at or above the industry average. All full time employees are eligible to receive benefits that include generous insurance benefits (medical, vision, dental), 401(k) plan with matching program, disability & life insurance, profit sharing incentives, paid vacation and holidays. Other Pertinent Information Of the six (6) senior members of ACT’sexecutive management team, three (3) are La Porte High School graduates and two (2) others have lived and/or worked in La Porte for over 20 years. Impact Analysis eachyear Excluding the impact of the seventy-three (73) new jobs to be relocated to La Porte, directly$42,600 this project would contribute approximately of new, annual property tax Please refer to “Project Facts and Figures” and the “LPDC revenue to the City of La Porte. Project Score Card - 10 September 2014“ (enclosed) for payback figures. Demand for Capital, Other Projects, and Priorities According to the enclosed monthly financial reports, the 4B Board currently has approximately $933,155 available at its discretion to use for new economic development projects. According to the same financial reports, the 4B Board’s projected fund balance, assuming that no additional $1,347,674 funds are committed to new projects, by 30 September 2014 is . Other projects, which are in various stages of discussion and may request funds from the 4B Board, are as follows: South S. Broadway Re-Development Retail Strip Center $250,000 + o S. Broadway Re-Development Fischer’s Hardware $250,000 + o Re-Development Former Kroger $400,000 o Main Street Re-Development/BusinessAttraction $150,000 o Retail Attraction, SEC of Spencer Hwy and Canada Road $200,000 o Staff Recommendation Based upon the 4B Board’s priorities, existing capital constraints, and demand for capital by other projects, Staff recommends that the 4B Board consider awarding an economic development $275,000 incentive toACT Turbo Independent Services, Inc. for . Action Required by the La Porte Development Corporation Board: Consider approval or other action to award an economic incentive grant to ACT Independent Turbo Services, Inc.and authorize staff to create a development agreement. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date Rotor Facility Component Facility 12022 N. P Street 8525 Freeland St La Porte, TX 77571 Houston, TX 77061 713-364-7500 713-364-7500 To: City of La Porte Economic Development Corporation 604 W. Fairmont La Porte, TX 77571 Attn: Scott Livingston Re: ACT Independent Turbo Services Application for Economic Assistance Executive Summary ACT Independent Turbo Services is a fast growing company that specializes in IGT Overhaul and Repair. The company has worked hard to position itself as a leader in the market and based on the successes over the last couple of years, increase in production capacity and facilities expansion will be required to keep up with demand and expand our service offerings. Company management believes that relocating all service offerings to La Porte will be beneficial to the business, employees and the community. However, there is significant cost difference between expanding at the existing Houston location and performing a relocation of the business to La Porte. To assist in the relocation of our Main Production facility to La Porte, ACT Independent Turbo Services is requesting economic assistance in the amount of $450,000. About ACT Independent Turbo Services ACT Independent Turbo Services was founded in 1996 and served as a small niche market IGT (Industrial Gas Turbine) service provider for many years. In 2011 the decision was made to expand the service offerings as well as make significant investments in capabilities and personnel. Today, we employ 80 people between two locations and provide skilled services to industrial rotating equipment and power generation clients all over North and South America. We take pride in our highly skilled employee base that includes expert craftsman such as super-alloy welders, precision machinists, industrial mechanics, engineers and a tenured supervision and support network. With the addition of our Rotor facility in early 2013 and installation of state of the art equipment; ACT has invested more than $8MM into the business since 2011. Starting in early 2013, ACT Independent Turbo Services opened a second facility with expanded capabilities. This allows us to serve our clients out of not only our original and main facility located near Hobby Airport but a newly built rotor & heavy mechanical facility located in La Porte TX. Since 2012, the business has experienced growth greater than 20% year over year growth and are projected to reach full capacity at our main facility near Hobby Airport before or during the 2016 calendar year. The company is at a critical juncture as there is a requirement to invest capital to expand our operations to meet the current and projected demand. ACT Independent Turbo Services will need to enlarge the existing Hobby Airport location or totally relocate the entire business to La Porte. Why La Porte? The management team is familiar with the La Porte area and the benefits that living and working in the area have to offer. Our Rotor Facility property has room for an expanding business and could easily accommodate the current Houston business plus room for future expansions. In addition to La Porte favorable location, our executive management is comprised of (6) senior members of which (3) are La Porte High School graduates and (2) others have lived and/or worked in La Porte for over 20 years. We not only have a commitment to make the business grow, but also a personal connection to the community. Some of the many benefits to the local La Porte economy and community upon will be: -Several of our Employees are looking to relocate and buy homes in the area -We often entertain our clients and staff at local restaurants and golf courses -Development of Vocational programs to train students and recent graduates with vocational skills Drafting / Engineering o Welding / Fabrication o Machining o June 30, 2014 Page: 1 of 3 Rotor Facility Component Facility 12022 N. P Street 8525 Freeland St La Porte, TX 77571 Houston, TX 77061 713-364-7500 713-364-7500 Proposed Expansion ACT Independent Turbo Services is proposing to custom build 48,000sqft of NEW crane building and offices, and move our existing equipment, operations and (73) full time personnel from our Hobby Location to La Porte. This will require a new build, likely utilizing local contractor(s) on undeveloped land. Assuming all hurdles are met and the company receives approval from the ACT Board of Directors for the relocation, we would anticipate the start of the project in September of 2014 and completion by the end of 2015. The Taxable Value of the proposed improvement is estimated to be: -$3.6MM in New Building Construction -$1.0MM in New Equipment -$2.0MM in movement of existing equipment and inventory -$6.6MM Total estimated property & equipment value -This would lead to an estimated Yearly City Tax Revenue of $46,860 -This would lead to an estimated Yearly LPISD Tax Revenue of $87,780 Employee Relocation ACT Independent Turbo Services currently employs (80) people at various levels within the organization. As of June 2014 we have (73) personnel reporting full time to our Hobby facility and (7) personnel reporting full time to our La Porte Facility. Below is a breakdown of Employees throughout ACT: -(6) Executive Management -(9) Sales, Accounting and Support Staff -(12) Engineering & Supervision -(53) Hourly Technicians As a leader in the service business, ACT Independent Turbo Services also offers competitive salary and benefits. Many of our Hourly employees make between $20 - $30/hr. Our supervision and engineering staff are typically compensated at our above industry average. All Full Time employees (Hourly and Salaried) are eligible to receive benefits that include generous insurance benefits (medical, vision, dental), 401(k) plan with matching program, disability & life insurance, profit sharing incentives, paid vacation and holidays. If approved and finalization of construction, all personnel would report to the La Porte facility. June 30, 2014 Page: 2 of 3 Rotor Facility Component Facility 12022 N. P Street 8525 Freeland St La Porte, TX 77571 Houston, TX 77061 713-364-7500 713-364-7500 La Porte Development Corporation Board Assistance Since 2011, ACT Independent Turbo Services has added additional service offerings and experienced rapid growth. The company is prepared to invest in additional capacity and capabilities, but the move to La Porte at this time is very cost prohibitive. Below is a summary of the costs associated with moving the business to La Porte versus expanding at our existing location near Hobby Airport. Hobby FacilityEstimated Costs Additional Building and Laydown Capacity Note: The Building Costs would be born by the developer Developer Cost - Estimated - 15,000sqftand amortized to ACT as lease costs. This is to Expand Hobby $1,700,000 - Pavement ImprovementsFacility to Match Capacity with Proposed LP Facility. Business Interruption$ 200,000 Project Management Expenses$ 75,000 ACT Independent Turbo Services 2014/2015 Expenses$ 275,000 La Porte FacilityEstimated Costs Developer Cost - Estimated NEW 40,000sqft Crane & Offices Building Note: The Building Costs would be born by the developer $2,600,000 and amortized to ACT as lease costs. Developer Cost - Estimated NEW 6,000sqft Main Office Building & Employee Parking $1,000,000 Note: Previous Management signed long term lease. The Mitigated Lease Obligations at Hobby until early 2018$ 600,000 total lease obligation is over $1MM. This is the estimated mitigated value. Business Interruption$ 400,000 Moving Expenses$ 450,000 Project Management$ 150,000 ACT Independent Turbo Services 2014/2015 Expenses$ 1,600,000 The company Board of Directors has indicated that approval may be given for relocation if management can keep the total expansion and relocation cost to the company at less than $1MM total. The management team feels that with a commitment of assistance from the Development Corporation of $450k and internal efforts by management on the continued mitigation of existing lease obligations, moving expenses, business interruption and overall project costs that we can achieve the $1MM target. June 30, 2014 Page: 3 of 3 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 Tax1,497,8291,892,5611,708,766 Interest Income3,8315,5653,832 Total Revenues1,501,6601,898,1261,712,598 Equals Total Resources4,269,8154,666,2813,909,533 Less Year to Date Expenditures: Payroll55,93569,10753,726 Supplies1,1151,5441,730 Services & Charges (Memberships, Training, Advertising, Legal, Utilities)276,444599,318544,697 Debt Service Transfer790,454948,545410,061 * Capital Projects Transfers164,167177,000695,000 ** Total Expenditures1,288,1151,795,5141,705,214 Estimated Year to Date Fund Balance as of 9/30/2014$2,981,700$2,870,767$2,204,319 Commitments Project Nebula/Ineos$700,000 Intergulf45,000 Rob Johnson Interests40,000 Richard Industrial Group15,000 Debt Service Reserve948,545 $1,748,545 Adjusted Year to Date Fund Balance$1,122,222 Projection Through Year End Adjusted Year to Date Fund Balance$1,122,222 Plus: Estimated Sales Tax262,200 Less: Estimated Operational Costs- Less: Debt Service Transfers- Less: Capital Projects Transfers- Projected Year End Fund Balance$1,384,422 Sales tax revenues for Fiscal Year 2015 are estimated to be $2,208,630. (2.5% 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.