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:
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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.