HomeMy WebLinkAbout07-07-15 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
July 7, 2015July 7, 2015, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte,
Texas, beginning
at 5:00 PM to consider the following items of business:at 5:00 PM to consider the following items of business:
1.CALL TO ORDERCALL TO ORDER
2.AUTHORIZATIONSAUTHORIZATIONS
Consider approval or other action regarding minutes of the meeting of the La Porte Consider approval or other action regarding minutes of the meeting of the La Porte
(a)
Development Corporation Board held on June 1, 2015 Development Corporation Board held on June 1, 2015 -- P. Fogarty P. Fogarty
3.DISCUSSION OR OTHER ACTIONDISCUSSION OR OTHER ACTION
Discussion and possible action regarding the use of Workforce Development Funds Discussion and possible action regarding the use of Workforce Development Funds - S.
(a)
LivingstonLivingston
Discussion and possible action regarding the current state of retail development, and future Discussion and possible action regarding the current state of retail development, and future
Discussion and possible action regarding the current state of retail development, and future Discussion and possible action regarding the current state of retail development, and future
(b)(b)
opportunities for retail development opportunities for retail development -- S. Livingston S. Livingston
Discussion and possible action regarding expansion of the boundaries of the La Porte Discussion and possible action regarding expansion of the boundaries of the La Porte
(c)
Enhancement Grant Program and transferring $107,669.00 from the La Porte Development Enhancement Grant Program and transferring $107,669.00 from the La Porte Development
Corporation General Fund Balance to Capital Improvement Projects Account 015Corporation General Fund Balance to Capital Improvement Projects Account 015-9892-993
-- S. Livingston S. Livingston
Discussion and possible action regarding the proposed budget for La Porte Development Discussion and possible action regarding the proposed budget for La Porte Development
(d)
Corporation Board for Fiscal Year 2015Corporation Board for Fiscal Year 2015--2016 2016 -- S. Livingston S. Livingston
Discussion and possible action regarding additional incentive programs Discussion and possible action regarding additional incentive programs -- S. Livingston S. Livingston
(e)
4.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING
5.STAFF REPORTSSTAFF REPORTS
Receive Financial Report Receive Financial Report -- M. Dolby M. Dolby
(a)
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.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 July 7, 2015, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the July 7, 2015, agenda of items to be
considered by the Board of the La Porte Development
Corporation was placed on the City Hall Bulletin Board on June 30, 2015.Corporation was placed on the City Hall Bulletin Board on June 30, 2015.
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 JUNE 1, 2015
June 1, 2015,
The City of La Porte Development Corporation Board met on at the City Hall Council Chambers,
5:00 p.m
604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of business:
1. CALL TO ORDER
President Richard Warren called the meeting to order at 5:00 p.m. The following members of the
La Porte Development Corporation Board were present: Board members Martin, Ojeda, Clausen,
Engelken and Woodard. Absent: Vice-President Cooksley. Staff Present: Corby Alexander, Patrice
Fogarty, Scott Livingston, Michael Dolby, Traci Leach, and Clark Askins.
2. AUTHORIZATIONS
(a)
Consider approval or other action of minutes of the meeting of the La Porte Development
Corporation Board held on May 13, 2015 S. Harris
Board member Engelken moved to approve the minutes of the meeting of the La Porte Development
MOTION PASSED
Corporation Board held on May 13, 2015. Board member Clausen seconded. .
Ayes: President Warren, Board members Woodard, Ojeda, Engelken,
Clausen and Martin
Nays: None
Absent: Vice-President Cooksley
(b)
Consider approval or other action regarding
not to exceed $300,000.00 and authorizing Board President Richard Warren
to sign and execute such economic development incentive agreement S. Livingston
Economic Development Coordinator Scott Livingston presented a summary and two options for a
development agreement.
Board member Woodard asked why Board members are being presented the two options if terms of a
development agreement in an amount not to exceed $300,000.00 had been previously agreed upon.
Economic Development Coordinator Scott Livingston advised the past practice has been for the Board
to approve the project; the project is then presented to City Council; and at a later date, the agreement
comes back to the Board to be authorized and executed. Mr. Livingston also advised City Council has
Page 1 of 3
June 1, 2015, La Porte Development Corporation Board Minutes
requested to see the terms of the development agreement before authorizing the expenditures for the
project. Board member Woodard asked if the second option being presented is acceptable to Gantstein
Esquire, LLC. Mr. Livingston responded no. Board member Woodard asked if the second option is a
request from City Council. City Manager Corby Alexander clarified City Council was not comfortable
authorizing the expenditure before viewing the actual terms of the development agreement, and the
second option is not a request of City Council.
Board member Woodard moved to accept and approve Option A for a development agreement with
LLC. in an amount not to exceed $300,000.00, and authorized Board President
Richard Warren to sign and execute the economic development incentive agreement. President Warren
MOTION PASSED
seconded. .
Ayes: President Warren, Board members Woodard, Engelken, Clausen
and Martin
Nays: Board member Ojeda
Absent: Vice-President Cooksley
Board member Ojeda commented she does not like either Option A or B and disagrees with the section
that states, No payment will be made for annual taxable retail sales which are less than $3.75 million.
Board member Ojeda commented $3.75 million is a very high number with the economy being
unpredictable and also advised she supports the full pro-rata scheme, and is in favor of the Pipeline
Grill project.
3. DISCUSSION OR OTHER ACTION
(a)
Discussion or other action authorizing staff to submit any proposed revisions and/or amendments
to the Bylaws of the La Porte Development Corporation to the La Porte City Council for approval
S. Livingston
Economic Development Coordinator Scott Livingston presented a summary.
Board member Woodard suggested a workshop meeting to discuss the current bylaws.
City Manager Corby Alexander asked Board members to consider forwarding any input pertaining to
changes and/or additions to the bylaws within the next two weeks to staff so an outline of suggested
changes can be prepared.
Board member Clausen suggested Board members review the bylaws; send items that may need to be
changed to Corby Alexander or Scott Livingston for a list/outline, and staff can propose paragraphs to
speed the process along.
City Secretary Patrice Fogarty advised Board members she will forward the latest signed copy of
bylaws for their review.
(b)
Discussion or other action authorizing staff to document rules and/or a policy for La Porte
Development Corporation meeting norms, which the La Porte Development Corporation Board may
wish to adopt S. Livingston
Economic Development Coordinator Scott Livingston presented a summary.
Board member Ojeda proposed establishing guidelines for meeting standards that will enhance
productivity during future meetings.
Page 2 of 3
June 1, 2015, La Porte Development Corporation Board Minutes
Board member Engelken commented the Board should be following Robert Rules of Order. Board
member Ojeda commented she does not feel the rules express how to act courteously and respectfully
during a meeting. Board member Ojeda also added City Secretary Patrice Fogarty would be a benefit
to the Board by speaking and addressing Robert Rules of Order. Ms. Fogarty advised she will be willing
to do so. Board Member Ojeda stated the issue is not so much how to conduct a meeting, but the
focus should be on meeting decorum.
4. SET DATE FOR NEXT MEETING
S. Livingston
Board members set the next meeting date tentatively for Tuesday, July 7, 2015, at 5:00 p.m.
5. STAFF REPORT
(a)
Receive Financial Report M. Dolby
Finance Director Michael Dolby was absent from the meeting. Economic Development Coordinator
Scott Livingston provided the Financial Report that was presented at the last meeting.
BOARD MEMBER COMMENTS
regarding matters appearing on agenda; recognition of community
6.
members, city employees, and upcoming events; inquiry of staff regarding specific factual information
or existing policies.
Board member Ojeda asked Economic Development Coordinator Scott Livingston if he researched the
legality of unused workforce funds for possible scholarships. Mr. Livingston advised the information will
be provided at the next meeting; and Assistant City Attorney Clark Askins stated he is researching it.
President Warren thanked everyone for attending the meeting.
7. ADJOURN
There being no further business, Board member Engelken moved to adjourn the meeting at 5:53 p.m.
MOTION PASSED
Board member Woodard seconded. .
Respectfully submitted,
____________________________________
Patrice Fogarty, City Secretary
th
Passed and approved on this 7 day of July, 2015.
____________________________________
President Richard Warren
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June 1, 2015, La Porte Development Corporation Board Minutes
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
July 7, 2015July 7, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
LPDC Fund BalanceLPDC Fund Balance
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
038038--60306030--565565--99979997
Economic Development/TourismEconomic Development/TourismAccount Number:Account Number:
Department:
50,00050,000
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. Local Government Code Chapter 501 Local Government Code Chapter 501
2. Local Government Code Chapter 505 Local Government Code Chapter 505
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Over the past two years, the Board has allocated funding for Workforce Development. This is an area of need Over the past two years, the Board has allocated funding for Workforce Development.
This is an area of need
that has been expressed by industry partners and other economic development partners throughout the Houston that has been expressed by industry partners and other economic development
partners throughout the Houston
Port region. Last month the topic was introduced as to whether or not the Board could use economic development Port region. Last month the topic was introduced as to whether or not
the Board could use economic development
workforce development to award workforce development to award scholarshipsscholarshipsto citizens of La Porte and/or employees of La Porte businesses to citizens of La Porte and/or
employees of La Porte businesses
to obtain primary job trainingprimary job training. .
Chapters 501Chapters 501--505 of the Local Government Code (505 of the Local Government Code (LGCLGC), ), which govern economic development corporations, do which govern economic
development corporations, do
not use the word not use the word scholarshipscholarship. . Furthermore, these chapters do not expressly authorize the granting of funds Furthermore, these chapters do not expressly
authorize the granting of funds
including through a designated project including through a designated project for the payment of tuition and related schooling costs directly to for the payment of tuition and related
schooling costs directly to
individuals. Therefore, state law governing the operation of economic development corporations does individuals. Therefore, state law governing the operation of economic development
corporations does appear appear
notnot
to allow the La Pore Development Corporation to award funds as to allow the La Pore Development Corporation to award funds as scholarshipsscholarshipsto an individual to pay for
tuition, to an individual to pay for tuition,
room, and/or board expenses. Funds for room, and/or board expenses. Funds for primary job trainingprimary job trainingmay be used in the following two (2) ways: (1) may be used
in the following two (2) ways: (1)
Fund business enterprisesbusiness enterprisesthat are hosting, paying for the primary job training, or conducting the job training for that are hosting, paying for the primary job
training, or conducting the job training for
new and/or retained employees, and/or (2) Fund the support of new and/or retained employees, and/or (2) Fund the support of primary job training facilities for use by institutions
primary job training facilities for use by institutions
of higher educationof higher education..
The LGC offers only two (2) pathways to offer funding for The LGC offers only two (2) pathways to offer funding for workforce developmentworkforce developmentand/or and/or primary
job primary job
training. These are: These are:
LGC 501.101(K) allows funds for a LGC 501.101(K) allows funds for a projectprojectwhich which includes the land, buildings, equipment, facilities, includes the land, buildings,
equipment, facilities,
(1)
expenditures, targeted infrastructure, and improvements that are . . . for the creation or retention of primary jobs . expenditures, targeted infrastructure, and improvements that are
. . . for the creation or retention of primary jobs .
. . and are found by the board of directors to be required or suitable for the development, retention, or expansion of . . and are found by the board of directors to be required or suitable
for the development, retention, or expansion of
((emphasis added). LGC 501.101emphasis added). LGC 501.101
for use by for use by
primaryjob training facilitiesjob training facilities institutions of higher educationinstitutions of higher education
(K) speaks in terms of (K) speaks in terms of primary job training primary job training which are which are
facilitiesfacilities,,used by the institution of higher used by the institution of higher
. In this scenario theIn this scenario the would have to be the recipient of the funds, and the focus is on the would have to be the recipient of the funds, and the focus is on the
education
school school
funding of the facilities, not a particular personfunding of the facilities, not a particular persons education expenses; and s education expenses; and
LGC 501.102 and 501.162 (which is incorporated by LGC 505.151 specifically for Type B Corps) authorizes LGC 501.102 and 501.162 (which is incorporated by LGC 505.151 specifically for
Type B Corps) authorizes
(2)
projects for job training required or suitable for the promotion of development and expansion of job training required or suitable for the promotion of development and expansion of
business business
. . . . . ., , but only where the job training is but only where the job training is offered through a business enterpriseoffered through a business enterprisethat has that has
. . . . . .
enterprises
committed in writing to . . . create new jobs that pay wages that are at least equal to the prevailing wage for the committed in writing to . . . create new jobs that pay wages that
are at least equal to the prevailing wage for the
applicable occupation in the local labor market area or increase its payroll to pay wages that are at least equal to applicable occupation in the local labor market area or increase
its payroll to pay wages that are at least equal to
the prevailing wage for the applicable occupation in the local labor market area.the prevailing wage for the applicable occupation in the local labor market area. When working under
LGC When working under LGC
501.102 and 501.162, project funds for 501.102 and 501.162, project funds for primary job trainingprimary job trainingmust be paid to the must be paid to the that is that is
business enterprisebusiness enterprise
hosting, paying for the primary job training, or conducting the job training for the new or retained employees. hosting, paying for the primary job training, or conducting the job training
for the new or retained employees.
Therefore, the Board has several different venues through which workforce development could be supported. Therefore, the Board has several different venues through which workforce development
could be supported.
Staff will be available to discuss either option.Staff will be available to discuss either option.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Discussion and possible action to provide staff with direction regarding the desired use of workforce development Discussion and possible action to provide staff with direction regarding
the desired use of workforce development
funds, which have been included in the proposed budget. funds, which have been included in the proposed budget.
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE
THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 501.001. SHORT TITLE. This subtitle may be cited as the Development
Corporation Act.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.002. DEFINITIONS. In this subtitle:
(1) "Authorizing unit" means the unit that authorizes the creation of
a corporation under this subtitle.
(2) "Board of directors" means the board of directors of a
corporation.
(3) "Bonds" includes evidences of indebtedness, including bonds and
notes.
(4) "Corporate headquarters facilities" means buildings proposed for
construction or occupancy as the principal office for a business enterprise's
administrative and management services.
(5) "Corporation" means a corporation organized under this subtitle.
(6) "Cost," with respect to a project, has the meaning assigned by
Section501.152.
(7) "County alliance" means two or more counties that jointly
authorize the creation of a corporation under this subtitle.
(8) "District" means a conservation and reclamation district
established under Section 59, Article XVI, Texas Constitution.
(9) "Economic development office" means the Texas Economic Development
and Tourism Office within the office of the governor.
(10) "Governing body" means the commissioners court of a county or the
governing body of a municipality or district.
(11) "Institution of higher education" has the meaning assigned by
Section61.003, Education Code.
(12) "Primary job" means:
(A) a job that is:
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(i) available at a company for which a majority of the
products or services of that company are ultimately exported to regional,
statewide, national, or international markets infusing new dollars into the
local economy; and
(ii) included in one of the following sectors of the North
American Industry Classification System (NAICS):
NAICS Sector #Description
111Crop Production
112Animal Production
113Forestry and Logging
11411Commercial Fishing
115Support Activities for Agriculture and Forestry
211-213Mining
221Utilities
311-339Manufacturing
42Wholesale Trade
48-49Transportation and Warehousing
51 (excluding 512131 andInformation (excluding motion picture theaters and drive-
512132)in motion picture theaters)
523-525Securities, Commodity Contracts, and Other Financial
Investments and Related Activities; Insurance Carriers
and Related Activities; Funds, Trusts, and Other
Financial Vehicles
5413, 5415, 5416, 5417, andArchitectural, Engineering, and Related Services;
5419 Computer System Design and Related Services; Management,
Scientific, and Technical Consulting Services;
Scientific Research and Development Services; Other
Professional, Scientific, and Technical Services
551Management of Companies and Enterprises
56142Telephone Call Centers
922140Correctional Institutions; or
(B) a job that is included in North American Industry
Classification System (NAICS) sector number 928110, National Security, for the
corresponding index entries for Armed Forces, Army, Navy, Air Force, Marine
Corps, and Military Bases.
(13) "Project" means a project specified as such under Subchapter C.
(14) "Resolution" means a resolution, order, ordinance, or other
official action by the governing body of a unit.
(15) "Type A corporation" means a corporation governed by Chapter 504.
(16) "Type B corporation" means a corporation governed by Chapter 505.
(17) "Unit" means a municipality, county, or district that may create
and use a corporation under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.003. WHO MAY BE USER. The following may be a user under this
subtitle:
(1) an individual, a partnership, a corporation, or any other private
entity organized for profit or not for profit; or
(2) a municipality, county, district, other political subdivision,
public entity, or agency of this state or the federal government.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
1, 2009.
Sec. 501.004. LEGISLATIVE FINDINGS; CONSTRUCTION OF SUBTITLE. (a) The
legislature finds that:
(1) the present and prospective right to gainful employment and the
general welfare of the people of this state require as a public purpose the
promotion and development of new and expanded business enterprises and of job
training;
(2) the existence, development, and expansion of business, commerce,
industry, higher education, and job training are essential to the economic
growth of this state and to the full employment, welfare, and prosperity of
residents of this state;
(3) the assistance provided by corporations in promoting higher
education opportunities encourages and fosters the development and
diversification of the economy of this state and the elimination of unemployment
and underemployment in this state;
(4) the means authorized by this subtitle and the assistance provided
by this subtitle, especially with respect to financing, are in the public
interest and serve a public purpose of this state in promoting the welfare of
the residents of this state economically by securing and retaining business
enterprises and as a result maintaining a higher level of employment, economic
activity, and stability;
(5) community industrial development corporations in this state have
invested substantial money in successful industrial development projects and
have experienced difficulty in undertaking additional industrial development
projects because of the partial inadequacy of the community industrial
development corporations' money or money potentially available from local
subscription sources and the limitations of local financial institutions in
providing additional and sufficiently large first mortgage loans; and
(6) communities in this state have been at a critical disadvantage in
competing with communities in other states for the location or expansion of
business enterprises because of the availability and prevalent use in all other
states of financing and other special incentives, and, for that reason, the
issuance of revenue bonds under this subtitle by a corporation on behalf of
political subdivisions of this state for the promotion and development of new
and expanded business enterprises to provide and encourage employment and the
public welfare is in the public interest and is a public purpose.
(b) This subtitle shall be construed in conformity with the intention of
the legislature expressed in this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
1, 2009.
Sec. 501.005. ADOPTION OF ALTERNATE PROCEDURE. If a court holds that a
procedure under this subtitle violates the federal or state constitution, a
corporation by resolution may provide an alternate procedure that conforms to
the constitution.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.006. USE OF CORPORATION TO FINANCE PROJECT. A unit may use a
corporation to issue bonds on the unit's behalf to finance the cost of a
project, including a project in a federally designated empowerment zone or
enterprise community or in an enterprise zone designated under Chapter 2303,
Government Code, to promote and develop new and expanded business enterprises
for the promotion and encouragement of employment and the public welfare.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.007. LENDING CREDIT OR GRANTING PUBLIC MONEY. (a) Except as
provided by Subsection (b), a unit may not lend its credit or grant public money
or another thing of value in aid of a corporation.
(b) A municipality may grant public money to a corporation under a
contract authorized by Section 380.002.
(c) The grants, loans, expenditures, and tax exemptions authorized by this
subtitle in connection with a project and authorized by a corporation in
accordance with this subtitle constitute the making of loans or grants of public
money or constitute other actions authorized by Section 52-a, Article III,
Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.011(a), eff.
September 1, 2009.
Sec. 501.008. LIMITATION ON FINANCIAL OBLIGATION. A corporation may not
incur a financial obligation that cannot be paid from:
(1) bond proceeds;
(2) revenue realized from the lease or sale of a project;
(3) revenue realized from a loan made by the corporation to wholly or
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
partly finance or refinance a project; or
(4) money granted under a contract with a municipality under Section
380.002.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.009. POLICE POWERS NOT AFFECTED. This subtitle does not deprive
this state or a governmental subdivision of this state of its police powers over
a corporation's property and does not impair any police power over the property
that is otherwise provided by law to any official or agency of this state or
its governmental subdivisions.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.010. DELEGATION OF UNIT'S SOVEREIGN POWERS PROHIBITED. A unit
may not delegate to a corporation any of the unit's attributes of sovereignty,
including the power to tax, the power of eminent domain, and the police power.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.011. REFERENCE TO ARTICLES OF INCORPORATION OR CERTIFICATE OF
FORMATION. (a) With respect to a corporation created under the Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) before
January 1, 2006, a reference in any law of this state or in the corporation's
governing documents to "articles of incorporation" means, for purposes of this
subtitle, the corporation's certificate of formation.
(b) With respect to a corporation that is created under the Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes) before
January 1, 2006, and continues to operate under articles of incorporation, a
reference in this subtitle or any other law of this state or in the
corporation's governing documents to "certificate of formation" means the
corporation's articles of incorporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER B. CREATION AND OPERATION OF CORPORATION
Sec. 501.051. AUTHORITY TO CREATE. (a) Three or more individuals who are
qualified voters of a unit may file with the unit's governing body a written
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
application requesting the unit to authorize creation of a corporation to act on
behalf of the unit. The governing body may not charge a filing fee for the
application.
(b) A corporation may be created only if the governing body of the unit
by resolution:
(1) determines that the creation of the corporation is advisable; and
(2) approves the certificate of formation proposed to be used in
organizing the corporation.
(c) A unit may authorize the creation of one or more corporations if the
resolution authorizing the creation of each corporation specifies the public
purpose of the unit to be furthered by the corporation. The specified public
purpose must be limited to the promotion and development under this subtitle of
enterprises to promote and encourage employment and the public welfare.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.052. NONMEMBER, NONSTOCK FORM OF CORPORATION. A corporation is a
nonmember, nonstock corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.053. CORPORATION NONPROFIT; NET EARNINGS. (a) A corporation is
nonprofit, and the corporation's net earnings remaining after payment of its
expenses may not benefit an individual, firm, or corporation, except as provided
by Subsection (b).
(b) If the board of directors determines that sufficient provision has
been made for the full payment of the corporation's expenses, bonds, and other
obligations, any net earnings of the corporation subsequently accruing shall be
paid to the corporation's authorizing unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.054. GENERAL POWERS, PRIVILEGES, AND FUNCTIONS. (a) A
corporation has the powers, privileges, and functions of a nonprofit corporation
incorporated under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
seq., Vernon's Texas Civil Statutes) or formed under the Texas Nonprofit
Corporation Law, as described by Section 1.008, Business Organizations Code. To
the extent that the provisions governing powers, privileges, and functions of a
nonprofit corporation under those laws are in conflict with or inconsistent
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
with provisions of this subtitle governing powers, privileges, and functions of
a nonprofit corporation, the provisions of this subtitle prevail.
(b) A corporation:
(1) has all powers incidental to or necessary for the performance of
the powers provided by Sections 501.059,501.060,501.064, 501.153-501.155,
501.159,501.201(a),501.208,501.209,501.214, and 501.402; and
(2) with respect to a project, may exercise all powers necessary or
appropriate to effect a purpose for which the corporation is organized, subject
to the control of the governing body of the corporation's authorizing unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.055. CONSTITUTED AUTHORITY OR INSTRUMENTALITY. (a) A
corporation is a constituted authority and an instrumentality, within the
meaning of the United States Department of the Treasury regulations and the
Internal Revenue Service rulings adopted under Section 103, Internal Revenue
Code of 1986, as amended, including regulations and rulings adopted under
Section 103, Internal Revenue Code of 1954, and may act on behalf of the
corporation's authorizing unit for the specific public purpose authorized by the
unit.
(b) A corporation is not a political subdivision or a political
corporation for purposes of the laws of this state, including Section 52,
Article III, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.056. CONTENTS OF CERTIFICATE OF FORMATION. The certificate of
formation of a corporation must state:
(1) the name of the corporation;
(2) that the corporation is a nonprofit corporation;
(3) the duration of the corporation, which may be perpetual;
(4) the specific purpose for which the corporation is organized and
may issue bonds on behalf of the unit;
(5) that the corporation has no members and is a nonstock corporation;
(6) any provision consistent with law for the regulation of the
corporation's internal affairs, including any provision required or permitted by
this subtitle to be stated in the bylaws;
(7) the street address of the corporation's initial registered office
and the name of the corporation's initial registered agent at that address;
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(8) the number of directors of the initial board of directors and the
name and address of each initial director;
(9) the name and street address of each organizer; and
(10) that the unit has:
(A) by resolution specifically authorized the corporation to act
on the unit's behalf to further the public purpose stated in the resolution and
the certificate of formation; and
(B) approved the certificate of formation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.057. FILING OF CERTIFICATE OF FORMATION AND DELIVERY OF
CERTIFICATE EVIDENCING FILING. (a) If the unit's governing body adopts a
resolution under Section 501.051, the certificate of formation may be filed as
provided by this section.
(b) Three originals of the certificate of formation shall be delivered to
the secretary of state. If the secretary of state determines that the
certificate of formation conforms to this subchapter, the secretary of state
shall:
(1) endorse the word "Filed" and the date of the filing on each
original certificate of formation;
(2) file one of the original certificates of formation in the
secretary of state's office;
(3) issue two certificates evidencing the filing of the certificate of
formation;
(4) attach to each certificate evidencing the filing of the
certificate of formation an original of the certificate of formation; and
(5) deliver a certificate evidencing the filing of the certificate of
formation and the attached certificate of formation to:
(A) the organizers or the organizers' representatives; and
(B) the governing body of:
(i) the corporation's authorizing unit; or
(ii) any county in the county alliance that authorized the
creation of the corporation, for a county alliance corporation.
(c) The governing body of a county to which a certificate evidencing the
filing of the certificate of formation and the attached certificate of formation
are delivered under Subsection (b)(5)(B)(ii) shall provide photocopies of the
certificate evidencing the filing of the certificate of formation and the
attached certificate of formation to each other member of the county alliance.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.058. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING. (a) A
corporation's existence begins when the certificate evidencing the filing of
its certificate of formation is issued.
(b) After the issuance of the certificate evidencing the filing of the
certificate of formation, the formation of the corporation may not be contested
for any reason.
(c) A certificate evidencing the filing of the certificate of formation is
conclusive evidence that:
(1) the organizers and the unit have performed all conditions
precedent for the formation of the corporation; and
(2) the corporation is formed under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.059. CORPORATE SEAL. A corporation may have a corporate seal and
with respect to a project may impress, affix, or otherwise reproduce the seal
or a facsimile of the seal on an instrument required to be executed by the
corporation's appropriate officers.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.060. MAY SUE AND BE SUED. With respect to a project, a
corporation may sue, be sued, complain, and defend in the corporation's name.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.061. CORPORATION'S ORGANIZATION NOT RESTRICTED. Except as
provided by this subtitle, no proceeding, notice, or approval is required for
the organization of a corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.062. BOARD OF DIRECTORS. (a) All of the powers of a corporation
are vested in a board of directors consisting of three or more directors
appointed by the governing body of the corporation's authorizing unit.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(b) A director serves for a term of not more than six years.
(c) The governing body of the corporation's authorizing unit may remove a
director for cause or at will.
(d) A director serves without compensation, but is entitled to
reimbursement for actual expenses incurred in the performance of the director's
duties under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.063. ORGANIZATIONAL MEETING. (a) After issuance of the
certificate evidencing the filing of the certificate of formation, the board of
directors named in the certificate of formation shall hold an organizational
meeting in this state to adopt bylaws and elect officers and for other purposes.
(b) Not later than the third day before the date of the meeting, the
organizers who call the meeting shall give notice by mail of the time and place
of the meeting to each director named in the certificate of formation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.064. BYLAWS. (a) A corporation may adopt and amend bylaws for
the administration and regulation of the corporation's affairs.
(b) The board of directors shall adopt a corporation's initial bylaws.
(c) The bylaws and each amendment of the bylaws must:
(1) be consistent with state law and with the certificate of formation
of the corporation; and
(2) be approved by resolution of the governing body of the
corporation's authorizing unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.065. OFFICERS. (a) A corporation has the following officers:
(1) a president;
(2) at least one vice president;
(3) a secretary;
(4) a treasurer; and
(5) other officers or assistant officers considered necessary.
(b) An officer of the corporation is elected or appointed at the time, in
the manner, and for the term prescribed by the certificate of formation or
bylaws, except that an officer's term may not exceed three years. In the
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
absence of provisions in the certificate of formation or the bylaws prescribing
the selection or terms of officers, the board of directors shall annually elect
or appoint officers.
(c) A person may hold more than one office, except that the same person
may not hold the offices of president and secretary.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.066. INDEMNIFICATION. (a) In this section, "director or
officer" includes a former director or officer.
(b) Except as provided by Subsection (d), a corporation may indemnify a
director or officer of the corporation for necessary expenses and costs,
including attorney's fees, actually incurred by the director or officer in
connection with a claim asserted against the director or officer, by action in
court or another forum, by reason of the director's or officer's being or having
been a director or officer of the corporation.
(c) Except as provided by Subsection (d), if a corporation has not fully
indemnified a director or officer under Subsection (b), the court in a
proceeding in which a claim is asserted against the director or officer or a
court having jurisdiction over an action brought by the director or officer on a
claim for indemnity may assess indemnity against the corporation or the
corporation's receiver or trustee. The assessment must equal the amount that
the director or officer paid to satisfy the judgment or compromise the claim,
including attorney's fees and not including any amount paid to the corporation,
to the extent that:
(1) the amount paid was actually and necessarily incurred; and
(2) the court considers the amount paid reasonable and equitable.
(d) A corporation may not indemnify a director or officer for a matter in
which the director or officer is guilty of negligence or misconduct. A court
may assess indemnity against the corporation only if the court finds that the
director or officer was not guilty of negligence or misconduct in the matter for
which indemnity is sought.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.067. INSURANCE AND BENEFITS. (a) Notwithstanding any law to the
contrary and with the consent of the corporation's authorizing unit, a
corporation may obtain:
(1) health benefits coverage, liability coverage, workers'
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
compensation coverage, and property coverage under the authorizing unit's
insurance policies, through self-funded coverage, or under coverage provided
under an interlocal agreement with a political subdivision; or
(2) retirement benefits under a retirement program the authorizing
unit participates in or operates.
(b) Health benefits coverage may be extended to the corporation's
directors and employees, and to the dependents of the directors and employees.
(c) Workers' compensation benefits may be extended to the corporation's
directors, employees, and volunteers.
(d) Liability coverage may be extended to protect the corporation and the
corporation's directors and employees.
(e) Retirement benefits may be extended to the corporation's employees.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.068. BOARD MEETINGS; NOTICE OF MEETING. (a) A board of
directors may hold a regular meeting in this state with or without notice as
prescribed by the corporation's bylaws.
(b) A board of directors may hold a special meeting with notice as
prescribed by the corporation's bylaws.
(c) A director's attendance at a board meeting constitutes a waiver of
notice of the meeting, unless the director attends the meeting for the express
purpose of objecting to the transaction of any business at the meeting because
the meeting has not been lawfully called or convened.
(d) Unless required by the corporation's bylaws, notice or waiver of
notice of a board meeting is not required to specify the business to be
transacted at the meeting or the purpose of the meeting.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.069. WAIVER OF NOTICE. If a notice is required to be given to a
director of a corporation under this subtitle or the corporation's certificate
of formation or bylaws, a written waiver of the notice signed by the person
entitled to the notice is equivalent to giving the required notice. The waiver
may be given before or after the time that would have been stated in the notice.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.070. ACTION OF BOARD; QUORUM. (a) A quorum of a board of
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
directors is the lesser of:
(1) a majority of the number of directors:
(A) established by the corporation's bylaws; or
(B) stated in the corporation's certificate of formation, if the
bylaws do not establish the number of directors; or
(2) the number of directors, not less than three, established as a
quorum by the certificate of formation or bylaws.
(b) The act of a majority of the directors present at a meeting at which a
quorum is present is an act of the board of directors, unless the act of a
larger number is required by the certificate of formation or bylaws of the
corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.071. ACTION WITHOUT MEETING. (a) An action that may be taken at
a meeting of a board of directors, including an action required by this
subtitle to be taken at a meeting, may be taken without a meeting if each
director signs a written consent providing the action to be taken.
(b) The consent has the same effect as a unanimous vote and may be stated
as such in a document filed with the secretary of state under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.072. OPEN MEETINGS AND PUBLIC INFORMATION. A board of directors
is subject to the open meetings law, Chapter 551, Government Code, and the
public information law, Chapter 552, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.073. SUPERVISION BY AUTHORIZING UNIT. (a) The corporation's
authorizing unit will approve all programs and expenditures of a corporation and
annually review any financial statements of the corporation.
(b) A corporation's authorizing unit is entitled to access to the
corporation's books and records at all times.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.074. PURCHASING. A corporation may use the reverse auction
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
procedure defined by Section 2155.062(d), Government Code, for purchasing.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.075. EXEMPTION FROM TAXATION. (a) The activities of a
corporation affect all the residents of the corporation's authorizing unit by
the corporation's assuming to a material extent what otherwise might be an
obligation or duty of the authorizing unit, and therefore the corporation is an
institution of purely public charity within the tax exemption of Section 2,
Article VIII, Texas Constitution.
(b) A corporation is exempt from the tax imposed by Chapter 171, Tax Code,
only if the corporation is exempted by that chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER C. AUTHORIZED PROJECTS
Sec. 501.101. PROJECTS RELATED TO CREATION OR RETENTION OF PRIMARY JOBS.
In this subtitle, "project" includes the land, buildings, equipment, facilities,
expenditures, targeted infrastructure, and improvements that are:
(1) for the creation or retention of primary jobs; and
(2) found by the board of directors to be required or suitable for the
development, retention, or expansion of:
(A) manufacturing and industrial facilities;
(B) research and development facilities;
(C) military facilities, including closed or realigned military
bases;
(D) transportation facilities, including airports, hangars,
railports, rail switching facilities, maintenance and repair facilities, cargo
facilities, related infrastructure located on or adjacent to an airport or
railport facility, marine ports, inland ports, mass commuting facilities, and
parking facilities;
(E) sewage or solid waste disposal facilities;
(F) recycling facilities;
(G) air or water pollution control facilities;
(H) facilities for furnishing water to the public;
(I) distribution centers;
(J) small warehouse facilities capable of serving as decentralized
storage and distribution centers;
(K) primary job training facilities for use by institutions of
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
higher education; or
(L) regional or national corporate headquarters facilities.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.012(a), eff.
September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 150 (S.B. 2052), Sec. 1, eff. September 1,
2009.
Sec. 501.102. PROJECTS RELATED TO CERTAIN JOB TRAINING. In this subtitle,
"project" includes job training required or suitable for the promotion of
development and expansion of business enterprises and other enterprises
described by this subtitle, as provided by Section 501.162.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.103. CERTAIN INFRASTRUCTURE IMPROVEMENT PROJECTS. In this
subtitle, "project" includes expenditures that are found by the board of
directors to be required or suitable for infrastructure necessary to promote or
develop new or expanded business enterprises, limited to:
(1) streets and roads, rail spurs, water and sewer utilities, electric
utilities, or gas utilities, drainage, site improvements, and related
improvements;
(2) telecommunications and Internet improvements; or
(3) beach remediation along the Gulf of Mexico.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.104. PROJECTS RELATED TO CERTAIN MILITARY BASES OR MISSIONS. In
this subtitle, "project" includes the infrastructure, improvements, land
acquisition, buildings, or expenditures that:
(1) are for the creation or retention of primary jobs or jobs that are
included in North American Industry Classification System (NAICS) sector number
926120, Regulation and Administration of Transportation Programs, for the
corresponding index entry for Coast Guard (except the Coast Guard Academy); and
(2) are found by the board of directors to be required or suitable
for:
(A) promoting or supporting a military base in active use to
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
prevent the possible future closure or realignment of the base;
(B) attracting new military missions to a military base in active
use; or
(C) redeveloping a military base that has been closed or
realigned, including a military base closed or realigned according to the
recommendation of the Defense Base Closure and Realignment Commission under the
Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.105. CAREER CENTER PROJECTS OUTSIDE OF JUNIOR COLLEGE DISTRICT.
In this subtitle, "project" includes the land, buildings, equipment, facilities,
improvements, and expenditures found by the board of directors to be required
or suitable for use for a career center, if the area to be benefited by the
career center is not located in the taxing jurisdiction of a junior college
district.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.106. AIRPORT FACILITIES OR OTHER PROJECTS BY CORPORATIONS
AUTHORIZED BY CERTAIN BORDER MUNICIPALITIES. (a) This section applies only to
a corporation authorized to be created by a municipality, any part of which is
located within 25 miles of an international border.
(b) For a corporation to which this section applies, in this subtitle,
"project" includes the land, buildings, facilities, infrastructure, and
improvements that:
(1) the corporation's board of directors finds are required or
suitable for the development or expansion of airport facilities; or
(2) are undertaken by the corporation if the municipality that
authorized the creation of the corporation has, at the time the corporation
approves the project as provided by this subtitle:
(A) a population of less than 50,000; or
(B) an average rate of unemployment that is greater than the state
average rate of unemployment during the most recent 12-month period for which
data is available that precedes the date the project is approved.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.107. INFRASTRUCTURE PROJECTS BY CORPORATIONS AUTHORIZED BY
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
MUNICIPALITIES IN CERTAIN BORDER COUNTIES. (a) This section applies only to a
corporation that:
(1) is authorized to be created by a municipality wholly or partly
located in a county that:
(A) is bordered by the Rio Grande;
(B) has a population of at least 500,000; and
(C) has wholly or partly within its boundaries at least four
municipalities each of which has a population of at least 25,000; and
(2) does not support a project, as defined by this subchapter, with
sales and use tax revenue collected under Chapter 504 or 505.
(b) For a corporation to which this section applies, in this subtitle,
"project" includes expenditures found by the board of directors to be required
or suitable for infrastructure necessary to promote or develop new or expanded
business enterprises, including airports, ports, and sewer or solid waste
disposal facilities.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
For expiration of this section, see Subsection (c).
Sec. 501.108. INFRASTRUCTURE IMPROVEMENT PROJECTS BY CORPORATIONS
AUTHORIZED BY CERTAIN COASTAL MUNICIPALITIES. (a) This section applies only to
a corporation the creation of which was authorized by a municipality that:
(1) has a population of 10,000 or more;
(2) is located in a county bordering the Gulf of Mexico or the Gulf
Intracoastal Waterway; and
(3) has, or is included in a metropolitan statistical area of this
state that has, an unemployment rate that averaged at least two percent above
the state average for the most recent two consecutive years for which statistics
are available.
(b) For a corporation to which this section applies, "project" includes
expenditures found by the board of directors to be required or suitable for
infrastructure improvements necessary to develop and revitalize areas in the
corporation's authorizing municipality, including:
(1) streets and roads, rail spurs, water and sewer utilities, electric
utilities, gas utilities, drainage, site improvements, and related
improvements;
(2) telecommunications, data, or Internet improvements; or
(3) facilities designed to remediate, mitigate, or control erosion,
including coastal erosion along the Gulf of Mexico or the Gulf Intracoastal
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Waterway.
(c) This section expires September 1, 2017.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1281 (H.B. 1966), Sec. 1, eff. June 14,
2013.
SUBCHAPTER D. CORPORATE POWERS AND LIMITATIONS RELATING TO PROJECTS
Sec. 501.151. AUTHORITY TO FINANCE PROJECT. A corporation is a
constituted authority for the purpose of financing one or more projects.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.152. DEFINITION OF COST WITH RESPECT TO PROJECT. In this
subtitle, "cost," with respect to a project, means the cost of the acquisition,
cleanup, construction, reconstruction, improvement, or expansion of a project,
including:
(1) the cost of acquiring all land, rights-of-way, property rights,
easements, and interests;
(2) the cost of all machinery and equipment;
(3) financing charges;
(4) the cost of inventory, raw materials, and other supplies;
(5) research and development costs;
(6) interest accruing before and during construction and until the
first anniversary of the date the construction is completed, regardless of
whether capitalized;
(7) necessary reserve funds;
(8) the cost of estimates, including estimates of cost and revenue;
(9) the cost of engineering or legal services;
(10) the cost of plans, specifications, or surveys;
(11) other expenses necessary or incident to determining the
feasibility and practicability of acquiring, cleaning, constructing,
reconstructing, improving, and expanding the project;
(12) administrative expenses; and
(13) other expenditures necessary or incident to:
(A) acquiring, cleaning, constructing, reconstructing, improving,
and expanding the project;
(B) placing the project in operation; and
(C) financing or refinancing the project, including refunding any
outstanding obligations, mortgages, or advances issued, made, or given by a
person for a cost described by this section.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.153. LEASE OR SALE OF PROJECT. (a) A corporation may:
(1) lease all or any part of a project to a user, for the rental and
on the terms that the corporation's board of directors considers advisable and
not in conflict with this subtitle; or
(2) sell, by installment payments or otherwise, and convey all or any
part of a project to a user for the purchase price and on the terms the
corporation's board of directors considers advisable and not in conflict with
this subtitle.
(b) A corporation may grant a lessee an option to purchase all or any part
of a project when all bonds of the corporation delivered to provide those
facilities have been paid or provision has been made for the bonds' final
payment. This subsection is procedurally exclusive for authority to convey or
grant an option to purchase all or part of a project, and reference to another
law is not required.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.154. CONVEYANCE OF PROPERTY TO INSTITUTION OF HIGHER EDUCATION.
With respect to a project, a corporation may donate, exchange, convey, sell, or
lease land, improvements, or any other interest in real property, fixtures,
furnishings, equipment, or personal property to an institution of higher
education for a legal purpose of the institution, on the terms the corporation's
board of directors considers advisable and not in conflict with this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.155. LOAN TO FINANCE PROJECT. (a) A corporation may make a
secured or unsecured loan to a user for the purpose of providing temporary or
permanent financing or refinancing of all or part of the cost of a project,
including the refunding of an outstanding obligation, mortgage, or advance
issued, made, or given by a person for the cost of a project.
(b) For a loan made under this section, a corporation may charge and
collect interest on the terms the corporation's board of directors considers
advisable and not in conflict with this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
1, 2009.
Sec. 501.156. AGREEMENT MUST BENEFIT CORPORATION. An agreement relating
to a project must be for the benefit of the corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.157. DEFAULT ON AGREEMENT; ENFORCEMENT. An agreement relating to
a project must provide that if a default occurs in the payment of the principal
of or the interest or premium on the bonds or in the performance of any
agreement contained in a proceeding, mortgage, or instrument, the payment or
performance may be enforced by:
(1) mandamus; or
(2) the appointment of a receiver in equity with the power to:
(A) charge and collect rents, purchase price payments, and loan
payments; and
(B) apply the revenue from the project in accordance with the
resolution, mortgage, or instrument.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.158. PERFORMANCE AGREEMENTS. (a) A corporation may not provide
a direct incentive to or make an expenditure on behalf of a business enterprise
under a project as defined by Subchapter C of this chapter or by Subchapter D,
Chapter 505, unless the corporation enters into a performance agreement with the
business enterprise.
(b) A performance agreement between a corporation and business enterprise
must:
(1) provide, at a minimum, for a schedule of additional payroll or
jobs to be created or retained and capital investment to be made as
consideration for any direct incentives provided or expenditures made by the
corporation under the agreement; and
(2) specify the terms under which repayment must be made if the
business enterprise does not meet the performance requirements specified in the
agreement.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.159. POWERS CONCERNING PROJECTS; JURISDICTION. (a) A
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
corporation may acquire, by construction, devise, purchase, gift, lease, or
otherwise, or any one or more of those methods and may construct, improve,
maintain, equip, and furnish one or more projects undertaken by another
corporation or located within this state, including within the coastal waters of
this state, and within or partially within the limits of the authorizing unit
of the corporation or within the limits of another unit, if the governing body
of the other corporation or the unit requests the corporation to exercise its
powers within that unit.
(b) A corporation may recover the costs of an investment under Subsection
(a) from a unit or another corporation under a contract with a limited or
unlimited duration.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.160. OWNING OR OPERATING PROJECT AS BUSINESS. (a) Except as
provided by Subsection (d), a corporation may not own or operate a project as a
business other than:
(1) as a lessor, seller, or lender; or
(2) according to the requirements of any trust agreement securing the
credit transaction.
(b) The user under a lease, sale, or loan agreement relating to a project
is considered the owner of the project for purposes of ad valorem taxes, sales
and use taxes, or any other taxes imposed by this state or a political
subdivision of this state.
(c) Purchasing and holding a mortgage, deed of trust, or other security
interest or contracting for the servicing of a mortgage, deed of trust, or other
security interest is not considered the operation of a project.
(d) A corporation has all the powers necessary to own and operate a
project as a business if the project is a military installation or military
facility that has been closed or realigned, including a military installation or
facility closed or realigned under the Defense Base Closure and Realignment Act
of 1990 (10 U.S.C. Section 2687 note), as amended.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.161. CERTAIN ECONOMIC INCENTIVES PROHIBITED. (a) In this
section, "related party" means a person who owns at least 80 percent of the
business enterprise to which the sales and use tax would be rebated as part of
an economic incentive.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(b) Notwithstanding any other provision of this subtitle, a corporation
may not offer to provide an economic incentive for a business enterprise whose
business consists primarily of purchasing taxable items using a resale
certificate and then reselling those items to a related party.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.162. USE OF TAX REVENUE FOR JOB TRAINING. A corporation may
spend tax revenue received under this subtitle for job training offered through
a business enterprise only if the business enterprise has committed in writing
to:
(1) create new jobs that pay wages that are at least equal to the
prevailing wage for the applicable occupation in the local labor market area; or
(2) increase its payroll to pay wages that are at least equal to the
prevailing wage for the applicable occupation in the local labor market area.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B. 1967),
Sec. 1
For text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B.
2473), Sec. 1, see other Sec. 501.163.
Sec. 501.163. USE OF TAX REVENUE FOR JOB-RELATED SKILLS TRAINING BY
CERTAIN CORPORATIONS. (a) This section applies only to a corporation the
creation of which was authorized by a municipality that:
(1) has a population of 10,000 or more;
(2) is located in a county bordering the Gulf of Mexico or the Gulf
Intracoastal Waterway; and
(3) has, or is included in a metropolitan statistical area of this
state that has, an unemployment rate that averaged at least two percent above
the state average for the most recent two consecutive years for which statistics
are available.
(b) A corporation may spend tax revenue received under this subtitle for
job training that consists of:
(1) providing job-related life skills sufficient to enable an
unemployed individual to obtain employment; and
(2) providing job training skills sufficient to enable an unemployed
individual to obtain employment.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(c) A corporation to which this section applies may contract with any
person to provide the job training authorized under this section.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B. 1967), Sec. 1, eff. June 14,
2013.
Text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B. 2473),
Sec. 1
For text of section as added by Acts 2013, 83rd Leg., R.S., Ch. 1283 (H.B.
1967), Sec. 1, see other Sec. 501.163.
For expiration of this section, see Subsection (c).
Sec. 501.163. USE OF TAX REVENUE FOR HOUSING FACILITIES FOR PUBLIC STATE
COLLEGES. (a) In this section:
(1) "Housing facility" has the meaning assigned by Section 53.02,
Education Code.
(2) "Public state college" has the meaning assigned by Section 61.003,
Education Code.
(b) A corporation may spend tax revenue received under this subtitle for
expenditures that are for the development or construction of housing facilities
on or adjacent to the campus of a public state college.
(c) This section expires September 1, 2017.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1295 (H.B. 2473), Sec. 1, eff. June 14,
2013.
SUBCHAPTER E. CORPORATE POWERS AND LIMITATIONS RELATING TO BONDS
Sec. 501.201. AUTHORITY TO ISSUE BONDS. (a) A corporation may issue
bonds to defray all or part of the cost of a project, regardless of whether the
bonds are wholly or partly exempt from federal income taxation.
(b) Except as limited by this subtitle or rules and guidelines of the
economic development office, a corporation has full authority with respect to
bonds.
(c) Except as otherwise provided by this subtitle, a corporation may issue
bonds under this subtitle without obtaining the consent or approval of any
department, division, or agency of this state, other than the attorney general
under Chapter 1202, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Sec. 501.202. TERMS. Bonds issued by a corporation must be dated and must
mature in not more than 40 years.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.203. SECURITIES COMMISSIONER PERMIT TO SELL SECURITIES REQUIRED.
A corporation may not sell or offer for sale bonds or other securities until
the securities commissioner grants a permit authorizing the corporation to offer
and sell the bonds or other securities under the registration provisions of The
Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes), except
as exempted from registration by rule or order of the State Securities Board.
Appeal from an adverse decision of the securities commissioner or the State
Securities Board is under the administrative procedure law, Chapter 2001,
Government Code. The substantial evidence rule applies in an appeal under this
subsection.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.204. AUTHORIZING UNIT'S APPROVAL OF BONDS. (a) A corporation
may not deliver bonds, including refunding bonds, unless the governing body of
the corporation's authorizing unit adopts a resolution, not earlier than the
60th day before the date the bonds are delivered, specifically approving the
corporation's resolution providing for the issuance of the bonds.
(b) If the corporation is authorized to be created by a county alliance,
the resolution required by Subsection (a) must be adopted by the commissioners
courts of at least three-fifths of the members of the county alliance.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.205. BOND COUNSEL AND FINANCIAL ADVISORS. Bond counsel and
financial advisors participating in a bond issue must be mutually acceptable to
the corporation and the user.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.206. MONEY USED TO PAY BONDS. The principal of and interest on
bonds issued by a corporation are payable only from the money provided for that
payment and from the revenue of the project or projects for which the bonds were
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
authorized.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.207. BONDS NOT DEBT OF STATE OR AUTHORIZING UNIT. (a) Bonds
issued under this subtitle are not a debt or pledge of the faith and credit of
this state, the authorizing unit of the corporation issuing the bonds, or any
other political corporation, subdivision, or agency of this state.
(b) The revenue bonds issued under this subtitle must contain on their
face a statement to the effect that:
(1) neither this state, the authorizing unit of the corporation
issuing the bonds, nor any other political corporation, subdivision, or agency
of this state is obligated to pay the principal of or the interest on the bonds;
and
(2) neither the faith and credit nor the taxing power of this state,
the authorizing unit of the corporation issuing the bonds, or any other
political corporation, subdivision, or agency of this state is pledged to the
payment of the principal of or the interest on the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.208. BOND SECURITY; DEFAULT. (a) The principal of and interest
on any bonds issued by a corporation shall be secured by a pledge of the
revenues and receipts derived by the corporation from the lease or sale of the
project financed by the bonds or from the loan made by the corporation with
respect to the project financed or refinanced by the bonds.
(b) As security for the payment of the principal of and interest on any
bonds issued by a corporation and any agreements made in connection with the
issuance of bonds, the corporation may:
(1) mortgage and pledge any or all of the corporation's projects or
any part of a project, including the project financed or refinanced and any
enlargements of and additions to the project, owned before or acquired after the
time of the mortgage or pledge; and
(2) assign any mortgage and repledge any security conveyed to the
corporation to secure any loan made by the corporation, and pledge the revenues
and receipts from the assigned mortgage or security.
(c) The resolution authorizing the issuance of bonds and any mortgage
covering all or part of the project financed may include any agreement or
provision that the board of directors considers advisable and not in conflict
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
with this subtitle and that relates to:
(1) the maintenance of the project covered by the bonds or mortgage;
(2) the fixing and collection of rents;
(3) purchase price payments;
(4) loan payments;
(5) the creation and maintenance of special funds from those revenues;
or
(6) the rights and remedies available in the event of a default.
(d) A mortgage to secure bonds may also provide that, in the event of a
default in the payment of the bonds or a violation of another agreement
contained in the mortgage, the mortgage may be foreclosed and the mortgaged
property may be sold in any manner permitted by law. The mortgage may provide
that a trustee under the mortgage or the holder of any of the bonds secured by
the mortgage may purchase property at a foreclosure sale if the trustee or
holder is the highest bidder.
(e) A pledge, agreement, or mortgage made for the benefit or security of
any of the corporation's bonds continues in effect until the principal of and
interest on the bonds benefited or secured by the pledge, agreement, or mortgage
have been fully paid.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.209. TRUST AGREEMENT. (a) Bonds issued under this subtitle may
be secured by a trust agreement between the corporation and a trust company or
bank having the powers of a trust company. The trust company or bank may be
located in or outside of this state.
(b) The trust agreement may:
(1) pledge or assign the lease, sale, or loan revenues to be received
with respect to a project from a lessee, purchaser, or borrower for the payment
of the principal of and interest and any premium on the bonds as the bonds
become due and payable;
(2) provide for the creation and maintenance of reserves for a purpose
described by Subdivision (1);
(3) state the rights and remedies of the bondholders and the trustee;
(4) restrict the individual right of action by bondholders in a manner
that is customary in trust agreements or trust indentures securing bonds and
debentures of private corporations; and
(5) include any additional provision that the corporation considers
reasonable and proper for the security of the bondholders.
(c) The trust agreement or a resolution approving the issuance of the
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
bonds may provide for the protection and enforcement of the rights and remedies
of the bondholders as may be reasonable and proper and not in violation of law,
including covenants providing the duties relating to:
(1) the acquisition of property and the construction, improvement,
maintenance, repair, operation, and insurance of the project in connection with
which the bonds are authorized; and
(2) the custody, protection, and application of all money.
(d) A bank or trust company incorporated under the laws of this state that
acts as depository of the bond proceeds or of revenues may furnish indemnifying
bonds or pledge securities as required by the corporation.
(e) All expenses incurred in carrying out the trust agreement may be
treated as a part of the cost of operating the project.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.210. FINANCIAL ASSURANCE OR RESPONSIBILITY REQUIREMENTS FOR
CERTAIN PROJECTS. (a) The resolution or mortgage described by Section
501.208(c) may contain any agreement or provision for satisfying the financial
assurance or responsibility requirements applicable to a project for which a
permit is required under Chapter 361, Health and Safety Code, or Chapter 27,
Water Code, including a requirement relating to construction, proper operation,
liability coverage, emergency response capability, well plugging, closure, and
post-closure care.
(b) Evidence of the passage of a resolution by a governing body approving
or agreeing to approve the issuance of bonds for the purpose of satisfying the
financial assurance or responsibility requirements applicable to the project is
an adequate demonstration that sufficient financial resources will be available
to comply with all existing financial assurance or responsibility requirements.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.211. USE OF BOND PROCEEDS. (a) The proceeds of the bonds of
each issue shall be:
(1) used to pay or make a loan in the amount of all or part of the
cost of the project or projects for which the bonds were authorized; and
(2) disbursed in the manner and under any restrictions provided in the
resolution authorizing the issuance of the bonds or in any trust agreement
securing the bonds.
(b) Bond proceeds may be used to:
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(1) pay all costs incurred in issuing the bonds;
(2) pay interest on the bonds for any time determined by the board of
directors of the corporation issuing the bonds; and
(3) establish reserve funds and sinking funds for the bonds.
(c) If the proceeds of the bonds of any series issued for a project exceed
the cost of the project for which the bonds were issued, the surplus shall be:
(1) deposited to the credit of the sinking fund for the bonds; or
(2) used to purchase bonds in the open market.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.212. INTERIM BONDS. (a) Before the preparation of definitive
bonds, the corporation may, under like restrictions, issue interim bonds that
may be exchanged for definitive bonds when the definitive bonds are executed and
available for delivery.
(b) The corporation may issue interim bonds with or without coupons.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.213. REFUNDING BONDS. (a) A corporation may provide by
resolution for the issuance of refunding bonds:
(1) to refund outstanding bonds issued under this subtitle for a
project, including the payment of any redemption premium on the bonds and the
interest accrued or to accrue to the date of redemption; and
(2) if considered advisable by the corporation, additionally to
finance improvements, extensions, or enlargements to the project for which the
bonds being refunded were issued or for another project.
(b) The provisions of this subtitle relating to other bonds govern the
issuance, maturities, and other details of the refunding bonds, the rights of
the holders of the refunding bonds, and the rights, duties, and obligations of
the corporation with respect to the same to the extent those provisions may be
applicable.
(c) The corporation may issue the refunding bonds in exchange for
outstanding bonds or may sell the refunding bonds and use the proceeds to redeem
outstanding bonds.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.214. SALE OR EXCHANGE OF BONDS. With respect to a project, a
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
corporation may:
(1) sell bonds; or
(2) exchange bonds for property, labor, services, material, or
equipment comprising a project or incidental to the acquisition of a project.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER F. ADMINISTRATION BY ECONOMIC DEVELOPMENT OFFICE
Sec. 501.251. STATE STANDARDS FOR PROJECT ELIGIBILITY. The economic
development office shall adopt rules providing minimum standards for project
eligibility.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.252. STATE STANDARDS AND GUIDELINES FOR LEASE, SALE, OR LOAN
AGREEMENTS. (a) The economic development office shall adopt rules:
(1) providing minimum standards for lease, sale, and loan agreements
entered into under this subtitle; and
(2) providing guidelines with respect to the business experience,
financial resources, and responsibilities of the lessee, purchaser, or borrower
under a lease, sale, or loan agreement entered into under this subtitle.
(b) The economic development office may adopt rules governing the terms of
a loan made by a corporation to a bank or other lending institution the
proceeds of which are reloaned as permanent or temporary financing of a project.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.253. RULES FOR SMALL BUSINESS PROGRAMS. The economic development
office shall adopt rules governing programs for small businesses receiving
loans guaranteed wholly or partly by the United States Small Business
Administration or another federal agency.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.254. FILING OF RULES AND GUIDELINES WITH SECRETARY OF STATE.
Rules and guidelines adopted by the economic development office and amendments
to the rules and guidelines take effect only after the filing of the rules and
guidelines or amendments with the secretary of state.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.255. APPROVAL OF LEASE, SALE, OR LOAN AGREEMENT. (a) A lease,
sale, or loan agreement entered into under this subtitle must be approved by the
economic development office. The economic development office may not approve
an agreement unless the office affirmatively finds that the project sought to be
financed furthers the public purposes of this subtitle.
(b) The corporation may appeal an adverse ruling or decision of the
economic development office under Subsection (a) to a district court of Travis
County. The substantial evidence rule applies in an appeal under this
subsection.
(c) A corporation:
(1) may enter into a lease, sale, or loan agreement under this
subtitle without obtaining the consent or approval of any department, division,
or agency of this state except as otherwise provided by this subtitle; and
(2) has full authority with respect to a lease, sale, or loan
agreement, except as limited by this subtitle or by rules and guidelines of the
economic development office.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.256. APPROVAL OF BONDS BY ECONOMIC DEVELOPMENT OFFICE. (a) A
corporation may submit a transcript of proceedings in connection with the
issuance of bonds to the economic development office and request that the office
approve the bonds. A corporation shall include a nonrefundable filing fee with
the request. The office shall set the amount of the fee at a reasonable amount
that is not less than $500 or more than $25,000.
(b) If the economic development office refuses to approve the bond issue
solely on the basis of law, the corporation may seek a writ of mandamus from the
Texas Supreme Court, and for this purpose the executive director of the
economic development office is considered a state officer under Section 22.002,
Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.257. FILING OF FEE SCHEDULE AND BOND PROCEDURES. The economic
development office by rule shall require a corporation to file fee schedules and
bond procedures.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.258. DELEGATION OF AUTHORITY. The economic development office
may delegate to the executive director of the office the authority to approve a
lease, sale, or loan agreement made under this subtitle or bonds issued by a
corporation or any documents submitted as provided in this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER G. AMENDMENT OR RESTATEMENT OF
CERTIFICATE OF FORMATION
Sec. 501.301. AMENDMENT BY BOARD OF DIRECTORS. (a) The board of
directors of a corporation at any time may file with the governing body of the
corporation's authorizing unit a written application requesting that the
authorizing unit approve an amendment to the certificate of formation.
(b) The application must specify the proposed amendment. The board of
directors shall amend the certificate of formation in accordance with this
subchapter if the governing body of the authorizing unit by resolution:
(1) determines that it is advisable to adopt the amendment;
(2) authorizes the adoption of the amendment; and
(3) approves the form of the amendment.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.302. AMENDMENT BY UNIT. The governing body of the authorizing
unit of a corporation, at the unit's sole discretion, may in accordance with
this subchapter amend the corporation's certificate of formation at any time by:
(1) adopting the amendment by resolution; and
(2) delivering the certificate of amendment to the secretary of state.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.303. AMENDMENT TO COUNTY ALLIANCE CORPORATION'S CERTIFICATE OF
FORMATION. An amendment to the certificate of formation of a county alliance
corporation may not be adopted unless approved by the governing body of each
member of the county alliance that authorized the creation of the corporation.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.304. CONTENTS OF CERTIFICATE OF AMENDMENT. The certificate of
amendment must:
(1) state the name of the corporation;
(2) if the amendment alters a provision of the certificate of
formation, identify by reference or describe the altered provision and include
the provision's text as amended;
(3) if the amendment is an addition to the certificate of formation,
state that fact and include the text of each provision added; and
(4) state that the amendment was adopted or approved by the governing
body of the authorizing unit and give the date the governing body adopted or
approved the amendment.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.305. EXECUTION AND VERIFICATION OF CERTIFICATE OF AMENDMENT. (a)
A certificate of amendment shall be executed:
(1) on behalf of the corporation by the president or a vice president
of the corporation and by the secretary or an assistant secretary of the
corporation; or
(2) by the presiding officer of the governing body of the
corporation's authorizing unit and by the secretary or clerk of the governing
body.
(b) One of the officers who signs the certificate of amendment shall
verify the certificate of amendment.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.306. DELIVERY AND FILING OF CERTIFICATE OF AMENDMENT. (a) Three
originals of the certificate of amendment shall be delivered to the secretary
of state.
(b) If the secretary of state determines that the certificate of amendment
conforms to this subchapter and on receipt of a $25 fee, the secretary of state
shall:
(1) endorse the word "Filed" and the date of the filing on each
original of the certificate of amendment;
(2) file one of the original certificates of amendment in the
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
secretary of state's office;
(3) issue two certificates evidencing the filing of the certificate of
amendment;
(4) attach to each certificate evidencing the filing of the
certificate of amendment; and
(5) deliver a certificate evidencing the filing of the certificate of
amendment and the attached certificate of amendment to:
(A) the corporation or the corporation's representative; and
(B) the governing body of the corporation's authorizing unit.
(c) On the issuance of the certificate evidencing the filing of the
certificate of amendment, the amendment becomes effective and the certificate of
formation is amended accordingly.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.307. SUITS OR RIGHTS NOT AFFECTED. (a) An amendment to a
corporation's certificate of formation does not affect:
(1) any existing cause of action in favor of or against the
corporation;
(2) any pending suit to which the corporation is a party; or
(3) the existing rights of any person.
(b) If a corporation's name is changed by amendment to the certificate of
formation, a suit brought by or against the corporation under its former name
does not abate for that reason.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.308. RESTATED CERTIFICATE OF FORMATION. A corporation may
authorize, execute, and file a restated certificate of formation by following
the procedure to amend the certificate of formation provided by this subchapter,
including obtaining the approval of the governing body of the corporation's
authorizing unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.309. RESTATEMENT WITHOUT ADDITIONAL AMENDMENT. (a) A
corporation may, without making any additional amendment, restate the entire
text of the certificate of formation as amended or supplemented by all
certificates evidencing the filing of a certificate of amendment previously
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
issued by the secretary of state.
(b) The introductory paragraph of a restatement under this section must
contain a statement that the restatement:
(1) accurately copies the certificate of formation and all amendments
to the certificate of formation that are in effect; and
(2) does not contain any change to the certificate of formation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.310. RESTATEMENT WITH ADDITIONAL AMENDMENT. (a) A corporation
may:
(1) restate the entire text of the certificate of formation as amended
or supplemented by all certificates evidencing the filing of a certificate of
amendment previously issued by the secretary of state; and
(2) as part of the restatement, make additional amendments to the
certificate of formation.
(b) A restatement under this section must:
(1) state that each additional amendment to the certificate of
formation conforms to this subtitle;
(2) contain any statement required by this subtitle for the
certificate of amendment, except that the full text of an additional amendment
is not required to be set out other than in the restatement itself;
(3) contain a statement that:
(A) the restatement is an accurate copy of the certificate of
formation and all amendments to the certificate of formation that are in effect
and all additional amendments made to the certificate of formation; and
(B) the restatement does not contain any other change to the
certificate of formation; and
(4) restate the text of the entire certificate of formation as amended
or supplemented by all certificates evidencing the filing of a certificate of
amendment previously issued by the secretary of state and as additionally
amended by the restated certificate of formation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.311. CHANGE IN CERTAIN INFORMATION NOT AMENDMENT. For purposes
of restating the certificate of formation under Sections 501.309 and 501.310,
substituting the current number, names, and addresses of the directors for
similar information of the initial board of directors or omitting the name and
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
address of each organizer is not an amendment to or change in the certificate of
formation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.312. EXECUTION AND VERIFICATION OF RESTATED CERTIFICATE OF
FORMATION. (a) Originals of the restated certificate of formation shall be
executed on behalf of the corporation by the president or a vice president of
the corporation and by the secretary or an assistant secretary of the
corporation.
(b) One of the officers who signs the restated certificate of formation
shall verify the restated certificate.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.313. DELIVERY AND FILING OF RESTATED CERTIFICATE OF FORMATION.
(a) Three originals of the restated certificate of formation shall be delivered
to the secretary of state.
(b) If the secretary of state determines that the restated certificate of
formation conforms to law and on receipt of a $25 fee, the secretary of state
shall:
(1) endorse the word "Filed" and the date of the filing on each
original of the restated certificate of formation;
(2) file one of the original restated certificates of formation in the
secretary of state's office;
(3) issue two certificates evidencing the filing of the restated
certificate of formation;
(4) attach to each certificate evidencing the filing of the restated
certificate of formation an original of the restated certificate of formation;
and
(5) deliver a certificate evidencing the filing of the restated
certificate of formation and the attached restated certificate of formation to:
(A) the corporation or the corporation's representative; and
(B) the governing body of:
(i) the corporation's authorizing unit; or
(ii) any county in the county alliance that authorized the
creation of the corporation, for a county alliance corporation.
(c) The governing body of a county to which a certificate evidencing the
filing of the restated certificate of formation and the attached restated
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
certificate of formation are delivered under Subsection (b)(5)(B)(ii) shall
provide photocopies of the certificate evidencing the filing of the restated
certificate of formation and the attached restated certificate of formation to
each other member of the county alliance.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.314. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING OF
RESTATED CERTIFICATE OF FORMATION. On the issuance of the certificate
evidencing the filing of the restated certificate of formation by the secretary
of state:
(1) the original certificate of formation and all amendments to the
original certificate of formation are superseded; and
(2) the restated certificate of formation becomes the certificate of
formation of the corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER H. REGISTERED OFFICE AND AGENT; SERVICE OF PROCESS
Sec. 501.351. REGISTERED OFFICE AND AGENT. (a) A corporation shall
continuously maintain in this state a registered office and registered agent.
(b) A corporation's registered office may, but is not required to be, the
same as the corporation's principal office.
(c) A corporation's registered agent may be:
(1) an individual who is a resident of this state and whose business
office is the same as the corporation's registered office; or
(2) a domestic or foreign for-profit or nonprofit corporation that:
(A) is authorized to transact business or to conduct affairs in
this state; and
(B) has a principal or business office that is the same as the
corporation's registered office.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.352. CHANGE OF REGISTERED OFFICE OR AGENT. (a) A corporation
may change its registered office or registered agent by filing in the office of
the secretary of state a statement declaring:
(1) the name of the corporation;
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(2) the postal mailing address of the corporation's registered office
at the time of filing;
(3) the postal address to which the registered office is to be
changed, if the postal mailing address of the corporation's registered office is
to be changed;
(4) the name of the corporation's registered agent at the time of
filing;
(5) the name of the corporation's successor registered agent, if the
corporation's registered agent is to be changed;
(6) that the postal mailing address of the corporation's registered
office and the postal mailing address of the business office of the
corporation's registered agent as changed will be the same; and
(7) that the change was authorized by:
(A) the corporation's board of directors; or
(B) an officer of the corporation authorized by the corporation's
board of directors to make the change.
(b) Two originals of the statement shall be:
(1) executed on behalf of the corporation by the president or a vice
president of the corporation;
(2) verified by the executing officer; and
(3) delivered to the secretary of state.
(c) If the secretary of state determines that the statement conforms to
this section and on receipt of a $25 fee, the secretary of state shall:
(1) endorse the word "Filed" and the date of the filing on each
original of the statement;
(2) file one of the original statements in the secretary of state's
office; and
(3) return the other original statement to the corporation or the
corporation's representative.
(d) A change made by the statement becomes effective on the filing of the
statement by the secretary of state.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.353. RESIGNATION OF REGISTERED AGENT. (a) A corporation's
registered agent may resign by:
(1) giving written notice to the corporation at the corporation's last
known address; and
(2) giving three originals of the written notice to the secretary of
state not later than the 10th day after the date the notice is mailed or
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
delivered to the corporation.
(b) The notice of resignation must include:
(1) the corporation's last known address;
(2) a statement that written notice of the resignation was given to
the corporation; and
(3) the date on which the written notice of resignation was given to
the corporation.
(c) If the secretary of state determines that the notice of resignation
conforms to this section, the secretary of state shall:
(1) endorse the word "Filed" and the date of the filing on each
original of the notice of resignation;
(2) file one of the original notices of resignation in the secretary
of state's office;
(3) return one original notice of resignation to the resigning
registered agent; and
(4) return one original notice of resignation to the corporation at
the corporation's last known address shown in the notice.
(d) The appointment of a registered agent terminates on the 31st day after
the date the secretary of state receives the notice of resignation that
complies with this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.354. AGENTS FOR SERVICE. (a) The president, each vice
president, and the registered agent of a corporation are the corporation's
agents on whom a process, notice, or demand required or permitted by law to be
served on the corporation may be served.
(b) If a corporation does not appoint or maintain a registered agent in
this state or if the corporation's registered agent cannot with reasonable
diligence be found at the registered office, the secretary of state is an agent
of the corporation on whom a process, notice, or demand described by Subsection
(a) may be served.
(c) Service of a process, notice, or demand on the secretary of state is
made by delivering two copies of the process, notice, or demand to the secretary
of state, the deputy secretary of state, or a clerk in charge of the
corporation department of the secretary of state's office. The secretary of
state shall immediately forward by registered mail one copy of the process,
notice, or demand to the corporation at the corporation's registered office.
(d) Service made on the secretary of state under this section is
returnable not earlier than the 30th day after the date of service.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(e) The secretary of state shall keep a record of each process, notice,
and demand served on the secretary of state under this subtitle and shall
include in the record the time of the service and the secretary of state's
action in response to the service.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER I. ALTERATION OR TERMINATION OF CORPORATION
Sec. 501.401. ALTERATION OR TERMINATION BY AUTHORIZING UNIT. (a) At any
time a corporation's authorizing unit, in its sole discretion, may in accordance
with this subtitle:
(1) alter the corporation's structure, organization, programs, or
activities; or
(2) terminate the existence of the corporation.
(b) The authority of an authorizing unit under this section is limited
only by the law of this state on the impairment of contracts entered into by the
corporation.
(c) An authorizing unit may make an alteration or may terminate the
corporation's existence only by a written resolution of the authorizing unit's
governing body.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.402. TERMINATION OF CORPORATION ON COMPLETION OF PURPOSE. The
board of directors of a corporation, with the approval by written resolution of
the corporation's authorizing unit, shall terminate the corporation's existence
as provided by this subtitle if the board by resolution determines that:
(1) the purposes for which the corporation was formed have been
substantially fulfilled; and
(2) all bonds issued by the corporation have been fully paid.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.403. EXECUTION OF CERTIFICATE OF TERMINATION. A certificate of
termination shall be executed:
(1) on behalf of the corporation by the president or a vice president
of the corporation and by the secretary or an assistant secretary of the
corporation; or
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
(2) by the presiding officer of the governing body of the
corporation's authorizing unit and the secretary or clerk of the governing body.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.404. DELIVERY AND FILING OF CERTIFICATE OF TERMINATION. (a)
Three originals of the certificate of termination shall be delivered to the
secretary of state.
(b) If the secretary of state determines that the certificate of
termination conforms to this subtitle and on receipt of a $25 fee, the secretary
of state shall:
(1) endorse the word "Filed" and the date of the filing on each
original of the certificate of termination;
(2) file one of the original certificates of termination in the
secretary of state's office;
(3) issue two certificates evidencing the filing of the certificate of
termination;
(4) attach to each certificate evidencing the filing of the
certificate of termination an original of the certificate of termination; and
(5) deliver a certificate evidencing the filing of the certificate of
termination and the attached certificate of termination to:
(A) the representative of the terminated corporation; and
(B) the governing body of the terminated corporation's authorizing
unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.405. EFFECT OF ISSUANCE OF CERTIFICATE EVIDENCING FILING OF
CERTIFICATE OF TERMINATION. The corporate existence ends on the issuance of the
certificate evidencing the filing of the certificate of termination except for
the purpose of:
(1) any suit or other proceeding; and
(2) appropriate corporate action by a director or officer under this
subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.406. ASSETS ON TERMINATION. On termination the title to all
funds and property owned by the corporation is transferred to the corporation's
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
authorizing unit.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 501.407. TERMINATION WITH TRANSFER OF ASSETS TO TYPE A CORPORATION.
On approval of the governing bodies of each unit and corporation involved, a
corporation that is not a Type A corporation may transfer all of the
corporation's assets to a Type A corporation and terminate its existence as
provided by this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER J. HURRICANE IKE DISASTER RELIEF
Sec. 501.451. APPLICABILITY. This subchapter applies only to a
corporation the creation of which was authorized by a unit wholly or partly
located in the Hurricane Ike disaster area, as defined by Section 704, Heartland
Disaster Tax Relief Act of 2008 (Pub. L. No. 110-343).
Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19,
2009.
Sec. 501.452. PROJECTS RELATED TO HURRICANE IKE DISASTER AREA. For a
corporation to which this subchapter applies, in this subtitle, "project":
(1) includes an undertaking the costs of which are eligible to be paid
from the proceeds of qualified Hurricane Ike disaster area bonds under Section
704, Heartland Disaster Tax Relief Act of 2008 (Pub. L. No. 110-343); and
(2) does not include:
(A) a qualified residential rental project, as defined by Section
142(d), Internal Revenue Code of 1986; or
(B) a project the costs of which are payable from qualified
mortgage bonds, as defined by Section 143, Internal Revenue Code of 1986.
Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19,
2009.
Sec. 501.453. PROJECTS NOT ADMINISTERED BY ECONOMIC DEVELOPMENT OFFICE. A
project authorized under this subchapter and bonds issued to pay all or part of
the cost of a project under this subchapter are not subject to the requirements
of Subchapter F.
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LOCAL GOVERNMENT CODE CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS
Added by Acts 2009, 81st Leg., R.S., Ch. 991 (H.B. 3854), Sec. 1, eff. June 19,
2009.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE
THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 505. TYPE B CORPORATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 505.001. DEFINITION. In this chapter, "authorizing municipality"
means the municipality that authorizes the creation of a Type B corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.002. APPLICABILITY OF CHAPTER. This chapter applies only to:
(1) a municipality:
(A) that is located in a county with a population of 500,000 or
more; and
(B) in which the combined rate of all sales and use taxes imposed
by the municipality, this state, and other political subdivisions of this state
having territory in the municipality does not exceed 8.25 percent on the date of
any election held under or made applicable to this chapter;
(2) a municipality:
(A) that has a population of 400,000 or more;
(B) that is located in more than one county; and
(C) in which the combined rate of all sales and use taxes imposed
by the municipality, this state, and other political subdivisions of this state
having territory in the municipality, including taxes imposed under this
chapter, does not exceed 8.25 percent; or
(3) a municipality to which Chapter 504 applies.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.003. AUTHORITY TO CREATE CORPORATION. (a) A municipality may
authorize the creation under this subtitle of a Type B corporation.
(b) A municipality may not authorize the creation of more than one Type B
corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
1, 2009.
Sec. 505.004. CONTENTS OF CERTIFICATE OF FORMATION. The certificate of
formation of a Type B corporation:
(1) must state that the corporation is governed by this chapter; and
(2) may include in the corporation's name any word or phrase the
authorizing municipality specifies.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.005. CORPORATION NOT SUBJECT TO CERTAIN PROVISIONS. Sections
501.203,501.205, 501.251-501.254, 501.255(a) and (b), 501.256, and 501.257 do
not apply to a corporation under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER B. GOVERNANCE OF CORPORATION
Sec. 505.051. BOARD OF DIRECTORS. (a) The board of directors of a Type B
corporation consists of seven directors.
(b) A director is appointed by the governing body of the authorizing
municipality for a two-year term.
(c) A director may be removed by the governing body of the authorizing
municipality at any time without cause.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.052. RESTRICTION ON BOARD MEMBERSHIP. (a) Each director of a
Type B corporation authorized to be created by a municipality with a population
of 20,000 or more must be a resident of the municipality.
(b) Each director of a Type B corporation authorized to be created by a
municipality with a population of less than 20,000 must:
(1) be a resident of the municipality;
(2) be a resident of the county in which the major part of the area of
the municipality is located; or
(3) reside:
(A) within 10 miles of the municipality's boundaries; and
(B) in a county bordering the county in which most of the area of
the municipality is located.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
(c) Three directors of a Type B corporation must be persons who are not
employees, officers, or members of the governing body of the authorizing
municipality.
(d) Notwithstanding Subsections (a)-(c), if a municipality terminates a
Type A corporation's existence and authorizes the creation of a Type B
corporation, a person serving as a director of the Type A corporation at the
time of termination may serve on the board of directors of the Type B
corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.053. OFFICERS. The board of directors of a Type B corporation
shall appoint:
(1) a president;
(2) a secretary; and
(3) other officers of the corporation the governing body of the
authorizing municipality considers necessary.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.054. QUORUM. A majority of the entire membership of the board of
directors of a Type B corporation is a quorum.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.055. LOCATION OF BOARD MEETINGS. (a) Except as provided by
Subsection (b), the board of directors of a Type B corporation shall conduct all
meetings within the boundaries of the authorizing municipality.
(b) If the authorizing municipality is located in a county with a
population of less than 30,000, the board of directors of a Type B corporation
may conduct a board meeting within the boundaries of the county.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 473 (H.B. 479), Sec. 2, eff. June 17, 2011.
Sec. 505.056. RESTRICTIONS ON REGISTERED AGENT AND OFFICE. (a) The
registered agent of a Type B corporation must be an individual who is a resident
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
of this state.
(b) The registered office of a Type B corporation must be located within
the boundaries of the authorizing municipality.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 505.101. APPLICABILITY OF OTHER LAW; CONFLICTS. A Type B corporation
has the powers granted by this chapter and by other chapters of this subtitle
and is subject to the limitations of a corporation created under another
provision of this subtitle. To the extent of a conflict between this chapter
and another provision of this subtitle, this chapter prevails.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.102. CONTRACT WITH OTHER PRIVATE CORPORATION. A Type B
corporation may contract with another private corporation to:
(1) carry out an industrial development program or objective; or
(2) assist with the development or operation of an economic
development program or objective consistent with the purposes and duties
specified by this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.103. LIMITATION ON USE OF REVENUES FOR PROMOTIONAL PURPOSES. A
Type B corporation may spend not more than 10 percent of the corporate revenues
for promotional purposes.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.104. BOND REPAYMENT. (a) Bonds or other obligations that mature
in 30 years or less and that are issued to pay the costs of projects of a type
added to the definition of "project" by Subchapter D may be made payable from
any source of funds available to the Type B corporation, including the proceeds
of a sales and use tax imposed under this chapter.
(b) Bonds or other obligations that by their terms are payable from the
tax proceeds:
(1) may not be paid wholly or partly from any property taxes imposed
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
or to be imposed by the authorizing municipality; and
(2) are not a debt of and do not give rise to a claim for payment
against the authorizing municipality, except as to sales and use tax revenue
held by the municipality and required under this chapter to be delivered to the
Type B corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.1041. APPRAISAL REQUIRED BEFORE PURCHASE OF PROPERTY WITH BOND
PROCEEDS. A Type B corporation may not purchase property for a project wholly
or partly with bond proceeds until the corporation obtains an independent
appraisal of the property's market value.
Added by Acts 2011, 82nd Leg., R.S., Ch. 719 (H.B. 782), Sec. 2, eff. September
1, 2011.
Sec. 505.105. EMINENT DOMAIN. A Type B corporation may exercise the power
of eminent domain only:
(1) on approval of the action by the governing body of the authorizing
municipality; and
(2) in accordance with and subject to the laws applicable to the
authorizing municipality.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.106. LIABILITY. (a) The following are not liable for damages
arising from the performance of a governmental function of a Type B corporation
or the authorizing municipality:
(1) the corporation;
(2) a director of the corporation;
(3) the municipality;
(4) a member of the governing body of the municipality; or
(5) an employee of the corporation or municipality.
(b) For purposes of Chapter 101, Civil Practice and Remedies Code, a Type
B corporation is a governmental unit and the corporation's actions are
governmental functions.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
SUBCHAPTER D. AUTHORIZED PROJECTS
Sec. 505.151. AUTHORIZED PROJECTS. In this chapter, "project" means
land, buildings, equipment, facilities, expenditures, and improvements included
in the definition of "project" under Chapter 501, including:
(1) job training as provided by Section 501.162; and
(2) recycling facilities.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.152. PROJECTS RELATED TO RECREATIONAL OR COMMUNITY FACILITIES.
For purposes of this chapter, "project" includes land, buildings, equipment,
facilities, and improvements found by the board of directors to be required or
suitable for use for professional and amateur sports, including children's
sports, athletic, entertainment, tourist, convention, and public park purposes
and events, including stadiums, ball parks, auditoriums, amphitheaters, concert
halls, parks and park facilities, open space improvements, museums, exhibition
facilities, and related store, restaurant, concession, and automobile parking
facilities, related area transportation facilities, and related roads, streets,
and water and sewer facilities, and other related improvements that enhance any
of the items described by this section.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.153. PROJECTS RELATED TO AFFORDABLE HOUSING. For purposes of
this chapter, "project" includes land, buildings, equipment, facilities, and
improvements found by the board of directors to be required or suitable for the
promotion of development and expansion of affordable housing, as described by 42
U.S.C. Section 12745.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.154. PROJECTS RELATED TO WATER SUPPLY FACILITIES AND WATER
CONSERVATION PROGRAMS. For purposes of this chapter, "project" includes land,
buildings, equipment, facilities, and improvements found by the board of
directors to be required or suitable for:
(1) the development or improvement of water supply facilities,
including dams, transmission lines, well field developments, and other water
supply alternatives; or
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
(2) the development and institution of water conservation programs,
including incentives to install water-saving plumbing fixtures, educational
programs, brush control programs, and programs to replace malfunctioning or
leaking water lines and other water facilities.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.155. PROJECTS RELATED TO BUSINESS ENTERPRISES THAT CREATE OR
RETAIN PRIMARY JOBS. For purposes of this chapter, "project" includes land,
buildings, equipment, facilities, and improvements found by the board of
directors to promote or develop new or expanded business enterprises that create
or retain primary jobs, including:
(1) a project to provide public safety facilities, streets and roads,
drainage and related improvements, demolition of existing structures, general
municipally owned improvements, and any improvements or facilities related to a
project described by this subdivision; and
(2) any other project that the board of directors in the board's
discretion determines promotes or develops new or expanded business enterprises
that create or retain primary jobs.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.156. PROJECTS RELATED TO BUSINESS ENTERPRISES IN CERTAIN
MUNICIPALITIES. For purposes of this chapter, "project" includes land,
buildings, equipment, facilities, and improvements found by the board of
directors to be required or suitable for the development, retention, or
expansion of business enterprises if the project is undertaken by a Type B
corporation authorized to be created by a municipality:
(1) that has not for each of the preceding two fiscal years received
more than $50,000 in revenues from sales and use taxes imposed under this
chapter; and
(2) the governing body of which has authorized the project by adopting
a resolution only after giving the resolution at least two separate readings
conducted at least one week apart.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.1561. PROJECTS RELATED TO AIRPORT FACILITIES IN CERTAIN
MUNICIPALITIES. For purposes of this chapter, "project" includes land,
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
buildings, equipment, facilities, and improvements found by the board of
directors to be required or suitable for the development or expansion of airport
or railport facilities, including hangars, maintenance and repair facilities,
cargo facilities, and related infrastructure located on or adjacent to an
airport or railport facility, if the project is undertaken by a Type B
corporation authorized to be created by a municipality:
(1) that enters into a development agreement with an entity in which
the entity acquires a leasehold or other possessory interest from the
corporation and is authorized to sublease the entity's interest for other
projects authorized by Sections 505.151 through 505.156; and
(2) the governing body of which has authorized the development
agreement by adopting a resolution at a meeting called as authorized by law.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.014(a), eff.
September 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 150 (S.B. 2052), Sec. 2, eff. September 1,
2009.
Sec. 505.157. PROJECTS RELATED TO BUSINESS ENTERPRISES IN LANDLOCKED
COMMUNITIES. (a) In this section, "landlocked community" means a municipality
that:
(1) is wholly or partly located in a county with a population of two
million or more; and
(2) has within its municipal limits and extraterritorial jurisdiction
less than 100 acres that can be used for the development of manufacturing or
industrial facilities in accordance with the municipality's zoning laws or land
use restrictions.
(b) For a landlocked community that authorizes or has authorized the
creation of a Type B corporation, "project" also includes expenditures found by
the board of directors to be required for the promotion of new or expanded
business enterprises in the landlocked community.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.158. PROJECTS RELATED TO BUSINESS DEVELOPMENT IN CERTAIN SMALL
MUNICIPALITIES. (a) For a Type B corporation authorized to be created by a
municipality with a population of 20,000 or less, "project" also includes the
land, buildings, equipment, facilities, expenditures, targeted infrastructure,
and improvements found by the corporation's board of directors to promote new or
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
expanded business development.
(b) A Type B corporation may not undertake a project authorized by this
section that requires an expenditure of more than $10,000 until the governing
body of the corporation's authorizing municipality adopts a resolution
authorizing the project after giving the resolution at least two separate
readings.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.159. HEARING REQUIRED TO UNDERTAKE PROJECT. (a) Except as
provided by Subsection (b), a Type B corporation shall hold at least one public
hearing on a proposed project before spending money to undertake the project.
(b) A Type B corporation the creation of which was authorized by a
municipality with a population of less than 20,000 is not required to hold a
public hearing under this section if the proposed project is defined by
Subchapter C, Chapter 501.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.015(a), eff.
September 1, 2009.
Sec. 505.160. ELECTION REQUIRED FOR PROJECT; PETITION. (a) A Type B
corporation may undertake a project under this chapter unless, not later than
the 60th day after the date notice of the specific project or general type of
project is first published, the governing body of the authorizing municipality
receives a petition from more than 10 percent of the registered voters of the
municipality requesting that an election be held before the specific project or
general type of project is undertaken.
(b) The governing body of the authorizing municipality is not required to
hold an election after the submission of a petition under Subsection (a) if the
voters of the municipality have previously approved the undertaking of the
specific project or general type of project:
(1) at an election ordered for that purpose by the governing body of
the municipality; or
(2) in conjunction with another election required under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
Sec. 505.161. PUBLIC PURPOSE DESIGNATION; EXEMPTION FROM TAXATION. (a)
The legislature finds for all constitutional and statutory purposes that:
(1) a project of the type added to the definition of "project" by this
subchapter is owned, used, and held for a public purpose for and on behalf of
the municipality that authorized the creation of the Type B corporation; and
(2) except as otherwise provided by this section, Section 501.160 of
this subtitle and Section 25.07(a), Tax Code, do not apply to a leasehold or
other possessory interest granted by a Type B corporation during the period the
corporation owns projects on behalf of the authorizing municipality.
(b) A project is exempt from ad valorem taxation under Section 11.11, Tax
Code, for the period described by Subsection (a)(2) of this section.
(c) This subsection applies only if the voters of the authorizing
municipality of a Type B corporation have not approved the adoption of a sales
and use tax for the benefit of the corporation under Section 505.251. An
ownership, leasehold, or other possessory interest of a person other than the
corporation in real property constituting a project of the corporation described
by this section:
(1) is subject to ad valorem taxation under Section 25.07(a), Tax
Code; or
(2) if the interest was created under an agreement entered into by the
corporation before September 1, 1999, is covered by the provisions of the law
codified by this section that govern ad valorem taxation of the ownership,
leasehold, or other possessory interest that were in effect on the date the
agreement was executed.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER E. SPORTS VENUE PROJECTS AND RELATED INFRASTRUCTURE
Sec. 505.201. DEFINITIONS. In this subchapter:
(1) "Related infrastructure" has the meaning assigned by Section
334.001.
(2) "Sports venue" means an arena, coliseum, stadium, or other type of
area or facility that is primarily used or is planned for primary use for one
or more professional or amateur sports or athletics events and for which a fee
is charged or is planned to be charged for admission to the sports or athletics
events, other than occasional civic, charitable, or promotional events. The
term does not include an arena, coliseum, stadium, or other type of area or
facility that is or will be owned and operated by a state-supported institution
of higher education.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.202. ELECTION: USE OF TAX PROCEEDS FOR SPORTS VENUE PROJECTS.
(a) An authorizing municipality may submit to the voters of the municipality a
ballot proposition that authorizes the Type B corporation to use the sales and
use tax, including any amount previously authorized and collected, for a
specific sports venue project, including related infrastructure, or for a
specific category of sports venue projects, including related infrastructure.
(b) The project or category of projects described by Subsection (a) must
be clearly described on the ballot so that a voter is able to discern the limits
of the specific project or category of projects authorized by the proposition.
If maintenance and operating costs of an otherwise authorized facility are to
be paid from the sales and use tax, the ballot language must clearly state that
fact.
(c) The authorizing municipality may submit the ballot proposition at:
(1) an election held under another provision of this subtitle,
including the election at which the proposition to initially approve the
adoption of a sales and use tax for the benefit of the Type B corporation is
submitted; or
(2) a separate election to be held on a uniform election date.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.203. PUBLIC HEARING PRECEDING ELECTION. Before an election may
be held under Section 505.202, a public hearing must be held in the authorizing
municipality to inform the municipality's residents of the cost and impact of
the project or category of projects. At least 30 days before the date set for
the hearing, notice of the date, time, place, and subject of the hearing must be
published each week until the date of the hearing in a newspaper with general
circulation in the municipality in which the project is located.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.204. LIMITATION ON SUBSEQUENT ELECTION. If a majority of the
voters voting on the issue do not approve a specific sports venue project or a
specific category of sports venue projects at an election under Section 505.202,
another election concerning the same project or category of projects may not be
held before the first anniversary of the date of the most recent election
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
disapproving the project or category of projects.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.205. SUBSEQUENT APPROVAL OF ADDITIONAL PROJECTS. Prior approval
of a specific sports venue project at an election or completion of a specific
sports venue project approved at an election does not prevent an authorizing
municipality from seeking voter approval of an additional project or category of
projects under this subchapter to be funded from the same sales and use tax
that is used to fund the previously approved sports venue project.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.206. EFFECT OF SUBCHAPTER ON ELECTION AUTHORITY. This subchapter
does not affect an authorizing municipality's authority to call an election
under this chapter to impose a sales and use tax for any purpose authorized by
this chapter after the sales and use tax described by this subchapter is, in
accordance with Section 505.258, no longer collected.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER F. SALES AND USE TAX
Sec. 505.251. TAX AUTHORIZED. The governing body of the authorizing
municipality by ordinance may adopt a sales and use tax for the benefit of a
Type B corporation if the tax is approved by a majority of the voters of the
municipality voting at an election held for that purpose in accordance with
Chapter 321, Tax Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.252. SALES TAX. (a) If the authorizing municipality adopts the
tax under Section 505.251, a tax is imposed on the receipts from the sale at
retail of taxable items within the municipality at the rate approved at the
election.
(b) The rate of a tax adopted under this chapter must be equal to one-
eighth, one-fourth, three-eighths, or one-half of one percent.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
1, 2009.
Sec. 505.253. USE TAX. (a) If the authorizing municipality adopts the
tax under Section 505.251, an excise tax is imposed on the use, storage, or
other consumption within the municipality of tangible personal property
purchased, leased, or rented from a retailer during the period that the tax is
effective within the municipality.
(b) The rate of the excise tax is the same as the rate of the sales tax
portion of the sales and use tax and is applied to the sale price of the
tangible personal property.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.254. SPECIFICATION OF TAX RATE ON BALLOT. In an election held to
adopt the sales and use tax under this chapter, the ballot proposition must
specify the rate of the tax to be adopted.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.255. ADOPTION OF TAX AT ELECTION TO REDUCE OR ABOLISH TAX FOR
TYPE A CORPORATION. A municipality that holds an election to reduce the rate of
or abolish a tax imposed under Chapter 504 may in the same proposition or in a
separate proposition on the same ballot adopt a tax under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.256. APPLICABILITY OF TAX CODE. (a) Chapter 321, Tax Code,
governs the imposition, computation, administration, collection, and remittance
of the sales and use tax, except as inconsistent with this chapter.
(b) Except as provided by this subsection, the tax imposed under this
chapter takes effect as provided by Section 321.102(a), Tax Code. If an
election is held under this chapter at the same time an election is held to
impose or change the rate of the additional municipal sales and use tax, the tax
under this chapter and the imposition or change in rate of the additional
municipal sales and use tax take effect as provided by Section 321.102(b), Tax
Code.
(c) After the effective date of the taxes imposed under this chapter, the
adoption of a sales and use tax or the attempted adoption of a sales and use tax
by the authorizing municipality or another taxing jurisdiction having territory
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
in the municipality does not impair the taxes imposed under this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.2565. LIMITATION ON DURATION OF TAX. (a) At an election held
under Section 505.251, the authorizing municipality may also allow the voters to
vote on a ballot proposition to limit the period for imposition of a sales and
use tax.
(b) An authorizing municipality that has imposed a tax for a limited time
under this section may extend the period of the tax's imposition or reimpose the
tax only if the extension or reimposition is approved by a majority of the
voters of the municipality voting at an election held for that purpose in the
same manner as an election held under Section 504.257.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.016(a), eff.
September 1, 2009.
Sec. 505.257. REDUCTION OF TAX WITHIN REGIONAL TRANSPORTATION AUTHORITY.
Notwithstanding any other provision of this chapter, a tax imposed under this
chapter by an authorizing municipality that is located within the territorial
limits of a regional transportation authority and that has been added to the
territory of the authority under Section 452.6025, Transportation Code, is
subject to reduction in the manner prescribed by Section 452.6025,
Transportation Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.2575. LIMITED SALES AND USE TAX FOR SPECIFIC PROJECT. (a) At an
election held under Section 505.251, the authorizing municipality may also
allow the voters to vote on a ballot proposition to limit the use of the sales
and use tax to a specific project.
(b) A Type B corporation created to perform a specific project as provided
by this section may retain its corporate existence and perform any other
project approved by the voters of the authorizing municipality at an election
held for that purpose in the same manner as Section 504.260 provides for an
election held under Section 504.251. Before spending money to undertake a
project, a Type B corporation shall hold a public hearing as otherwise provided
by this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 15.016(a), eff.
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LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
September 1, 2009.
Sec. 505.258. CESSATION OF COLLECTION OF TAXES. A sales and use tax
imposed under this chapter may not be collected after the last day of the first
calendar quarter that occurs after the Type B corporation notifies the
comptroller that:
(1) all bonds or other obligations of the corporation, including any
refunding bonds, payable wholly or partly from the proceeds of the sales and use
tax imposed under this chapter, have been paid in full; or
(2) the total amount, exclusive of guaranteed interest, necessary to
pay in full the bonds and other obligations has been set aside in a trust
account dedicated to the payment of the bonds and other obligations.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.259. ELECTION REQUIREMENT FOR CERTAIN MUNICIPALITIES. The
election requirement under Section 505.251 is satisfied and another election is
not required if the voters of the authorizing municipality approved the
imposition of an additional one-half cent sales and use tax at an election held
before March 28, 1991, under an ordinance calling the election that:
(1) was published in a newspaper of general circulation in the
municipality at least 14 days before the date of the election; and
(2) expressly stated that the election was being held in anticipation
of the enactment of enabling and implementing legislation without further
elections.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER G. USE OF TAX PROCEEDS
Sec. 505.301. DELIVERY OF TAX PROCEEDS. On the authorizing municipality's
receipt from the comptroller of the proceeds of the sales and use tax imposed
under this chapter, the authorizing municipality shall deliver the proceeds to
the Type B corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.302. PAYMENT OF PROJECT COSTS, BONDS, OR OTHER OBLIGATIONS. The
proceeds of the sales and use tax imposed under this chapter may be used to:
http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\]
LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
(1) pay the costs of projects of the types added to the definition of
"project" by Subchapter D; or
(2) pay the principal of, interest on, and other costs relating to
bonds or other obligations issued by the Type B corporation to:
(A) pay the costs of the projects; or
(B) refund bonds or other obligations issued to pay the costs of
projects.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.303. PAYMENT OF MAINTENANCE AND OPERATING COSTS; ELECTION. (a)
The costs of a publicly owned and operated project purchased or constructed
under this chapter include the maintenance and operating costs of the project.
(b) The proceeds of taxes may be used to pay the maintenance and operating
costs of a project, unless not later than the 60th day after the date notice of
the specific use of the tax proceeds is first published, the governing body of
the authorizing municipality of the Type B corporation undertaking the project
receives a petition from more than 10 percent of the registered voters of the
municipality requesting that an election be held before the tax proceeds may be
used to pay the maintenance and operating costs of a project.
(c) The governing body of the authorizing municipality is not required to
hold an election after the submission of a petition under Subsection (b) if the
voters of the municipality have previously approved at an election ordered for
that purpose by the governing body or in conjunction with another election
required under this chapter that:
(1) the costs of a publicly owned and operated project purchased or
constructed under this chapter include the maintenance and operating costs of
the project; and
(2) the tax proceeds may be used to pay the maintenance and operating
costs of a project.
(d) An authorizing municipality is not required to hold an election under
this section if the municipality:
(1) is located in a county with a population of more than 1.3 million;
and
(2) has held before February 1, 1993, an election under this chapter
at which the additional sales tax was approved.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\]
LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
Sec. 505.304. PAYMENT FOR CERTAIN WATER-RELATED PROJECTS: ELECTION
REQUIRED. (a) A Type B corporation may not use proceeds from the sales and use
tax to undertake a project described by Section 505.154 unless the use of tax
proceeds for that purpose is authorized by a majority of the voters voting at an
election held in the municipality for that purpose.
(b) The ballot in an election held under this section shall be printed to
provide for voting for or against the proposition: "The use of sales and use
tax proceeds for infrastructure relating to __________ (insert water supply
facilities or water conservation programs, as appropriate)."
(c) An election held under this section may be authorized by the governing
body of an authorizing municipality subsequent to an earlier election
authorized under Section 505.251.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.305. PAYMENT FOR CLEANUP OF CONTAMINATED PROPERTY; ELECTION. (a)
The economic development office, with the assistance of the Texas Commission
on Environmental Quality, may encourage a Type B corporation to use proceeds
from the sales and use tax imposed under this chapter for the cleanup of
contaminated property.
(b) Notwithstanding any other provision of this chapter, a Type B
corporation may use proceeds from the sales and use tax for the cleanup of
contaminated property only if the use of tax proceeds for that purpose is
authorized by a majority of the voters voting at an election held in the
authorizing municipality for that purpose. The ballot in an election held under
this subsection shall be printed to provide for voting for or against the
proposition: "The use of sales and use tax proceeds for the cleanup of
contaminated property."
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
SUBCHAPTER H. TERMINATION OF CORPORATION
Sec. 505.351. APPLICABILITY OF SUBCHAPTER. This subchapter applies only
to a Type B corporation created on or after September 1, 1999.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.352. ELECTION TO TERMINATE EXISTENCE OF CORPORATION ON PETITION.
http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\]
LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
(a) The governing body of an authorizing municipality shall order an election
on the termination of the existence of the Type B corporation on receipt of a
petition requesting the election that is signed by at least 10 percent of the
registered voters of the municipality.
(b) The authorizing municipality shall hold the election on the first
available uniform election date that occurs after the time required by Section
3.005, Election Code.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.353. BALLOT. The ballot for an election held under Section
505.352 shall be printed to permit voting for or against the proposition:
"Termination of the __________ (name of corporation)."
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.354. TERMINATION OF EXISTENCE OF CORPORATION. (a) If a majority
of the votes cast at an election held under Section 505.352 approve the
termination, the Type B corporation shall:
(1) continue operations only as necessary to meet the obligations the
corporation incurred before the date of the election, including paying the
principal of and interest on the corporation's bonds; and
(2) liquidate the corporation's assets and apply the proceeds to
satisfy the corporation's obligations, to the extent practicable.
(b) After the Type B corporation has satisfied all of the corporation's
obligations, any remaining assets of the corporation shall be transferred to the
authorizing municipality, and the existence of the corporation is terminated.
(c) The authorizing municipality shall promptly notify the comptroller and
the secretary of state of the date the existence of a Type B corporation is
terminated under this subchapter.
(d) A tax imposed under this chapter may not be collected after the last
day of the first calendar quarter that begins after the authorizing municipality
provides notice under Subsection (c).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
Sec. 505.355. ELECTION REJECTING TERMINATION. If less than a majority of
the votes cast at an election held under Section 505.352 approve the
termination, Section 505.354 has no effect.
http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\]
LOCAL GOVERNMENT CODE CHAPTER 505. TYPE B CORPORATIONS
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April
1, 2009.
http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.505.htm\[9/22/2014 3:36:34 PM\]
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
July 7, 2015July 7, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. ICSC Meeting Schedule/Contacts ICSC Meeting Schedule/Contacts
2. Abbreviated ICSC Program Abbreviated ICSC Program
3. ICSC Marketing Materials ICSC Marketing Materials
4. Site Plan for the Junction at Deer Park Site Plan for the Junction at Deer Park
5. Chambers Town Center Site Plan Chambers Town Center Site Plan
6. La Porte Retail & Restaurant Development La Porte Retail & Restaurant Development
Map
7. La Porte Town Center, Primary Site Plan, La Porte Town Center, Primary Site Plan,
June 16, 2015June 16, 2015
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The purpose of this item is to update the Board on the recent ICSC Show and discuss some lessons learned as a The purpose of this item is to update the Board on the recent ICSC Show
and discuss some lessons learned as a
result of this most recent show, as well as the Cityresult of this most recent show, as well as the Citys efforts the past several years regarding retail recruitment. s efforts the
past several years regarding retail recruitment.
For two (2) months leading up to the ICSC Show, staff contacted over sixty (60) developers, retailers, and For two (2) months leading up to the ICSC Show, staff contacted over sixty
(60) developers, retailers, and
prospective restaurants. Staff also advertised in both the April and May issues of Texas Real Estate Business and prospective restaurants. Staff also advertised in both the April and
May issues of Texas Real Estate Business and
REDNews. REDNews distributed additional issues at the ICSC Show in Las Vegas. REDNews. REDNews distributed additional issues at the ICSC Show in Las Vegas.
Board Directors Richard Warren and Nancy Ojeda Board Directors Richard Warren and Nancy Ojeda worked the floorworked the floorwith staff and either met with or made with staff and
either met with or made
direct contact with more than fifty (50) developers, retailers, hoteliers, investors, and prospective restaurants at the direct contact with more than fifty (50) developers, retailers,
hoteliers, investors, and prospective restaurants at the
show. Staff continues to follow up on many of the meetings which were made at the show in May. show. Staff continues to follow up on many of the meetings which were made at the show
in May.
In addition to the annual ICSC retail conference, ED staff has been pursuing national retail for at least five (5) In addition to the annual ICSC retail conference, ED staff has been
pursuing national retail for at least five (5)
years. National retail is coming closer to La Porte, but weyears. National retail is coming closer to La Porte, but were still experiencing significant retail leakage to Deer re
still experiencing significant retail leakage to Deer
Park, Pasadena, Baytown, and Seabrook. Below are some observations and bullet points for Park, Pasadena, Baytown, and Seabrook. Below are some observations and bullet points for
consideration/discussion regarding current retail development opportunities in La Porte: consideration/discussion regarding current retail development opportunities in La Porte:
The site selection decision process for new retail store/restaurant development is being driven by the The site selection decision process for new retail store/restaurant development
is being driven by the
retailers/restaurants, rather than the brokers and/or developers. retailers/restaurants, rather than the brokers and/or developers.
As a result of recently unveiled retail developments, we have increased competition for national retail As a result of recently unveiled retail developments, we have increased competition
for national retail
development. development.
Please note the site plan for the Junction at Deer ParkPlease note the site plan for the Junction at Deer Park
Please note the site plan for the Chambers Town Center in BaytownPlease note the site plan for the Chambers Town Center in Baytown
Most locations in La Porte have suffered from a lack of interest from national retailers due to sparse Most locations in La Porte have suffered from a lack of interest from national
retailers due to sparse
population and proximity to both dense industrial areas and the Bay.population and proximity to both dense industrial areas and the Bay.
Much of the national retail that has come to La Porte is centered around Walmart:Much of the national retail that has come to La Porte is centered around Walmart:
CarlCarls Juniors Junior
10,000 sf of new retail next to Discount Tire10,000 sf of new retail next to Discount Tire
17,000 sf Aldi17,000 sf Aldi
Carls Junior, Aldi, the retailers in the 10,000 sf retail strip center next to Discount Tire, and the retailers in s Junior, Aldi, the retailers in the 10,000 sf retail strip center
next to Discount Tire, and the retailers in
Rob JohnsonRob Johnsons development are examples of the current national retail that the City has been able to attract s development are examples of the current national retail that
the City has been able to attract
to La Porte. to La Porte.
There are some limited opportunities for national retail development in La Porte,There are some limited opportunities for national retail development in La Porte,
Note the Retail/Restaurant Development Map,Note the Retail/Restaurant Development Map,
Opportunity to work with the new owners of the Port Crossing Commerce Center to promote retail Opportunity to work with the new owners of the Port Crossing Commerce Center to promote
retail
opportunities on the west side of the development;opportunities on the west side of the development;
2.72 acres in front of the new Hampton Inn & Suites,2.72 acres in front of the new Hampton Inn & Suites,
Waterfront development opportunitiesWaterfront development opportunities
7.5 acres of city7.5 acres of city--owned propertyowned property
Privately owned 45 acres of land across from the golf coursePrivately owned 45 acres of land across from the golf course
Spencer Hwy between Underwood Road to the Bridge near the Court BuildingSpencer Hwy between Underwood Road to the Bridge near the Court Building
Northern corners of W. Fairmont Parkway and Canada Road. Northern corners of W. Fairmont Parkway and Canada Road.
However, it appears that the CityHowever, it appears that the Citys s bestbestopportunity for attracting more restaurants and even retail has been opportunity for attracting more
restaurants and even retail has been
among local/regional operators and entrepreneurs such as Las Hadas, Casa Anitaamong local/regional operators and entrepreneurs such as Las Hadas, Casa Anitas, El Toro, Gringos, El
Toro, Gringos, Mainly s, Mainly
Drinks, Main 101, Pipeline Grill, AntonioDrinks, Main 101, Pipeline Grill, Antonios Grill, Tonys Grill, Tonys Barbecue, Kings Barbecue, Kings BBQ, and all the other restaurants
in s BBQ, and all the other restaurants in
town. While pursuing national retail, the City may be overlooking the niche of retail/restaurant businesses for While pursuing national retail, the City may be overlooking the niche
of retail/restaurant businesses for
which La Porte is best and uniquely positioned and capable of supporting. Therefore, notwithstanding the which La Porte is best and uniquely positioned and capable of supporting. Therefore,
notwithstanding the
opportunities listed above to pursue national retailer, it may be time to shift part of the focus to reach out to, attract opportunities listed above to pursue national retailer, it
may be time to shift part of the focus to reach out to, attract
to La Porte, and support local and regional entrepreneurs and small businesses. to La Porte, and support local and regional entrepreneurs and small businesses.
The Board will have additional opportunities to discuss this topic during the economic development strategic plan The Board will have additional opportunities to discuss this topic during
the economic development strategic plan
discussions.
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
Monday, 18 May 2015
11:00 am: Firehouse Restaurant Group @ South Hall - 210 Q Street
Mike McCown
Area Representative
Houston Restaurant Group LLC
Firehouse Subs Houston/Central Texas
mmccown@firehousesubs.com | FirehouseSubs.com
(832) 877-6538 (m)
Afternoon (Anytime): Chain Links Booth @ South Hall - 266 Q Street
Mike Lucido
Director of Real Estate
ALDI Inc. Rosenberg Division
15915 Katy Freeway, STE 650
Houston, TX 77094
(281) 492-2173 (m)
6:00 pm -- Container Park (Note: Meet at the large Praying Mantis!)
707 Fremont Street; Downtown Las Vegas
www.containerpark.com
ǞǞǞ͵ŭƚƚŭƌĻ͵ĭƚƒΉƒğƦƭΉķźƩΉ\[ğƭњĻŭğƭњ/ƚƓǝĻƓƷźƚƓњ/ĻƓƷĻƩͲњЌЊЎЉњtğƩğķźƭĻњwķͲњ\[ğƭњĻŭğƭͲњb
њБВЊЉВͲњ
ƓźƷĻķњ{ƷğƷĻƭΉАЉАњCƩĻƒƚƓƷњ{ƷͲњ\[ğƭњĻŭğƭͲњbњБВЊЉЊΉθЌЏ͵ЊЍЏЏВЍЋͲΏ
ЊЊЎ͵ЊЎЋАЉЉБͲЊЏǩΉğƒўƷΉķğƷğўͧЍƒЊЍͧЍƒЊЌͧЊƒЎͧЊƒЊͧЊƭЉǣБЉĭБĭЍЏЏЍЉğŅЋЋĻАʹЉǣğВЌğЍğŅĻЋŅĻАĬЉЍЏͧЋƒ
ЋͧЊķΏЊЊЎ͵ЊЎЋЉЉЊͧЋķЌЏ͵ЊЌЊБЉЎͧЊƒЎͧЊƒЊͧЊƭЉǣБЉĭБĭЌАЍЌЍķŅВЉЊАʹЉǣЍЌЎВЋĭĭķĬАЌЎАЊĭЊͧЋƒЋͧЊķΏ
ЊЊЎ͵ЊЌБЊЍЋͧЋķЌЏ͵ЊЏАВЉЌЎͧЎźЋ
David C. Miles
IĻƩźƷğŭĻ \[ğƓķ tğƩƷƓĻƩƭͲ \[\[/
Libby Cadillo
{ƦĻƩƩǤ ğƓ bĻƭƭ
Tuesday, 19 May 2015
Anytime:
North Hall - 2656
Travis Alvarado
Starbucks Coffee Company
South Hall - 423 N Street
Jacqueline R. Tapella
Sally Beauty Supply
All Other Cold Call Meetings
Exhibitors I plan to visit: http://recon2015.mapyourshow.com/shared-
agenda.cfm?guid=8D3C8205-62C5-4378-8CFE-17FA0CCCC62C
Digital map of the show floors that show the highlighted location of each exhibitor in the list
ral
ICSC Mobile App
http://www.mapyourshow.com/shows/index.cfm?show_id=recon2015&alt_entry=true&curr_pri
=facility&&userid=77F4A630-BFC7-EBF7-593EF4340D4FAC8B&lang=EN&locale=EN
After the Show:
Starbucks -- Travis Alvarado @ tralvara@starbucks.com
Tuesday Morning -- Jonathann Hicks @ Edge Realty Partners
PROGRAM AT-A-GLANCE
SUNDAY, MAY 17 Professional Development Day
SPECIALTY
|
Registration
8:00 am 5:00 pm
|
Global Delegates Networking Breakfast and Leadership Summit
8:45 10:30 am
By invitation only
||
Cold Calling and Prospecting For New Business Cold Calling and Prospecting For New Business
9:30 10:45 am 9:30 10:45 am
|
Volunteer Appreciation Brunch with Distinguished Trustee Service Award
10:30 11:45 am
By invitation only
|
11:00 am 12:30 pm
11:00 am 12:30 pm
Increasing Income Through Superior Customer Experience
High-Performance and Sustainability in Retail Facility Management
Reinvention: Property Redevelopment and Repositioning
Reinvention: Property Redevelopment and Repositioning
Driving Revenue from Social Campaigns
|
2015 VIVA Best of the Best Awards Presentation
12:45 1:00 pm
||
Keynote and Opening Session Peyton Manning
Keynote and Opening Session Peyton Manning
1:00 2:00 pm
1:00 2:00 pm
||
Blockbuster Session John C. Maxwell
Blockbuster Session John C. Maxwell
2:30 3:30 pm
2:30 3:30 pm
|
The Mall as a Retail Medium
2:30 3:45 pm
|
Omni-Channel Presence and Personalization
2:30 4:00 pm
|
Volunteer Leadership Orientation
3:00 5:00 pm
By invitation only
|
Specialty Leasing & Deal Making
4:00 5:15 pm
||
Retail Real Estate Market and Feasibility Analysis
Retail Real Estate Market and Feasibility Analysis
4:00 5:30 pm
4:00 5:30 pm
®
Introductory Training in ARGUS
Maximizing Productivity Enhancing Shopping Experiences
Essential Restaurant Fundamentals and Leasing Strategies
|
U.S. MAXI Awards Ceremony
5:30 7:00 pm
|
ICSC Foundation Gala Dinner
6:00 9:30 pm
||
Opening Reception
Opening Reception
7:30 9:30 pm
7:30 9:30 pm
MONDAY, MAY 18
|
Registration
7:00 am 5:00 pm
|
Tax Update Breakfast
7:00 8:00 am
||
Leasing Mall/Marketplace Mall/SPREE RECon
Leasing MallMarketplace Mall
/
8:00 am 5:00 pm
8:00 am 5:00 pm
/
|
9:00 10:30 am
Luxury Retail Consumer Trends Worldwide and in Your Neighborhood
|
Capital Markets
10:00 11:00 am
10:00 11:00 am
Successful Strategies to Attract and Retain Downtown Retailers Successful Strategies to Attract and Retain Downtown Retailers
|
11:00 am 12:30 pm
|
Blockbuster Session Executive Women in Retail Real Estate
11:15 am 12:15 pm
4
Specialty Leasing MarketingAll Audiences
Operations
Leasing
Retailing Public Sector Development
Asset Management
SPECIALTY
||
Lunch and Keynote Presentation Stefan Larsson
Lunch and Keynote Presentation Stefan Larsson
12:30 2:00 pm
12:30 2:00 pm
|
Blockbuster Session Commander Rorke T. Denver
2:30 3:30 pm
|
Cities of the World Reception
3:30 5:00 pm
New Rules for Consumer Engagement in the SoLoMo Revolution
New Priorities in Asset Management
||
Broker-ology: Retail Broker Best Practices
Broker-ology: Retail Broker Best Practices
4:00 5:00 pm
4:00 5:00 pm
|
Annual Meeting of Members
4:15 4:30 pm
|
Fortune Tellers Reception and Researcher Award Ceremony
5:30 7:00 pm
|
Diversity Reception
5:30 7:30 pm
|
SPREE RECon Cocktail Reception
5:30 8:30 pm
|
Latin American Reception
8:00 11:00 pm
TUESDAY, MAY 19
|
Registration
6:30 am 5:00 pm
|
Meet the Trustees Breakfast
7:00 8:30 am
||
Leasing MallLeasing Mall/Marketplace MallMarketplace Mall/SPREE RECon
/
8:00 am 5:00 pm
8:00 am 5:00 pm
/
|
9:00 10:30 am
9:00 10:30 am
The Economics of a Lease: Developer and Retailer Perspectives
The Economics of a Lease: Developer and Retailer Perspectives
|
Envision 2020 Town Hall Meeting
9:30 11:00 am
|
Advanced Leasing Techniques Enhancing Your Shopping Center
10:00 11:00 am
|
11:00 am 12:30 pm
|
Blockbuster Session Erik Qualman
11:15 am 12:15 pm
||
Lunch and Keynote Presentation Michael R. Francis
Lunch and Keynote Presentation Michael R. Francis
12:30 2:00 pm
12:30 2:00 pm
|
The Continuing Conversation in Social Media
2:30 3:30 pm
2:30 3:30 pm
The Mall of the Future
The Mall of the Future
|
Management Strategies to Thrive in a New Era of Retailing
3:30 5:00 pm
3:30 5:00 pm
Optimizing Tenant Mix for Downtown Business Districts
Optimizing Tenant Mix for Downtown Business Districts
|
Quantum Leap: Deal Making in the 21st Century Using Current Technologies
4:00 5:00 pm
WEDNESDAY, MAY 20
|
Registration
7:00 am 2:00 pm
||
Leasing Mall/Marketplace Mall/SPREE RECon
Leasing MallMarketplace Mall
/
8:00 am 2:00 pm
8:00 am 2:00 pm
/
|
5
#
www.icscrecon.orgRECon15
OVERVIEW
RETAILPRIMARYTRADEAREASTATISTICS
LaPorteislocatedinHarrisCounty,
OVERVIEW YR PTA CITY 1 MILE 3 MILES 5 MILES
Texas,approximately26drivingmiles
Population2012382,96934,0562,63028,92265,637
Population382,96934,05628,92265,637
fromDowntownHouston.
2017403,95635,6072,84430,52668,689
MedianAge201233.934.834.835.334.8
MedianHH Income2012$53,917$59,337$70,204$60,488$62,274
LaPortebenefitsfrombeinglocated
$53,917$59,337$60,488$62,274
Median
HH Income
2017$60,765$64,938$74,765$65,899$68,675
onthewesternedgeofGalveston
TRAFFIC COUNTS VPD EDUCATION 2012
Bay.LaPorteisalsohometothe
i
Portealshometothe(PTA)
La
so
and Hwy146, n ofFairmont Pkwy17,428College Graduate30.9%
SanJacintoMonument
and
SaJacinto
Monument
n
Fairmont Pkwy,w ofHwy14626,789SomeCollege,24.9%
which
noDegree
theBattleshipTexas
Battleshi
the
T
pexas
Spencer Hwy, w ofHwy14617,428High School Graduate24.3%
combined arethedestination
Lessthan HighSchool20.0%
ofover500,000visitorsper
INCOME 2012 2017
500,000visitor
(PTA)
sper
per
year.LaPortealsohastheonly Average Household$72,023$80,794
$72,023
e Household
A
alshastheonly
LaPorte
A
veragA
yearo
rr.
publicbeachinHarris MedianHousehold$53,917$60,765
AGE GROUPS 2012
Median$53,917
Household
publiiHarri
beach
(PTA)
cns
PerCapita$26,270$29,337
County, SylvanBeach.
County, SylvaBeach.
n
0-9years15.0%
RACE 2012 2017
(PTA)
10-14years7.6%
White Alone
La Portehas higherincomes 74.0%72.9%
15-19years7.3%
Black Alone
5.9%5.9%
20-24years7.3%
thanitsPrimaryTradeArea
0.7%0.7%
Amer.IndianAlone
25-34years14.3%
(PTA).TheLa Portemedian
4.1%4.4%
AsianAlone35-44years13.0%
incomein2012was$53,917
Pacific Islander Alone
45-54years14.1%
0.1%0.1%
and is expectedto grow
55and older24.4%
Some OtherRace
12.2%12.8%
to$60,765by2017,a13%
TwoorMoreRaces 3.0%3.3%
40.3%43.0%
Hispanic(AnyRace)
increase.
83,592
9,804
116,710
7,325
16,784
8,051
71,411
6,440
9,065
17,678
6
17,428
68,015
6,636
6,272
28,810
40,392
34,710
41,641
7,442
26,789
TRAFFICCOUNTMAP
PRIMARYTRADEAREAMAP
NORTH
NORTH
CONTACTINFORMATION:
5307MockingbirdLane•5thFloor•Dallas,Texas75206•catalystcommercial.net
preparedby:
CityofLaPorte
604W.FairmontPkwy
Copyright2013CATALYSTCOMMERCIAL.Theinformationprovidedhereinisdeemedreliableandissubjecttoerrors,omissions,
changeoftermsand/orconditions.PreparedbyCatalystCommercial,aTexasbasedretailconsultingandmarketresearchfirmthat
LaPorte,TX77571
combinesstrategy,technologyandretailanalyticstodeliverhigh-impactretailerrecruitmentanddevelopmentstrategiestolocal
(281)470-5016
governments,privatedevelopers,retailersandeconomicdevelopmentorganizations.Source:ESRI,2012.
Deer Park, Texas 77536
N
The Junction at Deer Park
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
July 7, 2015July 7, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
LPDC Fund BalanceLPDC Fund Balance
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
015015--98929892--993993
Economic Development/TourismEconomic Development/TourismAccount Number:Account Number:
Department:
200,000200,000
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. Enhancement Grant Guidelines Enhancement Grant Guidelines -- Current Current
2. Enhancement Grant Guidelines Enhancement Grant Guidelines -- Revised Revised
3. Maps of the Expanded Program Area Maps of the Expanded Program Area
4. City of La Porte's Local Bidder Preference City of La Porte's Local Bidder Preference
Policy
5. Pages from the City Strategic Plan 2013 Pages from the City Strategic Plan 2013--20172017
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Since the inception of the La Porte Enhancement Grant Program, the eligibility requirements of the program have Since the inception of the La Porte Enhancement Grant Program, the eligibility
requirements of the program have
not been amended. The Board did amend the program to add the stipulation regarding applicants obtaining three not been amended. The Board did amend the program to add the stipulation
regarding applicants obtaining three
quotes for the proposed work and expand of the eligible areas to include S. Broadway to Fairmont Parkway. The quotes for the proposed work and expand of the eligible areas to include
S. Broadway to Fairmont Parkway. The
Board expressed an interest in discussing the Program requirements and potentially making changes to the Board expressed an interest in discussing the Program requirements and potentially
making changes to the
program. The issues raised include: program. The issues raised include:
Discussion of whether parking lot construction, repair, resurfacing, and striping are eligible for Discussion of whether parking lot construction, repair, resurfacing, and striping are
eligible for
reimbursement as part of a projects; andreimbursement as part of a projects; and
Incorporation of the City of La PorteIncorporation of the City of La PorteIncorporation of the City of La PorteIncorporation of the City of La Portes Local Bidder Preference Policy,
ands Local Bidder Preference Policy, ands Local Bidder Preference Policy, ands Local Bidder Preference Policy, and
In accordance with the City of La PorteIn accordance with the City of La Portes Purchasing Policy, eliminating the requirement that multiple bids s Purchasing Policy, eliminating the
requirement that multiple bids
be required for each eligible component s less than a total $2,000, of which 50% or $1,000 would be a be required for each eligible component s less than a total $2,000, of which 50%
or $1,000 would be a
reimbursable expense. reimbursable expense.
Staff continues to promote the La Porte Enhancement Grant Program to businesses on both Main Street and S. Staff continues to promote the La Porte Enhancement Grant Program to businesses
on both Main Street and S.
Broadway. However, in light of the City CouncilBroadway. However, in light of the City Councils 5 Year Strategic Plan and the need for res 5 Year Strategic Plan and the need for
re--development and the development and the
elimination of blight in other areas of La Porte, staff requests that the 4B Board consider expanding the boundaries elimination of blight in other areas of La Porte, staff requests
that the 4B Board consider expanding the boundaries
of the La Porte Enhancement Grant Program to include the following areas of the City of La Porte: of the La Porte Enhancement Grant Program to include the following areas of the City
of La Porte:
W. Main Street/Spencer Hwy from SH 146 to the railroad tracks,W. Main Street/Spencer Hwy from SH 146 to the railroad tracks,
Southeast corner of Farrington Drive and Spencer Hwy,Southeast corner of Farrington Drive and Spencer Hwy,
Northern corners of Myrtle Creek and Spencer Hwy, andNorthern corners of Myrtle Creek and Spencer Hwy, and
Southern corners of Underwood Road and Spencer Hwy. Southern corners of Underwood Road and Spencer Hwy.
Note: For specific boundary limits, please note the enclosed maps for this section. Note: For specific boundary limits, please note the enclosed maps for this section.
The reasons for expanding the areas of the La Porte Enhancement Grant Program to include three (3) The reasons for expanding the areas of the La Porte Enhancement Grant Program to include
three (3)
intersections on Spencer Hwy, as opposed to including the entire corridor along the Spencer Hwy, are as intersections on Spencer Hwy, as opposed to including the entire corridor along
the Spencer Hwy, are as
follows:
Enhancing these intersections would do much to beautify the Spencer Hwy corridor.Enhancing these intersections would do much to beautify the Spencer Hwy corridor.
Development at these intersections is much older than development between the intersections along Development at these intersections is much older than development between the intersections
along
Spencer Hwy.Spencer Hwy.
Enhancement of the commercial property at the intersections would encourage new development and Enhancement of the commercial property at the intersections would encourage new development
and
beautification of the areas between the intersections along Spencer Hwy.beautification of the areas between the intersections along Spencer Hwy.
At a later date, the areas between the intersections along Spencer Hwy could be added to the At a later date, the areas between the intersections along Spencer Hwy could be added to
the
Enhancement Grant Program.Enhancement Grant Program.
The expanded area does not include the section of Spencer Hwy west of the intersection of Underwood The expanded area does not include the section of Spencer Hwy west of the intersection
of Underwood
Road because this area may be redeveloped in response to the new retail development taking place on the Road because this area may be redeveloped in response to the new retail development
taking place on the
north side of Spencer Hwy. north side of Spencer Hwy.
In order to fund the expanded area of the La Porte Enhancement Grant Program, please consider adding addition In order to fund the expanded area of the La Porte Enhancement Grant Program,
please consider adding addition
additional capital to the fund that supports the program. All capital that funds the La Porte Enhancement Grant additional capital to the fund that supports the program. All capital
that funds the La Porte Enhancement Grant
Program is reserved in CIP Account #015Program is reserved in CIP Account #015--98929892--993 and to which is also referred as Project 993 993 and to which is also referred as Project
993 Façade GrantFaçade Grant.
Staff recommends adding at least $107,669 to this account to bring the total, after considering payments to the Staff recommends adding at least $107,669 to this account to bring the
total, after considering payments to the
three existing projects (Eagle Energy, LaFittethree existing projects (Eagle Energy, LaFittes Cajun Station, and the Oak Center), to $250,000.s Cajun Station, and the Oak Center),
to $250,000.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
1.Discussion and possible action to expand the boundaries of the La Porte Enhancement Grant Program to Discussion and possible action to expand the boundaries of the La Porte Enhancement
Grant Program to
include:include:
W. Main Street/Spencer Hwy from SH 146 to the railroad tracks,W. Main Street/Spencer Hwy from SH 146 to the railroad tracks,
Southeast corner of Farrington Drive and Spencer Hwy,Southeast corner of Farrington Drive and Spencer Hwy,Southeast corner of Farrington Drive and Spencer Hwy,Southeast corner of Farrington
Drive and Spencer Hwy,
Northern corners of Myrtle Creek and Spencer Hwy, andNorthern corners of Myrtle Creek and Spencer Hwy, and
Southern corners of Underwood Road and Spencer Hwy.Southern corners of Underwood Road and Spencer Hwy.
2.Discussion and possible action to transfer $107,669 from the LPDCDiscussion and possible action to transfer $107,669 from the LPDCs General Fund Balance to s General Fund Balance
to
CIP Account CIP Account
..
#015-9892-993993
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
LA PORTE ENHANCEMENT GRANT PROGRAM
The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development
Corporation,offers matching grantstobusinesseswhich are locatedin the La Porte
Enhancement Grant District. A map of the La Porte Enhancement Grant District is provided in
the full explanation of the program.
Eligible improvements of the EGP include facade renovation, beautification projects, and
new awnings, canopies, porches, and signage. A single owner of multiple properties may
apply for grant funds for each property owned, but each matching grant must be for more
than $2,500 and less than $25,000 per property. Each program application will be evaluated
on a case-by-case basis.
Interested business owners are welcome to complete the enclosed application form. Please
deliver applications to the following address:
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
Please contact Scott D. Livingston at livingstons@laportetx.gov or 281/470-5016, if you have
any questions about the La Porte Enhancement Grant Program.
Sincerely,
Scott D. Livingston
Economic Development Coordinator
City of La Porte
L PORTE BY THE BAY
A
604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016
BUSINESS. BY THE BAY.
La Porte Enhancement Grant Program
The La Porte Enhancement Grant Program provides matching funds to enhance and/or beautify
businesses in the La Porte Enhancement Grant District which is outlined with a bold black linebelow.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 1
BUSINESS. BY THE BAY.
ELIGIBLE PROJECTS
Business owners may be eligible for a reimbursement grant of funds used to enhance and/or beautify
their businesses. The following types of projects are eligible for reimbursement grants:
Façade Rehabilitation/Enhancement
This includes work done on existing structures, such as removing non-historic/added facades,
re-pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint
from brick, replacing windows, restoring transom windows, repairing facades, etc.
New Awnings, Canopies, Porches and Signage
This includes replacing, adding, or repairing awnings, canopies, porches and signs. Signs may
include signboards, projecting signs, pedestrian signage, window signs, hanging signs, and
awning/canopy signs.
Beautification Projects
This may include public art, landscaping, and other beautification projects as approved by
the Enhancement Grant Evaluation Committee (EGEC).
PROGRAM GUIDELINES
1.Grant funds are available only for exterior work on commercial property and building
facades that are visible from public streets in the La Porte Enhancement Grant District.
2.In general, grants offered to businesses are intended to support project to renovate or
convert existing structures to their original historic condition.
3.Grants will be processed and considered for award on a first-come, first-served basis until
funds are depleted or until the program ends, whichever comes first.
4.Grants will not be awarded for work that has already been started or completed, or for work
that is covered by insurance. If desired work is above and beyond what insurance will pay,
and is, therefore, considered an upgrade and enhancement in the opinion of the EGEC, it
may be eligible for grant funds.
5.Grants will not be awarded to any Applicant that owes any delinquent indebtedness* to the
City of La Porte or the La Porte Development Corporation (LPDC).
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 2
BUSINESS. BY THE BAY.
6.Each grant will be awarded on a reimbursement basis once completed work has been verified
by the EGEC to be compliant with the plans proposed in the approved application. Any
deviation from the approved project may result in the total or partial withdrawal of the grant.
7.Each enhancement grant application will be subject to review by the EGEC, and approval
from the LPDC. The review criteria include the following:
The project demonstrates a significant improvement over the existing situation,
The project will add to the beautification of Main Street and/or Broadway,
The project will enhance Main Street and/or Broadways appeal to new businesses
and visitors,
The project will complement the surrounding buildings, and
The project will add value to the City of La Porte.
8.Grant applications and awards may be made in any of the reimbursable activities described
above and may be combined for any single property or project.
9.An applicant is defined as an owner, tenant, or combination thereof, who occupies space in
an eligible property within the La Porte Enhancement Grant District. A single owner of
multiple properties may apply for grant funds for each property owned, but the matching
grant must be for more than $2,500 and less than $25,000 per property in a three (3) year
period.
APPLICATION PROCESS
1.Determine eligibility: Discuss project plans with the Economic Development Coordinator, and
the Coordinator will set up a pre-development meeting with the EGEC.
2.Complete the application and sign the agreement form. Each grant application must include
the following:
a.A scale drawing by the project architect or design professional of all the work to be
completed.
b.Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will enable
the EGEC to envision the finished project.
c.Three (3) itemized work estimates on all project work from contractors or project
architects. Self-contracted work will be reimbursed for actual legitimate expenses,
excluding labor.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 3
BUSINESS. BY THE BAY.
d.Photographs of the buildings exterior. The Applicant shall be required to provide
before and after photographs of the building before the reimbursement grant can be
awarded. For the initial application, before photographs will suffice, but after
photographs of the completed project must be submitted before the grant may be
considered for reimbursement.
3.Return the completed application form, with all applicable items, to:
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
4.The application will undergo an approval process, which includes but is not limited to the
following:
a.Each project must meet current building standards and codes, as well as building
permit requirements.
b.The EGEC will only consider applications that have been properly and fully
completed, and which contain all information requested in the application and/or by
the committee.
c.All itemized work estimates submitted by the Applicant must be dated no earlier than
ninety (90) days prior to the Application request. Bids shall be submitted on the
contractors or project architects letterhead and shall contain the contractors name,
address, and telephone number and shall itemize the bid in a manner that allows the
EGEC to determine the bid components and authenticity of the bid.
d.Applications receiving approval by the EGEC shall commence construction described
in the application within ninety (90) days from the date that the enhancement grant is
approved. Each Applicant must complete the construction described in the
Application within one (1) year from the date that the grant is approved. If the
Applicant cannot meet this timeline, then the Applicant may submit a written request
for an extension of the commencement date or completion date provided the
extension request is made prior to the ninety (90) day or one (1) year time limit. The
EGEC shall not be obligated to grant an extension, but it may do so for good cause
determined solely by the members of the Committee. The extensions, if granted, shall
be for the term and for the conditions determined exclusively by the EGEC. Denial of
an extension request may not be appealed.
e.As a condition of this grant Application, the Applicant consents, and shall allow, the
EGEC to request city inspections to determine that the grant, if awarded, will not be
used for construction on any building that is not in compliance with the City Municipal
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 4
BUSINESS. BY THE BAY.
Codes and Ordinances that are applicable to the construction contemplated in the
application.
f.The EGEC and LPDC shall have sole discretion in awarding grants. They shall award
grants considering the amount requested, grant funds available, the guidelines of the
grant program, condition of the building in which the grant funds will be used,
economic impact, other grant requests, the type and nature of the construction, and
the proposed construction results considering the grant program.
g.No Applicant has a proprietary right to receive grant funds. The EGEC shall consider
any application within its discretionary authority to determine what grant amount
would be in the best interest of the grant program.
h.The Applicant shall be required to furnish before photographs of the buildings
exterior, and any other site locations that are included as part of the application
request. The applicant shall also provide after photographs once the construction
has been completed, as a condition of final grant disbursement.
i.The EGEC has the final discretion with regard to funding and reserves the right to
recommend modifications or reject any project or elements of any project.
5.Reimbursement. When the entire enhancement grant project has been completed, the
Applicant shall present the Economic Development Office with the following:
a.Copies of all paid invoices, including copies of cancelled checks and/or credit card
receipts for a single payment reimbursement of the approved funding, and
b.Photographs of all completed work.
6.When the project has been reviewed and signed off by the EGEC and their recommendations
have been presented and approved by the LPDC, a reimbursement check will be issued.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 5
BUSINESS. BY THE BAY.
La Porte Enhancement Grant Application
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Pkwy
La Porte, TX 77571
APPLICANT INFORMATION:
APPLICATION DATE:
Applicant Name
Business Name
Physical Business Address
Business Owner (if different from applicant)
Mailing Address
Contact Phone Email Address
TYPE OF WORK ():
Façade Rehabilitation/Enhancement Awnings/Signage
Beautification Other ():
DETAILS OF PLANNED IMPROVEMENTS ():
ENHANCEMENT GRANT APPLICATION
PAGE 1
BUSINESS. BY THE BAY.
Please list the name of eachContractor and/or Project Architect and the Total Amount of each bid. Please,
also, attach the original proposals and work estimates:
CONTRACTOR/PROJECT ARCHITECTTOTAL AMOUNT
1.$
2. $
3. $
4. $
5. $
BUDGET DETAIL
PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIEDTOTAL
Façade Rehab $ $ $
Awnings/Signage $ $ $
Beautification $ $ $
Other (list):$ $ $
Other (list):$ $ $
TOTALS $ $ $
Total estimated cost of proposed project: $
Amount requested (up to 50% of total cost, $2,500 to $25,000): $
I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I
intend to use these grant funds for the renovation projects, as spelled out in the application. I have not
received, nor will I receive insurance monies for this revitalization project OR I have disclosed all pertinent
insurance information.
I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result
in the partial or total withdrawal of the grant funds. If I am awarded a reimbursement grant for façade,
awning, signage, beautification, or other approved work, alterations should not be made within five (5) years
from construction; otherwise I may be required to reimburse the La Porte Development Corporation
immediately for the full amount of the grant.
APPLICANT SIGNATURE DATE
ENHANCEMENT GRANT APPLICATION
PAGE 2
LA PORTE ENHANCEMENT GRANT PROGRAM
The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development Corporation,
offers matching grants to businesses which are located in the La Porte Enhancement Grant District. A
map of the La Porte Enhancement Grant District is provided in the full explanation of the program.
Eligible improvements of the EGP include facade renovation, beautification projects, and new
awnings, canopies, porches, and signage. A single owner of multiple properties may apply for grant
funds for each property owned, but each matching grant must be for more than $2,500 and less than
$25,000 per property. Each program application will be evaluated on a case-by-case basis.
Interested business owners are welcome to complete the enclosed application form. Please deliver
applications to the following address:
Scott D. Livingston Economic
Development Coordinator
City of La Porte
604 W. Fairmont Parkway La Porte,
TX 77571
Please contact Scott D. Livingston at livingstons@laportetx.gov or 281/470-5016, if you have any
questions about the La Porte Enhancement Grant Program.
Sincerely,
Scott D. Livingston
Economic Development Coordinator City of La
Porte
LPORTE BY THE BAY
A
604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016
BUSINESS. BY THE BAY.
ELIGIBLE PROJECTS
Business owners may be eligible for a reimbursement grant of funds used to enhance and/or beautify their
businesses. The following types of projects are eligible for reimbursement grants:
Façade Rehabilitation/Enhancement
Eligible projects include work done on existing structures, such as removing non-historic/added facades,
re-pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick,
replacing windows, restoring transom windows, repairing facades, etc.
New Awnings, Canopies, Porches, and Signage
Eligible projects include replacing, adding, or repairing awnings, canopies, porches and signs.
Signs may include signboards, projecting signs, pedestrian signage, window signs, hanging
signs, and awning/canopy signs.
Beautification Projects
Eligible projects include public art, landscaping, and other beautification projects as approved by the
Enhancement Grant Evaluation Committee (EGEC).
Parking Lots
Eligible projects include new parking lot construction, parking lot paving, parking lot re-surfacing, parking space
striping/painting, new parking blocks, old parking block removal, and other projects as approved by the EGEC.
PROGRAM GUIDELINES
1.Grant funds are available only for exterior work on commercial property and building facades that
are visible from public streets in the La Porte Enhancement Grant District.
2.In general, grants offered to businesses are intended to support project to renovate or convert
existing structures to their original historic condition.
3.Grants will be processed and considered for award on a first-come, first-served basis until funds are
depleted or until the program ends, whichever comes first.
4.Grants will not be awarded for work that has already been started or completed, or for work that is
covered by insurance. If desired work is above and beyond what insurance will pay, and is, therefore,
considered an upgrade and enhancement in the opinion of the EGEC, it may be eligible for grant funds.
5.Grants will not be awarded to any Applicant that owes any delinquent indebtedness* to the City of La
Porte or the La Porte Development Corporation (LPDC).
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 3
BUSINESS. BY THE BAY.
uent Indebtedness shall mean any indebtedness due and owing to the City of La Porte or the La Porte Development Corporation,
including but not limited to, ad valorem taxes on real and personal property, which property is in fact owned by and is legally subject to
taxation, whether or not the same may have been properly rendered to the tax assessor-collector by any person. Such term shall also
include, but not be limited to, charges for penalties, interest and costs on any such ad valorem taxes; charges for water, sewer, garbage and
other services rendered or goods furnished by the City of La Porte or the La Porte Development Corporation to any person; and any other
manner of indebtedness to the City of La Porte or the La Porte Development Corporation, now existing or which may hereafter be created
by any person. No such indebtedness shall be considered u until the time for its current payment under the various ordinances of
the City of La Porte, or state statutes, or contractual agreement, shall have expired, without payment having been made.
6.Each grant will be awarded on a reimbursement basis once completed work has been verified by the EGEC
to be compliant with the plans proposed in the approved application. Any deviation from the approved
project may result in the total or partial withdrawal of the grant.
7.Each enhancement grant application will be subject to review by the EGEC, and approval from the
LPDC. The review criteria include the following:
The project demonstrates a significant improvement over the existing situation,
The project will add to the beautification of Main Street and/or Broadway,
The project will enhance Main Street and/or Broadways appeal to new businesses and visitors,
The project will complement the surrounding buildings, and
The project will add value to the City of La Porte.
8.Grant applications and awards may be made in any of the reimbursable activities described above and
may be combined for any single property or project.
9.An applicant is defined as an owner, tenant, or combination thereof, who occupies space in an eligible
property within the La Porte Enhancement Grant District. A single owner of multiple properties may
apply for grant funds for each property owned, but the matching grant must be for more than $2,500 and
less than $25,000 per property in a three (3) year period.
10.Preference will be given to all local bids for work that qualifies under the current form of the
Local Bidder Preference Policy at the time the project is approved by the Board.
11.Multiple bids are not required for each eligible project that is less than a total $2,000, of which 50% or $1,000
would be a reimbursable expenses Purchasing Policy.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 4
BUSINESS. BY THE BAY.
APPLICATION PROCESS
1.Determine eligibility: Discuss project plans with the Economic Development Coordinator, and the
Coordinator will set up a pre-development meeting with the EGEC.
2.Complete the application and sign the agreement form. Each grant application must include the
following:
a.A scale drawing by the project architect or design professional of all the work to be completed.
b.Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will enable the EGEC to
envision the finished project.
c.Three (3) itemized work estimates on all project work from contractors or project architects. Self-
contracted work will be reimbursed for actual legitimate expenses, excluding labor.
d.Photographs of the buildings exterior. The Applicant shall be required to provide before and after
photographs of the building before the reimbursement grant can be awarded. For the initial
application, before photographs will suffice, but afte photographs of the completed project
must be submitted before the grant may be considered for reimbursement.
3.Return the completed application form, with all applicable items, to:
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Parkway La Porte, TX
77571
LivingstonS@laportetx.gov
4.The application will undergo an approval process, which includes but is not limited to the following:
a.Each project must meet current building standards and codes, as well as building permit
requirements.
b.The EGEC will only consider applications that have been properly and fully completed, and which
contain all information requested in the application and/or by the committee.
c.All itemized work estimates submitted by the Applicant must be dated no earlier than
ninety (90) days prior to the Application request. Bids shall be submitted on the contracs or
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 5
BUSINESS. BY THE BAY.
project architecs letterhead and shall contain the contracs name,
address, and telephone number and shall itemize the bid in a manner that allows the
EGEC to determine the bid components and authenticity of the bid.
d.Applications receiving approval by the EGEC shall commence construction described in the
application within ninety (90) days from the date that the enhancement grant is approved. Each
Applicant must complete the construction described in the Application within one (1) year from the
date that the grant is approved. If the Applicant cannot meet this timeline, then the Applicant may
submit a written request for an extension of the commencement date or completion date provided
the extension request is made prior to the ninety (90) day or one (1) year time limit. The EGEC shall
not be obligated to grant an extension, but it may do so for good cause determined solely by the
members of the Committee. The extensions, if granted, shall be for the term and for the
conditions determined exclusively by the EGEC. Denial of an extension request may not be
appealed.
e.As a condition of this grant Application, the Applicant consents, and shall allow, the EGEC to
request city inspections to determine that the grant, if awarded, will not be used for construction
on any building that is not in compliance with the City Municipal
Codes and Ordinances that are applicable to the construction contemplated in the
application.
f.The EGEC and LPDC shall have sole discretion in awarding grants. They shall award grants
considering the amount requested, grant funds available, the guidelines of the grant program,
condition of the building in which the grant funds will be used, economic impact, other grant
requests, the type and nature of the construction, and the proposed construction results
considering the grant program.
g.No Applicant has a proprietary right to receive grant funds. The EGEC shall consider any
application within its discretionary authority to determine what grant amount would be in the best
interest of the grant program.
h.The Applicant shall be required to furnish bef photographs of the buildings exterior, and any
other site locations that are included as part of the application request. The applicant shall also
provide fte photographs once the construction has been completed, as a condition of final
grant disbursement.
i.The EGEC has the final discretion with regard to funding and reserves the right to recommend
modifications or reject any project or elements of any project.
5.Reimbursement. When the entire enhancement grant project has been completed, the Applicant
shall present the Economic Development Office with the following:
a.Copies of all paid invoices, including copies of cancelled checks and/or credit card receipts for a
single payment reimbursement of the approved funding, and
b.Photographs of all completed work.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 6
BUSINESS. BY THE BAY.
6.When the project has been reviewed and signed off by the EGEC and their recommendations have been
presented and approved by the LPDC, a reimbursement check will be issued.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 7
BUSINESS. BY THE BAY.
La Porte Enhancement Grant Application
tƌĻğƭĻ ƦƩźƓƷ ĭƌĻğƩƌǤ͵ tƌĻğƭĻ ƭǒĬƒźƷ ğ ĭƚƒƦƌĻƷĻķ ğƦƦƌźĭğƷźƚƓ Ʒƚʹ
Scott D. Livingston
Economic Development Coordinator City of La
Porte
604 W. Fairmont Pkwy La Porte, TX
77571
APPLICANT INFORMATION:
APPLICATION DATE:
Applicant Name
Business Name
Physical Business Address
Business Owner (if different from applicant)
Mailing Address
Contact Phone Email Address
ĭŷĻĭƉ ğƌƌ ƷŷğƷ ğƦƦƌǤ
TYPE OF WORK ():
Façade Rehabilitation/Enhancement Awnings/Signage
ķĻƭĭƩźĬĻ
Beautification Other ():
ğƷƷğĭŷ ğķķźƷźƚƓğƌ ƦğŭĻƭ źŅ ƓĻĭĻƭƭğƩǤ
DETAILS OF PLANNED IMPROVEMENTS ():
ENHANCEMENT GRANT APPLICATION
PAGE 1
BUSINESS. BY THE BAY.
Please list the name of each Contractor and/or Project Architect and the Total Amount of each bid. Please,
also, attach the original proposals and work estimates:
CONTRACTOR/PROJECT ARCHITECT TOTAL AMOUNT
1. _________________________ $
2. $
3. $
4. $
5. $
BUDGET DETAIL
PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIED TOTAL
Façade Rehab $ $ $
Awnings/Signage $ $ $
Beautification $ $ $
Other (list): $ $ $
Other (list): $ $ $
TOTALS $ $ $
Total estimated cost of proposed project: $
Amount requested (up to 50% of total cost, $2,500 to $25,000): $
tƌĻğƭĻ ğƷƷğĭŷ ĭƚƌƚƩ ƭğƒƦƌĻƭͲ ƒƚķĻƌ ƓǒƒĬĻƩƭ ΛŅƚƩ ǞźƓķƚǞƭͲ ķƚƚƩƭͲ ĻƷĭ͵ΜͲ ƦŷƚƷƚƭͲ ƭĭğƌĻ ķƩğǞźƓŭͲ ğƓķ ƚƷŷĻƩ
źƌƌǒƭƷƩğƷźƚƓƭ ƚŅ ǞƚƩƉ Ʒƚ ĬĻ ĭƚƒƦƌĻƷĻķ͵ tƌĻğƭĻ źƓĭƌǒķĻ ğƭ ƒǒĭŷ ķĻƷğźƌ ğƭ ƦƚƭƭźĬƌĻ͵
Your signature on this application certifies that you understand and agree with the following statements:
I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I intend to
use these grant funds for the renovation projects, as spelled out in the application. I have not received, nor will I receive
insurance monies for this revitalization project OR I have disclosed all pertinent insurance information.
I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the
partial or total withdrawal of the grant funds. If I am awarded a reimbursement grant for façade, awning, signage,
beautification, or other approved work, alterations should not be made within five (5) years from construction; otherwise
I may be required to reimburse the La Porte Development Corporation immediately for the full amount of the grant.
APPLICANT SIGNATURE DATE
ENHANCEMENT GRANT APPLICATION
PAGE 2
CITY OF LA PORTE, TEXAS
LOCAL BIDDER PREFERENCE POLICY
Purpose:
The purpose of the policy is to implement Sections 271.905 and 271.9051 of the Texas
L
e award of competitively bid contracts, and to adopt similar guidelines for
award of quotes for purchases not subject to bidding requirements under state law, for
the acquisition of certain goods and services.
Procedure:
1. Scope
a. This policy applies to the purchase of real property, personal property that is
not affixed to real property, or services, including construction services,
through submission of Competitive Bids for purchases of more than fifty
thousand dollars ($50,000.00), or in the case of purchases between twenty-
five thousand dollars ($25,000.00) and fifty thousand dollars ($50,000.00), the
submission of quotes.
2. Definitions:
i. Lowest Responsible Bid/Quote - Price is the single determinant
factor when awarding a bid or quote to a responsible vendor.
ii. Principal Place of Business business that is headquartered in and
has an established place of business in the incorporated limits of
the City of La Porte, and from which
performance of a commercially useful function or a substantial part
of its operations is conducted. A location utilized as a post office
box, mail drop or telephone message center or any combination
thereof, with no other substantial work function, shall not be
construed as a principal place of business.
3. Criteria for Award of Bid
a. In contracts for the purchase of real property or personal property that is not
affixed to real property, if the city receives one or more competitive bids from
a vendor that is a local business and whose bid is within three percent (3%) of
the lowest bid price received by the city from a bidder that is not a local
business, the city may enter into a contract in an amount equal to or greater
than five hundred thousand dollars ($500,000.00) with:
(I) the lowest bidder; or
(2) the local bidder that has a principal place of business in La Porte, as
defined herein, provided the La Porte City Council determines, in writing,
that awarding to the local bidder offers the city the best combination of
contract price and economic development opportunities.
one or more competitive bids equal to or exceeding $500,000.00 are received
from a vendor that is a local business and which are within three percent (3%)
entitled to consideration for local preference under this section, along with the
low bid.
b. In contracts for the purchase of real property, personal property that is not
affixed to real property, or services, if the city receives one or more
competitive bids from a vendor that is a local business and whose bid is
within five percent (5%) of the lowest bid price received by the city from a
bidder that is not a local business, the city may enter into a contract for an
amount greater than fifty thousand dollars ($50,000.00) but less than five
hundred thousand dollars ($500,000.00), or in the case of construction
services, a contract greater than fifty thousand dollars ($50,000.00) but less
than one hundred thousand dollars ($100,000.00), with:
(I) the lowest bidder; or
(2) the local bidder that has a principal place of business in La Porte, as
defined herein, provided the La Porte City Council determines, in writing,
that awarding to the local bidder offers the city the best combination of
contract price and economic development opportunities.
equal to or below $50,000.00,
but where one or more competitive bids exceeding $50,000.00 are received
from a vendor that is a local business and which are within five percent (5%)
then in that event the local bid or bids shall be
entitled to consideration for local preference under this section, along with the
low bid.
A bid for construction services received from a vendor that is a local business
that is in the amount of $100,000.00 or more shall not be entitled to
consideration for local preference under this policy, regardless of whether the
The chart below is a summary of the criteria for Lowest Responsible Bids, for
local business bidders:
LGC 271.9051
LGC 271.905
5% price differential 3% price differential
Construction bids greater than $50,000
All other bids, excluding construction
but less than $100,000
and services, equal to or greater than
$500,000.
All other bids, including services,
greater than $50,000 but less than
$500,000
1. Criteria for Award of Quote
In contracts for the purchase of real property, personal property that is not
affixed to real property, or services, if the city receives one or more quotes
from a vendor that is a local business and whose quote is within five percent
(5%) of the lowest quote received by the city from a vendor that is not a local
business, the city may enter into a contract for an amount between twenty-
five thousand dollars ($25,000.00) and fifty thousand dollars ($50,000.00)
with:
(I) the vendor submitting the lowest quote; or
(2) the local vendor that has a principal place of business in La Porte, as
defined herein, provided the La Porte City Council determines, in writing,
that awarding to the local vendor offers the city the best combination of
contract price and economic development opportunities.
where one or more quotes exceeding $25,000.00 are received from a vendor that
is a local business and which a
submission, then in that event the local quote or quotes shall be entitled to
consideration for local preference under this section, along with the low quote.
2. Local Bidder Preference Consideration Application
a. A new Local Bidder Preference Consideration Application form must be
submitted with each competitive bid or quote submission by the due date.
b. This application serves to ensure the qualifications of the vendor
submitting a bid or quote and in the case of purchases of more than
fifty-
five thousand dollars$50,000.00serves as the basis for meeting the
(),
state law requirement that the governing body find in writing, that a bidder
is a local bidder.
c. Vendors seeking local preference must meet all specifications and
requirements contained in the bid documents or request for quotes.
3. Exceptions
a. This policy does not apply to purchases obtained through a Request for
Qualifications (RFQ), Request for Proposals (RFP), bids involving Federal
funds, Cooperative Purchases, Emergencies or Inter-local Agreements, or
purchases for services subject to the Professional Services Procurement Act,
Texas Government Code Chapter 2254.
b. Bids received for contracts relating to telecommunication or information
services are ineligible for consideration under this local preference policy, for
purchases greater than fifty thousand dollars ($50,000.00) but less than five
hundred thousand dollars ($500,000.00)
.
4. The City Council may award a competitively bid contract to the lowest
responsible bidder, local bidder consistent with this policy and state law, or
reject all bids, and likewise, may award a quote to the lowest responsible
vendor, local vendor consistent with this policy, or reject all quotes.
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
July 7, 2015July 7, 2015AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
4B Board4B Board
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. CM Approved Budget for FY 2015 CM Approved Budget for FY 2015--20162016
2. Adopted Budget for FY 2014 Adopted Budget for FY 2014--20152015
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Staff met with representatives of the Finance Department, Assistant City Manager, and City Manager on 15 June Staff met with representatives of the Finance Department, Assistant City
Manager, and City Manager on 15 June
2015 to discuss the proposed budget for the La Porte Development Corporation. On the same day the City 2015 to discuss the proposed budget for the La Porte Development Corporation.
On the same day the City
Manager made some changes and then approved the enclosed form of the proposed budget for FY 2015 Manager made some changes and then approved the enclosed form of the proposed budget
for FY 2015 -- 2016. 2016.
Please note the following: Please note the following:
The figures for The figures for Personnel ExpensesPersonnel Expensesin Accounts #10in Accounts #10--10 to 1010 to 10--90 on page #1 are provided by the Finance 90 on page #1 are
provided by the Finance
Department. Department.
The figures for The figures for Special ProgramsSpecial Programsin Account #99in Account #99--97 on page #5 are provided by the Finance 97 on page #5 are provided by the Finance
Department. Department.
The figures for Debt Service in Account #90The figures for Debt Service in Account #90The figures for Debt Service in Account #90The figures for Debt Service in Account #90----04 on
page #5 are also provided by the Finance Department. 04 on page #5 are also provided by the Finance Department. 04 on page #5 are also provided by the Finance Department. 04 on page
#5 are also provided by the Finance Department.
The Finance Department requested that the EDC pay for the EDCThe Finance Department requested that the EDC pay for the EDCs portion of a citys portion of a city--wide contract for
the wide contract for the
annual SUTA & STARS Reporting FeesSUTA & STARS Reporting Feesin Account #038in Account #038--60306030--565.50565.50--07 for Other Professional 07 for Other Professional
Services. The SUTA Fees are 35% of new sales tax revenues as a result of MuniServiceServices. The SUTA Fees are 35% of new sales tax revenues as a result of MuniServices audits.
The s audits. The
STARS Reporting Fees is for a tax analysis and reporting service provided by MuniServices. STARS Reporting Fees is for a tax analysis and reporting service provided by MuniServices.
The amount of expenditures proposed in the Proposed Budget for FY 2015The amount of expenditures proposed in the Proposed Budget for FY 2015--2016 is $1,038,974, which is 2016 is $1,038,974,
which is
$379,637 less than the current fiscal year. $379,637 less than the current fiscal year.
Other noteworthy items include the following: Other noteworthy items include the following:
Account #90Account #90--04 for 04 for Debt ServiceDebt Servicedecreased by $403,149, decreased by $403,149,
Account #50Account #50--07 for 07 for Other Professional ServicesOther Professional Servicesdecreased by $10,000 to seek Certification as an decreased by $10,000 to seek Certification
as an
Accredited Economic Development Corporation. (Note: We have to formulate a Strategic Plan, which will Accredited Economic Development Corporation. (Note: We have to formulate a Strategic
Plan, which will
take most of the next fiscal year, before we can seek certification as an AEDO.) take most of the next fiscal year, before we can seek certification as an AEDO.)
Account #50Account #50--07 for 07 for Other Professional ServicesOther Professional Serviceswas increased by $20,000 to obtain outside assistance in was increased by $20,000 to obtain
outside assistance in
building Board, Council, and community consensus regarding which projects and the priorities of the building Board, Council, and community consensus regarding which projects and the
priorities of the
projects that should be included in the Economic Development Strategic Plan. projects that should be included in the Economic Development Strategic Plan.
$50,000 has been set aside for $50,000 has been set aside for Workforce Training IncentivesWorkforce Training Incentivesin account #038in account #038--60306030--565.99565.99--97.
Staff is 97. Staff is
in early discussion with both Albemarle and AMPAC Fine Chemicals regarding interest in applying to the in early discussion with both Albemarle and AMPAC Fine Chemicals regarding interest
in applying to the
ED Board for assistance for anticipated costs for ED Board for assistance for anticipated costs for primary job trainingprimary job training. .
The Board may wish to consider transferring additional funds to replenish, and perhaps increase, the The Board may wish to consider transferring additional funds to replenish, and perhaps
increase, the
amount of funds which are available to support the La Porte Enhancement Grant Program. All capital that amount of funds which are available to support the La Porte Enhancement Grant
Program. All capital that
funds the La Porte Enhancement Grant Program is reserved in CIP Account #015funds the La Porte Enhancement Grant Program is reserved in CIP Account #015--98929892--993 and to which 993
and to which
is also referred as Project 993 is also referred as Project 993 Façade GrantFaçade Grant. . The current balance available is $209,091. Outstanding The current balance available
is $209,091. Outstanding
grant commitments for approved projects are as follows: grant commitments for approved projects are as follows:
Eagle Energy Resources, LLC Eagle Energy Resources, LLC -- $25,000.00 $25,000.00
Lafitte Cajun Station Lafitte Cajun Station -- $25,000.00 $25,000.00
The Oak Center The Oak Center -- $16,759.93 $16,759.93
Assuming each Enhancement Grant Project receives a full reimbursement of the committed grant funds, the Assuming each Enhancement Grant Project receives a full reimbursement of the committed
grant funds, the
remaining balance in the Enhancement Grant Account would be approximately $142,331. Therefore, in order to remaining balance in the Enhancement Grant Account would be approximately
$142,331. Therefore, in order to
replenish and fund the expanded area of the La Porte Enhancement Grant Program, please consider adding at replenish and fund the expanded area of the La Porte Enhancement Grant Program,
please consider adding at
least $107,669 to this account to bring the total, after considering payments to the three existing projects, to least $107,669 to this account to bring the total, after considering
payments to the three existing projects, to
$250,000.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Discussion and possible action regarding the proposed budget of the La Porte Development Corporation for FY Discussion and possible action regarding the proposed budget of the La Porte
Development Corporation for FY Discussion and possible action regarding the proposed budget of the La Porte Development Corporation for FY Discussion and possible action regarding the
proposed budget of the La Porte Development Corporation for FY
2015-2016.
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: 7 July 2015
Source of Funds:
Requested By: Scott D. Livingston
Account Number:
Department: Administration/Economic Development
Amount Budgeted:
Report: Resolution: Ordinance:
Amount Requested:
Exhibit: 10 Year Payback Model wPrimary Job Values
Budgeted Item:YESNO
Exhibit: Catalytic Project Evaluation
Exhibit: Catalytic Project Program - Summary Eval Form
SUMMARY & RECOMMENDATION
As a result of the activity and discussion related to multiple projects this past spring, the ED
Board asked staff to create and propose new incentive programs that might be extended to a
promote the development
broader range of projects. The purpose of this current program is to
of new or expanded business enterprises
according to the extent of the parameters allowed in
Texas Local Government Code Chapter 501.103. A direct result of these new programs will be
to encourage new commercial investment that will redevelop and revitalize older areas of the
City of La Porte. Eligible projects will include everything in the La Porte Enhancement Grant
Program, plus projects allowed under Local Government Code Chapter 501.103 as listed here:
Sec. 501.103. CERTAIN INFRASTRUCTURE IMPROVEMENT PROJECTS.
In this subtitle, "project" includes expenditures that are found by the board of directors to be
infrastructure necessary to promote or develop new or expanded
required or suitable for
business enterprises
, limited to:
(1)streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities,
drainage, site improvements, and related improvements;
(2) telecommunications and Internet improvements; or
(3) beach remediation along the Gulf of Mexico.
Therefore, in addition to the proposal to expand the boundaries of the La Porte Enhancement
Grant Program, staff offers the following economic development incentive programs for the
Although a project may qualify for more than one (1) incentive program,
each project may only apply for, and receive, funds through one (1) incentive program. For
e new programs outlined below, or that request more
funds than any single program will allow, the Board may wish to refer the prospective business
to the Small Business Development Center for assistance.
Recommended Model/Program for
New Projects
10 Year Payback Model with Primary Job Value
promote the development of new or expanded
The purpose of this current program is to
business enterprises
according to the extent of the parameters allowed in Texas Local
Government Code Chapter 501.103. The information provided in this section is intended to
establish firmer guidelines and/or a policy
including retail,
offer economic development incentives to a broader range of projects,
restaurant, and industrial projects
inside the city limits of La Porte. W
-
amount of incentive to every project, invariably some projects will require specialattention and
consideration.
The version of the 10 year payback model used for ACT Independent Turbo Services, Inc. said
that a project may receive up to the total amount of property and sales tax revenues for 10 years.
Therefore, ACT Turbo received a commitment of $426,000. Another version of the 10 year
payback model, which was used for the Pipeline Grill, said that a project may receive up to the
total amount of property and sales tax revenues for 10 years, provided the total amount awarded
not25%
wasmore than
payback sum was approximately $850,000. 25% of the total, anticipated amount of capital
expenditures (i.e. $1.2 million) to complete the project was $300,000. Therefore, the Pipeline
Grill received the lesser amount of $300,000. If the same 10 year payback model that was used
on the Pipeline Grill had also been used on ACT Turbo, ACT Turbo still would have received
the same amount. s $426,000, which is less than $1.65
million (i.e. 25% of $6.6 million of capital expenditure). Therefore, the maximum that ACT
Turbo could (and did) receive would be the lesser amount of $426,000.
Therefore, to provide consistency for use with future projects, the Board may wish to consider
codifying the current 10 year payback model and re-state it as follows:
lesser
amount of either (a) the total actual
amount of property and sales tax revenues that it is expected to generate (or
actually generates)
25%
or (b)
defined by Texas Local Government Code Chapter 501.103,and/or
, as defined
by Texas Local Government Code Chapters 501.
Notwithstanding the purpose of this program in accordance with Texas Local Government Code
Chapter 501.103, a direct result of this new program will be to encourage new commercial
development and/or redevelopment of older commercial properties throughout the City of La
Porte. Staff proposes that all projects that wish to apply for a development grant under the terms
of this program must also adhere to each of the following criteria:
(1)
will be considered. (Note: In other words, never give more than the Board has to give.)
(2)Only the minimum amount of financial assistance required to bring the project to fruition
will be considered.
(3)
(4)The incremental tax revenues, including both property and sales tax revenues, to be
generated by each project, which may be verified in the quarterly and annual STARS
Reports, will be included in the model.
(5)The value of number of new jobs associated with each project will be assigned a value
and included in the model as follows:
0.15
a.A value of per job will be assigned for higher paying, white collar,
primary
engineering, engineering d
0.125
b.A value of per job will be assigned to highly skilled positions for a process
primary
technicia
0.10primary
c.A value of per job will be .
0.075primary
d.A value of per job will be assigned to unskilled , and
0non-primary
e.A value of per job will be assigned to .
(6)The ED Board and/or City Council will retain discretion to award any lesser or
greater amount to any given project.
Below are some possible future uses of the 10 year payback model:
Example #1: A hypothetical, 5,000 square foot restaurant costs $2.5 million to construct, and it
is projected to generate $5 million in new, annual retail sales. According to the model, this
$625,000
project may receive up to .25% of $2.5 million is $625,000, which is less than the 10
not
year payback sum of $1.2 million. This maximum estimate does include the additional
limitations imposed by bullets #1-6above.
Example #2: A hypothetical, 135,000 square foot retail store costs $20 million to construct, and
it projects to generate $25 million in annual retail sales. According to the model, this project
may receive up to $5 million. 25% of $20 million is $5 million, which is less than the 10 year
not
payback sum of $6.5 million. This maximum estimate does include the additional
limitations imposed by bullets #1-6 above.
Example #3: $17 million investment for industrial expansion inside the city limits of La Porte.
The number of new jobs included with the industrial expansion accelerate the payback and
decrease the number of years in the payback model. According to the model, this project may
receive up to $1.66 million. The 10 year payback sum of $1.66 million is less than 25% of the
not
total capital expenditure, which is $4.25 million. This maximum estimate does include the
additional limitations imposed by bullets #1-6 above.
For detailed information regarding the formulas used in this analysis, please refer to the
Staff would be responsible for screening each applicant according to the minimum, established
qualifications. Staff would also be responsible for calculating the estimated value of an
economic development incentive for this project. Approval for each project would require an
economic development agreement, plus approval by both the ED Board and the City Council.
Recommended Model/Program for
Existing Businesses
Catalytic Projects
promote the development of new or expanded business
The purpose of program is to
enterprises
according to the extent of the parameters allowed in Texas Local Government Code
Chapter 501.103. A direct result of this new program will be to encourage the investment of
redevelopexisting, commercial properties
private business capital to and improve in highly
visible areas of the city, which are clustered around the following areas and intersections of the
City of La Porte:
Intersection of W. Fairmont Pkwy and S. Broadway,
Intersection of 5 Points,
Main Street District,
Intersection of W. Main Street/Spencer Hwy and SH 146,
Southeast corner of Farrington Drive and Spencer Hwy,
Northern corners of Myrtle Creek and Spencer Hwy,
Southern corners of Underwood Road and Spencer Hwy, and
Any other areas of the ED Board and La Porte City Council might wish to consider.
Eligible projects under this program would include everything in the La Porte Enhancement
Grant Program, plus everything allowed in Texas Local Government Code Chapter 501.103.
The proposed payment or reimbursable payment schedule would be based upon the factors
Please note that the remaining information in this section, and especially the details
below.
regarding how to rate each of the ten categories on a scale of 0 to 5, is not 100% complete.
new value to projects. As compared to all the other programs/models in this agenda item, this
Based upon feedback from the Board, strevise and
one is the most complex.
finalize the full details of this program/model for approval of the Board at a future meeting
date.
Each applicant should meet at least one (1) of the following qualifications:
Capital investment/expenditure25%
(1)that results in at least a increase in
commercial property and/or sales tax revenues, or
Capital investment/expenditure20%
(2)that results in at least a increase in
the number of full time and/or part time employees, or
Capital investment/expenditure 25%
(3)that is equal to or greater than of the
current taxable, appraised value of the commercial property.
Ten
categories as follows:
(1)Number of Years that the Business has been in the Community,
(Note: This item is intended to be irrespective of how many times the
business has relocated within the community. This essentially rewards the
business for staying and expanding in the community, as opposed to leaving
the community.)
(2)Multiplier Impact of the Project to Catalyze Additional Investment,
(3)Priority Value of the Project,
(4)Percentage Increase in the Number of New Jobs,
(5)Payback Period in Years,
(6)Amount of Capital Investment as % of Taxable, Appraised Value
(7)Degree of Beautification and Removal of Blight,
(8)Location of the Project,
(9)Degree of Desirability of the Expanded or New Business, and
(10)Age of the Building in Years.
0-5
points scored for each of the ten categories, for a maximum score of 50 points,
$7,500
offered for each point scored, and
$375,00050%
A maximum project award of either or of the total capital expenditure.
More specifically, each of the ten (10) categories could be evaluated and scored as follows:
Number of Years that the Business has been in the Community
012345
(= Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30 or more)
Multiplier Impact of the Project to Catalyze Additional Investment
0123
(= Insignificant; = Somewhat Significant; = More Significant; = Even More
45
Significant; = Very Significant; = Most Significant)
Priority Value of the Project
012345
(= Not a Priority; = Low; = Lower Middle; = Middle; = Higher; = Highest)
Percentage Increase in the Number of New Jobs,
012345
(= Less than 20%; = 21-40%; = 41-60%; = 61-80%;= 81-99%; = 100% or
More)
Payback Period in Years
012345
(= More than 10 yrs; = 9 yrs; = 8 yrs; =7 yrs;= 6 yrs; = 5 or fewer years)
Amount of Capital Investment as % of Taxable, Appraised Value
012345
(= Less than 25%; = 26-40%; = 41-60%; = 61-80%;= 81-99%; = 100% or
More)
Degree of Beautification and Removal of Blight
0123
(= Insignificant; = Somewhat Significant; = More Significant; = Even More
45
Significant; = Very Significant; = Most Significant)
Location of the Project
0123
(= Insignificant; = Somewhat Significant; = More Significant; = Even More
45
Significant; = Very Significant; = Most Significant)
Degree of Desirability of the Expanded or New Business
0123
(= Insignificant; = Somewhat Significant; = More Significant; = Even More
45
Significant; = Very Significant; = Most Significant)
Age of the Building in Years
012345
(= Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30 or more)
For a sample of the table to compute the score for each project, please refer to the enclosed
Project Program - Summary
Staff would be responsible for screening each applicant according to the minimum, established
qualifications. The members of the ED Board would be responsible for scoring each project.
Board members and/or staff would average the scores assigned by each Board Member to assign
a final score to each project. Approval for each project would require an economic development
agreement, plus approval by both the ED Board and the City Council.
Other Possible Programs/Models
Enhancement Grant PLUS
promote the development of new or expanded business
The purpose of program is to
enterprises
according to the extent of the parameters allowed in Texas Local Government Code
Chapter 501.103. A direct result of this new program will be to encourage the investment of
redevelopexisting, commercial properties
private business capital to and improve in highly
visible areas of the city, which are clustered around the following areas and intersections of the
City of La Porte:
Intersection of W. Fairmont Pkwy and S. Broadway,
Intersection of 5 Points,
Main Street District,
Intersection of W. Main Street/Spencer Hwy and SH 146,
Southeast corner of Farrington Drive and Spencer Hwy,
Northern corners of Myrtle Creek and Spencer Hwy,
Southern corners of Underwood Road and Spencer Hwy, and
Any other areas of the ED Board and La Porte City Council might wish to consider.
Eligible projects under this program would include everything in the La Porte Enhancement
Grant Program, plus everything allowed in Local Government Code Chapter 501.103.The
proposed payment or reimbursable payment schedule would be as follows:
The levels reflected in the table above assume that we will receive decreasing numbers of
applications as one moves to increasing levels of expenditure. Since 20% of $1 million is
$200,000 and 25% of $800,000, a commercial property owner has no incentive to spend an
additional $200,000 on his/her property. Therefore, the rate of 25% was maintained for sums
between $800,001 and $1 million. Any project greater than $1 million in expenditure would
have to accept $250,000 or apply through another program.
Staff would be responsible for screening each applicant according to the minimum, established
qualifications. Staff would also be responsible for calculating the estimated value of an
economic development incentive for this project. According to the current form of the
-laws, approval for each project would require an executive development
agreement, plus approval by both the ED Board and the City Council.
Evaluating Projects according to Priorities
The ED Board has theauthority to award economic development incentives to encourage a wide
variety of projects in the interest of the City of La Porte.
priorities as a factor of consideration in any model/program that the Board might with to use to
assign value to a project and offer an economic development incentive. In order to do this,
however, staff needs the Board to give it direction regarding the priority of many, competing,
and dissimilar projects.
101
Staff assigned prioritized values, from a maximum of to a minimum of , based upon his
New Retail/Restaurant Development (Higher Quality) 10
Retail or Restaurant Re-Development/Blight Removal (Higher Quality) 9
Quality Waterfront Development 8
Projects on Main Street 7
New Retail/Restaurant Development (Lower Quality) 6
Retail or Restaurant Re-Development/Blight Removal/EHG (Lower Quality) 6
Industry - NEW Development (Higher Quality) 5
NEW Office/HQ Development 4
NEW Office/Regional Development 4
Industry - NEW Development (Lower Quality) 3
Industry - RETENTION/EXPANSION (Higher Quality) 3
Industry - RETENTION/EXPANSION (Lower Quality) 2
Airport Re-Development 1
Other possible projects:
Infrastructure Improvements on Main Street, Infrastructure
Improvements on S. Broadway, Quality of Life Projects (waterpark, Lomax Arena, etc.)
Please consider the following:
Should these competing projects be re-prioritized?
priorities be reflected in the new programs/models?
Action Required by the La Porte Development Corporation Board:
Discussion and possible action to offer new, additional incentive programs that will promote the
development of new or expanded business enterprises and encourage new commercial
investment that will redevelop and revitalize older areas of the City of La Porte.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
BUSINESS.BY THE BAY.
Catalytic Project Program
Application Evaluation
EVALUATOR:
EVALUATION DATE:
TOTAL POINTS AWARDED (50 points possible):
Applicant Information
APPLICATION DATE:
BUSINESS NAME:
CONTACT NAME:
BUSINESS ADDRESS:
PHONE: EMAIL:
Please evaluate the application for the above-named business, using the following criteria. For each item,
please rate the project being proposed using a scale of 1 to 5, where 1 means that the applicant has not met
the criteria in any way, and 5 means that the applicant has met the criteria completely. Please circle the
appropriate response for each item.
1. Number of Years that the Business has been in the Community
012345
( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30 or more)
1 2 3 4 5
2. Multiplier Impact of the Project to Catalyze Additional Investment
0123
( = Insignificant; = Somewhat Significant; = More Significant; = Even More
45
Significant; = Very Significant; = Most Significant)
1 2 3 4 5
3. Priority Value of the Project
012345
( = Not a Priority; = Low; = Lower Middle; = Middle; = Higher; = Highest)
1 2 3 4 5
BUSINESS. BY THE BAY.
604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470-5016
BUSINESS.BY THE BAY.
4. Percentage Increase in the Number of New Jobs
0123 45
( = Less than 20%; = 21-40%; = 41-60%; = 61-80%; = 81-99%; = 100% or More)
1 2 3 4 5
5.Payback Period in Years
0123 45
( = More than 10 yrs; = 9 yrs; = 8 yrs; = 7 yrs; = 6 yrs; = 5 or fewer years)
1 2 3 4 5
6.Amount of Capital Investment as % of Taxable, Appraised Value
0123 45
( = Less than 25%; = 26-40%; = 41-60%; = 61-80%; = 81-99%; = 100% or More)
1 2 3 4 5
7.Degree of Beautification and Removal of Blight
01234
( = Insignificant; = Somewhat Significant; = More Significant; = Even More Significant; = Very
5
Significant; = Most Significant)
1 2 3 4 5
8.Location of the Project
01234
( = Insignificant; = Somewhat Significant; = More Significant; = Even More Significant; = Very
5
Significant; = Most Significant)
1 2 3 4 5
9.Degree of Desirability of the Expanded or New Business
01234
( = Insignificant; = Somewhat Significant; = More Significant; = Even More Significant; = Very
5
Significant; = Most Significant)
1 2 3 4 5
10.Age of the Property in Years
012345
( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30 or more)
1 2 3 4 5
BUSINESS. BY THE BAY.
604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470-5016
Average Score
)
# of Evaluations
0
Total Average Score (out of 5
5016
Total Score
-
, Texas 77571 (281) 470
Initial Review Date:
Application Evaluation Summary
Program
.
BY THE BAY
Mail:
Catalytic Project
-
604 W. Fairmont Parkway La Porte
E
Multiplier Impact of the Project to Catalyze Additional Investment
BUSINESS.
Capital Investment as % of Taxable, Appraised Value
of Years that the Business has been in the Community
Degree of Desirability of the Expanded or New Business
New Jobs
Degree of Beautification and Removal of Blight
Criteria
BY THE BAY.
of
Percentage Increase in the Number
in Years
Priority Value of the Project
Payback Period in Years
Location of the Project
Age of the Property
Business Address:
Application Date:
Business Name:
Contact Name:
BUSINESS.
Amount of
Number
Phone: