HomeMy WebLinkAbout01-11-16 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
January 11, 2016January 11, 2016, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte,
Texas,
beginning at 5:00 PM to consider the following items of business:beginning at 5:00 PM to consider the following items of business:
1.CALL TO ORDERCALL TO ORDER
2.CONSENT AGENDACONSENT AGENDA (All consent agenda items are considered routine by the La Porte (All consent agenda items are considered routine by the La Porte
Development Corporation Board and will be enacted by one motion. There will be no separate Development Corporation Board and will be enacted by one motion. There will be no separate
discussion of these items unless a Board member requests an item be removed and considered discussion of these items unless a Board member requests an item be removed and considered
separately)separately)
Consider approval or other action of minutes of the La Porte Development Corporation Consider approval or other action of minutes of the La Porte Development Corporation
(a)
Board meeting held on December 14, 2015 Board meeting held on December 14, 2015 -- P. Fogarty P. Fogarty
Receive Financial Report Receive Financial Report -- S. Livingston S. Livingston
(b)
3.AUTHORIZATIONSAUTHORIZATIONS
Consider approval or other action authorizing an enhancement grant in an amount not to Consider approval or other action authorizing an enhancement grant in an amount not to
(a)
exceed $42,057.86 payable to Brotamonte Asset 1, LLC., and associated development exceed $42,057.86 payable to Brotamonte Asset 1, LLC., and associated development
agreement, for infrastructure improvements to apartment building complex located at 315 N. agreement, for infrastructure improvements to apartment building complex located at 315 N.
2nd Street with payment to be remitted at the completion of the project 2nd Street with payment to be remitted at the completion of the project -- S. Livingston S. Livingston
Consider approval or other action authorizing an incentive grant in an amount not to exceed Consider approval or other action authorizing an incentive grant in an amount not to exceed
(b)
$250,000.00 payable to Fischer's Hardware, Inc., and associated development agreement, $250,000.00 payable to Fischer's Hardware, Inc., and associated development agreement,
for infrastructure improvements to property located at 1010 S. Broadway Street, with for infrastructure improvements to property located at 1010 S. Broadway Street, with
payment to be remitted at the completion of the project payment to be remitted at the completion of the project -- S. Livingston S. Livingston
Consider approval or other action to adopt proposed amendments to the ByConsider approval or other action to adopt proposed amendments to the By--Laws of the
(c)
La Porte Development Corporation and forward proposed amendments to the corporation's La Porte Development Corporation and forward proposed amendments to the corporation's
byby--laws to the City Council for consideration laws to the City Council for consideration -- S. Livingston S. Livingston
4.SET DATE FOR NEXT MEETING SET DATE FOR NEXT MEETING -- S. Livingston S. Livingston
5.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.
6.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 January 11, 2016, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the January 11, 2016, agenda of items
to be considered by the Board of the La Porte Development
Corporation was placed on the City Hall Bulletin Board on January 5, 2016 .Corporation was placed on the City Hall Bulletin Board on January 5, 2016 .
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 DECEMBER 14, 2015
December 14, 2015,
The City of La Porte Development Corporation Board met on at the City Hall Council
5:00 p.m
Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of
business:
1. CALL TO ORDER
President Richard Warren called the meeting to order at 5:00 p.m. The following members of the
La Porte Development Corporation Board were present: Vice-President Cooksley, Board members
Clausen, Engelken, Woodard, Martin and Ojeda. Staff Present: Corby Alexander, Traci Leach, Patrice
Fogarty, Scott Livingston, and Clark Askins.
2. STAFF REPORTS
(a) Receive Financial Report S. Livingston
Finance Director Michael Dolby presented the Financial Report from the unaudited statement.
Board member Martin questioned if commitments have been received from Richard Industrial Group and
ACT Independent Turbo Service, Inc. Economic Development Coordinator Scott Livingston responded no;
payment requests have not been received from either. Mr. Livingston advised that out of courtesy, they can
be reminded; however, it is up them to request payment.
3. AUTHORIZATIONS
(a)
Consider approval of minutes of the meeting of La Porte Development Corporation Board held on
November 11, 2015 S. Harris
Board member Engelken moved to approve minutes of the meeting of La Porte Development
MOTION
Corporation Board held on November 11, 2015. Vice-President Cooksley seconded.
PASSED.
Ayes: President Warren, Board members Vice-President Cooksley,
Board members Woodard, Clausen, Engelken, Ojeda and Martin
Nays: None
Absent: None
(b)
Consider approval or other action authorizing an enhancement grant amount not to exceed
$42,057.86 to Brotamonte Asset 1, LLC., at the completion of the project S. Livingston
Economic Development Coordinator Scott Livingston presented a summary.
Page 1 of 3
December 14, 2015, La Porte Development Corporation Board Minutes
Board member Woodard questioned new and expanding business enterprises in the
summary and recommendation of the agenda request. Economic Development Coordinator Scott
Livingston responded this is a legal justification for spending economic development funds, and
Assistant City Attorney Clark Askins advised the statute does not reference residential development
and that Board members are to use their best judgement on the definition of nding
business enterprises. Board member Woodard asked if the project is for Section 8 housing.
Mr. Livingston responded no. Board member Woodard asked if half the amount of the project will be
spent on renovating the interior of the apartments. Mr. Edwin Brotamonte, the new owner of the Sylvan
Beach Apartments, responded yes.
Mr. Brotamonte presented his plan for the proposed project for the Sylvan Beach Apartments.
Board member Woodard asked what percentage of the units are leased; and if he is a general partner.
Mr. Brotamonte responded 65 percent of the units are leased; and, yes, he is a general partner. Board
member Woodard asked if the rental rates will be raised. Mr. Brotamonte responded this is a Class C
community, and rates will reflect the community.
Board member Martin asked if criminal background checks are run on new tenants. Mr. Brotamonte
responded yes.
Board member Woodard asked if this is the first apartment complex owned. Mr. Brotamonte responded
yes. Board member Woodard asked Economic Development Coordinator Scott Livingston whether, with
the development agreement, renovations can be first done to the interior of the apartments. Mr.
Livingston responded not according to the enhancement grant program.
Board member Clausen commented affordable housing is needed in the City of La Porte and wishes
that the Board could be guaranteed renovations are being done to the interior.
Board member Ojeda commented she has concerns if the definition means to an expanding business
and also commented asphalt repairs will go a long way for beautifying the neighborhood in the area of
the proposed project.
Board member Martin moved to table an enhancement grant amount not to exceed $42,057.86 to
Brotamonte Asset 1, LLC. at the completion of the project until Staff brings back more information.
MOTION PASSED.
Vice-President Cooksley seconded.
Ayes: President Warren, Board members Vice-President Cooksley,
Board members Woodard, Clausen, Engelken, Ojeda and Martin
Nays: None
Absent: None
4. SET DATE FOR NEXT MEETING
Board members set the next meeting date for Monday, January 11, 2016, at 5:00 p.m.
5. BOARD MEMBER COMMENTS
regarding matters appearing on agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual information
or existing policies.
Page 2 of 3
December 14, 2015, La Porte Development Corporation Board Minutes
Board member Woodard requested an agenda item to discuss changing the Bylaws for the La Porte
Development Corporation for the next meeting.
Board member Ojeda thanked Mr. Brotamonte for investing in the City of La Porte and asked for an
update on the restrooms at Five Points. Economic Development Coordinator Scott Livingston advised
he is working with Assistant City Manager Traci Leach and City Manager Corby Alexander and will
have information after the first of the year.
President Warren thanked everyone for attending the meeting and commented he wants everyone to
understand the duties and decisions made by the La Porte Development Corporation.
6. ADJOURN
There being no further business, Vice-President Cooksley moved to adjourn the meeting at 6:44 p.m.
MOTION PASSED
Board member Woodard seconded. .
Respectfully submitted,
____________________________________
Patrice Fogarty, City Secretary
th
Passed and approved on this 11 day of January, 2016.
____________________________________
President Richard Warren
Page 3 of 3
December 14, 2015, La Porte Development Corporation Board Minutes
This is an Unaudited Statement.
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 4B Sales Tax)
Previous
ReportFY 2015-16FY 2014-15
Unaudited Beginning Fund Balance 9/30$3,458,203$3,458,203$3,213,390
Plus Year to Date Revenues:
1/2 Cent Sales Tax---
Transfers-In---
Interest Income-391363
Total Revenues-391363
Equals Total Resources3,458,2033,458,5943,213,753
Less Year to Date Expenditures:
Payroll-6,7307,060
Supplies-1151
Services & Charges (Memberships, Training, Advertising, Legal, Utilities)-1,0336,903
Capital Outlay---
*
Debt Service Transfer-56,72290,318
Total Expenditures-64,600104,282
Estimated Year to Date Fund Balance as of 9/30/2016$3,458,203$3,393,994$3,109,471
Commitments
Pipeline Grill$300,000
Richard Industrial Group10,000
ACT Independent Turbo Service, Inc.426,000
Debt Service Reserve680,668
$1,416,668
Adjusted Year to Date Fund Balance$1,977,326
Projection Through Year End
Adjusted Year to Date Fund Balance$1,977,326
Plus: Estimated Sales Tax2,434,375
Less: Estimated Operational Costs(350,928)
Less: Debt Service Transfers(623,946)
Projected Year End Fund Balance$3,436,827
Sales tax revenues for Fiscal Year 2016 are estimated to be $2,434,375.
Previously Funded Projects (Funding in Fund 015 - General CIP Fund)
BudgetExpendituresBalance
Façade Grants407,669131,697275,972
Total407,669131,697275,972
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
January 11, 2016January 11, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
ED General FundsED General Funds
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
CIP CIP
Economic Development/TourismEconomic Development/Tourism
Department:
Account Number:Account Number:
#015.9892.993.1100#015.9892.993.1100
Report:Resolution:Resolution:Ordinance:Ordinance:
$275,972.37$275,972.37
Amount Budgeted:Amount Budgeted:
Exhibits:
$42,057.86$42,057.86
Amount Requested:Amount Requested:
1. Development Agreement for Sylvan Beach Development Agreement for Sylvan Beach
Budgeted Item:Budgeted Item:YESYESNONO
Apartments, Option BApartments, Option B
2. Project Presentation Project Presentation--REVISEDREVISED
3. Bidder Sheet Summary Bidder Sheet Summary
4. Evaluation Summary Evaluation Summary
5. Enhancement Grant Application Enhancement Grant Application
6. La Porte Enhancement Grant Guidelines, La Porte Enhancement Grant Guidelines,
Revised 11Revised 11--1111--1515
7. Development Agreement for Sylvan Beach Development Agreement for Sylvan Beach
ApartmentsApartments
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Requested Follow up From the December 14, 2015 Meeting: Requested Follow up From the December 14, 2015 Meeting:
The EDC Board requested additional information regarding the proposed improvements to the interior of the The EDC Board requested additional information regarding the proposed improvements
to the interior of the
apartment units and approximate cost of such improvements. The interior improvements are estimated to cost apartment units and approximate cost of such improvements. The interior improvements
are estimated to cost
$85,000 and will consist of: $85,000 and will consist of:
Kitchen:
New flooring New flooring -- laminate planks laminate planks
New 2 tone paint New 2 tone paint -- cabinets, trim and sheetrock cabinets, trim and sheetrock
Resurfaced countersResurfaced counters
New fixturesNew fixtures
Bedrooms:
New flooring New flooring -- laminate planks or carpet laminate planks or carpet
New 2 tone paint New 2 tone paint -- doors, trim, and sheetrock doors, trim, and sheetrock
New ceiling fanNew ceiling fan
Bathrooms:
New flooring New flooring -- laminate planks laminate planks
New 2 tone paint New 2 tone paint -- trim and sheetrock trim and sheetrock
New vanity and fixturesNew vanity and fixtures
Resurfaced tubResurfaced tub
Living Areas (Halls, Living room):Living Areas (Halls, Living room):
New flooring New flooring -- laminate planks or carpet laminate planks or carpet
New 2 tone paint New 2 tone paint -- doors, trim and sheetrock doors, trim and sheetrock
New blindsNew blinds
New lightsNew lights
New door knobsNew door knobs
Project Review: Project Review:
Brotamante Asset 1, LLC, the new Owner of the Sylvan Beach Apartments (315 N. Second Street), recently Brotamante Asset 1, LLC, the new Owner of the Sylvan Beach Apartments (315 N. Second
Street), recently
submitted a completed application for the La Porte Enhancement Grant Program. Mr. Edwin Brotamontesubmitted a completed application for the La Porte Enhancement Grant Program. Mr.
Edwin Brotamontes s
application represents the first time that the ED Board has received an enhancement grant application from the application represents the first time that the ED Board has received an
enhancement grant application from the
owner of an apartment complex. owner of an apartment complex.
The purpose of the La Porte Enhancement Grant Program is to encourage business owners throughout the City of The purpose of the La Porte Enhancement Grant Program is to encourage business
owners throughout the City of
La Porte to enhance and/or beautify their businesses. Eligible projects of the program include façade La Porte to enhance and/or beautify their businesses. Eligible projects of the
program include façade
enhancement/rehabilitation, beautification projects, new awnings, canopies, porches, signage, and parking lot enhancement/rehabilitation, beautification projects, new awnings, canopies,
porches, signage, and parking lot
improvements. To date, the La Porte Development Corporation has awarded enhancement grant reimbursements improvements. To date, the La Porte Development Corporation has awarded enhancement
grant reimbursements
to a wide variety of business owners: to a wide variety of business owners:
Funeral Home (Stepping Stone)Funeral Home (Stepping Stone)
Professional Office (Eagle Energy Resources, Kathleen Lemon, Entrust Professional Insurance Co.)Professional Office (Eagle Energy Resources, Kathleen Lemon, Entrust Professional Insurance
Co.)
Construction Company (Follis Construction, Paskey, Inc.)Construction Company (Follis Construction, Paskey, Inc.)
Retail (Tool Box, A Statement in Glass, Oak Center)Retail (Tool Box, A Statement in Glass, Oak Center)
Restaurant (Mainly Drinks, LafitteRestaurant (Mainly Drinks, Lafittes Cajun Station)s Cajun Station)
Sewing Retreat (And Sew it Began) Sewing Retreat (And Sew it Began)
The Enhancement Grant Review Committee recently received and reviewed an application to the La Porte The Enhancement Grant Review Committee recently received and reviewed an application
to the La Porte
Enhancement Grant program from the Sylvan Beach Apartments. The new owner, Edwin Brotamonte, collected Enhancement Grant program from the Sylvan Beach Apartments. The new owner, Edwin
Brotamonte, collected
three bids from contractors to complete each of the following projects: (1) Paint & Wood Repair, (2) Asphalt three bids from contractors to complete each of the following projects: (1)
Paint & Wood Repair, (2) Asphalt
Repair, (3) Landscaping, and (4) Signage. Repair, (3) Landscaping, and (4) Signage.
The lowest bids for each of the project were offered as follows: The lowest bids for each of the project were offered as follows:
Paint & Wood Repair Paint & Wood Repair ---- $35,785.00 $35,785.00
Parking Lot Repair Parking Lot Repair ---- $35,000.00 $35,000.00
Landscaping Landscaping ---- $10,000.00 $10,000.00
Signage Signage ---- $3,330.72 $3,330.72
The sum total of these three, lowest bids is $84,115.72, and 50% of this sum is $42,057.86. Please note the The sum total of these three, lowest bids is $84,115.72, and 50% of this
sum is $42,057.86. Please note the Bid
Sheet SummarySheet Summaryfor details. According to the terms and conditions of the La Porte Enhancement Grant Program, for details. According to the terms and conditions of the
La Porte Enhancement Grant Program,
this project may receive up to $42,057.86 in reimbursethis project may receive up to $42,057.86 in reimburse--ment for the eligible projects upon completion of the work ment for the
eligible projects upon completion of the work
and proof of expenses paid. and proof of expenses paid. Edwin Brotamonte is prepared to give a brief presentation regarding this project and Edwin Brotamonte is prepared to give a
brief presentation regarding this project and
address any questions the Board might have about this proposed project. address any questions the Board might have about this proposed project.
Under the current ByUnder the current By-- Laws, this proposed project would also need to go before the City Council for approval, Laws, this proposed project would also need to go
before the City Council for approval,
since the amount of the Enhancement Grant is greater than $25,000. Under advice from Assistant City Attorney since the amount of the Enhancement Grant is greater than $25,000. Under
advice from Assistant City Attorney
Clark Askins, a new development agreement, a form of which is intended to be used with each future project Clark Askins, a new development agreement, a form of which is intended to be
used with each future project
under the La Porte Enhancement Grant Program, was created and executed as part of this application (exhibit under the La Porte Enhancement Grant Program, was created and executed as
part of this application (exhibit
attached). Considering the Boardattached). Considering the Boards interest in possibly including the interior work and expenditures as a necessary s interest in possibly including
the interior work and expenditures as a necessary
condition for receiving the enhancement grant, staff has also provided a second development agreement (i.e. condition for receiving the enhancement grant, staff has also provided a second
development agreement (i.e.
Option B) that requires completion of the interior work for receipt of the enhancement grant. Option B) that requires completion of the interior work for receipt of the enhancement grant.
Should the Board choose to not approve this project, please consider revising the guidelines of the La Porte Should the Board choose to not approve this project, please consider revising
the guidelines of the La Porte
Enhancement Grant Program to exclude Enhancement Grant Program to exclude apartment complexesapartment complexes, , and any other types of businesses, which the and any other types
of businesses, which the
Board may wish to exclude from participation in the program. Board may wish to exclude from participation in the program.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Consider approval or other action authorizing an enhancement grant in an amount not to exceed $42,057.86 Consider approval or other action authorizing an enhancement grant in an amount
not to exceed $42,057.86
payable to Brotamonte Asset 1, LLC, and associated development agreement, for infrastructure improvements to payable to Brotamonte Asset 1, LLC, and associated development agreement,
for infrastructure improvements to
apartment building complex located at 315 N. 2nd Street, with payment to be remitted at the completion of apartment building complex located at 315 N. 2nd Street, with payment to be
remitted at the completion of
the project - S. Livingston. S. Livingston.
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
ECONOMICDEVELOPMENTINCENTIVEAGREEMENTBETWEENTHELAPORTE
DEVELOPMENTCOPRPORATION,AND_BROTAMONTEASSET1,LLC_,ATEXAS
_PARTNERSHIP_,FORUSEOFTYPEBDEVELOPMENTCORPORATIONSALES
TAXFUNDSINCONNECTIONWITHTHELAPORTEDEVELOPMENT
CORPORATIONENHANCEMENTGRANTPROGRAM
THISAGREEMENTmadebyandenteredintothis_11th_dayof_January,2016
betweentheLaPorteDevelopmentCorporation,aTypeBnon-profitcorporation
operatingunderauthorityofTexasLocalGovernmentCodeChapters501and505,
hereinafter“LPDC”,and_BROTAMONTEASSET1,LLC,hereinafterreferredtoasthe
“Recipient”.
WITNESSETH:
WHEREAS,thevotersoftheCityofLaPorteauthorizedthelevyingofadditional
salestaxwithintheCitytopromoteeconomicdevelopmentandtheLPDCisauthorized
tousesuchtaxrevenuesforcertainqualifyingprojectsandothereconomicdevelopment
relatedpurposes;and
WHEREAS,theLaPorteDevelopmentCorporationhasestablishedtheLaPorte
EnhancementGrantProgram,thepurposeofwhichistoofferfinancialincentivesinthe
formofmatchinggrantstoaidbusinessestablishmentslocatedintheCityofLaPorte,
Texas;and
WHEREASqualifyingapplicantsformatchinggrantsundertheLaPorte
EnhancementGrantProgramareeligibletousegrantfundsforbuildingsite
improvementsincludingfaçaderehabilitation/enhancement,newawnings,canopies,
porches,andsignage,beautificationprojects,andparkinglotimprovementsasoutlined
intheguidelinesoftheLaPorteEnhancementGrantProgram;and
WHEREAS,uponapprovalasaprojectoftheLaPorteDevelopmentCorporation,
theLaPorteDevelopmentCorporationwillprovidetothequalifyingapplicantasubsidy
ofone-half(1/2)ofthecostofbuildingsiteenhancements,uptoamaximummatch
amountof$49,999.99;and
WHEREAS,theRecipientownsandoperatesabusinessknownastheGateway
nd
GroveApartments,locatedat315N.2Street,LaPorte,Texas,(the“BusinessSite”
herein)forwhichRecipientwishesmakecertainimprovements,hereinafterdescribed,
underanEnhancementGrantProgramapplication;and
WHEREAS,theRecipientwishestorenovatetheBusinessSitebycompletingthe
followingprojects:1)Paint&WoodRepair;2)ParkingLotRepair,3)Landscaping,
4)Signage,and5)InteriorUpgradingandRepair,whichwouldresultintheexpenditure
164,115.72
byRecipientofanestimated$incapitalimprovementsandemploynoless
thanTWO(2)fulltimeandTWO(2)part-timeemployees,forreimbursementbytheLa
$42,057.86
PorteDevelopmentCorporation,uptoamaximumof;and
1
WHEREAS,theprovisionoffinancialincentivestotheRecipientinconnectionwith
aLaPorteEnhancementGrantProgramapplicationwouldqualifyasaprojectofthe
LPDCforinfrastructure,siteimprovementsandotherrelatedimprovements,as
authorizedbyTexasLocalGovernmentCodeChapters501and505,anditisthedesire
ofLPDCtoassistinthefundingofsame,findingthatsuchexpenditureswillpromoteor
developneworexpandedbusinessenterprises.
WHEREAS,Texaslawandtheby-lawsoftheLPDCrequirethatcertain
expendituresandprojectsbytheLPDCbeapprovedbythegoverningbodyoftheCity;
andwhereastheLPDCBoardhasdulyapprovedsuchprojectandtheexpendituresfor
anyprojectforacontributionoftheLPDCBoardgreaterthan$25,000.00mustalsobe
authorizedbytheLaPorteCityCouncil;and
NOWTHEREFORE,inconsiderationofthecovenantsandconditionsstated
herein,andinconsiderationofthemutualbenefitsthatwillaccruetoeachoftheparties
hereof,aswellastothecitizensoftheCityofLaPorte,Texas,thepartieshaveagreed
anddoherebyagreeasfollows:
ARTICLEI
InconsiderationoftheRecipientmakingeligibleandapprovedimprovementsto
nd
theBusinessSiteat315N.2Street;LaPorte,TX77571,inconnectionwithan
applicationundertheLaPorteEnhancementGrantProgram,whichprogramwas
consideredinthatcertainpublichearingauthorizingaproposedprojectforthe
expenditureofLPDCfundsforthepromotionordevelopmentofneworexpanded
businessenterprises,heldbeforetheLPDConOctober28,2015,LPDCagreesto
providetheRecipientwithamatchinggrantpaymentinanamountnottoexceed
$42,057.86
,asamatchforRecipient’scapitalexpenditure,whichpaymentshallbe
distributedupontheattainmentofthefollowingconditions:
1)ReceiptbytheLPDCofcopiesallapplicableinvoicesandreceiptsofpayment
forthesameinvoicesforallprojects,whichwerepreviouslyapprovedbythe
LPDCBoard,andhavebeencompleted,
2)ReceiptbytheLPDCofpicturesshowingproofofcompletionofeachofthe
projectspreviouslyapprovedbytheLPDCBoard,
3)ReceiptbyLPDCofcopiesofallcertificatesandpermitsrequiredbytheCity
ofLaPorte,Texas,ifany,totheRecipientforcompletionoftherenovated
BusinessSite;
84,115.72
4)Proofofminimumcapitalinvestmentintheamountof$applied
towardseligibleandapprovedimprovementstotheexterioroftheBusiness
Siteandrelatedinfrastructureandsitework.Therenovationtotheexteriorof
theBusinessSiteandrelatedinfrastructureforwhichtherequiredcapital
investmentismade,must,ataminimum,includethefollowingscopeofwork:
2
a)ExteriorPaint&WoodRepairfor$35,785.00
b)ParkingLotRepairfor$35,000.00
c)Landscapingfor$10,000.00
d)Signagefor$3,330.72
$80,000.00
5)Proofofminimumcapitalinvestmentintheminimumamountof,
forthecompletionofworktorepairandupgradetheinteriorandrelated
internalinfrastructureoftheBusinessSite,thescopeofworkforwhichis
ExhibitA
outlinedon,attachedheretoandincorporatedbyreferenceforall
purposes;
6)SubmissiontoLPDCofanemploymentrosterevidencingthattheRecipient
employsTWO(2)fulltimeandTWO(2)part-timeindividualsasemployeesat
theBusinessSite.Proofofemployment,forpurposesofthisagreement,shall
requiretheRecipienttoproduceeithera)copiesoftheRecipient’s941Report
totheInternalRevenueServiceandC3ReporttotheTexasWorkforce
Commissionforeachemployee(butwiththesocialsecuritynumberofeach
employeeredacted),orb)asignedandnotarizedstatementexecutedbythe
owner,oranotherdulyauthorizedrepresentative,ofthecompanyaffirming
thatTWO(2)fulltimeandTWO(2)part-timeemployeesareemployedbythe
RecipientforpositionspermanentlylocatedatBusinessSite.
7)PresentationtotheBoardoftheLPDC,duringaregularlyscheduledBoard
meeting,regardingallelementsofthecompletedenhancementgrantprojects.
$42,057.86
8)InnocasewillthesumofbemadebytheLPDCifalltherequired
itemslistedinArticleIarenotdeliveredtoandreceivedbyLPDCwithinone
(1)yearfromthedateonwhichthisagreementisapprovedbytheLaPorte
CityCouncil.InthecasethatalltherequireditemslistedinArticleIforthe
BusinessSitearepresentedtoLPDConorbeforesaiddeadline,theLPDC
shallconveneameetingoftheLPDCBoardofDirectorsforadatenolater
thanforty-five(45)days.Uponverificationofthecompletionofallprojects
previouslyapprovedbytheLPDCBoardtotheBusinessSite,asreflectedby
formalvoteoftheLPDCBoardofDirectorsthattheRecipienthassatisfiedthe
$42,057.86
requirementsofthisparagraph,LPDCwillthenremitthesumof
totheRecipientwithinaperiodnottoexceedthirty(30)days.
ARTICLEII
Allfundsreceivedashereinprovidedshallbesolelyforthepurposeofcontributing
towardstheRecipient’scostsinmakingeligibleandapprovedimprovementstothe
BusinessSite.
TheRecipientfurtheracknowledgesthattheincentivegrantprovidedforhereinistiedto
aprojectoftheLPDCforthepromotionordevelopmentofneworexpandedbusiness
enterprises,asauthorizedbyTexasLocalGovernmentCodechapters501and505.
3
ARTICLEIII
Disbursementand/orretentionofthecashincentiveidentifiedinArticleIofthis
Agreementshallbemadeasfollows:
A.DisbursementshallbemadetoRecipient,subjecttothesatisfactionofthe
conditionsprecedentorconditionssubsequentcontainedwithinArticleIofthis
Agreement.
$42,057.86
B.LPDC’sobligationtoRecipientshallnotexceed,norshallLPDCbe
obligatedtoreimburseRecipientforrequestsdeliveredtoLPDCafterthe
terminationofthisAgreement.
ARTICLEIV
TheRecipientunderstandsthatthefundspaidtotheRecipientbytheLPDCare
derivedfromtaxrevenuescollectedunderTexasLocalGovernmentCode505.252,and
thatLPDChasestimatedthetaxrevenuestobecollectedduringthetermofthis
Agreement.TheRecipientfurtherunderstands,acknowledges,andagreesthatifthetax
revenueactuallycollectedislessthan90%oftheestimatedtaxrevenuestobecollected
inanyfiscalyearduringthetermofthisAgreement,LPDCwillbeundernoobligationto
providefundingtotheRecipientforanypaymentorpaymentsduringorafterthefiscal
yearforwhichthereisarevenueshortfall.UponexecutionoftheAgreement,fundswill
beplacedinaCityofLaPortedesignatedcommitmentaccountforpurposesofthis
Agreement.
ARTICLEV
IntheeventofanydefaultbytheRecipienthereunder,including,butnotlimitedto,
useofthefundsprovidedhereinforpurposesotherthanthosestatedinArticleIofthis
Agreement,LPDCmayceaseallfuturepaymentshereunderandterminatethis
Agreement.Inaddition,LPDCshallhavetherighttoreclaimandrecapture,andthe
Recipientshallrefund,anyfundsthatarenotspentinaccordancewiththetermsofthis
Agreement,including1)LPDCfundsspentbytheRecipientincontraventionofthis
Agreementand2)anyLPDCfundspreviouslypaidtotheRecipientbutnotyetspentby
Recipient.Ineachsuchcase,thepreviouslypaidcashpaymentorpaymentsshallbe
remittedtotheLPDCwithinsixty(60)ofreceiptofwrittendemandforsame.
Anybreachofthiscovenantshallbegroundsforimmediateterminationofthe
distributionoffunds.
ARTICLEVI
ThetermofthisAgreementwillexpireone(1)yearfromthedateonwhichtheCity
Councilapprovedtheproject.
4
ARTICLEVII
AllfundsprovidedbytheLPDCpursuanttothisAgreementmaybeusedonlyfor
thepurposesauthorizedbythisAgreement.NotwithstandingArticleI,above,Cityshall
beundernoobligationtomakeanyfunddisbursementsifthereportsrequiredunderthis
ArticlehavenotbeendeliveredtotheLPDC.
ARTICLEVIII
ThisAgreementdoesnotcreateanyjointventure,partnership,oragency
relationshipbetweentheLPDCandtheRecipient.TheRecipientshallhaveexclusive
controlof,andtheexclusiverighttocontrolthedetailsoftheworktobeperformedbythe
Recipienthereunderandallpersonnelperformingsame,andshallbesolelyresponsible
fortheactsandomissionsofitsofficers,members,agents,servants,employees,
subcontractors,programparticipants,volunteers,licensees,andinvitees.Innoevent
shallanypersonparticipatinginorperforminganyoftheRecipient’sdutiesor
responsibilitieshereunderbeconsideredanofficer,agent,servant,oremployeeofthe
LPDC.
ARTICLEIX
TheRecipientagreestoassumeanddoesherebyassumeallresponsibilityand
liabilityfordamagessustainedbypersonsorproperty,whetherrealorasserted,byor
fromthecarryingonofworkbytheRecipientorintheperformanceofservicesperformed
andtobeperformedbytheRecipienthereunder.TheRecipientcovenantsandagrees
to,anddoesherebyindemnify,defend,andholdharmlessLPDCandalltheirrespective
officers,agents,andemployeesfromallsuits,actions,claims,andexpensesofany
character,includingattorney’sfees,broughtfororincurredonaccountofanyinjuriesor
damages,whetherrealorasserted,sustainedbyanypersonorpropertybyorin
consequenceofanyintentionalornegligentact,omission,orconductoftheRecipient,its
agents,servantsoremployees.
ARTICLEX
ThisAgreementmaybeamendedbythemutualagreementofthePartieshereto
inwritingtobeattachedtoandincorporatedintothisAgreement.
ARTICLEXI
TheRecipientshalladheretoalllocal,state,andfederallawsandregulationsthat
mayaffectitsactionsmadepursuanttothisAgreement,andshallmaintainineffectduring
thetermofthisAgreementanyandallfederal,state,andlocallicensesandpermitswhich
mayberequiredofRecipientsgenerally.
5
ARTICLEXII
TheRecipientmaynotassignthisAgreement,oranyofthebenefitsprovided
hereinincludingbutnotlimitedtoincentivepaymentsidentifiedinArticleI,withoutthe
writtenconsentofLPDC.
ARTICLEXIII
ThewaiverbyLPDCofanybreachofanyterm,condition,orcovenantherein
containedshallnotbedeemedawaiverofanysubsequentbreachofthesame,orany
otherterm,condition,orcovenant.
ARTICLEXIV
TheobligationsofthePartiestothisAgreementareperformableinHarrisCounty,
Texasandiflegalactionisnecessarytoenforcesame,venueshalllieinHarrisCounty,
Texas.
ARTICLEXV
ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelaws
oftheStateofTexas.
ARTICLEXVI
ThisAgreementmaybeexecutedintriplicate,eachofwhichshallbedeemedan
originalandconstituteoneandthesameinstrument.
ARTICLEXVII
NeitherLPDCnortheRecipientshallberequiredtoperformanyterm,condition,
orcovenantinthisAgreementsolongassuchperformanceisdelayedorpreventedby
forcemajeure,whichshallmeanActsofGod,civilriots,floods,andanyothercausenot
reasonablywithinthecontrolofLPDCortheRecipientexceptashereinprovided,and
whichbytheexerciseofduediligenceLPDCortheRecipientisunable,whollyorinpart,
topreventorovercome.
ARTICLEXVIII
Insubmittingthisapplication,theapplicantwhosesignatureappearsbelowaffirms
itsintentandcommitmenttocomplyinfullwithSection2264.052oftheGovernment
Codeandcertifiesthatitdoesnotandwillnotknowinglyemployanundocumentedworker
6
duringanytimeperiodassociatedwiththepublicsubsidyforwhichtheapplicationis
beingsubmitted.Theapplicantfurthercertifiesitsunderstandingandagreementthatifit
isconvictedofaviolationof8U.S.C.Section1324a(f),providingforciviland/orcriminal
penaltiesforengaginginapatternorpracticeofknowinglyhiringorcontinuingtoemploy
unauthorizedaliens,itshallrepaytheamountofthepublicsubsidywithinterest,atthe
rateandaccordingtothetermsoftheagreementsignedunderSection2264.053ofthe
GovernmentCode,notlaterthanthe120thdayafterthedatethecitynotifiesthebusiness
oftheviolation.
ARTICLEXIX
TheAgreementembodiesthecompleteagreementofthepartieshereto,
supersedingalloralorwrittenperviousandcontemporaryagreementsbetweenthe
Parties,whichrelatetomattersinthisAgreement.
SIGNEDANDAGREEDtobyLPDCandtheRecipientonthedatesindicated
below.
LAPORTEDEVELOPMENTCORPORATION
__________________________
RichardWarren,President
___________________
Date
ATTEST
___________________________
SecretaryoftheCorporation
7
BrotamonteAsset1,LLC
__
By:
_________________________________
_________________________
Date
ATTEST
________________________________
8
ExhibitA
9
Apartments
Grove
Gateway
11/19/2015 4.754.754.254.754.75 4.65
, based on reciepts and Following is a summary of the evaluations of the La Porte Enhancement Grant Evaluating Commmittee (EGEC). If you have any questions
Average
Score
# of Evaluators
Initial Review Date:Total Average Score (out of 25)
44444
.
(281) 470-5016
$42,057.86
Total Score
1919171919
Grant to be awarded in an amount not to exceed
about the items listed below, please call the Economic Development Office at
315 N. 2nd Street; La Porte, Texas 77571
completion of work as indicated.
Sylvan Beach Apartments
Edwin Brotamonte
(713) 253-1736
Project Demonstrates a significant improvement over the existing situation.
Project will enhance Main Street's appeal to new businesses and visitors.
11/19/2015
Economic Development Coordinator
Resident, Employee of La Car Porte
Project will add to the beautification of the City of La Porte.
Owner, Bay Port Animal Clinic
Criteria
Project will complement the surrounding buildings.
Director of Planning
Project adds value to the City of La Porte.
Recommendation:
Business Address:
Application Date:
Business Name:
Contact Name:
Phone:Evaluating Committee Members:
Title
Scott D. Livingston
Monica Rogers
Cris Santiago
Tim Tietjens
Name
604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016
SYLVAN BEACH APARTMENTS
315N.2NDSTREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Planned Improvements
Paint all wood components and metal rails of exterior structure
I.
Repair or replace all water damaged wood
II.
Power wash all brick exterior walls
III.
Landscaping
IV.
Asphalt parking lot repairs
V.
New Signage
VI.
Page 1 of20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Paint all wood components and metal rails of exterior structure
I.
Wood panels b/w Ðrst and second Ñoor
A.
Eaves
B.
Facia
C.
SofÐt
D.
Vertical Siding
E.
Doors
F.
Door Trim
G.
All steel rails
H.
Page 2 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Repair or replace all water damaged wood
II.
Wood panels b/w Ðrst and second Ñoor
A.
Eaves
B.
Facia
C.
SofÐt
D.
Vertical Siding
E.
Doors
F.
Door Trim
G.
Page 3 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
III. Power wash all brick exterior walls
Page 4 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Landscaping
III.
Create 2 landscape islands around 2 new property signs
A.
Crepe Myrtles in key areas between units in front of brick walls
B.
Evergreen hedges along property wall below Ðrst Ñoor windows
C.
Page 5 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Asphalt parking lot repairs
IV.
Repair asphalt
A.
Reseal repaired asphalt
B.
Page 6 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
New Signage
V.
Property sign at 2nd and Adams
A.
Property sign at 3rd and Adams
B.
Lease ofÐce signage on 2nd and 3rd street
C.
Building IdentiÐcation signage
D.
Remove old signage
E.
Page 7 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 8 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 9 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 10 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 11 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 12 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 13 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 14 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 15 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 16 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Signs By Tomorrow
$575.662$1,151.32+ Tax
MDO Panels
$45.004$180.00
+ Tax
Posts
$25.004$100.00+ Tax
Post Caps
$89.9512$1,079.40
+ Tax
Building Signs
$225.001$225.00
Remove sign
$595.001$595.00
Install signs
$3,330.72
Page 17 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 19 of 20
SYLVAN BEACH APARTMENTS
315 N. 2ND STREET
LA PORTE, TX 77571
La Porte Enhancement Grant Program Application
Page 20 of 20
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 City of La Porte.
Eligible improvements of the La Porte Enhancement Grant Program include façade enhance-
ment/rehabilitation, beautification projects, new awnings, canopies, porches, signage, and
parking lot improvements. Each program application will be evaluated on a case-by-case basis,
and ALL projects for a matching grant greater than $25,000 must also be approved by the La
Porte City Council.
Interested business owners are welcome to complete the enclosed application form. Please
deliver applications to:
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
LivingstonS@laportetx.gov
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
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 1, Revised 11/11/15
BUSINESS. BY THE BAY.
ELIGIBLE PROJECTS
Business owners may be eligible for a reimbursement grant of funds which are used to
enhance and/or beautify their businesses. The following types of projects are eligible for
reimbursement:
Façade Rehabilitation/Enhancement
Eligible projects include work 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 Lot Improvements
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
Grant funds are available only for exterior work on commercial property and building
1.
facades that are visible from public streets.
In general, grants offered to businesses are intended to support projects to renovate or
2.
convert existing structures to their original historic condition.
Grants will be processed and considered for award on a first-come, first-served basis
3.
until funds are depleted or until the program ends, whichever comes first.
Grants will not be awarded for work that has already been started or completed, or for
4.
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.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 2, Revised 11/11/15
BUSINESS. BY THE BAY.
Grants will not be awarded to any Applicant that owes any delinquent indebtedness*
5.
to the City of La Porte or the La Porte Development Corporation (LPDC).
Ϋ ǒĻƓƷ LƓķĻĬƷĻķƓĻƭƭ ƭŷğƌƌ ƒĻğƓ ğƓǤ źƓķĻĬƷĻķƓĻƭƭ ķǒĻ ğƓķ ƚǞźƓŭ Ʒƚ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƩ ƷŷĻ
\[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ źƓĭƌǒķźƓŭ ĬǒƷ ƓƚƷ ƌźƒźƷĻķ ƷƚͲ ğķ ǝğƌƚƩĻƒ ƷğǣĻƭ ƚƓ ƩĻğƌ ğƓķ ƦĻƩƭƚƓğƌ
ƦƩƚƦĻƩƷǤͲ Ǟŷźĭŷ ƦƩƚƦĻƩƷǤ źƭ źƓ ŅğĭƷ ƚǞƓĻķ ĬǤ ğƓķ źƭ ƌĻŭğƌƌǤ ƭǒĬƆĻĭƷ Ʒƚ ƷğǣğƷźƚƓͲ ǞŷĻƷŷĻƩ ƚƩ ƓƚƷ ƷŷĻ ƭğƒĻ
ƒğǤ ŷğǝĻ ĬĻĻƓ ƦƩƚƦĻƩƌǤ ƩĻƓķĻƩĻķ Ʒƚ ƷŷĻ Ʒğǣ ğƭƭĻƭƭƚƩΏĭƚƌƌĻĭƷƚƩ ĬǤ ğƓǤ ƦĻƩƭƚƓ͵ {ǒĭŷ ƷĻƩƒ ƭŷğƌƌ ğƌƭƚ źƓĭƌǒķĻͲ
ĬǒƷ ƓƚƷ ĬĻ ƌźƒźƷĻķ ƷƚͲ ĭŷğƩŭĻƭ ŅƚƩ ƦĻƓğƌƷźĻƭͲ źƓƷĻƩĻƭƷ ğƓķ ĭƚƭƷƭ ƚƓ ğƓǤ ƭǒĭŷ ğķ ǝğƌƚƩĻƒ ƷğǣĻƭͳ ĭŷğƩŭĻƭ ŅƚƩ
ǞğƷĻƩͲ ƭĻǞĻƩͲ ŭğƩĬğŭĻ ğƓķ ƚƷŷĻƩ ƭĻƩǝźĭĻƭ ƩĻƓķĻƩĻķ ƚƩ ŭƚƚķƭ ŅǒƩƓźƭŷĻķ ĬǤ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻ ƚƩ ƷŷĻ
\[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ğƓǤ ƦĻƩƭƚƓͳ ğƓķ ğƓǤ ƚƷŷĻƩ ƒğƓƓĻƩ ƚŅ źƓķĻĬƷĻķƓĻƭƭ Ʒƚ ƷŷĻ /źƷǤ ƚŅ
\[ğ tƚƩƷĻ ƚƩ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ƓƚǞ ĻǣźƭƷźƓŭ ƚƩ Ǟŷźĭŷ ƒğǤ ŷĻƩĻğŅƷĻƩ ĬĻ ĭƩĻğƷĻķ ĬǤ ğƓǤ
ƦĻƩƭƚƓ͵ bƚ ƭǒĭŷ źƓķĻĬƷĻķƓĻƭƭ ƭŷğƌƌ ĬĻ ĭƚƓƭźķĻƩĻķ ǒ ǒƓƷźƌ ƷŷĻ ƷźƒĻ ŅƚƩ źƷƭ ĭǒƩƩĻƓƷ ƦğǤƒĻƓƷ
ǒƓķĻƩ ƷŷĻ ǝğƩźƚǒƭ ƚƩķźƓğƓĭĻƭ ƚŅ ƷŷĻ /źƷǤ ƚŅ \[ğ tƚƩƷĻͲ ƚƩ ƭƷğƷĻ ƭƷğƷǒƷĻƭͲ ƚƩ ĭƚƓƷƩğĭƷǒğƌ ğŭƩĻĻƒĻƓƷͲ ƭŷğƌƌ ŷğǝĻ
ĻǣƦźƩĻķͲ ǞźƷŷƚǒƷ ƦğǤƒĻƓƷ ŷğǝźƓŭ ĬĻĻƓ ƒğķĻ͵
Each grant will be awarded on a reimbursement basis once completed work has been
6.
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.
Each enhancement grant application will be subject to review by the EGEC, and
7.
approval from the Board of 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 the City of La Porte ,
The project will enhance 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.
Grant applications and awards may be made in any of the reimbursable activities
8.
described above and may be combined for any single property or project.
An applicant is defined as an owner, tenant, or combination thereof, who occupies
9.
space in an eligible property. 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 $50,000 per property in a three (3) year period.
Preference will be given to all local bids for work that qualify under the current form of
10.
the
by the Board.
Multiple bids are not required for each eligible project that is less than a total $2,000, of
11.
which 50% or $1,000 would be a reimbursable expenses
Purchasing Policy.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 3, Revised 11/11/15
BUSINESS. BY THE BAY.
APPLICATION PROCESS
Determine eligibility: Discuss project plans with the Economic Development
1.
Coordinator, and the Coordinator will set up a pre-development meeting with the
EGEC.
Complete the application and sign the agreement form. Each grant application must
2.
include the following:
A scaled drawing by the project architect or design professional of all the work
a.
to be completed.
Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will
b.
enable the EGEC to envision the finished project.
Three (3) itemized work estimates on all project work from contractors or
c.
project architects. Self-contracted work will be reimbursed for actual legitimate
expenses, excluding labor.
Photographs of the buildings exterior. The Applicant shall be required to
d.
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.
Return the completed application form, with all applicable items, to:
3.
Scott D. Livingston
Economic Development Coordinator
City of La Porte
604 W. Fairmont Parkway
La Porte, TX 77571
LivingstonS@laportetx.gov
The application will undergo an approval process, which includes but is not limited
4.
to the following:
Each project must meet current building standards and codes, as well as
a.
building permit requirements.
The EGEC will only consider applications that have been properly and fully
b.
completed, and which contain all information requested in the application
and/or by the committee.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 4, Revised 11/11/15
BUSINESS. BY THE BAY.
All itemized work estimates submitted by the Applicant must be dated no
c.
earlier than ninety (90) days prior to the Application request. Bids shall be
submitted on the contracs or 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.
Applications receiving approval by the EGEC shall commence construction
d.
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.
As a condition of this grant Application, the Applicant consents, and shall
e.
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.
The EGEC and LPDC shall have sole discretion in awarding grants. They shall
f.
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.
No Applicant has a proprietary right to receive grant funds. The EGEC shall
g.
consider any application within its discretionary authority to determine what
grant amount would be in the best interest of the grant program.
The Applicant shall be required to furnish bef photographs of the
h.
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.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 5, Revised 11/11/15
BUSINESS. BY THE BAY.
The EGEC has the final discretion with regard to funding and reserves the
i.
right to recommend modifications or reject any project or elements of any
project.
Reimbursement. When the entire enhancement grant project has been completed, the
5.
Applicant shall present the Economic Development Office with the following:
Copies of all paid invoices, including copies of cancelled checks and/or credit
a.
card receipts for a single payment reimbursement of the approved funding, and
Photographs of all completed work.
b.
When the project has been reviewed and approved by the EGEC, and their
6.
recommendations have been presented and approved by the LPDC, a reimbursement
check will be issued.
LA PORTE ENHANCEMENT GRANT PROGRAM
PAGE 6, Revised 11/11/15
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 Parkway
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 (ĭŷĻĭƉ ğƌƌ ƷŷğƷ ğƦƦƌǤ):
Façade Awnings/Signage
Parking Lot Improvements
Beautification
DETAILS OF PLANNED IMPROVEMENTS (ğƷƷğĭŷ ğķķźƷźƚƓğƌ ƦğŭĻƭ źŅ ƓĻĭĻƭƭğƩǤ):
LA PORTE ENHANCEMENT GRANT APPLICATION
PAGE 1, Revised 11/11/15
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
1. $
2. $
3. $
4. $
5. $
BUDGET DETAIL
PROJECT EXPENDITURES FUNDS FUNDS APPLIED TOTAL
Façade Rehab $ $ $
Awnings/Signage $ $ $
$ $ $
Beautification
$ $ $
Parking Lot Improvements
Other (list): $ $ $
TOTAL $ $ $
Total estimated cost of proposed project: $
Amount requested (up to 50% of total cost, $2,500 to $50,000): $
tƌĻğƭĻ ğƷƷğĭŷ ĭƚƌƚƩ ƭğƒƦƌĻƭͲ ƒƚķĻƌ ƓǒƒĬĻƩƭ ΛŅƚƩ ǞźƓķƚǞƭͲ ķƚƚƩƭͲ ĻƷĭ͵ΜͲ ƦŷƚƷƚƭͲ ƭĭğƌĻķ ķƩğǞźƓŭƭͲ ğƓķ
ƚƷŷĻƩ źƌƌǒƭƷƩğƷźƚƓƭ ƚŅ ǞƚƩƉ Ʒƚ ĬĻ ĭƚƒƦƌĻƷĻķ͵ tƌĻğƭĻ źƓĭƌǒķĻ ğƭ ƒǒĭŷ ķĻƷğźƌ ğƭ ƦƚƭƭźĬƌĻ͵
ƚǒƩ ƭźŭƓğƷǒƩĻ ƚƓ Ʒŷźƭ ğƦƦƌźĭğƷźƚƓ ĭĻƩƷźŅźĻƭ ƷŷğƷ Ǥƚǒ ǒƓķĻƩƭƷğƓķ ğƓķ ğŭƩĻĻ ǞźƷŷ ƷŷĻ
ŅƚƌƌƚǞźƓŭ ƭƷğƷĻƒĻƓƷƭʹ 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 eligible
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.
APPLICANT SIGNATURE DATE
LA PORTE ENHANCEMENT GRANT APPLICATION
PAGE 2, Revised 11/11/15
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE
DEVELOPMENT COPRPORATION, AND _BROTAMONTE ASSET 1, LLC_, A
TEXAS _PARTNERSHIP_, FOR USE OF TYPE B DEVELOPMENT CORPORATION
SALES TAX FUNDS IN CONNECTION WITH THE LA PORTE DEVELOPMENT
CORPORATION ENHANCEMENT GRANT PROGRAM
th
THIS AGREEMENT made by and entered into this _14_ day of December, 2015
between the La Porte Development Corporation, a Type B non-profit corporation
operating under authority of Texas Local Government Code Chapters 501 and 505,
hereinafter LPDC, and _BROTAMONTE ASSET 1, LLC_, hereinafter referred to as the
Recipient.
WITNESSETH:
WHEREAS, the voters of the City of La Porte authorized the levying of additional
sales tax within the City to promote economic development and the LPDC is authorized
to use such tax revenues for certain qualifying projects and other economic development
related purposes; and
WHEREAS, the La Porte Development Corporation has established the La Porte
Enhancement Grant Program, the purpose of which is to offer financial incentives in the
form of matching grants to aid business establishments located in the City of La Porte,
Texas; and
WHEREAS qualifying applicants for matching grants under the La Porte
Enhancement Grant Program are eligible to use grant funds for building site
improvements including façade rehabilitation/enhancement, new awnings, canopies,
porches, and signage, beautification projects, and parking lot improvements as outlined
in the guidelines of the La Porte Enhancement Grant Program; and
WHEREAS, upon approval as a project of the La Porte Development Corporation,
the La Porte Development Corporation will provide to the qualifying applicant a subsidy
of one-half (1/2) of the cost of building site enhancements, up to a maximum match
amount of $49,999.99; and
WHEREAS, the Recipient owns and operates a business known as the Sylvan
nd
Beach Apartments, located at 315 N. 2 Street, La Porte, Texas, (the Business Site
herein) for which Recipient wishes make certain improvements, hereinafter described,
under an Enhancement Grant Program application; and
WHEREAS, the Recipient wishes to renovate the Business Site by completing
the following projects: 1) Paint & Wood Repair; 2) Parking Lot Repair, 3) Landscaping,
and 4) Signage, which would result in the expenditure by Recipient of an estimated
84,115.72
$ in capital improvements and employ no less than TWO (2) full time and
TWO (2) part-time employees, with one-half of such capital expenditure being eligible
1
for reimbursement by the La Porte Development Corporation, up to a maximum of
$49,999.99; and
WHEREAS, the provision of financial incentives to the Recipient in connection with
a La Porte Enhancement Grant Program application would qualify as a project of the
LPDC for infrastructure, site improvements and other related improvements, as
authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire
of LPDC to assist in the funding of same, finding that such expenditures will promote or
develop new or expanded business enterprises.
WHEREAS, Texas law and the by-laws of the LPDC require that certain
expenditures and projects by the LPDC be approved by the governing body of the City;
and whereas the LPDC Board has duly approved such project and the expenditures for
any project for a contribution of the LPDC Board greater than $25,000 must also be
authorized by the La Porte City Council; and
NOW THEREFORE, in consideration of the covenants and conditions stated
herein, and in consideration of the mutual benefits that will accrue to each of the parties
hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed
and do hereby agree as follows:
ARTICLE I
In consideration of the Recipient making eligible and approved improvements to
nd
the Business Site at 315 N. 2 Street; La Porte, TX 77571, in connection with an
application under the La Porte Enhancement Grant Program, which program was
considered in that certain public hearing authorizing a proposed project for the
expenditure of LPDC funds for the promotion or development of new or expanded
business enterprises, held before the LPDC on October 28, 2015, LPDC agrees to
provide the Recipient with a matching grant payment in an amount not to exceed
$42,057.86
, as a match for Recipients capital expenditure, which payment shall be
distributed upon the attainment of the following conditions:
1) Receipt by the LPDC of copies all applicable invoices and receipts of payment
for the same invoices for all projects, which were previously approved by the
LPDC Board, and have been completed,
2) Receipt by the LPDC of pictures showing proof of completion of each of the
projects previously approved by the LPDC Board,
3) Receipt by LPDC of copies of all certificates and permits required by the City
of La Porte, Texas, if any, to the Recipient for completion of the renovated
Business Site;
84,115.72
4) Proof of minimum capital investment in the amount of $ applied
towards eligible and approved improvements of the Business Site and related
infrastructure and site work. The renovation to the Business Site and related
2
infrastructure for which the required capital investment is made, must, at a
minimum, include the following scope of work:
a) Paint & Wood Repair for $35,785.00
b) Parking Lot Repair for $35,000.00
c) Landscaping for $10,000.00
d) Signage for $3,330.72
5) Submission to LPDC of an employment roster evidencing that the Recipient
employs TWO (2) full time and TWO (2) part-time individuals as employees at
the Business Site. Proof of employment, for purposes of this agreement, shall
require the Recipient to produce either a) copies of the Recipients 941 Report
to the Internal Revenue Service and C3 Report to the Texas Workforce
Commission for each employee (but with the social security number of each
employee redacted), or b) a signed and notarized statement executed by the
owner, or another duly authorized representative, of the company affirming
that TWO (2) full time and TWO (2) part-time employees are employed by the
Recipient for positions permanently located at Business Site.
6) Presentation to the Board of the LPDC, during a regularly scheduled Board
meeting, regarding all elements of the completed enhancement grant projects.
$42,057.86
7) In no case will the sum of be made by the LPDC if all the required
items listed in Article I are not delivered to and received by LPDC within one
(1) year from the date on which this agreement is approved by the La Porte
City Council. In the case that all the required items listed in Article I for the
Business Site are presented to LPDC on or before said deadline, the LPDC
shall convene a meeting of the LPDC Board of Directors for a date no later
than forty-five (45) days. Upon verification of the completion of all projects
previously approved by the LPDC Board to the Business Site, as reflected by
formal vote of the LPDC Board of Directors that the Recipient has satisfied the
$42,057.86
requirements of this paragraph, LPDC will then remit the sum of
to the Recipient within a period not to exceed thirty (30) days.
ARTICLE II
All funds received as herein provided shall be solely for the purpose of contributing
towards the Recipients costs in making eligible and approved improvements to the
Business Site.
The Recipient further acknowledges that the incentive grant provided for herein is tied to
a project of the LPDC for the promotion or development of new or expanded business
enterprises, as authorized by Texas Local Government Code chapters 501 and 505.
3
ARTICLE III
Disbursement and/or retention of the cash incentive identified in Article I of this
Agreement shall be made as follows:
A. Disbursement shall be made to Recipient, subject to the satisfaction of the
conditions precedent or conditions subsequent contained within Article I of this
Agreement.
$42,057.86
B. LPDCs obligation to Recipient shall not exceed , nor shall LPDC be
obligated to reimburse Recipient for requests delivered to LPDC after the
termination of this Agreement.
ARTICLE IV
The Recipient understands that the funds paid to the Recipient by the LPDC are
derived from tax revenues collected under Texas Local Government Code 505.252, and
that LPDC has estimated the tax revenues to be collected during the term of this
Agreement. The Recipient further understands, acknowledges, and agrees that if the tax
revenue actually collected is less than 90% of the estimated tax revenues to be collected
in any fiscal year during the term of this Agreement, LPDC will be under no obligation to
provide funding to the Recipient for any payment or payments during or after the fiscal
year for which there is a revenue shortfall. Upon execution of the Agreement, funds will
be placed in a City of La Porte designated commitment account for purposes of this
Agreement.
ARTICLE V
In the event of any default by the Recipient hereunder, including, but not limited to,
use of the funds provided herein for purposes other than those stated in Article I of this
Agreement, LPDC may cease all future payments hereunder and terminate this
Agreement. In addition, LPDC shall have the right to reclaim and recapture, and the
Recipient shall refund, any funds that are not spent in accordance with the terms of this
Agreement, including 1) LPDC funds spent by the Recipient in contravention of this
Agreement and 2) any LPDC funds previously paid to the Recipient but not yet spent by
Recipient. In each such case, the previously paid cash payment or payments shall be
remitted to the LPDC within sixty (60) of receipt of written demand for same.
Any breach of this covenant shall be grounds for immediate termination of the
distribution of funds.
ARTICLE VI
The term of this Agreement will expire one (1) year from the date on which the City
Council approved the project.
4
ARTICLE VII
All funds provided by the LPDC pursuant to this Agreement may be used only for
the purposes authorized by this Agreement. Notwithstanding Article I, above, City shall
be under no obligation to make any fund disbursements if the reports required under this
Article have not been delivered to the LPDC.
ARTICLE VIII
This Agreement does not create any joint venture, partnership, or agency
relationship between the LPDC and the Recipient. The Recipient shall have exclusive
control of, and the exclusive right to control the details of the work to be performed by the
Recipient hereunder and all personnel performing same, and shall be solely responsible
for the acts and omissions of its officers, members, agents, servants, employees,
subcontractors, program participants, volunteers, licensees, and invitees. In no event
shall any person participating in or performing any of the Recipients duties or
responsibilities hereunder be considered an officer, agent, servant, or employee of the
LPDC.
ARTICLE IX
The Recipient agrees to assume and does hereby assume all responsibility and
liability for damages sustained by persons or property, whether real or asserted, by or
from the carrying on of work by the Recipient or in the performance of services performed
and to be performed by the Recipient hereunder. The Recipient covenants and agrees
to, and does hereby indemnify, defend, and hold harmless LPDC and all their respective
officers, agents, and employees from all suits, actions, claims, and expenses of any
character, including attorneys fees, brought for or incurred on account of any injuries or
damages, whether real or asserted, sustained by any person or property by or in
consequence of any intentional or negligent act, omission, or conduct of the Recipient, its
agents, servants or employees.
ARTICLE X
This Agreement may be amended by the mutual agreement of the Parties hereto
in writing to be attached to and incorporated into this Agreement.
ARTICLE XI
The Recipient shall adhere to all local, state, and federal laws and regulations that
may affect its actions made pursuant to this Agreement, and shall maintain in effect during
the term of this Agreement any and all federal, state, and local licenses and permits which
may be required of Recipients generally.
5
ARTICLE XII
The Recipient may not assign this Agreement, or any of the benefits provided
herein including but not limited to incentive payments identified in Article I, without the
written consent of LPDC.
ARTICLE XIII
The waiver by LPDC of any breach of any term, condition, or covenant herein
contained shall not be deemed a waiver of any subsequent breach of the same, or any
other term, condition, or covenant.
ARTICLE XIV
The obligations of the Parties to this Agreement are performable in Harris County,
Texas and if legal action is necessary to enforce same, venue shall lie in Harris County,
Texas.
ARTICLE XV
This Agreement shall be governed by and construed in accordance with the laws
of the State of Texas.
ARTICLE XVI
This Agreement may be executed in triplicate, each of which shall be deemed an
original and constitute one and the same instrument.
ARTICLE XVII
Neither LPDC nor the Recipient shall be required to perform any term, condition,
or covenant in this Agreement so long as such performance is delayed or prevented by
force majeure, which shall mean Acts of God, civil riots, floods, and any other cause not
reasonably within the control of LPDC or the Recipient except as herein provided, and
which by the exercise of due diligence LPDC or the Recipient is unable, wholly or in part,
to prevent or overcome.
ARTICLE XVIII
In submitting this application, the applicant whose signature appears below affirms
its intent and commitment to comply in full with Section 2264.052 of the Government
Code and certifies that it does not and will not knowingly employ an undocumented worker
6
during any time period associated with the public subsidy for which the application is
being submitted. The applicant further certifies its understanding and agreement that if it
is convicted of a violation of 8 U.S.C. Section 1324a(f), providing for civil and/or criminal
penalties for engaging in a pattern or practice of knowingly hiring or continuing to employ
unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the
rate and according to the terms of the agreement signed under Section 2264.053 of the
Government Code, not later than the 120th day after the date the city notifies the business
of the violation.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto,
superseding all oral or written pervious and contemporary agreements between the
Parties, which relate to matters in this Agreement.
SIGNED AND AGREED to by LPDC and the Recipient on the dates indicated
below.
LA PORTE DEVELOPMENT CORPORATION
__________________________
Richard Warren, President
___________________
Date
ATTEST
___________________________
Secretary of the Corporation
7
Brotamonte Asset 1, LLC
________________
By:
_________________________________
11/30/2015
_________________________
Date
ATTEST
________________________________
8
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMREQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
January 11, 2016January 11, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Source of Funds:Source of Funds:
Scott D. LivingstonScott D. Livingston
Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Up to $250,000.00Up to $250,000.00
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. Project Introduction Project Introduction--Revised by StaffRevised by Staff
2. Project Presentation Project Presentation--Revised by StaffRevised by Staff
3. New Incentive Guidelines New Incentive Guidelines--November 11, 2015November 11, 2015
4. Project Math Project Math
5. Development Agreement for Fischer's Development Agreement for Fischer's
6. Public Hearing Notice Public Hearing Notice
7. Tax Records Tax Records
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
The owners of Fischers Hardware are planning to invest s Hardware are planning to invest to expand the hardware store on the northwest corner of to expand the hardware store on the
northwest corner of
$611,559.28$611,559.28
W. Fairmont Parkway and S. Broadway. This amount does not include any capital to purchase new retail inventory. FischerW. Fairmont Parkway and S. Broadway. This amount does not include
any capital to purchase new retail inventory. Fischer
proposing to complete the following projects: proposing to complete the following projects:
Remove the existing metal fascia on the entire perimeter of the building,Remove the existing metal fascia on the entire perimeter of the building,
Install a new framework and new stucco fascia panels,Install a new framework and new stucco fascia panels,
Remove the awning from the southwest side of the building,Remove the awning from the southwest side of the building,
Install kneewall stone fascia,Install kneewall stone fascia,
Install a black wrought iron fence,Install a black wrought iron fence,
Add paint and signage to the new structures,Add paint and signage to the new structures,
Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 square feet,Remove the block wall between the existing build and Little Jacks to
increase square footage by 15,000 square feet,
Add new, interior fixtures & lumber fixtures for expansion,Add new, interior fixtures & lumber fixtures for expansion,
Add new, interior signage and fixtures,Add new, interior signage and fixtures,
Repaint the pole sign and add new graphic signage.Repaint the pole sign and add new graphic signage.
Re-seal and re-stripe the parking lot,stripe the parking lot,
Re-pave the area which is currently covered on the south side of the building, andpave the area which is currently covered on the south side of the building, and
Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole and add stucco Add new flower beds and landscaping, including a block flower
bed at the bottom of the exterior sign pole and add stucco
finish to match the building. finish to match the building.
Since the ED Board may hold the project principals accountable for completing each of the identified projects and spending a Since the ED Board may hold the project principals accountable
for completing each of the identified projects and spending a
minimum amount on new taxable business personal property (i.e. retail inventory), minimum amount on new taxable business personal property (i.e. retail inventory), infrastructureinfrastructure,
, site improvementssite improvements
other related improvements, written bids are neither required nor necessary for this project. The proposed project expenses other related improvements, written bids are neither required
nor necessary for this project. The proposed project expenses
are as follows:
Original Proposal (August 26, 2015)Original Proposal (August 26, 2015)Amended Proposal (Jan 11, 2016)Amended Proposal (Jan 11, 2016)
for building renovation/constructionfor building renovation/construction for building renovation/ construction for building renovation/ construction
$761,854 $450,000$450,000
on interior furniture, fixtures, and equipmenton interior furniture, fixtures, and equipment on interior furniture, fixtures, and equipment on interior furniture, fixtures, and equipment
$92,873.84 $92,874$92,874
to resurface and stripe the parking lotto resurface and stripe the parking lot to resurface and stripe the parking lot to resurface and stripe the parking lot
$50,000 $30,000$30,000
on exterior/street signageon exterior/street signage on exterior/street signage on exterior/street signage
$20,000 $15,000$15,000
on interior signageon interior signage on interior signage on interior signage
$18,685.44 $18,685$18,685
for new flower beds and landscapingfor new flower beds and landscaping for new flower beds and landscaping for new flower beds and landscaping
$10,000 $5,000$5,000
total improvementstotal improvements total improvements total improvements
$953,412 $611,559$611,559
Therefore, the of expenditure for this proposed project isof expenditure for this proposed project is, excluding any expenses for retail , excluding any expenses for retail
Estimated Total Estimated Total $611,559.28 $611,559.28
inventory.
Project History
The project principals for FischerThe project principals for Fischers Hardware were initially planning to spend $1.4 million, including $450,000 to purchase new retail s Hardware were
initially planning to spend $1.4 million, including $450,000 to purchase new retail
inventory, to renovate the hardware store, and the principals had requested an economic development grant in the amount of inventory, to renovate the hardware store, and the principals
had requested an economic development grant in the amount of
.During discussion and deliberations on August 26, 2015, the members of the ED Board elected to exclude the $450,000 During discussion and deliberations on August 26, 2015, the members
of the ED Board elected to exclude the $450,000
$350,000
value of the retail inventory and offered an incentive grant up to $250,000 for effectively a $1 million project. Therefore, on August value of the retail inventory and offered an incentive
grant up to $250,000 for effectively a $1 million project. Therefore, on August
26, 2015, the ED Board authorized staff to publish 6026, 2015, the ED Board authorized staff to publish 6026, 2015, the ED Board authorized staff to publish 6026, 2015, the ED Board
authorized staff to publish 60----day public notice of a public hearing on November 11, 2015 to consider day public notice of a public hearing on November 11, 2015 to consider day public
notice of a public hearing on November 11, 2015 to consider day public notice of a public hearing on November 11, 2015 to consider
awarding an economic development grant to owners of Fischerawarding an economic development grant to owners of Fischers Do It Best Hardware for an amount not to exceed s Do It Best
Hardware for an amount not to exceed
$250,000.00
Prior to November 11, 2015, the project principals elected to revise and decrease the amount of proposed expenditure for the Prior to November 11, 2015, the project principals elected
to revise and decrease the amount of proposed expenditure for the
proposed project, even though the principals planned, and still plan, to undertake each of the work items shared and discussed in proposed project, even though the principals planned,
and still plan, to undertake each of the work items shared and discussed in
previous presentations. Therefore the ED Board opened the public hearing on 11 November 2015, and then approved a motion to previous presentations. Therefore the ED Board opened the
public hearing on 11 November 2015, and then approved a motion to
postpone the public hearing and consideration of the proposed project to the meeting on January 11, 2016 when the revised postpone the public hearing and consideration of the proposed
project to the meeting on January 11, 2016 when the revised
estimates would be ready for discussion. estimates would be ready for discussion.
Background InformationBackground Information
As of January 1, 2015, the real property taxable value of FischerAs of January 1, 2015, the real property taxable value of Fischers Do It Best Hardware (Fischers Do It Best Hardware
(Fischers) is $1,408,955, while the s) is $1,408,955, while the
business personal property taxable value is approximately $160,000. Therefore, the current total taxable value of Fischerbusiness personal property taxable value is approximately $160,000.
Therefore, the current total taxable value of Fischer
estimated to be . .
$1,568,955$1,568,955
As a direct result of this expansion and the associated improvements, the project principals anticipate that their taxable retail sales As a direct result of this expansion and the associated
improvements, the project principals anticipate that their taxable retail sales
may increase by as much as 15may increase by as much as 15--20%. In addition, the project principals are planning to hire 7 to 10 new employees as a result of 20%. In addition, the
project principals are planning to hire 7 to 10 new employees as a result of
this expansion. Of these new employees, 4 to 5 will be this expansion. Of these new employees, 4 to 5 will be full timefull timeand the remaining will be and the remaining will
be partpart--timetimeemployees. 3 to 4 of the employees. 3 to 4 of the
full timeemployees will be categorized as employees will be categorized as managementmanagement. .
Other benefits of this proposed project include: Other benefits of this proposed project include:
Redevelopment and beautification of a prime corner in town,Redevelopment and beautification of a prime corner in town,
Opportunity to encourage local business expansion,Opportunity to encourage local business expansion,
Locally owned business with deep roots in in La Porte, andLocally owned business with deep roots in in La Porte, and
Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte.Opportunity to encourage the ongoing viability of this business anchor at a prime
location in La Porte.
Staffs Recommendations Recommendation
According to the new incentive guidelines approved by the Board on November 11, 2015, the project may receive a grant According to the new incentive guidelines approved by the Board
on November 11, 2015, the project may receive a grant
commitment of the of either (a) a 10 year payback of the businessof either (a) a 10 year payback of the businesss new tax revenues to the City of La Porte, which is s new tax revenues
to the City of La Porte, which is
lesser lesser
equivalent to , or (b) up to 25% of the business, or (b) up to 25% of the businesss total eligible expenditures, which is equivalent to s total eligible expenditures, which is equivalent
to . Therefore,
$120,000$120,000$150,000
according to the ED Boardaccording to the ED Boards new incentive guidelines, the maximum amount for which this project may qualify would be s new incentive guidelines, the maximum
amount for which this project may qualify would be
.
$120,000
Assistant City Attorney Clark Askins and staff drafted a proposed development agreement for a maximum amount of Assistant City Attorney Clark Askins and staff drafted a proposed development
agreement for a maximum amount of
$120,000
While staff is prepared to make any revisions to the proposed development agreement that the Board may request (including the While staff is prepared to make any revisions to the proposed
development agreement that the Board may request (including the
incentive amount), the proposed targets/performance markers for the development agreement include: incentive amount), the proposed targets/performance markers for the development agreement
include:
Invest at least $600,000 to complete each of the approved work items,Invest at least $600,000 to complete each of the approved work items,
Hire at least 4 new full time employees and 3 new part time employees,Hire at least 4 new full time employees and 3 new part time employees,
Complete all approved work items by February 28, 2017, andComplete all approved work items by February 28, 2017, and
Increase sales tax revenue by at least 15% for 3 years.Increase sales tax revenue by at least 15% for 3 years.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Consider approval or other action authorizing an enhancement grant in an amount not to exceed $250,000.00, payable to Fischer's Consider approval or other action authorizing an enhancement
grant in an amount not to exceed $250,000.00, payable to Fischer's
Hardware, Inc., and associated development agreement, for infrastructure improvements to property located at 1010 S. Broadway Hardware, Inc., and associated development agreement, for
infrastructure improvements to property located at 1010 S. Broadway
Street, with payment to be remitted at the completion of the project Street, with payment to be remitted at the completion of the project -- S. Livingston S. Livingston
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
Revised by Staff
16 Dec. 2015
Proposed Project Criteria
tƌĻğƭĻ ƦƩƚǝźķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭ źƓŅƚƩƒğƷźƚƓ Ʒƚ Scott D. Livingston ğƷ \[źǝźƓŭƭƷƚƓ{θƌğƦƚƩƷĻƷǣ͵ŭƚǝ ğƷ ƌĻğƭƷ ƷŷƩĻĻ ΛЌΜ
ǞĻĻƉƭ źƓ ğķǝğƓĭĻ ƚŅ ƷŷĻ ƦƌğƓƓĻķ ƒĻĻƷźƓŭ ķğƷĻ ǞźƷŷ ƷŷĻ .ƚğƩķ ƚŅ 5źƩĻĭƷƚƩƭ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ
/ƚƩƦƚƩğƷźƚƓʹ
Њ͵ŷƚ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻͪ ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ķƚͪ
Fischers Hardware is in the business of retail sales providing product and services to La Porte and
surrounding areas.
Ћ͵ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ tƌĻğƭĻ ĻǣƦƌğźƓ ƷŷĻ ƭĭƚƦĻ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ
ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭ͵ tƌĻğƭĻ ƭǒĬƒźƷ ğ ƭźƷĻ ƦƌğƓͲ ĻƌĻǝğƷźƚƓ ƩĻƓķĻƩźƓŭΛƭΜͲ ƦźĭƷǒƩĻƭͲ ğƓķΉƚƩ ğ ķĻƷğźƌĻķ
ǝĻƩĬğƌ ķĻƭĭƩźƦƷźƚƓ ƚŅ ƷŷĻ ķĻƭźƩĻķ ƦƩƚƆĻĭƷ ǞźƷŷ Ʒŷźƭ ŅƚƩƒ͵
$611,559.28 to expand
their existing business in La Porte, TX͵ The owners will use the funds to remodel both the interior and
exterior of the building to provide an updated appearance by completing the following projects:
Remove the existing metal fascia on the entire perimeter of the building,
Install a new framework and new stucco fascia panels,
Remove the awning from the southwest side of the building,
Install kneewall stone fascia,
Install a black wrought iron fence,
Add paint and signage to the new structures,
Remove the block wall between the existing build and Little Jacks to increase square footage by
15,000 square feet,
Add new, interior fixtures & lumber fixtures for expansion,
Add new, interior signage and fixtures,
Repaint the pole sign and add new graphic signage.
Re-seal and re-strip the parking lot,
Re-pave the area which is currently covered on the south side of the building, and
Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior
sign pole and add stucco finish to match the building.
Ќ͵ŷĻƩĻ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ ĬǒƭźƓĻƭƭ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ
Fischers Hardware will operate in its current location.
Ѝ͵ŷĻƓ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƭƷğƩƷ ğƓķ ŅźƓźƭŷ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ
Fischers Hardware would like to start the project as soon as possible and have the project
completed within six months.
3
Revised by Staff
16 Dec. 2015
Ў͵ŷǤ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓƷĻƩĻƭƷĻķ źƓ ĭƚƓķǒĭƷźƓŭ ĬǒƭźƓĻƭƭ Ʒƚ \[ğ tƚƩƷĻͲ Ļǣğƭͪ
Fischers Hardware has been serving the community for 35 years and would like to continue with a new
look and new products to better serve customers.
Џ͵IƚǞ Ǟƚǒƌķ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ƌźƉĻ Ʒƚ ƩĻĭĻźǝĻ ğƭƭźƭƷğƓĭĻ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ
ğƭƭźƭƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓ ƒğƉźƓŭ ğ ŅźƩƒ ĭƚƒƒźƷƒĻƓƷ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ
Ļǣğƭͪ
Fischers Hardware would like to receive assistance from the ED Board to complete the proposed project
in a minimal amount of time. We would like to request funds to make the transition.
А͵ŷğƷ ğƩĻ ƷŷĻ ĻƭƷźƒğƷĻķ ЋЉЊЌ ƷğǣğĬƌĻ ǝğƌǒĻƭ ƚŅ ƷŷĻ ĻǣźƭƷźƓŭ ƦƩƚƦĻƩƷǤΛźĻƭΜ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƌƚĭğƷźƚƓ źƓ \[ğ
tƚƩƷĻͲ Ļǣğƭͪ
The current, total taxable value of Fischers Hardware is 1.4 million.
Б͵ŷğƷ źƭ ƷŷĻ ĻƭƷźƒğƷĻķ ƷğǣğĬƌĻ ǝğƌǒĻ Ʒƚ ĬĻ ğķķĻķ źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ĭƚƒƦƌĻƷźƓŭ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ
źƓ \[ğ tƚƩƷĻͪ ŷźƭ Ǟƚǒƌķ źƓĭƌǒķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭʹ
The owners are planning to invest $1.4 million, which is equal to 90% of the current, taxable value of the
property, to renovate and expand the existing building, purchase new taxable retail inventory, purchase
new interior furniture, fixtures, and equipment, purchase new interior and exterior signage, re-pave and
re-stripe the parking lot, and add additional landscaping.
В͵IƚǞ ƒğƓǤ ĻǣźƭƷźƓŭ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ƩĻΏƌƚĭğƷĻķ Ʒƚ \[ğ tƚƩƷĻ ƚƩ ƩĻƷğźƓĻķ źƓ \[ğ
tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ
All existing employees will remain as a result of the proposed project.
ЊЉ͵IƚǞ ƒğƓǤ ƓĻǞ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ŷźƩĻķ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ
Fischers Hardware plans to add 7 to 10 new employees as a result of the proposed project. Of these new
-
ЊЊ͵IƚǞ ƒğƓǤ Ʀğźķ ğƓķΉƚƩ źƓƷĻƩƓ ƦƚƭźƷźƚƓƭ ğƩĻ ƷŷĻ ĭƚƒƦğƓǤ ǞźƌƌźƓŭ Ʒƚ ƩĻƭĻƩǝĻ ŅƚƩ ƭƷǒķĻƓƷƭ ƚŅ \[ğ tƚƩƷĻ Iźŭŷ
{ĭŷƚƚƌͪ
Fischers Hardware has used Cooperative Education in the past with positive results and will continue to
use this program. We estimate 3 to 5 positions will be available.
4
Revised by Staff
16 Dec. 2015
ЊЋ͵DĻƓĻƩğƌƌǤ źķĻƓƷźŅǤ ƷŷĻ ĬĻƓĻŅźƷƭͲ źŅ ğƓǤͲ ƷŷğƷ ğƌƌ Ņǒƌƌ ƷźƒĻ ĻƒƦƌƚǤĻĻƭ Ǟźƌƌ ƩĻĭĻźǝĻ Λź͵Ļ͵ ЍЉЊƉͲ ķĻƓƷğƌͲ ƒĻķźĭğƌͲ
ǝźƭźƚƓͲ ƭƷƚĭƉ ƚƦƷźƚƓƭͲ ƦƩƚŅźƷΏƭŷğƩźƓŭͲ ĻƷĭ͵Μ͵
Fischers Hardware offers optional medical, dental, vision, and Accidental Death and Dismemberment, as
well as life insurance to all full time employees.
ЊЌ͵/ğƷĻŭƚƩźǩĻ ƷŷĻ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻͳ ĬƚƷŷ ƩĻƌƚĭğƷĻķ ğƓķ ƓĻǞ ŷźƩĻƭΜ ĬǤ ƆƚĬ ƷźƷƌĻΉƷǤƦĻ ƚŅ
ǞƚƩƉ ğƓķ ǞğŭĻΉƭğƌğƩǤ ƌĻǝĻƌ͵
All of Fischers Hardware employees are categorized as sales with the exception of office clerical
personnel. Sales positions include customer service, stocking, and cashier.
ЊЍ͵
ǞźƷŷƚǒƷ ƷŷĻ ğƭƭźƭƷğƓĭĻ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ǞŷǤ ƒźŭŷƷ ƓƚƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ĬĻ ğĬƌĻ
Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ
Without the assistance of the La Porte Development Corporation, Fischers Hardware is unable to
complete the proposed project.
ЊЎ͵ŷğƷ ŅƚƩƒΛƭΜ ğƓķ ğƒƚǒƓƷΛƭΜ ƚŅ źƓĭĻƓƷźǝĻƭ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƩĻƨǒĻƭƷ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ
5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ
Fischers Hardware would like to receive the full amount of incentive funds allowable to
complete the proposed project. Fischers Hardware is requesting the sum of $250,000.
decision and grant award will determine whether or not they will
spend the full amount or reduce the scope of the proposed project.
5
La Porte, Texas 77571
1012 S. Broadway
Rod Rothermel
0171
-
(281) 470
Owner
frkherrera@yahoo.com
La Porte, Texas 77571
1012 S. Broadway
Frank Herrera
fischershardware@gmail.com
La Porte, Texas 77571
Michael Breaux
0171
-
(281) 470
Owner
Incentive Guidelines for New and Expanding Businesses
City of La Porte
11 November 2015
lesser
1.Incentives for new or expanding businesses should be limited to the of:
(a)A maximum 10 year payback of the business’s new/additional tax revenues to the
City of La Porte, or
(b)Up to 25% of the business’s total expendituresfor “infrastructure”, “site
improvements”, and “other related improvements”;
2.Businesses that create new “primary jobs” will receive additional value, which will be
calculated as an “Adjusted Payback”;
3.“Primary Job Training” is an eligible expense toward a business’s 25% total expenditure;
4.The maximum contribution of the Board to projects in the La Porte Enhancement Grant
Program is $50,000; and
5.Projects that donot meet these parameters will be considered on a case-by-case basis.
Contextual Information for Economic Development Grant Awards
All projects that apply for an economicdevelopment grant must meet the following criteria:
(1)Only the minimum amount of financial assistancerequired to bring the project tofruition
will be considered.
(2)A strict, narrow focus will be maintained for using funds on “infrastructure”, “site
improvements”, “related improvements”, and “primary job training”.
(3)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.
(4)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 design, or executive “jobs”.
0.125
b.A value of per job will be assigned to highly skilled positions for a process
primary
technician and/or advanced manufacturing “jobs”.
0.10primary
c.A value of per job will be assigned to skilled “jobs”.
0.075primary
d.A value of per job will be assigned to unskilled “jobs”, and
0non-primary
e.A value of per job will be assigned to “jobs”.
(5)Projects which have already made a commitment to establish a new business in La Porte
will not be considered for an incentive grant.
(6)Projects which have already started construction or other renovation work will not be
considered for an incentive grant.
(7)The ED Board and/or City Council will retain discretion to award any lesser or
greater amount to any given project.
Project Math
New Incentive Guidelines for New and Expanding Businesses
This mathematical analysis is based upon the ,
which the ED Board approved on 11 November, 2015. In short, the new guidelines applicable to this project
state that:
lesser
1.Incentives for new or expanding businesses should be limited to the of:
(a)
City of La Porte, or
(b)ite
2.
;
Known Facts:
$600,000
Total capital expenditure, excluding inventory of approximately .
15-20%
Sales tax revenues are expected to increase by , per the Project Introduction.
nd
Annual sales tax revenues for the last twelve months ending with the 2 Quarter of 2015, as provided by
the STARS report. (Note: In accordance with State Law, this information is confidential.)
Anticipated new employment of 4 full time managerial positions and 3 part time positions. (Note: For
0.1
the purpose of this analysis, the full time, primary job positions were given a value of , while the part
0
time, non-primary job positions were assigned a value of ).
Analysis:
new/additional tax revenues to the City of La Porte, since this amount is less than
. Therefore, assuming that (a) 100% of the value of the $600,000
tax revenue by 20% each year, the 10 year payback is as:
$120,000
= (($600,000/100) x (0.71) x (10 years))
+ ((20% new sales tax revenue) x (10 years))
+ a value for 4 full time, managerial/primary jobs
1
$200,000
For , the payback period is 17.15 years, and the adjusted payback period is 16.75 years.
$150,000
For , the payback period is 12.86 years, and the adjusted payback period is 12.46 years.
$120,00010.29 years9.89 years
For , the payback period is , and the adjusted payback period is .
2
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE
DEVELOPMENT COPRPORATION, AND A TEXAS
CORPORATION, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS
THIS AGREEMENT made by and entered into this ____ day of _______ _, 2016 between the
La Porte Development Corporation, a Type B non-profit corporation operating under authority of
Texas Local Government Code Chapters 501 and 505
Inc., a Texas Corporation,
WITNESSETH:
WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax
within the City for promotion of economic development and the LPDC is authorized to use such tax
revenues for certain qualifying projects and other economic development related purposes; and
WHEREAS, Recipient is a Texas based retail hardware outlet with stores located in Baytown,
Texas, Pasadena, Texas, and La Porte, Texas; and
WHEREAS, Recipient wishes to renovate the exterior and interior of its existing hardware store
located at 1010 S. Broadway St., La Porte, Texas, and
make associated site improvements, and which would 1) result in the expenditure by Recipient of an
estimated $600,000.00 in capital improvements; 2) employ an additional four (4) full time and three
(3) part-time personnel; and 3) increase annual retail sales tax revenues attributable to the 1010 S.
Broadway store site by 20%.
WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to
contribute towards the cost of renovation of the property at 1010 S. Broadway St., under a qualifying
project of the LPDC for infrastructure, site and related improvements, as authorized by Texas Local
Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of
same, finding that such expenditures will promote or develop new or expanded business enterprises.
WHEREAS, Texas law and the by-laws of the LPDC require that certain expenditures and
projects by the LPDC be approved by the governing body of the City; and whereas the LPDC Board
has duly approved such project and the expenditures for same have been authorized by the La Porte
City Council; and
NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in
consideration of the mutual benefits that will accrue to each of the parties hereof, as well as to the
citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows:
ARTICLE I
In consideration of Recipient renovating the existing structure at 1010 S. Broadway St., and
continuing to store at the 1010 S. Broadway St site Store,
1
which proposal was considered in that certain public hearing authorizing a proposed project for the
expenditure of LPDC funds for the promotion or development of new or expanded business
enterprises, held before the LPDC on November 11, 2015, LPDC agrees to provide Recipient an
incentive package consisting of cash payments in a total sum not to exceed $120,000.00, to be
distributed in five separate payments of $50,000.00, $10,000.00, $20,000.00, $20,000.00, and
$20,000.00, with each distribution conditioned upon the attainment of certain performance thresholds,
more specifically outlined as follows:
1) A cash incentive payment in an amount equal to $50,000.00 will be distributed to
Recipient by LPDC, upon receipt by LPDC of a) proof of all Final Inspection Reports
issued by the City of La Porte, Texas to Recipient for completion of the renovated
Store and b) proof of a minimum capital investment in the amount of $600,000.00
applied towards renovation of the Store and related infrastructure and site work. The
renovation to the Store and related infrastructure for which the required capital
investment is made, must, at a minimum, include the following scope of work:
a) Removal of existing metal fascia on the entire perimeter of the building
b) Installation of new framework and new stucco fascia panels
c) Removal of awning from the southwest side of the building
d) Installation of knee-wall stone fascia
e) Installation of black wrought iron fence
f) Addition of paint and signage to the new structures
g) Removal of the block wall between the existing build and
Little Jacks to increase square footage of hardware store by 15,000 square feet
h) Addition of new interior fixtures and lumber fixtures for
expansion
i) Addition of new interior signage and fixtures
j) Repainting of the pole sign and addition of new graphic
signage
k) Resealing and restriping the parking lot
l) Repaving of area which is currently covered on the south
side of the building
m) Addition of new flower beds and landscaping, including a
block flower bed at the bottom of the exterior sign pole and
add stucco finish to match the building
A. In no case will the $50,000.00 payment be made by LPDC if a copy
of all Final Inspection Reports , and documentation substantiating the
expenditure of no less than $600,000.00 applied towards capital improvements to
complete all the items listed in Article I, is not delivered to and received by LPDC by
February 28, 2017. In the case that proof of all Final Inspection Reports and a
minimum capital investment of $600,000.00 for the Store is presented to LPDC on or
before said February 28, 2017 deadline, the LPDC shall convene a meeting of the
LPDC Board of Directors for a date no later than forty-five (45) days after receipt of
proof of all Final Inspection Reports and minimum capital investment of $600,000.00
by LPDC from Recipient. Upon verification of the completion of all items listed in
2
Article I to renovate the Store, as reflected by formal vote of the LPDC Board of
Directors that Recipient has satisfied the requirements of this paragraph, LPDC will
then remit the $50,000.00 to Recipient within a period not to exceed thirty (30) days.
B. Notwithstanding the foregoing requirements, Recipient will be entitled to receive
a pro-rata portion of the $50,000.00 incentive payment in the event that it should, by
the February 28, 2017 deadline, provide a copy of all Final Inspection Reports, and
provide documentation evidencing that Recipient made a capital investment to
complete all items listed in Article I towards renovation of the Store and related
infrastructure and site work, but in an amount less than $600,000.00. However, in
this case Recipient shall be entitled to payment of a pro rata share of the $50,000.00
incentive grant only in the instance that Recipient provides a copy of all Final
Inspection Reports , and evidence of capital investment in renovation and related
infrastructure and site work, in an amount no less than $550,000.00. Where
Recipient fails to provide documentation evidencing capital investment in renovation
and related infrastructure and site work in an amount of at least $550,000.00, it shall
be disqualified from receiving any portion of the $50,000.00 incentive payment.
In the case that Recipient provides a copy of all Final Inspection Reports, as well as
documentation evidencing capital investment to complete all items listed in Article I in
renovation and related infrastructure and site work in an amount of at least
$550,000.00, but less than $600,000.00, to LPDC on or before said February 28,
2017 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for
a date no later than forty-five (45) days after receipt of proof of the total taxable retail
sales from Recipient. submission of a copy of all
necessary Final Inspection Reports, as well as documentation evidencing capital
investment in renovation and related infrastructure and site work for all the items
listed in Article I in an amount of at least $550,000.00, but less than $600,000.00, for
qualification of pro rata payment, as reflected by formal vote of the LPDC Board of
Directors that Recipient has satisfied the requirements of this paragraph, LPDC will
then remit a pro rata share of the $50,000.00 amount as applicable, to Recipient
within a period not to exceed thirty (30) days. For purposes of clarification only, the
following two examples shall serve to illustrate the application of this paragraph:
Example 1: If Recipient provides evidence of total capital expenditure for the Store in
the amount of $545,000.00 by the February 28, 2017 deadline, the incentive payment
under this agreement would be $0.
Example 2: If Recipient provides evidence of total capital expenditure for the Store in
the amount of $575,000.00 by the February 28, 2017 deadline, the incentive payment
under this agreement would be calculated at $575,000/$600,000, or 96% of the
$50,000.00 incentive payment, for a total payment of $48,000.00.
2) A cash incentive payment in an amount equal to $10,000.00 will be distributed to
Recipient by LPDC, upon submission to LPDC of an employment roster evidencing
that Recipient employs an additional four (4) full time and three (3) part-time
individuals as employees at the Store, above the ten (10) full time and six (6) part-
3
time individuals employed at the La Porte store as of October 15, 2015, no later than
February 28, 2017. Proof of employment, for purposes of this agreement, shall
Revenue Service and C3 Report to the Texas Workforce Commission for each
employee (but with social security numbers of each employee redacted) and b) a
notarized an
additional four (4) full time and three (3) part-time employees are employed by
Recipient for positions permanently located at the 1010 S. Broadway St. site.
However, where Recipient fails to make capital investment towards renovation and
related infrastructure and site work at the Store in completion of all the items listed in
Article I in an amount of at least $550,000.00 by the said February 28, 2017 deadline
for submission of an employment roster, then Recipient shall be disqualified from
receiving any portion of the $10,000.00 payment; in no case will Recipient be entitled
to a pro rata portion of the $10,000.00 incentive.
3) A cash incentive payment in an amount equal to $60,000.00 will be distributed to
Recipient by LPDC, in three annual installments of $20,000.00 each, based on the
following criteria:
A. Beginning with the date that the Recipient is issued the last, required Final
Inspection Report from the City of La Porte certifying completion of all of the work
items associated with the proposed project covered by this Agreement, if during the
12 month period following the date of issuance of the said last, required Final
Inspection Report (Year 1 of operation) the Recipient generates sales tax revenue
from the La Porte store that meets or exceeds by 20% the amount of sales tax
rd
revenue generated from the beginning of the 3 Quarter of 2014 through and
nd
including the 2 Amount herein) as
reflected in the Sales Tax Analysis and Reporting Service (STARS Report), Recipient
shall be entitled to a $20,000.00 installment payment at the end of Year 1 of
operation.
B. If during the 12 month period following Year 1 of operation (Year 2 of operation)
Recipient generates sales tax revenue from the La Porte store that meets or exceeds
by 20% the Baseline Sales Tax Revenue Amount as reflected in the Sales Tax
Analysis and Reporting Service (STARS Report), Recipient shall be entitled to a
$20,000.00 installment payment at the end of Year 2 of operation.
C. If during the 12 month period following Year 2 of operation (Year 3 of operation)
Recipient generates sales tax revenue from the La Porte store that meets or exceeds
by 20% the Baseline Sales Tax Revenue Amount as reflected in the Sales Tax
Analysis and Reporting Service (STARS Report), Recipient shall be entitled to a
$20,000.00 installment payment at the end of Year 3 of operation.
D. Notwithstanding the foregoing, if in any Year of Operation, as that term is defined
in this Section, Recipient generates sales tax revenue that does not meet or exceed
the Baseline Sales Tax Revenue Amount by 20%, but does meet or exceed the
Baseline Sales Tax Revenue Amount by at least 15%, then in that case Recipient
4
shall be entitled to a pro rata share of the $20,000.00 installment payment made at
the end of the applicable Year of Operation. However, in the case that Recipient fails
to meet or exceed the Baseline Sales Tax Revenue Amount by at least 15% in a
given Year of Operation, then Recipient shall be entitled to no portion of the
$20,000.00 installment, for that Year of Operation.
If after the conclusion of a Year of Operation, but no later than 90 days after the
conclusion of the Year of Operation, the Recipient submits proof that it met or
exceeded by 20% the Baseline Sales Tax Revenue Amount as reflected in the Sales
Tax Analysis and Reporting Service (STARS Report), the LPDC shall convene a
meeting of the LPDC Board of Directors for a date no later than forty-five (45) days
after receipt of proof of such sales tax revenue data. Upon verification of same, as
reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied
the requirements of this paragraph, LPDC will then remit the $20,000.00 to Recipient
within a period not to exceed thirty (30) days.
If after the conclusion of a Year of Operation, but no later than 90 days after the
conclusion of the Year of Operation, the Recipient submits proof that it met or
exceeded the Baseline Sales Tax Revenue Amount as reflected in the Sales Tax
Analysis and Reporting Service (STARS Report) by at least 15% but less than 20%,
then in that event the LPDC shall convene a meeting of the LPDC Board of Directors
for a date no later than forty-five (45) days after receipt of proof of such sales tax
revenue data. Upon verification of same, for qualification of pro rata payment, as
reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied
the requirements of this paragraph, LPDC will then remit a pro rata share of the
$20,000.00 amount as applicable, to Recipient within a period not to exceed thirty
(30) days. For purposes of clarification only, the following two examples shall serve
to illustrate the application of this paragraph:
Example 1: If Recipient provides evidence of total sales tax revenue for a Year of
Operation that exceeds the Baseline Sales Tax Revenue Amount by 7%, the
incentive payment under this agreement would be $0.
Example 2: If Recipient provides evidence of total sales tax revenue for a Year of
Operation that exceeds the Baseline Sales Tax Revenue Amount by 17%, the
incentive payment under this agreement would be calculated at 17/20, or 83% of the
$20,000.00 incentive payment, for a total payment of $17,000.00.
ARTICLE II
All funds received as herein provided shall be solely for the purpose of contributing towards
Recipient in the renovation of the exterior and interior of the existing hardware store known as
located at 1010 S. Broadway St., La Porte, Texas and for the making of
associated site and infrastructure improvements, to operate hardware store. Recipient further
acknowledges that the incentive grant provided for herein is tied to a project of the LPDC for the
5
promotion or development of new or expanded business enterprises, as authorized by Texas Local
Government Code chapters 501 and 505.
ARTICLE III
Disbursement and/or retention of the cash incentive identified in Article I of this Agreement
shall be made as follows:
A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions
precedent or conditions subsequent contained within Article I of this Agreement.
B. LPDCobligation to Recipient shall not exceed $120,000.00, nor shall LPDC be obligated to
reimburse Recipient for requests delivered to LPDC after the termination of this Agreement.
ARTICLE IV
Recipient understands that the funds paid to Recipient by the LPDC are derived from tax
revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the
tax revenues to be collected during the term of this Agreement. Recipient further understands,
acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated
tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under
no obligation to provide funding to Recipient for any payment or payments during or after the fiscal
year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a
City of La Porte designated commitment account for purposes of this Agreement.
ARTICLE V
In the event of any default by Recipient hereunder, including, but not limited to, use of the
funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may
cease all future payments hereunder and terminate this Agreement. In addition, LPDC shall have the
right to reclaim and recapture, and Recipient shall refund, any funds that are not spent in accordance
with the terms of this Agreement, including 1) LPDC funds spent by Recipient in contravention of this
Agreement and 2) any LPDC funds previously paid to Recipient but not yet spent by Recipient. In
each such case, the previously paid cash payment or payments shall be remitted to the LPDC within
sixty (60) of receipt of written demand for same.
Any breach of this covenant shall be grounds for immediate termination of the distribution of
funds.
ARTICLE VI
The term of this Agreement is for a period beginning on the date of approval by LPDC and
ending February 28, 2017.
ARTICLE VII
6
All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes
authorized by this Agreement. Notwithstanding Article I, above, City shall be under no obligation to
make any fund disbursements if the reports required under this Article have not been delivered to the
LPDC.
ARTICLE VIII
This Agreement does not create any joint venture, partnership, or agency relationship between
the LPDC and Recipient. Recipient shall have exclusive control of, and the exclusive right to control
the details of the work to be performed by Recipient hereunder and all personnel performing same,
and shall be solely responsible for the acts and omissions of its officers, members, agents, servants,
employees, subcontractors, program participants, volunteers, licensees, and invitees. In no event
shall any
be considered an officer, agent, servant, or employee of the LPDC.
ARTICLE IX
Recipient agrees to assume and does hereby assume all responsibility and liability for
damages sustained by persons or property, whether real or asserted, by or from the carrying on of
work by Recipient or in the performance of services performed and to be performed by Recipient
hereunder. Recipient covenants and agrees to, and does hereby
indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and employees
incurred on account of any injuries or damages, whether real or asserted, sustained by any person or
property by or in consequence of any intentional or negligent act, omission, or conduct of Recipient,
its agents, servants or employees.
ARTICLE X
This Agreement may be amended by the mutual agreement of the Parties hereto in writing to
be attached to and incorporated into this Agreement.
ARTICLE XI
Recipient shall adhere to all local, state, and federal laws and regulations that may affect its
actions made pursuant to this Agreement, and shall maintain in effect during the term of this
Agreement any and all federal, state, and local licenses and permits which may be required of
Recipients generally.
ARTICLE XII
Recipient may not assign this Agreement, or any of the benefits provided herein including but
not limited to incentive payments identified in Article I, without the written consent of LPDC.
ARTICLE XIII
7
The waiver by LPDC of any breach of any term, condition, or covenant herein contained shall
not be deemed a waiver of any subsequent breach of the same, or any other term, condition, or
covenant.
ARTICLE XIV
The obligations of the Parties to this Agreement are performable in Harris County, Texas and if
legal action is necessary to enforce same, venue shall lie in Harris County, Texas.
ARTICLE XV
This Agreement shall be governed by and construed in accordance with the laws of the State
of Texas.
ARTICLE XVI
This Agreement may be executed in triplicate, each of which shall be deemed an original and
constitute one and the same instrument.
ARTICLE XVII
Neither LPDC nor Participant shall be required to perform any term, condition, or covenant in
this Agreement so long as such performance is delayed or prevented by force majeure, which shall
mean Acts of God, civil riots, floods, and any other cause not reasonably within the control of LPDC
or Recipient except as herein provided, and which by the exercise of due diligence LPDC or Recipient
is unable, wholly or in part, to prevent or overcome.
ARTICLE XVIII
In submitting this application, the applicant whose signature appears below affirms its intent
and commitment to comply in full with Section 2264.052 of the Government Code and certifies that it
does not and will not knowingly employ an undocumented worker during any time period associated
with the public subsidy for which the application is being submitted. The applicant further certifies its
understanding and agreement that if it is convicted of a violation of 8 U.S.C. Section 1324a(f),
providing for civil and/or criminal penalties for engaging in a pattern or practice of knowingly hiring or
continuing to employ unauthorized aliens, it shall repay the amount of the public subsidy with interest,
at the rate and according to the terms of the agreement signed under Section 2264.053 of the
Government Code, not later than the 120th day after the date the city notifies the business of the
violation.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto, superseding all oral
or written pervious and contemporary agreements between the Parties, which relate to matters in this
Agreement.
8
SIGNED AND AGREED to by LPDC and Recipient on the dates indicated below.
LA PORTE DEVELOPMENT CORPORTION
__________________________
Richard Warren, President
___________________
Date
ATTEST
___________________________
Secretary of the Corporation
By:
_________________________________
_________________________
Date
ATTEST
________________________________
9
PAGE 6 THE BAY AREA OBSERVER
THURSDAY, SEPTEMBER 3, 2015
LEGAL/PUBLIC NOTICES
To Place Legal and Public Notices:
Email editor@bayareaobserver.com or Call 281-907-3140
PUBLIC NOTICE
2015 Property Tax Rates in City of Morgan’s Point
This notice concerns the 2015 property tax rates for City of Morgan’s Point.
It presents information about three tax rates. Last year’s tax rate is the ac
-
-
tual tax rate the taxing unit used to determine property taxes last year. This
dard, and is in violation of the City of La Porte Code of Ordinances # 82-476.
year’s effective tax rate would impose the same total taxes as last year if you
On August 24, 2015 the City of La Porte City Council convened at a Public Hearing and
compare properties taxed in both years. This year’s rollback tax rate is the
issued Condemnation Ordinances for the below listed properties:
highest tax rate the taxing unit can set before taxpayers start rollback pro
-
cedures. In each case these rates are found by dividing the total amount of
1. 204 N. Forrest Ave. TWO STRUCTURES ON SITE
taxes by the tax base (the total value of taxable property) with adjustments as
(Single Family Dwelling in an R-1, Low-Density Residential Zone)
HCAD: #035-208-005-0018 required by state law. The rates are given per $100 of property value.
Blk. 5; Lot 8; Sylvan Beach First Subdivision
Legal Description:
Legal Description:
$ 31,942.00
Improvements:
Last year’s tax rate:
Taxes Owed: $ 0
$1,396,366
Last year’s operating taxes
2. 514 N. 5th St ONE STRUCTURE ON SITE
Last year’s debt taxes $150,044
(Single Family Dwelling in an R-1, Low-Density Residential Zone)
HCAD: #023-216-004-0009
$1,546,410
Last year’s total taxes
Legal Description: Blk. 104; Lots 9 & 10; La Porte – Harris County
Legal Description:
Last year’s tax base $188,788,958
$ 39,495.00
Improvements:
$ 0
Taxes Owed:
$0.819121/$100
Last year’s total tax rate
This year’s effective tax rate:
3. 626 N. 1st St. ONE STRUCTURE ON SITE
(Single Family Dwelling in an R-1, Low-Density Residential Zone)
Last year’s adjusted taxes
HCAD: #024-037-027-0003
$1,546,335
(after subtracting taxes on lost property)
Blk. 327; Lots 3-4; Town of La Porte- Harris County
Legal Description:
Legal Description:
$ 17,803.00
Improvements:
÷ This year’s adjusted tax base
Taxes Owed: $ 0
(after subtracting value of new property) $180,311,019
4. 330 S. 5th St. sONE STRUCTURE ON SITE
(Single Family Dwelling in an R-1, Low-Density Residential Zone)
=This year’s effective tax rate $0.857593/$100
HCAD: #023-162-018-0017
(Maximum rate unless unit publishes notices and holds hearings.)
Legal Description: Blk. 18; Lots 17, 18, & 19; La Porte
Legal Description:This year’s rollback tax rate:
$ 13,614.00
Improvements:
$ 0
Taxes Owed:
Last year’s adjusted operating taxes $1,396,289
(after subtracting taxes on lost property and
adjusting for any transferred function, tax
City of La Porte, 604 W. Fairmont Parkway, La Porte, TX 77571
and/or enhanced indigent healthcare expenditures)
CITY OF LA PORTE
Patrice Fogarty, City Secretary
$180,311,019
÷ This year’s adjusted tax base
In compliance with the Americans with Disabilities Act, the City of La Porte will provide
=This year’s effective operating rate $0.774378/$100
for reasonable accommodation for persons attending public meetings. To better serve at
-
tendees, requests should be received 24 hours prior to the meetings. Please contact Patrice
=this year’s maximum operating rate $0.836328/$100
x 1.08
Fogarty, City Secretary, at 281.470.5019.
+ This year’s debt rate $0.182076/$100
NOTICE OF PUBLIC HEARING
= This year’s total rollback rate $1.018404/$100
Notice is hereby given that the City Council of the City of La Porte will hold a Public
Hearing on the 14th day of September 2015, in the Council Chambers of the City Hall, 604
Statement of Increase/Decrease
West Fairmont Parkway, La Porte, Texas, beginning at 6:00 P.M. The purpose of this hear
If City of Morgan’s Point adopts a 2015 tax rate equal to the effective tax
-
ing is to provide citizens the opportunity to comment on the overall budget.
rate of $0.857593 per $100 of value, taxes would increase compared to 2014
taxes by $6,582.
This budget will raise more total property taxes than last year’s bud
-
get by $1,209,600.00, or 7.08%; and of that amount, $167,401.27 is tax
Schedule A - Unencumbered Fund Balance
revenue to be raised from new property added to the tax roll this year.
The following estimated balances will be left in the unit’s property tax ac
-
corresponding debt obligation.
30, 2015. Copies of the adopted budget will be available for public inspection and copying
Type of Property Tax Fund Balance
and the La Porte Community Library, 600 South Broadway, La Porte, Texas, during normal
General Fund 1,307,320
business hours. Copies will also be made available on the City’s website.
Debit Service Fund 154,108
CITY OF LA PORTE
Schedule B - 2015 Debt Service
The unit plans to pay the following amounts for long-term debts that are
Patrice Fogarty, TRMC, MMC
secured by property taxes. These amounts will be paid from property tax
City Secretary
revenues (or additional sales tax revenues, if applicable).
Interest
Principal Other
NOTICE OF PUBLIC HEARING
Total
Description of Debtto be Paid
or Contract Amounts
Payment
LA PORTE DEVELOPMENT CORPORATION BOARD (TYPE B BOARD)
from
Payment to to be Paid
Property
be Paid from
Notice is hereby given that the La Porte Development Corporation Board (Type B Board)
Taxes
of the City of La Porte, Texas will conduct a public hearing at on the
5:00 p.m.11th day Property Taxes
in the Council Chambers at City Hall, 604 West Fairmont Parkway,
of November, 2015,
La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed
project by the La Porte Development Corporation in an amount not to exceed $400,000.00,
Obligation
to promote and develop a new and expanded business enterprise, through site improve
-
ments and other related improvements for infrastructure at the former Texas Parks & Wild
-
Obligation
life building located at 102 E. Main Street and 105 San Jacinto Street, La Porte, TX 77571.
Persons wishing to address the Board pro or con shall be required to sign in before the meet
-
Obligation
ing is convened.
CITY OF LA PORTE
$329,717
Total required for 2015 debt service
$0
- Amount (if any) paid from Schedule A
Patrice Fogarty, TRMC
City Secretary
$0
- Amount (if any) paid from other resources
$0
- Excess collections last year
A quorum of City Council members may be present and participate in discussions during this meeting,
$329,717
however, no action will be taken by Council.= Total to be paid from taxes in 2015
+ Amount added in anticipation that the unit will
This facility has disability accommodations available. Requests for accommodations or interpretive
services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s
$0
collect only 100.00% of its taxes in 2015
$329,717
= Total debt levy
This notice contains a summary of actual effective and rollback tax rates’
NOTICE OF PUBLIC HEARING
calculations. You can inspect a copy of the full calculations at 604 West
LA PORTE DEVELOPMENT CORPORATION BOARD (TYPE B BOARD)
Fairmont Parkway, La Porte, Texas 77571.
Name of person preparing this notice: Katherine R Powell
Notice is hereby given that the La Porte Development Corporation Board (Type B Board)
Notice is hereby given that the La Porte Development Corporation Board (Type B Board)
of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m. on the 11th day
Title: Revenue Manager
of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m.11th day
of November, 2015, in the Council Chambers at City Hall, 604 West Fairmont Parkway,
Date Prepared: 08/27/2015
of November, 2015, in the Council Chambers at City Hall, 604 West Fairmont Parkway,
La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed
La Porte, Texas. The purpose of the public hearing is to receive public input on a proposed
project by the La Porte Development Corporation in an amount not to exceed $250,000.00,
project by the La Porte Development Corporation in an amount not to exceed $250,000.00,
to promote and develop an expanded business enterprise, through site improvements and
to promote and develop an expanded business enterprise, through site improvements and
other related improvements for infrastructure at property located at 1010 S. Broadway
other related improvements for infrastructure at property located at 1010 S. Broadway
Street, La Porte, TX 77571.
Persons wishing to address the Board pro or con shall be required to sign in before the meet
-
Persons wishing to address the Board pro or con shall be required to sign in before the meet
ing is convened.
CITY OF LA PORTE
Patrice Fogarty, TRMC
Patrice Fogarty, TRMC
City Secretary
Houston, TX 77024
A quorum of City Council members may be present and participate in discussions during this meeting,
A quorum of City Council members may be present and participate in discussions during this meeting,
however, no action will be taken by Council.
713-861-9453
This facility has disability accommodations available. Requests for accommodations or interpretive
This facility has disability accommodations available. Requests for accommodations or interpretive
wildlifecenteroftexas.org
services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s
services at meetings should be made 48 hours prior to the meeting. Please contact the City Secretary’s
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
January 11, 2016January 11, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Source of Funds:Source of Funds:
Scott D. LivingstonScott D. Livingston
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. LPDC's amended By LPDC's amended By--LawsLaws--February 9, 2015February 9, 2015
2. City Council's Approval of LPDC Amended City Council's Approval of LPDC Amended
By-LawsLaws
3. Purchasing Policy Manual Purchasing Policy Manual
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
ED Board member Randy Woodard has proposed that the ED Board may wish to consider petitioning the ED Board member Randy Woodard has proposed that the ED Board may wish to consider petitioning
the
La Porte City Council to amend the corporationLa Porte City Council to amend the corporations bys by--laws. The latest version of the corporationlaws. The latest version of the corporations
bys by--laws, which laws, which
were revised in Feb. 2015 and approved by the City Council in March 2015 are enclosed. were revised in Feb. 2015 and approved by the City Council in March 2015 are enclosed.
As the ED Board considers petitioning the City Council to increase its limit for authorized expenditures, please As the ED Board considers petitioning the City Council to increase its
limit for authorized expenditures, please
consider that the figure of consider that the figure of is significant for several reasons: is significant for several reasons:
$50,000$50,000
1.The ED BoardThe ED Boards sales tax revenue for its full first year in 1999s sales tax revenue for its full first year in 1999--2000 was 2000 was . Our projected . Our projected
$755,735.75$755,735.75
revenues this year, according to the latest financial report, are expected to be revenues this year, according to the latest financial report, are expected to be , which is , which is
$2,434,375$2,434,3753.223.22
times greater than times greater than . 3.22 times $15,000 is . 3.22 times $15,000 is ..
$755,735.75$755,735.75$48,300$48,300
1.In order to shorten and simplify the approval process for enhancement grant projects, the ED Board may In order to shorten and simplify the approval process for enhancement grant projects,
the ED Board may
wish to consider petitioning the City Council to increase its authorized limit for all qualifying projects of the wish to consider petitioning the City Council to increase its authorized
limit for all qualifying projects of the
revised LPEGP from $25,000 to revised LPEGP from $25,000 to . Note: On 11 November 2015 the ED Board voted to increase . Note: On 11 November 2015 the ED Board voted to increase
$50,000$50,000
the Boardthe Boards contribution for each qualifying project in the La Porte Enhancement Grant Program (LPEGP) s contribution for each qualifying project in the La Porte Enhancement
Grant Program (LPEGP)
from $25,000 to from $25,000 to . Currently, enhancement grant projects up to $25,000 may be approved by the . Currently, enhancement grant projects up to $25,000 may be approved by
the
$50,000$50,000
ED Board without additional approval of the City Council. However, all enhancement grant projects for ED Board without additional approval of the City Council. However, all enhancement
grant projects for
sums greater than $25,000 must also be approved by the City Council. sums greater than $25,000 must also be approved by the City Council.
1.The CityThe Citys Purchasing Policy authorizes every department of the City to spend up to $49,999.99, per the s Purchasing Policy authorizes every department of the City to spend
up to $49,999.99, per the
conditions and requirements outlined in the same policy, toward budgeted expenses without additional City conditions and requirements outlined in the same policy, toward budgeted expenses
without additional City
Council approval. All expenses of $50,000 or more require additional City Council approval. While the ED Council approval. All expenses of $50,000 or more require additional City
Council approval. While the ED
Board has voluntarily elected to follow many sections of the CityBoard has voluntarily elected to follow many sections of the Citys Purchasing Policy, it is not required to s Purchasing
Policy, it is not required to
do so by state law.do so by state law.
Therefore, if the ED Board were to consider amending the corporationTherefore, if the ED Board were to consider amending the corporations current bylaws to increase its authorized
s current bylaws to increase its authorized
limit of expenditures, staff recommends the following changes: limit of expenditures, staff recommends the following changes:
5.04 The Board of Directors shall obtain prior City Council approval of all 5.04 The Board of Directors shall obtain prior City Council approval of all
real estate acquisitions, real estate leases exceeding one year and/or any real estate acquisitions, real estate leases exceeding one year and/or any
other leases exceeding one year; all bond issues or other debt extending other leases exceeding one year; all bond issues or other debt extending
beyond one year; and, contracts, expenditures, or debts beyond one year; and, contracts, expenditures, or debts
of $50,000.00of $50,000.00
. The Board of Directors shall have the authority to enter . The Board of Directors shall have the authority to enter
or more
into all other budgeted transactions without prior or additional City Council into all other budgeted transactions without prior or additional City Council
approval. Notwithstanding the foregoing, the Board of Directors shall have approval. Notwithstanding the foregoing, the Board of Directors shall have
the authority to approve all budgeted Enhancement Grant expenditures the authority to approve all budgeted Enhancement Grant expenditures
for an amount equal to or less than for an amount equal to or less than , without additional , without additional
$50,000.00$50,000.00
approval of City Council. Amendments to the Corporationapproval of City Council. Amendments to the Corporations budget must s budget must
be approved by the City Council.be approved by the City Council.
Please note that all amendments to the corporationPlease note that all amendments to the corporationPlease note that all amendments to the corporationPlease note that all amendments
to the corporations bys bys bys by----laws that the ED Board votes to approve must also be laws that the ED Board votes to approve must also be laws that the ED Board votes to approve
must also be laws that the ED Board votes to approve must also be
approved by the City Council.approved by the City Council.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Consider approval or other action to adopt amendments to the ByConsider approval or other action to adopt amendments to the By--Laws of the La Porte Development Corporation Laws of the
La Porte Development Corporation
and forward proposed amendments to the corporation's byand forward proposed amendments to the corporation's by--laws to the City Council for consideration laws to the City Council for
consideration -- S. S.
Livingston
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
PURCHASINGPOLICYMANUAL
PURCHASINGPOLICYMANUAL
Established 1892
October2013
TABLE OF CONTENTS
INTRODUCTION.................................................................................................................3
GENERAL ETHICAL STANDARDS....................................................................................4
PROCUREMENT ................................................................................................................5
Thresholds................................................................................................................6
Methods....................................................................................................................7
Types of Purchase Orders........................................................................................8
SolicitationRequirements.......................................................................................10
Types of Solicitations..............................................................................................12
Exempt Purchasing.................................................................................................15
CONTRACT ADMINISTRATION.......................................................................................16
DISPOSAL OF SURPLUS ITEMS.....................................................................................17
DEFINITIONS....................................................................................................................19
2
INTRODUCTION
Purchasing is a division of the City of La Porte Finance Department and is responsible for
the process of acquiring goods and servicesnecessary to provide the public with certain
services.
The Purchasing Division provides centralized procurement and all purchasing activities are
governed by this Purchasing Policy Manual. The Purchasing Division assists each
department, division and their staff to secure the best material, services, and equipment in
the most efficient and economical manner.Furthermore, the division is responsible for
sale and/or disposal of city surplus.
City purchasing policy and procedures comply with local, state and federal codes,
ordinances, and statutes. The statutes that govern public procurement and cited
throughout the document are Texas Local Government Codes (TX LGC) 252 and 271.In
the event of conflict, the appropriate statute or ordinance will prevail. The Purchasing
Division functions in a manner that is consistent with codes, ordinances, statutes, and
sound business practices.
The purpose of this policy manual is to provide for the fair and equitable treatment of all
persons involved in public purchasing by the City, to maximize the purchasing value of
public funds in procurement, and to provide safeguards for maintaining a procurement
system of quality and integrity.
This manual applies to the procurement of supplies, services, and equipment, entered into
by the City, irrespective of the source of the funds.
The City of La Porte does not discriminate against individuals, companies, or awarding of
bids with respect to race, color, national origin, sex, age, disability, orreligion.
This policy manual supersedes any and all previous purchasing policy manuals approved
or utilized by the City of La Porte and becomes effective October2013.
3
GENERAL ETHICAL STANDARDS
STATEMENT OF POLICY
City of La Porte employees shall conduct all procurement on the basis of the best benefit
to the City and that best promotes the interest of the citizens of La Porte. Unrestricted
competition on every type of procurement is encouraged, which ensuresthe taxpayers the
best possible return oneach dollar. All contracts and purchases shall be handled to
ensure the best value for the City, with solicitations obtained whenever practical.
Ethics:
To achieve the purpose of this section, it is essential that those doing business
with the City also observe the ethical standards prescribed here.It shall be a breach of
ethics:
To attempt to realize personal gain through public employment with the City,
other than the employees normal duties
For any employee to participate directly or indirectlyin procurement when the
employee knows that heor any member of the employee’s immediate family(or
associated business or organization)has a financial interest pertaining to the
procurement
Noemployee of the City shallsolicit, demand, accept or agreeto accept from
another personor business, a gratuity or an offer of employment in connection to
any solicitation pendingor make available information not provided to all potential
respondents
For any employee or former employee of the City to knowinglyuse confidential
information for actual or anticipated personal gain
Solicit or accept anything of value from an actual or potential vendor with the
exception of promotional items of negligible value, in the form of note pads, pens,
calendars, etc., which may be accepted and used in normal City business
operations.
Appointed Official/Employee:
As stated in the City of La Porte Charter §Article VIII,
Section 8.02:
“No member of City Council or any officer or employee of the City shall have a financial
interest, direct or indirect or by reason of ownership of stock in any corporation, in any
contract or in the sale to the City, or to a contractor supplying the City, of any lands or
rights of interests in any land, material, supplies or service. Any willful violation of this
section shall constitute malfeasance in office, and any officer or employee of the City
found guilty thereof shall there byforfeit his office or position. Any violation of this section
with the knowledge expressed or implied of the person or corporation contracting with the
City shall render the contract voidable by Council.”
Under Texas law, an individual is automatically removed from his or her position if that
person is finally convicted of failing to comply with the competitive bidding or
competitive proposal procedures required by TX LGC § 252.063.
4
PROCUREMENT
The Purchasing Division has the authority and responsibility of centralized procurement for
the City of La Porte. Employees are provided authority to procure goods and services
under$2,000 with petty cash, check requisitions, and procurement cards, as described
under Procurement Methods, further in this section. Allother procurement must be
processed through a Purchase Requisition with authorized approval throughthe
Purchasing Division and ordered onlyby a numbered Purchase Order. Employees do not
have the authority to obligate City funds and maybe held accountable for unauthorized
purchases, includingdisciplinary action up to and including terminationas stated inthe
Employee Policies Handbook, 3.04 Violations of Policies/Acts of Misconduct:
“Employees may be disciplined or terminated for misconduct dependent on the severity,
including but not limited to:
1.Violation of any City or department rule, regulation, policy, or procedure”
The goals of theCity’s Purchasing Division include the following:
Timely purchasing of quality goods and services;
Obtaining the best possible prices for goods and services;
Encourage and promote inter-local cooperation amount area agencies;
Utilize cooperative purchasing programs as allowed;
Provide guidance to the individual departments regarding proper purchasing
practices, procedures and processes.
Vendor Relations:
Purchasing staff actsas the liaison between the City and vendors
Purchasing staff should be the first contact for vendors. New vendors should be
directed to Purchasing for information on how to do business with the city.
Purchasing will meet with vendors upon request and forward any pertinent
information to the appropriate end-users
All vendors must be afforded equal opportunity to compete, provided the same
information, and treated fairly
End-users should coordinate meetings with vendors through Purchasing staff
All correspondence with vendors shall be through the Purchasing Division
Any solicitation or item under consideration for purchase shall not be discussed or
price revealed until a purchase order or contract has been awarded
5
PROCUREMENT THRESHOLDS
$0 to $1,999.99–Primary source of procurement is city-issued procurement card
(p-card). If selected vendor does not accept p-cards, a check requisition may be
used for expenditures up to $99.99. Expenditures $100.00and above should be
procured using a purchase requisitionif a vendor does not allow use of the p-card.
$2,000.00to $24,999.99–Requires a minimum of three(3)written quotesbe
obtained by the department or through purchasing, utilizing standardized quote
forms.End-users should issue a purchase requisition and attach the quotes to the
requisition.At least one (1) quote should be from a minority vendor or historically
underutilized vendor (HUB), if available.
$25,000.00 to $49,999.99 –Requires Purchasing create an informal solicitation to
send to potential bidders. Once awarded, end-users shallissue a purchase
requisition and reference the informal solicitation number.
$50,000 and above –Requires all state statues listed in the TX LGC Sections 252
and 271 be followed, including priorapproval by La Porte City Council. This is
supported by Ordinance No. 2004-2736-A. Legal statutes and ramifications as
provided in Texas Local Government Code (TX LGC) and Texas Penal Code:
If a city enters into a contract without complying with the requirements of Chapter 252,
the contract is void.
Attempts to circumvent purchasing policies and limits by dividing purchases into multiple
separate invoices or payments will not be tolerated and is subject to disciplinary and/or
legal actions.
If a person fails to comply with the competitive bidding or competitive proposal
procedures required by Local Government Code Chapter 252, that person may be
convicted of a Class B misdemeanor;TX. LGC §252.062.This includes a situation in
which a person makes or authorizes separate, sequential, or component purchases in
an attempt to avoid competitive bidding requirements. A Class B misdemeanor may be
punished by a fine of up to $2,000, confinement in jail for up to 180 days, or both the
fine and confinement. TX PenalCode§12.22
Except as otherwise provided, acquisition of goods and services $2,000 and above
shall be made only by anapproved, numbered Purchase Order issued by the
Purchasing Division, to placement of order. No purchase shall be made
prior
without proper approvals and compliance with procurement thresholds.
Regardless of the dollar amount, procurement decisions will be based on all or a
combination of the following factors:
Responsible bidder
Price
Delivery time, if applicable
Quality
Life cycle cost
6
Past history of vendor performance
Applicability
Consultation with end-user department
Conformance to applicable regulations
METHODS OF PROCUREMENT
The Finance Department accepts several methods of procuring goods and services for the
City. Each method must be approved by authorized personnel, based upon approval
forms. It is understood that the City Manager and Assistant City Manager shall be
authorized to sign for all departments.
Petty Cash:
Purchases below $100 may be made by authorized employees with
approval from the Department Director, from petty cash, after completing a petty cash form
Check Requisitions:
Check requisitions may only be used for payment of the following:
Registration and Travel
Memberships and Subscriptions
Books, Videos and Tapes under $100.00
Utility Payments
Petty Cash and Drawer Funds
Reimbursements
All tangible items that you are purchasing, contractor payments, etc., should be paid
either on a Purchase Order or through the P-Card system. All departments must
adhere to this policy to be in compliance with our external auditor’s directive.
Exceptions –If the item that you are purchasing is under $100.00, and the vendor does
not accept a P-Card, you may then use a Check Requisition –but this must be noted on
the Check Requisition for Accounting to process the payment.
Procurement Cards (P-Cards):
Preferred for payment method of the following:
Travel arrangements
Small dollar purchases
Over the counter expenditures
Internet purchases
Emergencies
Contract items (with Purchasing approval)
Purchase Requisition(PR):A Purchase Requisition shall be prepared for all
purchases unless a Procurement Card is used or the purchase meets one of the
conditions listed under Check Requisition. The PR shall originate in the user
department and shall be entered into Sungard’s/Purchasing/Inventory Application.
Preparation must be done far enough ahead of the date the goods /services are
needed to allow normal purchasing procedures to prevail.
When entering a Requisition; make sure toinclude:
Detailed descriptions toallow staff and the vendor to know exactly what is being
procured
7
A separate line item for freight or state “freight included” in the Comments
Separate line item for trade-ins or deductions
Attach quotes on City Quote Form for expenditures between $2,000and $25,000 or
state in the Comments the reason why quotes were not obtained. No quotes,
quotes not submitted on City forms,or no comments will delay the PO process
If applicable, in Comments,state the Solicitation number and if approvedby
Council anddateawarded
Attach or provide any agreements or contracts concerning this procurement
Purchasing will sendthe PO to the vendor and end-user as standard procedure
unless instructions to do otherwise are included in the commentson the requisition.
Change orders should be entered as a requisition; however, the request must
comply with all change order rules and the original PO # stated in comments on the
requisition.
Requisitions shall be approved online by authorized department personnel. Notify
Purchasing if online approval is not possible.
Purchase Orders (PO):
Issued by purchasing staffupon receipt of a completed,
approved, purchase requisition (PR)with proper back up.
Once the PO is processed,purchasingstaff will issue a copy of the PO to the awarded
vendor and end-user. When the goods are delivered, City staff should ensure the product
matches the order and is delivered in good condition. Damaged merchandise should be
returned to the vendor for replacement or credit. Staff should also review and make
certain all aspects of the service orders were completed satisfactorily and according to the
quote and/or contract.
After the end-user has determined the vendor has successfully provided the goods or
service, a Receiving Report (RR) must be completedin order for Accounts Payable to
have the authority to pay for the goods and services. If the goods are not excepted or
returned or canceled, contact Purchasing to adjust the PO.
TYPES OF PURCHASE ORDERS
Regular Purchase Orders:
Most POs are issued for specific items or known quantities
and prices. The quantity may be one or greater and the unit cost reflected; however, in
some cases, the quantitymay be one and the amount a lump sum. Regular POs are
issued a six-digit number with the firsttwo digits being the fiscal year(140001).
Inverted Purchase Orders:
Inverted POsencumber budgeted funds; however, the dollar
amount is placed as the quantity and the unit price is one dollar ($1.00) and payment
made based on the dollar amount owed. Inverted POsare used only when:
The unit price is not known
Multiple items are orderedand itemization is not feasible
Reoccurring charges and payment amounts differ
Receipts are made by dollar amount and may include multiple Receiving Reports.
8
Contract Purchase Orders:
POs issued for items that have gone to Council and may be
itemized or inverted, if necessary. These numbers are distinguished with a “C” before the
number(C14001).
CIP Purchase Orders:
POs issued for capital expenditure account numbers. These
numbers are issued with a “P” in front of the number (P14001) and may be used for
multiple years until the project is complete.
Annual Purchase Orders:
POs issuedwith an “A” (A14001)for annual contracts and
should be requested by the end-user at the start of the contract term and at the beginning
of the fiscal year. Annual contracts may begin in any month and run for a period of one (1)
year or more; however, the PO is only valid for the current fiscal year. Example: An
annual contract is awarded in March a period of one (1) year with a one-year renewable
option. A PO is issued in March and valid until September; the end-user must request a
PO in October until February. If the contract is renewed, a new PO will be issued as a
renewaluntil September.
Blanket/Open Purchase Orders:
The general purpose of blanket or open purchase
order is to provide a means of payment for unknown quantities or pricing, multiple
departments that use the same service, and/or often-used vendors that do not take p-
cards. Blanket/open POs (B14001) are not encumbered until the items are received by the
department. Blanket orders shall only be authorized in instances where a p-card payment
is not possible. P-cards are the preferred method of payment.
Emergency PurchaseOrders:
Emergency purchases may be made for items costing
more than $2,000 and less than $50,000 without being subjected to the competitive
quotes. A properly executed requisition and a signed statement from the Department
Director certifying that an emergency exists must be submitted to the Purchasing Division.
The Purchasing Division shall attempt to secure more than one quote if time and/or
.If the emergency procurement occurs during normal
circumstance will allow
business hours, a purchase order must be issued or a p-card transactions
authorized through the purchasing division. If the emergency procurement is
required outside of normal office hours, the proper paperwork shall be submitted to
Purchasing by noon the following business daywhereby Purchasing will either
authorize a p-card transaction orissue a purchase order to conclude the emergency
purchasing activity. In the case of natural disasters, P-card limits may be increased
and temporarily allow p-card transactions over $2,000.
Emergency purchases exceeding $50,000 shall require a signed statement from the
Department Director certifying that an emergency exists and approval of the City Manager
or Assistant City Manager. The department director shall submit an agenda item to
request approval by City Council at the next regularly scheduled Council meeting. Nothing
herein shall prevent the emergency purchase to be made prior to the next Council
meeting.
Change Orders:
TX LCG §252.048 states a change order necessary after work has
begun or the quantity increases or decreases, the total contract price may not be
increased by more than 25% of the original contract price and the contractor or vendor
9
must consent to a decrease over 25%. City Council must approve all change orders
$50,000 and above and may grant authority to an administrative official to approve
changes below $50,000. All change orders must be within budget or additional funds must
be requested, prior to PO processing.
SOLICITATIONS
SOLICITATIONREQUIREMENTS
City policy requires competitive solicitations on any procurement over $2,000; however,
the process may be accomplished with various methods:
Quotes/Informal Solicitations –Between $2,000 and $50,000
Formal Bids
Requests for Qualifications
Requests forProposal
Annual Solicitations
Cooperative Purchasing Agencies
Available Funds:
Before Purchasing staff will begin any type of solicitation, funds for the
goods or services must be available and approved in the annual budget. The approved
estimated budget will drive the type of solicitation to be used. All funding listed at or near
$50,000 will require a formal bid process.
Contractor Qualifications:
Per the City of La Porte, Code of Ordinances Chapter 2-
Administration/Public Works Contracts Section2-106, qualificationrequirement ofthe
apparentlow bidder for contracts above one (1) million but less thantwo(2) million submit
reviewed financial statements that are performed by an independent certified public
accountant. Contracts which are abovetwo (2) million require the apparent low bidder
submit audited financial statements by an independent certified public accountant.
Bonds:
The Government Code mandates that a municipality contracting forapublic work
in excess of $50,000 shall require its contractor to execute a payment bond. The
Government code also mandates that a municipality contracting for public work in excess
of $100,000 shall require its contractor to execute a performance bond. Both the payment
and performance bonds must be written for the total contract value. The city may also
chose to require a vendor include a bid bond with their bid to ensure the successful bidder
executes contract documents and proceeds with performance.
Grants/Federal Funds:must
End-users notify Purchasing staff that a grant or federal
funds are used priorto the solicitation process. Grants and federal funds mandate several
requirements above and beyond City policies and specific wording must be added to
solicitations. The requirementsmayinclude, but are not limited to:
The complete Notice to Bidders must be published for the advertisement and
posted to the website
10
Vendor enrollment in E-Verify and verification of employee eligibility to work on
federal contracts. This requirement flows down to all subcontractors with
subcontracts in excess of $3,000.
Compliance withthe Davis-Bacon Act
Verification the awarded vendor is not excluded from federal contracts by searching
the Excluded Parties List System (EPLS) website
Documented Workers:
Regardless of the solicitation method used, theCity mandates all
expenditures involving manpower include the Protection of Resident Workers Compliance
Form.
Quotes or Informal Bids:
Three (3) written quotes are required for procurement of goods
or services from $2,000 to $49,999.99. Departments shalluse the quote form found under
Forms/Purchasing in the CWShare Drive for solicitations under $25,000. Specifications
for purchases over $25,000 should be submitted to the Purchasing office and staff will
send out the required solicitation.
Historically Underutilized Business:
Texas Local Government Code 252 requires a city,
in making an expenditure of more than $3,000 but less than $50,000, to contact at least
two HUBs on a rotating basis, based on informationprovided by the Texas
Comptroller’s Office pursuant to Chapter 2161 of the Government Code
(http://cpa.state.tx.us/procurement/prog/hub/). If the list fails to identify a HUB in the
county in which the city is located, the city is exempt.TX LGC §252.0215
To research HUBs and comply with this section, visit
http://www.window.state.tx.us/procurement/cmbl/cmblhub.html.Print the list of vendors or
message that states no vendors were found for your records and attach to the requisition.
Formal/CompetitiveBid
Any City department requiring a purchase which involves the
expenditure of $50,000 or over, shall be required to obtain competitive sealed bids or
proposals. The following procedures shall be followed to facilitate the bidding process.All
.
competitive bids must go through the Purchasing DepartmentSpecifications should be
submitted to the Purchasing office to allow a minimum of eight (8) weeks until award.
For general procurement of goods or services, a contract must be awarded to: (a) the
lowest responsible bidder, or (b) the bidder who provides goods or services at the “best
value.” TX. LGC§252.043
When determining “best value,” the City may consider factors other than the
purchase price of the goods and services, including among other things:
Thereputation of the bidder and the bidder’s goods or services
The quality of the bidder’s goods or services
The bidder’s past relationship with the City; and/or
Any other lawful criteria
11
The City must indicate in the bid specifications and requirements that the contract
will be awarded either to the lowest responsible bidder or to the bidder who provides
goods or services at the “best value” for the City.
1.The requesting department for which the items are budgeted will be responsible for
preparing and/or assisting Purchasing in the development of specifications and/or
any required scope of services.
2.The requestingdivision must approve the final specifications and/or scope of
services prior to formal bidding.
3.Purchasing assigns the bid or proposal package a number which will be included in
the title of the bid or proposals.
4.In conjunction with the requesting division, Purchasing will establish the schedule of
events including advertisement dates, pre-bid conference, bid opening date and
time.
5.Invitations to Bid (ITB), or Request for Proposals (RFP) and Request of
Qualifications (RFQ) must be advertised in a local newspaper. Purchasing will
publish and distribute bid/proposals as required by State law. Purchasing will also
publish any addendums during the formal competitive process.
6.If a pre-bid meeting is scheduled, Purchasing staff will be present at the meeting to
help facilitate; however, departmental staff must be present to explain the scope of
services and answer questions.
7.Purchasing will receive all bids and proposals and place them in a secure area until
the date and time of the opening. All formal openings will be conducted by the
Purchasing Manager or his designee and will take place at City Hall. The
department may have a representative present to assist in the bid opening.
8.Purchasing will prepare a tabulation for each item or group of items following the
bid opening and will consult with each department involved to arrive at a mutual
agreement for recommendation.
9.If the expenditure involves any federal funds, before the award the vendor and any
subcontractors must be verified on the Excluded Parties List System. Purchasing
will perform the function.
10.Any expenditure over $50,000 must be approved by City Council. Purchasing will
assist in the agenda item;the responsible department will place and present the
item for recommendation for City Council approval. Agenda items should be sent to
Purchasing for review before placing item on the agenda.
11.Upon approval by the City Council, Purchasing will be responsible for the signatory
ofany contracts and obtaining payment and performance bonds and proper proof
of insurance.
12.After execution and review of contract, the responsible department will issue the
notice to proceed and coordinate the start of work with contractor.
Formal Bids for Construction(In-house):
All rules apply as mentioned above with the
following exceptions:
1.Bid documents too large to send electronically, must be provided on CDs or
flash drives for purchasingstaff to make available to the potential bidders. It
is preferred the CD or flash drive contain one (1) pdf document with the
specifications and drawings/plans; however two (2) files, one (1) for
specifications and one (1) for drawings and/or plans will be accepted.
12
Formal Bids for Construction (Consultant):
All rules apply as mentioned above with
the following exceptions:
1.The consultant shall provide electronic documents to the Purchasing office
2.The consultant shall send out the Notice to Bidder and provide electronic documents
either through CD or ftp site at no charge to potential bidders. A listing of all vendors
that request the solicitation shall be provided to Purchasing at the time of opening.
3.The consultant shall create and verify a bid tabulation and may be required to assist
in the evaluation process with the City
4.Purchasing shall facilitate and/or participate in at least one (1) preliminary meeting
with the end-user and consultant. More meetings may be mandated if the consultant is
preparing solicitation documents for the City.Purchasing shouldreceive and review
solicitation documentsat least one (1) week prior to submitting the advertisement to
the paper for publication.
Requests for Qualifications (RFQ):
Texas law specifically exempts contracts for
professional services from the competitive bidding requirements. TX LGC
§252.022(a)(4): “a procurementfor personal, professional, or planning services”.
A cityisprohibited under state law from obtaining certain professional services through
competitive biddingsuch as the services of: certified public accountant; architect; land
surveyor; physician, surgeon, or optometrist; planner or professional engineer; state
certified or stated licensed real estate appraiser; or registered nurse.”
The Texas Attorney General has provided an opinion as follows:
Professional services have been described as those services which are: mainly
mental or intellectual rather than physical or manual
Those disciplines requiring special knowledge or attainment and a high order of
learning, skill, and intelligence
Op. Tex. Att’y Gen. Nos. JM-1038 (1989); JM-940 (1988); MW-344 (1981)
Although competitive bids shallnot be obtained, neither the law nor Attorney General
Opinions prohibit the City from soliciting qualifications from professional service
providers and evaluating the responses to determine the top-rated firm. The City
utilizes aRequest for Qualifications (RFQ) to obtain qualifications and experience for
professional servicefirms.Since this solicitation is based only on the qualifications of the
respondent; price is not requested or considered.
The end-user submits information to Purchasing staff detailing the project and list of
qualifications. Purchasing will follow the same procedures as above; however the timeline
may need to be extended to allow meetings between the committee and top-rated firm(s).
Formal RFQ solicitations will not be opened publicly, only the names of the respondents
areread aloud.
13
A minimum of three (3) City staff members shallcomprisean evaluation committee to
review and evaluate the returned responses, based on the requirementsspecified within
the RFQ. The committee selects the top-rated firm and meets with themto discuss the
project and negotiate a firm price. If a price cannot be agreed upon, the negotiations will
terminateand the next top-rated firm will be contacted and negotiations proceed. At no
point, may the first firm be re-considered. The process continues until the City and a firm
reaches an agreement.
Once the City determines and contracts with the top-rated firmfor a particular service,
that same entity may be hired for like projects; however, once a contract has
terminated, it is advisable to issue new solicitationsfor qualificationsperiodically to
ensure the best vendor is performing the right services for the City.
If an agreement is reached, the City Manager may award if under $50,000; if $50,000 or
The City Manager or Assistant City Manager
above, City Council approval is required.
must approve all new agreements over $5,000.
Requests for Proposal (RFP):
This type of solicitation is used for services not described
in Texas Government Code, Chapter 2254, Subchapter A –Professional Services, high
technology projects, and in complex projects best procured through this process. The
process is very similar to the method described for Request for Qualifications, with the
following exceptions:
The proposal must include price as part of the evaluation criteria; however, the
percentage shall not exceed 50%of the total evaluation criteria.
The evaluation committee must score according to the percentages ofthe criteria
stated in the solicitation.
Purchasing will total all evaluation scores and compile one final score sheet.
The committee may chose to interview the top rated firms.
After the interviews, firms are allowed the opportunity to submit a “best and final
offer” (BAFO) and the committee may once again score the firms to select thefirm
that best meets the need of the City
Annual Solicitations:
Annual contracts that extend for a period of one (1) or more years
may be obtained through quotes,formal bids, or request for proposals.Annual
solicitations must include a term, including the start and termination date and a specific
number of years. Annuals may include additionaloption years for renewal upon consent
of both parties. Option yearsshould be renewed with the exact same terms as the original
award, if possible. Exceptions may includedocumented and verifiedfederal wage
increases, manufacturing product increases, or circumstances beyond the vendor’s
control. All renewals shall be processed and issued by the Purchasing Division with prior
consent of the end-user department.
14
Any commodity that is purchased through-out the year and exceeds $25,000 should be
considered an annual contractand awarded through the Purchasing office with the
appropriate solicitation method.
Whenexpenditures exceed $50,000 and require Councilapproval, the agenda item shall
contain the following items:
Term and option yearsrenewals, if any
Annual Budget
Amount of the recommended bid
Not-to-exceed annual dollar amount to be spent, if less than total of recommended
bid
Annual contracts should provide good estimated quantities based on the prior year and
include an allowance for unforeseen circumstances.
Be aware that any increase or decrease to an annual contract must complywith the rules
pertaining to change orders.
EXEMPTPURCHASES
Exemptions from competitive solicitations are specific exceptions that relieve the City of
the need to bid or seek proposals of an item or service.
Emergency Purchases
: An emergency purchase is defined as follows: TX LGC §252.022
A procurement made because of public calamity that requires the immediate
appropriation of money to relieve the necessity of the municipality’s residents or to
preserve the property of the municipality; or,A procurement necessary to preserve
or protect the public health or safety of the municipality’s residents; or,
Procurement necessary because of unforeseen damage to public machinery,
equipment, or other property.
Sole Source
: Procurement of items available from only one source. Two (2) forms of
documentation are required prior to the issuance of a purchase order for sole source
items:
Memo from the department director stating why this particular product is the only
one that may be considered, and
Letter from the manufacturer stating they are the only maker of this productand
sole supplier. If available through a single distributor, the manufacturer must
specify the supplier and why. Examples may include territories, marketing
assignments, etc.
Proprietary Source:
Procurement is only available from one source due to the fact that it
must be compatible with another item. Example:parts for a John Deere tractor
Cooperative Purchasing Agencies:
An agency that follows all rules and regulations of
competitive solicitation requirements to obtain pricing for specific items and/or services.
Although departments are encouraged to research and use these agencies, purchasing
staff should be notified of the intent to procure items through this method and review
required documents priorto Council award or the issuance of a Purchase Requisition.
POs will be distributed by the Purchasing office and must be sent to the vendor andthe
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cooperative agency for the order to be valid.The City recognizes andhas agreements or
memberships with the cooperative agencies listed below; however the list is not all
inclusive and other agencies may be utilized.
Houston Galveston Area Council (H-GAC)
State of Texas
BuyBoard
U.S. Communities
Piggy-Back Purchases:
When procurement is obtained through an interlocal agreement
with another city or public entity by utilizing their competitive solicitation. The solicitation
must contain wording that other entities may be allowed to enter into agreements with the
awarded vendor. Both the inter-localagreementand specific expenditure, if $50,000 or
above,must be approved by Council.
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CONTRACT ADMINISTRATION
Purchasing Staffis assigned the undertaking of contract administration of all City contracts
and work withthe vendors as the liaison;however, departmental assistance is essential for
the completion of these tasks. Purchasing responsibilities include:
Provide administration allcity-wide contracts, for example, janitorial services, office
supplies, etc.
End-users must notify Purchasing staff of any issues regarding city-wide
contracts
Feedback on any type of annual or term contract is imperative to ensure
specifications and expectations are met
Vendors must be allowed the opportunity to remedy any issue
Maintain a centralized list of all written contracts/agreements
End-users shallforward all contracts/agreements to the Purchasing Office
for inclusion on the centralized listif not originally handled by Purchasing
Staff.
Includes maintenance agreements for security systems, etc. that may be
better served by acity-wideannual contract
Monitor the centralized list to ensure maintenance contracts and/or term
contracts are renewed in a timely manner
Manage the preparation, approval process and execution of contract document
After a contract is awarded by CityCouncil,Purchasing will notify vendor of
award and initiates contract process
Purchasing will manage the contract execution process and will receive
performance and payment bonds (when applicable) and verify certificate of
insurance
Acts as primary liaison for the City with Counsel in the development and
review of contract documents
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DISPOSAL OF CITY SURPLUS
The Purchasing Division is responsible for the sale and/or proper disposal of surplus or
obsolete City property including vehicles, equipment, office furniture, or any other item that
is determined to be of no further use to the City. Each Department Director shall review
their department's assets each year and determine if any item should be soldthrough
auction or properly discarded.
Auction:
Purchasing works with a licensed auctioneer to conduct online auctions thought-
out the year as determined by need.
Purchasing staff will notify departments of an upcoming auction and a deadline to
submit a list of itemsfor auction.
Departments must provide a list with the following information:
Complete description
Condition of the item and any known defects
Pictures, if applicable, including front and side viewsof vehicles and
equipment
Storage location for bidder viewing
Completed VIS form for vehicles and equipment
A master list of all items will be compiled and sent to departments for review;
departments may request an item be removed from the auction list and transferred
to their department
Proper forms for fixed asset disposal must be completed and submittedto the
Accounting Division
Departments are responsible for storage of items until sold and picked up by the
successful bidder.
The Purchasing Manager may declare any item not sold or picked up to be of no
value and recommend disposal
Disposal:
Items that are broken and non-repairable and/or have no dollar value may be
properly disposed.Usable items shall not be discarded;employees shall not remove
discarded items from City property. The procedures below must be followed:
Purchasing staff must be notified
Items should be recycled, if possible
Proper forms for fixed asset transfermust be completed and submitted to the
Accounting Division
Proper disposal must be in compliancewith any laws and regulations
Contact IT to assist with disposal of hi-tech equipment as they use an outside
source to wipe the drives and provide certification of proper disposal
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Employee Ineligibility:
City employees are not allowed to bid on any item at City of
LaPorte auctions.
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DEFINITIONS
Addendum:
a written change to a Bid, Quote, RFQ, or RFP during the solicitation
process
Agreement:
a formal,written document between the City and vendor providing goods
or services, describing the scopeof work and term of the contract. Agreements
over $5000 must be signed by the City Manager or Assistant City Manager
Bid:
a formal written offer of a price by a vendor to the Cityto furnish specific goods
and/orservices in response to a solicitation
Bid Award:
an award of a bid for which funds have lawfully been appropriated by the
City Council
Bid Bond:
An insurance agreement in which a third party agrees to be liable to pay the
City a certain amount of money in the event the successful bidder does not
execute the contract documents, furnish required bonds or insurance, or proceed
with performance. The bid bond, naming the bidder as principal, is given to the
City at the time of bid.
Bid Deposit/Cashier’s Check:
a guaranteed check furnished in lieuof a bid bond at
the time of bid submittal.
Bidder’s List:
recommended or suggested vendors for a specific solicitation.
Capital Improvement Project(CIP):
any public improvement the Cityundertakes,
including the construction or reconstruction in whole or in part of any building,
road, highway,street improvements, physical plant, structure or facility necessary
in carrying out the functionsof the Citygovernment. It does not include any
routine maintenance, operation or repair ofexisting structures, buildings or real
property.
Change Order:
a modification, deletion or addition to an executed contract by means of
aformally executed document signed by both parties.A change order shall not
exceed 25% of the original contract.
Consultant Services:
An outside person or firm with education and experience in
specific area of proficiency to provide expert advice and/or perform technical
services requiring an elevated level of knowledge and skill. A Request for
Qualifications should be used to selectthe best professional within their field of
expertise. Once the City determines and contracts with the top-rated consultant
for a particular service, that same entity may be hired for like projects.
Construction:
the process of constructing a building, structure, road or drainage
utilities;altering, repairing, improving or demolishing any structure or building; or
other improvementsof any kind.
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Contract:
(a) a deliberate verbal or written agreement between two or more competent
parties toperform a specific act or acts; or (b) any type of agreement, regardless
of what itis called, for the procurement or disposal of goods, services or
construction, usually forexchange of goods or services for money or other
consideration.
Contractor:
any person havinga contract with theCity
Debarment:
the exclusion for cause of a vendor or contractor from bidding and/or
receivingacontract to do business with the City.Federal and/or grant funds
require a vendor search for debarment prior to award of contracts.
Demolition:
the removal or destruction of any structure or building and appurtenances
thereto,road or drainage utility.
Designee:
a duly authorized representative of a person.
Historically Underutilized Business (HUB) Program:
affirmative action program to
increasethe participation of disadvantaged or businesses normally used;
includes minority and women owned businesses.
Emergency Purchases:
procurement that is made in response to a requirement when
thedelayincident for complying with all governing rules, regulations and
procedures would bedetrimental to the health, safety and welfare of the City
and/or its citizens.
Employee:
a person employed by the Citywho is drawing a salary or wages directly
fromtheCity.
End-User Department/Division:
the department/division within the City government,
that requests and utilizes goods and/or services, procured according to the
Purchasing Procedures Manual.
Goods:
any tangible property other than services or real property.
Formal Bid:
the solicitation document that is used for competitive sealedbiddingfor
procurement of construction, goods and/or services and award is based on the
lowest responsible bid or best value for the City.
Item:
a separate single unit, article, product, material or service.
Payment Bond:
a form of security, required on contracts over $50,000, executed
subsequent to award by a successful bidder that guarantees the payment of
debts to persons furnishing services or materials on account of the contract work
and/or payment of other responsibilities of the contractor; provided prior to
contract execution.
Performance Bond:
a form of security, required on contracts over $100,000, executed
subsequent to award by a successful bidder that guarantees the proper
performance of the contract; provided prior to contract execution.
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Procurement/Purchase:
the buying, purchasing, renting, leasing or otherwise
acquiring of any goodsand/or services for public purposes in accordance with
the laws, rules, regulations andprocedures intended to providefor the economic
expenditure of public funds. It includes but isnot limited to all functions which
pertain to the obtaining of any supplies, materials, equipmentand/or services
including construction projects and Capital Improvement Projects, as defined
herein, required by any department/division or agency of the City government
regardless of thesource of funds.
Procurement Card (P-Card):
an instrument used to purchase goods/services in
accordance with established procedures.
Professional Services:
anycertified public accountant; architect; land surveyor;
physician, surgeon, or optometrist; state certified or stated licensed real estate
appraiser; or registered nurse as defined under TX LGC 252.
Proposal:
an executed formal document submitted by anofferor to the Citystating the
good(s) and/or service(s) offered to satisfy the need as requested in the Request
for Proposal orquote solicitation.
Purchase Order:
the City’sdocument used to authorize a purchase transaction with a
vendor. It should contain provisions for construction, goods and/or services
ordered; applicableterms as to payments, discounts, date of performance and
transportation; and other factors orconditions relating to the transaction.
Acceptance of a Purchase Order by a vendor shallconstitute a contract, except
instances in which a Purchase Order is issued only as an internalencumbrance
document.
Purchase Requisition(PR):
System generated and approved document submitted to
purchasing to request a Purchase Order.
Quote or Informal Solicitation:
writtensolicitation request and/or response offeredto
the Cityby a vendor for furnishingspecificgoods and/or services at a stated
price, under $50,000.
Request for Proposal(RFP):
a solicitation for goods and/or services for whichthe
scope of work, specifications or contractual terms and conditions cannot
reasonably be closelydefined. Evaluation of proposal is based on stated criteria
and shall state the relative importanceof all evaluation factors; other factors may
be considered as stated in the RFP.
Request for Qualifications (RFQ):
may be a formal or informal requestto solicit
qualifications and experience forspecific services.Responses are evaluated
and a top responder is selected. Price may not be known or consideredduring
the evaluation process. Once a top respondent is identified, City staff negotiates
a firm price and the City Manager or Assistant City Manager sign an agreement
with the individual or firm.
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Services:
the furnishing of labor, time and/or effort by professionals or contractors,
whereinthesubmission of goods or other specific end products other than
reports, studies, plans, advisories,contractual documents or other documents
relating to the required performance is incidental orsecondary.
Sole Source:
the only existing source of the only item which meets the needs of the
userdepartment/division as determined by a reasonably thorough analysis of the
marketplace.
Specifications:
a concise, descriptivestatement of a set of requirements to be
satisfied by a product,materialor process used in asolicitation to illustratethe
goods and/orservices to be purchased or otherwise acquired.
Successful Bidder:
vendor awarded the contract through solicitation, regardless of the
method used or dollar amount.
Vendor:
an actual or potential provider of goods or services.
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