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02-22-16 Meeting of the La Porte Development Corporation Board of Directors
RICHARD WARREN, PRESIDENT MIKE COOKSLEY, VICE-PRESIDENT JAY MARTIN, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER MIKE CLAUSEN, BOARD MEMBER RANDY WOODARD, BOARD MEMBER NANCY OJEDA, BOARD MEMBER [•moi - • � � • . •�• .. • . , • e� � , Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on February 22, 2016, 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: 1. CALL TO ORDER 2. CONSENT AGENDA (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately) (a) Consider approval or other action regarding minutes of the La Porte Development Corporation Board meeting held on February 8, 2016 - P. Fogarty (b) Receive Financial Report - S. Livingston 3. AUTHORIZATIONS (a) Consider approval or other action authorizing $120,000.00 development agreement with Fischer's Hardware, Inc., in connection with incentive grant in the amount of $120,000.00, for infrastructure improvements to property located at 1010 S. Broadway Street - S. Livingston (b) Consider approval or other action authorizing an enhancement grant in amount not to exceed $19,192.60 payable to 4 Ever Clear Pool Chemical Co., LLC., and associated development agreement, for infrastructure improvements to property located at 101 S. Iowa - S. Livingston 4. SET DATE FOR NEXT MEETING - S. Livingston 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. 6. Adjourn 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, 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 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. CERTIFICATION I certify that a copy of the February 22, 2016, agenda of items to be considered by the Board of the La Porte De\telopment Corporation was placed on the City Hall Bulletin Board on February 16, 2016. Patrice Fogarty, City Secretary RICHARD WARREN, PRESIDENT MIKE COOKSLEY, VICE PRESIDENT CHUCK ENGELKEN, BOARD MEMBER JAY MARTIN, BOARD MEMBER MIKE CLAUSEN, BOARD MEMBER RANDY WOODARD, BOARD MEMBER NANCY OJEDA, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF FEBRUARY 8, 2016 The City of La Porte Development Corporation Board met on February 8, 2016, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to consider the following items of business: 1. CALL TO ORDER President Richard Warren called the meeting to order at 5:03 p.m. The following members of the La Porte Development Corporation Board were present: Board members Engelken, Woodard, Martin and Ojeda. Absent: Vice -President Cooksley and Board member Clausen. Staff Present: Corby Alexander, Traci Leach, Patrice Fogarty, Scott Livingston, and Clark Askins. 2. CONSENT (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately.) (a) Consider approval or other action of minutes of the La Porte Development Corporation Board meeting held on January 11, 2016 — P. Fogarty (b) Receive Financial Report — S. Livingston (c) Consider approval or other action authorizing staff to execute payment in the amount of $100,000.00 to Gantstein Esquire, LLC., (the Pipeline Grill) for completed infrastructure, site improvements, and other related improvements for building site at 1003 Spencer Hwy., in accordance with terms of incentive agreement — S. Livingston Regarding Item B, Board member Engelken questioned if the projected year end fund balance is $3.4 million or $2.4 million. Economic Development Coordinator responded 3.4 million. Board member Engelken moved to approve the Consent Agenda Items pursuant to staff recommendations. Board member Woodard seconded. MOTION PASSED UNANIMOUSLY 5/0. Vice - President Cooksley and Board member Clausen were absent. 3. DISCUSSION AND POSSIBLE ACTION (a) Discussion and possible action regarding the proposed Economic Development Strategic Plan Update — S. Livingston Page 1 of 3 February 8, 2016, La Porte Development Corporation Board Minutes Economic Development Coordinator Scott Livingston presented a summary for updating the 2009 Economic Development Strategic Plan and it being a necessary tool to acquire certification as an Accredited Economic Development Organization. Board member Engelken asked if the 2009 Economic Development Strategic Plan is available on the City's website. Economic Development Coordinator Scott Livingston responded he will have to check the website for confirmation. Board member Engelken commented the plan should have been available on the website for potential investors. Board member Ojeda commented not much has changed from the 2009 Economic Development Strategic Plan. It would be nice to have an updated plan; and if it is needed for accreditation, a new plan should be done. President Warren commented he likes the idea of acquiring certification as an Accredited Economic Development Organization and understood that is why the funds were budgeted. Board member Woodard suggested the update be done in-house by Mr. Livingston. City Manager Corby Alexander asked the Board if Staff should change from a heavy incentive base or go to quality of life issues. Mr. Alexander then suggested Staff come back to narrow down a topic of discussion on specific areas for updating the Economic Development Plan. 4. SET DATE FOR NEXT MEETING Board members set the next meeting dates for Monday, February 22, 2016, and Monday, March 14, 2016, at 5:00 p.m. Mr. Livingston advised he will tentatively schedule a Workshop meeting at the end of March. 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. Board member Ojeda requested an update on the quality of life project. 6. ADJOURN There being no further business, Board member Engelken moved to adjourn the meeting at 5:38 p.m. Board member Woodard seconded. MOTION PASSED UNANIMOUSLY 5/0. Vice -President Cooksley and Board member Clausen were absent. Respectfully submitted, Patrice Fogarty, City Secretary Passed and approved on this 22nd day of February 2016. President Richard Warren Page 2 of 3 February 8, 2016, La Porte Development Corporation Board Minutes Page 3 of 3 February 8, 2016, 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) Unaudited Beginning Fund Balance 9/30 Plus Year to Date Revenues: 1/2 Cent Sales Tax Transfers -In Interest Income Total Revenues Equals Total Resources Less Year to Date Expenditures: Payroll Supplies Services & Charges (Memberships, Training, Advertising, Legal, Utilities) Capital Outlay Debt Service Transfer Total Expenditures Estimated Year to Date Fund Balance as of 9/30/2016 Commitments Pipeline Grill Richard Industrial Group ACT Independent Turbo Service, Inc. Debt Service Reserve Adjusted Year to Date Fund Balance Previous Report FY 2015-16 FY 2014-15 $ 3,458,203 $ 3,458,203 $ 3,213,390 391 363 391 363 3,458,203 3,458,594 3,213,753 6,730 7,060 115 1 1,033 6,903 56,722 90,318 - 64,600 104,282 $ 3,458,203 $ 3,393,994 $ 3,109,471 $ 300,000 10,000 426,000 680,668 $ 1,416,668 $ 1,977,326 Projection Through Year End Adjusted Year to Date Fund Balance $ 1,977,326 Plus: Estimated Sales Tax 2,434,375 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) Budget Expenditures Balance Eagade Grants 407,669 131,697 275,972 Total 407,669 131,697 275,972 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: February 22, 2016 Requested By: Scott D. Livingston Department: Economic Development/Tourism Report: ' Resolution:'(' Ordinance: ' Exhibits: 1. Agreement 2. Guidelines 3. Project Math Appropriation Source of Funds: 038 -ED General Fund Balance Account Number: Amount Budgeted: Amount Requested: $120,000.00 Budgeted Item: YES NO SUMMARY & RECOMMENDATIONS On Monday, 25 January 2016, the City Council voted to approve an economic development grant for Fischer's Hardware, Inc. for an amount not to exceed $120,000. The proposed development agreement was amended to reflect the new amount. In order to receive a fullpayment of $120,000, payable through five separate payments over a four year period, Fischer's Hardware, Inc. must meet each of the following conditions: • Spend at least $600,000 to complete all the approved work items by 28 Feb. 2017, . Employ at least 4 new full time employees and 3 new part time employees, and . Increase sales tax revenue by 20% for 3 years. The scope of work proposed by Fischer's Hardware is unchanged. Staff recommends approval of the development agreement. Action Required by the La Porte Development Corporation: Consider approval or other action to award an economic development incentive for an amount not to exceed $120,000 to Fischer's Hardware, Inc., to be awarded at the completion of the project, pursuant to the terms of a development agreement, and authorize President Richard Warren to sign and execute a development agreement. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT CORPORATION, AND FISCHER'S HARDWARE, INC., A TEXAS CORPORATION, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS THIS AGREEMENT made by and entered into this 22nd day of February 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, hereinafter "LPDC", and Fischer's Hardware, Inc., a Texas Corporation, hereinafter referred to as "Recipient". 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 known as "Fischer's Do It Best Hardware" and 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 at least $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 - 1 In consideration of Recipient renovating the existing structure at 1010 S. Broadway St., and continuing to operate a "Fischer's Hardware" store at the 1010 S. Broadway St site ("Store" herein), 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 11 November 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: A. A cash incentive payment in an amount equal to $50,000.00 will be distributed to Recipient by LPDC, upon receipt by LPDC of: 1) Proof of minimum capital investment in the amount of at least $600,000 applied towards eligible and approved improvements 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 scope of work identified in Exhibit A, 2) Copies all applicable invoices and receipts of payment for the same invoices for all projects listed in Exhibit A, which were previously approved by the LPDC Board, and have been completed, 3) Pictures showing proof of completion of each of the projects identified in Exhibit A, which were previously approved- by the LPDC Board, 4) Copies of all applicable certificates, permits, and final inspection reports required by the City of La Porte, Texas, to the Recipient for completion of the renovated Store; 5) In no case will the sum of $50,000.00 be made by LPDC if all the required items listed in Article I above are not delivered to and received by LPDC by 28 February 2017. In the case that proof of all the required items listed in Article I above are presented to LPDC on or before said 28 February 2017 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 items listed in Article I, 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. 6) Notwithstanding the foregoing requirements, Recipient will be entitled to receive a pro -rata portion of the $50,000.00 incentive payment in the K, event that it should, by the 28 February 2017 deadline, provide proof of all the required items listed in Article I towards renovation of the Store and related infrastructure and site work for 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 proof of all the required items listed in Article I towards renovation of the Store and related infrastructure and site work, in an amount no less than $550,000.00. Where Recipient fails to provide proof of all the required items listed in Article I towards renovation of the Store 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 proof of all the required items listed in Article I towards renovation of the Store 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 28 February 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. Upon verification of Recipient's submission of proof of all the required items listed in Article I towards renovation of the Store and related infrastructure and site work for all the items listed in Exhibit A 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 28 February 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 28 February 2017 deadline, the incentive payment under this agreement would be calculated at $575,0001$600, 000, or 96% of the $50, 000.00 incentive payment, for a total payment of $48,000.00. B. 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-time individuals employed at the La Porte store as of 15 October 2015, no later than 30 June 2018. In order to qualify as a full time position, a minimum of 1600 cumulative hours must be performed by the person(s) holding 3 each full time position for the twelve month period ending 30 June 2018. In order to qualify as a part time position, a minimum of 960 cumulative hours must be performed by the person(s) holding each part time position for the twelve month period ending 30 June 2018. Proof of employment, for purposes of this agreement, shall require Recipient to produce: 1 ) Copies of Recipient's 941 Report to the Internal Revenue Service and C3 Report to the Texas Workforce Commission for each employee (but with social security numbers of each employee. redacted), 2) Copies of each new employee's cumulative payroll record or record of payment for the past twelve months, and 33) A notarized statement executed by Recipient's Board of Directors affirming that an additional four (4) full time and three (3) part-time employees have been and are employed by Recipient for positions permanently located at the 1010 S. Broadway St. site for at least the past twelve months, 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 28 February 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. C. 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: 1) If during the 12 month period ending 30 June 2018 (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 revenue generated from the beginning of the 3rd Quarter of 2014 through and including the 2nd Quarter of 2015 ("Baseline Sales Tax Revenue Amount " herein) as reflected in the Sales Tax Analysis and Reporting Service (STARS Report for Quarter #2 of 2015), Recipient shall be entitled to a $20,000.00 installment payment at the end of Year 1 of operation. 2) If during the 12 month period ending 30 June 2019 (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 for Quarter #2 of 2015), Recipient shall be entitled to a $20,000.00 installment payment at the end of Year 2 of operation. 3) If during the 12 month period ending 30 June 2020 (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 rd in the Sales Tax Analysis and Reporting Service (STARS Report for Quarter #2 of 2015), Recipient shall be entitled to a $20,000.00 installment payment at the end of Year 3 of operation. 4) 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 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 for Quarter #2 of 2015), 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 for Quarter #2 of 2015) 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 85% of the $20,000.00 incentive payment, for a total payment of $17,000.00. All funds received as herein provided shall be solely for the purpose of contributing towards Recipient's costs in the renovation of the exterior and interior of the existing hardware store known as "Fischer's Hardware", 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 promotion or development of new or expanded business enterprises, as authorized by Texas Local Government Code chapters 501 and 505. 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. LPDC's obligation 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 6 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. rsa� The term of this Agreement is for a period beginning on the date of approval by LPDC and ending 30 September 2020. 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 person participating in or performing any of Recipient's duties or responsibilities hereunder be considered an officer, agent, servant, or employee of the LPDC. /TW"M M 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 from all suits, actions, claims, and expenses of any character, including attorney's 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 Recipient, its agents, servants or employees. VA This Agreement may be amended by the mutual agreement of the Parties hereto in writing to be attached to and incorporated into this Agreement. 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. 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. 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. This Agreement may be executed in triplicate, each of which shall be deemed an original and constitute one and the same instrument. r-1 ylll� 4IW,- II 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. 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. 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 Recipient on the dates indicated below. Richard Warren, President Date ATTEST Secretary of the Corporation 0 LIM Date ATTEST SHANNON M. COTHAM ^: Notary Public. State of Texas 00 My Commission Expires -, 'a= February 11, 2019 10 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 1) 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 11 Incentive Guidelines for New and Expanding Businesses City of La Porte 11 November 2015 Incentives for new or expanding businesses should be limited to the lesser of: (a) A maximum 10 year payback of the business's new/additional tax revenues to the City of LaPorte, or (b) Up to 25% of the business's total expenditures for "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 do not 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 economic development grant must meet the following criteria: (1) Only the minimum amount of financial assistance required to bring the project to fruition 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: a. A value of 0.15 per job will be assigned for higher paying, white collar, engineering, engineering design, or executive "primary jobs". b. A value of 0.125 per job will be assigned to highly skilled positions for a process technician and/or advanced manufacturing "primary jobs". c. A value of 0.10 per job will be assigned to skilled "primary jobs". d. A value of 0.075 per job will be assigned to unskilled "primary jobs", and e. A value of 0 per job will be assigned to "non -primary jobs". (5) Projects which have already made a commitment to establish anew business in LaPorte 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 This mathematical analysis is based upon the New Incentive Guidelines for New and Expanding Businesses, which the ED Board approved on 11 November, 2015. In short, the new guidelines applicable to this project state that: 1. Incentives for new or expanding businesses should be limited to the lesser of: (a) A maximum 10 year payback of the business's new/additional tax revenues to the City of LaPorte, or (b) Up to 25% of the business's total expenditures for "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"; Known Facts: • Total capital expenditure, excluding inventory of approximately $600,000. • Sales tax revenues are expected to increase by 15-20%, per the Project Introduction. • Annual sales tax revenues for the last twelve months ending with the 2nd 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 the purpose of this analysis, the full time, primary job positions were given a value of 0.1, while the part time, non -primary job positions were assigned a value of 0). Analysis: For this project, an incentive grant award may be limited to a maximum 10 year payback of the business's new/additional tax revenues to the City of La Porte, since this amount is less than 25% of the business's total expenditures. Therefore, assuming that (a) 100% of the value of the $600,000 capital expenditure will be added to the city's tax rolls, and (b) the retailer will increase its annual retail sales 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 Fischer's IHlard are $6001,,01010 $ 11 6P 60101 4 3 Fiischeir's IFNairdwwraire $600,00101 $116,A600 4 3 $150,1000 12.66 12.46 Fiischeir's IHlardwaire 600,01010: '116f600 4 3 For $200,000, the payback period is 17.15 years, and the adjusted payback period is 16.75 years. For $150,000, the payback period is 12.86 years, and the adjusted payback period is 12.46 years. For $120,000, the payback period is 10.29 years, and the adiusted payback period is 9.89 years. 2 A 10 Year # of # o1 Flaw AdIdle Payback PILOT or Full Pain + rant Pa aoll Taxable Period foir Tait Tax Time Time Award Period Value FT Jobs Re'veruuie Jobs Jobs Years Years Fischer's IHlard are $6001,,01010 $ 11 6P 60101 4 3 Fiischeir's IFNairdwwraire $600,00101 $116,A600 4 3 $150,1000 12.66 12.46 Fiischeir's IHlardwaire 600,01010: '116f600 4 3 For $200,000, the payback period is 17.15 years, and the adjusted payback period is 16.75 years. For $150,000, the payback period is 12.86 years, and the adjusted payback period is 12.46 years. For $120,000, the payback period is 10.29 years, and the adiusted payback period is 9.89 years. 2 REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Agenda Date Requested: February 22, 2016 Requested By: Scott D. Livingston Department: Administration Report: ' Resolution:'(' Ordinance: ' Exhibits: 1. Application, 4 Ever Clear Pools, Jan. 26, 2016 2. Bid Sheet Summary 3. Enhancement Grant Evaluation Summary 4. Development Agreement -Signed Appropriation Source of Funds: CIP 015.9892.993 Account Number: Amount Budgeted: $275,972.37 Amount Requested: $19,192.60 Budgeted Item: ' YES ' NO SUMMARY & RECOMMENDATIONS The Enhancement Grant Review Committee reviewed an Enhancement Grant Application from 4 Ever Clear Pool Chemical Co., LLC at 101 S. Iowa Street in La Porte, Texas. The applicant collected bids to complete each of the four projects. For each project for a value equal to or greater than $2,000, the applicant collected three bids. The proposed projects are as follows: 1) Remove existing asphalt driveway & install new concrete driveway $28,894.09 2) Install two new metal doors $ 622.44 3) Paint the sides and roof of the building $ 7,994.26 4) Install a new sign TOTAL $ 874.41 $38,385.20 As a result of the lowest bids for each project, the total expenditure proposed to be made by the applicant is estimated to be $38,385.20. 50% of this sum is $19,192.60. Please refer to the `Bid Sheet Summary' for details. The Enhancement Grant Evaluation Committee reviewed this enhancement project and believes that this project will encourage similar re -development throughout the community of La Porte. The Enhancement Grant Evaluation Committee gave this project a score of 4.80 out of a maximum possible score of 5.0. Please refer to the enclosed "Evaluation Summary" for additional details. The applicant is available to address any questions the Board may have about this proposed project. Action Required by the La Porte Development Corporation: Consider approval or other action to authorize President Richard Warren to sign and execute a development agreement with 4 Ever Clear Pool Chemical Co., LLC for an enhancement grant for an amount not to exceed $19,192.60 to be awarded at the completion of the project. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date Please print clearly. Please submit a completed application to: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway LaPorte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE: coff J -e— pt S e V\ Applicant Name C I I Co LLC Business Nae I C) I 7e., "t -Jck (AV A -J-0 30 4 as + Met I' V% t-,, P6vfe Physl al Business Address Business Owner (if different from applicant) po Mailing Address Contact Phone 775 W f ar 713-6 Email Address TYPE OF WORK (check all that apply): Xfl`acade JQ Awnings/Signage 11 Beautification 2f Parking Lot Improvements DETAILS OF PLANNED IMPROVEMENTS (attach additional pages if necessary): s�svv-vc Aspked+ C' &I c i -e- +C 3� Pdk A q ) TAli c M es L4 vA vlvwt &u< 11 &-CAJA LAI"OF11E. ENHAINCEMEN I GRANTAPPILiCA'noliq PAGE 1, Rev�sed 11/11/15 MINE OUT�[ �\V 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 FUNDS APPLIED TOTAL 5. BUDGETDETAIL PROJECT EXPENDITURES FUNDS FUNDS APPLIED TOTAL Awnings/Signage $ 8 17 4. Total estimated cost ofproposed project: Amount requested (up to 50% of total cost, $2,500 to $50,000): Please attach colmsamples,model numbers (for windows, doors, etc.),photos, scaleddraWmj4 and other illustrations ofwork htbecompleted. Please include msmuch detail mspossible. Your signature on this application certifies that you understand and agree with the following statements: | have met with the BSEC and | fully understand the Enhancement Grant procedures and details established. | intend to use these grant funds for the eligible renovation projects, asspelled out inthe application. | have not received, nor will | receive insurance monies for this revitalization project, OR | have disclosed all pertinent insurance information. | understand that if | am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant funds. APPIACANT SIGNATURE LA PORTE ENHANCEMENT GRANT APPLICATION j 1 u f 4, �( " b � A he Zl- i F ....__. . All 2\ / \ \} � � { \ \ � � \�\ \� 2. �-\<. \�° \ � \� � \\\{. � \ ��} � � � : �%�°� . � { \ \ � � \�\ � ) � � � �� \«� , �\ } � � � \\\{. � \ ��} � � ) � �\/: )\ � . � \ \ � } { \ y.� } } } : . .. �\ ( /. :, � \�{ :! / ; \ � � / \} � � \ } \ ( � � /�{ ��� ») { {� \ } . ` }/�\�� ��\ � � ��\: . \ .� \/\\/\�.\moi\� \§\ /©/\^� \��\/� w � �:.»: � � \�� � ; � .. � ,. � \»\�\\\%\ ! ,�! }\\<} .. \ /{ � .\ .: \ \. /i} � � � � �y�� : , : g Al I rN Driveway concrete Repair General Contractor tel:281-935-7225 iVIva PI This bid is about the removal of the existing driveway (3,255 sf 12" thick) and replacing it with an 8" and 6" concrete . To begin, 2" of base sand will be placed down and compacted. Rebar #4 will be used and will be placed 12" on centers. The concrete will be 4,000 psi and an 18" cut will be made to the street. This will include pulling the city permit, labor, materials, disposal and equipment . Removal and disposal of existing concrete -$6,000.00 Materials and labor to install 3,255 sf of concrete- $20,692,00 Total- $26,692.00 not including sales tax ) 12 9871 .e O" PROPOSAL SUBMITTED To� JOB NAME' Ir . . ....... . . .. .. . .. .... V ADDRESS JOB LOCATION (t"eyrs DATA e', PHONE# 0 FAX # 4 5Y We hereby submit specifications and estimates for: A )r ""Ak Ai'11""(111" "/)/ 4 "Ou AV' V e propose befqby �o furnish material and labor 7'.1COr A/ with payments to be made as follows: Any alteration or deviation from above specifications involving extra costs will be executed only upon written order, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents, or delays beyond our control. Page # JOB # DATE OF PLANS J of pages in accord nce with the aboyp specifications for the sum of: IZ, t Dollars 'l!] 4,, Respectfull ly submitted 4 21 Note this proposal may be withdrawn by us if not accepted within days. 0[cceptance of Propozat above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Signature Payments will be made as outlined above. Date of Acceptance Signature N A-NC3819 / T-3850 09-11 V (t"eyrs e', 4 5Y e propose befqby �o furnish material and labor 7'.1COr A/ with payments to be made as follows: Any alteration or deviation from above specifications involving extra costs will be executed only upon written order, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents, or delays beyond our control. Page # JOB # DATE OF PLANS J of pages in accord nce with the aboyp specifications for the sum of: IZ, t Dollars 'l!] 4,, Respectfull ly submitted 4 21 Note this proposal may be withdrawn by us if not accepted within days. 0[cceptance of Propozat above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Signature Payments will be made as outlined above. Date of Acceptance Signature N A-NC3819 / T-3850 09-11 Brooks Concrete, Inc 4018 Allen Genoa Pasadena, TX 77504 Iws Date 1/4/2016 Phone 713-947-8440 Fax 713-947-8444 Scott Jensen. E-mail 101 S. Iowa Street LaPorte, Texas 77571 sales@brooksconcreteinc.com P.O. No. Rep 713-614-2638 pjensen2 @i att.net DHJB Total Job Site: 101 S. Iowa St, La Porte, Texas 77571. Scope of Work: No Saw Cut Demo, Remove Driveway Asphalts as needed Install New 6" Concrete, 43.5'x 53' Install New 8" Concrete, 16.5'x 53' 3500 psi concrete or better w/#4 Rebar @ 12" on centers CUSTOMER TO PROVIDE PERMIT Labor and Materials 27,849.50T All Concrete Work will be completed to City of La Porte Code All Expansion Joints Redwood All Expansion Joints Doweled every 14inches Black Fiber Board placed between building and new concrete Down Payment of 50% required prior to start of job Balance on Completion Sales Tax 2,297.58 Total $30,147.08 Customer agrees to allow Brooks Concrete use of water and electricity at no charge to Brooks Concrete for the above project. BID VALID 30 DAYS Brooks is not responsible for damage to any underground lines. Brooks reserves the right to accept or reject any order. Any alteration or deviation from above specification involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. It is understood that Brooks has the right to trespass without recourse or repossess all materials not paid for according to the terms of this contract. If the contract is placed with an attorney for suit or collection through probate, bankruptcy, or other local proceedings, customer agrees to pay for all expenses and reasonable attorney fees incurred. Any verbal instructions, agreement, or promises arenot valid unless written as part of this contract. Customer agrees, at his own risk and expense, to designate to Brooks all property boundaries and easements. Customer further agrees to indemnify and hold Brooks, its owners, agents,, employees, heirs and assignees harmless for any damages to any person or property due to encroachment. Brooks does not accept reponsibility for damage or injury to any trees or shrubbery. Brooks is not responsible for stress and shrinkage cracks or cracks due to ground movement or tree roots. Customer agrees to procure and supply, at his own expense, any and all permits required by any political subdivisions for the work specified herein. If the customer does not provide elevations for drainage, Brooks will provide elevations based on existing structures. If elevation does not provide for proper drainage, Brooks will provide elevatinns as hest as no.s.sihle If customer's elevation does not allow for a 2" fall every 10' Brooks cannot he responsible for any water pooling. Brooks is not responsible for acts of vandalism. We propose to furnish materials and labor -complete in accordance with the above specifications. ACCEPTANCE OF PROPOSAL: The above prices, specifications and conditions are satisfactory and are hereby accepted. Brooks is authorized to do the work as specified. Payment will be made as outlined above, which date is prior to delivery of any materials to job site, or commencement of work. Signature Date Sales Rep J Doors 1/26/2016 1 BL/BB I Braulio /Brandon 1 S IOCU-161-3070 S 10 Commercial Flush Door 18ga. A40 Galvanized Steel, Polystyrene 1 1 211.001 21 LOOT Insulated Core, 161 Lock Prep, Curries Locations, *3hr. Fire Label, 3/0 x 7/0 x 1-3/4" Hinge & Hardware Locations: Hinge Size: _4- 1/2" Top of Door to Top of Each Hinge Measurement A: 4-7/8" B: 37- 1/8" C: 69- 3/8" D: X Lock Prep Type: _345 Top of Door to Center Line of Latch: E: 43-7/8" ***CONFIRM BORE LOCATION*** 2 1112-161-3068 1112 Commercial Flush Door 18ga. Cold Rolled Steel, Honeycomb Core, 1 1 220.00 220.00T 1.61 Cylindrical Lock Prep, 3/0 x 6/8 x 1-3/8" Hinge & Hardware Locations: Hinge Size: _3-1/2" Top of Door to Top of Each Hinge Measurement A: 7-7/8" B: X C: 67-3/4" Lock Prep Type: _345 Top of Door to Center Line of Latch: E: 39-9/1.6" This estimate is your work order confirmation. Please review it carefully. Upon signing below you are authorizing us to proceed in accordance with our terms and conditions listed at www.usafiredoor.com/terms-conditions. All order cancellations and changes must be submitted within 24 hours from time the order is placed. In signing below you are authorizing us to proceed with your order as described in this estimate. Acceptance Signature Page 1 Scott Jensen LaPorte, TX 77571 1/26/2016 1 BL/BB I Braulio /Brandon Delivery Charges to Zip Code: _77571 Delivery Type: (Business) Location Description:—Commercial Building Liftgate: (No) Appointment Needed: (No) Freight Class:_1110 Carrier:—Central Trans Rate Qt. #:_ FRT CR: 41 144.001 144.00 This estimate is your work order confirmation. Please review it carefully. Upon signing below you are authorizing $575.00 us to proceed in accordance with our terms and conditions listed at www.usafiredoor.com/terms-conditions. All - order cancellations and changes must be submitted within 24 hours from time the order is placed. In signing ce u' , $0.00 below you are authorizing us to proceed with your order as described in this estimate. Acceptance Signature e $575.00 it 22.ir'k Paint . . ........ .. . .. .. ..... 2656 Center Street Deer Park, TX 77536 281 .479.422-1 Office Stacy 101 Iowa LaPorte, Tx 832-274-3358 ,5tacyQMever(,Jear pQgjs.ccfi'n1 Exterior 281.479.7987 Fax Power wash complete exterior including roof At roof apply Ospho (rust inhibitor) to all rusted areas as needed Apply rust inhibitor primer to all areas as needed at roof including vents Paint roof with a latex DTIVI one solid color Paint walls with a 3 toned horizontal stripe around building All bay doors and entry/exit doors will be painted one solid color Paint to be used will be a DTM semi -gloss Paint, labor, and materials. (iEioo Same as above with exception of horizontal stripe. Paint, labor, and materials. M 117AMENTIM $7,385.00 (Jiq NO Above work to be preformed in accordance and submitted in a substantial workman like manner for the sum of $ See Above . Price includes paint, labor and materials. ,we to be trnade haf Upon ii o $ dpo$ unless other wise specified. Surcharge for any signed contract cancelled. j f j r f � , , , �,,) , i p a�/ r -i c, V�/j , 21 k I � " 1, ,, f c nt Respectfully Submitted By: Accepted By: I �Ii00101t�' VISA ik 281-339,2400 Proposal Submitted to: Phone: Date: 4Ever Clear Pool Service / Stacy Down 832-274-3358 (cell) 01/03/2016 Mailing Address: Location Address: 101 South Iowa Av LaPorte, TX 77571 Email: stacy@4everclearpools.com We hereby submit specifications and estimates for: 1. Power wash building. 2. Wire brush all areas of rust before putting on primer. 3. Prime entire building before painting. 4. Paint building outside, as discussed with customer using Sherwin-Williams Super Paint. 5. Replace two (2) doors as discussed with customer. 6. All colors will be customer's choice of color and texture. Note: Add stripe on two sides of building as discussed with customer will be five to eight hundred dollars. "NOTE: FRONT DOOR AND SHUTTERS ARE NOT INCLUDED UNLESS OTHERWISE SPECIFIED" We hereby propose to furnish material and labor — complete in accordance with the above specifications, for the sum of: Seven Thousand Eight Hundred Dollars ($7,800.00) mm Payment to be made as follows: ON COMPLETION g p p �like""manne'rac�.or.. ung to standard t All material is guaranteed to be as specified. All labor to be completed in a workmari � o standard practices. Any alteration or deviation from the above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accidents, or delays beyond our control. Acceptance of Proposal —The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work specified. Payment will be made as outlined above. Authorized Signature Note: This proposal may be withdrawn by us if not accepted within 30 days. Signature: AMERICAN TRADITION *TEXAS PRIDE* SWISS TIMING Date: Print Page 1 of 2 Subject: 101 s iowa st; exterior painting estimate From: Johnny saenz (mr.saenz@att.net) To: pjensen2@att.net; Cc: mr.saenz@att.net; Date: Friday, January 22, 2016 10:29 AM johnny saenz bay area paint and tile 1221 W Flamingo Drive Seabrook, TX 77586 EXTERIOR PAINTING ESTIMATE job scope consists of power washing all the exterior surfaces of building including all siding, trim, doors, gutters/downspouts, and roof to rid from all contaminants (dirt, mold, debris). rust inhibitor primer (Sherwin Williams Uniflex - top quality rust inhibitor) to be applied to all roof flat surfaces; including vents and vent pipes; allowance of 15 gallons. Sherwin Williams Uniflex also applied to garage door frames, and exterior rear portion of roof overhang where metal is exposed (approx 30 linear feet by 1.5 feet; underside of roof and metal/framing). All roof to be painted two coats of Sherwin Williams Pro Industrial Multi - Surface Acrylic (white - Gloss Finish); allowance of 30 gallons. All these areas above (roof listed prior) vertical surfaces, metal siding, and garage doors (white) to be painted two coats of Sherwin Williams Pro Industrial Multi -Surface Acrylic; trim and doors white (siding color tbd); allowance of 40 gallons. new regular doors (2) to be painted primer coat and two topcoats of SW Pro Industrial Multi -Surface Acrylic (white); change order to repair/prep frame if not replaced. trim (gutters/downspouts, vertical/horizontal, window, door frames) to be painted two coats of SW Pro Industrial Multi -Surface Acrylic. Rear back right corner (interior portion/section area) Not Included. *All Paint to be Applied for Consistency and Coverage. parking lot must be cleared or far enough away so overspray will not be a factor/not responsible for paint overspray on vehicles! *2 Year Warranty on Workmanship (peeling, flaking, blistering) barring any Acts of God (Hurricanes, Tornadoes, Hail Storms)!......::... ...:., Labor and Mate als $9,985 , *Bay Area Paint and Tile is licensed/registered in the State of Texas (TRCC #45114), is fully insured through i i rb()w. r kiswance of League City (281 520 4090), was Awarded Gold Star Certificate for the Year 2014 by the Better Business Bureau of Greater Houston, and is an Accredited and Good Standing Member of the Better IBUSiiw_K�SS I31W°eau the last 10 Years with an A+ Rating! https:Hus-mg4.mail.yahoo.com/neo/launch?.partner=sbc&.rand=5nnuu356jgfcf 1/22/2016 Print Have a blessed day! Johnny Saenz Owner of [3ay Area Flairit wid Me Cell: 281-382-6479 ***Please call, text, or email if you have any questions*** Page 2 of 2 https:Hus-mg4.mail.yahoo.com/neo/launch?.partner--sbc&.rand=5nnuu356jgfcf 1/22/2016 S ign CUSTOMER: 4Ever Clear Pools DATE: 1/25/16 ARTIST: Carmen NOTES: Qty. I- 4'x10'D1bond @ $520/ea DATE: By signing this proof you agree to our Terms& Conditiom m le Ln m O c -I M �I 0 O 0 0 0 co � Lq 0 411 � O rn Ln fo a fr O O c�I co m fa �I 0 O 0 L O co � O U O O c�I fa V)- V) - L O u U fa 4-1L C O fC N C N N cu — � L .Q Q Oa co N 4� C a) a'' O L 4, C L O ++ C LL O N N O U a) a co L Vf L N U a N LL cu L O Q a i L to C fO ivy LL V) m Q 1 m W 0 N t0 N N N N Of .� ai v E E U C O Ero Iq N C � N oo0 N � � Ln � L Ln T " >- U_ N z z Q C C bz L N O N l6 N r -I N N > O E 3 N � C Lu Q E N O O a m Ln Gj cu i m of N� > O O v E d J ^ H }a U_ aJ OA ro N C m O 2 0O O W U N of E (7 a ai w u, m H U i O O E v C6 N > a N aJ 7 = � E two E E — m aJ � C 3 N + .E U W f6 z O (n C U W X N aJ' N 7 U Cto N _g_- 0 ro i r -I 000 N L O O a v L +1 r h c a N 110 C C E U Q O cV +, LU U N 3 Q C N N a- C:'}r ® 11 7 0 L L2 = co i O Lo 0 0-m C L aJ aT+ N > +' d Q Gj J +�+ dJ M h � j Gj LCL O +� J U c N Gj 7 N I CC O N Iq N C � N oo0 O � � Ln � L Ln T C: U_ N z z Q C C • , (Nig u N O N l6 N N E U E 3 N � C E Q Q N O O a m Gj cu i m of v v O C O v CT t_- 0 O '} o Ln U O w n U w ._. v CD v aq E E E t�: Op U Op C c 4J E � Q O w > c � U_ E + O v O EU W I (1) C L C W u U a-� N O � Q J v Q O c +� O 7-0> L O L E E C C C O O W ■ 0 Ln 6 r- 00 00 N c -I n Ln r- >: r- < N CO X W cU 2 H 4-1 Co L O vi a Ln m W J z , Ln M Co L m d C O E L m U- Iq o Iq � o oo0 Ln Ln T U_ Lfl O C w O U E 3 M M M M M a O cu i N� > O O v N d H T U_ aJ OA C C m O N O W aJ N of E a Lr, c� C u, m H i O E O C O N > _� N O 7 � O two 110 Of Gj vii m cU C 3 N + .E W f6 z O (n C N U X N N 7 N _g_- 0 D- N N > m J C O v O + � O + Q 110 C E U Q O GJ > N t M N op Q E Q C N i O C C a- C:'}r .0 d 7 0 J co U _ O C � j aT+ N > +' Gj }J G Gj dJ � j Gj E o +� �O U c Q Gj 7 CC O E Q > E l6 — NU — —_ _ — N - N N N N N .O d d d d d ■ 0 Ln 6 r- 00 00 N c -I n Ln r- >: r- < N CO X W cU 2 H 4-1 Co L O vi a Ln m W J z , Ln M Co L m d C O E L m U- L O C U_ O C U U E C� C C a O +, N� > O N d M T U_ C C O N O W O N of E c� C E O O v _� N O to > O two J Of m cU l6 3 E + .E W f6 z O (n O N U ■ 0 Ln 6 r- 00 00 N c -I n Ln r- >: r- < N CO X W cU 2 H 4-1 Co L O vi a Ln m W J z , Ln M Co L m d C O E L m U- ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT CORPORATION, AND 4 EVER CLEAR POOL CHEMICAL CO., LLC, A TEXAS LIMITED LIABILITY COMPANY, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS IN CONNECTION WITH THE LA PORTE DEVELOPMENT CORPORATION ENHANCEMENT GRANT PROGRAM THIS AGREEMENT made by and entered into this 22nd day of February 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, hereinafter "LPDC", and 4 Ever Clear Pool Chemical Co., 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 facade 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 $50,000; and WHEREAS, the Recipient owns and operates a business known as 4 Ever Clear Pool Chemical Co., LLC, located at 101 S. Iowa 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) Remove existing asphalt driveway and install a new concrete driveway; 2) Install two new metal doors, 3) Paint the sides and roof of the building, and 4) Install a new sign which would result in the expenditure by Recipient of an estimated $38,385.20 in capital improvements and employ no less than five 5 full time and zero part-time employees, with one-half of such capital expenditure being eligible for 1 reimbursement by the La Porte Development Corporation, up to a maximum of $50,000.00; 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 the Business Site at 101 S. Iowa Street, La Porte, Texas, 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 $19,192.60, as a match for Recipient's 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; 4) Proof of minimum capital investment in the amount of $38,385.20 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: 1) Remove existing asphalt drivewaV and install a new concrete driveway --..-$28,894.09 2) Install two new metal doors -- $622,44, 3) Paint the sides and roof of the building -- $7,994.26, and 4) Install anew sign -- $874.41 5) Submission to LPDC of an employment roster evidencing that the Recipient employs five 5 full time and zero 0 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 Recipient's 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 five 5 full time and zero 0 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. 7) In no case will the sum of $19,192.60 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 Board of the La Porte Development Corporation. 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 requirements of this paragraph, LPDC will then remit the sum of $19,192.60 to the Recipient within a period not to exceed thirty (30) days. ARTICLE 11 All funds received as herein provided shall be solely for the purpose of contributing towards the Recipient's 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. 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. LPDC's obligation to Recipient shall not exceed $19,19 .6Q, 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. The term of this Agreement will expire one (1) year from the date on which the Board of the La Porte. Development Corporation approved the project. 4 >�;�►ail All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes authorized by this Agreement. Notwithstanding Article 1, 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 Vill 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 Recipient's 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 attorney's 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. The Recipient may not assign this Agreement, or any of the benefits provided herein including but not limited to incentive payments identified in Article 1, without the written consent of LPDC. 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. �. T.. ,1F 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 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 6 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. 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 By: Date ATTEST a i. ll�iii