HomeMy WebLinkAbout04-25-16 Meeting of the La Porte Development Corporation Board of Directors
RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER
SHELLEY FULLER, BOARD MEMBERSHELLEY FULLER, BOARD MEMBERRANDY 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
April 25, 2016April 25, 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 regarding minutes of the La Porte Development Consider approval or other action regarding minutes of the La Porte Development
(a)
Corporation Board held on March 31, 2016 Corporation Board held on March 31, 2016 -- S. Harris S. Harris
Receive Financial Report Receive Financial Report -- S. Livingston S. Livingston
(b)
Consider approval or other action authorizing Staff to execute payment number 2 of 3 in the Consider approval or other action authorizing Staff to execute payment number 2 of 3 in the
Consider approval or other action authorizing Staff to execute payment number 2 of 3 in the Consider approval or other action authorizing Staff to execute payment number 2 of 3 in the
(c)(c)
amount of $5,000.00 to Richard Design Services, Inc., at 1200 State Highway 146 La Porte, amount of $5,000.00 to Richard Design Services, Inc., at 1200 State Highway 146 La Porte,
Texas, in accordance with terms of incentive agreement Texas, in accordance with terms of incentive agreement -- S. Livingston S. Livingston
3.DISCUSSION AND POSSIBLE ACTIONDISCUSSION AND POSSIBLE ACTION
Discussion and possible action regarding appointment of a ViceDiscussion and possible action regarding appointment of a Vice--President to the La Porte President to the La Porte
(a)
Development Corporation Board Development Corporation Board -- S. Livingston S. Livingston
Consider approval or other action authorizing Staff to publish 60Consider approval or other action authorizing Staff to publish 60--day notice of a public day notice of a public
(b)
hearing on June 27, 2016, to consider awarding an economic incentive grant to Northern hearing on June 27, 2016, to consider awarding an economic incentive grant to Northern
Safety & Industrial, Inc., for an amount not to exceed $300,000.00 Safety & Industrial, Inc., for an amount not to exceed $300,000.00 -- 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.Executive SessionExecutive Session--The La Porte Development Corporation reserves the right to meet in The La Porte Development Corporation reserves the right to meet in
executive session on any agenda item should the need arise and if authorized by the Texas executive session on any agenda item should the need arise and if authorized by the Texas
Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code.Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code.
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(a)Texas Government Code, Section 551.087(1) and (2)Texas Government Code, Section 551.087(1) and (2)Deliberations regarding Deliberations regarding
Meet with the Economic Development Meet with the Economic Development
Economic Development Negotiations:Economic Development Negotiations:
Coordinator to discuss commercial/financial information received from a business prospect Coordinator to discuss commercial/financial information received from a business prospect
for a proposed business expansion in La Porte and with whom the La Porte Development for a proposed business expansion in La Porte and with whom the La Porte Development
Corporation is conducting economic development negotiations, and deliberate possible offer Corporation is conducting economic development negotiations, and deliberate possible offer
of financial incentive for same.of financial incentive for same.
7.Reconvene into regular session and consider action, if any, on items discussed in executive Reconvene into regular session and consider action, if any, on items discussed in executive
session.session.
8.AdjournAdjourn
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 April 25, 2016, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the April 25, 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 April 19, 2016.Corporation was placed on the City Hall Bulletin Board on April 19, 2016.
Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary
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RICHARD WARREN,PRESIDENT
MIKE CLAUSEN, BOARD MEMBER
VACANTRANDY WOODARD,BOARDMEMBER
CHUCK ENGELKEN, BOARD MEMBERNANCY OJEDA, BOARD MEMBER
JAY MARTIN, BOARD MEMBER
MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OF MARCH 31, 2016
March 31, 2016,
The City of La Porte Development Corporation Board met on at the La Porte Police
rd
5:00 p.m
Department Conference Room, 3005 N. 23 Street, La Porte, Texas 77571, at . to consider the
following items of business:
1. CALL TO ORDER
President Richard Warren called the meeting to order at 5:02 p.m. The following members of the
La Porte Development Corporation Board were present: Board members Engelken, Woodard, Martin
and Ojeda. Absent: Board member Clausen. Staff Present: Corby Alexander, Traci Leach, Sharon
Harris, 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 February 22, 2016 P. Fogarty
(b)
Receive Financial Report S. Livingston
Regarding Item B, Finance Director Michael Dolby provided a Financial Report. There were no
questions from Board members.
Board member Martin moved to approve the Consent Agenda items pursuant to staff
MOTION PASSED UNANIMOUSLY 5/0.
recommendations. Board member Woodard seconded.
Board member Clausen was absent.
3. DISCUSSION AND POSSIBLE ACTION
(a) Discussion and possible action regarding future projects and/or initiatives of the La Porte Development
Corporation S. Livingston
Economic Development Coordinator Scott Livingston presented a summary for future projects and/or
initiatives of the La Porte Development Corporation.
Board members discussed and identified the status of each task assigned to the La Porte Development
Corporation Board found in the City Council 2013 Strategic Plan; identified if the Board would like to address
the initiatives that are included in the 2012 Comprehensive Plan Update and how the Board would like to
address the remaining tasks outlined in one or both of the City Council 2013 Strategic Plan and 2012
Strategic Plan for the upcoming year.
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March 31, 2016, La Porte Development Corporation Board Minutes
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Board members questioned and scored the amount of time and money that should be invested to attract
new companies that would create new primary jobs and/or attract new capital investment to La Porte; the
amount of time and money that should be invested to facilitate the retention and expansion of existing
businesses that may ultimately result in creating new primary jobs and/or attracting new capital investment
to La Porte; if greater value and/or priority should be placed upon contributing funds to private businesses or
public improvements to areas such as the corridors of Main Street, S. Broadway, SH 146, and/or San
Jacinto Street; 2013 Strategic Plan, does the Board prefer
private development of a breakwater marina with a waterfront restaurant on City-owned property or publicly
developed and owned assets and of what value and/or priority should be placed upon increasing the level of
wages and employment opportunities with local employers for the citizens of La Porte.
Staff advised an online survey will be created to poll th
implementing any ideas introduced and/or discussed during the course of the meeting. Board members
were also advised results of the online survey will be presented at a future meeing.
No formal vote or action was taken.
4. SET DATE FOR NEXT MEETING
Board members set the next meeting dates for Monday, April 25, 2016, and Monday, May 23, 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.
There were no comments.
8. ADJOURN
There being no further business, Board member Ojeda moved to adjourn the meeting at 7:10 p.m.
MOTION PASSED UNANIMOUSLY 6/0.
Board member Martin seconded.
Respectfully submitted,
____________________________________
Sharon Harris, Assistant City Secretary
th
Passed and approved on this 25 day of April 2016.
____________________________________
President Richard Warren
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March 31, 2016, La Porte Development Corporation Board Minutes
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This is an Unaudited Statement.
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 4B Sales Tax)
Previous
ReportFY 2015-16FY 2014-15
Unaudited Beginning Fund Balance 9/30$4,544,417$4,544,417$3,213,390
Plus Year to Date Revenues:
1/2 Cent Sales Tax-358,355407,946
Interest Income3913,6081,683
Total Revenues391361,963409,629
Equals Total Resources4,544,8084,906,3803,623,019
Less Year to Date Expenditures:
Payroll6,73031,11930,480
Supplies115621160
Services & Charges (Memberships, Training, Advertising, Legal, Utilities)1,03356,749123,339
Incentive Grants-100,000-
*
Debt Service Transfer56,722226,889361,272
Total Expenditures64,600415,378515,251
Estimated Year to Date Fund Balance as of 1/31/2016$4,480,208$4,491,002$3,107,768
Commitments
Pipeline Grill$200,000
Fischer's Hardware120,000
Richard Industrial Group10,000
ACT Independent Turbo Service, Inc.426,000
Debt Service Reserve1,083,817
$1,839,817
Adjusted Year to Date Fund Balance$2,651,185
Projection Through Year End
Adjusted Year to Date Fund Balance$2,651,185
Plus: Estimated Sales Tax2,076,020
Less: Estimated Operational Costs(270,317)
Less: Debt Service Transfers(453,779)
Projected Year End Fund Balance$4,003,109
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
Commitment - 4 Ever Clear Pool lChemical Co., LLC19,19319,193
Available Balance407,669150,890256,779
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
April 25, 2016April 25, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. RDS Payment Request #2 of 3 RDS Payment Request #2 of 3
2. RDS Incentive Agreement, March 24, 2014 RDS Incentive Agreement, March 24, 2014
3. RDS Lease Agreement RDS Lease Agreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
Richard Design Services, Inc. has hired and employed at least forty full time employees since signing a lease and Richard Design Services, Inc. has hired and employed at least forty
full time employees since signing a lease and
moving into 1200 SH 146, La Porte, Texas. Therefore, based upon the terms of the enclosed incentive agreement, moving into 1200 SH 146, La Porte, Texas. Therefore, based upon the terms
of the enclosed incentive agreement,
Rusty Sims, General Manager for East Houston Operations of Richard Design Services, Inc., respectively Rusty Sims, General Manager for East Houston Operations of Richard Design Services,
Inc., respectively
requests payment for the second of three, annual installments in the amount of $5,000. requests payment for the second of three, annual installments in the amount of $5,000.
On 24 March 2014, the ED Board approved an economic development agreement in the amount of $5,000 to be On 24 March 2014, the ED Board approved an economic development agreement in the
amount of $5,000 to be
paid to Richard Design Services, Inc. in three equal installments of $5,000 each to promote the development and paid to Richard Design Services, Inc. in three equal installments of $5,000
each to promote the development and
expansion of its business enterprise in the corporate limits of the City of La Porte. According to the terms of the expansion of its business enterprise in the corporate limits of the
City of La Porte. According to the terms of the
development agreement, Richard Design Services, Inc. must satisfy two conditions prior to receiving the second development agreement, Richard Design Services, Inc. must satisfy two conditions
prior to receiving the second
payment of $5,000: payment of $5,000:
Maintain a lease for 7,500 sf in La Porte, andMaintain a lease for 7,500 sf in La Porte, andMaintain a lease for 7,500 sf in La Porte, andMaintain a lease for 7,500 sf in La Porte, and
Employee at least forty employees by 1 October 2015 Employee at least forty employees by 1 October 2015
Staff has evaluated the documentation for each condition and recommends execution of payment in the amount of Staff has evaluated the documentation for each condition and recommends
execution of payment in the amount of
$5,000 to Richard Design Services, Inc. per the terms of the enclosed economic development agreement. $5,000 to Richard Design Services, Inc. per the terms of the enclosed economic
development agreement.
A representative from Richard Design Services, Inc. will be available to answer any questions that the Board may A representative from Richard Design Services, Inc. will be available
to answer any questions that the Board may
have about the project. have about the project.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Consider approval or other action to authorize staff to execute payment number 2 of 3 in the amount of $5,000.00 Consider approval or other action to authorize staff to execute payment
number 2 of 3 in the amount of $5,000.00
to Richard Design Services, Inc. at 1200 SH 146, La Porte, Texas, in accordance with terms of incentive to Richard Design Services, Inc. at 1200 SH 146, La Porte, Texas, in accordance
with terms of incentive
agreement.
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
April 25, 2016April 25, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds:
Requested By:Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. LPDC Board By LPDC Board By--Laws, Revised February 9, Laws, Revised February 9,
2015
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
According to Section 3.02 of the La Porte Development CorporationAccording to Section 3.02 of the La Porte Development Corporations Bylaws, the Board of Directors shall s Bylaws, the
Board of Directors shall
stst
appoint a President and Vice President by October 1appoint a President and Vice President by October 1 of each year. of each year.
As a result of Board Director Mike CooksleyAs a result of Board Director Mike Cooksleys recent resignation from the board, the board does not have a Vice s recent resignation from
the board, the board does not have a Vice
President to preside over a meeting of the board in the absence of President Richard Warren. President to preside over a meeting of the board in the absence of President Richard Warren.
After visiting with City Secretary Patrice Fogarty, staff recommends that the board consider appointing a board After visiting with City Secretary Patrice Fogarty, staff recommends that
the board consider appointing a board
member to serve as the Vice President and complete Mike Cooksleymember to serve as the Vice President and complete Mike Cooksleys unexpired term until 30 September 2016. s unexpired
term until 30 September 2016.
At the last board meeting in September 2016, staff further recommends that the board may wish to consider At the last board meeting in September 2016, staff further recommends that the
board may wish to consider
appointing board members to serve as both Vice President and President from 1 October 2016 through 30 appointing board members to serve as both Vice President and President from 1 October
2016 through 30
September 2017. September 2017.
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
Consider approval or other action to appoint a new Vice President to the Board of the La Porte Development Consider approval or other action to appoint a new Vice President to the Board
of the La Porte Development
Corporation.
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
Budget
Agenda Date Requested: 25 April 2016
Source of Funds: N/A
Requested By: Scott D. Livingston
Account Number: N/A
Department: Administration/Economic Development
Amount Budgeted: N/A
Report: Resolution: Ordinance:
Amount Requested: N/A
Exhibit:
Budgeted Item: YES NO
Exhibit:
Exhibit:
Exhibit:
SUMMARY
Luis Garcia, President of Northern Safety and Industrial, started his business in La Porte,
Texas over twenty years ago under the name of Channel Safety and Marine Supply. The
business has been very successful and was recently acquired by Northern Safety and
Industrialin 2012.
Founded in 1983 by Salvatore Longo, Northern Safety and Industrial (Northern Safety),
headquartered in Frankfort, NY, is a national distributor of top quality safetyand industrial
supplies. Northern Safety distributes a wide variety of brand-name products, including3M,
Honeywell, DeWalt, Moldex, MSA, Ansell Healthcare, Von Drehle Paper, Manulatex,
Dexter-Russell Cutlery and countless others. Thecompany also developed its own line of
safety and industrial products underthe NS Brand name, which include its flagship brand, N-
Specs Safety Eyewear, Gloves, ActivGARDProtective Apparel, NS Respiratory Protection,
Head & Face Protection,ActivFlex Ergonomics, Fall Protection and several others. Northern
Safety distributes its products through multiplecatalog mailings and its inside and outside
sales force, as well as its fullyinteractive website.
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Northern Safety proposes to consolidate an existing facility in La Porte, TX, which has
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employees, with an existing facility in Pasadena, TX that has employees. Furthermore,
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Northern Safety would hire new employees at the beginning of the proposed project to create a
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single, 100,000 square foot facility with a total of employees at 359 Pike Court in the
Underwood Business Park in La Porte. Over the next five years, Northern Safety would retain a
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first right of refusal to obtain another 200,000 square feet for projected growth, relocate sales
70-80Gulf
positions, and hire an additional full time employees to create a 300,000 square foot
South Regional Headquarters140-150
with full time employees.
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All employees will receive 401k, dental, medical, and vision benefits. Medical, dental
and vison are paid by the company at68%. A 401k program along with education
assistance program are also included in theoverall benefits package.
Northern Safety has several options to place its Gulf South Regional Headquarters.The
proposed facility, regardless of its location, will require a limited amount of incentives to
ensure the success of the facility. A portion of thelocation decision will be based on the
values of the incentives offered to Northern Safety.
Staff Recommendation
Staff recommends that the 4B Board consider awarding an economic development incentive to
not to exceed $300,000
Northern Safety and Industrial for an amount .
Action Required by the La Porte Development Corporation Board:
Consider approval or other action authorizing staff to publish 60 day public notice of a public
27 June 2016
hearing, tentatively scheduled for 5:00 pm on Monday, , to consider awarding an
economic incentive grant to Northern Safety & Industrial, Inc. for an amount not to exceed
$300,000
.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
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