HomeMy WebLinkAbout06-27-16 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, VICENANCY OJEDA, VICE-PRESIDENT/b>
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
June 27, 2016June 27, 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)
(a)Consider approval or other action regarding minutes of the La Porte Development Consider approval or other action regarding minutes of the La Porte Development
Corporation Board meeting held on May 23, 2016 Corporation Board meeting held on May 23, 2016 -- P. Fogarty P. Fogarty
(b)Financial Report Financial Report -- M. Dolby M. Dolby
3.PUBLIC HEARING AND ASSOCIATED MATTERSPUBLIC HEARING AND ASSOCIATED MATTERS
(a)Public hearing to receive comments regarding proposed project of the La Porte Public hearing to receive comments regarding proposed project of the La Porte
Development Corporation in amount not to exceed $230,000.00 to award an economic Development Corporation in amount not to exceed $230,000.00 to award an economic
incentive to Northern Safety Company, Inc., for promotion of expanded business incentive to Northern Safety Company, Inc., for promotion of expanded business
enterprises, including consolidation of operations at 359 Pike Court in La Porte, Texas; enterprises, including consolidation of operations at 359 Pike Court in La Porte, Texas;
consider approval or other action authorizing La Porte Development Corporation project in consider approval or other action authorizing La Porte Development Corporation project in
an amount not to exceed $230,000.00 for Northern Safety Company, Inc., for promotion of an amount not to exceed $230,000.00 for Northern Safety Company, Inc., for promotion of
expanded business enterprises, including consolidation of operations at 359 Pike Court in expanded business enterprises, including consolidation of operations at 359 Pike Court in
La Porte, Texas and authorizing Board President Richard Warren to execute a La Porte, Texas and authorizing Board President Richard Warren to execute a
Development Agreement with Northern Safety Company, Inc. in connection with such Development Agreement with Northern Safety Company, Inc. in connection with such
project project -- T. Leach T. Leach
4.AUTHORIZATIONSAUTHORIZATIONS
(a)Consider approval or other action authorizing Staff to execute payment in the amount of Consider approval or other action authorizing Staff to execute payment in the amount of
$75,000.00 to ACT Independent Turbo Services, Inc., in accordance with terms of incentive $75,000.00 to ACT Independent Turbo Services, Inc., in accordance with terms of incentive
agreement agreement -- T. Leach T. Leach
(b)Consider approval or other action authorizing Board President Richard Warren to sign and Consider approval or other action authorizing Board President Richard Warren to sign and
execute a development agreement with Margaret Lindsey Russell for an enhancement grant execute a development agreement with Margaret Lindsey Russell for an enhancement grant
project in an amount not to exceed $25,000.00 for property located at 1026 S. 8th Street project in an amount not to exceed $25,000.00 for property located at 1026 S. 8th Street
La Porte, Texas La Porte, Texas -- T. Leach T. Leach
5.SET DATE FOR NEXT MEETING SET DATE FOR NEXT MEETING -- T. Leach T. Leach
6.Board member comments regarding matters appearing on agenda; Recognition of Board member comments regarding matters appearing on agenda; Recognition of
1
community members, city employees, and upcoming events; inquiry of staff regarding community members, city employees, and upcoming events; inquiry of staff regarding
specific factual information or existing policies.specific factual information or existing policies.
7.AdjournAdjourn
The La Porte Development Corporation Board reserves the right to meet in closed session on any The La Porte Development Corporation Board reserves the right to meet in closed session
on any
agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, agenda item should the need arise and if applicable pursuant to authorization by
Title 5, Chapter 551,
of the Texas Government Code (the Texas open meetings laws).of the Texas Government Code (the Texas open meetings laws).
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte
will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be received accommodations for persons attending public meetings. To better serve attendees,
requests should be received
24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATIONCERTIFICATION
I certify that a copy of the June 27, 2016, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the June 27, 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 June 21, 2016.Corporation was placed on the City Hall Bulletin Board on June 21, 2016.
Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary
2
RICHARD WARREN, PRESIDENT
MIKE CLAUSEN, BOARD MEMBER
RANDY WOODARD, BOARD MEMBER
SHELLEY FULLER, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT
JAY MARTIN, BOARD MEMBER
MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OF MAY 23, 2016
The City of La Porte Development Corporation Board met on May 23, 2016, at the City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas, 77571, 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 5:02 p.m. The following members of the
La Porte Development Corporation Board were present: Board members Fuller, Clausen, Woodard
and Ojeda. Absent: Board member Martin. Staff Present: Corby Alexander, Patrice Fogarty, Scott
Livingston, and Clark Askins. Board member Engelken arrived at 5:12 p.m.
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 regarding minutes of the La Porte Development Corporation
Board meeting held on April 25, 2016 – P. Fogarty
(b)Receive Financial Report – S. Livingston
(c)Consider approval or other action authorizing Staff to execute payment in the amount of
$18,091.56 to 4 Ever Clean Pool Chemical Xo., LLC., at 101 S. Iowa Street La Porte, Texas for
completion of enhancement grant project, in accordance with terms of incentive agreement – S.
Livingston
Board member Clausen moved to approve the Consent Agenda items pursuant to staff
recommendations. Board member Fuller seconded. MOTION PASSED UNANIMOUSLY 5/0.
3. DISCUSSION AND POSSIBLE ACTION
(a)Consider approval or other action authorizing Board President Richard Warren to sign and
execute an incentive agreement with “Lawrence W. Maher Jr., Family Trust” in connection with
an enhancement grant project in an amount not to exceed $17,045.50, for property located at
505 W. Fairmont Parkway, La Porte, Texas – S. Livingston
Economic Development Coordinator Scott Livingston presented a summary.
Board member Clausen moved to authorize Board President Richard Warren to sign and execute an
incentive agreement with “Lawrence W. Maher Jr., Family Trust” in connection with an enhancement
Page 1 of 2
May 23, 2016, La Porte Development Corporation Board Minutes
3
grant project in an amount not to exceed $17,045.50, for property located at 505 W. Fairmont
Parkway, La Porte, Texas. Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0.
(b)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 and discussed the
outcome of the online survey created to poll each Board member’s interest in proceeding with
implementing any ideas that were introduced and/or discussed during the course of the meeting held on
March 31, 2016.
Board member Woodard asked how much it will cost to build a new structure for restroom facilities
at Five Points. Assistant City Manager Traci Leach responded $150,000.00 - $200,000.00. Board
member Woodard asked why a weather landing system is included in the budget. City Manager Corby
Alexander advised it is a follow-up from previous administration.
Board member Ojeda asked how it came about that 123 additional parking spaces at the baseball
park were recommended. Economic Development Coordinator Scott Livingston responded the City
has land for spaces, and it is an estimate that was available from the Parks and Recreation
Department.
4. SET DATE FOR NEXT MEETING
Board members set the next meeting dates Monday, June 27, 2016, at 5:00 p.m. Board member
Woodard advised he will not be in attendance at the meeting on June 27, 2016.
5. BOARD MEMBER COMMENTSregarding 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.
6. ADJOURN
There being no further business, Board member Engelken moved to adjourn the meeting at 5:46 p.m.
Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0.
Respectfully submitted,
____________________________________
Patrice Fogarty, City Secretary
Passed and approved on this 27th day of June, 2016.
____________________________________
President Richard Warren
Page 2 of 2
May 23, 2016, La Porte Development Corporation Board Minutes
4
grant project in an amount not to exceed $17,045.50, for property located at 505 W. Fairmont
Parkway, La Porte, Texas. Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0.
(b)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 and discussed the
outcome of the online survey created to poll each Board member’s interest in proceeding with
implementing any ideas that were introduced and/or discussed during the course of the meeting held on
March 31, 2016.
Board member Woodard asked how much it will cost to build a new structure for restroom facilities
at Five Points. Assistant City Manager Traci Leach responded $150,000.00 - $200,000.00. Board
member Woodard asked why a weather landing system is included in the budget. City Manager Corby
Alexander advised it is a follow-up from previous administration.
Board member Ojeda asked how it came about that 123 additional parking spaces at the baseball
park were recommended. Economic Development Coordinator Scott Livingston responded the City
has land for spaces, and it is an estimate that was available from the Parks and Recreation
Department.
4. SET DATE FOR NEXT MEETING
Board members set the next meeting dates Monday, June 27, 2016, at 5:00 p.m. Board member
Woodard advised he will not be in attendance at the meeting on June 27, 2016.
5. BOARD MEMBER COMMENTSregarding 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.
6. ADJOURN
There being no further business, Board member Engelken moved to adjourn the meeting at 5:46 p.m.
Board member Ojeda seconded. MOTION PASSED UNANIMOUSLY 6/0.
Respectfully submitted,
____________________________________
Patrice Fogarty, City Secretary
Passed and approved on this 27th day of June, 2016.
____________________________________
President Richard Warren
Page 2 of 2
May 23, 2016, La Porte Development Corporation Board Minutes
5 5
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
June 27, 2016June 27, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
N/AN/A
Traci LeachTraci LeachSource 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. Notice of published Public Hearing Notice of published Public Hearing
2. Development Agreement Development Agreement
3. Project Scorecard Project Scorecard
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
On April 25, 2016, the Board authorized staff to publish a public hearing notice for an economic development On April 25, 2016, the Board authorized staff to publish a public hearing
notice for an economic development
incentive in an amount not to exceed $300,000 for Northern Safety Company, Inc. Since that time, staff has been incentive in an amount not to exceed $300,000 for Northern Safety Company,
Inc. Since that time, staff has been
communicating with Northern Safetycommunicating with Northern Safetys representatives to finalize the scope of the project and draft a development s representatives to finalize the
scope of the project and draft a development
agreement.
Initial estimates indicated that this project would generate sales tax revenues and taxable business Initial estimates indicated that this project would generate sales tax revenues and
taxable business
personal/inventory property in amounts that would yield a 2.2 year payback on a $300,000 LPDC incentive. As personal/inventory property in amounts that would yield a 2.2 year payback
on a $300,000 LPDC incentive. As
discussions progressed, estimates regarding revenue were revised by the company. Based on the revised project discussions progressed, estimates regarding revenue were revised by the
company. Based on the revised project
estimates, staff is recommending, and the Company has agreed to, a modified LPDC incentive of $230,000. The estimates, staff is recommending, and the Company has agreed to, a modified
LPDC incentive of $230,000. The
project includes an economic development incentive in an amount not to exceed $230,000 within a fiveproject includes an economic development incentive in an amount not to exceed $230,000
within a five--year period year period
and allocated according to the following terms:and allocated according to the following terms:
Payments of $50,000 (Payment #1 of 5), $50,000 (#2 of 5), $40,000 (#3 of 5), $40,000 (#4 of 5), and Payments of $50,000 (Payment #1 of 5), $50,000 (#2 of 5), $40,000 (#3 of 5), $40,000
(#4 of 5), and
$50,000 (#5 of 5); and$50,000 (#5 of 5); and
120 full employment, rather than 140, phased in over time; and120 full employment, rather than 140, phased in over time; and
Added business personal property and inventory taxable value of $1.25 million, as opposed to $2.5 million; Added business personal property and inventory taxable value of $1.25 million,
as opposed to $2.5 million;
and
New, annual taxable retail sales of $1.5 million for payment #3 and $2.5 million for payments #4 and 5; andNew, annual taxable retail sales of $1.5 million for payment #3 and $2.5 million
for payments #4 and 5; and
Minimum five (5) year lease, andMinimum five (5) year lease, and
The City will support the companyThe City will support the companys application to the Texas Enterprise Zone Program, Texas Skills s application to the Texas Enterprise Zone Program,
Texas Skills
Development Fund, and any other StateDevelopment Fund, and any other State--sponsored incentive programs. sponsored incentive programs.
Each payment identified above is contingent upon Northern Safety meeting specific performance benchmarks and Each payment identified above is contingent upon Northern Safety meeting
specific performance benchmarks and
providing evidence of such performance to the Board. With the revised project estimates, the payback period is providing evidence of such performance to the Board. With the revised project
estimates, the payback period is
4.65 years.
Staff recommends approval of the development agreement with Northern Safety Company, Inc for an economic Staff recommends approval of the development agreement with Northern Safety Company,
Inc for an economic
development incentive in an amount not to exceed $230,000.development incentive in an amount not to exceed $230,000.
6 6
Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation:
1.Conduct Public Hearing to receive comments to consider awarding an economic incentive to Northern Conduct Public Hearing to receive comments to consider awarding an economic incentive
to Northern
Safety Company, Inc. to retain and create primary jobs, and support the development, retention, and Safety Company, Inc. to retain and create primary jobs, and support the development,
retention, and
expansion of manufacturing and industrial facilities, as well as regional or national corporate headquarters expansion of manufacturing and industrial facilities, as well as regional
or national corporate headquarters
facilities.facilities.
2.Consider approval or other action authorizing the Board President to execute a Development Agreement Consider approval or other action authorizing the Board President to execute a
Development Agreement
with Northern Safety Company, Inc. for an economic development incentive in an amount not to exceed with Northern Safety Company, Inc. for an economic development incentive in an amount
not to exceed
$230,000.$230,000.
Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda
Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate
7 7
THURSDAY, APRIL 28, 2016 THE BAY AREA OBSERVER
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of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m. on the 27th day of of the City of La Porte, Texas will conduct a public hearing at 5:00 p.m. on the 27th day
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ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE
DEVELOPMENT COPRPORATION, AND NORTHERN SAFETY COMPANY, INC., A
NEW YORK CORPORATION, FOR USE OF TYPE B DEVELOPMENT CORPORATION
SALES TAX FUNDS
th
THIS AGREEMENT made by and entered into this 27 day of June 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 Northern Safety Company, Inc., a New York 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 New York based corporation, which is a national
distributor of top quality safety and industrial supplies, and which employs positions
classified as primary jobs, as the term “primary jobs” is defined in Chapter 501 of the
Texas Local Government Code; and
WHEREAS, Recipient is currently identified in the Sales Tax Analysis and
Reporting Service (“STARS Report”) for Quarter #4 of 2015 as the “Northern Safety
Company” at 301 E. Main Street in La Porte, TX; and
WHEREAS, Recipient currently utilizes facilities for its business operations at 301
E. Main Street in La Porte, Texas and at 1475 Sam Houston Parkway, Pasadena, Texas;
and
WHEREAS, Recipient wishes to relocate and consolidate its current business
operations in Pasadena and La Porte to a new site at 359 Pike Court, La Porte, Texas
(“Business Site”), where it will make improvements of at least $140,000.00 to the
Business Site, which it will lease for a minimum of five (5) years, to accommodate
increasing business demand, creating an estimated increase to the business personal
property tax base valuation in La Porte of $1,25,000.00, generating a minimum of
$2,500,000.00 in new, annual taxable sales at site, and which operation is anticipated to
employ an estimated one hundred and twenty (120) full time employees; and
WHEREAS, Recipient has requested that LPDC provide financial incentives
towards the proposed consolidation of Recipient’s business operations to the Business
Site, under a qualifying project of the LPDC for the creation and retention of primary jobs,
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
contribute to 1) the creation or retention of primary jobs, and 2) will be suitable for the
development, retention, or expansion of manufacturing and industrial facilities, as well as
regional or national corporate headquarters facilities.
1
9
WHEREAS, Texas law and the by-laws of the LPDC require that certain
expenditures and projects by the LPDC be approved by the governing body of the City;
and whereas the LPDC Board has duly approved such project and the expenditures for
same have been authorized by the La Porte City Council; and
NOW THEREFORE, in consideration of the covenants and conditions stated
herein, and in consideration of the mutual benefits that will accrue to each of the parties
hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed
and do hereby agree as follows:
ARTICLE I
In consideration of Recipient consolidating its business operations at the Business
Site, which proposal was considered in that certain public hearing authorizing a proposed
project for the expenditure of LPDC funds for the creation and retention of primary jobs
and the development, retention, or expansion of manufacturing and industrial facilities,
held before the LPDC on 27 June 2016, LPDC agrees to provide Recipient an incentive
package consisting of cash payments in a total sum not to exceed $230,000.00, to be
distributed in five increments of $50,000.00,$50,000.00, $40,000.00,$40,000.00, and
$50,000.00, with each distribution conditioned on 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 all of the following items by 31
January 2017:
(1) Copy of a properly executed commercial lease agreement for
Recipient’s lease of at least 100,000 square feet of space at 359 Pike
Court, La Porte, Texas for a minimum five (5) year primary term.
(2) Proof of Certificate of Occupancy issued by the City of La Porte, Texas
to Recipient for completion of improvements at the Business Site.
(3) Proof of minimum capital investment in the amount of at least
$140,000.00 toward real and/or business personal property
improvements of the Business Site, which shall be verified by
submission of proof of all of the following:
a) Copies all applicable invoices and receipts of payment;
b) Pictures showing proof of completed improvements;
c) Copies of all applicable certificates, permits, and final
inspection reports required by the City of La Porte, Texas; and
(4) Proof of employment of at least fifty-five (55) full time employees at
the Business Site, which shall be established by submission to LPDC,
by the said deadline, of the following:
2
10
a) 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), and
b) A signed and notarized statement executed by any authorized
officer or director of Recipient affirming that fifty-five (55) full
time employees are employed by Recipient for positions
permanently located at the Business Site.
In no case will the $50,000.00 payment be made by LPDC if written proof of all
aforementioned items are not delivered to and received by the LPDC by
31 January 2017. In the case that written proof of all aforementioned items
are presented to LPDC on or before said 31 January 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 said items outlined in this Section A,
from Recipient. Upon verification of the completion of all three aforementioned
items, as reflected by formal vote of the LPDC Board of Directors that Recipient
has satisfied the requirements of this paragraph, LPDC will then remit the
$50,000.00 to Recipient within a period not to exceed thirty (30) days.
B. A cash incentive payment in an amount equal to $50,000.00 will be distributed
to Recipient by LPDC, upon receipt by LPDC of each of the following items by
31 October 2017:
(1) Receipt of documentation evidencing that the total taxable value of all
property of Recipient, at the conclusion of Recipient’s consolidation of
its business operations at the Business Site, including interests in all
business personal property owned by the Recipient, as well as
equipment and inventory, is assessed at a minimum value of one and
a quarter million dollars ($1,250,000.00) by the Harris County
Appraisal District for tax year 2017.
(2) Proof of employment of at least sixty-five (65) full-time employees at
the Business Site, which shall be established by submission to LPDC
by the said deadline, of the following:
a) 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); and
b) A signed and notarized statement executed by any authorized
officer or director of Recipient affirming that sixty-five (65) full
time employees are employed by Recipient for positions
permanently located at the Business Site.
In no case will the $50,000.00 payment be made by LPDC if written proof of all
3
11
aforementioned items is not delivered to and received by LPDC by 31 October
2017. In the case that written proof of all aforementioned items is presented
to LPDC on or before said 31 October 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 said items outlined in this Section B, by LPDC from
Recipient. Upon verification of the completion of all aforementioned items, 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.
C. A cash incentive payment in an amount equal to $130,000.00 will be distributed
to the Recipient by the LPDC, in three annual installments of $40,000.00,
$40,000.00 and $50,000.00, based on the following criteria:
(1) For the twelve (12) month period beginning 1 July 2017 and ending 30
June 2018, (Year #1 of Operation), the first annual installment of
$40,000.00 will be distributed to the Recipient by the LPDC, upon
receipt by the LPDC of all required items as outlined below, by 31
October 2018:
a) Documentation evidencing that the total taxable value of all
property of the Recipient, at the Business Site, including
interests in all business personal property owned by the
Recipient, as well as equipment and inventory, is assessed at
a minimum value of one and a quarter million dollars
($1,250,000.00) by the Harris County Appraisal District for tax
year 2018; and
b) Proof of employment of at least seventy-five (75) full-time
employees at the Business Site, which shall be established by
submission to LPDC, by the said deadline, of the following:
i. 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),
and
A signed and notarized statement executed by any
authorized officer or director of the Recipient affirming
thatseventy-five(75) full time employees are employed
by Recipient for positions permanently located at the
Business Site; and
c) Documentation evidencing that the Recipient generates taxable
sales from the Business Site that is at least $1,500,000.00
more than the amount of taxable sales generated from the
4
12
st
beginning of the 1 Quarter of 2015 through and including the
th
4 Quarter of 2015 for activity at Recipient’s business at 301 E.
Main Street in La Porte, Texas (“Baseline Sales Tax Revenue
Amount” herein) as reflected in the Sales Tax Analysis and
Reporting Service (STARS Report for Quarter #4 of 2015).
In no case will the $40,000.00 payment be made by LPDC if written
proof of all aforementioned items is not delivered to and received by
LPDC by 31 October 2018. In the case that written proof of all
aforementioned items is presented to LPDC on or before said 31
October 2018 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 by LPDC from Recipient. Upon verification of the
completion of all aforementioned items, 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 $40,000.00
to Recipient within a period not to exceed thirty (30) days.
(2) For the twelve (12) month period beginning 1 July 2018 and ending 30
June 2019 (Year #2 of Operation) the second annual installment of
$40,000.00 will be distributed to the Recipient by the LPDC, upon
receipt by the LPDC of all required items as outlined below, by 31
October 2019:
a) Documentation evidencing that the total taxable value of all
property of the Recipient at the Business Site, including
interests in all business personal property owned by the
Recipient, as well as equipment and inventory, is assessed at
a minimum value of one and a quarter million dollars
($1,250,000.00) by the Harris County Appraisal District for tax
year 2019; and
b) Proof of employment of at least one hundred (100) full-time
employees at the Business Site, which shall be established by
submission to LPDC, by the said deadline, of the following:
i. 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),
and
ii. A signed and notarized statement executed by and
authorized officer or director of the Recipient affirming
thatone hundred and forty (140) full time employees
are employed by Recipient for positions permanently
located at the Business Site; and
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13
c) Documentation evidencing that the Recipient generates taxable
sales from the Business Site that is at least $2, 500,000.00
more than the amount of taxable sales generated from the
st
beginning of the 1 Quarter of 2015 through and including the
th
4 Quarter of 2015 for activity at Recipient’s business at 301 E.
Main Street in La Porte, Texas (“Baseline Sales Tax Revenue
Amount” herein) as reflected in the Sales Tax Analysis and
Reporting Service (STARS Report for Quarter #4 of 2015).
In no case will the $40,000.00 payment be made by LPDC if written
proof of all aforementioned items is not delivered to and received by
LPDC by 31 October 2019. In the case that written proof of all
aforementioned items is presented to LPDC on or before said 31
October 2019 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 by LPDC from Recipient. Upon verification of
the completion of all aforementioned items, 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 $40,000.00
to Recipient within a period not to exceed thirty (30) days.
3) For the twelve (12) month period beginning 1 July 2019 and ending 30
June 2020(Year #3 of Operation), the final annual installment of
$50,000.00 will be distributed to the Recipient by the LPDC, upon
receipt by the LPDC of all required items as outlined below, by 31
October 2020:
a) Documentation evidencing that the total taxable value of all
property of the Recipient at the Business Site, including
interests in all business personal property owned by the
Recipient, as well as equipment and inventory, is assessed at
a minimum value of one and a quarter million dollars
($1,250,000.00) by the Harris County Appraisal District for tax
year 2020; and
b) Proof of employment of at least one hundred and twenty (120)
full-time employees at the Business Site, which shall be
established by submission to LPDC, by the said deadline, of the
following:
i. 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),
and
ii. A signed and notarized statement executed by an
authorized officer or director of the Recipient affirming
thatone hundred and twenty (120) full time
6
14
employees are employed by Recipient for positions
permanently located at the Business Site; and
c) Documentation evidencing that the Recipient generates taxable
sales from the Business Site that is at least $2,500,000.00
more than the amount of taxable sales generated from the
st
beginning of the 1 Quarter of 2015 through and including the
th
4 Quarter of 2015 for activity at Recipient’s business at 301 E.
Main Street in La Porte, Texas (“Baseline Sales Tax Revenue
Amount” herein) as reflected in the Sales Tax Analysis and
Reporting Service (STARS Report for Quarter #4 of 2015).
In no case will the $50,000.00 payment be made by LPDC if written
proof of all aforementioned items is not delivered to and received by
st
LPDC by 31 October 2020. In the case that written proof of all
st
aforementioned items is presented to LPDC on or before said 31
October 2020, 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 by LPDC from Recipient. Upon verification of the completion of
all aforementioned items, 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.
D. Notwithstanding the foregoing, if for any Year of Operation, as that term is
defined in this Section, Recipient provides proof that all business personal
property owned by the Recipient at the Business Site, including equipment and
inventory, is assessed at a minimum value of one and a quarter million dollars
($1,250,000.00) by the Harris County Appraisal District for the given tax year;
and Recipient employs at least minimum employees as laid out above of 55
year one, 65 year two, 75 year three, 100 year four and 120 in the final year
of full-time employees at the Business Site; and the Recipient generates
taxable sales that do not meet or exceed the Baseline Sales Tax Revenue
Amount by $2,5,000,000.00, then the Recipient will only be eligible for a pro
rata share of the proposed annual payment based on the percentage of the
achieved sales tax. but the Recipient’s annual taxable sales do meet or exceed
the Baseline Sales Tax Revenue Amount by at least 80% of the taxable sales
identified in each payment under this Section, then in that case Recipient
shall be entitled to a pro rata share of the 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 80% in
a given Year of Operation, then Recipient shall be entitled to no portion of the
installment, for that Year of Operation.
In accordance with the preceding paragraph, if after the conclusion of a Year
of Operation, but no later than 120 days after the conclusion of the Year of
Operation, the Recipient submits proof that it exceeded the Baseline Sales Tax
Revenue Amount as reflected in the Sales Tax Analysis and Reporting Service
(STARS Report for Quarter #4 of 2015) by at least $2,000,000.00, but less than
$2,500,000.00, then in that event the LPDC shall convene a meeting of the
7
15
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 proposed payment for that year
an amount as applicable, to Recipient within a period not to exceed thirty (30)
days.
ARTICLE II
All funds received as herein provided shall be solely for the purpose of reimbursing
Recipient in the consolidation of its business operations at its La Porte site, and Recipient
further acknowledges that the incentive grant provided for herein is tied to a project of the
LPDC for the creation and retention of primary jobs, and that Recipient’s proposed
expansion at its La Porte site will be suitable for the development, retention, or expansion
of manufacturing and industrial facilities, as authorized by Texas Local Government Code
chapters 501 and 505.
ARTICLE III
Disbursement and/or retention of the cash incentive identified in Article I of this
Agreement shall be made as follows:
A. Disbursement shall be made to Recipient, subject to the satisfaction of the
conditions precedent or conditions subsequent contained within Article I of this
Agreement.
B. LPDC’s obligation to Recipient shall not exceed $230,000.00, nor shall LPDC
be obligated to reimburse Recipient for requests delivered to LPDC after the
termination of this Agreement.
ARTICLE IV
Recipient understands that the funds paid to Recipient by the LPDC are derived
from tax revenues collected under Texas Local Government Code 505.252, and that
LPDC has estimated the tax revenues to be collected during the term of this Agreement.
Recipient further understands, acknowledges, and agrees that if the tax revenue actually
collected is less than 90% of the estimated tax revenues to be collected in any fiscal year
during the term of this Agreement, LPDC will be under no obligation to provide funding to
Recipient for any payment or payments during or after the fiscal year for which there is a
revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La
Porte designated commitment account for purposes of this Agreement.
ARTICLE V
In the event of any default by Recipient hereunder, including, but not limited to,
use of the funds provided herein for purposes other than those stated in Article I of this
Agreement, LPDC may cease all future payments hereunder and terminate this
8
16
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 unspent and unobligated LPDC funds previously paid to Recipient. In each such
case, the previously paid cash payment or payments shall be remitted to the LPDC within
sixty (60) of receipt of written demand for same.
Any breach of this covenant shall be grounds for immediate termination of the
distribution of funds.
ARTICLE VI
The term of this Agreement is for a period beginning on the date of approval by
LPDC and ending five (5) years later.
ARTICLE VII
All funds provided by the LPDC pursuant to this Agreement may be used only for
the purposes authorized by this Agreement. Notwithstanding Article I, above, City shall
be under no obligation to make any fund disbursements if the reports required under this
Article have not been delivered to the LPDC.
ARTICLE VIII
This Agreement does not create any joint venture, partnership, or agency
relationship between the LPDC and 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.
ARTICLE IX
Recipient agrees to assume and does hereby assume all responsibility and liability
for damages sustained by persons or property, whether real or asserted, by or from the
carrying on of work by Recipient or in the performance of services performed and to be
performed by Recipient hereunder. Recipient covenants and agrees to, and does hereby
indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and
employees 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.
ARTICLE X
9
17
This Agreement may be amended by the mutual agreement of the Parties hereto
in writing to be attached to and incorporated into this Agreement.
ARTICLE XI
Recipient shall adhere to all local, state, and federal laws and regulations that may
affect its actions made pursuant to this Agreement, and shall maintain in effect during the
term of this Agreement any and all federal, state, and local licenses and permits which
may be required of Recipients generally.
ARTICLE XII
Recipient may not assign this Agreement without the written consent of LPDC.
ARTICLE XIII
The waiver by LPDC of any breach of any term, condition, or covenant herein
contained shall not be deemed a waiver of any subsequent breach of the same, or any
other term, condition, or covenant.
ARTICLE XIV
The obligations of the Parties to this Agreement are performable in Harris County,
Texas and if legal action is necessary to enforce same, venue shall lie in Harris County,
Texas.
ARTICLE XV
This Agreement shall be governed by and construed in accordance with the laws
of the State of Texas.
ARTICLE XVI
This Agreement may be executed in triplicate, each of which shall be deemed an
original and constitute one and the same instrument.
ARTICLE XVII
Neither LPDC nor Participant shall be required to perform any term, condition, or
covenant in this Agreement so long as such performance is delayed or prevented by force
majeure, which shall mean Acts of God, civil riots, floods, and any other cause not
reasonably within the control of LPDC or Recipient except as herein provided, and which
by the exercise of due diligence LPDC or Recipient is unable, wholly or in part, to prevent
or overcome.
ARTICLE XVIII
10
18
In submitting this application, the applicant whose signature appears below affirms
its intent and commitment to comply in full with Section 2264.052 of the Government
Code and certifies that it does not and will not knowingly employ an undocumented worker
during any time period associated with the public subsidy for which the application is
being submitted. The applicant further certifies its understanding and agreement that if it
is convicted of a violation of 8 U.S.C. Section 1324a(f), providing for civil and/or criminal
penalties for engaging in a pattern or practice of knowingly hiring or continuing to employ
unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the
rate and according to the terms of the agreement signed under Section 2264.053 of the
Government Code, not later than the 120th day after the date the city notifies the business
of the violation.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto,
superceding 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.
LA PORTE DEVELOPMENT CORPORTION
__________________________
Richard Warren, President
___________________
Date
ATTEST
___________________________
Secretary of the Corporation
NORTHERN SAFETY COMPANY, INC., a New York Corporation
By:
_________________________________
_________________________
11
19
Date
ATTEST
________________________________
12
20
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEMITEM
June 27, 2016June 27, 2016AppropriationAppropriation
Agenda Date Requested:Agenda Date Requested:
Fund 038Fund 038
Traci LeachTraci LeachSource of Funds:Source of Funds:
Requested By:Requested By:
Account Number:Account Number:
Economic Development/TourismEconomic Development/Tourism
Department:
$426,000.00$426,000.00
Amount Budgeted:Amount Budgeted:
Report:Resolution:Resolution:Ordinance:Ordinance:
$ 75,000.00$ 75,000.00
Amount Requested:Amount Requested:
Exhibits:
Budgeted Item:Budgeted Item:YESYESNONO
1. Required C.O's received Required C.O's received
2. ACT Turbo Update, Presentation ACT Turbo Update, Presentation
3. Development Agreement Development Agreement
SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS
On 22 September 2014, both the ED Board and City Council approved an economic development incentive for On 22 September 2014, both the ED Board and City Council approved an economic
development incentive for
ACT Independent Turbo Services, Inc.ACT Independent Turbo Services, Inc.((ACT) in the amount of $426,000. The ED Board approved and ACT) in the amount of $426,000. The ED Board
approved and
executed the development agreement for this project on 17 November 2014. executed the development agreement for this project on 17 November 2014.
According to the terms of the development agreement, ACT may receive three separate payments of up to According to the terms of the development agreement, ACT may receive three separate
payments of up to
$75,000, $185,000, and $166,000 over a three year period. In order to qualify for the first payment of $75,000, $75,000, $185,000, and $166,000 over a three year period. In order to
qualify for the first payment of $75,000,
ACT must:
Complete all proposed construction of both a (a) business office building, and (b) industrial Complete all proposed construction of both a (a) business office building, and (b) industrial
manufacturing/repair building,manufacturing/repair building,
Submit proof of a Certificate of Occupancy for both (a) and (b) issued by the City of La Porte, andSubmit proof of a Certificate of Occupancy for both (a) and (b) issued by the City
of La Porte, and
Submit proof of a Certificate of Occupancy by/before 1 June 2016. Submit proof of a Certificate of Occupancy by/before 1 June 2016.
Staff has evaluated the required documentation and recommends execution of payment in the amount of $75,000 Staff has evaluated the required documentation and recommends execution of
payment in the amount of $75,000
to ACT Independent Turbo Services, Inc.ACT Independent Turbo Services, Inc.per the terms of the enclosed economic development agreement. per the terms of the enclosed economic development
agreement.
The enclosed file called The enclosed file called Pictures of Completed ConstructionPictures of Completed Constructionshows pictures of the companyshows pictures of the companys
new facility in s new facility in
La Porte, and representatives of the company will be available to answer any questions that the Board may have La Porte, and representatives of the company will be available to answer
any questions that the Board may have
about the project. 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 in the amount of $75,000.00 to Consider approval or other action to authorize staff to execute payment in the
amount of $75,000.00 to ACT ACT
Independent Turbo Services, Inc.Independent Turbo Services, Inc.in accordance with terms of incentive agreement.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
22 22
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24 24
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26 26
27 27
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31 31
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43 43
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM
Budget
Agenda Date Requested: 27 June 2016
Source of Funds: CIP #015-9892-993
Requested By: Traci Leach
Account Number:
Department: Administration/Economic Development
Amount Budgeted: $240,835.31
Report: Resolution: Ordinance:
Amount Requested: $25,000.00
Exhibit: Application, Blondie’s, 31 May 2016
Budgeted Item: YES NO
Exhibit: Bid Sheet Summary
Exhibit: Enhancement Grant Evaluation Summary
Exhibit: Development Agreement – Signed
SUMMARY & RECOMMENDATION
The Enhancement Grant Review Committee reviewed an Enhancement Grant Application from
th
Blondies Bar & Grill (dba MARGARET LINDSEY RUSSELL)at 1026 S. 8 Street in
La Porte, Texas. The applicant collected bids to complete each of three 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) Install patio and building wrap-around covers/awnings -- $21,300.00
2) Paint the sides and roof of the building -- $ 5,965.00
3) Re-pave and re-stripe the parking lot -- $25,899.00
TOTAL $53,164.00
As a result of the lowest bids for each project, the total expenditure proposed to be made by the
applicant is estimated to be $53,164.00. Although 50% of this sum is $26,582.00, the maximum
amount that the applicant might receive without petitioning the City Council for additional
funding is $25,000.00. Therefore, in the interest of time, the applicant is requesting the reduced
sum of $25,000.00. Please refer to the Bid Sheet Summary for project bid 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 3.90 out of a
maximum possible score of 5.0. Please refer to the enclosed Evaluation Summary for
additional details.
In the Budget block at the top of the page, $240,835.31 represents the amount of uncommitted
1
44 44
funds in the enhancement grant account and includes a recent payment in the amount of
$18,091.56 to the 4 Ever Clear Pool Chemical Co., LLC, plus a commitment of $17,045.50 to
the Lawrence W Maher Jr Family Trust.
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 MARGARET LINDSEY RUSSELL for an enhancement grant
for an amount not to exceed $25,000.00 to be awarded at the completion of the project.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager
2
45 45
46 46
47 47
48 48
49 49
50 50
51 51
52 52
53 53
Conceptual
Renderings
54 54
55 55
56 56
57 57
58 58
59 59
60 60
61 61
62 62
63 63
&
64 64
65 65
66 66
67 67
68 68
69 69
70 70
71 71
72 72
73 73
74 74
75 75
Total
$53,164.00$26,582.00
$25,000.00
Project
Paint
$9,585.00$5,965.00
$22,500.00
Paving
Grill
77571
$47,652.00$30,875.00
$25,899.00
Street
Summary
Bar
8th
Texas
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76 76
Porte,
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$21,300.00
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