HomeMy WebLinkAbout07-17-17 Meeting of the La Porte Development Corporation BoardRICHARD WARREN, PRESIDENT
SHELLEY FULLER, BOARD MEMBER
VENESSA GUERRERO, BOARD MEMBER
CHUCK ENGELKEN, BOARD MEMBER
DANNY EARP, BOARD MEMBER
RANDY WOODARD, BOARD MEMBER
NANCY OJEDA, VICE-PRESIDENT
CITY 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
July 17, 2017, 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 AG E N DA(A11 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 June 12, 2017 - P. Fogarty
(b) Receive Financial Report - M. Dolby
3. DISCUSSION AND POSSIBLE ACTION
(a) Discussion and possible action regarding report received from the Economic Alliance
Houston Port Region - T. Leach
(b) Discussion and possible action regarding an extension of the development agreement
between the La Porte Development Corporation and Fischer's Hardware, Inc. - T. Leach
(c) Discussion and possible action regarding proposed FY 2017-2018 budget of the La Porte
Development Corporation Board - T. Leach
(d) Discussion and possible action regarding economic development incentive request from
LPH Properties for renovation of former Port Theater - T. Leach
4. SET DATE FOR NEXT MEETING - T. Leach
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 July 17, 2017 , agenda of items to be considered by the Board of the La Porte De\,elopment
Corporation was placed on the City Hall Bulletin Board on July , 2017.
Patrice Fogarty, City Secretary
RICHARD WARREN, PRESIDENT
NANCY OJEDA, VICE-PRESIDENT
CHUCK ENGELKEN, BOARD MEMBER
VENESSA GUERRERO, BOARD
MEMBER
DANNY EARP, BOARD MEMBER
RANDY WOODARD, BOARD MEMBER
SHELLEY FULLER, BOARD MEMBER
MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OF JUNE 12, 2017
The City of La Porte Development Corporation Board met on June 12, 2017, at the City Hall Council Chambers,
604 West Fairmont Parkway, La Porte, Texas, 77571, at 5:10 p.m. to consider the following items of business:
CALL TO ORDER
President Richard Warren called the meeting to order at 5:11 p.m. Other members of the La Porte
Development Corporation Board present: Board members Fuller, Earp, Guerrero, Woodard, Engelken
and Ojeda. Staff Present: Corby Alexander, Traci Leach, Patrice Fogarty 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 regarding minutes of the La Porte Development Corporation Board
meeting held on May 22, 2017 — P. Fogarty
(b) Consider approval or other action designating projects of the La Porte Development Corporation and
authorize Staff to publish public hearing notice for August 12, 2017 — T. Leach
Board member Engelken moved to approve the Consent Agenda items pursuant to staff
recommendations. Board member Fuller seconded the motion. MOTION PASSED UNANIMOUSLY 7/0.
3. PUBLIC HEARING AND ASSOCIATED MATTERS
(a) Public hearing to receive comments regarding proposed project of the La Porte Development
Corporation for acquisition of real property located at 1218 S. Broadway for park/recreation purposes,
in the amount of $ 57,372.00; consider approval or other action authorizing project of the La Porte
Development Corporation in the amount of $57,372.00 for acquisition of real property located at 1218
S. Broadway for park/recreation purposes — T. Leach
The public hearing opened at 5:13 p.m.
Assistant City Manager Traci Leach presented a summary. There were no public comments.
The public hearing closed at 5:14 p.m.
Page 1 of 2
June 12, 2017, La Porte Development Corporation Board Minutes
Board member Engelken made a motion to authorize a project of the La Porte Development Corporation
in the amount of $57,372.00 for acquisition of real property located at 1218 S. Broadway for
park/recreation purposes. Board member Fuller seconded the motion. MOTION PASSED
UNANIMOUSLY 7/0.
4. DISCUSSION AND POSSIBLE ACTION
(a) Discussion and possible action regarding project for installation of sidewalks along Main Street — T.
Leach
Assistant City Manager Traci Leach presented a summary.
Committee Member Earp commented he would like to see an architectural rendering.
Committee Member Ojeda commented she likes the idea of combining Option B (Sidewalk
construction in locations where none currently exist; ADA ramps) and Option C (Slab jacking to level
existing sidewalks and repairing/installing ADA ramps).
Board member Ojeda made a motion to proceed with a public hearing in an amount of $14,250.00 for
sidewalk repairs on Main Street. Board member Fuller seconded the motion. MOTION PASSED
UNANIMOUSLY 7/0.
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.
Assistant City Manager Traci Leach advised Board members that she would like to meet on July 17,
2017, to go over budget items.
President Warren asked for an update on the bids for restrooms at Five Points. Ms. Leach reported two
proposals have been received, and Staff will be evaluating the proposals.
6. ADJOURN
There being no further business, Board member Engelken moved to adjourn the meeting at 5:35 p.m.
Board member Fuller seconded the motion. MOTION PASSED UNANIMOUSLY 7/0.
Respectfully submitted,
Patrice Fogarty, City Secretary
Passed and approved on this the 17th day of July, 2017.
President Richard Warren
Page 2 of 2
June 12, 2017, La Porte Development Corporation Board Minutes
This is an Unaudited Statement.
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 413 Sales Tax)
Unaudited Beginning Fund Balance 9/30
Plus Year to Date Revenues:
1/2 Cent Sales Tax
Interest Income
Total Revenues
Equals Total Resources
Less Year to Date Expenditures:
Payroll
Supplies
Services & Charges (Memberships, Training, Advertising, Legal, Utilities)
Incentive Grants
Debt Service Transfer
Capital Projects Transfers
Total Expenditures
Estimated Year to Date Fund Balance as of 05/31/2017
Commitments
Pipeline Grill
Fischer's Hardware
Richardlndustrial Group
Debt Service Reserve
Adjusted Year to Date Fund Balance
Projection Through Year End
Adjusted Year to Date Fund Balance
Plus: Estimated Sales Tax
Less: Estimated Operational Costs
Less: Debt Service Transfers
Less: Capital Projects Transfers
Projected Year End Fund Balance
Sales tax revenues for Fiscal Year 2017 are estimated to be 52,250,000.
Previous
Report
$ 5,494,900
$ 5,494,900 $ 4,544,417
781,967
1,222,732
1,184,963
15,633
21,280
10,690
797,600
1,244,012
1,195,653
6,292,500
6,738,912
5,740,070
10,322
13,682
65,499
150
193
1,127
56,450
65,289
56,829
351,000
351,000
140,500
342,624
456,831
453,779
670,100
893,467
-
1,430,646
1,780,462
717,734
$ 4,861,854
$ 4,958,450
$ 5,022,336
$ 200,000
120,000
10,000
1,083,817
$ 1,413,817
$ 3,544,633
$ 3,544,633
1,027,268
(175,570)
(228,416)
(446,733)
$ 3,721,182
Capital Improvement Projects (Accounted for in Fund 015 - General CIP Fund)
Budget
Expenditures
Balance
Fagade Grants
407,669
169,703
237,966
Restroom/Pavilion at Five Points
400,000
-
400,000
Parking Spaces at Pecan Park
350,000
-
350,000
Fencing at Golf Course
250,000
2,850
247,150
Fencing on Spencer Highway
340,200
-
340,200
Available Balance
1,747,869
172,553
1,575,316
*Debt Service Payments for Library, Bay Area Boulevard & Canada
Road and Ball fields.
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEM
Agenda Date Requested: July 17, 2017
Requested By: Traci Leach
Department: Administration
Report: �*, Resolution: C Ordinance: C
Exhibits:
1. Annual Report
Appropriation
Source of Funds:
Account Number:
Amount Budgeted:
Amount Requested:
Budgeted Item: *1 YES
NO
SUMMARY & RECOMMENDATIONS
Chad Burke, President and CEO of the Economic Alliance Houston Port region, will provide the Board with an
Annual Report of activities the Alliance has completed this past year.
Action Required by the La Porte Development Corporation:
Receive report and take appropriate action.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
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4 Broadway Double Tack Project
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6 FM -1942 from Hatcherville Road to SH -146— road improvement
7 Hatcherville Rd from FM -1942 to Liberty/Chambers Co.Line—road widening
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2,500 Participants 4 Exhibiting Opportunities
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Quality of Life
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Networking & Connections
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'��� 40 Exhibiting Companies & Institutions
Industry & Market Insight
■ Global Chemicals Outlook
■ Plant Managers Panel
■ Global Shipping Panel
■ Regulations & Policy Update
■Port Houston Update
Gulf oast Industry Forum
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REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEM
Agenda Date Requested: July 17, 2017
Requested By: Traci Leach
Department: Administration
Report: Resolution: C Ordinance: C
Exhibits:
1. Request for extension
2. Development Agreement
3. Denial Letter
4. Tiemline of Action
Appropriation
Source of Funds:
Account Number:
Amount Budgeted:
Amount Requested:
Budgeted Item: 4, YES - NO
SUMMARY & RECOMMENDATIONS
On February 22, 2016, the Board approved a development agreement with Fischer's Hardware for a major
renovation of the business located at 1010 S. Broadway. The total value of the agreement is $120,000, which is
paid to Fischer's upon successful completion of specified benchmarks.
The first incentive payment of $50,000 requires that Fischer's show proof of a minimum capital investment of
$600,000, photos of all improvements, and copies of all required permits for the work. This benchmark also has
language that provides some flexibility on the capital expenditure amount and allows Fischer's to qualify for a
pro -rata share of the first incentive payment if a threshold of $550,000 is met. Anything less than $550,000
would disqualify Fischer's from this payment.
Fischer's submitted an initial packet of documentation to the City on February 20, 2017, which was 8 days in
advance of the contractual deadline for materials. Since that time, staff has been working with Fischer's to
clarify information included in this packet of documentation. On June 8, 2017 staff emailed Fischer's to set a
deadline for final submission of clarifying documentation for June 19, 2017. No additional materials were
provided by the deadline and staff emailed the denial letter to Fischer's on June 20, 2017. The validated capital
expenditure amount at that time was $386,264.03 and staff had not received the required photos.
On June 21, Fischer's requested that an extension be considered. Should the Board Eke to consider granting an
extension, an amendment to the existing agreement will be drafted based on any parameters the Board would
Eke to see included.
Action Required by the La Porte Development Corporation:
Provide staff with direction regarding request from Fischer's Hardware for an extension and take appropriate
action.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
June 22, 2017
City of La Porte
604 W. Fairmont Pkwy
La Porte, Texas 77571
281-471-5020
RE: Economic Development Incentive Program
Dear Board Members:
We received an email on June 20 regarding a denial letter for Payment Request,
the reason for this was that we missed our deadline on June 19. We were not
aware we had missed a deadline until Renee Paradeaux requested the
information from Traci Leach. There was an email sent to Frank Herrera that was
overlooked on his behalf.
We would still appreciate the opportunity to resubmit our invested amount to be
included in the incentive program.
Sincerely,
Fischers Hardware
1012 S. Broadway
La Porte, Texas 77571
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GORPORAT1011, FOR VIE 7F 71 PE B UIPTELOPUlEil I CORPORA I 1UR
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".
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 $600,000.00 in capital
and 3) 'increase annual retail sales tax revenues attributable to the 1010 S. Broadway
store site by 20%,
WHEREAS, Recipient has requested that LPDC provide financial incentives to
Recipient to contribute towards the cost of renovation of the property at 1010 S. Broadway
St., under a qualifying project of the LPDC for infrastructure, site and related
improvements, as authorized by Texas Local Government Code Chapters 501 and 505,
-2-$'_A4JM*t
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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:
Inconsideration 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 1, 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
2
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 201
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 201
deadline, the incentive payment under this agreement would be
calculated at $575,000/$600,000, or 96% of the $50,000.00 incentive
payment, for a total payment of $48, 000.00.
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
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
3) 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
M
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 17120, 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.
F-11AMMAW
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.
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.
In the event of any default by Recipient hereunder, including, but not limited to,
use of the funds provided herein for purposes other than those stated in Article I of this
Agreement, LPDC may cease all future payments hereunder and terminate this
Agreement. In addition, LPDC shall have the right to reclaim and recapture, and Recipient
shall refund, any funds that are not spent in accordance with the terms of this Agreement,
including 1) LPDC funds spent by Recipient in contravention of this Agreement and 2)
any LPDC funds previously paid to Recipient but not yet spent by Recipient. In each such
case, the previously paid cash payment or payments shall be remitted to the LPDC within
sixty (60) of receipt of written demand for same.
Any breach of this covenant shall be grounds for immediate termination of the
distribution of funds.
ARTICLE VI
The term of this Agreement is for a period beginning on the date of approval by
LPDC and ending 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 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 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.
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.
FUMO 14 0 M
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 1, without the written
consent of LPDC.
FTIVII'VORMOAT
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.
F-ITMIMI
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.
—I"
This
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.
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.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto,
superseding all oral or written pervious and contemporary agreements between the
Parties, which relate to matters in this Agreement.
11111 11
NORM l 0111 ill ii i i
11 1 MMLO=
Richa(d Warren, President
Date
ATTEST
Secretary of the Co ration 0'
Elio
In
ate
ATTEST
ON
SHNNON M. COTHAM
A
.' Notary Public, State of Texas
wx My commission Expires
IN
City of La Porte City Manager's Office
Esta6lisked 1892 The City of La Porte embraces our heritage, community values and
opportunities, while enhancing the quality of life for our citizens.
June 20, 2017
Mr., Frank Herrera
Managing Partner, Fischer's Hardware
1010 S. Broadway
La Porte, TX 77571
Dear Mr. Herrera;
This letter will serve as official denial for Payment Request No. I under the Development Agreement
between the La Porte Development Corporation and Fischer's Hardware. At this time, Fischer's has not
met the minimum capital expenditure amount stipulated in the development agreement (Article ]-A).
While Fischer's did meet the initial deadline for submission of receipts, four months have elapsed and
there has not been resolution of the $3601,000 in inventory and construction expenditures that were
comingled. No response was received to the email dated June 8, which outlined a final submission
deadline of June 19, 2017, No additional documentation was received by this deadline.
At this time, the validated amount for capital expenditures is $,386,264.03, as outlined in the enclosure
attached herein.
Fischer's Hardware remains eligible for the remaining incentive payments, assuming the performance
targets specified in the development agreement are met within the timeline specified.
I have enjoyed working with you, Renee, and Mr. Rothermel on this project. I look forward to working
with you again as we continue to progress through the future benchmarks.
If you have any questions, please do not hesitate to contact me.
` 4ctfully
Traci L. Leach
Assistant City Manager
cc: Corby Alexander
La Porte Development Corporation Board
Enclosure: Expenditure Validation Spreadsheet
604 W. Fairmont Parkway m La Porte, Texas 77571 N (281) 470-5011 m www.laportetx.gov
9:43 AM, 6/20/2017
Payment
Contractor
Scope of Work
Contract Amount
Verification
Daniel St. John
Remove roof, gutter, front building facial sign and frame and install new
$
9,538.96
$ 9,538.96
Rodrigo Mora
Roofwork?
$ 900.00
Mora
Roof Replacement
$ 800.00
ARicardo
Rodrigo Mora
Roof
$ 900.00
Rodrigo Mora
Roof
$ 600.00
Fischer's Do It Best
Roofing
$ 1,200.00
John
Install Gutter downspouts/el bows
$
400.0()
$ 400.00
BDanielSt.
Daniel St. John
Equipment rental, haul off, gutter install for 6" drain pipe
$
5,190.00
$ 5,190.00
Daniel St. John
signage removal, removing wood at entry, renovate Lil'Jack's castle fagade
$
8,000.00
$ 8,000.00
Fischer's Do It Best
Interior Signage
$
15,433.28
$ 15,433.28
Fischer's Do It Best
Sport Graphics
$
8,582.60
$ 8,582.60
Graphics
Paint existing sign; new vinyl graphics
$
13,877.65
$ 13,877.65
CIRS
Harmon Sign Inc/Filchers
Building letters
$
16,896.04
$ 16,896.04
Louis Pina
Lettering
$
2,760.00
$ 2,760.00
Louis Pina
Banner Install
$
4,600.00
$ 4,600.00
D
Bernardo's Paving
Parking Lot Re-surfacing
$
5,724.16
$ 5,724.16
ERicardo
Mora
Rodrigo Mora?
Painting
Painting gates
$ 1,000-00
$ 400.00
Tony Santos
Painting interior
$
3,445.34
$ 3,445.34
Creekside Nursery
Roses
$
1,575.00
$ 1,575,00
Roberto mora?
Landscaping (labor?)
$ 800,00
Rodrigo Mora?
Landscaping and Gabor
$ 2,500.00
G
Hardware Express
LED Flood Lights
$
1,128.45
$ 1,128.45
Jose Ortega
Floor Clean up- strip and wax
$
1,100.00
$ 1,100.00
H
Jose Ortega
Floor Clean up- strip and wax
$
1,100.00
$ 1,100.00
Jose Ortega
Floor Clean up-strip and wax
$
1,00o.00
1,000.00
9:43 AM, 6/20/2017
Luis Lucio
Electrical work- relocating circuits
$
390.00
$ 390.00
Luis Lucio
Install light fixtures, circuits, outlets
$
4,400.00
$ 4,400.00
Luis Lucia
Emergency Lights, conduit for front door power, circuit for AC in warehouse
$
640.00
$ 640.00
$
$
Luis Lucio
Remove lights in carport & install new, install receptacles/lights in store
$
2,700.00
$ 2,700.00
$
700.00
Removed conduit, relocated existing circuits, install lighting (back storage), install
Jose Gonzalez
Fischer's Do It Best
Tiles
Luis Lucio
wiring for future registers
$
1,970.00
$ 1,970.00
Luis Lucio
Conduit for parking lot, install flood on building, flood on pole
$
1,190.00
$ 1,190.00
Fischer's Do It Best
Electrical supplies
$
409.98
$ 409.98
Joey's Glass Inc Door $ 2,212.52 $ 2,212.52
Lohman Glass Door $ 3,548.00 $ 3,548.00
Daniel St. John
Marco Santos
Floor repair, fence repair
$
1,700.00
$ 1,700.00
Joe/Jose
Marco Santos
Marco Santos
Installation of VCT tiles (labor)
Replace VCT tiles
$
$
6,000.00
525.00
$ 6,000.00
$ 525.00
Juan Gonzalez
Marco Santos
Floor prep for tiles, repair broken floor in rear, repair back door
$
700.00
$ 700.00
Jose Gonzalez
Fischer's Do It Best
Tiles
$
3,096.15
$ 3,096.15
Joey's Glass Inc Door $ 2,212.52 $ 2,212.52
Lohman Glass Door $ 3,548.00 $ 3,548.00
Daniel St. John
Labor/Remodel
$
2,500.00
$ 2,500.00
Joe/Jose
Labor -gondolas?
$
235.00
$ 235.00
Juan Gonzalez
Clean up
$
75.00
$ 75.00
Jose Gonzalez
pallet fixture, garden, pegboard, cleanup
$
2,375.00
$ 2,375.00
David Garcia
Clean up
$
216.00
$ 216.00
Nathan Herrera
Labor for gondola install
$
1,123.10
$ 1,123.10
Joey's Glass Inc Door $ 2,212.52 $ 2,212.52
Lohman Glass Door $ 3,548.00 $ 3,548.00
Daniel St. John Welding tence $ 500.00
Marco Santos Install of two chain link rolling gates $ 1,200.00 $ 1,200.00
Dow Pipe & Fence Supply Roller $ 381.04 $ 381.04
9:43 AM, 6/20/2017
Marco Santos
Demo AC in storage room, remove carpet, grind down pipe
$ 1,500.00 $
1,500.00
Sam vargas
Remove carpet
$
500.00
Daniel St. John Welding tence $ 500.00
Marco Santos Install of two chain link rolling gates $ 1,200.00 $ 1,200.00
Dow Pipe & Fence Supply Roller $ 381.04 $ 381.04
9:43 AM, 6/20/2017
0
Tony Santos
Tony Santos
Tony Santos
Tony Santos
Marco Santos
Marco Santos
Marco Santos
Storetront
Storefront
Storefront
Storefront
Storefront
Exterior
Exterior
55,000.00
$ 6,000.00
$ 6,000m
$ 4,000.00
$ 4,000.00
$ 15,000.00
$ 10,000m
$ 10,000.00
P
Sam Vargas
Claridata Corp
Lowe's
Glynn's Contracting Service
Wall removal
Move network and phone to new service desk
Glue for tile floor
Install two roll up overhead doors
$
$
$
540.00
162.29
53,000.00
$ 1,059.00
540.00
162.29
$ 53,000.00
QFischer's
Do It Best
Fischer's Do It Best
Store development design fees
Shelving
$
$
10,492.80
678.46
$ 6,737.42
$ 678.46
R
Davis and Associates
Architectural/Engineering Plans
$
18,880.00
$ 16,000.00
S
Fischer's Do It Best
T
Handy Hardware
interior light bulbs
$
349,78
34938
U
Fischer's Do it Best
??
$
61,024.15
$ 60,820.94
V
Stihl
Store display
$
26,118.23
$ 26,118.23
W
Gate House
Fire Access Box
$
69.32
$ 6932
X
Outdoor heaven
Planters and pedestals
$
3,990-00
$ 3,990.00
Y
Fischer's Do It Best
Fischer's Do It Best
Divider Arm and Bar
Inventory infrastructure
649.05
217.16
$ 649.05
217.16
9:43 AM, 6/20/2017
I Z xcess security Services Fire Alarm add on $ 10,318.18 $ 11,334.11
370,609,51 $ 386,264.03
9:43 AM, 6/20/2017
Timeline of Action
February 20: Initial packet of documentation delivered to City Hall
February 21: 1 met with Frank Herrera to discuss the submitted documents
March 9: 1 emailed Frank confirming an initial validated amount that appeared to meet the minimum
requirements. It became clear as additional review was conducted that there was additional documents
that were needed to validate some of the initial documentation. I also indicated that we still needed
photos and permit documents.
March 10: 1 met with Frank and Rod onsite to follow up on the outstanding documentation needs.
March 30: 1 met with Frank and Rod again to review materials.
April 7: 1 emailed to document the key pieces of information that needed clarification, specifically
additional information on $360,000 in submitted invoices. These invoices contained a comingled listing
of expenditures that were a combination of inventory and construction related expenses. In discussion
with Fischer's, it was explained that corporate office required that certain inventory be purchased,
knowing that it would never sell in order to approve the additional floor space. Fischer's does not
consider these purchases "inventory." However, staff's perspective is that if a price tag is on it and a
customer could buy it, then it is inventory and thus not eligible for capital investment calculation
purposes.
April 18: Email exchange regarding capital expenditure validation for the invoices with comingled
expenditures
April 27: 1 met with Frank, Rod, and Renee to go over the co -mingled stack of invoices.
June 8: 1 emailed Frank to request an update and set a final documentation submission deadline of June
19 for the capital expenditure validation.
June 19: No documentation was received.
June 20: Denial letter emailed to Frank
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEM
Agenda Date Requested: July 17, 201711 Appropriation
Requested By: Traci Leach
Department: Administration
Report: Resolution: C Ordinance: C
Exhibits:
1. Proposed FY 2017-2018 RmAget
Source of Funds: Fund 038
Account Number:
Amount Budgeted:
Amount Requested:
Budgeted Item: 4, YES (,-) NO
SUMMARY & RECOMMENDATIONS
Staff has been working on the FY18 budget for the past two months. At this time, the proposed FY18 budget
has gone through a process of evaluating what estimated needs will be to complete the current year, projecting
forward for next year, and a review by the City Manager.
The total proposed budget is $1,461,145 more than the FY 17 projected year end budget. The FY 18 budget
includes the following major changes. All increase/decrease amounts listed below are based on a comparison
between the columns labeled FY 16-17 Estimate and City Manager Review on the attached spreadsheet.
• Regular earnings (account 10-10) is increased by $21,027 due to anticipated filling of the ED Coordinator
position in upcoming FY. Of this amount, $8,789 is the result of shifting an additional 25% of the
Secretary position's salary to the ED Fund, based on anticipated workload.
• Other Professional Services (50-07) was increased by $102,000 due to two changes. The first is a
change in how the Harris County Bus Service is funded. In previous years, this service was funded with
a 50-50 split between this fund and the general Fund. For the ED share, this service had previously been
accounted for in account 99-97. However, this service more appropriately should be accounted for in this
account. The other 50% of the funding is proposed to be funded in the ED Fund. The second change is
inclusion of a Main Street Strategic Plan.
• Printing & Reproduction (60-02) is increased by $13,000 due to funding the annual coupon book in FY18.
• Contingency (90-50) is increased by $250,000 to properly plan for unforeseen projects and expenditures
that may arise during the year. This year, it was fortunate that there were areas where funding could be
cobbled together for the unforeseen expenditures. However, this may not be the case next year and it
would be prudent to preserve flexibility should be Board desire to consider new initiatives throughout the
year, as circumstances dictate.
• Requests for Special Programs (99-97) is decreased by $273,872 based on estimated incentive payouts,
per current development agreements.
• Debt Service Payments (90-04) is increased by $328,765 based on the ED share of General Fund -issued
debt.
• Capital Projects (90-15) is increased by $92,800 based on capital projects that the Board has considered.
This total may change after the August 14 public hearing where the Board may elect to not fund any or
all of these projects for final budgeting purposes.
Action Required by the La Porte Development Corporation:
Provide staff with direction on the proposed FYI 8 Development Corporation Board budget.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
7/3/2017
City of La forte
La Porte Development Corporation (038) Fund Summary
(Section 4B Sales Tax)
Beginning Fund Balance 9/30/16 $ 5,715,659
Plus Estimated 16-17 Revenues 2'272'500
Less Estimated 16-17 Expenditures and Commitments
Economic Development Operations
620,734
Debt Payments
685'247
Capital ProjectslTransfers
1,340,200
Reservation for Debt Service
1,083,817
Total Expenditures
3°729'998
Estimated Fund Balance 9/30/17
4,258,161
Plus 17-18 Revenues:
112 Cent Sales Tax
2,250,000
Interest Income
25'000
2,275,000
Total Revenues
Equals Total Resources
6,533,161
Less 17-18 Expenditures:
Economic Development Operations
755,314
Debt Service Transfer *
1,014,012
Transfer to General CIP Fund:
Wave Pool Upgrades
410,000
Main Street Lighting
180,000
Northwest Pool Renovations
800,000
Design for New Recreation Center
500,000
Main Street Lighting
15,000
Spencer Highway Sidewalks
340,200
Total Expenditures
4,014,52b
Ending Fund Balance 9/30/18
$
2,518,635
Estimated
Projected
2016-17
2017-18
Revenues $
2,272,500 $
2,275,000
Expenditures & Commitments
3,729,998
4,014,526
Revenues over Expenditures $
(1,457,498) $
(1,739,526)
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
a:
72, 689
I au.0 ga.t Iiirevua� w d 11 n ol oa:d Iwga:
Approved Illi in II l 1 °7 expendtures
for iinlJA P xu.udget
CM
foul' II Y18
PREPARED 07103117, 14: 12: 32 Y1 "7
T PII a uua'w bk i bll" l 1 ai
ART.
T
TY MANAGER
PAGE
LAST YEARS
BUDGET ESTI MTE
REQUESTED
Cl TY MANAGER Cl TY MINAGER
ACCOUNT M&BER ACCOUNT DESCRI PTI ON ACTUALS
20t6-17 2016-17
2017-18
AD) I1STKMrS REVI EW
FUND 038 SECTION 4B SALES TAX
DEPT 60 ADM M STRATICN
DIV 30 SECTI ON 4B SALES TAX
038- 6030- 565. 10- t 0 REGULAR EARM NGS
038- 6030- 565. 10- 12 SICK BUY BACK
038-6030-565.10-20 OVERTI M
038-6030-565-10-30 CERTI FI CAT[ ON
038-6030-S65.10-15 LCNGEVI TY
038-6030-565.10-55 TERM NATI ON PAY (SM
038- 6030- 565. 10. 60 FICA
038- 6030- 565.10- 65 RETI REM?NT
038- 6030- 565. 10— 80 I MURANCE - KDI CAL
038- 6030- 565. 10- 81 1 MURANCE - LIFE
038- 6030- 565.10- 90 OTHER BENEFITS
038- 6030— 565. 20- O1 OFFICE
038-6030-565.20-02 POSTAGE
53,168
72, 689
39,177
51,615
8,789
60,404
0
0
0
0
0
0
18
0
0
0
0
0
0
0
0
0
0
0
186
180
45
180
0
180
2,850
0
0
0
0
0
4,165
5,385
2,898
3,898
723
4,62t
8,960
1 t, 485
6,218
8,331
1,418
9,749
10,423
10,423
10,423
10,423
2,605
13,028
32
20
32
32
0
32
950
0
0
0
0
0
118
200
100
200
0
200
113
1,000
250
200
0
200
LEVEL TEXT TEXT AM
17ES NOME: $750 MAS TO BE RE—ALLOCATED TO HELP FUND
PURCHASE OF 1218 S. BROIADVAY
POSTAGE
038— 6030- 565. 20- 15 OTHER SUPPLI ES
LEVEL TEXT
17ES DINNER FOR BC]ARDS (TIRZ AND EDC)
LEVEL TEXT
1 BCM DINER FOR ED BOARDS (TI RZ AND EDC)
1,636 1,000
250
250
600 600 0 600
TEXT AM
600
600
TEXT AMT
600
600
PREPARED 07/03/17, 14:12:12
ACCCIINT NUM3ER ACCOUNT DES CRI PTI Cil
FUND 038 SECTIChl 48 SALES TAX
DEPT 60 ADM M STRATICN
DIV 30 SECTI ON 4B SALES TAX
038-6030-565.30-01 KM1ERS 81 SLIBSCRI PTI CM
LEVEL TEXT
17ES BAFIEP
BAYTRAN
ECCNCM C ALLIANCE
BUDGET PREPARATICN WXKSHEET
RESULTS OF DEPART'KXr REVI EW W TF1 CITY MANAGER
LAST YEARS BUDGET ESTIM\TE RECMSTED
ACTUALS 2016-17 2016-17 2017-18
40,960
LEVEL
TEXT
18CM
BAHEP
TEXT AMP
ECCN CM C ALLIANCE
BAYTRAN
20,000
M 5C ED RELATED MM3ERS19 PS FCR NEW PERSCN
038-6030-565.30-20 TRAI M NG/ S EM MARS 7,210
LEVEL
TEXT
17ES
DALLAS ICSC SHONE 1 STAFF/1 BC14RD M3M3ER
M SCELLAWCUS AD FLOC TRAI M NG
NNE: $1, 500 1 N TRAI M NG WAS DELETED DUE TO
VACANCY. THESE FUNDS ARE TO BE RE -ALLOCATED TO
PURCHASE 1218 S. BRCIADWAY
LEVEL TEXT
18CM M SCELLANECUS TRAI M NG FOR NEW PERSCN
038-6030-565.40-11 BUI LD1 NG 0
038-6030-565.40-55 CC"UTER SCFTWARE 0
038- 6030. 565. 40- 60 TECH11IOLOGY LEASE FEES 0
038- 6030- 565. 40- 65 Ca-PUTER MAI WENANCE FEES 0
038-6030-565.50-01 ACCOUNTING 5,000
LEVEL TEXT
PAGE 2
CITY MWAGER CITY MWAGER
ADI USTNEMr5 REVI EW
43,500 42,500
45,000
0
45,000
TEXT AMP
20,000
2,500
20,000
42,500
TEXT AK
20,000
20,000
2,500
2,500
4S,000
4,500 3,000
4,500
0
4,500
TEXT AK
1,816
1,t84
3,000
TEXT AMP
4,500
4, 500
0 0
0
0
0
0 0
0
0
0
0 0
0
0
0
0 0
0
0
0
5,000 5,000
s,000
0
5,000
TEXT AW
PREPARED 07/03/17, 14:12:32
ACCOIMT NLWBER ACCOUNT DES CRI PTI ON
FUND 038 SECTION 43 SALES TAX
DEPT 60 ADM NI STRATI CN
DIV 30 SECT[ ON 4B SALES TAX
17ES ANNUAL AUDIT
BUDGET PREPARATICN WJRKSHEET
RESULTS OF DEPARTM:NT REVI EW W TH Cl TY ?MNAGER
LAST YEARS BUDGET ESTI M'1,TE REQUESTED
ACTUALS 2016-17 20t6-17 2017-18
LEVEL TEXT
18CM ED SHARE OF Cl TY AUDI T
058-6030-565.50-03 LEGAL 7,671
LEVEL TEXT
17ES LEGAL BILLED THROUGH APRIL
ESTI WED LEGAL TO BE BILLED MY THROUGH SEPT
AVERAGING $264 PER BILLING CYCLE
CChrrl NGENCY FOR UNEXPECTED HI GH M3WHLY BI LLI NG
NOTE: $5, 111 VAS REALLOCATED TO FUND LAND AT 1218
S. BROADVAY
LEVEL TEXT
18CM ED RELATED LEGAL COSTS
038-6030-565.50-05 PERSONEL SERVICES 0
038-6050-565.50-07 OTHER PROFESSIONAL SERVI C 12,742
LEVEL TEXT
17ES CITY W DE W BSITE MAI WENANCE FEE
SUTA/STARS FEES
NOTE: DUE TO VACANCY, WE DELETED FUNDING FOR
AEDO CERTI FI CATI ON AND STRATEGI C PLAN. THESE
FUNDS ARE TO BE RE- ALLOCATED TO 99- 97 FOR
I NCENPI VE PAYM Nf TO FI SCHER! S
LEVEL TEXT
1804 MIINSTREET STRATEGIC PLAN
ITEM NAS DELETED IN FYI DUE TO VACANCY
SUTA AND STARS FEES
CITY W DE WEBS 1 TE M41 NTENANCE- ED SHARE
5,000
5,000
TEXT AMf
5,000
5,000
10,000 4,899
TEXT APF
1,581
1, 318
2,000
4,899
TEXT AM
10,000
10,000
0 0
36,500 6,500
TEXT AMf
4,500
2,000
6,500
TEXT AMf
30,000
2,000
4,500
10,000
0
36, 500
PAGE 3
CITY M*IAGER CITY ~GER
AD] USTWNfS REVI EW
0
0
72,000
10,000
0
108,500
PREPARED 07/03/17, 14-12:32 BUDGET PREPARATION VIM HEET
RESULTS OF DEPARTM?NT REVIEW W TH CITY MWAGER
PAGE 4
LAST YEARS
BUDGET ESTI MATE REQUESTED
2017-18
CITY MINAGER CITY MWAGER
AD) USTKKrS REVI EW
ACCOUNT NUMiER ACCOUM DESCRI PTI ON ACTUALS
2016-17 20t6-17
FUND 038 SECTION 413 SALES TAX
DEPT 60 ADM M STRATI ON
DIV 30 SECTI ON 4B SALES TAX
72,000
BUS SERVI CE ACCOUNT at OTHER 1/2 PINED
FRCIN C01YMBaTYFINVESTMMFUND)
108,500
038- 6030- 565, 50- 12 PROPERTY RESALE MU M 0
0 0 0
0 0
038, 6030- 565. 60. 02 PRI MI NG at RE PRODUCTI ON 361
500 0 5,000
8,000 13,000
LEVEL TEXT"
TEXT AM
5,000
I BCM NEW ED COLLATERAL
NOPE: ALL M'#TERI ALS CURRENTLY HAVE SCOOT' S I NFO
ON IT. NEW PERSON W LL NEED ALL NEW STUFF.
COUPON BOAC
8,000
13,000
038- 6030- 565. 60- 05 ADVERTI SI NG 41,301
25,000 5,000 5,300
0 5,300
LEVEL TEXT
TEXT AM
1,800
17ES XCELI GEM
TEXAS REAL ESTATE BUSINESS (ALREADY CCDM TTED)
2,150
M SCELLANEOUS ADS
t,050
NOPE: $20, 000 WAS ELI M NATED DUE TO VACANCY. FUNDS
TO BE RE-ALLOCATED TO 99-97 TO FUND INCEMIVE FOR
Ft SCHER' S
5,000
LEVEL TEXT
TEXT ATT
t, 800
1 BCM EXCELI GENT
3, 500
M SCELLANECUS ADS
5,300
038- 6030- 565. 60- 10 3 AM TORI AL 5 ERVI CES 0
0 0 0
0 0
038- 6030- 565. 60- 40 TRADE S HOM 2,482
8,000 0 5,000
0 5,000
LEVEL TEXT
1 BCM TRADE SHONE TO BE DETERM NED BY NEW PERSON
TEXT ATT
5, 000
NOTE: PER14APS TI-9 S IS NON' NEEDED DEPENDI TIG ON
W-IAT HAPPEN W TH THE ED STAFF PC61 TI ON
5,000
PREPARED 07/03/ l7, 14: 12: 32 BUDGET PREPARATION VMMHEET PAGE 5
RESULTS CF DEPARTKNT REVIEW W TH CITY t*NAGER
LAST YEARS
BUDGET ESTI MATE
REQ ESTED CITY MANAGER CITY TANAGER
2017-18 AD] USTMENrS REVI EW
ACCOUNT NUhBER ACCCUNr DESCRI PTI ON ACTUALS
2016-17 2016-t7
FUND 038 SECTION 4B SALES TAX
DEPT 60 ADM N STRATI CN
DIV 30 SECTI ON 4B SALES TAX
038-6030-565.70-01 ELECTRI CAL 0
0 0
0 0 0
038- 6030- 565. 70- 02 NATURAL GAS 0
0 0
0 0 0
038- 6030- 565. 70- 04 WATER 0
0 0
0 0 0
038-6030-56S.70-05 MSC UTILITIES 0
0 0
0 0 0
038-6030-565,80-31 LAND ACOA S IT[ CPS 0
0 0
0 0 0
0
0 0
250,000 0 250,000
038-6030-565.90-50 CCNrI NGENCY
LEVEL TEXT
I BCM UNFORESEEN LAND ACCU SI TI CN, PRCJ ECTS, I N ENrI VES
TEXT AT1r
2000
50, 000
038- 6030- 565. 99- 97 REQ FOR SPECT AL PROGRAM 2i5, 500
385,352 493,872
256,000 36,000- 220,000
LEVEL TEXT
17ES ACT TURBO I NCEN11 VE PAYKNrS NOS, 2 AND 3
TEXT ANi
351,000
HARRIS COUNTY TRANS I T (50% OF TOTAL)
35,500
50,000
BI ` E PAYKWr � 1
LIANDACCXA S 1 TTI CN FOR 121 S. BRONDVAY
57,372
493,872
LEVEL TEXT
TEXT AM
100, 000
1804 PIPELINE GRILL
NOTE: INCENTIVE BASED ON SALES TAX RECEIPTS OF
AT LEAST $4M
30, 000
F IS CHE W S HARDWARE
NOAE: I NCENTI VE BASED ON TWD TAROTS- SALES TAX
AND E"LC7lEE COUNT
90,000
NORTHERN SAFETY
NOTE: INCENTI VE BASED CK T1AD TAROTS- SALES TAX
AND ENPLONEE COUNT
HARRIS COUNTY TRANS 1 T BUS S ERVI CE
36,000
NOTE: OTHER 50% FUNDED IN CO!4U4 TY I NVESTKNT
HARRI S COUNT TRAM T BUS SERVI CE TO 5007 ACCaW
2000-
20,000
038-6030-5,65.99-99 REQ FOR NEW PCS I TI CSI 0
0 0
0 0 0
PREPARED 07/03/17, 14:12:32
BUDGET PREPARATION WORKSHEET
RESULTS OF DEPARTKNT REVIEW W TH CITY MANAGER
PAGE
6
LAST YEARS
BUDGET
ESTI MATE
REQ ESTED
Cl TY MANAGER
Cl TY MINAGER
ACCO(AR M"ER ACCOUNT DES CRI PTI CN
ACTUALS
2016-17
20t6-17
2017-18
AD] USTKNTS
REVI EW
FUND 038 SECTION 48 SALES TAX
DEPT 60 ADM M STRATI ON
DIV 30 SECTI ON 4B SALES TAX
038- 6030- 680. 90- 03 ADM TRATE TO FUND 003
0
0
0
0
0
0
038- 6030. 680. 90- 04 ADM[ TRANS TO FUND 004
680,668
685,247
685,247
0
1,014,012
1, 014, 012
038- 6030- 680. 90- 15 ADM TRAM TO FUND 015
0
1,340,200
1,340,200
2,338,000
92,800-
2,245,200
LEVEL TEXT
TEXT AMf
410,000
18CM WAVE POOL UPGRADES
180,000
MU N STREET LI GHTI NG
DESIGN FOR NEW RECREATICN CENTER
500,000
NORTHYEST POOL RENOMATI CTS
800,000
340,200
SPENCER 111 GHNAY SI DEWALKS
15,000
MAI N STREET SI DEWALKS
2,245,200
038- 6030- 680.90- 33 TRANSFER TO ST MAI NT FUND
0
0
0
0
0
0
* SECTION 4B SALES TAX
------------
1,096,5t4
------------
21646,181
------------
2, 646, 181
------------ --------------
3,035,779
978,747
------------
4,014,526
ADM M STRATI ON
------------
t,096,514
------------
2,646,181
------------
2,646,181
------------
------------ --------------
3,035,779
------------ --------------
978,747
------------
--- 4,014,526
---------
* * * S ECO OQ 4B SALES TAX
------------
1,096,514
------------
2, 646, t 81
2,646,181
3,035,779
978,747
4,014,526
------------
1, 096, S14
------------
2,646,181
------------
2,646,18t
--------•--- ..............
3,035,779
978,747
------------
4,014,526
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA
ITEM
Agenda Date Requested: July 17, 2017
Requested By: Traci Leach
Department: Administration
Appropriation
Source of Funds:
Account Number:
Report: 4, Resolution: (,- Ordinance: (,-) 11 Amount Budgeted:
Exhibits:
1. Incentive Scorecard
2. Port Theater.Proposal
Amount Requested:
Budgeted Item: *1 YES 0 NO
SUMMARY & RECOMMENDATIONS
At the May 22, 2017 Board meeting, Horace Leopard for LPH Properties provided an update on the newly
purchased Port Theater located at 430 W. Main Street. Since that time, staff has been working with LPH to
develop an incentive agreement for the renovation of the facility.
The theater is envisioned to function as a multi-purpose facility that would host a variety of events, such as
screenings of movies (not first run films), musical events, wedding venue, and meeting space for the community
and businesses. LPH has provided preliminary information regarding the intended uses of the facility, as well
as initial estimates on issues such as capital expenditures, job creation, and taxable sales.
In order to host these events and to improve the exterior/interior appearance of the facility, LPH is projecting to
spend over $400,000 in renovations to both interior and exterior of the building. Improvements will include:
Renovating exterior marquee sign to replace it with blade sign reminiscent of the former Port Theater signage;
replacing exterior doors; interior/exterior painting; resurfacing existing parking to east of building and construct
small courtyard; replacing/upgrading all A/V equipment; renovating restrooms; constructing green room for
musical acts behind stage; replacing carpeting, fighting; and renovating concession area.
LPH has requested that the ED Board consider funding 100% of the capital costs associated with the
renovation of the facility, $309,195. LPH indicates that an additional $110,000 will be spent on additional
improvements and repairs that are not included in the $309,195 requested amount. In order to capture some of
the "intangible value" that a vibrant theater could bring to Main Street, staff included a total of $419,195 in the
scorecard calculation to account for this added `value." The initial assessment of the project yields an incentive
amount between $104,798.75 (25% of total capital investment amount of $419,195) and $200,643, which has a
10 -year payback based on revenue projections.
The Board has provided staff with a guide for evaluating projects requesting incentives. This guide provides a
starting point for discussion of the merits of projects and allows the Board flexibility to adjust based on other
factors not included in the evaluation matrix.
LPH will be available to answer specific questions about the project and staff will be available to answer any
other questions. Once direction from the Board is received, a development agreement will be drafted and
brought to the Board for consideration.
Action Required by the La Porte Development Corporation:
Provide staff with direction regarding incentive request from LPH Properties for renovation of the theater
located at 430 W. Main Street and take appropriate action.
Approved for the La Porte Development Corporation Agenda
Corby D. Alexander, City Manager Date
1. Based upon estimated from information provided, so far, by Alton Ogden.
2. Estimated sales of $2 million results in estimated sales tax of $2 million x 2%, or $40,000. Annual sales tax of $40,000 is included in the figure.
3. The term for this project is three (3) years as opposed to ten (10) years.
4. This assumption is based upon 15 buildings (from info provided by Alton Ogden), and 3 employees per building, minus 10 employees for a development agreement estimate.
5. Staff's estimate of the number of "Career Preparation" (i.e. Coop) positions to be offered by ACT to LPISD students. ACT will provide additional information in late September 2014.
6. Grant Award/Annual PILOT or Tax Revenue.
7. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0.15) - (# of Coop Positions x 0.15), because the arbitrary assigned value for each full time job is "0.15".
8. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0) - (# of Coop Positions x 0), because the arbitrary assigned value for each full time job is "0".
9. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0.1) - (# of Coop Positions x 0.1), because the arbitrary assigned value for each full time job is "0.1".
10. ((Annual Property Tax Revenues - Grant Award)/Grant Award) x 100
11. The term and ROI for this project is three (3) years as opposed to ten (10) years, because it wasan industrial "attraction" project rather than an "expansion "or "relocation".
12. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0.15) + (# of Coop Positions x 0.15)) x 100
13. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0) + (# of Coop Positions x 0)) x 100
14. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0.10) + (# of Coop Positions x 0.10)) x 100
15. (($4 million x 2%)+$4,662.77) x 10
La Porte Development Corporation Project Score Card
Adm. Payback
Added Taxable
10 Year PILOT or
# of Full
# of Coop
Raw Paybacks
Raw 10 Year
iu Adm. 10 Year
Project Name
Value
Tax Revenue
Time Jobs
Positions
Grant Award
Period (Years)
Period for # of
ROI
ROI for # of Jobs
Jobs (Years)
Project Nebula, Unit #1
$250 million
$6,603,000
24
0
$300,000
0.85
-2.75 7
2101%
2461%
Project Nebula, Unit #2
$500 million
$13,206,000
60
0
$700,000
0.99
-8.01 7
1787%
2687% 32
InterGulf Corporation
$2.1 million
$149,100
30
0
$500,000
33.53
29.03 7
-70%
380% 32
Rob Johnson
$6 million
$843,750
1 10
0
$106,000
1.26
1.26 a
696%
696% 13
Project Gantstein, LLC
$656,728
$846,628 15
100
0
$300,000
3.56
3.56
182%
182%
Richard Industrial Group
$500,000
$10,650
3 75
0
$15,000
4.23
-7.02 7
-29%
11 1096% 32
Sector 23
$12 million
' $852,000
35 "
0
$362,457
4.25
0.75 '
135%
485% 14
Port Theater Renovation
$419,195
$200,643
1
7
$200,643
10.00
10.00
0%
0.00
ACT Independent Turbo
$6 million
$426,000
60
5 5
$426,000
10.00
0.25 7
0%
975% 32
Notes:
1. Based upon estimated from information provided, so far, by Alton Ogden.
2. Estimated sales of $2 million results in estimated sales tax of $2 million x 2%, or $40,000. Annual sales tax of $40,000 is included in the figure.
3. The term for this project is three (3) years as opposed to ten (10) years.
4. This assumption is based upon 15 buildings (from info provided by Alton Ogden), and 3 employees per building, minus 10 employees for a development agreement estimate.
5. Staff's estimate of the number of "Career Preparation" (i.e. Coop) positions to be offered by ACT to LPISD students. ACT will provide additional information in late September 2014.
6. Grant Award/Annual PILOT or Tax Revenue.
7. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0.15) - (# of Coop Positions x 0.15), because the arbitrary assigned value for each full time job is "0.15".
8. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0) - (# of Coop Positions x 0), because the arbitrary assigned value for each full time job is "0".
9. Grant Award/Annual PILOT or Tax Revenue - (# of Full Time Positions x 0.1) - (# of Coop Positions x 0.1), because the arbitrary assigned value for each full time job is "0.1".
10. ((Annual Property Tax Revenues - Grant Award)/Grant Award) x 100
11. The term and ROI for this project is three (3) years as opposed to ten (10) years, because it wasan industrial "attraction" project rather than an "expansion "or "relocation".
12. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0.15) + (# of Coop Positions x 0.15)) x 100
13. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0) + (# of Coop Positions x 0)) x 100
14. ((Annual PILOT or Tax Revenue - Grant Award)/Grant Award + (# of Full Time Positions x 0.10) + (# of Coop Positions x 0.10)) x 100
15. (($4 million x 2%)+$4,662.77) x 10
�ti�i C'yc))F'
4"ZIM
mra� "�'WP � MAINS"T"RE
o�uru� E r� �
I
POR �F 0 ��l IA A � IN R E IN OVA 1' I� 0 1
ll'MR),'SWCE L.EOFI/IdRD DBA L_PM PIRO �,,DERT IJ �ES
pp, Properties is a Rea�� Estate irwestTrnent erictity,,
�,ov, IIS. P�H Pro peties (as thedeve�oper) %,,v�shes to the
existing PoCrt Th`ateir at 430 W. Main Street
po, We (LP�,-,IPropertiesh-ll eve�oper) want to begin',vvork
imrnediatefy, witFi corn pietiur,� ir7G Fa�Hl 2017.
We beheve the reii�ovation and iresto ration of tl-Js hist.or`k.-al
pro perity will be we�' rece�ved by citizens of La Porte. ThisvviH
be an e�.-,iii"�ance�,ip,,e�i",�,,t,to Mair,� Street anci, be of benefit -to
bUS�,','inesses in La Portre.
t,,, De,vie�operreqUes>irs assistance from La Porte to fun�d flr�e foHov,,v,;',niq (,/4",
costs presented are estirnates) :
Ren'vat etl�,e existh,ig ri-UaV-C.-jUee and add iderrtif,,,ring Uac,�"e siqn� to
fropnt of bpL.fli[ding (20% added to cover sa�es tax, �,..v'iA,,-,novvn e�ectrical,�
ar'Cd St�-UCICL�,,V_aa WOH<)
Rep�'ace exis-dng three doub�e doors,,vvdth soiid woodwi-6� g�ass
vjindo%r�,J,s (-to �ook Hke oriqina� doors) and repfka.ce ticket vvirm°Joukr with
n)ew, SeCUT-e gitass$27,566
repai�otfiront en-brance $2524
Oearing reSU,',� acing tlIe parking area east of t�he
bi,,ii'Hding and adr.,iing a sn-iaH courtyairdMurri-iture 15'5 3 .�'Ii, 0 27
I
PORI" ON MAH,4 REMOVA HON
Repairterrazzo skzlewafl�k area �m front of theateir $4,872
PUHrc�"�ase & install video projection and sm,uiid $82,270
eqUipment, hg�)-rthng, &,nd aCOUIStiC parie�,�s
for sho%mir�g movirems, "FO Cr' �-TIUSica� acts, and oflher events
�,Yow, Repa'�r t,�,,)�,wo restrooms and adjoh,,iing room in, ba�cony
area (n( eded for extra festrooirn capacity) $17,772
roo, hnsta�,] one restroo�rn, ar,��d "green" roon-i $52f764 -
b e Fi h -i oll st a g e
In
POR r ON MAIN RENOVA"T I () N
0- C LA r rEe (B V, i1U EB p ;�? r, H CA D
ps. W)Uabh WAHIS c.,,. 'i iiri, !!- a Fb rt IE -11,11,
No, Ra 1 U Cl Co ",,"V U ip r En
$,',,'3 6,,,3, 8 7 1
27 0
. ... 0 f,,�,,,o bi, .. &
. . . ... ... g
roor`rl; neav carpet/fooring;
gnagEn,
low of rte"/ ' ct'i
Th X Ei 1) 1 El ATIEwitory, to red watecl/acl d E?C'1'1�11,
T, x �,etad to addeal,
"SI/1,1/1"I", 2 0 3 6 0
X a ", VALM of improvieci parking bt mi/
E, $35,618
PORI (M MM4 FMMOVATMN
Do, 1,""JUmber o-1, exis-dl'r,��q emj:floyees re�ocated to La Porte -0-
pm,,
wifl be, de�1z),oma, ndeInt on type of usage. Sorne �to b ,.)rovided by
rerrAing gr,oul.-.)s,, )
'10
Mrmber of paid angd/or inte�,,-n positions vve are wiHing "to
reserve for LPHS. �t is anticipated mosi. of the,��,�,,iorkers be
part-tirne, StUderwrt aqe%,P�torkers. 7
ipm, FuH-:tiIII" ne ennp�byees (frnwiagement) 1 peVi,,son ($2500,-$3000
per �nnnonflh)
o- Pa�rt-drne err,pioyees - concessic)ticket ceanin,
($7.50 $9,,,00 hourly); technicians
($15.00,-$20.00 hourly); seCUHty personneli ($30 -S -;,i3,5 ��nowrly,)
PORT ON MAIN RENOVATION
ad,6tion to the aa'TIOLH'�t requesteclfrom the City, i"t �s estimated that over,
$110,000 wiH be spent by owners to rr-,uake the needed repairs: repair water
darnage, c�ean up facflity, reepairrt, rep,cllace carpet/floor-ing, rep pace HgFatnq,
renova'te the c o r' essVon area and re-equip, etc. VWH� thie fur,, -Gds being,
reqa,,iested it Gs fept,,vve can provide a first 6 s faciHty that lvviH be sornetlhng4, the
cii,:y of La Porte can be proud of and v,6H be of bene -fit to other �oca�,
bushr,aesses. 'VvithoufttFiese 'Umals vvevA�lH be forced to(ryto operate t�'i',,�,e facHit""",
,,,P,4d,,,iout the abiHty tot tract greater performers, corFp?orate cps enteGe, or otp(-,Aer
rentaps.
We respect-FuHy request t&,,attl,�e city pro,m,dde tAh e 'FU rids .to aHowthe rePno,,vatioY,,s
mentioned previoa,.�,!spy (rtnarquee, siigqnu, exterior paint, parking pot, sid,,evvaH<
repa6r/reppaceryi nt, equiprnent). Th�e proj,,ection/
sound'eqU�p�.,m&en,,t vvou�d IL -,,,e o�f the quaHty entertain�,ers and rnus�,ca� g,,rC,LJIps are
�ooking for. The rnarquee and s�)qnagta, wM &,"a,vv attention to p'Aahn Street. "The
marqUE.'&-, roti; n.Lfld be made avai[aHe to pis rornote rciic,.,rj,,, slch,,oCJs � and otlher activi-dies
in La Po�rlte.
Funds requested: $309,195