HomeMy WebLinkAbout08-24-20 Regular Meeting of the La Porte Development Corporation Board
RICHARD WARREN,PRESIDENT
DANNY EARP, BOARD MEMBER
NANCY OJEDA, VICE-PRESIDENTJOHNNY MORALES,BOARDMEMBER
CHUCK ENGELKEN, BOARD MEMBERSHELLEY FULLER, BOARD MEMBER
VACANT,BOARD MEMBER
MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION BOARD
MEETING OFJULY27,2020
The City of La Porte Development Corporation Board met onMonday, July27,2020,at theCity Hall Council Chambers,
604 West Fairmont Parkway, La Porte, Texas,at5:00p.m., with the following in attendance:
Board members present:Richard Warren, Dany Earp, Shelley Fuller
Board membersattendingremotely: Chuck Engelken,Nancy Ojeda, Johnny Morales
Board members absent: Rachel Cotton
Council-appointed members present:Corby Alexander,City Manager;Lee Woodward, City Secretary; Clark Askins, Assistant
City Attorney
1.CALL TO ORDERPresident Warrencalled the meeting toorder at 5:00p.m.
2.CITIZENCOMMENT(Generally limited to five minutes per person; in accordance with state law, the time may be reduced if
there is a high number of speakers or other considerations.)
There were no speakers.
3.CONSENT AGENDA (Approval of Consent Agenda items authorize each to be implemented in accordance with staff
recommendations provided. An item may be removed from the consent agenda and added to the Statutory Agenda for full
discussion upon request by a member of the Committee present at this meeting.)
(a)Approvetheminutes of the meeting held on April27, 2020. \[Richard Warren, President\]
BoardmemberEngelkenmoved to approve the minutesof the April27, 2020,meeting;the motion was adopted, 6-0.
4PUBLIC HEARING AND ASSODICATED MATTERS
(a) The Board will hear comments from the public on 100 W. Main Street Renovation Project, a project to promote
and develop new and expanded business enterprises, specifically for site, infrastructure, and related
improvements at 100 West Main Street, which location is legally described as Lots 18, 19, 20, & 21 & the south
14 feet of Lot 22, Block 60, Town of La Porte Subdivision, in a total amount not to exceed $85,000.00. \[Jason
Weeks, Assistant City Manager\]
Corby Alexander, City Manager, provided a brief summary. The public hearing opened at 5:05p.m. The public hearing
endedat 5:06p.m.
5.AUTHORIZATIONS
(a)Presentation, discussion, and possible action to approve the 100 W. Main Street Renovation Project, a project to
promote and develop new and expanded business enterprises, specifically for site, infrastructure, and related
improvements at 100 W. Main Street, which location is legally described as Lots 18, 19, 20, and 21, and the south
14 feet of Lot 22, Block 60, Town of La Porte Subdivision, in a total amount not to exceed $85,000.00. \[Jason
Weeks, Assistant City Manager\]
Corby Alexander, City Manager, provided a brief summary. Board member Earpmoved to approve an incentive grant in
the amount of $85,000.00 to the applicant, Marion (Marty) Campise, for the refurbishment/renovation of 100 W. Main
Street;the motion was adopted, 6-0.
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July27, 2020, La Porte Development Corporation Board Minutes
(b)Presentation, discussion, and possible action to approve an enhancement grant to Marion (Marty) and Vicki
Campise for a refurbishment/renovation of the old bank building located at 100 W. Main Street in downtown
La Porte. \[Jason Weeks,Assistant City Manager\]
Corby Alexander,City Manager,provided a brief summary.Board member Earpmoved to approve an enhancement grant
for $50,000.00to Marion (Marty) and Vicki Campise for a refurbishment/renovation of 100 W. Main Street;the motion was
adopted, 6-0.
(c)Presentation, discussion, and possible action to approve the Office of Economic Development's proposed La
Porte Development Corporation budget for FY 2020-2021. \[Jason Weeks, Assistant City Manager\]
Board member Engelkenmoved to approve the La Porte Development Corporation fiscal year 2020-2021 economic
development budget: the motion was adopted,6-0.
6.SET DATE FOR NEXT MEETING
The next meetingwas scheduled for August 24, 2020.
7.Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of
staff regarding specific factual information or existing policy from the Committee members and City staff, for which
noformal action will be discussed or taken.
There were no comments.
8.ADJOURNThe meeting was adjourned at 5:30p.m.
___________________________________
Lee Woodward,City Secretary
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July27, 2020, La Porte Development Corporation Board Minutes
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:August 24, 2020
Requested By:Jason Weeks, Asst. City Mgr.Source of Funds:
Department:Administration/CMO
Account Number:
Amount Budgeted:
ReportResolutionOrdinance
Amount Requested:
Exhibits:Bylaws for the Corporation
Budgeted Item:YesNo
SUMMARY& RECOMMENDATION
According to Section 3.02 of the Bylaws for theLa Porte Development Corporation, the
Board is required to electa President and Vice-President for the next fiscal year by
October 1st. The current President is Richard Warren and the current Vice-President is
Nancy Ojeda.
Staff recommends the Boardelectinga President and Vice President for the fiscal year
beginning October 1, 2020 and ending September 30, 2021.
ACTION REQUIRED BY THE BOARD
Consider and electa President and Vice-President for the La Porte Development
Corporation Board for the fiscal year beginning October 1, 2020 and ending September
30, 2021.
Approved for the La Porte Development Corporation Boardmeeting agenda
Corby D. Alexander, City ManagerDate
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:August24, 2020
Requested By:Jason Weeks, Asst. City Mgr.Source of Funds:Special Programs
Department:Administration/CMO
Account Number:038-6030-565-9997
Amount Budgeted:
ReportResolutionOrdinance
Amount Requested:$85,000
Exhibits:Development Agreement, Incentive Application,
Budgeted Item:YesNo
Design & Site Plans
SUMMARY & RECOMMENDATION
On February 24, 2020, staff brought to the La Porte Development Corporation Board a
project in downtown La Porte. The applicant Marion (Marty) and Vicki Campise have
purchased the Main Street bank building, which was previ
Ceramics. The building is located at 100 W. Main Street. The initial renovation proposal
included remodeling the building to have two (2) or three (3) retail spaces, along with
three (3) apartment units. There is a need to significantly remodel due to the roof
needing to be completely replaced, the entire façade needing to be redone and the
0,000. Staff ran the project through
the EDC matrix, which indicated that this project would be eligible for a $22,365
incentive. This project has the potential to have more intangible value to the City,
specifically due to the foot traffic hub on Main Street.
On February 24th, the La Porte Development Corporation Board discussed the project
and approved to move forward with an incentive package for this project in an amount
not to exceed of $85,000. As required by state law, a sixty (60) day public comment
Bay Area Observer on March 5, 2020. Since this date, staff has not received any citizen
feedback regarding this incentive application.
Since the February 24th meeting, the applicant has moved further along on this project
and has made some changes to the initial project. Currently, the applicant has secured
agreements with two (2) tenants to occupy the first floor of this building. These tenants
are Goodies and the La Porte-Bayshore Chamber of Commerce. The primary reason
for the reduction from three (3) to two (2) commercial business was due to the Chamber
needing an additional 500 sq. ft. of space, thereby only allowing capacity for these two
(2) commercial businesses. Additional changes reduced the number of apartments on
the second floor from three (3) to two (2) due to a resident requiring 1800 sq. ft. of
space. To-date, the applicant has secured rental tenants for the apartment units. The
initial investment ofthe applicant was estimated at $500,000; however, once the
development team gathered the necessary documentation for the renovation, this
estimate has increased to $700,000. The total investment will be $850,000, including
land and building at $150,000 and the total renovations.
In addition to a request for an incentive for this project, the applicant submitted a request
for an enhancement grant in the amount of $50,000. On July 27, 2020, the La Porte
Development Corporation Board approved the enhancementgrant in the amount of
$50,000 and conducted a public hearing on the incentive project in the amount of
$85,000 and approved moving forward with the incentive agreement. On August 24,
the La Porte Development Corporation Board will consider the development agreement
attached.
Summary
In order for Mr. & Mrs. Campise to make this project work they submitted for an
additional application (in addition to the incentive grant) for an enhancement grant to
aid in the refurbishment/renovation of the old bank building at 100 W. Main Street. The
Board approved a $50,000 reimbursement of his projected $850,000 in façade,
signage, roofing and parking eligible expenses. Due to this request being in excess of
$25,000, the application required action by the City Council,which will occur on August
development agreement concerning the additional funding through an incentive project
for an amount not to exceed $85,000. Below outlines detailsof this draft development
agreement:
Total cash incentive of $85,000 with following payment schedule: two payments
of $40,000 and $45,000
o First payment of $40,000, within 30 days of substantial completion of
construction/ renovations. This payment is estimated to occur around
January 2021.
o Second payment of $45,000 when building is occupied with four (4) full-
time jobs (confirmed by documentation from each business stating such).
The applicant will be responsible for maintaining jobs 5 years after 2nd
payment. This payment is estimated to occur around June 2021.
Claw-
maintain the four (4) jobs for five (5) years, each year potential claw-back amount
decreases by $17,000.
Also, this item will beconsidered for approval by the La Porte city Councilon August
24th. Staff recommends the La Porte Development Corporation Boardapprove the
development agreement for the 100 W. Main Street project for the
refurbishment/renovation of the old bank building located at 100 W. Main Street in La
Porte, Texas not to exceed $85,000.
ACTION REQUIRED BY BOARD
Consider, discuss and approve aDevelopment Agreement for 100 W. Main Street, an
incentive for refurbishment/renovation of the old bank building located at 100 W. Main
Street in La Porte, Texasnot to exceed $85,000.
Approved for the La Porte Development Corporation Board meeting agenda.
Corby D. Alexander, City ManagerDate
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE
DEVELOPMENT COPRPORATION,ANDMARION CAMPISE AND VICKI CAMPISE,FOR USE OF
TYPE B DEVELOPMENT CORPORATIONSALES TAX FUNDS
THIS AGREEMENT made by and entered into this 24thday of August 2020between the La
Porte Development Corporation, aType B non-profit corporation operating under authority of Texas
Local Government Code Chapters501 and 505Marion Campise,hereinafter
WITNESSETH:
WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within
the Cityfor promotion of economic development and the LPDC is authorized touse such tax revenues
for certain qualifying projects and other economic developmentrelated purposes; and
WHEREAS, Recipient is aTexasbasedcommercial developmentcompanythat specializesin
rehabilitating underutilized commercial buildings; and
WHEREAS, Recipient wishes torenovate the exterior and interior of athe building located at
100 West Main Street., and make associated site improvements, for the purpose of operatingamixed
use commercial and residential facility and which would1) result in the expenditure by Recipient of an
estimated $650,000.00 in capital improvements;and 2)employ an estimatedfour(4)full time
personnel; and
WHEREAS, Recipient has requested that LPDCprovide financial incentives to Recipient to
contribute towards the cost of renovation of the property at 100 West Main Streetunder a qualifying
projectof the LPDCfor infrastructure, site and related improvements,asauthorized by Texas Local
Government Code Chapters 501 and 505,and it is the desire of LPDCto assist in the funding ofsame,
finding that such expenditures will promote or develop new or expanded business enterprises.
WHEREAS, Texas law and the by-lawsof the LPDCrequire that certainexpenditures and
projects by the LPDCbe approved by the governing body of the City; andwhereasthe LPDCBoard
has duly approved such project and the expendituresfor same have been authorized by the La Porte
City Council; and
NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in
considerationof 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
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In consideration of Recipientrenovating the existing structure at 100 West Main Street and
operating a mixed use commercial and residential facilityat the subject siteBuilding,which
proposal was consideredin that certain public hearing authorizingaproposed project for the
expenditure of LPDCfundsfor the promotion or development of new or expanded business enterprises,
held before theLPDConJuly 27, 2020,LPDCagrees to provide Recipient anincentivepackage
consisting of acash paymentinatotal sum not to exceed$85,000.00, to be distributed intwo
increments of$40,000 and $45,000.00each,with each distribution conditionedon the attainment of
certain performance thresholds, more specifically outlinedasfollows:
1)Acash incentivepaymentinanamount equal to $40,000.00will be distributed to
Recipient by LPDC, upon a) receipt by LPDC ofproof of substantial completion of
renovation of the Building and b) proof of minimum capital investment in the amount of
$650,000.00 applied towards renovation of the Building and related infrastructure and
site work,exclusiveof the cost to Recipient to purchase the existing real estate tract
and vacant building.However, in no case will the $40,000.00 payment bemadeby
LPDC ifdocumentationsubstantiating 1) substantial completion of the renovation of
the Building and 2) the expenditure of no less than $650,000.00 applied towards capital
improvements to the Buildingis not delivered to and received by LPDC by January 31,
2021. In the case that proof ofsubstantial completion of renovation of the Building and
minimum capital investment of $650,000.00 applied towards capital improvements to
the Building is presented to LPDC on or before saidJanuary 31, 2021deadline, the
LPDC shallconvene a meeting of the LPDC Board of Directors for a date no later than
forty-five (45)days after receipt of proof of substantial completion of the renovation of
the Buildingand minimum capital investment of $650,000.00 by LPDC from Recipient.
Upon verificationof the substantial completion of the Building and minimum capital
investment of $650,000.00, 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 toRecipient within a period notto exceed thirty (30) days.
In the case where Recipient fails to submit proof of substantial completion of renovation
of the Building and proof of a minimum capital investment in the amount of
$650,000.00 by the January 31, 2021deadline, despite being disqualified for the
incentive payment Recipient will remain eligible to qualify for receipt of the $45,000.00
incentive payment under Paragraph 2 below, in so far as the conditions precedent for
permanent employment of four positions is established in such paragraph ismet.
However, in such case Recipient will be required to submit proof of substantial
completion of renovation of the Buildingin order to qualifyfor the incentive payments
outlined in Paragraph 2below.
2)A cash incentive payment in an amount equal to $45,000.00 will be distributed to
Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing
that entities leasing space within the Building cumulatively employ aminimum of four
(4) full time employeesat the Buildingsiteas of June 30, 2021.However, in no case
will the $45,000.00 payment be made by LPDC if proof of the employment of a
minimum of four(4) full time personnelas of June 30, 2021is not delivered to and
received by LPDC by August 30, 2021.Proof of employment, for purposes of this
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agreement, may be satisfied by submission to LPDC by the saidAugust 30, 2021
deadline of a) copies of 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 notarizedstatement
executed by Building site lesseesaffirming that a cumulative four(4) full time
employees are employed inpositions permanently located at the Buildingsite.
In the case that proof of employment of four (4) full-time personnelis presented to
LPDC on or before said August 30, 2021deadline, 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 employment by lessees at the Building site byRecipient. Upon verification
of employmentas reflected by formal vote of the LPDC Board of Directors, LPDC will
then remit the $45,000.00 to Recipient within a period not to exceed thirty (30) days.
In the event that Recipient qualifies for the $45,000.00 incentive installment based upon proof of
employment of four (4) full-time positions by lessees located at the Building site pursuant to Article 1,
Paragraph 2, above,then in such case Recipient shall be required to prove the continuous employment
by lessees at the Building site of a cumulative minimum of four (4) full-time positions, for acontinuous
five (5) year period. At the conclusion of each calendar year during suchfive (5) year period, beginning
on December 31, 2021, through and including December 31, 2025, Recipient shall be required to
submit to the LPDC proof of employment of a minimum of four (4) full-time positions at the Building
site, in the manner required under Article 1, Paragraph 2, above. Should Recipient fail to provide proof
of the employment of four (4) full-time employees at the end of a calendar year, then for that year
Recipient shall be responsible for remitting to the LPDCthe sum of $17,000.00 representing recapture
out of the previously awarded $85,000.00 incentive paid under this Agreement. However, in the
instance that Recipient provides proof of employment of a minimum of four (4) full-time positions at the
end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $17,000.00
recapturefor that year.
If Recipient fails to qualify for the $40,000 incentive installment provided for in Article I, Paragraph 1
but qualifies for payment of the $45,000.00 payment under Article 1, Paragraph 2, then in that case the
obligations of Recipient to maintain the continuous employment of four (4) full-time personnel at the
Building site shall continue to apply, but in the case of failure to maintain employment of four (4) full-
time employees at the Building site shall subject Recipient to the requirement to remit to the LPDC
$9000.00 as recapture out of the previously awarded $45,000 incentive paid under this Agreement,
instead of $17,000.00.
ARTICLEII
All funds received as herein provided shall be solely for the purpose of contributing towards
Recipientin the renovationof the exterior and interior of the building located at 100 West Main
Streetand for the making ofassociated site and infrastructure improvements, to operate a mixed-use
commercial and residential facility.Recipient further acknowledges that the incentive grant provided for
herein is tied to a project of the LPDC for the promotionor development ofnew or expanded business
enterprises,as authorized by Texas Local Government Code chapters 501 and 505.
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ARTICLE III
Disbursement and/or retention of the cash incentive identified in Article I of this Agreementshall
be made as follows:
A.Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent
or conditions subsequent contained withinArticle I of this Agreement.
B.LPDCobligation to Recipient shall not exceed $85,000.00, nor shall LPDCbe obligated to
reimburse Recipient for requests delivered to LPDCafter the termination of this Agreement.
ARTICLE IV
Recipient understands that the funds paid to Recipient by the LPDCare derived from tax
revenues collected under Texas Local Government Code 505.252,and that LPDChasestimated 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 isless than 90% ofthe estimated
tax revenues to be collected in any fiscal year during the term of this Agreement, LPDCwill 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 Iof this Agreement,LPDCmay cease
all future payments hereunder and terminate this Agreement. In addition, LPDCshall 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, including1) LPDCfunds spent by Recipient in contravention of this Agreement
and 2) any LPDCfunds previously paid to Recipientbut not yet spent by Recipient.In each such case,
the previously paid cash paymentor payments shall be remitted to the LPDCwithin 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 beginningon the date of approval by LPDCand ending
July 31, 2026.
ARTICLE VII
All funds provided by the LPDCpursuant to this Agreement may beused only for the purposes
authorized by this Agreement.Notwithstanding Article I, above, City shall be under no obligation to
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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 LPDCand 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
esponsibilities 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 beperformed by Recipient hereunder.
Recipient covenants and agrees to, and does hereby indemnify, defend, and hold harmless LPDCand
all their respective officers, agents, and employees from all suits, actions, claims, and expenses of any
character, includi
whether real or asserted, sustained by any person or property by orin consequence of any intentional
or negligent act, omission, or conduct of Recipient, its agents, servants or employees.
ARTICLE X
This Agreement may be amended by the mutual agreement of the Parties hereto in writing to be
attached to and incorporated into this Agreement.
ARTICLE XI
Recipientshall 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 whichmay be required of Recipients generally.
ARTICLE XII
Recipient may not assign this Agreement,or any of the benefits provided herein including but
not limited to incentive paymentsidentified in Article I,without the written consent of LPDC.
ARTICLE XIII
The waiver by LPDCof 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.
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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 LPDCnor Participant shall be required to perform any term, condition, or covenant in
this Agreement so long as such performanceis 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 LPDCor
Recipient except as herein provided, and which by the exercise of due diligence LPDCor Recipientis
unable, wholly or in part, to prevent or overcome.
ARTICLE XVIII
In submitting this application, the applicant whose signature appears belowaffirms its intent and
commitmentto 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
thepublic subsidyfor which the application is being submitted. The applicant further certifies its
understanding and agreement that if it is convicted of a violation of 8 U.S.C. Section 1324a(f), providing
for civil and/or criminal penalties for engaging in a pattern or practice of knowingly hiring or continuing
to employ unauthorized aliens, it shall repay the amount of the public subsidy with interest, at the rate
and according to the terms of the agreement signed under Section 2264.053 of the Government Code,
not later than the 120th day after the date the city notifies the business of the violation.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto, superseding all oral or
written pervious and contemporary agreements between the Parties, which relate to matters in this
Agreement.
SIGNED AND AGREED to by LPDCand Recipient on the dates indicated below.
LA PORTE DEVELOPMENT CORPORTION
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__________________________
Richard Warren, President
___________________
Date
ATTEST
___________________________
Secretary of the Corporation
Marion Campise
_________________________________
_________________________
Date
ATTEST
________________________________
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