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Home My WebLink About10-25-21RICHARD WARREN, PRESIDENT DANNY EARP, BOARD MEMBER BRENT McCAULLEY, COUNCILPERSON JOHN BLAKEMORE, BOARD MEMBER RACHEL COTTON, BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT CHUCK ENGELKEN, COUNCILPERSON 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 October 25, 2021, at the City Hall Council Chamber, 604 West Fairmont Parkway, La Porte, Texas, beginning at 5:00 pm to consider the following items of business: Remote participation is available, also. Attend via a screen using this link: https://us02web.zoom.us/j/83259067706?pwd=enhZR3hBa3dja0t2NmZQUVoxMjB0dz09 Join by phone at 877-853-5257 or 888-475-4499. The meeting I D is 832 5906 7706 and the passcode is 711656. 1.CALL TO ORDER 2.CITIZEN COMMENT (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.) 3.AUTHORIZATIONS (a)Presentation, discussion, and possible action to approve the minutes of the regular meeting of the La Porte Development Corporation held on September 27, 2021. [President W arren] (b)Presentation, discussion, and possible action to approve a reimbursement payment in the amount of $14,140.88 in connection with an April 26, 2021, enhancement grant to Mike Snider for business sign improvements at Snider Transmission, located at 10335 W. Fairmont Parkway in La Porte, Texas. [Jason W eeks, Assistant City Manager] (c)Presentation, discussion, and possible action to approve a payment of $45,000.00 to Marty and Vicki Campise in accordance with an economic development incentive agreement for the use of Type B Development Corporation Sales Tax Funds for the refurbishment/renovation of the old bank building located at 100 W. Main Street in La Porte, Texas. [Jason W eeks, Assistant City Manager] (d)Presentation, discussion, and possible action to provide administrative staff with direction for long-term strategic planning on the use of La Porte Development Corporation funds. [Jason W eeks, Assistant City Manager] 4.SET NEXT MEETING 5.BOARD COMMENTS 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 no formal action will be discussed or taken. 6.ADJOURN If, during the course of the meeting and discussion of any items covered by this notice, the La Porte Development Corporation Board determines that a Closed or Executive Session of the Board is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section 551.071 - consultation with counsel on legal matters; Section 551.072 - deliberation regarding purchase, exchange, lease or value of real property; Section 551.073 - deliberation regarding a prospective gift; Section 551.074 - personnel matters regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; Section 551.076 - implementation of security personnel or devices; Section 551.087 - deliberation regarding economic development negotiation; Section 551.089 - deliberation regarding security devices or security audits, and/or other matters as authorized under the Texas Government Code. If a Closed or Executive Session is held in accordance with the Texas Government Code as set out above, the La Porte Development Corporation Board will reconvene in Open Session in order to take action, if necessary, on the items addressed during Executive Session. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (281-470-5019), two working days prior to the meeting for appropriate arrangements. Pursuant to Texas Government Code Sec. 551.127, on a regular, non-emergency basis, members may attend and participate in the meeting remotely by video conference. Should that occur, a quorum of the members will be physically present at the location noted above on this agenda. CERTIFICATE I, Lee W oodward, City S ecretary, do hereby certify that a copy of the October 25, 2021, La Porte Development Corporation Board agenda was posted on the City H all bulletin board, a place convenient and readily accessible to the general public at all times, and to the C ity's website, www.LaPorteT X .gov, in compliance with Chapter 551, Texas Government Code. DATE OF POSTING TIME OF POSTING TAKEN DOW N Lee Woodward Lee W oodward, City Secretary Page 1 of 3 September 27, 2021, La Porte Development Corporation Board Minutes RICHARD WARREN PRESIDENT BRENT MCCAULLEY COUNCILPERSON RACHEL COTTON BOARD MEMBER CHUCK ENGELKEN COUNCILPERSON DANNY EARP BOARD MEMBER JOHN BLAKEMORE BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF SEPTEMBER 27, 2021 The City of La Porte Development Corporation Board met on Monday, September 27, 2021, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 4:30 p.m., with the following in attendance: Board members present: Richard Warren, Nancy Ojeda, Chuck Engelken, Danny Earp (arrived 4:41 p.m.), John Blakemore, Brent McCaulley, Rachel Cotton (arrived at 4:54 p.m.) Board members attending remotely: None Board members absent: None Council-appointed members present: Corby Alexander, City Manager, Lee Woodward, City Secretary; Clark Askins, Assistant City Attorney (arrived 4:41 p.m.) 1. CALL TO ORDER – President Warren called the meeting to order at 4:39 p.m. 2. CITIZEN COMMENT (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. AUTHORIZATIONS (a) Presentation, discussion, and possible action to approve the minutes of the regular meeting held on July 26, 2021. [President Warren] Member Engelken moved to approve the minutes of the July 26, 2021, meeting; the motion was seconded by Member Ojeda; the motion was adopted, 5-0. (b) Presentation, discussion, and possible action to elect a President and Vice -President for the La Porte Development Corporation Board for the fiscal year beginning October 1, 2021, and ending September 30, 2022. [Jason Weeks, Assistant City Manager] Member Engelken moved to elect Richard Warren as President and Nancy Ojeda as Vice- President for Fiscal Year 2021-2022; the motion was seconded by Member McCaulley; the motion was adopted, 5-0. (c) Presentation, discussion, and possible action to approve a reimbursement payment in the amount of $7,408.50 to applicant Patrasia Hefley, in connection with Enhancement Grant Project approved on June 28, 2021, for parking lot and drainage enhancements to property located at 831 & 901 S. Broadway Street in La Porte, Texas. [Jason Weeks, Assistant City Manager] Member Ojeda moved to approve a reimbursement payment in the amount of $7,408.50 to applicant Patrasia Hefley, in connection with Enhancement Grant Project approved on June Page 2 of 3 September 27, 2021, La Porte Development Corporation Board Minutes 28, 2021, for parking lot and drainage enhancements to property located at 831 & 901 S. Broadway Street in La Porte, Texas; the motion was seconded by Member Earp; the motion was adopted, 6-0. (d) Presentation, discussion, and possible action to approve publishing a notice to b egin a 60-day comment period for eight (8) projects totaling $1,791,031 for fiscal year 2021 - 2022: Downtown Lighting & Enhancements - $150,000.00; Enhancement Grant Program - $100,000.00; Fairmont Park Splash Pad (1/3 Funding) - $200,000.00; Dog Park at Fairmont Park - $212,275.00; Broadway Street Trail Lighting Phase II - $ 390,156.00; Signage Project Phase I - $350,000.00; Fairmont Park Improvements (Exercise Shade Structure) - $52,600.00; and Pecan Park Parking Lot Improvements - $336,000.00. [Jason Weeks, Assistant City Manager] Member Earp pulled the dog park item. Member Earp moved to approve publishing a notice to begin a 60-day comment period for seven projects totaling $1,578,756.00 for fiscal year 2021-2022: Downtown Lighting & Enhancements - $150,000.00; Enhancement Grant Program - $100,000.00; Fairmont Park Splash Pad (1/3 Funding) - $200,000.00; Broadway Street Trail Lighting Phase II - $390,156.00; Signage Project Phase I - $350,000.00; Fairmont Park Improvements (Exercise Shade Structure) - $52,600.00; and Pecan Park Parking Lot Improvements - $336,000.00; the motion was seconded by Member Ojeda; the motion was adopted, 7-0. Member Earp moved to approve publishing a notice to begin a 60-day comment period for the dog park at Fairmont Park, less the splash pads but with some watering station option, for an amount not to exceed $72,275.00; the motion was seconded by Member Ojeda; the motion was adopted, 7-0. (e) Presentation, discussion, and possible action to approve funding for the La Porte Gold Star Families Monument Committee of an amount up to $22,000.00 for installation of a monument at Five Points Plaza Park. [Jason Weeks, Assistant City Manager] Member Engelken moved to approve funding for the La Porte Gold Star Families Monument Committee of an amount up to $22,000.00 for installation of a monument at Five Points Plaza Park; the motion was seconded by Member Earp; the motion was adopted, 7-0. (f) Presentation, discussion, and possible action to approve revisions to the La Porte Enhancement Grant Program policy. [Jason Weeks, Assistant City Manager] Member Earp to approve revisions to the La Porte Enhancement Grant Program policy; the motion was seconded by Member Blakemore; the motion was adopted, 7-0. (g) Presentation, discussion, and possible action on a proposal for financial incentives to Mark Rosado, applicant, for construction of Battleground Saloon, located at 116 S. Broadway Street in La Porte, Texas. [Jason Weeks, Assistant City Manager] Member McCaulley moved to approve a proposal for financial incentives not to exceed $27,308.00 and the publication of a notice to begin a 60-day comment period, for construction of Battleground Saloon, located at 116 S. Broadway Street in La Porte, Texas ; the motion was seconded by Member Earp; the motion was adopted, 7-0. 4. SET DATE FOR NEXT MEETING The next meeting date was scheduled for October 25, 2021. 5. BOARD COMMENTS 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 no formal action will be discussed or taken. Page 3 of 3 September 27, 2021, La Porte Development Corporation Board Minutes The Board wished Mr. Rosado good luck in his business. 6. ADJOURN – The meeting was adjourned without objection at 5:48 p.m. ___________________________________ Lee Woodward, City Secretary REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: October 25, 2021 Requested By: Jason Weeks, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: Application, Vendor Invoice, Before & After Photos, and Invoice/Pymnt SUMMARY & RECOMMENDATION On April 26, 2021, the La Porte Development Corporation Board approved an enhancement grant to Mike Snider for improvements to his Snider Transmission business sign, which is located at 10335 W. Fairmont Parkway in La Porte, Texas. The applicant was interested in installing two (2) 5’x10’ video display screen (LED) signs in front of his transmission auto repair business. As mentioned, the building is located at 10335 W. Fairmont Parkway, which is just west of the Farrington & W. Fairmont Pkwy. intersection. The applicant estimated a total capital investment of $28,281.75 for this project, of which 50% ($14,140.88) is eligible for reimbursement once the project is completed. The week of September 20, 2021, the applicant provided staff with invoice receipts, payments on invoice, and photos of the final project for staff and the Board to approve for reimbursement payment. Below is the summary of receipts for the sign improvements: Signage: • Sign of the Times (Seabrook) - $35,967.50 Originally, the project was estimated to cost $28,281.75 based on the lowest price from Sign of the Times vendor. However, the project cost the applicant $35,967.50, which is $7,685.75 more than originally projected. Based on the submitted invoice and payment, and the Boards approval of the amount not to exceed, the applicant’s reimbursable amount is $14,140.88. Staff requests the Board approve a reimbursement to Mike Snider in the amount approved by the Board not to exceed, $14,140.88 for his enhancement grant project. ACTION REQUIRED BY BOARD Appropriation Source of Funds: 015 – General CIP Enhancement Grant Account Number: 015-9892-993-1100 Amount Budgeted: $192,399 Amount Requested: $14,140.88 Budgeted Item: Yes No Approve reimbursement payment on an enhancement grant in the amount of $14,140.88 to the applicant, Mike Snider for the sign enhancements for his business, Snider Transmission, which is located at 10335 W. Fairmont Parkway in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date SNIDER TRANSMISSION – AFTER PHOTOS SNIDER TRANSMISSION – AFTER PHOTOS REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: October 25,, 2021 Requested By: Jason Weeks, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: New Amended Development Agreement, Documented Expenses, Incentive Application, & Affidavits confirming 2nd Benchmark SUMMARY & RECOMMENDATION The La Porte Development Corporation (LPDC) Board approved an original and amended & restated development agreement related to the project at 100 W. Main Street. The applicants Marion (Marty) and Vicki Campise have purchased the Main Street bank building located at 100 W. Main Street. The initial investment of the applicant was increased from $500,000 to $700,000, with the total investment of $850,000, including land and building at $150,000 and the total renovations. However, the development agreement states the applicant must invest a min imum of $650,000 exclusive of the cost to purchase the land and building. Additionally, the development agreement specified that for the second benchmark that the applicant had to provide documentation to support that the businesses located in this buildin g employed at a minimum of four (4) full-time employees by August 2021. On February 24th, the LPDC 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. Due to several delays in starting and performing the work, the applicant had not been able to satisfy the requirements of the original 1st benchmark. At the April 26, 2021 LPDC Board meeting, the Board approved an amended and restated development agreement by extending the first benchmark to May 15, 2021. Again on May 24, 2021, the Board approved another extension of the development agreement for an additional 60 days. On June 28, 2021, the applicant provided sufficient documentation to support meeting the 1st benchmark. The Board approved payment of the 1st benchmark of $40,000.00. On October 1, 2021, staff met with Griselda Hernandez, the owner of Goodies, which is located at 102 W. Main Street and is a tenant of the applicant, Marty and Vicki Campise. She provided a signed affidavit confirming that as of August 2021 she employed three (3) full-time equivalent employees at her business. She has one full - time employee and five (5) part-time employees. Staff reviewed canceled payroll checks verifying that part-time employees (EG) worked 50 hours, (EL) worked 67 hours, Appropriation Source of Funds: Special Programs Account Number: 038-6030-565-9997 Amount Budgeted: $45,000 Amount Requested: $45,000.00 Budgeted Item: Yes No (SF) worked 12 hours, (HL) worked 22.50 hours, and (GG) worked 33.40 hours during the two week pay period of August 3-17. This equated to a two-week total hours of employees of 184.90 hours, which is 92.45 hours per week. This provided documentation that the five (5) part-time employees equated to two (2) FTE’s. Additionally, she employees one full-time employee, which was verified as employee (HR) that works 40 hours per week and is salaried at 40 hours per week. Based on the affidavit and the verified documentation, the applicant has met a portion of the last benchmark, which requires four (4) full-time employees as of August 2021. Also, on October 1, 2021, staff received documentation from La Porte-Bayshore Chamber of Commerce that verified that as of August 2021 they employed two (2) full- time employees. Staff reviewed their Form 941 Quarterly reports for the 1 st and 2nd quarters of 2021 and compensation general ledger for June through August 202 1, which identified three (3) employees. One of those employees is no longer working at the Chamber; therefore, the Chamber employed two (2) full -time employees as of August 2021. Based on staff’s review and verification of requirements stipulated in the 2nd benchmark, we believe that the applicant has sufficiently met the 2nd benchmark requirements of having a minimum of four (4) full-time employees employed at this location as of August 2021. Staff recommends the Board approve payment of $45,000.00 for the 2nd benchmark noted in the development agreement. ACTION REQUIRED BY BOARD Approve payment of $45,000.00 to Marty and Vicki Campise according to the development agreement for the use of Type B Development Corporation Sales Tax Funds for refurbishment/renovation of the old bank building located at 100 W. Main Street in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda. Corby D. Alexander, City Manager Date 1 AMENDED AND RESTATED ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION, AND MARION CAMPISE AND VICKI CAMPISE, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS That AGREEMENT made by and entered into the 24th day of August 2020 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 Marion Campise, hereinafter referred to as “Recipient”, is hereby amended and restated as follows:. WITNESSETH: WHEREAS, the voters of the City of La Porte authorized the levying of additional sales tax within the City for promotion of economic development and the LPDC is authorized to use such tax revenues for certain qualifying projects and other economic development related purposes; and WHEREAS, Recipient is a Texas based commercial development company that specializes in rehabilitating underutilized commercial buildings; and WHEREAS, Recipient wishes to renovate the exterior and interior of a the building located at 100 West Main Street., and make associated site improvements, for the purpose of operating a mixed use commercial and residential facility and which would 1) result in the expenditure by Recipient of an estimated $650,000.00 in capital improvements; and 2) employ an estimated four (4) full time personnel; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of renovation of the property at 100 West Main Street under a qualifying project of the LPDC for infrastructure, site and related improvements, as authorized by Texas Local Government Code Chapters 501 and 505, and it is the desire of LPDC to assist in the funding of same, finding that such expenditures will promote or develop new or expanded business enterprises. WHEREAS, Texas law and the by-laws of the LPDC require that certain expenditures and projects by the LPDC be approved by the governing body of the City; and whereas the LPDC Board has duly approved such project and the expenditures for same have been authorized by the La Porte City Council; and NOW THEREFORE, in consideration of the covenants and conditions stated herein, and in consideration of the mutual benefits that will accrue to each of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: 2 ARTICLE I In consideration of Recipient renovating the existing structure at 100 West Main Street and operating a mixed use commercial and residential facility at the subject site (“Building” 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 July 27, 2020, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $85,000.00, to be distributed in two increments of $40,000 and $45,000.00 each, with each distribution conditioned on the attainment of certain performance thresholds, more specifically outlined as follows: 1) A cash incentive payment in an amount equal to $40,000.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof 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, exclusive of the cost to Recipient to purchase the existing real estate tract and vacant building. However, in no case will the $40,000.00 payment be made by LPDC if documentation substantiating 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 Building is not delivered to and received by LPDC by July 15, 2021. In the case that proof of substantial 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 said July 15, 2021 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 substantial completion of the renovation of the Building and minimum capital investment of $650,000.00 by LPDC from Recipient. Upon verification of 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 to Recipient within a period not to 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 July 15, 2021 deadline, 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 is met. However, in such case Recipient will be required to submit proof of substantial completion of renovation of the Building in order to qualify for the incentive payments outlined in Paragraph 2 below. 3 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 a minimum of four (4) full time employees at the Building site as of August 31, 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 personnel as of August 31, 2021 is not delivered to and received by LPDC by October 31, 2021. Proof of employment, for purposes of this agreement, may be satisfied by submission to LPDC by the said October 31, 2021 deadline of a) copies of Building site lessees’ 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 notarized statement executed by Building site lessees affirming that a cumulative four (4) full time employees are employed in positions permanently located at the Building site. In the case that proof of employment of four (4) full-time personnel is presented to LPDC on or before said October 31, 2021 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 employment by lessees at the Building site by Recipient. Upon verification of employment as 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 a continuous five (5) year period. At the conclusion of each calendar year during such five (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 LPDC the 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 recapture for 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 4 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. ARTICLE II 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 building located at 100 West Main Street and for the making of associated 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 promotion or development of new or expanded business enterprises, as authorized by Texas Local Government Code chapters 501 and 505 . ARTICLE III Disbursement and/or retention of the cash incentive identified in Article I of this Agreement shall be made as follows: A. Disbursement shall be made to Recipient, subject to the satisfaction of the conditions precedent or conditions subsequent contained within Article I of this Agreement. B. LPDC’s obligation to Recipient shall not exceed $85,000.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV Recipient understands that the funds paid to Recipient by the LPDC are derived from tax revenues collected under Texas Local Government Code 505.252, and that LPDC has estimated the tax revenues to be collected during the term of this Agreement. Recipient further understands, acknowledges, and agrees that if the tax revenue actually collected is less than 90% of the estimated tax revenues to be collected in any fiscal year during the term of this Agreement, LPDC will be under no obligation to provide funding to Recipient for any payment or payments during or after the fiscal year for which there is a revenue shortfall. Upon execution of the Agreement, funds will be placed in a City of La Porte designated commitment account for purposes of this Agreement. ARTICLE V In the event of any default by Recipient hereunder, including, but not limited to, use of the funds provided herein for purposes other than those stated in Article I of this Agreement, LPDC may cease all future payments hereunder and terminate this 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 5 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 July 31, 2026. ARTICLE VII All funds provided by the LPDC pursuant to this Agreement may be used only for the purposes authorized by this Agreement . Notwithstanding Article I, above, City shall be under no obligation to make any fund disbursements if the reports required under this Article have not been delivered to the LPDC. ARTICLE VIII This Agreement does not create any joint venture, partnership, or agency relationship between the LPDC and Recipient. Recipient shall have exclusive control of, and the exclusive right to control the details of the work to be performed by Recipient hereunder and all personnel performing same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, volunteers, licensees, and invitees. In no event shall any person participating in or performing any of Recipient’s duties or responsibilities hereunder be considered an officer, agent, servant, or employee of the LPDC. ARTICLE IX Recipient agrees to assume and does hereby assume all responsibility and liability for damages sustained by persons or property, whether real or asserted, by or from the carrying on of work by Recipient or in the performance of services performed and to be performed by Recipient hereunder. Recipient covenants and agrees to, and does hereby indemnify, defend, and hold harmless LPDC and all their respective officers, agents, and employees from all suits, actions, claims, and expenses of any character, including attorney’s fees, brought for or incurred on account of any injuries or damages, whether real or asserted, sustained by any person or property by or in consequence of any intentional or negligent act, omission, or conduct of Recipient, its agents, servants or employees. ARTICLE X 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 6 Recipient shall adhere to all local, state, and federal laws and regulations that may affect its actions made pursuant to this Agreement, and shall maintain in effect during the term of this Agreement any and all federal, state, and local licenses and permits which may be required of Recipients generally. ARTICLE XII Recipient may not assign this Agreement, or any of the benefits provided herein including but not limited to incentive payments identified in Article I, without the written consent of LPDC. ARTICLE XIII The waiver by LPDC of any breach of any term, condition, or covenant herein contained shall not be deemed a waiver of any subsequent breach of the same, or any other term, condition, or covenant. ARTICLE XIV The obligations of the Parties to this Agreement are performable in Harris County, Texas and if legal action is necessary to enforce same, venue shall lie in Harris County, Texas. ARTICLE XV This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. ARTICLE XVI This Agreement may be executed in triplicate, each of which shall be deemed an original and constitute one and the same instrument. ARTICLE XVII Neither LPDC nor Participant shall be required to perform any term, condition, or covenant in this Agreement so long as such performance is delayed or prevented by force majeure, which shall mean Acts of God, civil riots, floods, and any other cause not reasonably within the control of LPDC or Recipient except as herein provided, and which by the exercise of due diligence LPDC or Recipient is unable, wholly or in part, to prevent or overcome. ARTICLE XVIII 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 7 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 LPDC and Recipient and EFFECTIVE on the date indicated below. LA PORTE DEVELOPMENT CORPORTION __________________________ Richard Warren, President ATTEST ___________________________ Secretary of the Corporation ___________________________ Marion Campise _________________________________ Vicki Campise ________________________________ DATE REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: October 25, 2021 Requested By: Jason Weeks, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: Site Plan and Floor Plan Options, 1-story Renderings & 2-story Renderings; PGAL Phase I & II Rec Center Project; Avalanche Economic Assessment (2009); and Long-term Planning Matrix SUMMARY & RECOMMENDATION Based on the approved FY 2021-22 budget for the La Porte Development Corporation, the Corporation will end next fiscal year with $6.7 million fund balance. In analyzing the 10 year Debt Capacity Model, over the next four (4) years the Corporation will incu r approximately $780,000 annually in debt service payments, which will be reduced to $130,000 for another four (4) years. By the end of year ten, the Corporation will have accumulated $29.3 million in fund balance. This analysis is based on no capital expenditures, increased debt service or economic incentives, which staff understands isn’t practical. However, this does provide flexibility to the Board to begin looking at future long-term (5-10 year) plans for larger capital expenditures for quality of life or economic infrastructure, and/or economic development incentive options to lure retail development to the area. Staff has provided some options for discussion for long -term planning for the La Porte Development Corporation. Recreation & Fitness Center: Renovation of the Recreation and Fitness Center was first presented in FY2017. The approved budget for this project totals $2,873,929 and was funded through by the La Porte Development Corporation. This project allowed the Recreation & Fitness Center some much needed repairs and renovations. The Recreation and Fitness Center was opened in 1992 with the only major renovations being done in 2015 with the addition of the wood floors in the aerobics room as well as the gym and new carpet installed in the weight room and the main corridors. Due to the extent of renovations, repairs, and budget, we have phased out the repairs into two sections. Phase one would allow for some of the more pertinent items to be addressed with the second phase bringing in items to better update and allow more usability of the facility. Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: Yes No Since last May, staff has been working with PGAL to get the cost amount closer to the budgeted $2.8 million. The attached document is the latest quote they provided to staff, which would allow the City to split the project up over 2 phases. Based on these new estimates including all contingencies, the cost of Phase I is about $3 million. At the October 11, 2021 City Council meeting, the Council approved staff moving forward with Phase I of the project. Below is the Scope of Work for Phase I. Phase 1: The Recreation & Fitness Center Phase I projected budget covers upgrades to the weight room, corridors, cardio room, lobby, locker rooms and administrative offices. The projected cost of Phase I is $2,959,990. The weight room renovations consist of new flooring throughout, new paint and exposing the ceiling to make the entire area feel larger. New paint and flooring will allow us to lighten up the area and make it feel larger without the use of adding windows. Included with the weight room, the cardio area would be getting the same upgrades. The locker rooms would be getting new paint, fix tures, counters, stalls, and flooring. Also, the project includes repainting the lockers and upgrading them if the budget allows. Currently all of the amenities in the locker rooms are showing their age and are in need of replacement. The locker rooms are also very dark and with the new flooring and paint this will allow us to brighten up the space. Also, the office renovation will occur in Phase I. The back office area will have two walls removed to open up the entry area and allow the recreation specialists to work together in a cubicle style setting. Included in the amount for the administrative offices will be new paint throughout the area, an updated kitchen area, as well as furniture and fixtures. The lobby and corridors will be completely updated with a new center kiosk. This will completely change and update the entry to the facility and will make for a much better first impression. The total includes all new flooring as well as painting throughout the lobby and the main hallways. The largest item of the Phase I renovation plan will be the new HVAC system for the entire building. The current system has been band-aided many times and is in desperate need of replacement. This will help the building maintain temperature better as well as prevent the constant leaks we get from the current system. Phase 2: The Recreation & Fitness Center Phase II projected budget covers upgrades to the gym natatorium, cardio area, sauna, senior area and craft room, restrooms, as well as adding in a childcare center and lounge. The projected cost of Phase II is $3,484,755; however, at this time, there are no funding mechanism identified for Phase II. Staff would ask the LPDC Board to consider funding Phase II of this project. The renovations to the gym consist of adding windows from the gym looking into the weight rooms. This will allow for the more light to project into the gym and make both the gym and weight room feel larger. Also, the weight room and cardio room will see a change. The existing cardio room becomes additional space for the weight room moving the cardio room out towards the main corridor. The rooms that currently are the senior craft room and room two at the RFC will be combined and turned into a large cardio room. The entry and exit points for the new cardio room will be placed in the main hallway with the hallway wall being converted to windows. The natatorium exterior wall as well as the louvers will be completely replaced . And there natatorium will be getting all new pool equipment. The deck will be refinished and the room will be painted. The sauna, which is located within the natatorium, will be completely overhauled. Another major change that Phase II indicates is a change to the Senior Center area. The current offices will be removed and we will add a child care center. This will allow for members to be able to drop their children off while they work out. The current senior front desk area will be moved to the current ramp area with the Special Services Superintendent office being moved to the main level of the Senior Center near the exterior doors. With this change we will also be able to incorporate a lounge area for members and guests near the restrooms. The Recreation and Fitness Center is a member driven facility for our residents. These upgrades are not only needed but will bring in more members. Our facility has not seen any major upgrades since 2015 and the listed renovations would better improve out member’s experience. The year-to-date financial status of the Recreation & Fitness Center CIP project is below: Downtown Revitalization & Infrastructure: In August 2008, the LPDC met to consider the hiring of a firm to complete a city-wide economic development strategic plan. The Board authorized staff to move forward with hiring Avalanche Consulting to prepare an economic development plan in an amount not to exceed $125,000. The study included an economic assessment, community survey, review of development policies and master plan, SWOT analysis, and the development of an economic development strategy. In February 2009, staff provided the LPDC Board with an update of the econ omic assessment, which included the economic development community survey. The summary of the findings identified a number of key factors that would help shape the area’s economic landscape and future economic development strategies. The consultant identified that “quality of place” should be a cornerstone of La Porte’s long-term economic development efforts. La Porte’s “most underutilized resources are its downtown, historic beach, and waterfront.” “Enhancing Sylvan Beach, redeveloping downtown, and improving Main Street serves not only to encourage growth, but these initiatives directly improve the quality of life for city residents.” According to all city records the remaining portions of the study were not completed. Based on recent developments within the downtown area with redevelopment of 100 W. Main, the addition of the Five Points Plaza Park and new pavilion/restrooms, and other commercial businesses, staff believes now is a good time for LPDC and the City to begin pursuing redevelopment and other economic development activities to continue redevelopment in our downtown area. For FY 2021-22, the Board approved a project to include $150,000 for downtown lighting and enhancements. The City will begin a Comprehensive Plan study update next fiscal year and staff would recommend LPDC to partner with the City in adding a downtown infrastructure and master plan to the City’s Comprehensive Plan update study. Options: Since the debt service of the LPDC will be reduced over the next several years, staff recommends LPDC consider funding options to pay Phase II cost on the Recreation & Fitness Center renovation project as well as providing funding for a downtown streetscape/master plan and possibly funding for implementation of the downtown plan. ACTION REQUIRED BY THE BOARD Presentation, discussion and possible action to provide staff direction on the long-term strategic planning for use of La Porte Development Corporation funds. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date City of La Porte Recreation Center Renovation Conceptual Project Budget - PHASE I 15-Sep-21 Notes: Assumes no off site improvements are required Projected Budget Square Feet Cost/SF Subtotal Sitework 0 10.00$ -$ Detention Pond 0 10.00$ -$ Demolition 5,000 10.00$ 50,000.00$ Gym Renovation 0 25.00$ -$ Pool Renovation 0 150.00$ -$ Pool Equipment 0 Allow 160,000.00$ Sauna Renovation 0 150.00$ -$ Pool Translucent Wall & Louvers 0 65.00$ -$ Open Weight Room 3,720 16.00$ 59,520.00$ Locker Rooms 1,750 100.00$ 175,000.00$ Aerobics / Cardio Renovation 2,200 13.00$ 28,600.00$ Administration / Office Renovation 2,410 100.00$ 241,000.00$ Day Care, Foyer, Lounge, Restrooms 0 120.00$ -$ Senior Area & Craft Room 0 120.00$ -$ Lobby & Corridors 2,226 100.00$ 222,600.00$ MEP Equipment 34,698 30.00$ 1,040,940.00$ 12,306 Design Contingency (5%)46,836.00$ Subtotal 2,024,496.00$ Sanitary Connection Fee -$ Water Connection Fee -$ All Permit Fees -$ Construction Subtotal 2,024,496.00$ GC General Conditions (3.5%)70,857.36$ GC Fees (5.5%)115,244.43$ Construction Total 2,210,597.79$ 179.64$ Total Construction Cost per Square Foot Soft Costs (10%)221,059.78$ Contingency (10%)221,059.78$ Furniture, Fixtures and Equipment Costs (10%) 221,059.78$ Land Costs -$ 2021 Project Budget 2,873,777.13$ 2022 Escalation (3%)86,213.31$ Total 2022 Project Costs 2,959,990.45$ 240.53$ The base costs are listed in 2021 Dollars that are escalated to mid point of construction assumed to be first quarter 2022 City of La Porte Recreation Center Renovation Conceptual Project Budget - PHASE II 23-Aug-21 Notes: Assumes no off site improvements are required Projected Budget Square Feet Cost/SF Subtotal Sitework 0 10.00$ -$ Detention Pond 0 10.00$ -$ Demolition 15,000 10.00$ 150,000.00$ Gym Renovation 6,719 25.00$ 167,975.00$ Pool Renovation 3,270 150.00$ 490,500.00$ Pool Equipment 1 Allow 160,000.00$ Sauna Renovation 200 150.00$ 30,000.00$ Pool Translucent Wall & Louvers 700 65.00$ 45,500.00$ Weight Rooms 0 16.00$ -$ Locker Rooms 1,750 50.00$ 87,500.00$ Aerobics / Cardio Renovation 0 13.00$ -$ Administration / Office Renovation 0 100.00$ -$ Day Care, Foyer, Lounge, Restrooms 2,416 120.00$ 289,920.00$ Senior Area & Craft Room 7,071 120.00$ 848,520.00$ Lobby & Corridors 0 100.00$ -$ MEP Equipment 0 30.00$ -$ 22,127 Design Contingency (5%)113,495.75$ Subtotal 2,383,410.75$ Sanitary Connection Fee -$ Water Connection Fee -$ All Permit Fees -$ Construction Subtotal 2,383,410.75$ GC General Conditions (3.5%)83,419.38$ GC Fees (5.5%)135,675.66$ Construction Total 2,602,505.78$ 117.62$ Total Construction Cost per Square Foot Soft Costs (10%)260,250.58$ Contingency (10%)260,250.58$ Furniture, Fixtures and Equipment Costs (10%)260,250.58$ Land Costs -$ 2021 Project Budget 3,383,257.52$ 2022 Escalation (3%)101,497.73$ Total 2022 Project Costs 3,484,755.24$ 157.49$ The base costs are listed in 2021 Dollars that are escalated to mid point of construction assumed to be first quarter 2022 UP UP UPUP UP DN DN DN P G A L188'-6 1/4"299.99 SF EQPT. STOR. 165.66 SF BREAK ROOM 117.87 SF MECH. 3 94.66 SF FILES/COPIER 195.17 SF CONF. 140 SF PARKS SUPERINTENDENT 107.13 SF MARKETING + SPEC. EVENTS COORD. 107.25 SF RECREATION COORDINATOR 107.25 SF RECREATION SUPERINTENDENT 491.76 SF OPEN STAFF WORKROOM 63.92 SF SEC'Y 275.93 SF CORRIDOR 56.06 SF TOILET 161.29 SF DIRECTOR 114.25 SF OFFICE COORDINATOR 993.51 SF LOBBY 165.3 SF STORAGE 100 SF DAY CARE RR 34.18 SF JANITOR 157.74 SF MEN 46.93 SF VEST.230.46 SFFRONT DESK &CUSTOMER SERVICE287.11 SF FOYER 501 SF LOUNGE 133.99 SF WOMEN 46.93 SF VEST. 197 SF TABLE STOR. 141.88 SF STORAGE 5 306.14 SFSENIOR FRONT DESK39.42 SF STOR. 1 648 SF CRAFT ROOM 122.82 SF MECH. 2 112.83 SF STOR. 2 1,424.04 SF CARDIO 1,102.43 SF AEROBICS 1,114.9 SF WEIGHTS 15.05 SF FIRE RISER 237.09 SF BOILER & EQUIP. RM. 830.34 SF WEIGHT ROOM 85.13 SF STEAM SAUNA 117.73 SF DRY SAUNA 384.5 SF HEAVY WEIGHT ROOM 98.55 SF ELECT. 120.18 SF LAUNDRY 3,269.78 SF POOL 6,719.16 SF GYMNASIUM 1,690.41 SF MACHINE WEIGHTS 171 142.77 SFCRAFT ROOM STORAGE129.99 SF Pantry 129.89 SF SPEC. SERVICES SUPERINTENDENT 36.41 SF STAFF RR 286.53 SF KITCHEN 91.8 SF SHOWER 620.23 SF MENS LOCKER RM. 36.96 SF VEST. 37.86 SF VEST. 576.17 SF WOMENS LOCKER RM. 178.83 SF MECH. 1 53.98 SF VEST. 59.89 SF VEST. 816.01 SF FREE WEIGHTS 316.05 SF CORRIDOR 2 972.33 SF CORRIDOR 1 88.71 SF SHOWER 2,918.72 SF MEETING RM. 651.47 SF DAY CARE 219.92 SF PLATFORM 131.95 SF Ramp 1 VENDING30'-0"30'-0"30'-3 3/8"15'-8" 14'-4" 5'-8"16'-0"12'-10 7/8"24'-0"23'-4" PGALPGAL, LLC RENOVATION FLOOR PLAN CITY OF LA PORTE RECREATION CENTER RENOVATION 01/25/2021 3/32" = 1'-0"1FLOOR PLAN - LEVEL 1 RENOVATION PLAN EDC Debt Capacity with Projected Payment Actual Estimated Proposed Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Revenues Sales tax 3,296,751 3,000,000 3,000,000 3,075,000 3,151,875 3,230,672 3,311,439 3,394,225 3,479,080 3,566,057 3,655,209 3,746,589 Interest 37,574 4,500 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 Total Revenues 3,334,325 3,004,500 3,009,000 3,084,180 3,161,239 3,240,223 3,321,181 3,404,161 3,489,216 3,576,395 3,665,754 3,757,345 Expenditures Operations 258,084 276,244 517,988 530,938 544,211 557,816 571,762 586,056 600,707 615,725 631,118 646,896 Incentives 0 0 0 0 0 0 0 0 0 0 0 0 Total Expenditures 258,084 276,244 517,988 530,938 544,211 557,816 571,762 586,056 600,707 615,725 631,118 646,896 Revenues over expenditures 3,076,241 2,728,256 2,491,012 2,553,242 2,617,027 2,682,406 2,749,419 2,818,105 2,888,508 2,960,670 3,034,636 3,110,449 Other Financing Uses Debt service (1,004,822)0 (778,752)(785,255)(788,000)(776,739)(130,111)(131,481)(130,255)(131,241)0 0 Capital outlay (1,292,950)(967,000)(1,791,031)0 0 0 0 0 0 0 0 0 Total other financing uses (2,297,772)(967,000)(2,569,783)(785,255)(788,000)(776,739)(130,111)(131,481)(130,255)(131,241)0 0 Net change in fund balance 778,469 1,761,256 (78,771)1,767,987 1,829,027 1,905,667 2,619,308 2,686,624 2,758,254 2,829,430 3,034,636 3,110,449 Fund balance beginning 4,269,219 5,047,688 6,808,944 6,730,173 8,498,160 10,327,188 12,232,855 14,852,163 17,538,787 20,297,041 23,126,471 26,161,106 Fund balance ending 5,047,688 6,808,944 6,730,173 8,498,160 10,327,188 12,232,855 14,852,163 17,538,787 20,297,041 23,126,471 26,161,106 29,271,555 Assumptions: Sales Tax Revenue Growth 2.50% Interest Income Growth 2.00% Expenditure growth 2.50% Debt service includes payments for library, Bay Area trunk sewer, ballfields & Canada Road. Capital outlay 2022 Downtown Lighting & Enhancements 150,000 Enhancement Grant Program 100,000 Fairmont Park West Splash Pad 200,000 Dog Park at Fairmont Park 212,275 Fairmont Park Improvements 52,600 Broadway Street Lighting Phase II 390,156 Pecan Park Improvements 336,000 Signage Project Phase I 350,000 Total CIP for 2022 1,791,031