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HomeMy WebLinkAbout10-25-21RICHARD 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 $14,140.88 to the applicant, Mike Snider for the sign enhancements for his business, Snider Transmission, which is located at 10335 W. Fairmont Parkway in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date SNIDER TRANSMISSION – AFTER PHOTOS SNIDER TRANSMISSION – AFTER PHOTOS ,Ties Invoice .. . a : . tslstidcdsignol'thetimcs.com Date: R/Z/ 'fr/ 832-3856379 i2-385-6379 Invoice#: '7i(24 `ST Signs That Bring Business! 812$ Nan Pkwy S'1O0 brook,TX 77686 BILLING ADDRESS SHIP TO ADDRESS Snider Transmission La poste.TX Saks erson PO No. lShippM2 Method SHIPPING TERMS Pact lent Terms Due Date 11389 Due i<- Item# Descti tion UNIT PRICE TOTAI. 1.00 6 x 12' 10MIM LED sign package Double sided,wireless communication permits.install&setup 1.00 Update static sign lighting to led lighting fix faded red stripes remove sign to lower position under LED display 1.00 Remove old marquee and paint the poles Subtota S 33-"_6.33 U Sales T.A. '_.741.17 Pa 1 Vt I ii Tota S 35,967.50 I Zi 'ZI Qeposi'� pond �c �ecv. 22 33S �d Zh t— X32_ 5 Ylem and �roeegst�y ��y —�r7 ac's. 27�-a�?!e to Sign ofthe Tire Thank you for your business! 31 3` � - SQ * SIGN OF THE TIMES $ 22 , 335 . 30 Sale Transaction date May 05 , 2021 Posted date May 06 , 2021 Card ( . . . 7440 ) Houston , TX 77058 Description SQ * SIGN OF THE TIMES Also known as SIGN TIMES Merchant type Professional services Method Online , mail or phone Category Professional services Memo ( optional ) Add a note You have 200 of 200 characters remaining . Digital Receipts We didn ' t find any receipts for this transaction . r Disclaimer : Transaction details may be preliminary or incomplete and may not match the transaction as it appears on your periodic statement, which is the official record of your account activity. S • t - SQ * SIGN OF THE TIMES $ 13 , 632 . 00 Sale Transaction date Sep 21 , 2021 Posted date Sep 22 , 2021 Card ( . . . 7440 ) Houston , TX 77058 Description SQ * SIGN OF THE TIMES Also known as SIGN TIMES Merchant type Professional services Method Online , mail or phone Category Professional services Memo ( optional ) Add a note You have 200 of 200 characters remaining . Digital Receipts We didn ' t find any receipts for this transaction . Disclaimer : Transaction details may be preliminary or incomplete and may not match the transaction as it appears on your periodic statement, which is the official record of your account activity. at I I D • - 7 y Il' - . {Y ate : - ITT I � " r �`' 4 1tu ^'} ,. t rry jr .ri + '. sop ay.3- s _ s y a ft • + 3 to BUSINESS, BY THE BAY, La Porte Enhancement Grant Application Please print clearly. Please submit a completed application to: Office of Economic Development City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 APPLICANT INFORMATION : APPLICATION DATE: _ 214L. / Applicant Namens/S1, fl . G• ( Business Name, 3j .- /OJ� Y [U. Fr 1,kwy, e!a -0&1e . Tip 7 ?s?i Physical Business Address pBusiness Owner (if differentfrom applicant) p 7 y e ^ 6i'!tn The ITS/on Lv Fat'/e orse LSE, cot+ Contact Phone Email Address TYPE OF WORK (check all that app!v)� O Façade d( Awnings/Signage ❑ Beautification ❑ Parking Lot Improvements DETAILS OF PLANNED IMPROVEMENTS (attach additional pages if necessary): ( Q/atc OU Coolwn dt,. l �'l2lflzc � �i RAJ ,�_ alaled, / l 2 j i I / .�2G1 i a/oi LA PORTE ENHANCEMENT GRANT APPLICATION PAGE 1, Revised 9/1/20 BUSINESS. BV THE BAY, Please list the name of each Contractor and/or Project Architect and the Total Amount of each bid. Please, also, attach the original proposals and work estimates: CONTRACTOR/PROJECT ARCHITECT TOTAL 4. $ s. BUDGET DETAIL PROJECT EXPENDITURES FUNDS FUNDS APPLIED TOTAL Façade Rehab $ $ Awnings/Signage $ $ $ af Beautification $ $ $ Parking Lot Improvements $ $ $ Other (list): $ $ $ TOTAL $ $ $ Total estimated cost of proposed project: Amount requested (up to 50% of total cost, $2,500 to $50,000): f�sr Please attach colorsamples, model numbers (for windows, doors, etc.), photos, scaled dmwhigs and other illustrations of work to be completed. Please include as much detail as possible. Your signature on this application certifies that you understand and agree with the following statements: I have met with the LPDC and I fully understand the Enhancement Grant procedures and details established. I intend to use these grant funds for the eligible renovation projects, as spelled out in the application. I have not received, nor will I receive insurance monies for this revitalization project, OR I have disclosed all pertinent insurance information. I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant,funds. APPLICANT SIG NATURE DATE LA PORTE ENHANCEMENT GRANT APPLICATION PAGE 2, Revised 12/12/16 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 P.O. BOX 996 / LA PORTE, TEXAS 77572-0996 / PHONE (281) 471 -1123 / FAX (281) 471 -1710 La Porte = Bayshore Chamber of Commerce To Whom it may concern, The La Porte Bayshore Chamber of Commerce (occupying 100 W Main St) employs 2 Full time positions (President and Office Manager) as of August 2021. We also had a part time admin working 30 hrs/week from January to Jute 15th of 2021 and we are in the process of identifying a replacement. We are also working to hire a full time Marketing/Events Coordinator. As of today (October 1, 2021) we just have the 2 Full Time employees. Best Regards, Jeff Martin President La Porte Bayshore Chamber of Commerce ies 10/ 1 /2021 To whom it may concern , I Griselda Hernandez owner of Goodies located at 102 West Main Street, La Porte , TX 77571 as of August 2021 have one ( 1 ) full -time employee and five (5 ) part-time employees . My five (5 ) part-time employees equate to two (2 ) full-time equivalent ( FTE ) positions . Therefore , my business had a total of three (3 ) FTE , s as of August 2021 . B try Gri elda Herten n ez , Owner (Goodies ) (281')9 -'19107 State of TK County of N.ar � s The foregoing instrument was acknowledged before me this ► S } day of Dc4o , 20 - ' by SA Notary Public My Commission Expires -�� GLADIS SANCHEZ P•' > PJotary Public, State of Texas � .' Comm. Expires 02-24-2024 Notary ID 130553701 F L ti C 9 m City of La Porte ECONOMIC DEVELOPMENT INCENTIVES rexne APPLICATION This application must be filed at least 60 days prior to the date the City Council considers the request. Requests for incen ivi es must be approved by the City Council prior to the beginning of construction or installation of equipment. This application will become part of the agreement between the applicant and the City of La Porte . Any knowingly false representations will be grounds forvoiding the agreement. This original application must be submitted to the Economic Development Coordinator, City of La Porte 604 W. Fairmont Parkway, La Porte , Texas 77571 . I . APPLICANT INFORMATION 1 . Date of Application : (Q 2 ? 20 2 . Company Name : �R-( 0V 3. CurrentNumberof Employees : 4 . Address: M (Q ;/ c% • 5 . Annual Sales : 6 . Type of Ownership : Corporation Partnership Proprietorship 7. Names(s) of principal owner(s), partner(s) or director of the company: 27 !vl I 1< 8. Corporate Headquarters' address: f C7 0 2 120 Co b �1s '7 ( . 9 . Corporate Telephone : /J _ — `] rU d I 10 . Other locations and/or places of business owned and operated by the applicant. For each location , please provide the city, state , street address and name(s) underwhich business isc nducted : 3n S IIjL : es -c S - 11 . Date Organization Formed : 11O 12 . Please attach most recent annual reportor financial statement. �, y II . PROJECT INFORMATION 1 . Type of Facility: Manufacturing Distribution Center Corporate Office or Service Center Research and Development Facility Regional Entertainment Facility _j Other (please specify • no f s C U7 (C- ' ` t It�2w7//�L 2 . Project Description : New Construction Expansion Modernization 3 . Location address of proposed project: /Ob ( N/. f c n � U 54 4 , County Hit I� �Cy 5. School District ( �� Sc & ca- 6 . Product(s) or Service : IC (� SS �L 54t S . 7 , Attach map and legal description of project location showing proposed improvements . `— 7 /8 (9, 20, 21 ` 5 . I `{' F� (77?, 8 , Please describe the proposed use and the specific nature and extent of t3 the project: oo ci SACeS to �L • S 2 9 . Please list all improvements and equipmentforthe project: Improvement Items Cost n 7iv'z�2 fOQ2r opaoGZ - 10 . Please state all sources for financing the improvements: dl r \se4oG22 - act w - Cc Oct, JO 0c2C) 4 11 . Please state the time frame or projected date of start and completion : ©� � 2 : I q 42 MI . 12. Improvements will be completed by January 1 , 2QL (specify year). 13. Please state the productive life of the proposed improvements : 14 . Please give a general description of business personal property (property other than buildings , fixed machinery, inventory and supplies) that will be purchased as a resultof the project: c to POoi 3 III . ECONOMIC INFORMATION 1 . Number of persons currently employed by applicant: Full Time Part Time Total Annual Payroll : $ 2 . Number of new jobs (full time equivalent) to be created/retained by the proposed improvements : Number Estimate Annual Payroll Year At Opening CJ $ 12y C� 202- I( At 3 years ( 2_ $ ?JOc) ocx) • ? OZ`' At5years $ SOO, 000 2026 . 3 . Number of new jobs to be filled by persons residing in the City of La Porte or Harris County: Full Time ( 5 Part Time 4ZL 4 . Numberof Peak Construction Jobs : 2 2- 5 . In the case of mo ernization , please estimate the economic life of the existing facility: years. Added economic life after modernization : years . 6 . In the case of modernization , please state the assessed value of the facility for the tax year immediately preceding this application : Real Property Business Personal Property $ Sx7)1 O: 7. Amount of taxable sales currentliPeing generated annually in the City of La Porte (if applicable ): $ 8. Amount of pro4pcpd taxable sales that the proposed improvements will generate : $ 9. In the case of application based on job retention , please describe potential job loss that would occurwithout economic development incentives : U 4 Company Representative to be contacted : Name Title Adds Telephone Author] on I' an icial : Authorized g Vture Date Print am X9/7/EY�I0 Title Telephone 5 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 Page is too large to OCR. Chapter 1 : Economic Assessment F ice , ECONOMIC DEVELOPMENT STRATEGIC PLAN CITY OF:LA PORTE, TEXAS p." • E � � -3' 3 --•,, ' F ,mot: ..-r' { .vir� � � .£. r ^.a as � . , Fir, , r.* ..., va1anche C0NSULTIns X11 Gatewa j Planning croup 601 D Vilest 6th Street 4ustin. Texas 78703 S2 ) 172 - 1555 nfot:'avlrocheccnsu!ti ngn et Table of Contents Summary of Economic Trends & Key Findings ................... . . . . ..... . ... . ... . . .. .... . . . . ............. .. ...... . . . ... 1 Cityof La Porte Study Area . ... . . .......... ...... . ....... .... ..... ._... . ...... .............. ... ....... . .. .... ..... ... ..... . ........ 3 Population Growth Trends . . . ... ...... . ........ ........ .... ...............................:............. ..:....... ....... . . ... ..... 5 Economic Base & Job Creation ..... . ... .............. . . ......... . . .... ... . ............:.::........... ......... .. ................ . . . 7 LaborForce Profile . . . . . . . . . . . . . . . .... . . . . .. ...... . .. ..... ..... ................. . .... . . . . . . ...... . . ... .. .. ..... .... . .... .... . .... .... . . . 9 LaborShed Analysis . . . .. .. ... . . . . . . . . ...... .. .. . . . . .. . ..... . . . . ...... . . . . . ....... ....... .. . .. . . . .. ......... .... . .. . . ...... . . . . ....... 11 Industry Cluster Analysis ......... . ... .... . . .. ... . . ... . ....... .. .... . ...... .................................. . ... ...... .... ......... 14 UnemploymentRate ... ... ... .... . . . ... . . ......... . . .... . .. . . ....... . . .... . . . . . .. .............. .. . . .. ........ ............ ........ .. . 17 Per Capita Income & Wage Levels . .. ....... . ...... . .. ....:. . . . .. .. .. . . .......... ....... .. . ........ . .................. .... .. .. 18 TourismSector. . . ... . .. .. .. .... ......... . . ... ...... ................ :.. . .... . . .... .. . . . . . : . .. . . ... .. . . . ............... .. . . . . . . ... . . .. ..... 20 RetailTrade Sector . . . . ... ...................... .. ................. .. .. .. . ............... .. ........ ........::.:.. .,.. .... . .A .I . .. .... . . 21 RealEstate Sector. ........ .. ......... ..... . . .. ...... . . . . ... . . . . . . . . . . . . . .. ...... ........ .. ....... . ........ ... .. .... . . .... .... . . ..... . .. 22 APPENDIX: Survey Results .... ......... .... .. ....... . . . . . . . . . . .. ... . ... ........ . . .... . ........ . . . . . .... . ... . . . ... . . . . . .... . . . . . 24 City of La Porte, Texas - Economic & Demographic Assessment I January 2009 List of Figures Figure 1: City of La Porte Study Area — Zip Codes ....... .... .. . ...... ....... ............. ......4..0.06. ........ ........ 3 Figure 2: City of La Porte Peer Communities..... .. . ..,............. ................ ..•..... . ................... . . .,.•.... 1- Figure 3 : La Porte Population Trends & Forecast .. .... . . . ....... . . ....... . . .......... ....... ... . .. ............ . . ....... 5 Figure 4: Peer Community Population Growth Rate (2000 to 2007) . .. . .. . .... .. .. .. . .. .. . . . . ... ... . . . . ..... 5 Figure 5 : Median Ages (2005 to 2007 Average) . ...... :. . ... ... ... ....... .......................:...... .. .... ........... 6 Figure 6: Where Employed La Porte Residents Work ..... . . . . ......... . . ....... . . ....... .......... . ... ........ .. . 12 Figure 7: Where Workers Live who are Employed by La Porte Businesses.. ........ .... . . .. . .. . . ...... 13 Figure 8: La Porte Unemployment Rate ..... ................ ... .......... .. .. . .... . .. ........ . . .. . ... .... . . . . . ..... . . . . . . . 17 Figure 9: Regional Unemployment (November 2008) . . ....... .... .. . . . .. . . . . . . . .. .. . .. . . . . .. . . . . . . . .. . .... . . . . ... 18 Figure 10: La Porte Average Wage per Job. . .. .. .. .. .. . . ...... . . . . . . . . . . . .... .. . . . ........ . .. . ... .. .... .. .. . . .. .. ..... ... 19 Figure 11: Visitor Destination Spending (2008)... . ................ . . . . ...... . .. ... ... . . . . . . ...... . . ..... . . . . .. .. . . . .. . 20 Figure 12: Annual La Porte Total Sales Tax Rebates ...... .... ..... . ....... . . ........ ..... ..... ........ ......... .. ... 21 Figure 13: La Porte Single-Family Building Permit Activity.. . .. ... ..... ... ..... ... ....:...........:...:... .. . ... . 22 Figure 14: La Porte Average Value per Single-Family Dwelling Unit ($ ) ..... . .. .. . ... ....... ... ... . . . . .... 23 Figure 15: Average Value per Single-Family Dwelling (2007) ....................... ...... .. . ... . . . . . . ... .... .. . 23 Figure 16: How satisfied are you with the following aspects of La Porte? ......................... ..... 26 26 Figure 17: What are the city's top three economic development priorities? ......... 26 List of Tables Table 1: Regional Population Trends .. . . . ...... . .. . . . . ...... ... ... .... ........ ..... ..,. .............. ...... ..._.... . ..._.. ... 6 Table 2: City of La Porte Study Area Employment Trends. . . ..... . .. ... . .. . . ........ ...... . . . . . . .. . . ... ......... . . . 7 Table 3 : Estimated Regional Employment Trends (2006) . . . . .... . . . . .. . .. . . ........ . ..... . . . . . . ..... .. . . .. . .... .. . a Table 4: La Porte Study Area Resident Industry Sector Employment Profile .. . . .... . . ........ .... .. ... . . 9 Table 5 : La Porte Study Area Resident Labor Force Profile versus Industry Base (2006) . . . .. ... 10 Table 6: Where Employed La Porte Residents Work........... . ...... . . 11 Table Table 7 : Where La Porte-based Business Employees Live... .. ...................._........... . . ... .... . . ...... 12 Table 8: Cluster Industry Microfoundations .. . . . . ... .. . . . . . . ... .. . . .. . .. . . . . . ... . . ... . . ....... . . ........... . .. ... . .. .... 14 Table 9: La Porte Study Area Industry Concentrations .... .... .... . . .... . .... . . . . . . . . . . . . .......... . ... . . . .. . . .... 16 Table 10: Regional Per Capita Income and Average Wage Trends .. .. .. . . . . . . . . . . . .... ...... ..... ... . . . . ... 19 Table 11: Annual Economic Impact of La Porte Visitor Spending ........ .. .... .. . . .. ..... . . . ... . ............ 20 Table 12: Per Capita Retail Sales Subject to Sales Tax.... ...... .. ... .... .... :.... ... .. . . . ... . . . . . . . . . . I %... 21 _.- ---- - ----._.._ • 444 _ . __ - __--- - - - - - City of La Porte, Texas Economic & Demographic Assessment I January 2009 • Summary of Economic Trends & Key Findings La Porte has grown steadily over the past two decades by weathering statewide economic downturns in natural resource industries, the high-tech sector collapse, and real estate bubbles. The citys strong manufacturing base, proximity to the Port of Houston, and short- commute to Houston's central business district have helped buffer these downturns. The high percent of residents who work throughout greater Houston and bring wages back to La Porte also mitigate the effects of local employment forces. The current economic recession, however, will have negative consequences for La Porte. Reduced international trade and plummeting oil prices will influence local business decisions. -T believes a number of key factors will help shape the area's economic landscape and'futurre economic development strategies: - - • • Over the next five years, La Porte-based employment will struggle to grow as local firms adjust to the national recession, La Porte's industrial base is. heavily dependent on the sectors hit hard during this economic downturn : oil refineries petrochemical manufacturers, and the construction business. • Despite recent fluctuations, the oil and gas sector will remain the dominant force in the La Porte economy. This sector is responsible for 30 to.40 percent of total La Porte businesses output.. For a number of reasons including existing capital investment, difficulty in relocating operations, and long-term consumer demand, the majority of these firms will rebound once the national economy starts to grow. • LaPorte's proximity to. the Fort of Houston and transportation infrastructure will cause future growth ip the warehousing sector. The successful build out of the Port Crossing Commerce Center over the next 10 years will be a major driver of the local economy. This property alone could support 4 million square feet of building space when, fully developed, Increased traffic congestion might create issues, but this sector's growth will help diversify the local economy. • Limited retail trade opportunities result in sales tax leakages to surrounding communities. La Porte is severely underserved when it comes to retail opportunities. City leaders and community stakeholders are working hard to address this issue. La Porte's limited retail sector also means its general fund will not decline as much as communities dependent on household spending for tax revenue. This provides the city time to refine its recruitment strategy while retailers modify business plans to '.. adjust to the slowing economy. City of La Porte, Texas - Economic & Demographic Assessment I January 2009 0 • Economic diversification requires attracting businesses that can take advantage of La Porte's diverse labor force. La Porte residents comprise only 11.7 percent of total local employment, and only 13.4 percent of La Porte residents work in the city. Due to limited land for future residential developments, La Porte will not grow substantially. Therefore, attracting workers to La Porte or identifying sectors that can take advantage of the thousands of workers who leave the city each day to work in surrounding communities should influence economic development recruitment strategies. • Quality of place should be the cornerstone of La Pont long-term economic development efforts. La Porte has a robust economywith local businesses employing more workers than local residents in the laborforce. Limited land available for development hinders major projects looking for a greenfieldsite. La Porte's most underutilized resources are its downtown, historic beach, and waterfront. The lack of a master plan or overarching strategy to unite these elements is an issue. Enhancing Sylvan Beach, redeveloping downtown, and improving Main Street serves not only to encourage economic growth, but these initiatives directly improve the quality of life for city residents. - City of La Porte, Texas Economic & Demographic Assessment January 2009 City of La Porte Study Area La Porte's two industrial zones (Battleground Industrial District and Bayport Industrial District) are not within its city limits. As a result, datasets specific to the city limits of La Porte undercount local business activity. Because firms located in the industrial districts paid over $10.0 million "in lieu of taxes" in 2008 and employ thousands of workers, any analysis of La Porte should include these areas. To address this issue, TXP defined the La Porte "Study Area" based on two zip codes: 77571 and 77507 (outlined in red in Figure 1). While not a perfect fit for La Porte and the industrial zones, the Study Area boundaries provide an appropriate representation of the city's business profile. Unless denoted as the Study Area, the information presented is limited to La Porte's city limits (ex. population estimates) highlighted in green in Figure 1. Figure 1: City of La Porte Study Area — Zip Codes d ep j4 Q e1 . • II - a Le Porte rr s ay � ` tpktw �.,I .A' a i _ City of La Porte, Texas - Economic & Demographic Assessment I January 2009 TXP selected a number of La Porte regional peer communities based on employment and population size, geographic location, industrial mix, and resident commuting patterns. The long-term damage caused by Hurricane Ike created challenges in the selection. The City of Galveston, for example, would have been an appropriate peer community for assessing La Porte's tourism sector, but the massive storm damage has dramatically altered Galveston's future. Because La Porte is landlocked and surrounded by large industrial complexes, suburban communities to the north and west of Houston were not appropriate. The following peer communities were chosen : • City of Baytown • City of Deer Park • City of League City • City of Texas City Figure 2: City of La Porte Peer Communities Z &- Jc • ii - t o- $ , Beytown s' _ L X9: z g, - € .`, DeerPark "�— — .� . J TL. La Forte 4 _ a`mw'It . Lv , r j % - o $ s d t League Ckyp 3 n s e' ' tit \T exas Crty . . . I.;.. " 'k ay_ T _ __.. — y City of La Porte, Texas - Economic & Demographic Assessment January2009 • . . . . . .• Population Growth Trends La Porte's population has been slowly increasing over the past decade. The current population estimate for La Porte is approximately 34,300 residents. Since 2000, the city has added 2,200 residents, an increase of 6.9 percent. La Porte's modest growth stands in stark contrast to significant population growth in peer communities and the Houston MSA. The Texas Water Development Board forecasts the city's population will surpass 42,000 by 2030. Figure 3: La Porte Population Trends & Forecast 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 - - S,00D 2000 2001 2002 2003 2004 2005 2006 2007 2010 2020 2030 Source: U.S. Census Bureau,.Texas Water Development Board Figure 4: Peer Community Population Growth Rate (2000 to 2007) 60% 50% 40% 30% - 20% - 1O% 0% Baytown DeerPark La Porte League City Texas City Harris County Source: U.S. Census Bureau City of La Porte, Texas - Economic & Demographic Assessment I January 2009 Table 1: Regional Population Trends . - 2000 66,564 28,546 32,041 45,882 41,700 4,740,423 2001 66,969 28,758 32,845 48,102 42,511 4,855,878 2002 67,686 29,049 33,388 51,158 42,655 4,988,369 2003 68,055 29,033 33,673 54,403 42,690 5,098,375 2004 68,046 28,962 33,666 57,694 43,274 5,208,977 2005 69,313 29,424 33,622 60,917 43,902 5,321,501 2006 70,013 30,366 34,544 64,410 44,456 5,507,557 2007 70,135 30,628 34,261 68178 44,415 5,628,101 CAGR 0.75% 1.01% 0.96% 5:$2.Y 0.91% 2.48% Source: U.S. Census Bureau s A review of population components uncovered-arnumber of useful factors related to labor force availability. First, the median age of La Porte (34.7 years of age) is7rifch higher than the Harris County average of 32. 6 years of age. Second, over 63,0'percent of the city's current population is comprised of working-aged residents defined between the ages of'18 and 65. Last, the percentage of school-aged children (between the ages of 6 and 17) is lower in La Porte than peer communities. On average, La Porte is home .to a large percentage of working-age adults or young children . The combination of these-trends, is putting upward pressure on La Porte's median age, but offers relocating .And expanding businesses a proximate labor force. Figure 5: Median Ages (2005 to 2007 Average) 35 .5 35.0 343 - 34.0 - m < 33.5 33.0 32 .5 32.0 31.5 31 .0 Raytown Deer Park La Porte League City Texas City Harris County Source: U.S. Census Bureau American Community Survey City of La Porte, Texas Economic & Demographic Assessment I January 2009 Economic Base & Job Creation La Porte's employment base expanded between 2005 and 2006 (the last year data is available at the sub-county level), adding 3,200 new jobs or a 10.8 percent increase in total employment. In 2006, there were approximately 29,300 La Porte-based business employees. The Manufacturing, Construction, and Transportation & Warehousing sectors play a large role in the La Porte economy. These three sectors account for more than 60.0 percent of La Porte's current total employment, compared to 21.6 percent for the Houston MSA and 51.5 percent Deer Park. Over the past two years, La Porte's employment base has likely contracted because of declining natural resource prices, failing',international trade, and the national recession. Continued growth at the Port Crossing Ccimmerce Center and redevelopment activity associated with Sylvan Beach,Park represent the most likely opportunities for growth over the next few years. Qverthe long-term, filling retail trade gaps and expanding tourism-related activity (ex. Main-Street redevelopment and Bayport Cruise Terminal) should help diversify the local economy. Table 2: City of La Porte Study Area Employment Ttgnds N„ N^ D ' ID) AiT,T 1111 I0 Agriculture, Fishing &Hunting �� 10 16 5 10 Mining, &Oil and Gas Extraction 546' 543 � 496 869 908 Utilities „ 136 " jf5 173 175 203 Construction Th. 3,926 X3,872 _ 4,511 6,210 7,555 Manufacturing ' < - 8,004 s: ' v'6,568 .t:16,990 7,322 7,703 Wholesale Trade - 1,537 . T 1,588 1,427 1,816 2,108 Retail Trade - 1,078 922 919 880 829 Transportation & Warehousing 2,2422,299 2,257 2,277 2,366 Information -- - - 33, ' 40 31 32 26 Finance & Insurance - • 213 197 209 199 263 Real Egtlte, Rental & Leasing„ 284 258 240 240 307 ',. Professional & Scientific Services 966 1,182 1,172 1,224 1,445 Management of Companies 153 279 169 13 19 Administration & Support - 706 672 751 1,018 1,316 Educational Services - _ - 1,382 1,447 1,498 1,237 1,622 Health Care & Social Assisfence 443 339 401 414 434 Arts, Entertainment, & Recreation 157 164 163 168 152 Accommodation & Food Services 797 784 920 1,006 968 Other Services 533 680 776 749 805 Public Administration 344 348 322 336 335 Total 23,490 22,294 23,441 26,190 29,374 Source: TXP, U.S. Census Bureau - LEHD Program City of La Porte, Texas Economic & Demographic Assessment I January 2009 0 Due to data limitations, specific city-level employment values are not available. Based on industrial districts, zip codes, ETJs, and city limits, TXP created estimates of employment by major sector. The purpose of this dataset is to highlight which sectors are strong in each city, not actual employment figures. Table 3: Estimated Regional Employment Trends (2006) ng 'ii . . Agriculture, Fishing &Hunting 19 18 10 1 2 Mining, &Oil and Gas Extraction 3,354 877 — 908 40 22 Utilities 272 147- - 203 58 188 Construction 2,172 5,20,4 7)555 1,206 817 Manufacturing 6,608 j . 4,184 7,703 178 3,777 WholesaleTrade 911 :: 950 2, 108; _ 434 305 Retail Trade 4,487" 993 829 "" _ ' . 1,244 2,102 Transportation & Warehousing 817 - 404 2,366 251 229 Information 356 41 - 26 225- 136 Finance & Insurance 669 305 . 263 503 428 Real Estate, Rental & Leasing " 894 229 307 196 308 Professional & Scientific Services ' 1,859 927 1,445 977 349 Management of Companies _. - 271 7 19 8 5 Administration & Support ' 1,658 . 770 .. 1,316 602 709 Educational Services _ 4,497: t : 2,244 - 1,622 6,377 1,483 Health Care & Social Assistance 3,629 459 434 1,215 2,595 Arts, Entertainment, & Recteatjon„` - " �`'_„ 321 9 152 372 157 Accommodation & Food Services 2,691= •. - 579 968 1,459 1;484 Other Services 1, 140 ` 489 805 570 344 PublicAdministration - I . 705 176 335 307 503 Total 37,330 19,012 29,374 16,223 15,943 Source: TXP, U.S:Lensus Bureau - LEI-ID Program City of La Porte Texas - Economic & Demographic Assessment I January 2009 O Labor Force Profile Consistent with a slow growing population, La Porte's employed labor force (residents who have a job regardless of location) has held steady over the past 5 to 10 years. In 2006, roughly 19, 000 La Porte residents were employed. The manufacturing and construction sectors capture the largest percentage of working La Porte residents. Even though the city is not strong in retail trade, healthcare, or education occupations, nearly 1 in 4 La Porte residents work in these sectors. The disconnect between La Porte resident occupations and local jobs available indicates a large number of residents commute to surrounding cities for work each day. Table 4: La Porte Study Area Resident Industry Sector ETlptgyfnent Profile rr 'rr AIIIL 11111 .AI1II. Agriculture, Fishing &Hunting 27 32 3'Z. 38 32 Mining, &Oil and Gas Extraction 652:- Y . 573 S36' 546 559 Utilities 208 196 208 55 144 Construction 2,282 ` 2,027 " 1,785 1,945 2,156 Manufacturing 2,776 2;478_ ' n' 2,588 2,391 . " 2,572 Wholesale Trade ' .. 943 920'x: 931 1,072 1,049 Retail Trade E. 1,774 1,674 _�µ 1,703 1,752 1,814 Transportation & Warehousing 974 . - 967 .4::971 955. 986 Information . 226 • 207. ,. 212 198 176 Finance & Insurance - - 4S5 395 "__, 485 486 516 Real Estate, Rental &leasing • 327 335 333 343 392 Professional & ScientificServices 1,187 " - 1,220 1,239 1,243 1,394 Management of companies " , ._ 100 ` ., 135 121 76 86 Administration &`Sijoport - 1,004: 898 984 1,108 1,231 Educational Services 1,812 1,886 1,928 1,716 1,833 Health Care & Social Assistance - - 1,312 1,369 1,388 1,387 1,356 Arts, Entertainment, & Recreation - 201 180 222 211 173 Accommodation & Food Service 1,290 1,236 1,399 1,386 1,443 Other Services 586 573 642 603 598 Public Administration .:- - 438 438 445 414 478 Total - 18,578 17,739 . 18,177 18,035 18,988 Source: TXP, U.S. Census Bureau - LEHD Program City of La Porte, Texas Economic & Demographic Assessment I January 20090 Table 5: La Porte Study Area Resident Labor Force Profile versus Industry Base (2006) •r Agriculture, Fishing &Hunting 0.2% 0.0% Mining, &Oil and Gas Extraction 2.9% 3.1% Utilities 0.8% 0.7% Construction 11.4% 25.7% Manufacturing 13.5% 26.2% Wholesale Trade 5.5% 7.2% Retail Trade 9.6% - 2.8% Transportation & Warehousing 5.2% 8.1% Information 0.9% - 0.1% Finance & Insurance .:"' 2.7% 0.9% Real Estate, Rental & Leasing 2. 1%. 1.0%! ',. Professional & Scientific Services 7.3% 4.9% Management of Companies "0.5% - 0.1% Administration & Support - 7.. 6.5% - 4.5% Educational Services -' - 9.7% 5.5% Health Care & Social Assistance - - _ 7.1% 1.5% Arts, Entertainment, & Recreation - • " ,.0,994 0.5% Accommodation & Food Services Otherservices 3.1% 2.7% Public Administration _ Y 2.5% 1.1% Total - 1.00.0% 100.0% SourceY TXP, US Census Bureau- LEHO Program" - p. City of La Porte, Texas - Economic & Demographic Assessment I January 2009 Labor Shed Analysis Using publicly available data it is possible to perform a labor shed analysis. The purpose of this analysis is to highlight: 1) where La Porte residents work and 2) where La Porte-based business employees live. The results are useful in identifying future economic development targets, determining workforce gaps, and guiding future public sector investment. In 2006, approximately 19, 000 city residents were employed. At the same time, La Porte- based businesses employed 29,000 workers. Hypothetically, if all La Porte-based jobs were first filled by local residents, then approximately 10,000 workerswould need to commute to the city each day. However, data from the Census Bureau.:.- LEHD Program paint a different picture. In 2006, only 13.4 percent of La Porte residentsworked in the city. Over one-third of La Porte working residents commuted to Houston each day. Other large employment centers were Pasadena, Deer Park, and Baytown. The opposite trend exists for La Porte-based businesses. In 2006, La Porte residents comprised 11.7 percent,.of.total local employment Over 40.0 percent of La Porte-based business,2'rpp,oyees lived in Houston, Pasadena, Baytown, Deer Park, and League City. These findings create positive and negative implications for La Porte, Because La Porte LW r. residents work throughout the region in a broad range of industries, this can help offset the negative effects of a slowdown in the city's energy sector. The downside is that La Porte- based businesses pay high wages to non-local residents. However, the fact that workers will commute to La Porte for Work is�a good indicatorthat future tourism and quality of place projects (Sylvan Beach and Downtown) would attract visitors from neighboring communities. Table :,Where EmployedLa Porte Residents Work 1 " HI AIII AIIO. AuI.L. Houston ' '$92% 38.8% 38.1% 38.3% 37.2% La Porte 14.0% 13.5% 13.1% 13.4% 13.4% Pasadena 9.8% 10.2% 9.4% 9.1% 9.4% Deer Park -. - 7.1% 7.1% 6.8% 6.6% 6.7% Baytown 3.1% 2.7% 3.4% 3-1% 3.0% Webster 1.4% 1.6% 1.6% 1.8% 1.5% League City 1.0% 0.9% 1.1% 1.3% 1.3% Austin 0.7% 0.7% 0.8% 0.8% 0.9% Seabrook 0.5% 0.8% 0.8%' 0.9% 0.8% Pearland 0.6% 0.8%. 0.9% 0.7% 0.8% All Other Locations 22 .5% 22.8% 24.1% 24.0% 25.0% Source: TXP, US. Census Bureau - LEHD Program City of La Porte Texas - Economic & Demographic Assessment I January 2009 Figure 6: Where Employed La Porte Residents Work - arre SHOP n^ tl . 3 HOhlarMi W _. fit. F.-a cnm; tktw u. .nc Ry,iuj aYnr § , ale '^yt '� ': Scabroak Lt: N magi aao � c� : s P ro �t - � r � � '.. Source: iXP, U .S. Census Bureau`'=LEND Program t , Table 7: Where La Porit'erbased Business Employees Live 1 lit 1 . . ijtJ. tl . Houston . "�8,1% I .ttf�G6 4 'x`7.5% 17.2% 18.1% WR rte - 14s7%= 14.4% e., 13.6% 12,8% 11.7% Pasadena 10.6% 10.3% 10.2% 10.0%- 10.2% Baytown 6.4% ' ' 5.9% 6.2% 6,0% 6.3% Deer Park' . , 6.4% t 6.0% 5.8% 5.7% 5.6% League City - 2,9% 3.1% 2,8% 2,4% Pearland - 1.4% 1.4% 1.6% 1.7% 1.6% Texas City 0.9% 1.4% 1.2% 1.5% 1,5% Channelview 1,3% 1.4% 1.3% 1.2% 1.3% Friendswood 1.3% 1.3% 1.2% 1.0% 1.2% All Other Locations 36.1% 37.0% 38,1% 40.1% 40.0% Source: TXP, U.S. Census Bureau - LEND Program Qty of La Porte, Texas Economic & Demographic Assessment 1 January 2009 O 1 , . 411 . . . . . . . . . . . . Figure 7: Where Workers Live who are Employed by La Porte Businesses ' _o _ >_ ° pt4 f."Jtyy#' S� n �A MomecIV1E88u�a'"i°°° a mar - . •. J _ % - � C Houston a ann `" u -, Ba own , C Pad L7 Bey C q _ AI 15 south,Ho Pods ,asa ena e a3 Bro°hsitl,� YLhy � . • ° s'2 p i�' - CL° InkaSharefi yr --: . . Webskr I(wJwh Oct ° ° • rJeJxle . J t 4 00 ° a F t at` C , & sa to-o ° ° rx_ec ;- C bny -� , ° s O i� { e yg 4w Hiloof °a a ° .yam r Source: TXP, U.S. Census Bureau - LEHD Program City of La Porte, Texas Economic & Demographic Assessment i January 2009 Industry Cluster Analysis Industry cluster analysis is a common approach used in economic development to evaluate the economic base of a region, usually at the county or multi-county level. Clusters are highly integrated groups of businesses with strong vertical and horizontal linkages. Not only does industry cluster analysis describe the current state, but this technique is often used to identify areas of recruitment opportunity. Industry cluster analysis, however, is a broad concept ratherthan a precise term. There is not a unified definition of industry clusters or their subcomponents. In general, a cluster consists of firms and related economic actors and institutions that draw productive advantage from their mutual proximity and connections. First, linkages are established in which businesses build relationships with existing specialized supplier firms throughout a region. Second, these developing clusters attract additional supplier firms and supporting business from outside of the area. Finally, by creating a critical mass of production, labor, and information, related manufacturers and supplier firms are attracted to these developing cluster regions to take advantage of the existing human and physical infrastructure. • - A comprehensive analysis of industry cluster fechniques released by The Brookings Institute (Making Sense of Clusters. Regional Competitiveness and Economic Development, 2006) highlights seven cluster drivers called "micrgfounciations"_ of clustering: Table 8: Cluster Industry Microfqundations I . LaboI Nfarrcet Pooling - Strbngjnafket/supply for the distinctive skilled labor needed SupplierSpecialization. " ,_ - Large number of industrial customers in the nearby area '_create sufficient demand to enable suppliers to acquire and operate expensive .specialized machinery Knowledge,Spillovers Concentration of many people working on a similar set of economic problems produces a widely shared understanding 'L. of an industry and its workings Entrepreneurship - Entrepreneurship includes both the willingness of individuals to form new businesses and the willingness of owners of existing businesses to undertake new ideas Path Dependence and Lock-In Set of opportunities available to any particular place will be shaped by the economic activities it has already established Culture Culture may be particularly important in helping local economies and clusters adapt to change overtime Local Demand Demanding local consumers can pressure firms to innovate and to maintain and improve product quality, which In turn improves their competitiveness in other markets City of La Porte, Texas - Economic & Demographic Assessment I January 2009 The Brookings study concludes, "It is difficult for public policy to create new clusters deliberately. Instead, policymakers and practitioners should promote and maintain the economic conditions that enable new clusters to emerge. Such an environment, for example, might support knowledge creation, entrepreneurship, new firm formation, and the availability of capital." The report highlights the role the public sector can play in cluster development by microfoundation : • Labor Market Pooling: labor market information, specialized training • Supplier Specialization : brokering, recruiting, entrepreneurship, credit • Knowledge-spillovers: networking, public sector research and development support • Entrepreneurship: assistance for startups, spin-offs •. Lock-In: work to extend, refine, and recombine existing distinctive specializations • Culture: acknowledge and support cluster organization • Local Demand: aggregate and strengthen local demand. Application of Industry Cluster Analysis to La Porte To assess the strength of a cluster in a regional economy, the location factors are calculated by comparing the cluster's share of total local employment to the"cluster's national share. ej This quotient will :yield a value generally between 0.0o and 2.o0, where 1.00 demonstrates an equal share percentage betweenthe local andnational economies. Cluster location factors greater than 2.00 indicate a strong cluster agglomeration, while those less than 0.50 indicate extremelyweak clusters. _ S. The biggest challenge for performing a cluster analysis on La Porte is data availability. Clusters `are typically defined using &digit NAICS (a business classification system) . Given the employment base size of La Porte and linkages to neighboring cities, detailed data is not readily available because government agencies "suppress" data to protect the confidentiality of the businesses. For example, detailed employment and payroll data for the petrochemical sector is not released for LaPorte because it might reveal specific Information about local firms . Therefore, TXP performed a cluster analysis using location quotients at the major NAICS level. • City of La Porte Texas Economic 8 Demographic Assessment I January 2009 0 Table 9: La Porte Study Area Industry Concentrations Agriculture, Fishing &Hunting 0.32 0.60 0.22 0.04 0.08 Mining, &Oil and Gas Extraction 230 1.39 0.93 0.07 0.04 Utilities 0.98 1.04 0.93 0.48 1.58 Construction 0.75 3.55 3.33 0.96 0.66 Manufacturing 1.87 2.33 2.77 0.12 2.51 WholesaleTrade 0.42 0.86 .. 1.23 0.46 0.33 Retail Trade 1.11 0.48 _ _ 0.26 0.71 1.22 Transportation & Warehousing 0.49 0.48,k' -- 1.80 0.35 0.32 Information 0.59 0.13" . . 0.05 0.86 0.53 Finance & Insurance 0.47 "' . 0.42 034-- 0.81 0.70 Real Estate, Rental & Leasing 1.12 _ 0.56 0.49 0.57 0.90 Professional & Scientific Services O.tYA 0.68 0.68 __ ' 0.84 0.30 Management of Companies 1.20 0.06 0.11 0.08 0.05 Administration & Support _ 0.61 - 0.56 0.62 0.51. H 0.61 '.� Educational Services - - 1.13 1:11- 0.52 3.68 0.87 Health Care & Social Assistance - ' 0.97 0.24 0.15 0.74 1.62 Arts, Entertainment, & Recreation . °- , 0.76 0.04 0.46 2.02 0.87 Accommodation & Food3ervices 0.92 0.39 0.42. 1.14 1.18 Other Services . ` ;,: ' ,:: 1.09 - - 0.91 . 0.97 1.25 0.77 Public Administration - 0.81 _ -._ 0.40 0.49 0.81 1.35 Total • 0.32 0.60 0.22 0.04 0.08 Source: TXP, U:S. Census Bureau,-, LEHD Program La Porte has sizeable concentrations of Manufacturing, Construction, and Transportation & .Warehousing clusters relative to the Houston MSA. In 2006, La Porte was home to, over 225 establishments for these three sectors combined. • La Porte has a below average retail trade cluster for a community of its size. A 2006 retail trade study performed by Buxton determined that La Porte does have the potential to attract new retailers and restaurants. • Key industry clusters less developed in La Porte than the Houston MSA as a whole are Health Care & Social Assistance, Educational Services, Accommodation & Food Services, and Arts, Entertainment, & Recreation. The proximity to the Greater Houston area with already strong clusters (ex. Kemah) as well as geographic location on the far eastern edge of the region might limit growth in some of these sectors. City of La Porte, Texas Economic & Demographic Assessment 1 January 2009 Unemployment Rate Consistent with a stable population base and large number of residents working outside of the city, La Porte's unemployment rate has fluctuated based on regional economic trends. In 2000, the unemployment rate in La Porte registered 3.2 percent. By 2005, the unemployment rate had risen to 4.4 percent. The resurgence of the oil and gas sector created an economic surge for the area. As a result, the unemployment rate dropped to 3 .6 percent in 2007. The current national economic recession and falling energy prices, however have reversed some of these job gains. The current unemployment rate in La Porte 15 6.0 percent, above the Harris County average for the first time this decade. H. Figure 8: La Porte Unemployment Rate La Porte — Harris County 7.0% 6.0% 5.0% - 40% - 3.0% 2.0% 1.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Nw) Source: Texas Workforce Commission Compared to its peer communities, La Porte's rising unemployment rate is consistent with regional trends, In November 2008, Texas City's unemployment rate climbed to 9.3 percent, or 50.0 percent greater than the La Porte value. Deer Park and League City have the lowest unemployment rates at 5: 1 percent 5.3 percent respectively. City of La Porte, Texas Economic & Demographic Assessment I January 2009 Figure 9: Regional Unemployment (November 2008) 110% - 9% - 8% - 6% - 5% - 4% - 3% - 2% - 1% 0% Baytown DeerPark La Porte League City Texas City Harris County Source: Texas Workforce Commission Per Capita Income & Wage Levels While La Porte's population has been slowly increasing, when compared to the state as a whole, its residents per capita income has kept upsta Porte's per capita personal income is 3.7 percent above the Texas average, but 4.Z pei`cent belowttie Harris County Average. The 2005-2007 average percapita income for La Porte is $24,176 versus the Harris County average of $25,364. (Note,.American Community Survey estimates are used to produce the per capita iriccime statistics and are based on data collected over a 3-year time period. The estimates represent the average characteristics of population between January 2005 and ax December 2007 and do not representa single point in time.) Wages paid-Lo, La Porte-based workers, however, are well above state and regional levels. In 2006, the average salary was $57, 195 versus the Harris County average of $51,932. La Porte is also outperforming all of its peer communities. It is not possible to produce wage estimates for La Porte residents who work outside of the city. Based on an analysis of La Porte resident occupations (Table 4) and average wage and per capita income trends (Table 11), however, it is likely that residents earn less than the La Porte-based average wage. La Porte registers the greatest disparity between per capita Income (based on place of residence) and average wage perjob (based on the location of the firm). This indicates millions of wages are leaking to surrounding cities. City of La Porte, Texas Economic & Demographic Assessment I January 2009 Figure 10: La Porte Average Wage per Job $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 510,080 2000 2001 2002 2003 2004 2005 2006 Source: U.S. Census Bureau, Economic Planning and Coordination Division. Table 10: Regional Per Capita Income andAverage Wagerends r0 � � 10 £10 106 Austin County $f8rt40 $242J2,_ ::• - $a,532 $36,678 Brazoria County $20,011 $25346 $33,561 $39,859 Chambers County ",,, $19,863',- K $24,784` , $35,037 $42,439 Fort Bend !County€ , $24,985 -'$29,005 • $34,833 $43,701 Galveston County - $21,568 $26,204 $29,333 $38,170 Harris County $21,43S1 . $25,364 $41,339 $51,932 Libertyc6unty •r$15,539 $17,720 $24,435 $30,355 Montgomery County $24,544 $29,279 $31,563 .$39,429 San Jacinto County $1fi,144 $17,900 $21,187 $24,887 Waller County $16,338 $20,490 $24,708 $33,126 Baytown $17,641 $20,165 $35,734 $41, 169 Deer Park $24,440 $27,313 $49,964 $56,881 La Porte $21, 178 $24,176 $46,135 $57,195 League City $27,170 $32,668 $24,263 $30,304 Texas City $17,057 $19,070 $37,450 $42,504 Source: TXP, U.S. Census Bureau, U.S. Bureau of Economic Analysis City of La Porte, Texas Economic & Demographic Assessment I January 2009 Tourism Sector Tourism-related activity is not a significant component of the La Porte economy, but the city does have a long history of attracting visitors to Sylvan Beach. In recent years, Sylvan Beach remained a popular destination for family outings and the Pavilion hosted local events before its closing after Hurricane Ike. Currently, efforts are underway to increase tourism activity in the area. Harris County, for example, has completed a Sylvan Beach Park Master Plan and has allocated funds for beach reclamation . A 2007 hotel feasibility study by PKF consulting found that the Sylvan Beach area could support a 250-room full service hotel, though no hotel has yet expressed interest in the property. La Porte is also exploring strategies to link Main 31 Street, the 5 Points Development, and Sylvan Beach. Out-of-town visitors still spend millions of dollars at local hotels and shops each year. In 2006, .th, e$45.1 million in direct spending by La Porte visitors supported 400 local jobs and generated $ 1. 1 million in tax revenue. Table 11: Annual Economic Impact of La Porte Vsitor Spending 2002 $34.8 $10.0 400 > 0, $2.4 2003 $35.5 $9.9 400- $0'Y- `" E. $2.4 2004 $36.0 $9.8 -380 $0.8 - $2.4 2005 $42.2 , .. ` -., ' $1- 1 420 TCo $2.7 2006 $45:1 . $11.4 y , 416 _ - '{ $1.1 �`�� ` � $2.8 Source: Office of the Governor, Economic Development and Tourism Figure.lL• Visitor,.Destinatiomspending (2008) $120 - $100 $80 $60 I � $40 $20 N/A $o Baytown Deer Park La Porte League City Texas City Source: Office of the Governor, Economic Development and Tourism City of La Porte, Texas - Economic & Demographic Assessment I January 20D9 Retail Trade Sector A review of area retail sales by trade sector reveals that La Porte is not capturing its full share of resident spending. This finding is consistent with stakeholder input that many residents drive to surrounding communities to shop - in economic terms the region is "leaking" retail sales dollars. For example, La Porte taxable retail sales per capita are well below peer communities, in 2007, La Porte registered $ 1, 850 taxable retail sales per capita compared to $5,938 for Harris County. This has important implications for La Porte's overall tax base because the city generates close to half of its revenue from property taxes or industrial payments. A review of La Porte's total sales tax collections over the past 20 years reveals that big upticks in collections are closely related an increase tithe, sales tax rate (ex. economic development sales tax or construction spending by businesses),, but not new retail activity. Table 12: Per Capita Retail Sales Subject to Sales Tax e . 2002 $5,619 $1,607 $1,487 : $2,382 $4,9$8 $4,941 2003 $5,381 $1,655 $1,494 $2,288" $4,473 $4,825 2004 $5,466 $1,752 ,:. $2,356 ' . $2,644 $4,321 $4,949 2005 $5,844 $2,751 .$2,492 $3,130 $4,371 $5,281 2006 $6,528 $4,122 $5;591 $2,432 $4,366 $5,629 2007 $7,02.4 $4,220 - ,:_ $1,844 $3,176 n . _ $4,561 $5,938 '.i Source: TXP, Texas Comptrollerof Public Accounts = Figure 12: Annual LaPorte Total Sales Tax Rebates $6,000000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 So m N 0, a m fl 00 0 Source: TXP, Texas Comptroller of Public Accounts City of La Porte, Texas - Economic & Demographic Assessment I January 2009 a • Real Estate Sector Single-family building permit activity has been healthy in La Porte over the past decade. Data provided by the Texas A&M Real Estate Center and U.S. Census Bureau, however, indicates that La Porte single-family buildings permits lag the rapid growth in some peer communities. This is not a surprise given the limited amount of land available for development. Future development will likely take place near the Bay Forest golf course or as large lots in the western portion of the city are subdivided. Over the past few years, approximately 100 single-family building permits were issued. Figure 13: La Porte Single-Family Building Permit Activity, 350 300 250 200 150 100 50 0 a In a 0 Source: U5. Census Bureau - The average value of a new single-family home in 2007 was $ 136,321. Using an industry standard of 28 percent of gross income, the maximum percentage of monthly gross income i that a lender'allows for housing expenses plus recurring debt, a new home buyer would need i to earn $40,000 per year to qualify for a traditional loan. Compared to peer communities, La Porte offers one of the lowest prices for a new single-family home. The most expensive peer community was DeerPa"rk at $ 181, 123 per new home. It is worth noting even with La Porte's relatively low housing costs, the majority of La Porte business workers do not live in the city. City of La Porte Texas Economic & D mmic Assessment 1 January 2009 • Figure 14: La Porte Average Value per Single-Family Dwelling Unit ($) $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 Source: U.S. Census Bureau - Figure 15: Average Value per Single-Family Dwelling (2007) $200,000 $18o,o0D '.i $160,000 $140;000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Baytown DeerPark LaPorte League City Texas City Harris County Source: U.S. Census Bureau City of La Porte Texas Economic & Demographic Assessment I January 2099 0 • Appendix : Survey Results Avalanche Consulting is pleased to present the results of the Forward La Porte Economic Development Survey. The survey was conducted between December 2008 and January 2009 to gain insight into local residents and businesses opinions about economic development. A total of 301 surveys were completed. Across the board, survey responses reflected a consistent thinking among La Porte residents. City beautification, Main Street revitalization, and Sylvan Beach revitalization topped residents' economic development priorities. La Porte's top strengths are perceived as being (1) public safety, (2) cost of living, (3) access to higher education; and (4) quality of K-12 education. The city's perceived weaknesses included retaii'sk-opping, downtown, arts and culture, and the city 's appearance. Many residents encauragedthe City to concentrate on balancing growth through community development versus industrial recruitment, reviving La Porte's historic core, and offering families enhance_ d' entertainmentand recreational opportunities. Methodology - Avalanche Consulting kicked off the project by developingpn online survey and then presented the draft questions to ttie Forward La Porte Steering Committee for review.. After receiving their feedback, Avalanche finalized the survey and launched it on December 8, 2008. (A copy of the survey is provided at the end of this Appendix. ) To encourage residents to participate in the survey,- Avalanche initiated a multi-faceted promotional campaign : • Avalanche developed the online survey utilizing QuestionPro software. An online format was chosen to save time and cost. Avalanche developed'-a survey webpage which contained a link to the survey. The websites URLwas provided to Steering Committee members and other civic leaders, and they. in turn shared it with their contacts. • The Bayshore Sun and Houston Chronicle wrote articles about the survey's launch. • Avalanche and the Bayshore Sun created an advertisement to remind residents to take the survey. The ads were published in the January 18 and January 21 editions. • The survey was viewed by 497 people. Avalanche received 301 complete survey questionnaires. On average, it took participants 10 minutes to finish the survey. cx The survey was completed on January 23, 2009. Survey Demographics Of the 301 residents who completed the survey, 60 percent had lived in La Porte for 11 years or longer. 76 percent of all respondents were currently employed, with exactly one-half employed by a company located in La Porte and the other one-half working outside of the city. A large majority of survey participants (65.8 percent) were 45 years old or older. City of La Porte, Texas Economic & Demographic Assessment I January 2009 The demographic mix of survey respondents closely matched the city's population demographics. Age Range % of Survey Participants 18-24 years 2.8% 25-34 years 10.4% 35-44 years 21. 0% 45-54 years 31.6% 55-64 years 20. 2% 65+ years 14.0% Economic Development Questions To kick off the economic development portion of the survey, Avalanche wanted to understand local residents definition of "what counts as success'? in economic development. 84% of them said that they agree with the following definition: Enhanced prosperity and quality of life for La Porte's residents and businesses. " Next, we asked respondents to ratetheir satisfaction level onaI variety of economic development topics, from education tg quality of life to,city government. Participants scored each topic on a scale of 1 (not satistied)Ito 4 (very satisfied)'.,_To highlight a few of the findings : A majority of respondents.were either "satisfied" or . Verysatisfied.'with the following topics: - - - , - - • Public safety (75.9%) • Cost of living (75.8%) • Higher education opportunities in the area (62.8%) Public education (54..5%) In contrast, a majority-of'tespondents indicated that they were "not satisfied" with the following: - • Retail shopping and restaurants (67. 1%) • Downtown development (63.4%) • City's appearance (60:7%) • Entertainment and, recreation (60.0%) • Arts and culture{563%) • External perception of La Porte (54. 1%) • Transportation access (44. 1%) On the remaining topics, most respondents felt neutral on the availability of volunteer opportunities and local cooperation ! shared vision . City of La Porte, Texas - Economic & Demographic Assessment I January 2009 Figure 16: How satisfied are you with the following aspects of La Porte? 1.00 ZOO 3.00 4.00 Public safety Costof living Higher education H-12 education I Volunteer opportunities ; Citygovernment Local cooperation ! I Transportation access . i I - External perception Entertainment/recreation j Appearance . _ ,i .. Arts / culture Downtown - _ Retail shopping ; NotSatiisfied VerySatisfied The above figure illustrates the average score for each option. Options receiving a score of 2.5 or greater are satisfactory for a majority of La Porte residents, while scores lower than 2.5 are areas in which residents see need for improvement. Respondents were also asked to rate whatthey believe Labe La Porte's top economic development priorities. Quality of place topics such as beautification, downtown revitalization, and Sylvan Beach 'strongly rose tdthe top. Interestingly, traditional economic development roles, sdch as business recruitment, local business expansion, and external marketing rated much lower. - Figure 17: What are the city's tap three economic development priorities? 0.0% 5 .0% 100% 15.0% 20.0% Beautifying La Portes- Appearance 18. 7 % Revitalizing Downtown 17.9% Revitalizing Sylvan Beach 17.3% Recruiting Hew Businesses 14. 7%. Assisting Entrepreneurs 7. 1% Other Building Eternal Awareness X5.7% Improve Local Cooperation S1% Business Expansion 13.8% Increase Housing Stock 3.6% City of La Porte, Texas Economic & Demographic Assessment I January 2009. The survey contained several open ended questions that allowed participants to comment on their view of the city's greatest strengths and challenges. They were also asked to provide a single word or phrase that they would like to be used to describe La Porte 20 years from now. A list of select comments is provided at the end of this document. We also sorted comments according to subject matter, and have listed the results below. (Note, not every participant commented.) What is La Porte's single greatest strength? Topic Number of Responses Waterfront Location / Sylvan Beach 9S ,'" . ' Small town charm 5'g,.• '_ Location relative to Greater Houston 42 People ("warm," "friendly") 41 Petrochemical and port industries 25 Public safety 10 City leadership v 7 History 6.. ' . La Porte K-12 schools 5 What is La Porte's single greatest weakness? Topic Number of Responses Balancing growth / preserving city's character 63 Appearance of the city - 60 Appearance of Main Street specifically - 15 New business attraction, retail and entertainment 47 Petrochemical and pdrtindustries 39 Poflution related toindustry,- specifically 12 Traffic related to industry specifically -. • 13 External perception/ reputation 17 Local -politics / status qunthinking , ' • 13 Flooding/ hurricanes t . City of La Porte, Texas - Economic & Demographic Assessment I January 2009 What is La Porte's single greatest strength? (sample answers) "Good down home feeling ' "Small town attitude and ambiance" "Waterfront location and diversity of homes" "The plants and refineries" "Sylvan Beach" "Proximity to Galveston Bay and historical role in the Battle of San Jacinto" "Potential for growth, not necessarily in size but in quality" "Space for development that will bring in tourism and business" "Sylvan Beach Pavilion, it's reputation from years of history", "Proximity to Houston, massive employment base, vital transportation systems" "3.3miles of Galveston Bay front" , "The thing that I have heard from Hurricane support workers is that we have great diners!" "Friendliness" "Security and tranquility" "Petrochemical business" "Its people !" _ "Small town qualities while being next to a large dry" "Located on a corner of a major highway with plenty ofland for development" "Port of Houston, LPISD, and the City are fine examplesof the strength of La Porte" "Camaraderie of the community' "Friendly people including store and restaurant'owners" "Our town has a fine group of citizens, many of whom I am proud to call friends" "Affordability of homeownership" ` "Jobs, industry and.,recreation of Galveston Bay` "Parental involvement in school activities" "Small city with industry.tax base" "Historicalsigiiificance of the city and the area "Wdferfronfparks.and homes, older neighborhoods With history" "Ship channel" "The history of the downtown area/old buildings, the bay — if cleaned up" "Low crime" "Caring community" j City of La Porte, Texas Economic & Demographic Assessment I January 2009 What is La Porte's single greatest challenge? (sample answers) "People not wanting progress" "Lacking in beautification, no local retail" "Blight" "Attracting retail customers for La Porte's businesses" "Old in appearance... and maybe in spirit?" "Getting people here to appreciate the city" "Remaining a good place to raise a family without succumbing to the industry and Port" "Restoration and redevelopment of old downtown while maintaining the original look" "Overcoming the current perception from people not living or entertaining here" "Protecting citizen rights against industry" "Bringing more tourist activity to La Porte" "Fighting the 'industrial moniker" "Improving schools. Resisting continued. industrial rowth" "Quality retail development" "Flooding issues" "Air quality caused by local industry" "Keeping us safe from traffic problems and chemical leaks"-- "Doing something with Sylvan Beach"., - "Patience. Real growth and qualiftoflife comes from time, perseverance, and hard work" "Getting more people to the city" - "The overwhelming presence of industry" "Abiltyto attract higher.end retail / dinirigcenters" - "Getting citizens to not be afraid to support changel" ' "Few activities, no outdoor trails despite the be}!' "Limited shopping"' . "Age of infrastructure aril lackofrecreational activities that would draw nonresidents" "Chemical plants and the resulting pollution" "Keeping our small town feeling" , "Blighted neighborhoods" "Downtown should be "developed with tourism in mind" "Horrible port traffic" "Putting political agendas aside" "Division" "Industrial encroachment" "The age of the city and the fact that it is in need of a face lift" "Resistance to growth and .change" "Truck traffic" "Not very many programs offered for children" "Number of dilapidated buildings, particularly in downtown" "No tall palm trees or lush landscaping to welcome visitors and residents" - - QCity of La Porte, Texas - Economic & Demographic Assessment I January 2009 In an ideal world, what word or phrase will be used to describe La Porte 20 years from now? (sample answers) "Most beautiful port city in the world" "Key in boosting commerce of the Houston region" "A great place to live and play" "An artistic community" "Revived" "Doorway to the world" "Friendly, dynamic small city" "Coastal community by the Say to live, work, and play' "Vibrant, renewed" "Modern and viable" "A historic city that has great memories" - "La Porte, Your port of all !" "The most prosperous small town in the nation "A destination" "A jewel on Galveston Bay" t - "La Porte, we are family' "The new Kemah' "An oasis from the rat race of life" "La Porte : The Gulf Coast destination" - , "Inviting and Industrious" "A model port city" - "A walkable, mixed use community with multiple incomes and housing types" "Fun but cozy' "The 'master' of bedroom communities" "We finally have underwear forsake !" "Family friendly and prosperous" "Self sufficient" "City on the sunrise" -. "Clean;- green, and safe" . . 1 "A port; warehouse, and transportation center ' not a hometown" "Gateway to, Houston" "Set your sails on La Porte" "Playground" "Contemporary suburban metropolis" "Beacon of wonderm ''- ent "Forward thinking" "China's warehouse" "Seaside nostalgic" "Coastal relaxation" "City of Hope" "Thriving" City of La Porte, Texas - Economic & Demographic Assessment I January 2009 Q Legal Disclaimer TXP and Avalanche Consulting reserve the right to make changes, corrections, and/or improvements at any time and without notice. In addition, TXP and Avalanche Consulting disclaim any and all liability for damages incurred directly or indirectly as a result of errors, omissions, or discrepancies. TXP and Avalanche Consutling disclaim any liability due to errors, omissions, or discrepancies made by third parties whose material TXP and Avalanche Consutling relied on In good faith to produce the report. Any statements involving matters of opinion or estimates,whether or not so expressly stated, are set forth as such and not as representations of fact;.dnd no representation is made that such opinions or estimates will be realized. The information and expressions of opinion contained herein are subject to change Without notice, and shall not, under any circumstances, create any implications that t1}ere has been no change or"updates. te City of La Porte Texas - Economic 8 Demographic Assessment I January 2009 5 H 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