HomeMy WebLinkAbout08-22-22 LPDC
RICHARD WARREN
DANNY EARP
PRESIDENT
BOARD MEMBER
BRENT MCCAULLEY
JOHN BLAKEMORE
COUNCILPERSON
BOARD MEMBER
AMANDA GERRISH
NANCY OJEDA
BOARD MEMBER
VICE-PRESIDENT
CHUCK ENGELKEN
COUNCILPERSON
MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION
BOARDOF DIRECTORS MEETING OF JULY 25, 2022
The City of La Porte Development Corporation Board met on Monday, July 25,2022,at theCity Hall
Council Chambers, 604 West Fairmont Parkway, La Porte, Texas,at 5:00p.m., with the following in
attendance:
Board members present:Richard Warren,Danny Earp, Chuck Engelken(left the meeting at5:28p.m.),
John Blakemore, Brent McCaulley, Amanda Gerrish, Nancy Ojeda
Board membersattendingremotely: None
Board members absent: None
Council-appointed members present:Corby Alexander,City Manager;Lee Woodward, City Secretary;
Clark Askins, Assistant City Attorney
1.CALL TO ORDERPresidentWarrencalled the meeting toorder at 5:00p.m.
2. CITIZENCOMMENT(Generally limited to five minutes per person; in accordance with state law, the
time may be reduced if there is a high number of speakers or other considerations.)
There were no comments.
3.PRESENTATIONS
a.Receive Annual Report from Houston Port Region Economic Alliance. \[Matt Daeumer,
Assistant City Manager\]
Chad Burke provided the report and introduced Karen Gregory, Intergovernmental Relations,
Economic Alliance.
4.AUTHORIZATIONS
a.Approve the minutes of the regular meeting of the La Porte Development Corporation Board
of Directors held on June 27, 2022. \[Chair Warren\]
Member Engelken moved to approve the minutes of the regular meeting of the La Porte
Development Corporation Board of Directors held on June 27, 2022; the motion was seconded by
Members Ojeda and Blakemore; the motion was adopted, 7-0.
b.Presentation, discussion, and possible action to approve the La Porte Development
-23 Fiscal Year budget. \[Matt Daeumer, Assistant City
Manager\]
Assistant City Manager Daeumerpresented the proposed budget.Member Ojeda proposed that
the abandoned concession stand attheLittle Cedar Bayoufrontballfields be renovated into a
restroom.City Manager Alexander said there would likely be a special meeting called shortly and
asked for the opportunity to bring estimates to that meeting. There was no objection.Assistant City
Manager agreed to also bring fund amounts for 6040 Trade Shows. He also said an individual had
Page 1of 2
July 25, 2022, La Porte Development Corporation BoardofDirectorsMinutes
been interviewed for the Economic Development position
like to set a special session for August 1.
5. SET DATE FOR NEXT MEETING
The next meeting date was scheduled for August 1, for a special meeting and next regular meeting on
August 22, 2022.
6. 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.
There were no comments.
ADJOURN The meeting was adjourned without objection at 5:42 p.m.
___________________________________
Lee Woodward, City Secretary
Page 2 of 2
July 25, 2022, La Porte Development Corporation Board of Directors Minutes
RICHARD WARREN
DANNY EARP
PRESIDENT
BOARD MEMBER
BRENT MCCAULLEY
JOHN BLAKEMORE
COUNCILPERSON
BOARD MEMBER
AMANDA GERRISH
NANCY OJEDA
BOARD MEMBER
VICE-PRESIDENT
CHUCK ENGELKEN
COUNCILPERSON
MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION
BOARDOF DIRECTORS MEETING OF AUGUST 2, 2022
The City of La Porte Development Corporation Board metin a special meetingon Tuesday, August
2,2022,at theCity Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas,at 5:00
p.m., with the following in attendance:
Board members present:Richard Warren,Danny Earp, Chuck Engelken(arrived at 5:08 p.m.),John
Blakemore, Brent McCaulley, Amanda Gerrish, Nancy Ojeda
Board membersattendingremotely: None
Board members absent: None
Council-appointed members present:Corby Alexander,City Manager;Lee Woodward, City Secretary;
Clark Askins, Assistant City Attorney
1.CALL TO ORDERPresidentWarrencalled the meeting toorder at 5:00p.m.
2. CITIZENCOMMENT(Generally limited to five minutes per person; in accordance with state law, the
time may be reduced if there is a high number of speakers orother considerations.)
There were no comments.
3.AUTHORIZATIONS
a.Presentation, discussion, and possible action to approve the La Porte Development
-23 Fiscal Year budget. \[Matt Daeumer, Assistant City
Manager\]
Assistant City Manager Daeumer attended remotely and provided a brief update to last wee
item, noting the addition of the funds for remodeling the Fairmont Park ballfields concession stand
into bathrooms. Member Blakemore moved to
proposed 2022-23 Fiscal Year budgetas presented; the motion was seconded by MemberOjeda;
the motion was adopted, 6-0.
b.Authorize staff to publish a notice to begin the 60-day comment period for seven (7)
proposed projects of the La Porte Development Corporation totaling $2,425,000.00 for fiscal
year 2022-2023. These projects are: 1) La Porte Golf Course Fencing Project -$475,000.00;
2) La Porte Golf Course Pond Remediation -$150,000.00; 3) La Porte Golf Course Land
Acquisition -$350,000.00; 4) Fairmont Park Ballfield Restroom -$350,000.00; 5) La Porte
Wave Pool Enhancements -$500,000.00; 6) La Porte Recreation Center Phase II Design -
$250,000.00; and 7) Citywide Signage Project Phase III -$350,000.00. \[Matt Daeumer, Asst.
City Manager\]
Member McCaulley moved to open the 60-day comment periodfor seven (7) proposed projects of
the La Porte Development Corporation totaling $2,425,000.00 for fiscal year 2022-2023. These
projects are: 1) La Porte Golf Course Fencing Project -$475,000.00; 2) La Porte Golf Course Pond
Remediation -$150,000.00; 3) La Porte Golf Course Land Acquisition -$350,000.00; 4) Fairmont
Park Ballfield Restroom -$350,000.00; 5) La Porte Wave Pool Enhancements -$500,000.00; 6)
Page 1of 2
August 2, 2022, La Porte Development Corporation BoardofDirectorsMinutes
La Porte Recreation Center Phase II Design - $250,000.00; and 7) Citywide Signage Project Phase
III - $350,000.00; the motion was seconded by Member Blakemore; the motion was adopted, 6-0.
c. Presentation, discussion and possible action to fill the open Economic Development
Coordinator position. \[Matt Hartleib, HR Manager\]
HR Manager Matt Hartleib presented David Gwin for an interview with the Board. (Member
Engelken arrived at this point.)
4. SET DATE FOR NEXT MEETING
The next meeting date was scheduled for August 22, 2022.
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.
President Warren thanked everyone for the special meeting and considering new ideas.
ADJOURN The meeting was adjourned without objection at 5:51 p.m.
___________________________________
Lee Woodward, City Secretary
Page 2 of 2
August 2, 2022, La Porte Development Corporation Board of Directors Minutes
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:August22, 2022
Source of Funds:Special Programs
Requested By: Matt DaeumerAsst. City Mgr.
Department:Administration/CMO
Account Number:038-6030-565-9997
Amount Budgeted:
ReportResolutionOrdinance
Amount Requested:$30,000
Exhibits:Development Agreement, Incentive
Budgeted Item:YesNo
Application, Design & Site Plans
SUMMARY & RECOMMENDATION
On May 23, 2022, staff brought to the La Porte Development Corporation Board a
project in downtown La Porte. The applicant Frank Nance haspurchased the building
at 508 W. Main St, which currently house his State Farm Insurance Agency. There is
a need to significantly remodel and expand the structure in order to grow his business.
The initial estimates put 00,000. Staff ran the project
through the EDC matrix, which indicated that this project would be eligible for a $30,000
incentive. This project has the potential to have more intangible value to the City,
specifically due to the foot traffic hub on Main Street.
On May 23, 2022, the La Porte Development Corporation Board discussed the project
and approved to move forward with an incentive package for this project in an amount
not to exceed of $30,000. As required by state law, a sixty (60) day public comment
as advertised in the
Bay Area Observer on June 2, 2022. Since this date, staff has not received any citizen
feedback regarding this incentive application.
Summary
The application requiresaction by the City Council, which will occur on September 12,
2022.
development agreement concerning thefunding through an incentive projectfor an
amount not to exceed $30,000. Below outlines details of this draft development
agreement:
Totalcash incentive of $30,000 with following payment schedule: two payments
of $15,000 and $15,000
o First payment of $15,000, within 30 days of substantial completion of
construction/ renovations. This payment is estimated to occur aroundJuly
2023.
o Second payment of $15,000 when building is occupied with four (4) full-
time jobs (confirmed by documentation stating such). The applicant will
be responsible for maintaining jobs 5 years after 2nd payment. This
payment is estimated to occur around January 2024.
Claw-
maintain the four (4) jobs for five (5) years, each year potential recapture amount
decreases by $6,000. If the Recipient fails to qualify for the first payment, then
recapture amount will decrease by $3,000.
Staff request the Board to hold a public hearing to receive feedback on this incentive
project that was funded by the Board for FY 2021-22. At the conclusion of the public
hearing, based on the feedback received during the 60-day comment period, staff
recommends approval from the LPDC Board for the State Farm Building incentive
project.
Staff has worked with the Assistant City Attorney and the applicant on an agreeable
development agreement. Staff will ask that the Board consider approval of the
agreement if it approves the project.
ACTION REQUIRED BY BOARD
Conduct public hearing to receive comments from the public on this project.
Consider, discuss, and possible action on a financial incentive of $30,000 to
Frank Nance, applicant for his refurbishment/Renovation of the State Farm
Building, located at 508 S. Broadway Street in La Porte, Texas.
Approved for the La Porte Development Corporation Board meeting agenda.
Corby D. Alexander, City Manager Date
La Porte Development Corporation Project Scorecard -- PRIORITIES
Project's Project's 10 Year Project's Full Time Project's Existing Incentive Value
# of New % Allowed by
Regression Estimated
PRIORITY Value Tax or PILOT Multiplier Value Job Avg. 10 Year Allowed by Tax
Project TypeFull Time Tax Abatement
67
Analysis Incentive Value
123 458
JobsPolicy
(Up to 10) Revenue (Up to 4) Value Incentives Abatement Policy
New Retail/Restaurant Dev.
A
10$3,420,00020.00.0$0342.0$2,565,000$355,00050%
(Higher)
A1
Palais Royal10$471,0002160$047.1$353,250$17,75050%
Retail or Restaurant Re-Development/
B
9$684,000100$030.8$230,850$71,00050%
Blight Removal/EHG (Higher)
B1
9$846,62821000$076.2$571,474$11,65750%
Pipeline Grill
B2
9$210,500280$018.9$142,088$17,75050%
Fischer's Hardware
C
8$1,532,500200$0122.6$919,500$133,12550%
Quality Waterfront Development
D
7$648,500300$068.1$510,694$62,12550%
Main Street Improvements
D1
7$35,500380.1$03$22,365$8,87550%
Bank Building Remodel
D2
Micro-Brewery (Purchase)7$105,5002120.1$09$66,465$8,87550%
D3
Battleground Saloon5$64,7302150.075$04$27,308$8,87550%
New Retail/Restaurant Dev.
E
6$826,000100$024.8$185,850$106,50050%
(Lower) - Rob Johnson/Dollar Tree
Retail or Restaurant Re-Development/
F
6$121,000100$03.6$27,225$3,55050%
Blight Removal/EHG (Lower)
F1
6$542,0002120$032.5$243,900$35,50050%
El Toro
Industry - NEW Development
G
5$11,182,5004240.125$4,579,500396$2,971,350$2,662,50010%
(Higher) - INEOS Unit #1 - $250 Million
G1
INEOS Unit #2 - $500 Million5$22,365,0004600.125$9,159,0001981$14,856,750$2,662,50010%
G2
Project Regulate5$1,136,0003400.125$085$639,000$56,80010%
G3
ACT Turbo (New Industry)5$426,0003730.13$061$454,808$21,30010%
H
NEW Office/HQ - InterGulf Corporation4$142,0004300.15$010$76,680$7,10010%
I
NEW Office/Regional - Richard Industrial Group4$10,6504750.15$02$14,378$1,77510%
Industry - NEW Development
J
3$568,0004350.1$024$178,920$28,40010%
(Lower) - Sector 23 (Original)
J1
3$1,278,0004720.1$0110$828,144$28,40010%
Sector 23 (Latest)
Industry - RETENTION/EXPANSION
K
3$426,0003730.13$036$272,885$21,30010%
(Higher) - ACT Turbo (Expansion)
Industry - RETENTION/EXPANSION
L
2$710,0003150.075$05$35,944$35,50010%
(Lower)
M
1$177,5002300.1$01$7,988$8,87510%
Airport Re-Development
N
1$21,655130.1$04$30,000$65010%
State Farm (Frank Nance)
Notes:
1. Staff assigned prioritized values, from a maximum of 10 to a minimum of 1
2. Thevalues in this column include revenues from property taxes, business personal proeprty taxes, and sales taxes.
3. Staff assigned a value, from a maximum of 4 to a minimum of 1, for each project. A value of 4 means that the project will have a significant multiplier effect to bring new money
and/orpeople into our local economy. A value
of 1 means that the project will have little or no multiplier effect to bring new money and/or people into our local economy.
4. Staff assigned a value, from a maximum of 0.15 to a minimum of 0.0750.15 was assigned to higherpaying,whitecollar, engineering, engineering
design, or executive positions. A value of 0.125 was assigned to highly skilled positions for a process technician and/or advanced manufacturer. A value of 0.10 was assigned to skilled
positions. A value of 0.075 was assigned
tounskilled positions.
5. Data in this column identifies all other local incentives, like PILOT abatements under an existing IDA or scheduled TIRZ reimbursements, that any project may be entitled to receive.
6. regression analysis to tie together all the columns of data. Important assumptions of the formulas are as follows:
xRetail projects are five edTax Abatement Policy.
x not
xtivthat the project is expected to
deabove.
smaller, more manageable, and easier to compare.
(a) For all Retail, Restaurant, Re-Development, and Waterfront Projects, ƷźƒĻƭƷźƒĻƭ
ķźǝźķĻķ ĬǤ 1 million.
(b) For all Industry and Office Projects,ƷźƒĻƭƷźƒĻƭķźǝźķĻķ
ĬǤ 1 million.
7. $7,500.
8. batement Policy.
Projects identified in dark greentext represent projects that have either already been awarded an incentive grant, or staff has good estimates for the projects.All other projects are
completely "hypothetical".
A. Hypothetical -$20 millionretail/restaurant/mixed use development project with $10 million in annual retail sales.
A1. Palais Royal -$1 million property value with $2 million in annual retail sales.
B. Hypothetical -$4 millionproject with $2 million in annual retail sales.
B1.Pipeline Grill -$1.2 million in commercial property with $4 million in annual retail sales.
B2. Fischer's Hardware -$1.5 million in commercial property with $520,000 in additional, annual retail sales.
C. Hypothetical -$7.5 millionwith $5 million in annual retail sales.
D. Hypothetical -$3.5 million with $2 millionin annual retail sales.
D1.Micro-Brewery (Lease) -$500,000 in commercial property value, $350,000 in annual retail sales, 12 full time employees, and rent of $48,000/year for five years.
D2.Micro-Brewery (Purchase)-$500,000 in commercial property value, $350,000 in annual retail sales, and 12 full time employees
E.Rob Johnson/Dollar Tree -$6 million project with $2 million in annual retail sales.
F. Hypothetical-$1 million project with $250,000 in annual retail sales.
F1.El Toro-$2 million in new commercial property, plus $2 million in additional, annual retail sales.
G. INEOS USA, LLC -Unit#1, $250 million investment, 84 highly skilled, full time jobs, 20% IDA for years #1-6, 63% IDA for years #7-10.
G1.INEOS USA, LLC-Unit #2, $500 million investment, highly skilled, full time jobs, 20% IDA for years #1-6, 63% IDA for years #7-10
G2.Project Regulate-$16 million investment, with at least 40 (to 60 within 5 years) highly skilled, advanced manufacturing, full time jobs. (Note: Project would be in the TIRZ).
G3.ACT Turbo (New Industry)-$6 million investment with 73 new, highly skilled, advanced manufacturing, full time jobs.
H. InterGulf Corporation -$2million investment with 30 white collar, higher paying, full time jobs.
I. RichardIndustrial Group -$500,000 investment with 75 white collar, higher paying, full time jobs. (Note: the 10 year PILOT is based on 3 years, equal to the term of the lease,
rather than the usual 10 year timeframe.)
J. Sector 23 (Original) -$8 million investmentand 35 full time, skilled jobs assuming 15 buildings, 3 employees per building, and minus 10 employees per the development agreement.
J1. Sector 23 (Latest)-$18million investment and est. 72 full time, skilled jobs assuming 18 buildings, 4 employees per building.
K. ACT Turbo (Expansion) -$6 million investment with 73 new, highly skilled, advanced manufacturing, full time jobs.
L. Hypothetical-Warehouse/Distribution, $10 million investment, 15 unskilled, full time jobs.
M. Hypothetical -Airport expansion, $2.5 million city participation/investmentwith30 skilled, full time jobs.
From:Woodward, Lee
To:CMO - Staff
Cc:CSO - Staff; Clark T. Askins
Subject:Fw: Public Notice - 508 W. Main Street
Date:Thursday, June 2, 2022 2:19:47 PM
Attachments:60 day notice LPDC project 508 West Main.docx
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Good afternoon! Please see below, this ran today.
Lee
From: Kizzee, Julius <kizzeej@laportetx.gov>
Sent: Wednesday, May 25, 2022 8:43 AM
To: editor@bayareaobserver.com <editor@bayareaobserver.com>
Cc: Daeumer, Matt <DaeumerM@laportetx.gov>; CSO - Staff <CSOStaff@laportetx.gov>
Subject: RE: Public Notice - 508 W. Main Street
Good morning Rebecca,
Please use this version with an updated contact number for Mr. Daeumer.
Julius Kizzee|Senior Administrative Assistant,
City Manager’s Office
604 W. Fairmont Parkway | La Porte, TX 77571
O. 281.470.5013 | f. 281.842.1259
website | map |email |
From: Kizzee, Julius
Sent: Wednesday, May 25, 2022 8:17 AM
To: editor@bayareaobserver.com
Cc: Daeumer, Matt <DaeumerM@laportetx.gov>; CSO - Staff <CSOStaff@laportetx.gov>
Subject: Public Notice - 508 W. Main Street
Good morning Rebecca,
We wanted to submit this public notice for publication in the next available edition of the Observer. Please send
proof when you are able to.
If you are able to, please send the invoice back to me so that we may make a payment.
Thank you,
Julius Kizzee|Senior Administrative Assistant,
City Manager’s Office
604 W. Fairmont Parkway | La Porte, TX 77571
O. 281.470.5013 | f. 281.842.1259
website | map |email |
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:May 23, 2022
Source of Funds:Special Programs
Requested By:Matt Daeumer, Asst. City Manager
Department:
Account Number:038-6030-565-9997
Amount Budgeted:$200,000
ReportResolutionOrdinance
Amount Requested:$30,000
Exhibits:ApplicationSite plan
;
Budgeted Item:YesNo
SUMMARY& RECOMMENDATIONS
The applicant, Frank Nance,is interestedin buying his current buildingat 508 W. Main
Street and remodeling it to expand his current State Farm Insurance Agency. This will
allow him to add three (3) additional full-time positions in the next five (5) years and
provide improved services to his customer base. The total requested amount from the
City is $30,000 from the Economic Development Incentives Program.
This will be a significant remodelof the existing structure which is currently 720 square
feet.They will also expand the existing structure to the Northadding an additional 1200
square feetfor a total of 1920 square feet.Aparking lot of 950 square feetwill be
added to the North side of the property. They will re-paintthe entire building, update
façade siding, signage, canopy and exterior finishes, Thisproject is eligible for $30,000,
based on the matrix scorecard,but the Board has the authority to award any amount
not to exceed $30,000.
Total project budget:
Interior Remodeling of 720 sf $ 5,000
North Expansionof1200 sf $ 87,000
North Parking Lot of 950 sf $ 8,000
Re-paint building exterior $ 4,500
Update Façade Siding, Signage $ 5,000
Canopy and Exterior Finishes $20,500
Total $130,000
If the Board was interested in pursuing this project, staff would suggest opening the 60
day public comment period as there would be no requirement to fund the project at the
end of 60 days.
RECOMMENDED MOTION
Move to open the 60-day public comment period for a possible incentive payment, not
to exceed $30,000, for 508 W. Main Street.
Approved for the La Porte Development Corporation Board meeting agenda
Corby D. Alexander, City Manager Date
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:August22, 2022
Source of Funds:Special Programs
Requested By: Matt DaeumerAsst. City Mgr.
Department:Administration/CMO
Account Number:038-6030-565-9997
Amount Budgeted:
ReportResolutionOrdinance
Amount Requested:$30,000
Exhibits:Development Agreement, Incentive
Budgeted Item:YesNo
Application, Design & Site Plans
SUMMARY & RECOMMENDATION
On May 23, 2022, staff brought to the La Porte Development Corporation Board a
project in downtown La Porte. The applicant Frank Nance haspurchased the building
at 508 W. Main St, which currently house his State Farm Insurance Agency. There is
a need to significantly remodel and expand the structure in order to grow his business.
The initial estimates put 00,000. Staff ran the project
through the EDC matrix, which indicated that this project would be eligible for a $30,000
incentive. This project has the potential to have more intangible value to the City,
specifically due to the foot traffic hub on Main Street.
On May 23, 2022, the La Porte Development Corporation Board discussed the project
and approved to move forward with an incentive package for this project in an amount
not to exceed of $30,000. As required by state law, a sixty (60) day public comment
as advertised in the
Bay Area Observer on June 2, 2022. Since this date, staff has not received any citizen
feedback regarding this incentive application.
Summary
The application requiresaction by the City Council, which will occur on September 12,
2022.
development agreement concerning thefunding through an incentive projectfor an
amount not to exceed $30,000. Below outlines details of this draft development
agreement:
Totalcash incentive of $30,000 with following payment schedule: two payments
of $15,000 and $15,000
o First payment of $15,000, within 30 days of substantial completion of
construction/ renovations. This payment is estimated to occur aroundJuly
2023.
o Second payment of $15,000 when building is occupied with four (4) full-
time jobs (confirmed by documentation stating such). The applicant will
be responsible for maintaining jobs 5 years after 2nd payment. This
payment is estimated to occur around January 2024.
Claw-
maintain the four (4) jobs for five (5) years, each year potential recapture amount
decreases by $6,000. If the Recipient fails to qualify for the first payment, then
recapture amount will decrease by $3,000.
Staff recommends the La Porte Development Corporation Board approve the
development agreement for the 508 W. Main Street project for the
refurbishment/renovation of the State Farm building located at 508 W. Main Street in
La Porte, Texas not to exceed $30,000.
ACTION REQUIRED BY BOARD
Presentation, discussion and possible action to approve a Development
Agreement for 508 W. Main Street, an incentive for refurbishment/renovation of
the State Farm building located at 508 W. Main Street in La Porte, Texas not to
exceed $30,000.
Approved for the La Porte Development Corporation Board meeting agenda.
Corby D. Alexander, City Manager Date
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA
PORTEDEVELOPMENT COPRPORATIONAND FRANK NANCE,FOR USE OF
TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS
THIS AGREEMENT made by and entered into this 22nd day of August 2022
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 referred to as Frank Nance, hereinafter referred to
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 an individual who owns the land and existing
building situated thereon, located at 508 West Main Street, La Porte, Texas, and
at which site Recipient operates a business as an independent agent for State
Farm Insurance Company; and
WHEREAS, Recipient wishes to renovate the exterior and interior of the
existing building located at 508 West Main Street, and make associated
infrastructure, site and related improvements, for the purpose of operating
commercial office space and which would 1) result in the expenditure by Recipient
of an estimated $130,000.00 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 508
West Main Street under a qualifying project of the LPDC for infrastructure, site and
related improvements that promote or develop new or expanded business
enterprises, 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:
1
ARTICLE I
In consideration of Recipient renovating the existing structure at 508 West
Main Street and operating commercial office space 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
August 22, 2022, LPDC agrees to provide Recipient an incentive package
consisting of a cash payment in a total sum not to exceed $30,000.00, to be
distributed in two increments of $15,000.00 and $15,000.00 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 $15,000.00 will
be distributed to Recipient by LPDC, upon a) receipt by LPDC of
proof of substantial completion of renovation of the Building and,
and b) proof of minimum capital investment in the amount of
$130,000.00 applied towards renovation of the Building and
related infrastructure and site work. However, in no case will the
$15,000.00 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 $130,000.00
applied towards capital improvements to the Building and related
infrastructure and site improvements is not delivered to and
received by LPDC by July 31, 2023. In the case that proof of
substantial completion of renovation of the Building and minimum
capital investment of $130,000.00 applied towards capital
improvements to the Building related infrastructure and site
improvements is presented to LPDC on or before said July 31,
2023 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 $130,000.00 by
LPDC from Recipient. Upon verification of the substantial
completion of the Building and minimum capital investment of
$130,000.00, 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 $15,000.00 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 $130,000.00 by the July 31,
2023 deadline, despite therefore being disqualified for the first
$15,000.00 incentive payment, Recipient will remain eligible to
qualify for receipt of the second $15,000.00 incentive payment
under Paragraph 2 below, in so far as the conditions precedent of
permanent employment of four (4) positions required in such
paragraph is met. However, in such case Recipient will remain
responsible to submit proof of substantial completion of
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renovation of the Buildingand minimum capital investment in the
amount of $130,000.00 in order to qualify for the second incentive
payment outlined in Paragraph 2 below.
2) A cash incentive payment in an amount equal to $15,000.00 will
be distributed to Recipient by LPDC upon delivery to the LPDC of
a) an employment roster evidencing that Recipient employs a
minimum of four (4) full time employees at the Building site as of
January 31, 2024. However, in no case will the $15,000.00
payment be made by LPDC if proof of the employment of a
minimum of four (4) full time personnel at the Building site as of
January 31, 2024 is not delivered to and received by LPDC by
August 30, 2024. Proof of employment, for purposes of this
agreement, may be satisfied by submission to LPDC by the said
August 30, 2024 deadline of a) copies of 941 Report
to the Internal Revenue Service and C3 Report to the Texas
Workforce Commission for each employee (but with social
security numbers of each employee redacted) and b) a notarized
statement executed by Recipient 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 August 30, 2024 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 $15,000.00 to
Recipient within a period not to exceed thirty (30) days.
In the event that Recipient qualifies for the $15,000.00 incentive installment based
upon proof of employment of four (4) full-time positions 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 at the Building site of a 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,
2024, through and including December 31, 2028, 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 $6,000.00, representing recapture
out of the previously awarded $30,000.00 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 $6,000.00 recapture for that
year.
If Recipient fails to qualify for the $15,000 incentive installment provided for in
Article I, Paragraph 1 but qualifies for payment of the $15,000.00 payment under
3
Article 1, Paragraph 2, then in that case the obligations of Recipient to maintain
the continuous employment of four (4) full-time personnel at the Building site shall
continue to apply. However,in the case of failure to maintain employment of four
(4) full-time employees at the Building site for a given calendar year, Recipient
shall be required to remit to the LPDC the sum of $3000, instead of $6000, as
recapture for that year.
ARTICLE II
All funds received as herein provided shall be solely for the purpose of
contributing towards Recipient in the renovation of the exterior and interior
of the building located at 508 West Main Street and for the making of associated
site and infrastructure improvements, to operate commercial office space.
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. LPDCobligation to Recipient shall not exceed $30,000.00, 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
4
terms of this Agreement, including1) LPDCfunds spent by Recipient in
contravention of this Agreement and 2) any LPDC funds previously paid to
Recipientbut 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 1, 2029.
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 Agreement 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
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, includi
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.
5
ARTICLE XI
Recipientshall adhere to all local, state, and federal laws and regulations
that may affect its actions made pursuant to this Agreement, and shall maintain in
effect during the term of this Agreement any and all federal, state, and local
licenses and permits 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
6
its understanding and agreement that if it is convicted of a violation of 8 U.S.C.
Section 1324a(f), providing for civil and/or criminal penalties for engaging in a
pattern or practice of knowingly hiring or continuing to employ unauthorized aliens,
it shall repay the amount of the public subsidy with interest, at the rate and
according to the terms of the agreement signed under Section 2264.053 of the
Government Code, not later than the 120th day after the date the city notifies the
business of the violation.
ARTICLE XIX
The Agreement embodies the complete agreement of the parties hereto,
superseding all oral or written pervious and contemporary agreements between
the Parties, which relate to matters in this Agreement.
SIGNED AND AGREED to by LPDC and Recipient on the dates indicated
below.
LA PORTE DEVELOPMENT CORPORTION
__________________________
Richard Warren, President
___________________
Date
ATTEST
___________________________
Secretary of the Corporation
Frank Nance
_________________________________
_________________________
Date
ATTEST
________________________________
7
8
REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD
AGENDA ITEM
Appropriation
Agenda Date Requested:August 22, 2022
Source of Funds:038 EDC
Requested By:Matt Daeumer, Asst. City Mgr.
Department:Administration/CMO
Account Number:Various
Amount Budgeted:N/A
ReportResolutionOrdinance
Amount Requested:
Exhibits:Proposed FY 2021-22Budget
Budgeted Item:YesNo
SUMMARY
The La Porte Development Corporation fiscal year 2022-23proposed budget has been
reviewed by the CitThe expenditure budget for next
fiscal year has been prepared with a $784,741(25%)increasefrom the current fiscal
yearbudget. This is due to decreasedtransfersto CIP than the previous yearalong
with a decrease in Special Programs. Generally, the EDC Fund transfers money to the
Debt Service Fund annually in the amount of $750,000 to $1 million. In FY 2025-26,
thistransfer will decrease to approximately $150,500 toservice debt payments.
Staff hasproposed tobudgetfor continuation of the membership in vital key
organizations within the Houston area such as Bay Area Houston Economic
Partnership (BAHEP) and Economic Alliance as well as the International Center for
Shopping Centers (ICSC). Generally, the Economic Development Coordinator attends
the Texas Municipal League (TML) and the Texas Economic Development Council
(TEDC) conference. CityCouncil has approved thecontinuation of the Harris County
Transit services provided to residents in La Porte, which is funded by LPDC. Staff has
included funding for mid-year advertising opportunities as well as funds to attend trade
shows, likethe Red River & ICSC conferences. As discussed previously with theBoard,
staff has included funding for any mid-year incentive opportunities.
The La Porte City Council had a pre-budget retreat earlier this year and asked for staff
to move forward with a list of several quality of life projects. Additionally, during the
budget preparation, staff noted several other quality of life amenities that can be
grouped together with these projects. A Total of $2,825,000for quality of life amenity
projectsand mid-year incentive opportunities is being requested to be funded by the
Board for FY 2022-23:
Golf Course Fencing Project -$475,000
Golf Course Pond Remediation -$150,000
Golf Course Land Acquisition -$350,000
Mid-year Incentive Opportunities - $400,000 (Revak Bldg)
Wave Pool Enhancements - $500,000
Recreation Center Phase II Design - $250,000
City-wide signage project Phase III - $350,000
Fairmont Park Ball Field Restroom - $350,000
Staff has provided the Board with the FY 2022-23 Proposed Budget documents, which
highlight the LPDCjected fund balance at the end of the fiscal year,
September 30, 2023 to be nearly $6.75 million, which is $618,512 less than the
projected fund balance on September 30, 2022
been working diligently to project conservative revenues and feels comfortable in the
$3,254,000 revenue projection, which includes sales tax and interest income.
Additionally, staff has provided a line-item detail of expenditures for the Board to review
for personnel services, supplies, and services & charges.
The La Porte City Council is scheduled to receive and approve the final annual budget
th
presentation at the September 12 City Council meeting. Staff is requesting the Board
approve the proposed FY 2022-23 budget for the La Porte Development Corporation.
ACTION REQUIRED BY LPDC BOARD
Presentation, discussion and possible action to approve the La Porte
Development Corporation 2022-23 Fiscal Year budget.
Approved for the La Porte Development Corporation Board meeting agenda
Corby D. Alexander, City Manager Date
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 4B Sales Tax)
$ 7,263,258
Plus Estimated 21-22 Revenues 3,004,500
Less Estimated 21-22 Expenditures and Commitments
Economic Development Operations 327,421
Capital Projects/Transfers 2,569,783
Total Expenditures 2,897,204
7,370,554
Plus 22-23 Revenues:
1/2 Cent Sales Tax 3,250,000
Interest Income 4,000
Total Revenues 3,254,000
10,624,554
Less 22-23 Expenditures:
Economic Development Operations 662,257
Debt Service Transfer 785,255
Transfer to General CIP Fund:
Signage Project Phase III 350,000
Golf Course Fence 475,000
Golf Course Pond Remediation 150,000
Wave Pool Enhancements 500,000
Recreation Center 250,000
Golf Course Land and Development 350,000
Fairmont Park - Ball Field Restroom Enhancements 350,000
Total Expenditures 3,872,512
$ 6,752,042
EstimatedProjected
2021-222022-23
Revenues$ 3,004,500$ 3,254,000
Expenditures & Commitments 2,897,204 3,872,512
Revenues over Expenditures$ 107,296$ (618,512)
*Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.
City of La Porte
La Porte Development Corporation Fund (038)
Statement of Revenues
ActualBudgetRevisedProjected
ObjectDescription2020-212021-222021-222022-23
Charges for Services:
403.02-001/2 Cent Sales Tax$ 3,368,708$ 3,000,000$ 3,000,000$ 3,250,000
Charges for Services Subtotal 3,368,708 3,000,000 3,000,000 3,250,000
Interest:
483.01-00Interest Income 3,651 9,000 4,500 4,000
Interest Subtotal 3,651 9,000 4,500 4,000
Total La Porte Development Corp Fund Revenues$ 3,372,358$ 3,009,000$ 3,004,500$ 3,254,000
Economic Development Corporation
Fiscal Year 2022-23
Economic Development Operations
ActualBudgetEstimatedRequestedPercent
2020-212021-222021-222022-23Change
Personal Services$ 34,991$ 112,036$ 32,569$ 103,508-7.61%
Supplies 34 900 150 300-66.67%
Services & Charges 1,126,963 2,974,835 2,864,485 3,768,70426.69%
Division Total$ 1,161,988 $ 3,087,771 $ 2,897,204 $ 3,872,512 25.41%
TheEconomicDevelopmentDivisionworkswiththeEconomicDevelopmentCorporationBoardtoestablishdirectionand
policesrelatedtoeconomicdevelopmentprojectsintheCity.TheDepartmentanditsactivitiesarefundedthroughthe
collectionofa1/2centsalestax,whichmustbespentoneconomicdevelopmentprojectsrelatedtocapitalinvestment,
qualityoflife,recreation,and/orprimaryjobcreation.Pastactivitieshaveincludedthere-nourishmentofSylvanBeach,the
ballfieldsatPecanPark,theCommunityLibrary,constructionofCanadaRoad,ConstructionofBayAreaBlvd.,theSports
Complex, and infrastructure improvements on Main Street.
Wewillcontinuetoworkwithourregionaleconomicdevelopmentpartnersonbusinessretentionandexpansionprograms,
smallbusinessdevelopment,marketingefforts,workforceinitiatives,transportationissuesandqualityoflifeissues.The
EconomicDevelopmentCoordinatorwillalsoserveastheBusinessOmbudsmanfortheCityofLaPorte,assistingnewand
existing businesses through the planning and zoning processes.
ApprovedApprovedApproved
2020-212021-222021-22
Economic Development Coordinator 0.75 0.75 0.75
Sr. Administrative Assistant 0.50 0.50 0.50
Total 1.25 1.25 1.25
CityofLaPorte,Texas
EconomicDevelopmentCorporation038-6030-565
DetailofExpenditures
ActualBudgetEstimatedRequested
2020-212021-222021-222022-23
PersonalServices:
1010Regular Earnings$ 16,439$ 78,071$ 14,138$ 71,381
1035Longevity 180 228 - 36
1060FICA 1,078 5,990 1,082 5,464
1065Retirement 2,250 12,747 2,302 11,627
1067PARS Retirement 44 - 48 -
1080Insurance - Medical 15,000 15,000 15,000 15,000
PersonalServicesSubtotal 34,991 112,036 32,569 103,508
Supplies:
2001Office Supplies - 200 100 200
2002Postage 34 200 50 100
2015Other Supplies - 500 - -
SuppliesSubtotal 34 900 150 300
Services&Charges:
3001Memberships & Subscriptions 20,000 41,055 41,055 41,055
3020Training/Seminars - 7,200 - 7,200
4060Technology Lease Fees 625 647 647 500
5001Accounting 5,000 5,000 5,000 5,000
5007Other Professional Services 79,500 75,500 75,500 75,500
6002Printing & Reproduction - 500 500 500
6005Advertising 9,638 10,000 22,000 10,000
6040Trade Shows - 12,500 - 10,000
9997Special Programs 45,200 252,650 150,000 408,694408,694
9004Adm Transfer to Fund 004 - 778,752 778,752 785,255
9015Adm Transfer to Fund 015 967,000 1,791,031 1,791,031 2,425,000
Services&ChargesSubtotal 1,126,963 2,974,835 2,864,485 3,768,704
DivisionTotal$1,161,988$3,087,771$2,897,204$3,872,512