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HomeMy WebLinkAbout9-26-22RICHARD WARREN, PRESIDENT DANNY EARP, BOARD MEMBER BRENT McCAULLEY, COUNCILPERSON JOHN BLAKEMORE, BOARD MEMBER AMANDA GERRISH, BOARD MEMBER NANCY OJEDA, VICE-PRESIDENT CHUCK ENGELKEN, COUNCILPERSON CITY OF LA PORTE DEVELOPMENT CORPORATION BOARD OF DIRECTORS MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Development Corporation Board of Directors to be held on September 26, 2022, 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/87672732857?pwd=M1hHYkc4MUpNamt4QllVcGw3MjRHQT09 Join by phone at 888 475 4499 or 877 853 5257. The meeting I D is 876 7273 2857. The passcode is 765324. 1.CALL TO ORDER 2.CITIZEN COMMENT (G enerally 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.CONSENT AGENDA (Approval of Consent Agenda items authorizes each to be implemented in accordance with staff recommendations provided. An item may be removed from the consent agenda and added to the Statutory Agenda for full discussion upon request by a member of the Committee present at this meeting.) (a)Approve minutes of the regular meeting of the La Porte Development Corporation Board of Directors meeting held on August 22, 2022. [Chair W arren] 4.PUBLIC HEARING AND ASSOCIATED MATTERS (a)The La Porte Development Corporation Board of Directors will hold a public hearing to receive comments on a proposed project to promote and develop new and expanded business enterprises, providing for site, infrastructure and related improvements in connection with the construction of the Revak Building at 114 W. Main Street in La Porte, to be operated as a commercial and residential facility, in an amount not to exceed $390,600.00; followed by discussion and possible action to authorize a project of the La Porte Development Corporation to promote and develop new and expanded business enterprises, providing for site, infrastructure and related improvements in connection with the construction of the Revak Building at 114 W. Main Street in La Porte, Texas, to be operated as a commercial and residential facility, and providing for a financial incentive grant in an amount not to exceed $390,600.00 to R Favorite Things, LLC. [Matt Daeumer, Assistant City Manager] 5.AUTHORIZATIONS (a)Presentation, discussion, and possible action to approve an economic development incentive agreement with R Favorite Things, LLC., applicant, in connection with project for new and expanded business enterprises, providing for site and infrastructure improvements for the development of the Revak Building, located at 114 W. Main Street in La Porte, Texas. [Matt Daeumer, Assistant City Manager] (b)Presentation, discussion and possible action to approve an enhancement grant in an amount not to exceed $25,229.00 to the applicant Marion (Marty) Campise for fencing, gazebo, stage, truck pad, landscaping and surface improvements to property located at 402 W. Main Street in La Porte, Texas, in connection with entertainment and food truck complex business [Matt Daeumer, Assistant City Manager] (c)Presentation, discussion and possible action to approve an enhancement grant in the amount not to exceed $4,600.00 to the applicant Sitarambhai D. Bhakta for facade and associated exterior improvements to the building site located at 207 W. Main Street in La Porte, Texas, operated by Mayuri Products, L L C . [Matt Daeumer, Assistant City Manager] (d)Presentation, discussion and possible action to elect a President and Vice-President for the La Porte Development Corporation Board of Directors for the fiscal year beginning October 1, 2022, and ending September 30, 2023. [Matt Daeumer, Assistant City Manager] 6.SET NEXT MEETING 7.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. 8.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 G overnment 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, C ity S ecretary, do hereby certify that a copy of the Septem ber 26, 2022, La Porte Development Corporation B oard agenda was posted on the C ity Hall bulletin board, a place convenient and readily accessible to the general public at all tim es, and to the City's website, www.LaPorteT X.gov, in com pliance 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 2 August 22, 2022, La Porte Development Corporation Board of Directors Minutes RICHARD WARREN PRESIDENT BRENT MCCAULLEY COUNCILPERSON AMANDA GERRISH 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 OF DIRECTORS MEETING OF AUGUST 22, 2022 The City of La Porte Development Corporation Board met on Monday, August 22, 2022, at the City 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, John Blakemore, Brent McCaulley, Amanda Gerrish, Nancy Ojeda Board members attending remotely: None Board members absent: None Council-appointed members present: Corby Alexander, City Manager; Sharon Harris, Deputy City Secretary; Clark Askins, Assistant City Attorney 1. CALL TO ORDER – President Warren called the meeting to order at 5:00 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 comments. 3. CONSENT AGENDA a. Approve the minutes of the July 25, 2022, regular meeting and the August 2, 2022, special meeting of the La Porte Development Corporation Board of Directors. [Chair Warren] Member Engelken moved to approve the minutes of the July 25, 2022, regular meeting and the August 2, 2022, special meeting; the motion was seconded by Member Earp; the motion was adopted, 7-0. 4. PUBLIC HEARING AND ASSOCIATED MATTERS a. The La Porte Development Corporation Board of Directors will hold a public hearing to hear comment on proposed 508 West Main Street Project - 'State Farm', a project to promote and develop new and expanded business enterprises, specifically for site, infrastructure, and related improvements in connection with the renovation and construction of facilities at 508 West Main Street, to be operated as a commercial office building, which location is legally described as Lot 20, Block 56 of Town of La Porte, in a total amount not to exceed $30,000.00; followed by discussion and possible action to authorize the following project of the La Porte Development Corporation: 508 West Main Street Project - 'State Farm’, in an amount not to exceed $30,000.00. [Matt Daeumer, Assistant City Manager] Chair Warren opened the public hearing at 5:01 p.m. There were no public comments. Chair Warren closed the public hearing at 5:08 p.m. Member Ojeda moved to authorize the following project of the La Porte Development Corporation: 508 West Main Street Project - 'State Farm’, in an amount not to exceed $30,000.00; the motion was seconded by Member Blakemore; the motion was adopted, 7-0. Page 2 of 2 August 22, 2022, La Porte Development Corporation Board of Directors Minutes 5. AUTHORIZATIONS a. Presentation, discussion, and possible action to approve an economic development incentive agreement between the La Porte Development Corporation and Frank Nance, providing incentives in a total amount not to exceed $30,000.00 for site, infrastructure and related improvements in connection with the renovation and construction of facili ties for the commercial office building located at 508 W. Main Street in La Porte, Texas [Matt Daeumer, Assistant City Manager] Member Blakemore moved to approve an economic development incentive agreement between the La Porte Development Corporation and Frank Nance, providing incentives in a total amount not to exceed $30,000.00 for site, infrastructure and related improvements in connection with the renovation and construction of facilities for the commercial office building located at 508 W. Main Street; the motion was seconded by Member Earp; the motion was adopted, 7-0. b. Presentation, discussion, and possible action to approve the La Porte Development Corporation’s proposed 2022-23 Fiscal Year budget. [Matt Daeumer, Assistant City Manager] Member Engelken moved to approve the La Porte Development Corporation’s proposed 2022 -23 Fiscal Year budget; the motion was seconded by Member McCaulley; the motion was adopted, 7- 0. 5. SET DATE FOR NEXT MEETING The next meeting date was scheduled for September 26, 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 5:15 p.m. ___________________________________ Lee Woodward, City Secretary REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: September 26, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Application, Site plan, Score Card, Incentive agreement SUMMARY On June 27, 2022, staff brought to the La Porte Development Corporation Board a project in downtown La Porte. The applicants, Ed and Jody Revak, have purchased the property at 114 W. Main St. with an appraised value of $200,000. They are interested in developing what will be known as The Revak Building. This project will consist of five retail spaces and four apartment units. The total expected cost of the project is approximately $4,000,000. Based on the score card, the applicants qualify for up to $480,600 incentives. On June 27, 2022, the La Porte Development Corporation Board discussed the project and approved to move forward with an incentive package for this project i n an amount not to exceed of $480,600. As required by state law, a sixty (60) day public comment period needed to occur. The public “Notice of Proposed Project” was advertised in the Bay Area Observer on June 30, 2022. Since this date, staff has received feedback from two (2) citizens regarding this incentive application, both positive. The application requires action by the City Council, which will occur on October 10, 2022. Staff has worked with the applicant and the City Attorney’s Office to draft a development agreement concerning the funding through an incentive project. The applicants had concerns about meeting the initial projections of thirteen (13) full -time and eighteen (18) part-time employees along with the first year gross revenue of $2,000,000. The applicants feel that three (3) full-time and twelve (12) part-time employees along with the first year gross revenue o f $1,500,000 is more realistic. The new figures were put into the matrix and the project now qualifies for an incentive grant in an amount not to exceed $390,600. Below outlines details of this draft development agreement: • Total cash incentive of $390,600 with following payment schedule: three (3) equal payments of $130,200 Appropriation Source of Funds: Special Programs Account Number: 038-6030-565-9997 Amount Budgeted: Amount Requested: Budgeted Item: Yes No o First payment of $130,200, within thirty (30) days of substantial completion of construction/ renovations, certificate of occupancy issued by the City of La Porte and proof of capital investment expenditure of no less than $4,000,000. This payment is estimated to occur around January 2024. o Second payment of $130,200 when a) an employment roster evidencing that Recipient employs a minimum of three (3) full-time and twelve (12) part-time employees at the Building site as of December 31, 2024 and b) documentation evidencing Recipient’s total taxable retail sales for the period January 1, 2024 – December 31, 2024 is equal to or greater than $1,500,000. o Third payment of $130,200 when a) an employment roster evidencing that Recipient employs a minimum of three (3) full-time and twelve (12) part- time employees at the Building site as of December 31, 2025 and b) documentation evidencing Recipient’s total taxable retail sales for the period January 1, 2025 – December 31, 2025 is equal to or greater than $1,500,000. • Claw-back provisions within the development agreement if the project doesn’t employ a minimum of three (3) full-time and twelve (12) part-time employees at the Building site each year and documentation evidencing Recipient’s total taxable retail sales is equal to or greater than $1,500,000 for each year are in the amount of $78,120 each year. • If the Recipient fails to qualify for the first payment, then recaptur e amount will $52,080 for each year. Staff requests the Board hold a public hearing to receive feedback on this incentive project that was funded by the Board for FY 2022-23. 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 Revak 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. RECOMMENDED MOTION Conduct public hearing to receive comments from the public on this project. Consider, discuss, and possible action on a financial incentive not to exceed $390,600 to R Favorite Things, LLC., applicant for development and construction of the Revak Building, located at 114 W. Main Street in La Porte, Texas. 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 Agenda Date Requested: June 27, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Application, Site plan, Score Card SUMMARY The applicants, Ed and Jody Revak have purchased the property at 114 W. Main St. with an appraised value of $200,000. They are interested in developing what will be known as The Revak Building. This project will consist of five retail spaces and four apartment units. The total expected cost of the project is approximately $4,000,000. Based on the score card, the applicants qualify for up to $480,600 incentives. The applicants plan to invest $800,000 from personal savings. They would like to request a five year, interest free loan with a single balloon payment for $3,200,000 from the La Porte Development Corporation Board. If this is not an option, based on the matrix, the applicants would like to request an incentive up to $480,600. The applicants believe this project will be the most significant Main St. development in the last 100 years and become the cornerstone of the revitalization of downtown La Porte. The applicants will operate two of the retail spaces personally. One will be the first franchise for Round Table Pi zza Royalty in the Houston area. This is a fast casual, dine in restaurant using upscale ingredients. The other will be a Wine Bar serving a small plates menu. Both the restaurant and wine bar will be operated by Ed and Jody Revak. They already have a tenant for one of the retail spaces for a well-established nail salon that is relocating back to La Porte. A similar agreement was approved by this board on June 1, 2015 for the Pipeline Grill in the amount of $300,000. Pipeline Grill has met all of their required benchmarks and has been paid in full. The restaurant continues to thrive in our community. The Revak Building project is one with more intangible value to the City than first meets the eye, specifically as a foot traffic hub on Main Street and with the proximity to the Five Points Plaza it may play a larger role than its taxable value would suggest. It follows the completion of the project at 100 W. Main for which the Board approved an incentive development agreement in the amount of $85,000 and an enhancement agreement in the amount of $50,000. This agreement resulted in a new brick building in keeping with the Historic Main Street District. The building currently houses the La Porte Bayshore Chamber of Commerce, Goodies Ice Cream and two apartment units. The Finance Department estimates that La Porte Economic Development Corporation fund balance at the end of FY2023 will $7,365,936. The budget expends approximately $3,000,000 per year and will collect revenues in the amount of $3,254,000. If the Board elects to fund the loan as described above, Appropriation Source of Funds: Special Programs Account Number: 038-6030-565-9997 Amount Budgeted: Amount Requested: Budgeted Item: Yes No it will leave a remaining fund balance of $4,165,936 and if the Board elects to fund a grant, it will leave a remaining fund balance of $6,885,336. If the Board is interested in pursuing this project, staff would suggest opening the 60 day public comment period for either the loan or grant as there would be no requirement to fund the project at the end of 60 days. RECOMMENDED MOTION Presentation, discussion, and possible action to open the 60 day public comment period for a potential project to promote new or expanded business enterprises at 114 W. Main St., La Porte, Texas, to be known as the Revak Building, through five-year loan of $3,200,000.00, or alternatively, up to a $480,6000.00 incentive payment. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date 1 City of La Porte ECONOMIC DEVELOPMENT INCENTIVES APPLICATION This application must be filed at least 60 days prior to the date the City Council considers the request. Requests for incentives 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 for voiding 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: 5/26/22 2. Company Name: R FAVORITE THING LLC 3. Current Number of Employees: N/A 4. Address: 114 W MAIN ST LA PORTE TX 77573 5. Annual Sales: -0- 6. Type of Ownership: X Corporation Partnership Proprietorship 7. Names(s) of principal owner(s), partner(s) or director of the company: ED & JODY REVAK 8. Corporate Headquarters' address: 2015 CRESCENT DR LA PORTE TX 77571 9. Corporate Telephone: JODY 916-425-7816 / ED 916-704-8688 2 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) under which business is conducted: N/A 11. Date Organization Formed: 11/11/2021 12. Please attach most recent annual report or financial statement. II. PROJECT INFORMATION 1. Type of Facility: Manufacturing Distribution Center Corporate Office or Service Center Research and Development Facility Regional Entertainment Facility X Other (please specify) RESTAURANT, WINE BAR, RETAIL SPACES & LUXURY APTS 2. Project Description: X New Construction Expansion Modernization 3. Location address of proposed project: 114 W MAIN ST LA PORTE TX 77571 4. County HARRIS 5. School District LA PORTE ISD 6. Product(s) or Service: REAL ESTATE VENTURE, RESTAURANT, WINE BAR AND RETAIL SPACES 7. Attach map and legal description of project location showing proposed improvements. ATTACHED SITE PLAN, 3D RENDERINGS & DRAWINGS 8. Please describe the proposed use and the specific nature and extent of the project: MIXED USE COMMERCIAL PROPERTY. A STRUCTURE THAT HAS RETAIL SPACES ON GROUND FLOOR, WINE BAR AND RESTAURANT. SECOND FLOOR HAS 5 LUXURY LOFTS 3 9. Please list all improvements and equipment for the project: Improvement Items Cost SEE ATTACHED DRAWINGS $4,000,000 10. Please state all sources for financing the improvements: PERSONAL FUNDING & CITY ECONOMIC DEVELOPMENT INCENTIVES AND FUNDS AND CITY ECONOMIC DEVELOPMENT FINANCING FOR THE FIRST 5 YEARS 11. Please state the time frame or projected date of start and completion: JUNE 30, 2022 – JUNE 30, 2023 12. Improvements will be completed by January 1, 2024 (specify year). 13. Please state the productive life of the proposed improvements: 100 YEARS 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 result of the project: KITCHEN EQUIPMENT, WINE BAR EQUIPMENT, TABLES, CHAIRS, DISHWARE, UNIFORMS, SIGNS, WINE INVENTORY, WINDOW TREATMENTS, ARTWORK PLUS SPEC RETAIL SPACES 4 III. ECONOMIC INFORMATION 1. Number of persons currently employed by applicant: Full Time N/A Part Time N/A Total Annual Payroll: $ N/A 2. Number of new jobs (full time equivalent) to be created/retained by the proposed improvements: Number Estimate Annual Payroll Year At Opening 22 $ 400,000 2024 At 3 years 22 $ 500,000 2027 At 5 years 26 $ 600,000 2029 3. Number of new jobs to be filled by persons residing in the City of La Porte or Harris County: Full Time 13 Part Time 18 4. Number of Peak Construction Jobs: 25 5. In the case of modernization, please estimate the economic life of the existing facility: N/A years. Added economic life after modernization: N/A 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 $ N/A Business Personal Property $ N/A 7. Amount of taxable sales currently being generated annually in the City of La Porte (if applicable): $ N/A . 8. Amount of projected taxable sales that the proposed improvements will generate: 1st year - $2M, 2nd year - $2.25M, 3rd year - $3.5M, 4th year - $2.75M, 5th year - $3M 9. In the case of application based on job retention, please describe potential job loss that would occur without economic developm ent incentives: REVITALIZATION OF OLD LA PORTE MAIN ST IS CRUICAL TO RETAIN JOBS & COMMERCE EAST OF 146. A VIBRANT MAIN ST WILL RENEW OUR CITY’S SENSE OF PLACE AND WELL BEING AND WILL BE AN ASSET TO THE ENTIRE CITY THIS WILL BE THE MOST SIGNIFICANT MAIN ST DEVELOPMENT THAT HAS OCCURRED IN 100 YEARS 5 Company Representative to be contacted: ED & JODY REVAK Name Title 2015 CRESCENT Address LA PORTE TX 77571 ED 916-704-8688 / JODY 916-425-7816 Telephone Authorized Company Official: Authorized Signature 5/26/2022 Date Printed Name Title Telephone Project Type Project's PRIORITY Value (Up to 10) 1 Project's 10 Year Tax or PILOT Revenue 2 Project's Multiplier Value (Up to 4) 3 # of New Full Time Jobs Full Time Job Avg. Value 4 Project's Existing 10 Year Incentives 5 Regression Analysis 6 Estimated Incentive Value 7 Incentive Value Allowed by Tax Abatement Policy 8 % Allowed by Tax Abatement Policy New Retail/Restaurant Dev. (Higher)A 10 $3,420,000 2 0.0 0.0 $0 342.0 $2,565,000 $355,000 50% Palais Royal A1 10 $471,000 2 16 0 $0 47.1 $353,250 $17,750 50% Retail or Restaurant Re-Development/ Blight Removal/EHG (Higher)B 9 $684,000 1 0 0 $0 30.8 $230,850 $71,000 50% Pipeline Grill B1 9 $846,628 2 100 0 $0 76.2 $571,474 $11,657 50% Fischer's Hardware B2 9 $210,500 2 8 0 $0 18.9 $142,088 $17,750 50% Quality Waterfront Development C 8 $1,532,500 2 0 0 $0 122.6 $919,500 $133,125 50% Main Street Improvements D 7 $648,500 3 0 0 $0 68.1 $510,694 $62,125 50% Bank Building Remodel D1 7 $35,500 3 8 0.1 $0 3.7 $27,956 $8,875 50% Micro-Brewery (Purchase)D2 7 $105,500 2 12 0.1 $0 7.4 $55,388 $8,875 50% Battleground Saloon D3 5 $64,730 2 15 0.075 $0 3.2 $24,274 $8,875 50% New Retail/Restaurant Dev. (Lower) - Rob Johnson/Dollar Tree E 6 $826,000 1 0 0 $0 24.8 $185,850 $106,500 50% Retail or Restaurant Re-Development/ Blight Removal/EHG (Lower)F 6 $121,000 1 0 0 $0 3.6 $27,225 $3,550 50% El Toro F1 6 $542,000 2 12 0 $0 32.5 $243,900 $35,500 50% Industry - NEW Development (Higher) - INEOS Unit #1 - $250 Million G 5 $11,182,500 4 24 0.125 $4,579,500 660.3 $4,952,250 $2,662,500 10% INEOS Unit #2 - $500 Million G1 5 $22,365,000 4 60 0.125 $9,159,000 1320.6 $9,904,500 $2,662,500 10% Project Regulate G2 5 $1,136,000 3 40 0.125 $0 85.2 $639,000 $56,800 10% La Porte Development Corporation Project Scorecard -- PRIORITIES ACT Turbo (New Industry)G3 5 $426,000 3 73 0.13 $0 32.0 $239,625 $21,300 10% NEW Office/HQ - InterGulf Corporation H 4 $142,000 4 30 0.15 $0 11.4 $85,200 $7,100 10% NEW Office/Regional - Richard Industrial Group I 4 $10,650 4 75 0.15 $0 0.9 $6,390 $1,775 10% Industry - NEW Development (Lower) - Sector 23 (Original)J 3 $568,000 4 35 0.1 $0 34.1 $255,600 $28,400 10% Sector 23 (Latest)J1 3 $1,278,000 4 72 0.1 $0 76.7 $575,100 $28,400 10% Industry - RETENTION/EXPANSION (Higher) - ACT Turbo (Expansion)K 3 $426,000 3 73 0.13 $0 19.2 $143,775 $21,300 10% Industry - RETENTION/EXPANSION (Lower)L 2 $710,000 3 15 0.075 $0 21.3 $159,750 $35,500 10% Airport Re-Development M 1 $177,500 2 30 0.1 $0 1.8 $13,313 $8,875 10% State Farm (Frank Nance)N 1 $21,655 1 3 0.1 $0 4.0 $30,000 $650 10% Revak Building O 8 $434,000 3 9 0.1 $0 52.1 $390,600 $8,875 10% Notes: 1. Staff assigned prioritized values, from a maximum of 10 to a minimum of 1, based upon his understanding of the City Council and 4B Board’s values for various types of projects. 2. The values 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/or people 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 0.075, for each type of “primary job” associated with each project type. A value of 0.15 was assigned to higher paying,white collar, 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 to unskilled 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. The formulas in this column represent staff’s best estimate using regression analysis to tie together all the columns of data. Important assumptions of the formulas are as follows: x Retail projects are five times (5x) more attractive to the community than industrial projects. For reference, please see page #6 of La Porte’s enclosed Tax Abatement Policy. x Each “project type” is not equal to every other project type. Therefore, each project type’s priority value is included in the formula. x The value of incentives that a project is already scheduled to receive, and is shown in the “Project's Existing 10 Year Incentives”, must be deducted from the total tax/PILOT revenue that the project is expected to generate, which is shown in “Project's 10 Year Tax or PILOT Revenue“. x Each project’s value to create a “multiplier effect” on our local economy should be included. See the values listed un der “Project's Multiplier Value (Up to 4)"above. x Each value in the column for “Regression Analysis” is divided by 1 million to make the values under “Regression Analysi s”smaller, more manageable, and easier to compare. The two (2) basic formulas used in “Regression Analysis” are as follows: (a) For all Retail, Restaurant, Re-Development, and Waterfront Projects , “Project's PRIORITY Value (Up to 10)” x 5 times “Project's 10 Year Tax or PILOT Revenue” –“Project's Existing 10 Year Incentives”times “Project's Multiplier Value (Up to 4)”divided by 1 million. (b) For all Industry and Office Projects,“Project's PRIORITY Value (Up to 10)” x 1 times “Project's 10 Year Tax or PILOT Revenue” –“Project's Existing 10 Year Incentives”times “Project's Multiplier Value (Up to 4)”divided by 1 million. 7. The values in this column are simply the value from the column called “Regression Analysis” times $7,500. by 1 million. 7. The values in this column are simply the value from the column called “Regression Analysis” times $7,500. 8. Data in this column shows the value of incentive recommended for each project type, according to the La Porte’s current Tax Abatement Policy. Projects identified in dark green text represent projects that have either already been awarded an incentive grant, or staff has good estimates for the project s.All other projects are completely "hypothetical". A. Hypothetical -$20 million retail/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 million project 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 million with $5 million in annual retail sales. D. Hypothetical -$3.5 million with $2 million in 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 -$2 million investment with 30 white collar, higher paying, full time jobs. I. Richard Industrial 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 investment and 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/investment with 30 skilled, full time jobs. N. State Farm -June 2022, $130,000 expansion. 2 New Full time jobs. O.Revak Building -Summer 2022, $4,000,000. 18 New full time jobs. From:Woodward, Lee To:Daeumer, Matt Cc:CSO - Staff Subject:Re: Public Notice - 114 W. Main St. Date:Thursday, June 30, 2022 10:29:16 AM Attachments:image.png Good morning! The below ran this morning. Lee From: Daeumer, Matt <DaeumerM@laportetx.gov> Sent: Tuesday, June 28, 2022 12:42 PM To: Rebecca Collins <editor@bayareaobserver.com> Cc: CSO - Staff <CSOStaff@laportetx.gov>; Kizzee, Julius <kizzeej@laportetx.gov> Subject: RE: Public Notice - 114 W. Main St. Hi Rebecca, It looks good. Thanks so much! Matt From: Rebecca Collins [mailto:editor@bayareaobserver.com] Sent: Tuesday, June 28, 2022 10:18 AM To: Daeumer, Matt <DaeumerM@laportetx.gov> Cc: CSO - Staff <CSOStaff@laportetx.gov>; Kizzee, Julius <kizzeej@laportetx.gov> Subject: Re: Public Notice - 114 W. Main St. Good morning, Here's a proof. I can get your notice in this weeks paper. Please let em know if it looks ok to print. I’ll get you an affidavit asap. Rebecca Collins Bay Area Observer P.O. Box 82 La Porte, TX. 77572 281-907-3140 editor@bayareaobserver.com On Jun 28, 2022, at 10:02 AM, Daeumer, Matt <DaeumerM@laportetx.gov> wrote: 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, Matt <image001.png> Matt Daeumer, MS, CPM| Assistant City Manager 604 W. Fairmont| La Porte, TX 77571 O. 281-470-5012 | C. 281-898-0273 website | map | email | <image002.png> <image003.png> <image004.png> [Confidentiality Notice: This email communication may contain private, confidential, or legally privileged information intended for the sole use of the designated and/or duly authorized recipient(s). If you are not the intended recipient or have received this email in error, please notify the sender immediately by email or contact 281-470-5012 and permanently delete all copies of this email including all attachments without reading them. If you are the intended recipient, secure the contents in a manner that conforms to all applicable state and/or federal requirements related to privacy and confidentiality of such information.] <60 day notice LPDC project 114 West Main.docx> From:Alexander, Corby To:Daeumer, Matt Subject:FW: Main Street project grant proposal Date:Monday, July 11, 2022 8:45:36 AM -----Original Message----- From: Glynda Oliver [mailto:oliverglynda@att.net] Sent: Friday, July 8, 2022 2:11 PM To: Alexander, Corby <AlexanderC@laportetx.gov> Subject: Main Street project grant proposal Good afternoon Mr. Alexander. I was excited to read the headlines of The Bay Area Observer. If I can be of any help to move this along, email me. We love our city and this looks to be a move in the right direction for the citizens of LaPorte. Respectfully, Glynda Oliver Sent from my iPhone From:Alexander, Corby To:Daeumer, Matt Subject:FW: Revamp project Date:Tuesday, July 12, 2022 9:31:35 AM From: Bentley, Bill Sent: Tuesday, July 12, 2022 9:06 AM To: Alexander, Corby <AlexanderC@laportetx.gov> Subject: Revamp project I think that this is a wonderful idea. And it emphasizes, in my mind, that improvements on West Main St are going to be driven by investors and entrepreneurs willing to put some “skin in the game.” It is good that there is some participation by the city but not enough to ensure the ultimate success of the project. Get Outlook for iOS 1 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION AND R FAVORITE THINGS, LLC, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS THIS AGREEMENT made by and entered into this 26th day of September 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 “LPDC”, and R Favorite Things, LLC, a Texas Limited Liability Company, hereinafter referred to as “Recipient”. 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 domestic limited liability company which currently owns a 93,750 square foot vacant lot located at 114 West Main Street, La Porte, Texas, and at which site Recipient and Recipient’s members, subsidiaries, or commonly controlled entities (collectively “Affiliates”) wish to develop and utilize what is known as the Revak Building for commercial and residential use; and WHEREAS, Recipient wishes to construct the Revak Building located at 114 West Main Street, and make associated infrastructure, site and related improvements, for the purpose of operating five (5) mixed use commercial spaces on the first level and four (4) residential spaces on the second level, which would 1) result in the expenditure by Recipient and/or its Affiliates of an estimated $4,000,000.00 in capital improvements, 2) between Recipient, its Affiliates, and their respective tenants located at the Revak Building, employ an estimated fifteen (15) employees, at least three (3) of which will be full-time employees, and 3) generate approximately $1,500,000.00 in annual gross retail sales; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of development of the property at 114 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 2 of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: ARTICLE I In consideration of Recipient and/or its Affiliates developing the Revak Building at 114 West Main Street and operating mixed use commercial and residential space at the subject site (“Building” herein), which proposal was considered in that certain public hearing in connection with 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 September 26, 2022, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $390,600.00, to be distributed in three (3) increments of $130,200.00 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 $130,200.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of the Building b) Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and, and c) proof of minimum capital investment in the amount of $4,000,000.00 applied towards construction of the Building and related infrastructure and site work. However, in no case will the $130,200.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the construction of the Building, 2) Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and 3) the expenditure of no less than $4,000,000.00 applied towards capital improvements for the Building and related infrastructure and site improvements is not delivered to and received by LPDC by January 31, 2024. In the case that proof of substantial completion of the Building, Certificate of Occupancy issued by the City of La Porte and minimum capital investment of $4,000,000.00 applied towards capital improvements for the Building and related infrastructure and site improvements is presented to LPDC on or before said January 31, 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 substantial completion of the construction of the Building, Certificate of Occupancy issued by the City of La Porte, and minimum capital investment of $4,000,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and minimum capital investment of $4,000,000.00, 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. 3 In the case where Recipient fails to submit proof of substantial completion of construction of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and proof of a minimum capital investment in the amount of $4,000,000.00 by the January 31, 2024 deadline, despite being disqualified for the first $130,200.00 incentive payment, Recipient will remain eligible to qualify for receipt of the second $130,200.00 incentive payment under Paragraph 2 below and the third $130,200.00 incentive payment under Paragraph 3 below, if the Employment Criteria and Sales Tax Criteria (as those terms are described in paragraph 2 below) are met. However, in such case Recipient will remain responsible to submit proof of substantial completion of construction of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and minimum capital investment in the amount of $4,000,000.00 in order to qualify for the second incentive payment outlined in Paragraph 2 below and the third incentive payment outlined in Paragraph 3 below. 2) A cash incentive payment in an amount equal to $130,200.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing that Recipient, its Affiliates, or a third party tenant of Recipient or its Affiliates collectively employ a minimum of fifteen (15) employees, of which, at least three (3) will be full-time employees at the Building site (the “Employment Criteria”) as of December 31, 2024 and b) documentation evidencing Recipient’s, its Affiliates’, and their respective third party tenants’ combined aggregate taxable retail sales is equal to or greater than $1,500,000.00 (the “Sales Tax Criteria”) for the period January 1, 2024 through December 31, 2024. However, in no case will the $130,200.00 payment be made by LPDC if proof of the Employment Criteria as of December 31, 2024, and documentation evidencing the Sales Tax Criteria for the period January 1, 2024 through December 31, 2024 is not delivered to and received by LPDC by January 31, 2025. Proof of the Employment Criteria, for purposes of this agreement, may be satisfied by submission to LPDC by the said January 31, 2025 deadline of a) copies of Recipient’s, its Affiliates’, and their respective third party tenants’ 941 Reports to the Internal Revenue Service and C3 Reports 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 at least fifteen (15) employees, at least three (3) of which are full-time employees, are employed in positions permanently located at the Building site. In the case that proof of the Employment Criteria and documentation evidencing the Sales Tax Criteria for the period January 1, 2024, through December 31, 2024, is presented to LPDC on or before said January 31, 2025, deadline, the LPDC 4 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. 3) A cash incentive payment in an amount equal to $130,200.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing satisfaction of the Employment Criteria as of December 31, 2025, and b) documentation evidencing satisfaction of the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025. However, in no case will the $130,200.00 payment be made by LPDC if proof of the Employment Criteria as of December 31, 2025, and documentation evidencing the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025, is not delivered to and received by LPDC by January 31, 2026. Proof of employment, for purposes of this agreement, may be satisfied by submission to LPDC by the said January 31, 2026 deadline of a) copies of Recipient’s, its Affiliates’, and their respective third party tenants’ 941 Reports to the Internal Revenue Service and C3 Reports 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 at least fifteen (15) employees, at least three (3) of which are full - time employees, are employed in positions permanently located at the Building site. In the case that proof of the Employment Criteria and documentation evidencing the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025, is presented to LPDC on or before said January 31, 2026, 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. In the event that Recipient qualifies for both $130,200.00 incentive installment payments based upon proof of satisfaction of the Employment Criteria and the Sales Tax Criteria pursuant to Article 1, Paragraph 2 and Paragraph 3, above, then in such case Recipient shall be required to prove the Employment Criteria for a continuous five (5) year period. At the conclusion of each calendar year during such five (5) year period, beginning on December 31, 2026, through and including December 31, 2030, Recipient shall be required to submit to the LPDC proof of the Employment Criteria, in the manner required under Article 1, Paragraph 2 and Paragraph 3, above. Should Recipient fail to provide proof of the Employment Criteria at the end of a calendar year, then for that year Recipient shall be 5 responsible for remitting to the LPDC the sum of $78,120.00, representing recapture of one-fifth (1/5) out of the previously awarded $390,600.00 incentive paid under this Agreement. However, in the instance that Recipient provides proof of the Employment Criteria at the end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $78,120.00 recapture for that year. If Recipient fails to qualify for the $130,200.00 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of both $130,200.00 payments under Article 1, Paragraph 2 and Paragraph 3, then in that case the obligations of Recipient to maintain the Employment Criteria shall continue to apply. However, in the case of failure to maintain the Employment Criteria for a given calendar year, Recipient shall be required to remit to the LPDC the sum of $52,080.00, instead of $78,120.00, as recapture for that year. If Recipient fails to qualify for the $130,200.00 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of only one of the two $130,200.00 payments under Article 1, Paragraph 2 and Paragraph 3, the n in that case the obligations of Recipient to maintain the Employment Criteria shall continue to apply. However, in the case of failure to maintain the Employment Criteria for a given calendar year, Recipient shall be required to remit to the LPDC the sum of $26,040.00, instead of $78,120.00, as recapture for that year. ARTICLE II All funds received as herein provided shall be solely for the purpose of contributing towards Recipient’s costs in the construction of the exterior and interior of the building located at 114 West Main Street and for the making of associated site and infrastructure improvements, to operate mixed use commercial space and residential 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. LPDC’s obligation to Recipient shall not exceed $390,600.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV 6 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 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 December 31, 2030. 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 Recipient’s duties or responsibilities hereunder be considered an officer, agent, servant, or employee of the LPDC. 7 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 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 8 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 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 9 R Favorite Thing, LLC, a Texas Domestic Limited Liability Company By: _________________________________ _________________________ Date ATTEST ________________________________ REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: September 26, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Development Agreement SUMMARY On June 27, 2022, staff brought to the La Porte Development Corporation Board a project in downtown La Porte. The applicants, Ed and Jody Revak have purchased the property at 114 W. Main St. with an appraised value of $200,000. They are interested in developing what will be known as The Revak Building. This project will consist of five retail spaces and four apartment units. The total expected cost of the project is approximately $4,000,000. Based on the score card, the applicants qualify for up to $480,600 incentives. On June 27, 2022, the La Porte Development Corporation Board discussed the project and approved to move forward with an incentive package for this project i n an amount not to exceed of $480,600. As required by state law, a sixty (60) day public comment period needed to occur. The public “Notice of Proposed Project” was advertised in the Bay Area Observer on June 30, 2022. Since this date, staff has received feedback from two (2) citizens regarding this incentive application, both positive. The application requires action by the City Council, which will occur on October 10, 2022. Staff has worked with the applicant and the City Attorney’s Office to draft a development agreement concerning the funding through an incentive project. The applicants had concerns about meeting the initial projections of thirteen (13) full -time and eighteen (18) part-time employees along with the first year gross revenue of $2,000,000. The applicants feel that three (3) full-time and twelve (12) part-time employees along with the first year gross revenue of $1,500,000 is more realistic. The new figures were put into the matrix and the project now qualifies for an incentive grant in an amount not to exceed $390,600. Below outlines details of this draft development agreement: • Total cash incentive of $390,600 with following payment schedule: three (3) equal payments of $130,200 Appropriation Source of Funds: Special Programs Account Number: 038-6030-565-9997 Amount Budgeted: Amount Requested: Budgeted Item: Yes No o First payment of $130,200, within thirty (30) days of substantial completion of construction/ renovations, certificate of occupancy issued by the City of La Porte and proof of capital investment expenditure of no less than $4,000,000. This payment is estimated to occur around January 2024. o Second payment of $130,200 when a) an employment roster evidencing that Recipient employs a minimum of three (3) full-time and twelve (12) part-time employees at the Building site as of December 31, 2024 and b) documentation evidencing Recipient’s total taxable retail sales for the period January 1, 2024 – December 31, 2024 is equal to or greater than $1,500,000. o Third payment of $130,200 when a) an employment roster evidencing that Recipient employs a minimum of three (3) full-time and twelve (12) part- time employees at the Building site as of December 31, 2025 and b) documentation evidencing Recipient’s total taxable retail sales for the period January 1, 2025 – December 31, 2025 is equal to or greater than $1,500,000. • Claw-back provisions within the development agreement if the project doesn’t employ a minimum of three (3) full-time and twelve (12) part-time employees at the Building site each year and documentation evidencing Recipient’s total taxable retail sales is equal to or greater than $1,500,000 for each year are in the amount of $78,120 each year. • If the Recipient fails to qualify for the first payment, then recapture amount will $52,080 for each year. 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 for the project. RECOMMENDED MOTION Presentation, discussion, and possible action to approve a Development Agreement for 114 W. Main St., La Porte, Texas, a financial incentive not to exceed $390,600 to R Favorite Things, LLC., applicant for development and construction of the Revak Building, located at 114 W. Main Street in La Porte, Texas. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date 1 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE LA PORTE DEVELOPMENT COPRPORATION AND R FAVORITE THINGS, LLC, FOR USE OF TYPE B DEVELOPMENT CORPORATION SALES TAX FUNDS THIS AGREEMENT made by and entered into this 26th day of September 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 “LPDC”, and R Favorite Things, LLC, a Texas Limited Liability Company, hereinafter referred to as “Recipient”. 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 domestic limited liability company which currently owns a 93,750 square foot vacant lot located at 114 West Main Street, La Porte, Texas, and at which site Recipient and Recipient’s members, subsidiaries, or commonly controlled entities (collectively “Affiliates”) wish to develop and utilize what is known as the Revak Building for commercial and residential use; and WHEREAS, Recipient wishes to construct the Revak Building located at 114 West Main Street, and make associated infrastructure, site and related improvements, for the purpose of operating five (5) mixed use commercial spaces on the first level and four (4) residential spaces on the second level, which would 1) result in the expenditure by Recipient and/or its Affiliates of an estimated $4,000,000.00 in capital improvements, 2) between Recipient, its Affiliates, and their respective tenants located at the Revak Building, employ an estimated fifteen (15) employees, at least three (3) of which will be full-time employees, and 3) generate approximately $1,500,000.00 in annual gross retail sales; and WHEREAS, Recipient has requested that LPDC provide financial incentives to Recipient to contribute towards the cost of development of the property at 114 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 2 of the parties hereof, as well as to the citizens of the City of La Porte, Texas, the parties have agreed and do hereby agree as follows: ARTICLE I In consideration of Recipient and/or its Affiliates developing the Revak Building at 114 West Main Street and operating mixed use commercial and residential space at the subject site (“Building” herein), which proposal was considered in that certain public hearing in connection with 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 September 26, 2022, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $390,600.00, to be distributed in three (3) increments of $130,200.00 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 $130,200.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of the Building b) Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and, and c) proof of minimum capital investment in the amount of $4,000,000.00 applied towards construction of the Building and related infrastructure and site work. However, in no case will the $130,200.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the construction of the Building, 2) Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and 3) the expenditure of no less than $4,000,000.00 applied towards capital improvements for the Building and related infrastructure and site improvements is not delivered to and received by LPDC by January 31, 2024. In the case that proof of substantial completion of the Building, Certificate of Occupancy issued by the City of La Porte and minimum capital investment of $4,000,000.00 applied towards capital improvements for the Building and related infrastructure and site improvements is presented to LPDC on or before said January 31, 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 substantial completion of the construction of the Building, Certificate of Occupancy issued by the City of La Porte, and minimum capital investment of $4,000,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and minimum capital investment of $4,000,000.00, 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. 3 In the case where Recipient fails to submit proof of substantial completion of construction of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and proof of a minimum capital investment in the amount of $4,000,000.00 by the January 31, 2024 deadline, despite being disqualified for the first $130,200.00 incentive payment, Recipient will remain eligible to qualify for receipt of the second $130,200.00 incentive payment under Paragraph 2 below and the third $130,200.00 incentive payment under Paragraph 3 below, if the Employment Criteria and Sales Tax Criteria (as those terms are described in paragraph 2 below) are met. However, in such case Recipient will remain responsible to submit proof of substantial completion of construction of the Building, Certificate of Occupancy issued by the City of La Porte to Recipient and/or one of its Affiliates and minimum capital investment in the amount of $4,000,000.00 in order to qualify for the second incentive payment outlined in Paragraph 2 below and the third incentive payment outlined in Paragraph 3 below. 2) A cash incentive payment in an amount equal to $130,200.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing that Recipient, its Affiliates, or a third party tenant of Recipient or its Affiliates collectively employ a minimum of fifteen (15) employees, of which, at least three (3) will be full-time employees at the Building site (the “Employment Criteria”) as of December 31, 2024 and b) documentation evidencing Recipient’s, its Affiliates’, and their respective third party tenants’ combined aggregate taxable retail sales is equal to or greater than $1,500,000.00 (the “Sales Tax Criteria”) for the period January 1, 2024 through December 31, 2024. However, in no case will the $130,200.00 payment be made by LPDC if proof of the Employment Criteria as of December 31, 2024, and documentation evidencing the Sales Tax Criteria for the period January 1, 2024 through December 31, 2024 is not delivered to and received by LPDC by January 31, 2025. Proof of the Employment Criteria, for purposes of this agreement, may be satisfied by submission to LPDC by the said January 31, 2025 deadline of a) copies of Recipient’s, its Affiliates’, and their respective third party tenants’ 941 Reports to the Internal Revenue Service and C3 Reports 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 at least fifteen (15) employees, at least three (3) of which are full-time employees, are employed in positions permanently located at the Building site. In the case that proof of the Employment Criteria and documentation evidencing the Sales Tax Criteria for the period January 1, 2024, through December 31, 2024, is presented to LPDC on or before said January 31, 2025, deadline, the LPDC 4 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. 3) A cash incentive payment in an amount equal to $130,200.00 will be distributed to Recipient by LPDC upon delivery to the LPDC of a) an employment roster evidencing satisfaction of the Employment Criteria as of December 31, 2025, and b) documentation evidencing satisfaction of the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025. However, in no case will the $130,200.00 payment be made by LPDC if proof of the Employment Criteria as of December 31, 2025, and documentation evidencing the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025, is not delivered to and received by LPDC by January 31, 2026. Proof of employment, for purposes of this agreement, may be satisfied by submission to LPDC by the said January 31, 2026 deadline of a) copies of Recipient’s, its Affiliates’, and their respective third party tenants’ 941 Reports to the Internal Revenue Service and C3 Reports 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 at least fifteen (15) employees, at least three (3) of which are full - time employees, are employed in positions permanently located at the Building site. In the case that proof of the Employment Criteria and documentation evidencing the Sales Tax Criteria for the period January 1, 2025, through December 31, 2025, is presented to LPDC on or before said January 31, 2026, 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 $130,200.00 to Recipient within a period not to exceed thirty (30) days. In the event that Recipient qualifies for both $130,200.00 incentive installment payments based upon proof of satisfaction of the Employment Criteria and the Sales Tax Criteria pursuant to Article 1, Paragraph 2 and Paragraph 3, above, then in such case Recipient shall be required to prove the Employment Criteria for a continuous five (5) year period. At the conclusion of each calendar year during such five (5) year period, beginning on December 31, 2026, through and including December 31, 2030, Recipient shall be required to submit to the LPDC proof of the Employment Criteria, in the manner required under Article 1, Paragraph 2 and Paragraph 3, above. Should Recipient fail to provide proof of the Employment Criteria at the end of a calendar year, then for that year Recipient shall be 5 responsible for remitting to the LPDC the sum of $78,120.00, representing recapture of one-fifth (1/5) out of the previously awarded $390,600.00 incentive paid under this Agreement. However, in the instance that Recipient provides proof of the Employment Criteria at the end of a calendar year, Recipient shall be relieved from the obligation to remit to the LPDC $78,120.00 recapture for that year. If Recipient fails to qualify for the $130,200.00 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of both $130,200.00 payments under Article 1, Paragraph 2 and Paragraph 3, then in that case the obligations of Recipient to maintain the Employment Criteria shall continue to apply. However, in the case of failure to maintain the Employment Criteria for a given calendar year, Recipient shall be required to remit to the LPDC the sum of $52,080.00, instead of $78,120.00, as recapture for that year. If Recipient fails to qualify for the $130,200.00 incentive installment provided for in Article I, Paragraph 1 but qualifies for payment of only one of the two $130,200.00 payments under Article 1, Paragraph 2 and Paragraph 3, the n in that case the obligations of Recipient to maintain the Employment Criteria shall continue to apply. However, in the case of failure to maintain the Employment Criteria for a given calendar year, Recipient shall be required to remit to the LPDC the sum of $26,040.00, instead of $78,120.00, as recapture for that year. ARTICLE II All funds received as herein provided shall be solely for the purpose of contributing towards Recipient’s costs in the construction of the exterior and interior of the building located at 114 West Main Street and for the making of associated site and infrastructure improvements, to operate mixed use commercial space and residential 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. LPDC’s obligation to Recipient shall not exceed $390,600.00, nor shall LPDC be obligated to reimburse Recipient for requests delivered to LPDC after the termination of this Agreement. ARTICLE IV 6 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 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 December 31, 2030. 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 Recipient’s duties or responsibilities hereunder be considered an officer, agent, servant, or employee of the LPDC. 7 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 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 8 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 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 9 R Favorite Thing, LLC, a Texas Domestic Limited Liability Company By: _________________________________ _________________________ Date ATTEST ________________________________ REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: September 26, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Application packet, vendor quotes, photos and site plan SUMMARY & RECOMMENDATION In fiscal year 2009-10, the La Porte Development Corporation Board approved the Enhancement Grant Program; since its inception the Board has budgeted $507,669. To-date, a total of $252,662 has been disbursed to applicants for past approved and completed enhancement grant projects. Additionally, the Board has no pending enhancement grant projects to be disbursed. Therefore, the Board has an available fund balance for future enhancement grant p roject in the amount of $255,007. On August 15, 2022, staff received an Enhancement Grant application from Marion (Marty) Campise for improvements to the gazebo and a beatification project for the private lot, known as Seureau Park, which is located at 402 W. Main Street in La Porte, Texas. This site will be developed as the Main Street Entertainment and Food Park. Currently, there is a gazebo on the lot that appears to be ready to fall down and unsafe. There is brush overgrown on the North and East side of the lot. The applicant is interested clearing the lot and replacing the gazebo. He further plans cover the lot in crushed granite, install a stage, two large screen projection televisions, improved lighting, tables and chairs, 4 ft. tall wood fence, landscaping and pads for three (3) food trucks on site. The applicant has provided the required bids for the fencing, gazebo, stage, truck pads, landscaping and crushed granite, with at least one bid from a local (La Porte) vendor. Below are the results of his bid: • Aspendora Contractors, LLC (La Porte) - $34,520.00 • All American - $27,300.00 • Rhino Dirt Worx - $28,050.00 Appropriation Source of Funds: 015 – General CIP Enhancement Grant Account Number: 015-9892-993-1100 Amount Budgeted: $255,007 Amount Requested: $25,229.14 Budgeted Item: Yes No He also intends to install a shade structure for $10,495.00, lighting at $1,569.00 and tables and chairs at 11,093.00. The applicant’s total eligible investment is $50,458.00 and based on the lowest provided quotes. Therefore, staff estimates that the reimbursable amount would be 50% of the capital investment to be at $25,229.00. Staff has provided documentation related to the project and the applicant will be in attendance at the meeting to respond to any questions or concerns on this project. This project has more intrinsic value as a beautification project along with the potential to create additional foot traffic and entertainment opportunities in the Historic Main Street District. This project demonstrates a significant impro vement over the existing situation, the project will add to the beautification of the City of La Porte, the project will enhance the City of La Porte’s appeal to new businesses and visitors and the project will add value to the City of La Porte. The applicant applied for an incentive grant on January 29, 2020 for 100 W. Main St. and a presentation of the incentive grant application along with an enhancement grant was brought to the Board on February 4, 2020. The applicant has fulfilled the previous incentive grant and enhancement grant requirements and has been paid in full for the project. The applicant has met the requirements of the Enhancement Grant application; therefore, staff recommends the Board approve this enhancement grant application fo r a reimbursable amount not to exceed $25,229.00. ACTION REQUIRED BY BOARD Presentation, discussion and possible action to approve an enhancement grant in the amount not to exceed $25,229.00 to the applicant, Marion (Marty) Campise for the enhancements for his business, Main Street Entertainment and Food Park, which is located at 402 W. Main Street in La Porte, Texas. 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 Agenda Date Requested: September 26, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Application packet, vendor quotes, photos, and site plan SUMMARY & RECOMMENDATION In fiscal year 2009-10, the La Porte Development Corporation Board approved the Enhancement Grant Program; since its inception the Board has budgeted $507,669. To-date, a total of $252,662 has been disbursed to applicants for past approved and completed enhancement grant projects. Additionally, the Board has no pending enhancement grant projects to be disbursed. Therefore, the Board has an available fund balance for future enhancement grant project in the amount of $255,007. On August 15, 2022, staff received an Enhancement Grant application from Sitarambhai D. Bhakta for improvements to the Mayuri Products LLC business façade and awning, which is located at 207 W. Main Street in La Porte, Texas. The applicant is interested in removing and replacing the existing front door, fixing a metal sheet wall in the back of the building, removing the existing siding and replacing with hardy plank, installing a 3’x30’ metal awning, and replacing the gutters. As mentioned, the building is located at 207 W. Main Street, which is just west of the Main Street and Broadway Street intersection. The applicant estimates a total capital investment of $9,800 for this project, of which 50% ($4,600) is eligible for reimbursement once the project is completed. The applicant has provided the required bids with at least one bid from a local (La Porte) vendor. Below are the results of his bid: • Gomez Contracting (La Porte) - $23,050.00 • Texas FSG LLC (Pasadena) - $12,700.00 • DanVM Remodeling and Construction (Houston) - $9,800 Based on the submitted quotes, the lowest bidder is DanVM Remodeling and Construction at a bid amount of $9,800. Therefore, staff estimates that the reimbursable amount would be 50% of the quote at $4,600. Staff has provided documentation related Appropriation Source of Funds: 015 – General CIP Enhancement Grant Account Number: 015-9892-993-1100 Amount Budgeted: $255,007 Amount Requested: $4,600 Budgeted Item: Yes No to the project and the applicant will be in attendance at the meeting to respond to any questions or concerns on this project. The applicant has met the requirements of the Enhancement Grant application; therefore, staff recommends the Board approve this Enhancement Grant application for a reimbursable amount not to exceed $4,600. ACTION REQUIRED BY BOARD Presentation, discussion and possible action to approve an enhancement grant in the amount not to exceed $4,600 to the applicant, Sitarambhai D. Bhakta for the enhancements for his business, Mayuri Products LLC, which is located at 207 W. Main Street in La Porte, Texas. 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 Agenda Date Requested: September 26, 2022 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Bylaws for the Corporation SUMMARY & RECOMMENDATION According to Section 3.02 of the Bylaws for the La Porte Development Corporation, the Board is required to elect a President and Vice-President for the next fiscal year by October 1st. The current President is Richard Warren and the current Vice -President is Nancy Ojeda. Staff recommends the Board elect a President and Vice-President for the fiscal year beginning October 1, 2022 and ending September 30, 2023. ACTION REQUIRED BY THE BOARD 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, 2022 and ending September 30, 2023. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date Appropriation Source of Funds: N/A Account Number: N/A Amount Budgeted: N/A Amount Requested: N/A Budgeted Item: Yes No