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HomeMy WebLinkAbout4-24-23RICHARD 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 April 24, 2023, at the City Hall Council Chamber, 604 West Fairmont Parkway, La Porte, Texas, beginning at 5:20 pm to consider the following items of business: Remote participation is available. Attend via a screen using the link https://us02web.zoom.us/j/85498871002?pwd=bHpEdzYrYWk5WWU0VDNEdEpKQlJwQT09. Join by phone at 877-853-5257 or 888-475-4499. The meeting ID is 854 9887 1002 and the password is 938130. 1. CALL TO ORDER 2. CITIZEN COMMENT (Generally limited to five minutes per person; in accordance with state law, the time may be reduced if there is a high number of speakers or other considerations.) 3. 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 the minutes of the February 27, 2023, meeting of the La Porte Development Corporation Board of Directors. 4. AUTHORIZATIONS (a)Presentation, discussion, and possible action to approve a Mutual Recission and Release Agreement between the La Porte Development Corporation and R Favorite Things, LLC, for the purpose of terminating the Economic Development Incentive Agreement dated September 22, 2023, between the La Porte Development Corporation and R Favorite Things, LLC for 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 a reimbursement payment in an amount not to exceed $25,000.00 to the applicant, Marion (Marty) Campise, under terms of the Economic Development Incentive Agreement dated October 10, 2022, for the enhancements for his business, Main Street Entertainment and Food Park, located at 402 W. Main Street in La Porte, Texas. [Matt Daeumer, Assistant City Manager] 5. SET NEXT MEETING 6. STAFF REPORTS (a)Update on open Economic Development Manager position. 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 Government Code as set out above, the La Porte Development Corporation Board will reconvene in Open Session in order to take action, if necessary, on the items addressed during Executive Session. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (281-470-5019), two working days prior to the meeting for appropriate arrangements. Pursuant to Texas Government Code Sec. 551.127, on a regular, non-emergency basis, members may attend and participate in the meeting remotely by video conference. Should that occur, a quorum of the members will be physically present at the location noted above on this agenda. CERTIFICATE I, Lee Woodward, City Secretary, do hereby certify that a copy of the April 24, 2023, La Porte Development Corporation Board agenda was posted on the City Hall bulletin board, a place convenient and readily accessible to the general public at all times, and to the City's website, www.LaPorteTX.gov, in compliance with Chapter 551, Texas Government Code. DATE OF POSTING TIME OF POSTING TAKEN DOWN Lee Woodward Lee Woodward, City Secretary Page 1 of 2 February 27, 2023, 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 FEBRUARY 27, 2023 The City of La Porte Development Corporation Board met on Monday, February 27, 2023, 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: Danny Earp, Chuck Engelken, John Blakemore, Brent McCaulley, Amanda Gerrish, Nancy Ojeda Board members attending remotely: None Board members absent: Richard Warren Council-appointed members present: Corby Alexander, City Manager; Lee Woodward, City Secretary; Clark Askins, Assistant City Attorney CALL TO ORDER – Vice-President Ojeda 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 October 24, 2022, regular meeting of the La Porte Development Corporation Board of Directors. [Richard Warren, President] Member Engelken moved to approve the minutes of the October 24, 2022, regular meeting of the La Porte Development Corporation Board of Directors; the motion was seconded by Member McCaulley; the motion was adopted, 6-0. b. Presentation, discussion, and possible action regarding the open Economic Development Coordinator position. [Matt Daeumer, Assistant City Manager] Matt Hartlieb introduced the two candidates, Gus Fontenot and Fabio Angell, for the Board to interview. c. Receive update from administrative staff regarding Revak Building project located at 114 West Main Street, La Porte, Texas. [Matt Daeumer, Assistant City Manager] Matt Daeumer noted the Revaks had put the proposed project on hold and were working in another space, suggesting the Board may wish to void or postpone the current agreement. Mr. Daeumer confirmed the money allocated would return to the Board, if so. Page 2 of 2 February 27, 2023, La Porte Development Corporation Board of Directors Minutes 4. SET DATE FOR NEXT MEETING March 27, 2023, was set as a tentative date for the next meeting of the Board. 5. BOARD COMMENTS Hear announcements concerning matters appearing on the agenda; items of community interest; and/or inquiries of staff regarding specific factual information or existing policy from the Committee members and City staff, for which no formal action will be discussed or taken. Members thanked the applicants for attending. ADJOURN – The meeting was adjourned without objection at 5:44 p.m. ___________________________________ Lee Woodward, City Secretary REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: April 24, 2023 Requested By: Matt Daeumer, Asst. City Manager Department: Administration/CMO Report Resolution Ordinance Exhibits: Economic Development Incentive Agreement, Email from Ed Revak, Mutual Rescission and Release Agreement SUMMARY & RECOMMENDATION On June 27, 2022, the La Porte Development Corporation (LPDC) discussed the project and approved to move forward with an incentive package for this project in 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. On September 26, 2022, the LPDC held public hearing on the proposed project followed by the approval of an incentive agreement in the amount of $390,600 with R Favorite Things, LLC for the project at 114 W Main St. On October 10, 2022, the City Council approved the above incentive agreement . The first benchmark is due on January 31, 2024, and the applicants have yet to break ground on the project. I have been in contact with them on a regular basis and the development climate has changed, so they will not be moving forward with this proj ect soon. Therefore, to avoid defaulting on the agreement, the applicants have requested to set aside or void the incentive agreement. On April 11, 2023, I received an email from Mr. Revak confirming the above conversation. Staff recommends the LPDC rescind and terminate the Economic Development Incentive Agreement for the development of the Revak Building located at 114 W. Main Street in La Porte, Texas to void the agreement. ACTION REQUIRED BY CITY COUNCIL Appropriation Source of Funds: 038 – EDC Fund Account Number: 038-6030-565-9997 Amount Budgeted: Amount Requested: Budgeted Item: Yes No Presentation, discussion, and possible action to approve a Mutual Recission and Release Agreement between the La Porte Development Corporation and R Favorite Things, LLC, for the purpose of terminating the Economic Development Incentive Agreement dated September 22, 2023, between the L a Porte Development Corporation and R Favorite Things, LLC for development of the Revak Building located at 114 W. Main Street in La Porte, Texas. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date Mutual Rescission and Release Agreement This MUTUAL RESCISSION AND RELEASE AGREEMENT (“Rescission”) is made and entered into this the 24th day of April 2023, (the “Effective Date”) by and between the La Porte Development Corporation, a Type B non-profit corporation operating under authority of Texas Local Government Code Chapters 501 and 505, and R Favorite Things, LLC, a Texas limited liability company (collectively, the “Parties”). WHEREAS the Parties entered into an economic development incentive agreement dated September 22, 2022, (“Original Contract”), and authorized by the La Porte City Council on October 10, 2022, attached hereto as Exhibit A and incorporated herein by reference; WHEREAS the Parties acknowledge that R Favorite Things, LLC has advised the La Porte Development Corporation that due to changing economic conditions it will not be able to perform its duties and obligations pursuant to the terms and conditions set forth in the Original Contract; WHEREAS the Parties to the Original Contract and to this Rescission agreement hereby mutually agree to rescind and terminate the Original Contract, thereby returning the Parties to their respective positions before the Original Contract’s effective date; NOW, THEREFORE, for the reasons set forth above, and in consideration of the mutual covenants of the Parties hereto, the Parties agree as follows: 1) The Original Contract is hereby terminated and deemed null and void as of the Effective Date and neither party shall have any further rights or legal obligations thereunder. 2) The Parties release and forever discharge any and all liabilities that have arisen or may arise from the Original Contract, and the Parties waive any and all claims or right to assert any claim which has arisen or may arise from the Original Contract prior to the Effective Date of this Recission agreement. IN WITNESS WHEREOF, La Porte Development Corporation and R Favorite Things, LLC have each caused this Rescission agreement to be signed as of the Effective Date. La Porte Development Corporation ___________________________________________________ By: Richard Warren, President Date: __________________ R Favorite Things, LLC ___________________________________________________ By: ___________________________________ Date: ____________________ EXHIBIT A From:Ed Revak To:Daeumer, Matt Cc:Jody Revak Home Subject:Revak economic Agreement Date:Tuesday, April 11, 2023 6:37:20 AM Good morning Matt. This email confirms our direction to you and the city to set aside the economic development project at 114 West Main St. Due to circumstances beyond our control we are having to re- evaluate the project in its entirety and go with a different project which would impact the economic development contract anyway. We would certainly love to have the city support and know that the city will be there for us in the future. We will work to put together a new economic program asap. Thank you for your guidance. Edward Revak CSW R Favorite things Mobile 916-704-8688 Sent from my iPhone On Apr 10, 2023, at 11:40 AM, Ed Revak <edrevak@sbcglobal.net> wrote: Good morning Matt. Yes I will get on that today. Sorry got a little bit preoccupied with Jody’s parents in Louisiana. Edward Revak CSW R Favorite things Mobile 916-704-8688 Sent from my iPhone On Apr 10, 2023, at 11:14 AM, Daeumer, Matt <DaeumerM@laportetx.gov> wrote: Hi Ed, Hope you had a great Easter! I haven’t received an email from you yet asking to set aside the agreement with the Economic Development Corporation. We have a meeting scheduled on April 24, 2023. In order to get it on the agenda for that meeting, I will need the email this week. Let me know if you need anything. Thanks, 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> Please take a moment to complete the City of La Porte customer experience survey. Download the La Porte By the Bay App today! <image005.png> <image006.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.] REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: April 24, 2023 Requested By: Matt Daeumer, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: Application, Agreement, Before & After Photos, and Invoice/Payment, Affirmation of Employment SUMMARY & RECOMMENDATION On September 26, 2022, the La Porte Development Corporation Board approved an enhancement grant to Marion (Marty) Campise for enhancements to the gazebo and a beautification project for the private lot, known as Seureau Park, which is located at 402 W. Main Street in La Porte, Texas. This site was developed into the Main Street Entertainment and Food Park. The applicant was interested in clearing the lot, replacing the gazebo, covering the lot in crushed granite, installing 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 estimated a total capital investment of $50,458.00 for this project. Although the project was eligible for 50% ($25,229.00), there was a mutual agreement for a reimbursement not to exceed $25,000.00 once the project is completed. In March 2023, the applicant provided staff with invoice receipts, payments on invoice, and photos of the final project for staff and the Board to approve for reimbursement payment. Below is the summary of receipts for the sign improvements: Expenses: • Stage/Tiki Bar: $28,123.19 • Truck Pads: $3,300.00 • Landscaping: $8,500.00 • Shade Structure: $158.90 • Tables and Chairs: $10,086.97 The applicant also provided staff with a notarized statement affirming that he employs one (1) full-time employee and one (1) part-time employee, on a contract basis, for positions permanently located at the business. Appropriation Source of Funds: 015 – General CIP Enhancement Grant Account Number: 015-9892-993-1100 Amount Budgeted: $255,007.00 Amount Requested: $25,000.00 Budgeted Item: Yes No Originally, the project was estimated to cost $50,458.00 based on the quotes received with the application. However, the applicant spent well over that amount knowing that the reimbursement amount was not to exceed $25,000.00. The applicant submitted paid invoices and proof of payment totaling $50,169.06. Based on the submitted invoices and payment, and the Board’s approval of the amount not to exceed, the applicant’s reimbursable amount is $25,000.00. Staff requests the Board approve a reimbursement to Marion (Marty) Campise in the amount approved by the Board not to exceed $25,000.00 for his enhancement grant project. ACTION REQUIRED BY BOARD Presentation, discussion, and possible action to approve a reimbursement payment in an amount not to exceed $25,000.00 to the applicant, Marion (Marty) Campise, under terms of the Economic Development Incentive Agreement dated October 10, 2022, for the enhancements for his business, Main Street Entertainment and Food Park, 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 ContractorAmountContractorAmountStage/Tiki Bar Daniel Upita$6,000.00Truck Pads Dirt Worx$3,300.00Daniel Upita$2,000.00Total $3,300.00McCoys$294.00Francisco Herrera$775.00Landscaping Dirt Worx$3,500.00Jose Loera$1,562.00Dirt Worx$5,000.00Texas Plumbing Supply $215.70Total $8,500.00Daniel Gonzales$5,000.00Daniel Gonzales$2,000.00Shade Structure At Home$86.58Daniel Gonzales$5,355.00Home Depot $72.32McCoys$354.74Total $158.90McCoys$108.25McCoys$542.40Tables & Chairs At Home$3,419.04Fischers$81.11At Home$116.83Fischers$84.06At Home$4,651.81McCoys$100.65Lowes$627.61Francisco Herrera$900.00At Home$1,022.76Francisco Herrera$900.00At Home$248.92McCoys$516.10Total $10,086.97McCoys$609.25McCoys$27.54Stage/Tiki Bar$28,123.19Home Depot$558.98Truck Pads$3,300.00Home Depot$138.41Landscaping$8,500.00Total $28,123.19Shade Structure$158.90Tables & Chairs$10,086.97Total$50,169.06 ( Truck Pads ( Landscaping t \ ( ( { Shade Structure () Tables & Chairs