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