Loading...
HomeMy WebLinkAbout6-26-23RICHARD 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 June 26, 2023, 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/84695938493?pwd=RkVpem5QUzF6NTFCTzYrZGZEL2xVZz09. Join by phone at 888-475-4499 or 877-853-5257. The meeting ID is 846 9593 8493 and the passcode is 895925. 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.AUTHORIZATIONS (a)Approve the minutes of the April 24, 2023, meeting of the La Porte Development Corporation Board of Directors. [Richard W arren, President] (b)Receive Annual Report from Economic Alliance Houston Port Region. [Matt Daeumer, Assistant City Manager] (c)Presentation, discussion, and possible action to approve the incentive payment with Frank Nance, owner of State Farm, located at 508 W Main Street in La Porte, Texas, in an amount not to exceed $15,000.00. [Matt Daeumer, Assistant City Manager] 4.SET NEXT MEETING 5.STAFF REPORTS (a)Update on Economic Development Manager. 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. 7.EXECUTIVE SESSION The La Porte Development Corporation reserves the right to meet in executive session on any agenda item should the need arise and if authorized by the Texas Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code. 8.Reconvene into open session and consider action, if any, on items discussed in executive session. 9.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 Secretary, do hereby certify that a copy of the June 26, 2023, 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 April 24, 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 APRIL 24, 2023 The City of La Porte Development Corporation Board met on Monday, April 24, 2023, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:20 p.m., with the following in attendance: Board members present: Richard Warren, Nancy Ojeda, Chuck Engelken, John Blakemore, Brent McCaulley Board members attending remotely: None Board members absent: Danny Earp, Amanda Gerrish Council-appointed members present: Corby Alexander, City Manager; Lee Woodward, City Secretary; Clark Askins, Assistant City Attorney CALL TO ORDER – President Warren called the meeting to order at 5:26 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 February 27, 2023, meeting of the La Porte Development Corporation Board of Directors. [Richard Warren, President] Member Engelken moved to approve the minutes of the February 27, 2023, regular meeting of the La Porte Development Corporation Board of Directors; the motion was seconded by Member McCaulley; the motion was adopted, 5-0. 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, 20232, 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] Member Engelken moved 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, 2022, between the La Porte Page 2 of 2 April 24, 2023, La Porte Development Corporation Board of Directors Minutes Development Corporation and R Favorite Things, LLC for development of the Revak Building located at 114 W. Main Street in La Porte, Texas; the motion was seconded by Member McCaulley; the motion was adopted, 5-0. 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] Member Engelken moved 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; the motion was seconded by Member Ojeda; the motion was adopted, 5-0. 5. SET DATE FOR NEXT MEETING May 22, 2023, was set as a tentative date for the next meeting of the Board. 6. STAFF REPORTS a. Update on open Economic Development Manager position. An update was provided by Assistant City Manager Daeumer. 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. There were no comments. ADJOURN – The meeting was adjourned without objection at 5:33 p.m. ___________________________________ Lee Woodward, City Secretary REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: June 26, 2023 Requested By: Matt Daeumer, Asst. City Manager Department: CMO Report Resolution Ordinance Exhibits: Economic Alliance Presentation SUMMARY As part of our agreement, the Economic Alliance Houston Port Region is to make an annual presentation to the Economic Development Corporation and City Council. Chad Burke with the Economic Alliance will present an update on their activities in the Port area and La Porte. RECOMMENDED MOTION No Action necessary Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date Appropriation Source of Funds: Account Number: Amount Budgeted: Amount Requested: Budgeted Item: Yes No Economic Alliance Houston Port Region La Porte Annual Report June 26, 2023 Presented By: Chad Burke President & CEO Economic Alliance Houston Port Region chad@allianceportregion.com 2 MISSION MARKET AND GROW A VIBRANT REGIONAL ECONOMY 3 FOOTPRINT ONE OF THE LARGEST, GROWTH ENGINES of economic opportunity of anywhere in the world –X’s 7! ECONOMIC DEVELOPMENT 5 6 ECONOMIC DEVELOPMENT PROVIDE PROFESSIONAL ASSISTANCE TO COMPANIES to navigate the multiple facets of the expansion process in the Houston Port region. ECONOMIC DEVELOPMENT LOCAL INVESTMENTS, WORLDWIDE IMPACTS -Securing business to invest capital and create jobs. 2022 PROJECT 750 $1.6B 100 TOTALS ECONOMIC DEVELOPMENT ANNOUNCEMENT-Securing business to invest capital and create jobs. JOBS CAP EX 60 $250M Tertiary Amine Production Plant - 5010 Underwood Former Sunoco site that sat vacant for over 10 years Basic ingredients in hair conditioners, dishwashing detergents, disinfectants and other household products PARTNER & ADVOCATE 9 Kuraray’s EVAL Plant on Bay Area Blvd needed to address the timing of CenterPoint proposed outages for equipment upgrades. Kuraray tried for several weeks to broker a meeting with CPE to discuss alternatives –no success EA elevated the conversation with contacts at CPE CPE adjusted outage/upgrade dates to synch with Kuraray’s scheduled turnaround saving the company in excess of $1.5M based on the facilitated dialogue Container Export Group - Convened 16 companies that produce, warehouse, or distribute polymers, resins and specialty chemical exports. All experiencing delays at Port Houston Surveyed the group for issue/congestion confirmation and development of solutions Findings/Solutions to be discussed with Port Houston Advisory Council of Executive Shippers (ACES) PROJECT PIPELINE – 2023 Industry Breakdown Early stages and evaluating multiple locations across the Houston Port region. Active Projects 23 Projects $6.1B Cap Ex 3,800 New Jobs 300 Retained Jobs 39% Petrochem 4% Logistics 44% Manufacturing 5% Alt Fuels 4% Corp Hdqtr 4% Real Estate Dev PORT HOUSTON ACTIVITY 11 12 #1 Busiest Exporting & Energy Port in the U.S. #1 Busiest Exporting & Energy Port in the U.S. PORT HOUSTON RECORDED ITS BEST YEAR YET IN 2022: Container volume was up 14% in ‘22). Just short of 4M TEUs at 3.9M Nearly double the volume posted six years earlier in 2016 and nearly 500k TEUs more than in 2021. PORT HOUSTON RECORD GROWTH PUBLIC POLICY Container Commodities: Imports Percent of TEU Total (’21) Container Commodities: Exports Percent of TEU Total (‘21) PORT HOUSTON CONTAINER COMMODITIES – EXPORTS & IMPORTS 61% are Consumables 60% Resins & Chemicals 16 PUBLIC POLICY 17 PUBLIC POLICY 18 ECONOMIC ALLIANCE LEADERSHIP TEAM –Deliver Federal Policy White Paper in D.C. March 2023 DC Trip 45 Members Attended 40 Meetings across 2 Days PUBLIC POLICY ECONOMIC ALLIANCE LEADERSHIP TEAM –Deliver State Policy White Paper in Austin in 2023 Economic Alliance supports the funding and completion of transportation projects impacting the movement of product and people through the state’s most vital economic corridor. •Beltway 8 Ship Channel Bridge and State Highway 225 – Funding and completion of all 8 direct connectors. •Engineer, fund and complete a direct connector from State Highway 225 to Barbour’s Cut Blvd. •Fund the San Jacinto River Bridge replacement, Cedar Bayou Crossing, and Garth Road improvements. •Grand Parkway/99 – Southeast Section; segments A, B and C. TRANSPORATION/ INFRASTRUCTURE 20 21 ECONOMIC ALLIANCE CONVENES local/state elected officials, Port Houston, petrochemical association partners and private sector members to DELIVER TXDOT A PRIORITIZED PROJECT LIST TRANSPORTATION/INFRASTRUCTURE TRANSPORTATION/INFRASTRUCTURE PRIORITY PROJECTS I-10 East Expansion/San Jacinto River Bridge SH 225 - 610 PEL Study Expansion SH 146 Expansion & Widening/Fairmont to Red Bluff Beltway 8 Bridge and Hwy 225 Direct Connectors TRANSPORTATION/INFRASTRUCTURE PRIORITY PROJECTS WORKFORCE DEVELOPMENT 24 WORKFORCE DEVELOPMENT DIRECTLY MARKET CAREER PATHS and JOB OPPORTUNITIES to address attrition, skill enhancement, and demand TO POTENTIAL JOB CANDIDATES. Leverage partnerships with EHCMA and 9 community colleges to recruit and train a qualified workforce Filling a key role with industry partners in identifying and prioritizing the high-demand, high-paying careers WORKFORCE DEVELOPMENT PREPARING THE NEXT GENERATION WORKFORCE -To close the skilled worker gap and connect economic opportunities in the Houston Port region. WORKFORCE DEVELOPMENT ACTIVITIES ‘22 QUALITY OF LIFE 27 28 QUALITY OF LIFE ECONOMIC ALLIANCE AND SAN JACINTO TEXAS HISTORIC DISTRICT PROVIDE MATCHING FUNDS for Q of L projects. INSIGHTS/THOUGHT LEADERSHIP 29 INSIGHTS/THOUGHT LEADERSHIP VITAL POINT FOR KNOWLEDGE SHARING & THOUGHT LEADERSHIP - Topics and issues relevant to industry along the Gulf Coast. KNOWLEDGE SHARING VEHICLES GULF COAST INDUSTRY FORUM ECONOMIC ALLIANCE’S LARGEST EVENT of the year bringing industry, government, and community stakeholders. Leverages the resources, experience, and network of the Houston Port region associated with Petrochemical, Maritime, and Logistics industries on the gulf coast. Thank You! www.allianceportregion.com 32 REQUEST FOR LA PORTE DEVELOPMENT CORPORATION BOARD AGENDA ITEM Agenda Date Requested: June 26, 2023 Requested By: Matt Daeumer, Asst. City Mgr. Department: Administration/CMO Report Resolution Ordinance Exhibits: Incentive Agreement, proof of payment, pictures SUMMARY & RECOMMENDATIONS On May 23, 2022, staff brought the La Porte Development Corporation Board a project in downtown La Porte. The applicant, Frank Nance, purchased the building at 508 W. Main St, which currently house his State Farm Insurance Agency. There was a need to significantly remodel and expand the structure in order to grow his business. The initial estimates put the applicant’s investment at $200,000. Staff ran the project through the EDC matrix, which indicated that this project would be eligible for a $30,000 incentive. On May 23, 2022, the La Porte Development Corporation Board discussed the project and approved to move forward with an incentive package for this project in an amount not to exceed of $30,000. As required by state law, a sixty (60) day public comment period needed to occur. The public “Notice of Proposed Project” was advertised in the Bay Area Observer on June 2, 2022 . On August 22, 2022, the La Porte Development Corporation approved the incentive agreement for 508 W. Main Street. Staff was provided documents and has validated $214,806.80 in expenses related to this project and substantial completion of the project, which meets the required 1st benchmark threshold. There is one additional benchmark to be passed in the future, which Staff will bring forward to the Board in February of 2024, as stated in the agreement. Mr. Nance made his payments in a combination of checks and financing. He submitted canceled checks and the financing confirmation to show payment. • Draw #1: o Check #1011 ▪ Amount: $13,442 • Draw #2: o Check #1015 ▪ Amount: $33,000 • Draw #3: o Check #1016 Appropriation Source of Funds: 038 – EDC Fund Account Number: 038-6030-565-9997 Amount Budgeted: $387,347.00 Amount Requested: $15,000.00 Budgeted Item: Yes No ▪ Amount: $5,000 o Check #1017 ▪ Amount: $4,575 • Draw #4: o Financed ▪ Amount: $52,635 • Draw #5: o Financed ▪ Amount: $20,541 • Draw #6: o Financed ▪ Amount: $49,448 • Draw #7: o Check #2013 ▪ Amount: $7,051.64 o Check #1019 ▪ Amount: $2.36 o Financed ▪ $21,376 • Additional Payments o Check #1060 ▪ Amount: $5,760.75 ▪ Payment made in addition to the financing. o Check #1018 ▪ Amount: $1,975 ▪ Payment made in addition to the financing. The applicant, Frank Nance, has passed his first benchmark for proof of a capital investment of at least $130,000.00 and proof of substantial completion of renovation of the building. ACTION REQUIRED BY LPDC BOARD Presentation, discussion, and possible action to approve the incentive payment with Frank Nance, owner of State Farm, located at 508 W Main Street in La Porte, Texas in an amount not to exceed $15,000.00. Approved for the La Porte Development Corporation Board meeting agenda Corby D. Alexander, City Manager Date 2 ARTICLE I In consideration of Recipient renovating the existing structure at 508 West Main Street and operating commercial office space at the subject site (“Building” herein), which proposal was considered in that certain public hearing authorizing a proposed project for the expenditure of LPDC funds for the promotion or development of new or expanded business enterprises, held before the LPDC on August 22, 2022, LPDC agrees to provide Recipient an incentive package consisting of a cash payment in a total sum not to exceed $30,000.00, to be distributed in two increments of $15,000.00 and $15,000.00 each, with each distribution conditioned on the attainment of certain performance thresholds, more specifically outlined as follows: 1) A cash incentive payment in an amount equal to $15,000.00 will be distributed to Recipient by LPDC, upon a) receipt by LPDC of proof of substantial completion of renovation of the Building and, and b) proof of minimum capital investment in the amount of $130,000.00 applied towards renovation of the Building and related infrastructure and site work. However, in no case will the $15,000.00 payment be made by LPDC if documentation substantiating 1) substantial completion of the renovation of the Building and 2) the expenditure of no less than $130,000.00 applied towards capital improvements to the Building and related infrastructure and site improvements is not delivered to and received by LPDC by July 31, 2023. In the case that proof of substantial completion of renovation of the Building and minimum capital investment of $130,000.00 applied towards capital improvements to the Building related infrastructure and site improvements is presented to LPDC on or before said July 31, 2023 deadline, the LPDC shall convene a meeting of the LPDC Board of Directors for a date no later than forty-five (45) days after receipt of proof of substantial completion of the renovation of the Building and minimum capital investment of $130,000.00 by LPDC from Recipient. Upon verification of the substantial completion of the Building and minimum capital investment of $130,000.00, as reflected by formal vote of the LPDC Board of Directors that Recipient has satisfied the requirements of this paragraph, LPDC will then remit the $15,000.00 to Recipient within a period not to exceed thirty (30) days. In the case where Recipient fails to submit proof of substantial completion of renovation of the Building and proof of a minimum capital investment in the amount of $130,000.00 by the July 31, 2023 deadline, despite therefore being disqualified for the first $15,000.00 incentive payment, Recipient will remain eligible to qualify for receipt of the second $15,000.00 incentive payment under Paragraph 2 below, in so far as the conditions precedent of permanent employment of four (4) positions required in such paragraph is met. However, in such case Recipient will remain responsible to submit proof of substantial completion of ASPENDORA CONTRACTORS, LLC We carry $2 million General Liability Insurance and Workers’ Comp Insurance 511 S. Utah La Porte, TX 77571 Cell (281)932-3128 Email: bryan@aspendora.contractors May 10 , 2023 State Farm Insurance 508 West Main Street La Porte, TX 77571 INVOICE Code Consultants for ADA and Energy Final Inspection $575.00 Sincerely, Bryan Moore