HomeMy WebLinkAbout9-27-22 La Porte Redevelopment Authority/TIRZ Packet
Agendas and Agenda Materials
Meetings of the Boards of Directors
La Porte
Redevelopment Authority
La Porte Tax Increment
Reinvestment Zone
September 27, 2022
Persons with disabilities who plan to attend this meeting and would like to request auxiliary aids or services are requested to contact the Executive
Director at (713) 595-1200 at least three business days prior to the meeting so that the appropriate arrangements can be made.
NOTICE OF JOINT MEETING OF LA PORTE REDEVELOPMENT AUTHORITY
AND THE LA PORTE TAX INCREMENT REINVESTMENT ZONE
NOTICE is hereby given of the joint meeting of the La Porte Redevelopment Authority and La Porte Tax Increment Reinvestment
Zone to be held Tuesday, September 27, 2022, at 6:30 p.m. in the City Council Chambers at City Hall, 604 West Fairmont
Parkway, La Porte, Texas, open to the public, to consider, discuss, and adopt such orders, resolu tions or motions, and take direct
actions as may be necessary, convenient, or desirable, with respect to the following matters:
AGENDA
1. Determine Quorum; and Call to Order.
2. Approve minutes of the joint La Porte Redevelopment Authority and La Porte Tax Increment Reinvestment Zone
meeting held on July 27, 2022.
3. Accept Oath of Office and Sworn Statement of newly appointed Board Members.
4. Receive update from Gauge Engineering regarding M Street Improvement project.
5. Consider the Third Amended Project Plan and Reinvestment Zone Finance Plan.
6. Consider approval or other action regarding authority invoices; and authorize adding Board Members to new bank
signature card and removing individuals from signature card no longer on Board.
7. Receive updates from the city, developers, and staff about development within the Zone.
8. Board member comments.
a. Matters appearing on agenda; and
b. Inquiry of staff regarding specific factual information or existing policy
9. Adjournment.
In compliance with the American Disabilities Act, the City of La Porte City will provide for reasonable accommodations for pe rsons attending
public meetings. To better serve attendees, requests should be received 24 hours prior to the meetings. Please cont act the City Secretary, at
281-470-5019 or TDD 281-471-5030.
A possible quorum of City Council members may be present at this meeting and participate in discussions but will take no action.
______________________________
David W. Hawes, Executive Director
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
2. Approve minutes of the joint La Porte Redevelopment Authority and La Porte Tax Increment
Reinvestment Zone meeting held on July 27, 2022.
MINUTES OF THE JOINT MEETING OF THE
LA PORTE REDEVELOPMENT AUTHORITY and
LA PORTE TAX INCREMENT REINVESTMENT ZONE
BOARD OF DIRECTORS
July 27, 2022
DETERMINE QUORUM; CALL TO ORDER.
The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, and La Porte
Tax Increment Reinvestment Zone, held a regular joint meeting, open to the public, on Wednesday,
July 27, 2022, at 6:30 p.m., in the Council Chambers of City Hall, 604 West Fairmont Parkway, La
Porte, Texas, and the roll was called of the duly appointed members of the Board, to-wit:
Peggy Antone, Secretary Position 1 Mark Goodwin Position 6
Barry Beasley Position 2 Rick Helton Position 7
Alton Porter Position 3 David Janda Position 8
Horace Leopard Position 4 Kristen Lee Position 9
Doug Martin, Chairman Position 5
and all of the above were present, with the exception of Directors Antone, Beasley, Porter, and
Leopard, thus constituting a quorum. Also present were David Hawes, Naina Magon, and Linda
Clayton, Hawes Hill & Associates, LLP; Mark B. Arnold, Hunton Andrews Kurth, LLP; Corby Alexander,
Matt Daeumer, and Haley Bower, City of La Porte; Muhammad Ali, Gauge Engineering; and Javier
Morales, J. Morales, Inc. Chairman Martin called the meeting to order at 6:31 p.m.
APPROVE MINUTES OF THE JOINT LA PORTE REDEVELOPMENT AUTHORITY AND LA PORTE
TAX INCREMENT REINVESTMENT ZONE MEETING HELD JUNE 29, 2022.
Upon a motion made by Director Goodwin, and seconded by Director Lee, the Board voted
unanimously to approve the Minutes of the June 29, 2022, joint Board meeting, as presented.
RECEIVE UPDATE AND RECOMMENDATIONS REGARDING M STREET IMPROVEMENT PROJECT.
a. Consider cancellation of award of contract and authorize value engineering and
preparation of new bid package and advertisement for bids; and
Mr. Hawes recommended canceling the award of the construction contract awarded on June 29,
2022. Mr. Arnold stated there are concerns of the scope of work, bid package, and bids received. He
reported the TIRZ/Authority is allowed by law to cancel the award of contract and rebid the project.
Mr. Alexander stated there are also concerns of the unit pricing on certain components in the bid. He
stated the City has a recent project and the unit pricing was considerably less. Mr. Alexander stated
the City is recommending to re-bid the project. Mr. Hawes reported the engineer will be paid based
on the new construction cost. There was discussion regarding including the extension to 16th Street
as an alternate add on to the bid package for future growth and development.
Upon a motion made by Director Goodwin, and seconded by Director Lee, the Board voted
unanimously to (1) cancel the award of M Street Improvement construction contract awarded on
June 29, 2022; (2) authorize value engineering; and (3) authorized preparation of a new bid package
2 | P a g e
for the M Street Improvement project, with an alternate component to extend to 16th Street and
authorized advertisement for bids.
b. Consider proposal for services relating to value engineering and preparation and
advertising of bids.
Mr. Ali reviewed Gauge Engineering Task Order for the M Street Improvement project in the amount
of $15,450.00. He went over the scope of services and answered questions. Upon a motion made by
Director Helton, and seconded by Director Janda, Directors Martin, Helton, Janda and Lee voted to
approve Gauge Engineering Task Order, as presented. Director Goodwin voted nay. The motion
passed.
CONSIDER APPROVAL OR OTHER ACTION REGARDING AUTHORITY INVOICES, INCLUDING
APPROVAL OF DEVELOPER DISBURSEMENTS FOR TAX YEAR 2021.
Ms. Magon reviewed the development reimbursements for tax year 2021, a spreadsheet is included
in the Board materials. Upon a motion made by Director Goodwin, and seconded by Director Helton,
the Board voted unanimously to approve the payment of developer disbursements (1) 65 La Porte
$288,648.62; (2) Beazer Homes Texas LP $114,834.25; (3) Senior Associates $9,781.10; (4) Jabez La
Porte $45,701.87; and (5) Hawthorne at La Porte $159,097.24.
Mr. Hawes reviewed the bookkeeper’s report and went over invoices, included in the Board
materials. He reported the County increment has not been received and usually is received in August.
Upon a motion made by Director Goodwin, and seconded by Director Helton, the Board voted
unanimously to accept the Bookkeeper’s Report and approved payment of invoices, as presented.
RECEIVE AND APPROVE FY2023 BUDGET.
Ms. Magon reviewed the proposed FY2023 Budget, included in the Board materials. Upon a motion
made by Director Lee, and seconded by Director Goodwin, the Board voted unanimously to approve
the FY2023 Budget, as presented.
RECEIVE UPDATES FROM THE CITY, DEVELOPERS, AND STAFF ABOUT DEVELOPMENT WITHIN
THE ZONE.
None.
BOARD MEMBER COMMENTS.
a. Matters appearing on Agenda; and
b. Inquiry of staff regarding specific factual information or existing policy.
Chairman Martin announced he would be resigning from the Board.
ADJOURN.
There being no further business to come before the Board, Chairman Martin adjourned the meeting
at 7:00 p.m.
___________________________________________________
Secretary
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
3. Accept Oath of Office and Sworn Statement of newly appointed Board Members.
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
4. Receive update from Gauge Engineering regarding M Street Improvement project.
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
5. Consider the Third Amended Project Plan and Reinvestment Zone Finance Plan.
REINVESTMENT ZONE NUMBER ONE
CITY OF LA PORTE, TEXAS
THIRD AMENDED
PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN
2022
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REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS
Third Amended Project Plan and Reinvestment Zone Financing Plan
Table of Contents
Introduction ..................................................................................................................................... 3
Project Plan...................................................................................................................................... 4
Reinvestment Zone Finance Plan .................................................................................................... 5
Map 1 – Proposed Boundary Expansion
Map 2 – Proposed Boundary Expansion
Map 3 – Aerial View of Property in and surrounding the Zone
Map 4 - Existing Land Use/Property Classification of Property in the Zone
Map 5 – Sylvan Beach Enclave, Final Plat
Exhibit 1 –Projected Zone Revenues, Sylvan Beach Enclave
Exhibit 2 – Boundary Description, 2022 Boundary Expansion
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Introduction
The Reinvestment Zone Number One, City of La Porte, Texas (“Zone”), was created by the City
Council of the City of La Porte, Texas (“City”) in 1999 by Ordinance No. 99-2325. City Council
subsequently approved the Project Plan and Reinvestment Zone Financing Plan. The purpose of
the tax increment reinvestment zone (the “Zone”) is to finance construction of public facilities
and infrastructure necessary to catalyze commercial and residential development and
redevelopment within the Zone boundaries.
The Original Zone covered approximately 1,362 acres and was created with the intent of
encouraging residential, retail, and light industrial uses within the Zone. At the time, the excessive
costs associated with constructing a regional detention basin and channel system and
oversized sanitary sewer lift stations, force mains and gravity collection lines in accordance
with the City’s master plan prohibited the sound growth of the municipality and impeded the
development of the area solely through private investment. A regional approach to storm
water detention was also necessary due to the inherent inefficiencies in localized detention
which decreased the amount of usable land, thus limiting the amount of taxable value within
the area.
The Zone was created as a mechanism to fund expenditures associated with the design,
construction and financing of public improvements, as well as other specific project related costs.
Developers have advanced funds on behalf of the TIRZ for design and construction of specific
public facilities, to be reimbursed through a development reimbursement agreement.
On February 10th, 2014, by Ordinance No. 2014-3509 City Council approved the First Amended
Project Plan and Finance Plan which expanded the Zone boundaries to include an additional 33
acres of land and provide for the construction of public utilities and storm water detention
facilities to accommodate development within the expanded boundaries. Since inception of the
Zone a number of public improvements have been completed including roadways, drainage,
water and sewer improvements. Residential, commercial and industrial development has
occurred, and values have increased to over $338 million.
On April 26th, 2021, by Ordinance No. 2021.3825 City Council approved the Second Amended
Project Plan and Finance Plan which extended the life of the Zone an additional five years allowing
the TIRZ to continue to accomplish the goals for which it was originally created and to allow
adequate time to fund new projects.
Third Amended Project Plan and Finance Plan
The Zone and the City now propose the Third Amendment to the Project Plan and Finance Plan
which expands the boundaries of the Zone by an additional 3.7 acres to include the proposed
Sylvan Beach Enclave development and updates the projects and project costs to support the
boundary expansion. This document constitutes the Third Amended Project Plan and
Reinvestment Zone Finance Plan as required by Chapter 311, Texas Tax Code.
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Project Plan
A. Authorized Projects and Project Costs
The project costs for the Third Amendment are detailed in Table 1. The dollar amounts
for each category are approximate and may be amended from time to time by the Board
of Directors of the Zone with approval of the City Council.
Table 1 – Estimated Project Costs (Sylvan Beach Enclave)
Land Development
Water 99,463.00
Sewer 91,099.00
Storm 103,234.20
Paving 228,106.20
Performance Bond 9,700.00
Concrete Fence 30,000.00
Cost of Land dedicated to the City of La Porte for public improvements $63,528.46
Total Land Development $625,130.86
Professional
Permits 1,100.00
Surveying/Platting 13,796.00
Environmental 4,150.00
Engineering 37,727.13
Total Professional $56,773.13
Total Land Development and Professional $681,903.99
-5-
B. Existing and Proposed Uses of Land (Texas Tax Code § 311.011(b)(1)):
The proposed boundary expansion includes approximately 3.7 acres located south of
Fairmont Parkway and east of Broadway. The site is currently vacant and is proposed to
be developed as a single-family residential development that will include 28 homes.
Surrounding land uses include residential, commercial and industrial uses. Maps 2 & 3
show existing uses and conditions within the Zone.
C. Proposed Changes of Zoning Ordinances, Master Plan of Municipality, Building Codes,
and Other Municipal Ordinances (Texas Tax Code § 311.011(b)(2)):
All construction will be done in conformance with existing building code regulations of
the City of La Porte. There are no proposed changes of any city development ordinances,
master plans, or building codes.
D. Estimated Non-Project Costs (Texas Tax Code § 311.011(b)(3)):
The project costs referenced in Table 1 are inclusive of project costs to be incurred by the
Zone only. The costs that would otherwise be project costs but are derived from other
parties, such as the City of La Porte, the Texas Department of Transportation or private
sources, are non-project costs. Non-project costs associated with this plan amendment
will include funding for public infrastructure by the developer not reimbursed by the
Zone.
E. Method of Relocating Persons to be Displaced, if any, as a result of implementing the
Plan (Texas Tax Code § 311.011(b)(4)):
There will be no persons displaced as a result of implementing the plan.
Reinvestment Zone Finance Plan
A. Estimated Project Costs (Texas Tax Code § 311.011(c)(1)):
Table 1 lists the estimated project costs for the Zone. As set forth in this Plan Amendment,
the dollar amounts are approximate and may be amended from time to time by the Board
of Directors of the Zone with approval of the City Council. The financing costs are a
function of project financing needs and will vary with market conditions from the
estimates shown in Table 1.
B. Proposed Kind, Number, and Location of all Proposed Public Works or Public
Improvements to be Financed by the Zone (Texas Tax Code § 311.011(c)(2)):
These details are described throughout the Plan, including but not limited to roadway,
water, sewer and drainage improvements. The number and location of proposed
improvements are contained in Table 1 and will be located within the expanded
boundaries as shown on Map 1.
C. Economic Feasibility (Texas Tax Code § 311.011(c)(3)):
The original plan prepared in 1999 evaluated the economic potential of the Zone. The
analysis determined that the area within the boundaries of the Zone substantially arrests
and impairs the growth of the City, slows down the provision of housing accommodations
and commercial development and constitutes an economic and social liability. At the
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time of creation, the area included in the TIRZ was predominately open and consisted of
property with defective titles and delinquent taxes. These conditions along with the
enormous cost of infrastructure improvements including drainage and sewer, impeded
the sound growth and development of the area. As a result, it was determined that the
area would benefit from a Tax Increment Reinvestment Zone, which facilitates
infrastructure improvements and projects. These improvements would facilitate
residential and commercial development in the area. The proposed boundary expansion
would further the goals of the Zone and would facilitate residential development.
Exhibit 1 constitutes incremental revenue estimates for this Plan. The incremental
revenue estimates are projected to be sufficient to cover a portion of the costs of
proposed improvements associated with the Sylvan Beach Enclave. The Zone and the City
find and determine that the Plan is economically feasible.
D. Estimated Amount of Bond Indebtedness; Estimated Time When Related Costs or
Monetary Obligations Incurred (Texas Tax Code § 311.011(c)(4), § 311.011(c)(5)):
Issuance of notes and bonds by the Zone may occur as tax increment revenues allow. The
value and timing of the issuance of notes or bonds will correlate to debt capacity as
derived from the projects and revenue schedules included in Table 1 and Exhibit 1, as
well as actual market conditions for the issue and sale of such notes and bonds.
E. Methods and Sources of Financing Project Costs and Percentage of Increment from
Taxing Units Anticipated to Contribute Tax Increment to the Zone (Texas Tax Code §
311.011(c)(6)):
Methods and sources of financing include the issuance of notes and bonds, developer
advances, as well as collaboration with the city, and other entities for grant funding and
partnerships. Tax increment will consist of contributions from the City, County and La
Porte Independent School District. The taxing entities participate at the following rates:
City of La Porte
• 100% of its tax rate in the Original and Expanded Zone
Harris County
• 75% of its tax rate in the Original Zone
La Porte ISD
• 100% of its tax rate, $0.86/100 of the ISD tax rate goes towards TIRZ projects with
the remainder going towards educational facilities. La Porte ISD only participates
in the Original Zone and participation ends in 2029
F. Current Total Appraised Value of Taxable Real Property (Texas Tax Code §
311.011(c)(7)):
The current City taxable appraised value of taxable real property in the current Zone
boundary is $408.9 million. Current taxable value of the property to be added to the Zone
is $302,188.
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G. Estimated Captured Appraised Value of Zone During Each Year of Existence (Texas Tax
Code § 311.011(c)(8)):
The estimated captured appraised value of the expanded Zone during each remaining
year of existence is contained in Exhibit 1.
H. Zone Duration (Texas Tax Code § 311.011(c)(9)):
The Zone was established by the City in 1999 and will terminate on December 31, 2034.
La Porte ISD’s participation in the Zone will end on December 31, 2029. The Zone may
terminate at an earlier time designated by subsequent ordinance, or at such time,
subsequent to the issuance of proposed revenue bonds, notes or other obligations, if any,
that all project costs, bonds, and interest on bonds have been paid in full.
Exhibit 1
Projected Zone Revenues, 2022 Boundary Expansion, Sylvan Beach
Incremental ISD Total
Tax Assessed Cumulative No Cumulative Residential Number of City Total Tax Rate Total Cumulative
Roll Residential Residential Homes No Homestead Eligible Exemption Cumulative Tax Coll.City City TIRZ For TIRZ ISD TIRZ TIRZ Revenues Tax Revenue
Jan 1 Valuation Valuation Added Homes Exemption (20%)Homes Amount Valuation Year Year Tax Rate Participation Projects Participation Available Available
2021 -$ -$ -$ 1 2021 2022 0.7100$ -$ -$ -$ -$
2022 -$ -$ 0 -$ -$ 2 2022 2023 0.7100$ -$ -$ -$ -$
2023 -$ -$ 0 0 -$ 0 -$ -$ 3 2023 2024 0.7100$ -$ -$ -$ -$
2024 3,840,000$ 3,840,000$ 16 16 (768,000)$ 0.64 (38,400)$ 3,033,600$ 4 2024 2025 0.7100$ 21,108$ -$ 21,108$ 21,108$
2025 2,880,000$ 6,720,000$ 12 28 (1,344,000)$ 1.12 (67,200)$ 5,308,800$ 5 2025 2026 0.7100$ 36,939$ -$ 36,939$ 58,046$
2026 -$ 6,820,800$ 28 (1,364,160)$ 1.12 (67,200)$ 5,389,440$ 6 2026 2027 0.7100$ 37,500$ -$ 37,500$ 95,546$
2027 -$ 6,923,112$ 28 (1,384,622)$ 1.12 (67,200)$ 5,471,290$ 7 2027 2028 0.7100$ 38,069$ -$ 38,069$ 133,615$
2028 7,026,959$ 28 (1,405,392)$ 1.12 (67,200)$ 5,554,367$ 8 2028 2029 0.7100$ 38,647$ -$ 38,647$ 172,263$
2029 7,132,363$ 28 (1,426,473)$ 1.12 (67,200)$ 5,638,690$ 9 2029 2030 0.7100$ 39,234$ -$ 39,234$ 211,497$
2030 7,239,349$ 28 (1,447,870)$ 1.12 (67,200)$ 5,724,279$ 10 2030 2031 0.7100$ 39,830$ -$ 39,830$ 251,326$
2031 7,347,939$ 28 (1,469,588)$ 1.12 (67,200)$ 5,811,151$ 11 2031 2032 0.7100$ 40,434$ -$ 40,434$ 291,760$
2032 7,458,158$ 28 (1,491,632)$ 1.12 (67,200)$ 5,899,326$ 12 2032 2033 0.7100$ 41,048$ -$ 41,048$ 332,808$
2033 7,570,030$ 28 (1,514,006)$ 1.12 (67,200)$ 5,988,824$ 13 2033 2034 0.7100$ 41,670$ -$ 41,670$ 374,478$
2034 7,683,581$ 28 (1,536,716)$ 1.12 (67,200)$ 6,079,665$ 14 2034 2035 0.7100$ 42,302$ -$ 42,302$ 416,780$
416,780$ -$ 416,780$
Note: Reflects 1.5% annual appreciation once buildout is complete
Average Home Value of $240,000
Over 65
Map 1
Proposed Boundary Expansion
Map 2
Proposed Boundary Expansion
Map 3
Zone Boundary – Aerial View
Map 4
Zone Boundary – Property Classification
Map 5
Sylvan Beach Enclave Final Plat
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
6. Consider approval or other action regarding authority invoices; and authorize adding Board
Members to new bank signature card and removing individuals from signature card no longer on
Board.
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
7. Receive updates from the city, developers, and staff about development within the Zone.
LA PORTE REDEVELOPMENT AUTHORITY,
CITY OF LA PORTE, TEXAS
AGENDA MEMORANDUM
TO: La Porte Redevelopment Authority Board of Directors
FROM: Executive Director
SUBJECT: Agenda Item Materials
LA PORTE REDEVELOPMENT AUTHORITY
c/o Hawes Hill & Associates LLP
P.O. Box 22167
Houston TX 77227-2167
713-595-1200 or FAX 281-888-6314
8. Board member comments.
a. Matters appearing on agenda; and
b. Inquiry of staff regarding specific factual information or existing policy.