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HomeMy WebLinkAbout01-26-15 Meeting of the La Porte Development Corporation Board of Directors RICHARD WARREN, PRESIDENTRICHARD WARREN, PRESIDENTMIKE CLAUSEN, BOARD MEMBERMIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICEMIKE COOKSLEY, VICE--PRESIDENTPRESIDENTRANDY WOODARD, BOARD MEMBERRANDY WOODARD, BOARD MEMBER JAY MARTIN, BOARD MEMBERJAY MARTIN, BOARD MEMBERNANCY OJEDA, BOARD MEMBERNANCY OJEDA, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBERCHUCK ENGELKEN, BOARD MEMBER CITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDACITY OF LA PORTE DEVELOPMENT CORPORATION MEETING AGENDA Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on Notice is hereby given of a meeting of the City of La Porte Development Corporation to be held on January 26, 2015January 26, 2015, at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, , at the City Hall Council Chambers, 604 W. Fairmont Parkway, La Porte, Texas, beginning at 5:00 PM to consider the following items of business:beginning at 5:00 PM to consider the following items of business: 1.CALL TO ORDERCALL TO ORDER 2.AUTHORIZATIONSAUTHORIZATIONS Consider approval of minutes of the meeting of the La Porte Development Corporation Consider approval of minutes of the meeting of the La Porte Development Corporation (a) Board held on January 12, 2015 Board held on January 12, 2015 -- P. Fogarty P. Fogarty Consider approval or other action authorizing Staff to publish 60Consider approval or other action authorizing Staff to publish 60--day public notice of a public day public notice of a public (b) hearing to consider awarding an economic development grant to Gaintstein Esquire, LLC., hearing to consider awarding an economic development grant to Gaintstein Esquire, LLC., for an amount not to exceed $300,000 for an amount not to exceed $300,000 -- S. Livingston S. Livingston 3.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 4.4.STAFF REPORTSSTAFF REPORTSSTAFF REPORTSSTAFF REPORTS Receive Financial Report Receive Financial Report -- M. Dolby M. Dolby (a) 5.Board member comments regarding matters appearing on agenda; Recognition of Board member comments regarding matters appearing on agenda; Recognition of community members, city employees, and upcoming events; inquiry of staff regarding community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies.specific factual information or existing policies. 6.AdjournAdjourn The La Porte Development Corporation Board reserves the right to meet in closed session on any The La Porte Development Corporation Board reserves the right to meet in closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code (the Texas open meetings laws).of the Texas Government Code (the Texas open meetings laws). In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable accommodations for persons attending public meetings. To better serve attendees, requests should be received accommodations for persons attending public meetings. To better serve attendees, requests should be received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at 281.470.5019. CERTIFICATIONCERTIFICATION I certify that a copy of the January 26, 2015 January 26, 2015, agenda of items to be considered by the Board of the I certify that a copy of the January 26, 2015 January 26, 2015, agenda of items to be considered by the Board of the La Porte Development Corporation was placed on the City Hall Bulletin Board on January 20, 2015 .La Porte Development Corporation was placed on the City Hall Bulletin Board on January 20, 2015 .   signature heresignature here     Patrice Fogarty, City SecretaryPatrice Fogarty, City Secretary   RICHARD WARREN, PRESIDENT MIKE CLAUSEN, BOARD MEMBER MIKE COOKSLEY, VICE PRESIDENT RANDY WOODARD, BOARD MEMBER CHUCK ENGELKEN, BOARD MEMBER NANCY OJEDA, BOARD MEMBER JAY MARTIN, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF JANUARY 12, 2015 January 12, 2015, The City of La Porte Development Corporation Board met on at the City Hall Council 5:00 p.m Chambers, 604 West Fairmont Parkway, La Porte, Texas, at . to consider the following items of business: 1. CALL TO ORDER President Richard Warren called the meeting to order at 5:00 p.m. The following members of the La Porte Development Corporation Board were present: Vice-President Cooksley, Board members Clausen, Woodard, Martin, and Ojeda. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Michael Dolby, Clark Askins and Traci Leach. 2. AUTHORIZATIONS (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on November 17, 2014 P. Fogarty Board member Engelken moved to approve minutes of the meeting of the La Porte Development Corporation Board held on November 17, 2014. Vice-President Cooksley seconded. MOTION PASSED. Ayes: President Warren, Vice-President Cooksley, Board members Ojeda, Clausen, Woodard, Engelken and Martin Nays: None Absent: None 3. DISCUSSION OR OTHER ACTION (a) Consider approval or other action regarding an enhancement grant amount not to exceed $25,000.00 for Lafitte Cajun Station, to be awarded at the completion of the project S. Livingston Economic Development Coordinator Scott Livingston presented a summary, and Kelli Grabbe provided a PowerPoint Presentation. Vice-President Cooksley moved to approve an enhancement grant amount not to exceed $25,000.00 for Lafitte Cajun Station, to be awarded at the completion of the project. Board member Martin MOTION PASSED seconded. . Ayes: President Warren, Vice-President Cooksley, Board members Woodard, Clausen, Engelken and Martin Page 1 of 2 January 12, 2015, La Porte Development Corporation Board Minutes Abstain: Board member Ojeda Nays: None Absent: None 4. SET DATE FOR NEXT MEETING S. Livingston Board members set the next meeting dates for Monday, January 26, 2015, and February 9, 2015, at 5:00 p.m. 5. STAFF REPORTS (a) Receive Financial Report M. Dolby Finance Director Michael Dolby provided a report. There were no Board questions. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community 6. members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. There were no Board comments . 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. There was no executive session. 8. RECONVENE into regular session and consider action, if any, on items discussed in executive session. There was no executive session. 9. ADJOURN There being no further business, Board member Engelken moved to adjourn the meeting at 5:35 p.m. MOTION PASSED Vice-President Cooksley seconded. . Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary th Passed and approved on this 26 day of January, 2015. ____________________________________ President Richard Warren Page 2 of 2 January 12, 2015, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM January 26, 2015January 26, 2015AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Scott D. Livingston Scott D. Livingston Requested By:Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: 300,000 300,000 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Project Introduction1. Project Introduction 2. Project Presentation2. Project Presentation 3. Proposed Floor Plan3. Proposed Floor Plan 4. Project Score Card4. Project Score Card SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The principals of Gantstein Esquire, LLC are considering the option of buying and investing approximately The principals of Gantstein Esquire, LLC are considering the option of buying and investing approximately $1.2 $1.2 to the former Texans Sports Bar and Grill at 10003 Spencer Hwy.  Please note the enclosed the former Texans Sports Bar and Grill at 10003 Spencer Hwy.  Please note the enclosed millionimproveimprove project materials for additional information. project materials for additional information.  The project principals are requesting a grant in the amount of The project principals are requesting a grant in the amount of to support the re to support the re--development of the development of the $300,000$300,000 vacant building and develop a new Pipeline Grill at this location.  vacant building and develop a new Pipeline Grill at this location.   Considering the plans for this project, the estimated payback period for $300,000 is Considering the plans for this project, the estimated payback period for $300,000 is .  Please note the .  Please note the 3.56 years3.56 years enclosed Project Score Card.enclosed Project Score Card. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action authorizing staff to publish 60Consider approval or other action authorizing staff to publish 60--day public notice of a public hearing to consider day public notice of a public hearing to consider awarding an economic development grant to Gantstein Esquire, LLC for an amount not to exceed awarding an economic development grant to Gantstein Esquire, LLC for an amount not to exceed . $300,000$300,000 Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate 6 January 2015 City of La Porte Development Corporation 604 W. Fairmont Parkway La Porte, Texas 77571 Attn: Board of Directors tƩƚƦƚƭĻķ tƩƚƆĻĭƷ /ƩźƷĻƩźğ ‘ƚƩƉƭŷĻĻƷ 1.Gantstein Esquire, LLC is a commercial development company that specializes in rehabilitating underutilized commercial buildings and turning them into revenue and tax generating assets. 2.Gantstein Esquire, LLC is currently negotiating the purchase of a 9,000 square foot restaurant, formally known as and the concrete parking lot adjoining the property to the east, both located at 10003 Spencer Highway, La Porte, Texas 77571. Our goal is to finalize the purchase of the existing, vacant building and renovate the exterior and interior of the building. The current building is a pre-engineered steel building with a stucco veneer. Our goal is to renovate the exterior to a more architecturally pleasing design. We would like to install a new Texas limestone veneer to the existing stucco facades, remove the damaged wood patio covers, install new steel exterior dining patio structures with tongue and groove, stained wood roof decking and soft lighting, install outdoor televisions and exterior patio dining tables and chairs under the dining structures, remove portions of the overbearing concrete landscape planters, remove portions of the overgrown landscaping and re-landscape, remove the neon colored plastic palm trees and update the overall look of the property. The interior of the building would undergo a complete remodel to allow for a new dining lay-out, new kitchen equipment, private banquet room & private patio with seating for 75 people. This will allow for banquets, meetings and special events. 3.Gantstein Esquire, LLC would like to begin the project as soon as possible so the project can be complete by the summer of 2015. 4.Gantstein Esquire, LLC is interested in conducting business in La Porte because we feel it is a growing community that could benefit from commercial development located east of Underwood Road. We also believe the City of La Porte could benefit from our family friendly restaurant con www.pipelinegrill.com for additional information. We currently have this concept located in one of our redeveloped shopping centers in Baytown, Texas. The concept was an instant success at this location, offering American fare in an oil themed, family friendly atmosphere. The restaurant serves large portions of quality food for the value minded patron. We would also have our catering services operating within the same facility. Our catering concept delivers to both public and private entities along the ship channel, including La Porte, Deer Park, Pasadena and Houston. The overall theme and décor of the restaurant is vintage and antique oil signs, gas pumps and other oil memorabilia. Pipeline Grill is a community focused restaurant concept that would like to become a 1 be they police, fire fighters or EMS employees for their service to the community. We also offer discounts to educators to show our appreciation for the services they provide to the community as well. Pipeline Grill donates to various community activities such as little league, school supported functions and non-profit community organizations. 5.Gantstein Esquire, LLC would like to receive a $300,000 grant from the City of La Porte Development Corporation in order to assist us in redeveloping the existing building. This will allow us to update the existing 6.The current taxable value of the building is $1,103,272. This taxable value will be adjusted to the purchase price of the building which is $560,000. 7.In a short time, Gantstein Esquire, LLC will begin the renovation of the property and raise the values as stated below: A.Taxable value of equipment to be relocated: $0.00 B.Taxable value of new equipment to be purchased: $400,000 C.Taxable value of improvements to existing building: $800,000 D.Taxable value of new building construction: (Included in the above $800,000) E.Taxable inventory to be relocated /added: $0.00 F.Taxable retail sales to be added: $4,000,000 G.Taxable value of any other real property or business personal property additions: $100,000 8.Pipeline Grill will relocate 3 existing employees to the La Porte location. 9.There will be 100 new employees hired as a result of Pipeline Grill. There will be 40 new full time positions and 60 part time positions. 10.Pipeline Grill utilizes high school students for host and to go positions. There will be 15 positions for high school students. Pipeline Grill has an excellent reputation for working around the complex schedules of students. We adjust the students work schedules to fit around school activities, extracurricular school activities, family activities and church activities. All positions at Pipeline Grill are paid positions. There are no unpaid internships. When a student joins the Pipeline Grill family, they are treated with the upmost respect and paid for their contributions. 11.The employee breakdown for Pipeline Grill is as follows: a.Host: 15 employees @ $7.25 per hour b.Bussers: 8 employees @ $3.45 per hour plus tip pool c.Bartenders: 7 employees @ $2.75 per hour plus tips d.Servers: 40 employees @ 2.13 per hour plus tips e.Kitchen: 25 employees @ $9.00 to $11.00 per hour f.Managers: 5 employees @ $35,000 per year. 2 12.Gantstein Esquire, LLC is seeking the assistance from the La Porte Development Corporation in order to upgrade the existing building to allow for the opening of the Pipeline Grill concept. Without the assistance from the Development Corporation, Gantstein Esquire, LLC has two possible options. The first option would be to not finalize the purchase of the property. The second option would be acquiring the existing building and seek a commercial lease from a third party user. Gantstein Esquire would offer a small tenant improvement allowance that will allow the third party tenant a small portion of funds to help with the interior renovations only. The funds allowed will only cover a small portion of the interior work required to ready the facility for the new tenant. The funds offered would not be enough to renovate the exterior of the building. The facility could end up any number of possible commercial uses. However, we feel the best use of the building would be the Pipeline Grill restaurant concept. This use will provide the most taxable revenue and highest property value for the existing facility. Gantstein would request a grant from the Development Corporation in the amount of $300,000. I would like to personally thank the Board of Directors for their consideration in this matter. If I may be of further assistance, please contact me at your earliest convenience. Regards, Kris Gant Gantstein Esquire, LLC 3 tźƦĻƌźƓĻ DƩźƌƌ ǞǞǞ͵ƦźƦĻƌźƓĻŭƩźƌƌ͵ĭƚƒ ΛhŅŅźĭĻΜ ААЉЊЎ 9ƭƨǒźƩĻͲ \[\[/ ƉŭğƓƷЊЊθǤğŷƚƚ͵ĭƚƒ ΛCğǣΜ ЌЌЌ CƩĻĻƦƚƩƷ {ƷƩĻĻƷ IƚǒƭƷƚƓͲ Ļǣğƭ ЋЊЉЉ ЋЍЌЍ DğƓƷƭƷĻźƓ DğƓƷ ΏΏ ЍЎЉ ЍЎЎ YƩźƭ ΏΏ АЊЌАЊЌ This is an Unaudited Statement. City of La Porte La Porte Develoment Cororation (038) Fund Summar ppy (Section 4B Sales Tax) Previous ReportFY 2014-15FY 2013-14 Unaudited Beinnin Fund Balance 9/30 $ 3,322,6353,322,635$ 2,768,155$ gg Plus Year to Date Revenues: 1/2 Cent Sales Tax- - - Interest Income- 363 346 Total Revenues- 363 346 quals Total Resources 3,322,9983,322,635 2,768,501 E Less Year to Date Expenditures: Payrol 7,060- 2,373 l Supplies 1- - Services & Charges (Memberships, Training, Advertising, Legal, Utilities)- 6,903 1,007 Capital Outlay -- 6,417 * Debt Service Transfer- 90,318 79,045 Total Expenditures- 104,282 88,842 stimated Year to Date Fund Balance as o 9/30/2014 $ 3,218,7163,322,635$ 2,679,659$ Ef Commitments Project Nebula/Ineos $ 700,000 ntergul 45,000 If RobJohnsonInterests40,000 RobJohnsonInterests40,000 ichard Industrial Group 15,000 R ACT Independent Turbo Service, Inc. 426,000 ebt Service Reserve 1,083,817 D $ 2,309,817 Adusted Year to Date Fund Balance $ 908,899 j roection Throuh Year En Pjgd Adjusted Year to Date Fund Balance $ 908,899 Plus: Estimated Sales Tax 2,208,630 ess: Estimated Operational Costs (320,830) L ess: Debt Service Transfers (993,499) L ess: Capital Projects Transfers - L Projected Year End Fund Balance $ 1,803,200 ales tax revenues or Fiscal Year 2015 are estimated to be $2,208,630. (2.5% rowth over FY2014) Sfg Previousl Funded Proects (Fundin in Fund 015 - General CIP Fund) yjg BudetExpendituresBalance g District 23 Street Paving175,000 - 175,000 Façade Grants300,000 81,570 218,430 81,570475,000 393,430 Tota l *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.