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HomeMy WebLinkAbout02-23-15 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 February 23, 2015February 23, 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 February 9, 2015 Board held on February 9, 2015 -- P. Fogarty P. Fogarty Consider approval or other action authorizing staff to execute payment in the amount of Consider approval or other action authorizing staff to execute payment in the amount of (b) $9,338.94 to Ronda Stockton, owner of And Sew It Began $9,338.94 to Ronda Stockton, owner of And Sew It Began -- S. Livingston S. Livingston 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 (c) hearing to consider awarding an economic development grant to the owners of Fischer's Do hearing to consider awarding an economic development grant to the owners of Fischer's Do It Best Hardware for an amount not to exceed $350,000 It Best Hardware for an amount not to exceed $350,000 -- S. Livingston S. Livingston 3.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 4.STAFF 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 February 23, 2015, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the February 23, 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 February 18, 2015.Corporation was placed on the City Hall Bulletin Board on February 18, 2015.        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 FEBRUARY 9, 2015 February 9, 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 5:02 p.m. The following members of the La Porte Development Corporation Board were present: Vice-President Cooksley, Board members Martin, Clausen, Engelken and Ojeda. Absent: Board member Woodard. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Michael Dolby and Clark Askins. ( 2. CONSENT AGENDA All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately.) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on January 26, 2015 P. Fogarty Board member Engelken moved to approve minutes of the meeting of La Porte Development MOTION PASSED Corporation Board held on January 26, 2015. Vice-President Cooksley seconded. . Ayes: President Warren, Vice-President Cooksley, Board members Ojeda, Clausen, Engelken and Martin Nays: None Absent: Board member Woodard (b) Consider approval or other action regarding an enhancement grant amount not to exceed $25,000.00 to Eagle Energy Resources, LLC, new owner of the Alamo Building located at 153 South Broadway, to be awarded at the completion of the project S. Livingston Economic Development Coordinator Scott Livingston provided a summary; and President/CEO, Doug Shows of Eagle Energy Resources, LLC, provided information on the nature of the business. Mr. Shows informed a proposed move-in date for April 1, 2015. Page 1 of 3 February 9, 2015, La Porte Development Corporation Board Minutes Board member Martin moved to approve an enhancement grant amount not to exceed $25,000.00 to Eagle Energy Resources, LLC, new owner of the Alamo Building located at 153 South Broadway, to be awarded at the completion of the project. Board member Clausen MOTION PASSED seconded. . Ayes: President Warren, Board members Ojeda, Clausen, Engelken and Martin Nays: None Abstain: Vice-President Cooksley Absent: Board member Woodard (c) Consider approval or other action regarding revisions to Section 5.04 of the La Porte Development Corporation By-Laws and recommending La Porte City Council authorize the revisions S. Livingston Economic Development Coordinator Scott Livingston provided a summary. Board member Ojeda moved to approve revisions to Section 5.04 of the La Porte Development Corporation By-Laws and recommending La Porte City Council authorize the revisions. Vice-President MOTION PASSED Cooksley seconded. . Ayes: President Warren, Vice-President Cooksley, Board members Ojeda, Clausen, Engelken and Martin Nays: None Absent: Woodard 3. SET DATE FOR NEXT MEETING S. Livingston Board members set the next meeting dates for Monday, February 23, 2015, at 5:00 p.m. and Monday, March 9, 2015, at 5:00 p.m. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community 4. members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. President Warren reminded Board members that the 2015 Real Estate Conference (ReCon 2015) of the International Council of Shopping Centers (ICSC) will be held from May 17-20, 2015, in Las Vegas, Nevada. 5. 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, including, but not limited to, the following: Texas Government Code, Section 551.087(2) Deliberation regarding Economic Development negotiations. Meet with staff of Development Corporation Board and City of La Porte to deliberate offer of financial or other incentives to business prospect, in connection with Sector 23 Project. Texas Government Code, Section 551.072(2) Consultation with Attorney Consultation with attorney for Development Corporation Board regarding Sector 23 Project. Page 2 of 3 February 9, 2015, La Porte Development Corporation Board Minutes Board members recessed the La Porte Development Corporation Board meeting to convene an executive session at 5:24 p.m. to m eet with staff of Development Corporation Board and City of La Porte to deliberate offer of financial or other incentives to business prospect, in connection with Sector 23 Project and attorney for Development Corporation Board regarding Sector 23 Project. consult with 6. RECONVENE into regular session and consider action, if any, on items discussed in executive session. Board members reconvened into the La Porte Development Corporation Board meeting at 6:00 p.m. Regarding Texas Government Code, Section 551.087(2): Deliberation regarding Economic Development negotiations. Board member Engelken moved to rescind the Sector 23 Project. Vice-President Cooksley seconded. MOTION PASSED . Ayes: President Warren, Vice-President Cooksley, Board members Ojeda, Clausen, Engelken and Martin Nays: None Absent: Woodard 7. ADJOURN There being no further business, President Warren moved to adjourn the meeting at 6:00 p.m. Board MOTION PASSED member Martin seconded. . Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary rd Passed and approved on this 23 day of February, 2015. ____________________________________ President Richard Warren Page 3 of 3 February 9, 2015, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM February 23, 2015February 23, 2015AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: CIP 0159892993 CIP 0159892993 Scott D. Livingston Scott D. Livingston Source of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Economic Development/Tourism Economic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: 9338.94 9338.94 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Applicants Original Enhancement Grant 1. Applicants Original Enhancement Grant ApplicationApplication 2. Project Cost Summary2. Project Cost Summary 3. Receipts and Checks with Highlights3. Receipts and Checks with Highlights 4. Presentation4. Presentation--AFTERAFTER SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Ronda Stockton has completed each of the five (5) projects that the 4B Board approved on 17 November 2014 for Ronda Stockton has completed each of the five (5) projects that the 4B Board approved on 17 November 2014 for an amount not to exceed $9,392.98.  She has submitted paid receipts and copies of cancelled checks for all the an amount not to exceed $9,392.98.  She has submitted paid receipts and copies of cancelled checks for all the completed projects.  According to the terms of the enhancement grant program, Ronda is eligible to receive a 50% completed projects.  According to the terms of the enhancement grant program, Ronda is eligible to receive a 50% reimbursement for all prereimbursement for all pre--approved project expenses in the amount of $9,338.94 as follows:approved project expenses in the amount of $9,338.94 as follows:  Windows                                                        $3,150.55 Windows                                                        $3,150.55 Fencing                                                          $   655.00Fencing                                                          $   655.00 Landscaping                                                  $3,269.70Landscaping                                                  $3,269.70Landscaping                                                  $3,269.70Landscaping                                                  $3,269.70 Irrigation                                                       $1,100.00Irrigation                                                       $1,100.00 Lighting                                                         $1,163.69Lighting                                                         $1,163.69  Please note the enclosed excel spreadsheet called  Please note the enclosed excel spreadsheet called ““Cost SummaryCost Summary””for additional details. for additional details.   The sum requested for reimbursement is $54.04 less than the not to exceed, authorized amount because of the  The sum requested for reimbursement is $54.04 less than the not to exceed, authorized amount because of the following reasons:following reasons: The original bids submitted for The original bids submitted for ““fencesfences””and and ““windowswindows””did not show whether or not sales tax had been did not show whether or not sales tax had been included in the estimates.included in the estimates. Staff added the applicable sales tax to these two bids to ensure the applicant would receive credit for Staff added the applicable sales tax to these two bids to ensure the applicant would receive credit for possible sales tax due on each project.possible sales tax due on each project. The final invoices were equal to the original estimates.  Therefore, it appears that sales tax was included in The final invoices were equal to the original estimates.  Therefore, it appears that sales tax was included in the original estimates.the original estimates. The applicant paid less for The applicant paid less for ““fencesfences””and and ““windowswindows””than what staff anticipated, so the 4B Boardthan what staff anticipated, so the 4B Board’’s s contribution for these two (2) items also decreases.contribution for these two (2) items also decreases. The applicant will attend the meeting to give a presentation regarding the completed project and address any The applicant will attend the meeting to give a presentation regarding the completed project and address any questions that you might have about the project. questions that you might have about the project.  Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action to authorize staff to execute payment in the amount of Consider approval or other action to authorize staff to execute payment in the amount of to Ronda to Ronda $9,338.94$9,338.94 Stockton, owner of Stockton, owner of ““And Sew It BeganAnd Sew It Began””.. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate From: Randall Bradshaw <bradsrandall@aol.com> Date: October 1, 2014 at 9:01:32 PM CDT Ronda926@comcast.net" <Ronda926@comcast.net> To: " Subject: Landscape quote for 211 S 1st Ronda, Based on our meeting last week this is the quote I came with: Remove all existing landscape except for the yellow bells on side by drive way. $ 150.00 Design new beds with 10 yds of soil mix and 3 yds of mulch. $ 780.00 Border all beds including new red oak and existing crepe myrtle with moss rock incorporating irregular boulders to break up consistency. (See pic) $ 1,200.00 Install 4 accent boulders to top of beds. $ 500.00 Line bottom of house with 6" bender board to hold beds in place. $ 400.00 (Tree) $ 1,200.00 1-100 gal red oak (Plants) $ 4,865.00 1-15 gal patio tree bougainvillea 3-30 gal pyramid Japanese yews. (See pic) 1- 30 gal patio tree Hanna ray bottlebrush 1- Plant on a lattice to go against chimney. Rangoon,Carolina jasmine or similar evergreen plant. 55- 5 gal various evergreen plants 18- 1 gal various evergreen plants 20- flats of fall/winter color Repair lawn where it was damaged from tree removal. $ 100.00 Install automatic irrigation system with automatic rain sensor for all of front and back lawn,beds and trees. Includes all necessary permits. $ 4,050.00 Install an 11 (Commercial grade) LED lighting system to accent home, focal plants and trees. Includes automatic timer and all 12 gauge wiring. $ 2,150.00 Sub total $ 15,395.00 Tax $ 1,270.09 Total $ 16,665.09 Thank you Bradshaw Landscaping 271-541-5745 18096 Kings Row Suite G Houston, TX 77058 281-335-8316 Decorativepoolsinc.com DATE: November 2, 2014 BID PROPOSAL FOR: NAME:Ronda st ADDRESS:211 south 1street CITY & ZIP:La Porte TX 77571 SCOPE OF WORK: Landscape per plan$5,107.81 : $5,10781 . Demo new bed areas and dispose of off site. Build beds approximately 6” above grade with flowerbed mix(7yards). Plants will be installed as specified on the plan. All plants will receive slow release fertilizer. Bed areas will be topped with shredded hardwood mulch (black) approximately 2” deep(3.5yards). Tree will be staked. Chop stoneor moss rockwill be leveled on top of stabilized sandaround perimeter of beds 6” Bender board to retain beds off house. Change Orders: $757.61 -100g Shumardi Red Oak installed $757.61 $673.98 -(4) moss accent boulders installed(3’L x 3’W x 1.5’ T) $673.98 $2,519.65 -Low voltage lighting $2,519.65 (11) rs uplights with 3 watt led bulbs (1) 300 watt fx transformer with timer and photo cell 10g wire and grease packs for all connections $9,059.05 Total: Note: all prices include sales tax WARRANTY INFORMATION: three months All container plants are guaranteed for a period of from the date of installation, with automatic irrigation, excluding annuals, the effects of fire, vandalism, freeze, drought, storms, or any other extreme act of nature. No guarantee on sod or transplanted plants. All other work carries a one-year warranty on materials and labor. 1 PAYMENT SCHEDULE: 50% deposit at contract signing with the remaining 50% balance due upon completion of all approved work. _____________________ HOMEOWNER SIGNATURE OF ACCEPTANCE:__________________ :________________________________________ DECORATIVE POOLS REPRESENATIVE This proposal may be withdrawn if not accepted within 30 days. 2 . The amount to be reimbursed is $54.04 less that the authorized amount. 101112 789 "Grant Offer NTE" means that the value of the grant offer for this portion of the work is "Not to Exceed" the shown amount. Although the actual amount paid was $19,533.71, the lowest bid, including sales tax, was $6,539.40. Half of $6,539.40 is Amount to be show sales tax in their bid. Therefore, staff added sales tax to the show sales tax in their bid. Therefore, staff added sales tax to the $6,301.10 bid, divided the show sales tax in their bid. Therefore, staff added sales tax to the $2,150.00 bid, divided the Reimbursed $3,150.55$3,269.70$1,100.00$1,163.69$9,338.94 is the summation of $3,150.55 + $655.00 + $3,269.70 + $1,100.00 + $1,163.69. The Board $655.00 show sales tax in their bid. Therefore, staff added sales tax to the $1,310 bid, divided the "Irrigation" was included and paid with the landscaping for the amount of $19,533.71. However, the lowest bid for "Lighting" was included and paid with the landscaping for the amount of $19,533.71. However, the lowest bid for "irrigation" was $2,200, including sales tax. Therefore, the maximum amount that the 4B Board offered to pay for Included in "Landscaping"Included in "Landscaping" Amount Paid for Completed Work Identifies differences between the anticipated and final project costs. $19,533.71 $6,301.10$1,310.00 . . $3,269.70$1,100.00 . The lowest bidder included sales tax in their bid, so half of the bid was The lowest bidder included sales tax in their bid, so half of the bid was 123456 Grant Offer NTE $3,410.47$3,269.70$1,100.00$1,163.69 $709.04 $1,163.69 . $3,150.55 . $655 $9,392.98 bid, divided the total amount by half, and calculated not The actual amount paid was $6,301.10, so half is The actual amount paid was $1,310.00, so half is "lighting" was $2,150.00. The lowest bidder did .. Original Lowest Bid $3,410.47$1,163.69 . authorized a reimbursement to not exceed $709.04 $6,301.10$1,310.00$6,539.40$2,200.00$2,150.00 total amount by half, and calculated total amount by half, and calculated total amount by half, and calculated .$9,338.94 notnotnot $1,100.00 The lowest bidder did The lowest bidder did The lowest bidder did Total Amount to be Reimbursed: This amount of "irrigation" was . $3,269.70 Landscaping 12 10 11 Windows 2 3 4 5 6 7 8 9 Irrigation 1 Notes: Lighting Fencing And Sew it Began Street; La Porte, Texas Bed & Breakfast www.andsewitbegan.com st 211 S. 1 BEFORE AFTER REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM February 23, 2015February 23, 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: 350,000 350,000 Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Project Introduction1. Project Introduction 2. Project Presentation2. Project Presentation 3. Construction Bids3. Construction Bids 4. Project Score Card4. Project Score Card SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The owners of FischerThe owners of Fischer’’s Do It Best Hardware are proposing to invest approximately s Do It Best Hardware are proposing to invest approximately toto to $700,000 $700,000 $800,000 $800,000 expand and improve their business on the northwest corner of W. Fairmont Parkway and S. Broadway.  As a expand and improve their business on the northwest corner of W. Fairmont Parkway and S. Broadway.  As a direct result of the direct result of the and and of Fischer of Fischer’’s Hardware, the project principals anticipate that s Hardware, the project principals anticipate that expansionexpansionimprovementimprovement their taxable retail sales may increase by as much as 20%.  their taxable retail sales may increase by as much as 20%.   The project principals are requesting an economic development grant in the amount of The project principals are requesting an economic development grant in the amount of to totally to totally $350,000$350,000 remodel the exterior of the building and provide an updated appearance by completing the following projects:   remodel the exterior of the building and provide an updated appearance by completing the following projects:     Remove the existing metal fascia on the entire perimeter of the building,Remove the existing metal fascia on the entire perimeter of the building,Remove the existing metal fascia on the entire perimeter of the building,Remove the existing metal fascia on the entire perimeter of the building, Install a new framework and new stucco fascia panels,Install a new framework and new stucco fascia panels, Remove the awning from the southwest side of the building,Remove the awning from the southwest side of the building, Install kneewall stone fascia,Install kneewall stone fascia, Install a black wrought iron fence,Install a black wrought iron fence, Add paint and signage to the new structuresAdd paint and signage to the new structures Reseal and restripe the parking lot,Reseal and restripe the parking lot, Repaint the pole sign and add new graphic signage.Repaint the pole sign and add new graphic signage.  (Note:  Work on the parking lot and pole sign are  (Note:  Work on the parking lot and pole sign are included in any of the bids.) included in any of the bids.) notnot  Staff proposes that the range of consideration for a grant award should be between a minimum of  Staff proposes that the range of consideration for a grant award should be between a minimum of and a maximum of and a maximum of for the following reasons: for the following reasons: $200,000$200,000$350,000$350,000 is approximately is approximately of the total project cost.  of the total project cost.  $200,000$200,00025%25% is approximately is approximately of the total project cost. of the total project cost. $350,000$350,00050%50% is the range, which staff supports for projects like Gantstein Esquire, LLC (aka is the range, which staff supports for projects like Gantstein Esquire, LLC (aka ““Pipeline GrillPipeline Grill”), 25 - 50% 50% Fischer’s Hardware, the cost to res Hardware, the cost to re--tenant the former Kroger building, and the cost to improve each of the tenant the former Kroger building, and the cost to improve each of the remaining shopping centers on the corners of W. Fairmont and S. Broadway. remaining shopping centers on the corners of W. Fairmont and S. Broadway.  A grant payment of A grant payment of yields a payback period of approximately yields a payback period of approximately . .  $200,000$200,00012.44 years12.44 years A grant payment of A grant payment of yields a payback period of approximately yields a payback period of approximately .. $275,000$275,00017.10 years17.10 years A grant payment of A grant payment of yields a payback period of approximately yields a payback period of approximately .. $350,000$350,00021.77 years21.77 years  Please note the enclosed Project Score Card for additional details and a comparison of this proposed project with Please note the enclosed Project Score Card for additional details and a comparison of this proposed project with other projects that have received an economic development award.  other projects that have received an economic development award.   Other factors of value that characterize this proposed project include:   Other factors of value that characterize this proposed project include:     Redevelopment and beautification of a prime corner in town,Redevelopment and beautification of a prime corner in town, Opportunity to encourage local business expansion,Opportunity to encourage local business expansion, Locally owned business with deep roots in in La Porte, andLocally owned business with deep roots in in La Porte, and Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte.Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte.Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte.Opportunity to encourage the ongoing viability of this business anchor at a prime location in La Porte.  Current and Anticipated Cash PositionCurrent and Anticipated Cash Position Cash in Hand                                                              (See the Monthly Financial Report)Cash in Hand                                                              (See the Monthly Financial Report) Refund from INEOS                                                   (Expected to be $700,000; pending)Refund from INEOS                                                   (Expected to be $700,000; pending) Anticipated Cash in Hand at Year End                      (See the Monthly Financial Report Anticipated Cash in Hand at Year End                      (See the Monthly Financial Report and add $700,000)and add $700,000) Current Projects in the PipelineCurrent Projects in the Pipeline Pipeline Grill                                                                           -- $300,000 (est.) $300,000 (est.) Fischer’s Hardware                                                                         TBDs Hardware                                                                         TBD Former Kroger                                                                TBD (est. 9 March 2015) Former Kroger                                                                TBD (est. 9 March 2015) Micro-Brewery                                                                                TBDBrewery                                                                                TBD 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 the owners of Fischerawarding an economic development grant to the owners of Fischer’’s Do It Best Hardware for an amount not to s Do It Best Hardware for an amount not to exceed . . $350,000$350,000 Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate Proposed Project Criteria tƌĻğƭĻ ƦƩƚǝźķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭ źƓŅƚƩƒğƷźƚƓ Ʒƚ Scott D. Livingston ğƷ \[źǝźƓŭƭƷƚƓ{θƌğƦƚƩƷĻƷǣ͵ŭƚǝ ğƷ ƌĻğƭƷ ƷŷƩĻĻ ΛЌΜ ǞĻĻƉƭ źƓ ğķǝğƓĭĻ ƚŅ ƷŷĻ ƦƌğƓƓĻķ ƒĻĻƷźƓŭ ķğƷĻ ǞźƷŷ ƷŷĻ .ƚğƩķ ƚŅ 5źƩĻĭƷƚƩƭ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓʹ Њ͵‘ŷƚ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻͪ ‘ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ķƚͪ Fischers Hardware is in the business of retail sales providing product and services to La Porte and surrounding areas. Ћ͵‘ŷğƷ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ tƌĻğƭĻ ĻǣƦƌğźƓ ƷŷĻ ƭĭƚƦĻ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭ͵ tƌĻğƭĻ ƭǒĬƒźƷ ğ ƭźƷĻ ƦƌğƓͲ ĻƌĻǝğƷźƚƓ ƩĻƓķĻƩźƓŭΛƭΜͲ ƦźĭƷǒƩĻƭͲ ğƓķΉƚƩ ğ ķĻƷğźƌĻķ ǝĻƩĬğƌ ķĻƭĭƩźƦƷźƚƓ ƚŅ ƷŷĻ ķĻƭźƩĻķ ƦƩƚƆĻĭƷ ǞźƷŷ Ʒŷźƭ ŅƚƩƒ͵ Fischers Hardware wishes to totally remodel the exterior of the building and provide an updated appearance by completing the following projects: Remove the existing metal fascia on the entire perimeter of the building, Install a new framework and new stucco fascia panels, Remove the awning from the southwest side of the building, Install kneewall stone fascia, Install a black wrought iron fence, Add paint and signage to the new structures Reseal and restripe the parking lot, Repaint the pole sign and add new graphic signage. (Note: Work on the parking lot and pole sign are not included in any of the bids.) Ќ͵‘ŷĻƩĻ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ķƚ ĬǒƭźƓĻƭƭ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware will operate in its current location. Ѝ͵‘ŷĻƓ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƭƷğƩƷ ğƓķ ŅźƓźƭŷ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware would like to start the project as soon as possible and have the project completed within six months. Ў͵‘ŷǤ źƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓƷĻƩĻƭƷĻķ źƓ ĭƚƓķǒĭƷźƓŭ ĬǒƭźƓĻƭƭ Ʒƚ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware has been serving the community for 35 years and would like to continue with a new look and new products to better serve customers. Џ͵IƚǞ Ǟƚǒƌķ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ƌźƉĻ Ʒƚ ƩĻĭĻźǝĻ ğƭƭźƭƷğƓĭĻ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ğƭƭźƭƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ źƓ ƒğƉźƓŭ ğ ŅźƩƒ ĭƚƒƒźƷƒĻƓƷ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware would like to receive assistance from the 4B Board to complete the proposed project in a minimal amount of time. We would like to request funds to make the transition. А͵‘ŷğƷ ğƩĻ ƷŷĻ ĻƭƷźƒğƷĻķ ЋЉЊЌ ƷğǣğĬƌĻ ǝğƌǒĻƭ ƚŅ ƷŷĻ ĻǣźƭƷźƓŭ ƦƩƚƦĻƩƷǤΛźĻƭΜ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƌƚĭğƷźƚƓ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ The taxable value of Fischers Hardware is 1.4 million. Б͵‘ŷğƷ źƭ ƷŷĻ ĻƭƷźƒğƷĻķ ƷğǣğĬƌĻ ǝğƌǒĻ Ʒƚ ĬĻ ğķķĻķ źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ĭƚƒƦƌĻƷźƓŭ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͪ ŷźƭ Ǟƚǒƌķ źƓĭƌǒķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭʹ The estimated taxable value increase of the proposed project will be 15% to 20%. This includes sales tax revenue. ğǣğĬƌĻ ǝğƌǒĻ ƚŅ ĻƨǒźƦƒĻƓƷ Ʒƚ ĬĻ ƩĻƌƚĭğƷĻķͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ ƓĻǞ ĻƨǒźƦƒĻƓƷ Ʒƚ ĬĻ ƦǒƩĭŷğƭĻķͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ źƒƦƩƚǝĻƒĻƓƷƭ Ʒƚ ĻǣźƭƷźƓŭ ĬǒźƌķźƓŭƭͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ ƓĻǞ ĬǒźƌķźƓŭ ĭƚƓƭƷƩǒĭƷźƚƓͪ o ğǣğĬƌĻ źƓǝĻƓƷƚƩǤ Ʒƚ ĬĻ ƩĻΏƌƚĭğƷĻķΉğķķĻķͪ o ğǣğĬƌĻ ƩĻƷğźƌ ƭğƌĻƭ Ʒƚ ĬĻ ğķķĻķͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ ğƓǤ ƚƷŷĻƩ ƩĻğƌ ƦƩƚƦĻƩƷǤ ƚƩ ĬǒƭźƓĻƭƭ ƦĻƩƭƚƓğƌ ƦƩƚƦĻƩƷǤ ğķķźƷźƚƓƭͪ o В͵IƚǞ ƒğƓǤ ĻǣźƭƷźƓŭ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ƩĻΏƌƚĭğƷĻķ Ʒƚ \[ğ tƚƩƷĻ ƚƩ ƩĻƷğźƓĻķ źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ All existing employees will remain as a result of the proposed project. ЊЉ͵IƚǞ ƒğƓǤ ƓĻǞ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ŷźƩĻķ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ Fischers Hardware plans to add 7 to 10 new employees as a result of the proposed project. ЊЊ͵IƚǞ ƒğƓǤ Ʀğźķ ğƓķΉƚƩ źƓƷĻƩƓ ƦƚƭźƷźƚƓƭ ğƩĻ ƷŷĻ ĭƚƒƦğƓǤ ǞźƌƌźƓŭ Ʒƚ ƩĻƭĻƩǝĻ ŅƚƩ ƭƷǒķĻƓƷƭ ƚŅ \[ğ tƚƩƷĻ Iźŭŷ {ĭŷƚƚƌͪ Fischers Hardware has used Cooperative Education in the past with positive results and will continue to use this program. We estimate 3 to 5 positions will be available. ЊЋ͵DĻƓĻƩğƌƌǤ źķĻƓƷźŅǤ ƷŷĻ ĬĻƓĻŅźƷƭͲ źŅ ğƓǤͲ ƷŷğƷ ğƌƌ Ņǒƌƌ ƷźƒĻ ĻƒƦƌƚǤĻĻƭ Ǟźƌƌ ƩĻĭĻźǝĻ Λź͵Ļ͵ ЍЉЊƉͲ ķĻƓƷğƌͲ ƒĻķźĭğƌͲ ǝźƭźƚƓͲ ƭƷƚĭƉ ƚƦƷźƚƓƭͲ ƦƩƚŅźƷΏƭŷğƩźƓŭͲ ĻƷĭ͵Μ͵ Fischers Hardware offers optional medical, dental, vision, and Accidental Death and Dismemberment, as well as life insurance to all full time employees. ЊЌ͵/ğƷĻŭƚƩźǩĻ ƷŷĻ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻͳ ĬƚƷŷ ƩĻƌƚĭğƷĻķ ğƓķ ƓĻǞ ŷźƩĻƭΜ ĬǤ ƆƚĬ ƷźƷƌĻΉƷǤƦĻ ƚŅ ǞƚƩƉ ğƓķ ǞğŭĻΉƭğƌğƩǤ ƌĻǝĻƌ͵ All of Fischers Hardware employees are categorized as sales with the exception of office clerical personnel. Sales positions include customer service, stocking, and cashier. ЊЍ͵ ǞźƷŷƚǒƷ ƷŷĻ ğƭƭźƭƷğƓĭĻ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ǞŷǤ ƒźŭŷƷ ƓƚƷ CźƭĭŷĻƩƭ IğƩķǞğƩĻ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Without the assistance of the La Porte Development Corporation, Fischers Hardware is unable to complete the proposed project. ЊЎ͵‘ŷğƷ ŅƚƩƒΛƭΜ ğƓķ ğƒƚǒƓƷΛƭΜ ƚŅ źƓĭĻƓƷźǝĻƭ ķƚĻƭ CźƭĭŷĻƩƭ IğƩķǞğƩĻ Ǟźƭŷ Ʒƚ ƩĻƨǒĻƭƷ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Fischers Hardware would like to receive the full amount of incentive funds allowable to complete the proposed project. Fischers Hardware is requesting the sum of $350,000. This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2014-15FY 2013-14 Unaudited Beginning Fund Balance 9/30$ 3,322,635$ 3,322,635$ 2,768,155 Plus Year to Date Revenues: 1/2 Cent Sales Tax - 217,072 207,035 Interest Income 363 1,380 1,560 Total Revenues 363 218,452 208,595 Equals Total Resources 3,322,998 3,541,087 2,976,750 Less Year to Date Expenditures: Payroll 7,060 22,739 15,872 Supplies 1 110 46 Services & Charges (Memberships, Training, Advertising, Legal, Utilities) 6,903 117,326 20,505 Capital Outlay - - 19,250 * Debt Service Transfer 90,318 270,954 237,136 Total Expenditures 104,282 411,129 292,809 Estimated Year to Date Fund Balance as of 12/31/2014$ 3,218,716$ 3,129,958$ 2,683,941 Commitments Project Nebula/Ineos**$ 700,000 Richard Industrial Group 10,000 ACT Independent Turbo Service, Inc. 426,000 Debt Service Reserve 1,083,817 $ 2,219,817 Adjusted Year to Date Fund Balance$ 910,141 Projection Through Year End Adjusted Year to Date Fund Balance$ 910,141 Plus: Estimated Sales Tax 1,991,558 Plus: Transfer from CIP for District 23 Street Paving (recinded by 4B) 175,000 Less: Estimated Operational Costs (294,619) Less: Debt Service Transfers (812,863) Projected Year End Fund Balance$ 1,969,217 Sales tax revenues for Fiscal Year 2015 are estimated to be $2,208,630. (2.5% growth over FY2014) Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance Façade Grants 300,000 81,570 218,430 Total 300,000 81,570 218,430 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. **EDC Coordinator awaiting termination letter.