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HomeMy WebLinkAbout08-26-15 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 August 26, 2015August 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 or other action regarding minutes of the meeting of the La Porte Consider approval or other action regarding minutes of the meeting of the La Porte (a) Development Corporation Board held on July 7, 2015 Development Corporation Board held on July 7, 2015 -- P. Fogarty P. Fogarty 3.DISCUSSION AND POSSIBLE ACTIONDISCUSSION AND POSSIBLE ACTION Discussion and possible action authorizing Staff to draft a proposed request for proposals Discussion and possible action authorizing Staff to draft a proposed request for proposals (a) to conduct both a Market Feasibility Study and Cost Feasibility Study for a Multito conduct both a Market Feasibility Study and Cost Feasibility Study for a Multi-Use Civic Center in the City of La Porte Center in the City of La Porte -- S. Livingston S. Livingston Discussion and possible action authorizing Staff to execute payment in the amount of Discussion and possible action authorizing Staff to execute payment in the amount of Discussion and possible action authorizing Staff to execute payment in the amount of Discussion and possible action authorizing Staff to execute payment in the amount of (b)(b) $25,000.00 to Eagle Energy Resources, LLC., for the completed enhancement grant project $25,000.00 to Eagle Energy Resources, LLC., for the completed enhancement grant project -- S. Livingston S. Livingston Discussion and possible action regarding approval to revisions of the La Porte Discussion and possible action regarding approval to revisions of the La Porte (c) Enhancement Grant Program Enhancement Grant Program -- S. Livingston S. Livingston Discussion and possible action regarding two new incentive programs that will promote the Discussion and possible action regarding two new incentive programs that will promote the (d) development of new or expanded business enterprises in the City of La Porte development of new or expanded business enterprises in the City of La Porte -- S. Livingston S. Livingston Discussion and possible action authorizing Staff to publish 60Discussion and possible action authorizing Staff to publish 60--day public notice of a public day public notice of a public (e) 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 $350,000.00 It Best Hardware for an amount not to exceed $350,000.00 -- S. Livingston S. Livingston Discussion and possible action authorizing Staff to publish 60Discussion and possible action authorizing Staff to publish 60--day public notice of a public day public notice of a public (f) hearing to consider approving up to $400,000.00 to renovate the former cityhearing to consider approving up to $400,000.00 to renovate the former city--owned Texas owned Texas Parks  & Wildlife building and attract the Brigadoon Brewery & Brew School, LLC., to Parks  & Wildlife building and attract the Brigadoon Brewery & Brew School, LLC., to La Porte, TX. La Porte, TX. -- S. Livingston S. Livingston 4.SET DATE FOR NEXT MEETINGSET DATE FOR NEXT MEETING 5.STAFF REPORTSSTAFF REPORTS Receive Financial Report Receive Financial Report -- S. Livingston S. Livingston (a) 6.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. 7.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 August 26, 2015, agenda of items to be considered by the Board of the La Porte Development I certify that a copy of the August 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 August 18, 2015.Corporation was placed on the City Hall Bulletin Board on August 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 JULY 7, 2015 July 7, 2015, The City of La Porte Development Corporation Board met on at the City Hall Council Chambers, 5:00 p.m 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 Martin, Ojeda and Woodard. Board member Engelken arrived at the meeting at 5:17 p.m. Absent: Board member Clausen. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Traci Leach, and Clark Askins. 2. AUTHORIZATIONS (a) Consider approval or other action of minutes of the meeting of the La Porte Development Corporation Board held on June 1, 2015 S. Harris Board member Woodard moved to approve with amendments the minutes of the meeting of the La Porte Development Corporation Board held on June 1, 2015. Vice-President Cooksley seconded. MOTION PASSED . Ayes: President Warren, Vice-President Cooksley, Board members Woodard, Ojeda and Martin Nays: None Absent: Board members Engelken and Clausen 3. DISCUSSION OR OTHER ACTION (a) Discussion and possible action regarding the use of Workforce Development Funds S. Livingston Economic Development Coordinator Scott Livingston presented a summary for the use of Workforce Development Funds. (b) Discussion and possible action regarding the current state of retail development and future opportunities for retail development S. Livingston Economic Development Coordinator Scott Livingston presented a summary for the current state of retail development and future opportunities for retail development. Mr. Livingston also provided information on how Smart Choice came to the City of La Porte with a Mitsubishi dealership. Page 1 of 4 July 7, 2015, La Porte Development Corporation Board Minutes Board member Martin inquired if there are any other options for the Old Kroger building on Fairmont Parkway. Mr. Livingston responded he met with the owner, and there are a few ideas for retail development. Board member Ojeda commented she know of a non-profit that was inquiring about the Old Kroger building, and the roof is being repaired as of today. Board member Woodard commented the types of businesses for employment in the community should be the type of businesses that provide enough of a wage that employees can purchase homes, raise families and contribute to the community. (c) Discussion and possible action regarding expansion of the boundaries of the La Porte Enhancement Grant Program and transferring $107,669.00 from the La Porte Development Corporation General Fund Balance to Capital Improvement Projects Account 015-9892-993 S. Livingston Economic Development Coordinator Scott Livingston presented a summary and update on the three enhancement grant projects, which includes Eagle Energy, Laf, and the Oak Center. Mr. Livingston presented the issues raised for making potential changes to the program that would include adding parking lot construction, , and eliminating the requirements that multiple bids be required for each eligible component less than $2,000.00. In addition, Mr. Livingston presented S of the La Porte Enhancement Grant Program to include W. Main Street/Spencer Hwy. from Hwy. 146 to the railroad tracks; southeast corner of Farrington Drive and Spencer Hwy.; northeast corners of Myrtle Creek and Spencer Hwy.; and southern corners of Underwood Road and Spencer Hwy. Board member Woodard ed Development Coordinator Scott Livingston advised he will provide the Board with the definition of blight under Housing and Urban Development. Board member Martin questioned making grant availability to all businesses in the City of La Porte on a first-come first-served basis. Mr. Livingston responded the Board can certainly offer grants to all businesses on a first-come first served basis. Board member Martin suggested not having any specific boundaries listed in the program. Board members directed Mr. Livingston to include all commercial properties and remove the clause from the application stating alterations should not be made within 5 years from construction, otherwise an applicant may be required to reimburse the La Porte Development Corporation immediately for the full amount of the grant. Mr. Livingston was advised he would bring all revisions back to the Board. Vice-President Cooksley moved to authorize Economic Development Coordinator Scott Livingston to publish notice for a public hearing to fund the Enhancement Grant Program in Fiscal Year 2015-2016. MOTION PASSED Board member Martin seconded. . Ayes: President Warren, Vice-President Cooksley, Board members Woodard, Engelken, Ojeda and Martin Nays: None Absent: Board member Clausen (d) Discussion and possible action regarding the proposed budget for La Porte Development Corporation Board for Fiscal Year 2015-2016 - S. Livingston Page 2 of 4 July 7, 2015, La Porte Development Corporation Board Minutes Economic Development Coordinator Scott Livingston presented a summary for the proposed budget for La Porte Development Corporation Board for Fiscal Year 2015-2016, and information on formulating a Strategic Plan before the City can seek certification as an Accredited Economic Development Corporation (AEDO). City Manager Corby Alexander commented there is a lot of value in the process, and becoming accredited will benefit the City. Economic Development Coordinator Scott Livingston distributed the current financial report and reviewed it. Board member Engelken moved to approve the budget and add $107,669.00 into the Enhancement Grant Program account. Then Board member Engelken withdrew his motion after some discussion. Vice-President Cooksley moved to approve the budget including an additional $107,669.00 to be transferred into the Enhancement Grant Program account. Board member Engelken seconded. MOTION PASSED . Ayes: President Warren, Vice-President Cooksley, Board members Engelken, Ojeda and Martin Nays: Board member Woodard Absent: Board member Clausen (e) Discussion and possible action regarding additional incentive programs S. Livingston Economic Development Coordinator Scott Livingston presented a summary for additional incentive programs and recommendations for codifying the 10-year pay back model/program for new projects. Board member Ojeda commented that including in the policy that an applicant can receive up to 25% of the entire 25%. City Manager Corby Alexander asked Board members if they wished to have the 25% measuring mechanism criteria removed from the scoring mechanism. Board member Ojeda questioned Mr. Livingston if he is utilizing the same criteria for new businesses and expansions. Mr. Livingston responded the 10-year pay back is for new projects, and there are 3 programs for existing businesses. Mr. Livingston advised Board members a decision does not have to be made tonight, and the item can come back with what the Board desires at a later date. President Warren commented the La Porte Development Corporation should not be in the business of redeveloping businesses, and business owners should have utilized their funds accordingly. Mr. Livingston reviewed all of the new programs for the Board to consider if they wanted to utilize either program. Vice-President Cooksley commented he looks at which project is best for the City as a whole. Mr. Livingston commented his understanding is the community focus. Page 3 of 4 July 7, 2015, La Porte Development Corporation Board Minutes Vice-President Cooksley asked if the City owns the airport property and what will be done with the airport. City Manager Corby Alexander responded yes, and the City has accepted FFA funding for various improvements over the years that came with certain stipulations and approval processes if the airport was to be refurbished. Mr. Livingston advised Board members he can email the complex form of everything that has been discussed tonight regarding incentive programs. Board member Ojeda asked if a clause can be added to the agreement that will not allow applicants to sell businesses after receiving grants. Assistant City Attorney Clark Askins responded yes, a clause can be added to the terms of the agreement. Mr. Livingston added there is a clawback clause that if a business sold the property, they will lose the incentive. Vice-President Cooksley commented he would like an incentive program for existing businesses and one for new businesses. City Manager Corby Alexander responded if the Board only desires to have two options the incentive program can be scaled back. 4. SET DATE FOR NEXT MEETING S. Livingston Board members set the next meeting date for Monday, August 24, 2015, at 5:00 p.m. 5. STAFF REPORT (a) Receive Financial Report M. Dolby Economic Development Coordinator Scott Livingston presented the Financial Report. 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. Board members thanked Economic Development Coordinator Scott Livingston for all his hard work. 7. ADJOURN There being no further business, Vice-President Cooksley moved to adjourn the meeting at 7:40 p.m. MOTION PASSED Board member Ojeda seconded. . Respectfully submitted, ____________________________________ Patrice Fogarty, City Secretary th Passed and approved on this 24 day of August, 2015. ____________________________________ President Richard Warren Page 4 of 4 July 7, 2015, La Porte Development Corporation Board Minutes REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM August 26, 2015August 26, 2015AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Scott LivingstonScott LivingstonSource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Economic Development/TourismEconomic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Conference Center Research Conference Center Research 2. Aerial of the Proposed Area Aerial of the Proposed Area 3. Concept Pictures Concept Pictures 4. City of La Porte 2009 City of La Porte 2009 5. Deer Park Civic Center, Proposed Deer Park Civic Center, Proposed 6. Uses Surrounding the Hagerty Conference Uses Surrounding the Hagerty Conference CenterCenter 7. Kingwood Community Cener Rental Rates Kingwood Community Cener Rental Rates SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS The City of La Porte does not have a multiThe City of La Porte does not have a multi--use civic center.  There may be an opportunity for the for the City of use civic center.  There may be an opportunity for the for the City of La Porte and/or the Economic Development Board to construct a multiLa Porte and/or the Economic Development Board to construct a multi--use civic center on the 7.5 acres of use civic center on the 7.5 acres of property that the City of La Porte owns on the waterfront of Galveston Bay.  This facility would be available for property that the City of La Porte owns on the waterfront of Galveston Bay.  This facility would be available for use by the citizens of La Porte, businesses of La Porte, and visitors from other communities.  Management of the use by the citizens of La Porte, businesses of La Porte, and visitors from other communities.  Management of the facility could be contracted out like the concession business at the golf course.  Another, or same, contractor could facility could be contracted out like the concession business at the golf course.  Another, or same, contractor could manage the catering, setup, booking, etc.   manage the catering, setup, booking, etc.    Texas Local Government Code Section 505.152 authorizes the use of Type B (i.e. 4B) Funds for the development Texas Local Government Code Section 505.152 authorizes the use of Type B (i.e. 4B) Funds for the development of a conference and/or multiof a conference and/or multi--use civic center.  Please note the statute below: use civic center.  Please note the statute below:  Sec. 505.152. PROJECTS RELATED TO RECREATIONAL OR COMMUNITY FACILITIES.  For purposes Sec. 505.152. PROJECTS RELATED TO RECREATIONAL OR COMMUNITY FACILITIES.  For purposes of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of of this chapter, "project" includes land, buildings, equipment, facilities, and improvements found by the board of directors to be required or suitable for use for professional and amateur sports, including children's sports, athletic, directors to be required or suitable for use for professional and amateur sports, including children's sports, athletic, entertainment, tourist, convention, and public park purposes and events, including stadiums, ball parks, auditoriums, entertainment, tourist, convention, and public park purposes and events, including stadiums, ball parks, auditoriums, amphitheaters, concert halls, parks and park facilities, open space improvements, museums, exhibition facilities, amphitheaters, concert halls, parks and park facilities, open space improvements, museums, exhibition facilities, and related store, restaurant, concession, and automobile parking facilities, related area transportation facilities, and and related store, restaurant, concession, and automobile parking facilities, related area transportation facilities, and related roads, streets, and water and sewer facilities, and other related improvements that enhance any of the related roads, streets, and water and sewer facilities, and other related improvements that enhance any of the items described by this section. items described by this section.  Economic Development Staff collected information on thirteen (13) conference, civic, and/or community centers.  Economic Development Staff collected information on thirteen (13) conference, civic, and/or community centers.  Seven of the centers are publiclySeven of the centers are publicly--owned facilities in the Greater Houston Area, while the other five are privatelyowned facilities in the Greater Houston Area, while the other five are privately- owned facilities across North America.  Each of the five privatelyâowned facilities across North America.  Each of the five privately ‘‘owned and operated conference centers are owned and operated conference centers are on the waterfront.  For information on each of the thirteen (13) conference/civic/community centers surveyed, on the waterfront.  For information on each of the thirteen (13) conference/civic/communi ty centers surveyed, please see the enclosed Excel spreadsheet.  In summary, please note the following: please see the enclosed Excel spreadsheet.  In summary, please note the following:  The best estimate to construct a 26,250 squareThe best estimate to construct a 26,250 square--foot community/conference center is $3.5 million.  Please foot community/conference center is $3.5 million.  Please note the files regarding the City of Deer Park. note the files regarding the City of Deer Park.  The Evelyn Kennedy Civic Center, which is 5,198 square feet in size, will serve a maximum capacity of 200 The Evelyn Kennedy Civic Center, which is 5,198 square feet in size, will serve a maximum capacity of 200 people.  A 26,250people.  A 26,250--squaresquare--foot community/conference center would be roughly five times as large as the foot community/conference center would be roughly five times as large as the Evelyn Kennedy Civic Center.Evelyn Kennedy Civic Center. Based upon the square footage (i.e. size), maximum capacity, location, and pricing to reserve each facility, Based upon the square footage (i.e. size), maximum capacity, location, and pricing to reserve each facility, staff proposes that the best projects with which to compare a proposed project on the waterfront in staff proposes that the best projects with which to compare a proposed project on the waterfront in La Porte are the:La Porte are the: Hagerty Conference Center in Traverse City, Michigan,Hagerty Conference Center in Traverse City, Michigan, Proposed Conference Center in Deer Park, Texas,Proposed Conference Center in Deer Park, Texas, Kingwood Community Center in Houston, Texas, andKingwood Community Center in Houston, Texas, and City Centre in Missouri City, TexasCity Centre in Missouri City, Texas Based upon the square footage (i.e. size), maximum capacity, location, and pricing to reserve each facility, Based upon the square footage (i.e. size), maximum capacity, location, and pricing to reserve each facility, staff proposes that the second best projects with which to compare a proposed project on the waterfront in staff proposes that the second best projects with which to compare a proposed project on the waterfront in La Porte are the:La Porte are the: Bridge Water Events in Baytown, TexasBridge Water Events in Baytown, Texas Waterfront Event Center in Galveston, TexasWaterfront Event Center in Galveston, Texas Trolley Station Ballroom on the Strand in Galveston, TexasTrolley Station Ballroom on the Strand in Galveston, Texas Waterfront Banquet & Conference Center in Ontario, CANADA, andWaterfront Banquet & Conference Center in Ontario, CANADA, and Pasadena Convention CenterPasadena Convention Center Staff included a map showing the parks, resorts, hotels, restaurants, and retail in the area surrounding the Staff included a map showing the parks, resorts, hotels, restaurants, and retail in the area surrounding the Hagerty Conference Center on Lake Michigan.Hagerty Conference Center on Lake Michigan. Staff included the Rate Sheet for the Kingwood Community Center, because their rates were the highest Staff included the Rate Sheet for the Kingwood Community Center, because their rates were the highest among all the publicamong all the public--owned community centers surveyed in the Greater Houston Area.owned community centers surveyed in the Greater Houston Area. In Sept. 2009, the City of La Porte received a completed study from a consultant that, in addition to investigating In Sept. 2009, the City of La Porte received a completed study from a consultant that, in addition to investigating possibilities to renovate the Sylvan Beach Pavilion, investigated the possibility of constructing a conference center possibilities to renovate the Sylvan Beach Pavilion, investigated the possibility of constructing a conference center on the 7.5 acres of cityon the 7.5 acres of city--owned property on Galveston Bay for $4.5 million.  The proposed conference center was owned property on Galveston Bay for $4.5 million.  The proposed conference center was anticipated to host Meetings for 1,200 and Banquets for 1,000.  Please see anticipated to host Meetings for 1,200 and Banquets for 1,000.  Please see ““City of La Porte, 2009City of La Porte, 2009””for additional for additional details.  If the Board wishes to further pursue this project, staff recommends putting together a Request for Proposals to If the Board wishes to further pursue this project, staff recommends putting together a Request for Proposals to narrow the scope of the proposed project and then select and hire a consultant to conduct both a Market narrow the scope of the proposed project and then select and hire a consultant to conduct both a Market Feasibility Analysis and Cost Feasibility Analysis of the proposed project.  The purpose of the Market Feasibility Feasibility Analysis and Cost Feasibility Analysis of the proposed project.  The purpose of the Market Feasibility Analysis would be to determine the level of demand in the market for a proposed conference center or multiAnalysis would be to determine the level of demand in the market for a proposed conference center or multi-use civic center.  The purpose of the Cost Feasibility Analysis would be threecivic center.  The purpose of the Cost Feasibility Analysis would be three--fold: (1) identify the necessary costs to fold: (1) identify the necessary costs to construct the proposed facility; (2) identify the necessary costs to operate and maintain the proposed facility; and construct the proposed facility; (2) identify the necessary costs to operate and maintain the proposed facility; and (3) identify/determine a recommended rental structure that would sustain the facility and amenities that are likely (3) identify/determine a recommended rental structure that would sustain the facility and amenities that are likely to generate the most rental interest.to generate the most rental interest. Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: 1.Provide staff with direction regarding this proposed project, andProvide staff with direction regarding this proposed project, and 2.Consider approval or other action authorizing staff to draft, and bring to the Board at a future date, a Consider approval or other action authorizing staff to draft, and bring to the Board at a future date, a proposed Request for Proposals to conduct both a Market Feasibility Study and a Cost Feasibility Study for proposed Request for Proposals to conduct both a Market Feasibility Study and a Cost Feasibility Study for the proposed project.the proposed project. 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: Debbie Westbeld \[mailto:dwestbeld@deerparktx.org\] Sent: Monday, July 13, 2015 3:01 PM To: Livingston, Scott Subject: Deer Park civic center Scott, Attached is the handout that was shown to City Council last month by our architect. It shows 3 different options. City Council likes Option #3 the best. That is the one I was telling you about. It's a 20,000 sf facility that would be built next to our existing Jimmy Burke Activity Center. They are trying to figure out how to pay for it. They have not voted on anything....this is all just being discussed. It's a 20,000 sf building that would cost $3.5 million. The 2 big conference rooms could be combined, forming an 11,000 sf room. With no tables or chairs, that 11,000 sf room could fit over 1,000 people (they say to figure 10 sf of "cushioned personal space" per person if they are standing around socializing). Also, here's a guide that I found, which shows the various ways a room can be set up and how many people it would hold: Hope this helps. I'll keep you posted. Debbie Debbie Westbeld Economic Development Administrator City of Deer Park 281-478-2042 (office) 281-628-5114 (cell) dwestbeld@deerparktx.org 710 E. San Augustine, Deer Park, TX 77536 Kingwood Community Center 4102 Rustic Woods Drive, 77345 (281) 348-2570 G9-060.14 Kingwood Community Center Rental Rates 4102 Rustic Woods Drive, 77345 For reservations call (281) 348-2570 Damage Deposit - is refundable and is equal to the total rental fee. Updated September 2014 Facilities Available Commercial Rate For Rent Out by 7:00 pm Out after 7:00 pm Each Additional Out by 7:00 pm Out after 7:00 pm Each Additional For 1st - 3 hours For 1st - 3 hours Hour For 1st - 3 hours For 1st - 3 hours Hour Auditorium-Full $362.95 $379.00 $90.74 $725.91 $741.96 $181.48 Clean-Up/Set-Up $156.00 Auditorium-Half $181.47 $197.52 $25.92 $362.95 $379.00 $51.85 Clean-Up/Set-Up $78.00 Commercial Kitchen $129.62 $129.62 $51.85 $259.25 $259.25 $103.70 Meeting Room 1 $42.82 $58.87 $10.70 $85.64 $101.69 $16.05 Clean-Up/Set-Up $16.00 (Up to 30 persons) Meeting Room 1 $58.87 $74.93 $16.05 $101.69 $117.75 $21.40 Clean-Up/Set-Up $16.00 (30+ persons) Meeting Room 2 $42.82 $58.87 $10.70 $85.64 $101.69 $16.05 Clean-Up/Set-Up $16.00 (Up to 30 persons) Meeting Room 2 $58.87 $74.93 $16.05 $101.69 $117.75 $21.40 Clean-Up/Set-Up $16.00 (30+ persons) Servery $25.93 $25.93 N/A $25.93 $25.93 N/A Houston Parks & Recreation Department 2999 South Wayside Houston, Tx 77023 (832) 395-7000 www.houstonparks.org REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 26 August 2015 Source of Funds: CIP #015-9892-993 Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: $25,000 Exhibit: Project Presentation Budgeted Item: YES NO Exhibit: Bid Sheet Summary Exhibit: Enhancement Grant Application Exhibit: Enhancement Grant Evaluation Summary SUMMARY & RECOMMENDATION On 9 February 2015, the Board voted unanimously to a offer an enhancement grant in an amount $25,000Eagle Energy Resources, LLC not to exceed to at 153 S. Broadway upon successful completion of the proposed project, per the guidelines and parameters of the La Porte Enhancement Grant Program. Although Doug Shows, the Owner of the company, was planning to enhance all four (4) sides of the building’s exterior, he collected three (3) bids from general contractors to complete each of only the west and south the five (5) primary projects on (i.e. the front side facing S. Broadway) sides (i.e. the side facing East Street/San Jacinto Ave.) of the building: (a) "Stucco Work/Façade Repair", (b) "Painting", (c) "Doors", (d) "Canopy Work", and (e) "Exterior Lighting". The applicant also secured three (3) additional bids to install some ornamental “Texas Stars” on the building’s exterior. CLS The general contractor which offered the lowest bid for the five (5) work projects was Builders, Inc. $48,257 in the amount of . The lowest bid to manufacture and ship the “Texas Iron Designs and Signs$2,368.90 Stars” was for . The sum total of these two, lowest bids was $50,625.90$25,312.95 . Therefore, 50% of this sum was . Please see the “Bid Sheet Summary” for details. The maximum amount allowed per property owner through the La Porte $25,000 Enhancement Grant Program is . Therefore, the maximum amount to be reimbursed for $25,000 this project was expected to be . Eagle Energy Resources, LLC completed each of the projects that the Board approved on 9 $53,387.80 February 2015 for the total sum of , which is greater than the Board approved amount $50,625.90 of. The company completed projects in excess of $50,000, and the company representatives have submitted copies of invoices, paid receipts, and cancelled checks for all the completed enhancement grant projects. Therefore, according to the terms of the La Porte 1 153 S. Broadway Street Eagle Energy Resources, LLC 1909 Marvin Circle, Suite A Dshows@eagleenergy.us Seabrook, Texas 77586 3379 x 302 President & CEO 5ƚǒŭ {ŷƚǞƭ - (281) 474 δDĻƓĻƩğƌ tƩƚƆĻĭƷ .źķδ źƓĭƌǒķĻƭ ŅźǝĻ ΛЎΜ ƦƩźƒğƩǤ ƦƩƚƆĻĭƷƭʹ ΛЊΜ δ{Ʒǒĭĭƚ ‘ƚƩƉΉCğIJğķĻ wĻƦğźƩδͲ ΛЋΜ δtğźƓƷźƓŭδͲ ΛЌΜ δ5ƚƚƩƭδͲ ΛЍΜ tƩƚƆĻĭƷ ƚƷğƌ υЋЎͲЌЊЋ͵ВЎ .źķķĻƩ {ŷĻĻƷ {ǒƒƒğƩǤ ΏΏ 9ğŭƌĻ 9ƓĻƩŭǤ wĻƭƚǒƩĭĻƭͲ \[\[/ Ļǣğƭ {ƷğƩƭ υЋͲБВВ͵ББυЋͲБАЋ͵БЊ υЋͲЌЏБ͵ВЉ ЊЎЌ {͵ .ƩƚğķǞğǤͳ \[ğ tƚƩƷĻͲ Ļǣğƭ ААЎАЊ Њ DĻƓĻƩğƌ tƩƚƆĻĭƷ .źķ υЍБͲЋЎА͵ЉЉ υЏЏͲЊАЏ͵ЉЉυЎБͲЏЎЉ͵ЉЉ δ/ğƓƚƦǤ ‘ƚƩƉδͲ ğƓķ ΛЎΜ δ9ǣƷĻƩźƚƩ \[źŭŷƷźƓŭδ͵ wğƭğ /ƚƓƭƷƩǒĭƷźƚƓ /ƚ͵Ͳ LƓĭ͵ \[t5/γƭ ЎЉі /ƚƓƷƩźĬǒƷźƚƓʹ wĻķŅźĻƌķ /ǒƭƷƚƒ .ǒźƌķźƓŭ bğźƌŷĻğķ {ƦǒƩ /ƚƒƦğƓǤ LƩƚƓ 5ĻƭźŭƓƭ ğƓķ {źŭƓƭ /\[{ .ǒźƌķĻƩƭͲ LƓĭ͵ {ƷğƩƭ hǝĻƩ Ļǣğƭ Њ bƚƷĻƭʹ REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM August 26, 2015August 26, 2015AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/AN/A Scott D. LivingstonScott D. LivingstonSource of Funds:Source of Funds: Requested By:Requested By: Account Number:Account Number: Economic Development/TourismEconomic Development/Tourism Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Exhibits: Budgeted Item:Budgeted Item:YESYESNONO 1. Enhancement Grant Guidelines Enhancement Grant Guidelines--CurrentCurrent 2. Enhancement Grant Guidelines Enhancement Grant Guidelines--RevisedRevised 3. City of La Porte's Local Bidder Preference City of La Porte's Local Bidder Preference Policy SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS Based upon previous discussions regarding ways to improve the La Porte Enhancement Grant Program, the Board Based upon previous discussions regarding ways to improve the La Porte Enhancement Grant Program, the Board expressed interest in making the following revisions to the program: expressed interest in making the following revisions to the program:  Add parking lot improvements including new parking lot construction, parking lot paving, parking lot reAdd parking lot improvements including new parking lot construction, parking lot paving, parking lot re- surfacing, parking space striping/painting, new parking blocks, old parking block removal, and other projects surfacing, parking space striping/painting, new parking blocks, old parking block removal, and other projects as approved by the ED Board,as approved by the ED Board, Include preference for local bidders by incorporating the City of La PorteInclude preference for local bidders by incorporating the City of La Porte’’s Local Bidder Preference s Local Bidder Preference Policy, Eliminate the requirement for multiple bids for each eligible project which has a value which is less than Eliminate the requirement for multiple bids for each eligible project which has a value which is less than $2,000, of which 50% or $1,000 would be a reimbursable expense, in accordance with the City of $2,000, of which 50% or $1,000 would be a reimbursable expense, in accordance with the City of $2,000, of which 50% or $1,000 would be a reimbursable expense, in accordance with the City of $2,000, of which 50% or $1,000 would be a reimbursable expense, in accordance with the City of La PorteLa Porte’’s Purchasing Policy,s Purchasing Policy, Expand the programExpand the program’’s boundaries to include the incorporated city limits of La Porte,s boundaries to include the incorporated city limits of La Porte, Remove the clause that prohibits alterations of approved projects for a period of five (5) years, andRemove the clause that prohibits alterations of approved projects for a period of five (5) years, and Numerous grammatical revisions or clarifications, as shown in red ink, which support the intent of the Numerous grammatical revisions or clarifications, as shown in red ink, which support the intent of the previous five (5) revisions as listed above. previous five (5) revisions as listed above.  Staff recommends approval of these six (6) proposed revisions to the La Porte Enhancement Grant Program. Staff recommends approval of these six (6) proposed revisions to the La Porte Enhancement Grant Program.  Action Required by the La Porte Development Corporation:Action Required by the La Porte Development Corporation: Consider approval or other action to approve the six (6) proposed revisions to the La Porte Enhancement Grant Consider approval or other action to approve the six (6) proposed revisions to the La Porte Enhancement Grant Program. Approved for the La Porte Development Corporation AgendaApproved for the La Porte Development Corporation Agenda Corby D. Alexander, City ManagerCorby D. Alexander, City ManagerDateDate LA PORTE ENHANCEMENT GRANT PROGRAM The La Porte Enhancement Grant Program, which is sponsored by the La Porte Development Corporation,offers matching grantstobusinesseswhich are locatedin the La Porte Enhancement Grant District. A map of the La Porte Enhancement Grant District is provided in the full explanation of the program. Eligible improvements of the EGP include facade renovation, beautification projects, and new awnings, canopies, porches, and signage. A single owner of multiple properties may apply for grant funds for each property owned, but each matching grant must be for more than $2,500 and less than $25,000 per property. Each program application will be evaluated on a case-by-case basis. Interested business owners are welcome to complete the enclosed application form. Please deliver applications to the following address: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Please contact Scott D. Livingston at livingstons@laportetx.gov or 281/470-5016, if you have any questions about the La Porte Enhancement Grant Program. Sincerely, Scott D. Livingston Economic Development Coordinator City of La Porte L PORTE BY THE BAY A 604 W. Fairmont Parkway La Porte, Texas 77571 281/470-5016 BUSINESS. BY THE BAY. La Porte Enhancement Grant Program The La Porte Enhancement Grant Program provides matching funds to enhance and/or beautify businesses in the La Porte Enhancement Grant District which is outlined with a bold black linebelow. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 1 BUSINESS. BY THE BAY. ELIGIBLE PROJECTS Business owners may be eligible for a reimbursement grant of funds used to enhance and/or beautify their businesses. The following types of projects are eligible for reimbursement grants: Façade Rehabilitation/Enhancement This includes work done on existing structures, such as removing non-historic/added facades, re-pointing brick or replacing mortar joints, replacing or restoring cornices, removing paint from brick, replacing windows, restoring transom windows, repairing facades, etc. New Awnings, Canopies, Porches and Signage This includes replacing, adding, or repairing awnings, canopies, porches and signs. Signs may include signboards, projecting signs, pedestrian signage, window signs, hanging signs, and awning/canopy signs. Beautification Projects This may include public art, landscaping, and other beautification projects as approved by the Enhancement Grant Evaluation Committee (EGEC). PROGRAM GUIDELINES 1.Grant funds are available only for exterior work on commercial property and building facades that are visible from public streets in the La Porte Enhancement Grant District. 2.In general, grants offered to businesses are intended to support project to renovate or convert existing structures to their original historic condition. 3.Grants will be processed and considered for award on a first-come, first-served basis until funds are depleted or until the program ends, whichever comes first. 4.Grants will not be awarded for work that has already been started or completed, or for work that is covered by insurance. If desired work is above and beyond what insurance will pay, and is, therefore, considered an upgrade and enhancement in the opinion of the EGEC, it may be eligible for grant funds. 5.Grants will not be awarded to any Applicant that owes any delinquent indebtedness* to the City of La Porte or the La Porte Development Corporation (LPDC). LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 2 BUSINESS. BY THE BAY. 6.Each grant will be awarded on a reimbursement basis once completed work has been verified by the EGEC to be compliant with the plans proposed in the approved application. Any deviation from the approved project may result in the total or partial withdrawal of the grant. 7.Each enhancement grant application will be subject to review by the EGEC, and approval from the LPDC. The review criteria include the following: The project demonstrates a significant improvement over the existing situation, The project will add to the beautification of Main Street and/or Broadway, The project will enhance Main Street and/or Broadway’s appeal to new businesses and visitors, The project will complement the surrounding buildings, and The project will add value to the City of La Porte. 8.Grant applications and awards may be made in any of the reimbursable activities described above and may be combined for any single property or project. 9.An applicant is defined as an owner, tenant, or combination thereof, who occupies space in an eligible property within the La Porte Enhancement Grant District. A single owner of multiple properties may apply for grant funds for each property owned, but the matching grant must be for more than $2,500 and less than $25,000 per property in a three (3) year period. APPLICATION PROCESS 1.Determine eligibility: Discuss project plans with the Economic Development Coordinator, and the Coordinator will set up a pre-development meeting with the EGEC. 2.Complete the application and sign the agreement form. Each grant application must include the following: a.A scale drawing by the project architect or design professional of all the work to be completed. b.Samples -- i.e. paint samples, fabric swatches, sign material, etc. -- that will enable the EGEC to envision the finished project. c.Three (3) itemized work estimates on all project work from contractors or project architects. Self-contracted work will be reimbursed for actual legitimate expenses, excluding labor. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 3 BUSINESS. BY THE BAY. d.Photographs of the building’s exterior. The Applicant shall be required to provide before and after photographs of the building before the reimbursement grant can be awarded. For the initial application, “before” photographs will suffice, but “after” photographs of the completed project must be submitted before the grant may be considered for reimbursement. 3.Return the completed application form, with all applicable items, to: Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 4.The application will undergo an approval process, which includes but is not limited to the following: a.Each project must meet current building standards and codes, as well as building permit requirements. b.The EGEC will only consider applications that have been properly and fully completed, and which contain all information requested in the application and/or by the committee. c.All itemized work estimates submitted by the Applicant must be dated no earlier than ninety (90) days prior to the Application request. Bids shall be submitted on the contractor’s or project architect’s letterhead and shall contain the contractor’s name, address, and telephone number and shall itemize the bid in a manner that allows the EGEC to determine the bid components and authenticity of the bid. d.Applications receiving approval by the EGEC shall commence construction described in the application within ninety (90) days from the date that the enhancement grant is approved. Each Applicant must complete the construction described in the Application within one (1) year from the date that the grant is approved. If the Applicant cannot meet this timeline, then the Applicant may submit a written request for an extension of the commencement date or completion date provided the extension request is made prior to the ninety (90) day or one (1) year time limit. The EGEC shall not be obligated to grant an extension, but it may do so for good cause determined solely by the members of the Committee. The extensions, if granted, shall be for the term and for the conditions determined exclusively by the EGEC. Denial of an extension request may not be appealed. e.As a condition of this grant Application, the Applicant consents, and shall allow, the EGEC to request city inspections to determine that the grant, if awarded, will not be used for construction on any building that is not in compliance with the City Municipal LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 4 BUSINESS. BY THE BAY. Codes and Ordinances that are applicable to the construction contemplated in the application. f.The EGEC and LPDC shall have sole discretion in awarding grants. They shall award grants considering the amount requested, grant funds available, the guidelines of the grant program, condition of the building in which the grant funds will be used, economic impact, other grant requests, the type and nature of the construction, and the proposed construction results considering the grant program. g.No Applicant has a proprietary right to receive grant funds. The EGEC shall consider any application within its discretionary authority to determine what grant amount would be in the best interest of the grant program. h.The Applicant shall be required to furnish “before” photographs of the building’s exterior, and any other site locations that are included as part of the application request. The applicant shall also provide “after” photographs once the construction has been completed, as a condition of final grant disbursement. i.The EGEC has the final discretion with regard to funding and reserves the right to recommend modifications or reject any project or elements of any project. 5.Reimbursement. When the entire enhancement grant project has been completed, the Applicant shall present the Economic Development Office with the following: a.Copies of all paid invoices, including copies of cancelled checks and/or credit card receipts for a single payment reimbursement of the approved funding, and b.Photographs of all completed work. 6.When the project has been reviewed and signed off by the EGEC and their recommendations have been presented and approved by the LPDC, a reimbursement check will be issued. LA PORTE ENHANCEMENT GRANT PROGRAM PAGE 5 BUSINESS. BY THE BAY. La Porte Enhancement Grant Application Scott D. Livingston Economic Development Coordinator City of La Porte 604 W. Fairmont Pkwy La Porte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE: Applicant Name Business Name Physical Business Address Business Owner (if different from applicant) Mailing Address Contact Phone Email Address TYPE OF WORK (): Façade Rehabilitation/Enhancement Awnings/Signage Beautification Other (): DETAILS OF PLANNED IMPROVEMENTS (): ENHANCEMENT GRANT APPLICATION PAGE 1 BUSINESS. BY THE BAY. Please list the name of eachContractor and/or Project Architect and the Total Amount of each bid. Please, also, attach the original proposals and work estimates: CONTRACTOR/PROJECT ARCHITECTTOTAL AMOUNT 1.$ 2. $ 3. $ 4. $ 5. $ BUDGET DETAIL PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIEDTOTAL Façade Rehab $ $ $ Awnings/Signage $ $ $ Beautification $ $ $ Other (list):$ $ $ Other (list):$ $ $ TOTALS $ $ $ Total estimated cost of proposed project: $ Amount requested (up to 50% of total cost, $2,500 to $25,000): $ I have met with the EGEC and I fully understand the Enhancement Grant procedures and details established. I intend to use these grant funds for the renovation projects, as spelled out in the application. I have not received, nor will I receive insurance monies for this revitalization project OR I have disclosed all pertinent insurance information. I understand that if I am awarded an Enhancement Grant, any deviation from the approved project may result in the partial or total withdrawal of the grant funds. If I am awarded a reimbursement grant for façade, awning, signage, beautification, or other approved work, alterations should not be made within five (5) years from construction; otherwise I may be required to reimburse the La Porte Development Corporation immediately for the full amount of the grant. APPLICANT SIGNATURE DATE ENHANCEMENT GRANT APPLICATION PAGE 2 CITY OF LA PORTE, TEXAS LOCAL BIDDER PREFERENCE POLICY Purpose: The purpose of the policy is to implement Sections 271.905 and 271.9051 of the Texas L e award of competitively bid contracts, and to adopt similar guidelines for award of quotes for purchases not subject to bidding requirements under state law, for the acquisition of certain goods and services. Procedure: 1. Scope a. This policy applies to the purchase of real property, personal property that is not affixed to real property, or services, including construction services, through submission of Competitive Bids for purchases of more than fifty thousand dollars ($50,000.00), or in the case of purchases between twenty- five thousand dollars ($25,000.00) and fifty thousand dollars ($50,000.00), the submission of quotes. 2. Definitions: i. Lowest Responsible Bid/Quote - Price is the single determinant factor when awarding a bid or quote to a responsible vendor. ii. Principal Place of Business business that is headquartered in and has an established place of business in the incorporated limits of the City of La Porte, and from which performance of a commercially useful function or a substantial part of its operations is conducted. A location utilized as a post office box, mail drop or telephone message center or any combination thereof, with no other substantial work function, shall not be construed as a principal place of business. 3. Criteria for Award of Bid a. In contracts for the purchase of real property or personal property that is not affixed to real property, if the city receives one or more competitive bids from a vendor that is a local business and whose bid is within three percent (3%) of the lowest bid price received by the city from a bidder that is not a local business, the city may enter into a contract in an amount equal to or greater than five hundred thousand dollars ($500,000.00) with: (I) the lowest bidder; or (2) the local bidder that has a principal place of business in La Porte, as defined herein, provided the La Porte City Council determines, in writing, that awarding to the local bidder offers the city the best combination of contract price and economic development opportunities. one or more competitive bids equal to or exceeding $500,000.00 are received from a vendor that is a local business and which are within three percent (3%) entitled to consideration for local preference under this section, along with the low bid. b. In contracts for the purchase of real property, personal property that is not affixed to real property, or services, if the city receives one or more competitive bids from a vendor that is a local business and whose bid is within five percent (5%) of the lowest bid price received by the city from a bidder that is not a local business, the city may enter into a contract for an amount greater than fifty thousand dollars ($50,000.00) but less than five hundred thousand dollars ($500,000.00), or in the case of construction services, a contract greater than fifty thousand dollars ($50,000.00) but less than one hundred thousand dollars ($100,000.00), with: (I) the lowest bidder; or (2) the local bidder that has a principal place of business in La Porte, as defined herein, provided the La Porte City Council determines, in writing, that awarding to the local bidder offers the city the best combination of contract price and economic development opportunities. equal to or below $50,000.00, but where one or more competitive bids exceeding $50,000.00 are received from a vendor that is a local business and which are within five percent (5%) then in that event the local bid or bids shall be entitled to consideration for local preference under this section, along with the low bid. A bid for construction services received from a vendor that is a local business that is in the amount of $100,000.00 or more shall not be entitled to consideration for local preference under this policy, regardless of whether the The chart below is a summary of the criteria for Lowest Responsible Bids, for local business bidders: LGC 271.9051 LGC 271.905 5% price differential 3% price differential Construction bids greater than $50,000 All other bids, excluding construction but less than $100,000 and services, equal to or greater than $500,000. All other bids, including services, greater than $50,000 but less than $500,000 1. Criteria for Award of Quote In contracts for the purchase of real property, personal property that is not affixed to real property, or services, if the city receives one or more quotes from a vendor that is a local business and whose quote is within five percent (5%) of the lowest quote received by the city from a vendor that is not a local business, the city may enter into a contract for an amount between twenty- five thousand dollars ($25,000.00) and fifty thousand dollars ($50,000.00) with: (I) the vendor submitting the lowest quote; or (2) the local vendor that has a principal place of business in La Porte, as defined herein, provided the La Porte City Council determines, in writing, that awarding to the local vendor offers the city the best combination of contract price and economic development opportunities. where one or more quotes exceeding $25,000.00 are received from a vendor that is a local business and which a submission, then in that event the local quote or quotes shall be entitled to consideration for local preference under this section, along with the low quote. 2. Local Bidder Preference Consideration Application a. A new Local Bidder Preference Consideration Application form must be submitted with each competitive bid or quote submission by the due date. b. This application serves to ensure the qualifications of the vendor submitting a bid or quote and in the case of purchases of more than fifty- five thousand dollars$50,000.00serves as the basis for meeting the (), state law requirement that the governing body find in writing, that a bidder is a local bidder. c. Vendors seeking local preference must meet all specifications and requirements contained in the bid documents or request for quotes. 3. Exceptions a. This policy does not apply to purchases obtained through a Request for Qualifications (RFQ), Request for Proposals (RFP), bids involving Federal funds, Cooperative Purchases, Emergencies or Inter-local Agreements, or purchases for services subject to the Professional Services Procurement Act, Texas Government Code Chapter 2254. b. Bids received for contracts relating to telecommunication or information services are ineligible for consideration under this local preference policy, for purchases greater than fifty thousand dollars ($50,000.00) but less than five hundred thousand dollars ($500,000.00) . 4. The City Council may award a competitively bid contract to the lowest responsible bidder, local bidder consistent with this policy and state law, or reject all bids, and likewise, may award a quote to the lowest responsible vendor, local vendor consistent with this policy, or reject all quotes. REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 26 August 2015 Source of Funds: Requested By: Scott D. Livingston Account Number: Department: Administration/Economic Development Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibit: Proposed Project Criteria Form Budgeted Item: YES NO Exhibit: Program Model for New Businesses Exhibit: Evaluation for Expanding Businesses Exhibit: Summary Evaluation for Expanding Businesses SUMMARY & RECOMMENDATION promote Earlier this year, the ED Board directed staff to draft multiple incentive programs to the development of new or expanded business enterprises for its consideration. Both of the proposed programs will be offered throughout the City of La Porte, and each business will be required to complete a Proposed Project Criteria Form as part of the application process. Eligible projects will include everything in the La Porte Enhancement Grant Program, projects that are authorized to create primary jobs, and projects which are allowed under Local Government Code Chapter 501.103 as listed below: Sec. 501.103. CERTAIN INFRASTRUCTURE IMPROVEMENT PROJECTS. In this subtitle, "project" includes expenditures that are found by the board of directors to be infrastructure necessary to promote or develop new or expanded required or suitable for business enterprises , limited to: (1)streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements; (2) telecommunications and Internet improvements; or (3) beach remediation along the Gulf of Mexico. Staff offers the following economic development incentive programs for the Board’s consideration. For projects that do not qualify for either of the two (2) programs outlined below, or that request more funds than any single program will allow, staff will to refer the prospective business to the Small Business Development Center for assistance. 1 Program for New Businesses promote the development of new business enterprises The purpose of this program is to according to the parameters allowed in Texas Local Government Code Chapters 501.103 and 501.162. The information provided in this section is intended to establish firmer guidelines and/or a policy regarding the use of this current tool to assign “value” and offer economic including retail, restaurant, and development incentives to a broader range of projects, industrial projects in the City of La Porte. Eligible projects under this program would include everything in the La Porte Enhancement Grant Program, plus everything allowed in Texas Local Government Code Chapters 501.103 and 501.162. Incentives would be based upon the factors below. Per the Board’s request, staff’s created this model/program for the Board to consider in assigning value to projects. While staff’s goal is to create a “catch-all” model that may be used to assign “value” and a maximum incentive to every project, some projects will invariably require special attention and consideration. The Board may wish to consider stating the current 10 year payback model as follows: lesser “A project may receive up to the amount of either (a) the total actual amount of property and sales tax revenues that it is expected to generate (or actually generates) for 10 years, plus a calculated value for “primary jobs”, 25% or (b) of the project’s total capital expenditure for “infrastructure”, as defined by Texas Local Government Code Chapter 501.103, and/or “primary job training” expenses, which may assist to create “primary jobs”, as defined by Texas Local Government Code Chapters 501.002 and 501.162.” Notwithstanding the purpose of this program in accordance with Texas Local Government Code new Chapters 501.103 and 501.162, a direct result of this new program will be to encourage commercial development and/or redevelopment of older commercial properties throughout the City of La Porte. Staff proposes that all projects that wish to apply for a development grant under the terms of this program must also adhere to each of the following criteria: (1)Only the portion of the project, if any, that meets the requirement of the “but for” clause will be considered. (Note: In other words, never give more than the Board has to give to attract a prospective project and/or bring it to fruition.) (2)Only the minimum amount of financial assistance required to bring the project to fruition will be considered. (3)A strict, narrow focus will be maintained for using funds on “infrastructure”, “site improvements”, “related improvements”, and “primary job training”. (4)The incremental tax revenues, including both property and sales tax revenues, to be generated by each project, which may be verified in the quarterly and annual STARS Reports, will be included in the model. (5)The value of number of new jobs associated with each project will be assigned a value and included in the model as follows: 0.15 a.A value of per job will be assigned for higher paying, white collar, primary engineering, engineering design, or executive “ jobs”. 2 0.125 b.A value of per job will be assigned to highly skilled positions for a process primary technician and/or advanced manufacturing “jobs”. 0.10primary c.A value of per job will be assigned to skilled “ jobs”. 0.075primary d.A value of per job will be assigned to unskilled “ jobs”, and 0non-primary e.A value of per job will be assigned to “ jobs”. (6)The ED Board and/or City Council will retain discretion to award any lesser or greater amount to any given project. For detailed information regarding the formulas used in this analysis, please refer to the enclosed Program Model for New Businesses file called “”. Staff would be responsible for screening each applicant according to the minimum, established qualifications. Staff would also be responsible for calculating the estimated value of an economic development incentive for this project. Approval for each project would require an economic development agreement, plus approval of both the ED Board and City Council. Program for Expanding Businesses promote the development of expanded business enterprises The purpose of program is to according to the extent of the parameters allowed in Texas Local Government Code Chapters 501.103 and 501.162. A direct result of this new program will be to encourage the investment of redevelopexisting, commercial properties private business capital to and improve throughout the City of La Porte. Eligible projects under this program would include everything in the La Porte Enhancement Grant Program, plus everything allowed in Texas Local Government Code Chapters 501.103 and 501.162. Incentives would be based upon the factors below. Per the Board’s request, staff’s created this model/program for the Board to consider in assigning value to projects. Each applicant should meet at least one (1) of the following qualifications: Capital investment/expenditure 25% (1)that results in a or more increase in real property and/or business personal property tax revenues, or Capital investment/expenditure25% (2) that results in a or more increase in sales tax revenues, or Capital investment/expenditure25% (3) that results in at least a increase in the number of full time and/or part time employees. Ten categories as follows: (1)Number of Years that the Business has been in the Community, (Note: This factor is intended to be irrespective of how many times the business has relocated within the community. The goal is to reward businesses for staying and expanding in La Porte.) (2)Likelihood of the Project to Catalyze Additional Investment, (3)Priority Value of the Project, 3 (4)Percentage Increase in the Number of New Jobs, (5)Payback Period in Years, (6)Amount of Capital Investment as % of the Taxable, Appraised Value (7)Degree of Beautification and Removal of Blight, (8)Location of the Project, (9)Degree of Desirability of the Expanded or New Business, and (10)Age of the Building in Years. 0-5 points scored for each of the ten categories, for a maximum score of 50 points, $7,500 offered for each point scored, and $375,00050% A maximum project award would be either or of the total capital expenditure. lesser The final project award would be the of either the value of the project as determined by the assigned score (i.e. $375,000 or less) or 50% of the total capital expenditure. More specifically, each of the ten (10) categories could be evaluated and scored as follows: Number of Years that the Business has been in the Community 012345 ( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30+) Likelihood of the Project to Catalyze Additional Investment 01234 ( = Unlikely; = Neutral/Unknown; = Somewhat Likely; = Likely; = More Likely; 5 = Most Likely) Priority Value of the Project 012345 ( = Not a Priority; = 1 or 2; = 3 or 4; = 5 or 6; = 7 or 8; = 9 or 10) Percentage Increase in the Number of New Jobs, 0123 45 ( = Less than 20%; = 21-40%; = 41-60%; = 61-80%; = 81-99%; = 100%+) Payback Period in Years 0123 45 ( = More than 10 yrs; = 9 yrs; = 8 yrs; = 7 yrs; = 6 yrs; = 5 or fewer years) Amount of Capital Investment as % of the Taxable, Appraised Value 0123 45 ( = Less than 25%; = 26-40%; = 41-60%; = 61-80%; = 81-99%; = 100%+) Degree of Beautification and Removal of Blight 0123 ( = Insignificant; = Neutral/Unknown; = Somewhat Significant; = Significant; 45 = More Significant; = Most Significant) Location of the Project 012 ( = Not Visible from a Public Street; = Neutral/Unknown; = Somewhat Visible; 4 345 = Visible; = More Visible; = Most Visible) Degree of Desirability of the Expanded or New Business 0123 ( = Undesirable; = Neutral/Unknown; = Somewhat Desirable; = Desirable; 45 = More Desirable; = Most Desirable) Age of the Building in Years 012345 ( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30+) For a sample of the table to compute the score for each project, please refer to the enclosed files Evaluation for Expanding BusinessesSummary Evaluation for Expanding called ““ and “ Businesses ”. Notwithstanding the purpose of this program in accordance with Texas Local Government Code Chapters 501.103 and 501.162, a direct result of this new program will be to encourage new commercial development and/or redevelopment of older commercial properties throughout the City of La Porte. Staff proposes that all projects that wish to apply for a development grant under the terms of this program must also adhere to each of the following criteria: (1)Only the portion of the project, if any, that meets the requirement of the “but for” clause will be considered. (Note: In other words, never give more than the Board has to give to attract a prospective project and/or bring it to fruition.) (2)Only the minimum amount of financial assistance required to bring the project to fruition will be considered. (3)A strict, narrow focus will be maintained for using funds on “infrastructure”, “site improvements”, “related improvements”, and “primary job training”. (4)The incremental tax revenues, including both property and sales tax revenues, to be generated by each project, which may be verified in the quarterly and annual STARS Reports, will be included in the model. (5)The value of number of new jobs associated with each project will be assigned a value and included in the model as follows: 0.15 a.A value of per job will be assigned for higher paying, white collar, primary engineering, engineering design, or executive “ jobs”. 0.125 b.A value of per job will be assigned to highly skilled positions for a process primary technician and/or advanced manufacturing “jobs”. 0.10primary c.A value of per job will be assigned to skilled “ jobs”. 0.075primary d.A value of per job will be assigned to unskilled “ jobs”, and 0non-primary e.A value of per job will be assigned to “ jobs”. (6)The ED Board and/or City Council will retain discretion to award any lesser or greater amount to any given project. Staff would be responsible for screening each applicant according to the minimum, established qualifications. The members of the ED Board would be responsible for scoring each project. Board members and/or staff would average the scores assigned by each Board Member to assign a final score to each project. Approval for each project would require an economic development agreement, plus approval of both the ED Board and the City Council. 5 Action Required by the La Porte Development Corporation Board: Discussion and possible action to offer these two new incentive programs that will promote the development of new or expanded business enterprises in the City of La Porte. Approved for the La Porte Development Corporation Agenda Corby D. Alexander, City Manager Date 6 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 Who źƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞͪ What ķƚĻƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ ķƚͪ 5ƚĻƭ ƷŷĻ ĭƚƒƦğƓǤ ŷğǝĻ ğƓ NAICS Codeͪ If yes, then please provide it. What ķƚĻƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ 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͵ Where ķƚĻƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ Ǟźƭŷ Ʒƚ ķƚ ĬǒƭźƓĻƭƭ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ When ķƚĻƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ Ǟźƭŷ Ʒƚ ƭƷğƩƷ ğƓķ ŅźƓźƭŷ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ Why źƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ źƓƷĻƩĻƭƷĻķ źƓ ĭƚƓķǒĭƷźƓŭ ĬǒƭźƓĻƭƭ Ʒƚ \[ğ tƚƩƷĻͲ Ļǣğƭͪ How Ǟƚǒƌķ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ ƌźƉĻ Ʒƚ ƩĻĭĻźǝĻ ğƭƭźƭƷğƓĭĻ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ğƭƭźƭƷ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ źƓ ƒğƉźƓŭ ğ ŅźƩƒ ĭƚƒƒźƷƒĻƓƷ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ ‘ŷğƷ ğƩĻ ƷŷĻ ĻƭƷźƒğƷĻķ ЋЉЊЌ ƷğǣğĬƌĻ ǝğƌǒĻƭ ƚŅ ƷŷĻ ĻǣźƭƷźƓŭ ƦƩƚƦĻƩƷǤΛźĻƭΜ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƌƚĭğƷźƚƓ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ ‘ŷğƷ źƭ ƷŷĻ ĻƭƷźƒğƷĻķ ƷğǣğĬƌĻ ǝğƌǒĻ Ʒƚ ĬĻ added źƓ \[ğ tƚƩƷĻ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ĭƚƒƦƌĻƷźƓŭ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͪ ŷźƭ Ǟƚǒƌķ źƓĭƌǒķĻ ƷŷĻ ŅƚƌƌƚǞźƓŭʹ ğǣğĬƌĻ ǝğƌǒĻ ƚŅ ĻƨǒźƦƒĻƓƷ Ʒƚ ĬĻ ƩĻƌƚĭğƷĻķͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ new ĻƨǒźƦƒĻƓƷ Ʒƚ ĬĻ ƦǒƩĭŷğƭĻķͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ źƒƦƩƚǝĻƒĻƓƷƭ Ʒƚ ĻǣźƭƷźƓŭ ĬǒźƌķźƓŭƭͪ o ğǣğĬƌĻ ǝğƌǒĻ ƚŅ new 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 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 IƚǞ ƒğƓǤ ƓĻǞ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻΜ Ǟźƌƌ ĬĻ ŷźƩĻķ ğƭ ğ ƩĻƭǒƌƷ ƚŅ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷͪ IƚǞ ƒğƓǤ Ʀğźķ ğƓķΉƚƩ źƓƷĻƩƓ ƦƚƭźƷźƚƓƭ ğƩĻ ƷŷĻ ĭƚƒƦğƓǤ ǞźƌƌźƓŭ Ʒƚ ƩĻƭĻƩǝĻ ŅƚƩ ƭƷǒķĻƓƷƭ ƚŅ \[ğ tƚƩƷĻ Iźŭŷ {ĭŷƚƚƌͪ DĻƓĻƩğƌƌǤ źķĻƓƷźŅǤ ƷŷĻ ĬĻƓĻŅźƷƭͲ źŅ ğƓǤͲ ƷŷğƷ ğƌƌ Ņǒƌƌ ƷźƒĻ ĻƒƦƌƚǤĻĻƭ Ǟźƌƌ ƩĻĭĻźǝĻ Λź͵Ļ͵ ЍЉЊƉͲ ķĻƓƷğƌͲ ƒĻķźĭğƌͲ ǝźƭźƚƓͲ ƭƷƚĭƉ ƚƦƷźƚƓƭͲ ƦƩƚŅźƷΏƭŷğƩźƓŭͲ ĻƷĭ͵Μ͵ /ğƷĻŭƚƩźǩĻ ƷŷĻ ĻƒƦƌƚǤĻĻƭ ΛĬƚƷŷ Ņǒƌƌ ƷźƒĻ ğƓķ ƦğƩƷ ƷźƒĻͳ ĬƚƷŷ ƩĻƌƚĭğƷĻķ ğƓķ ƓĻǞ ŷźƩĻƭΜ ĬǤ ƆƚĬ ƷźƷƌĻΉƷǤƦĻ ƚŅ ǞƚƩƉ ğƓķ ǞğŭĻΉƭğƌğƩǤ ƌĻǝĻƌ͵ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͪ LƓ ƚƷŷĻƩ ǞƚƩķƭͲ ǞźƷŷƚǒƷ ƷŷĻ ğƭƭźƭƷğƓĭĻ ƚŅ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓͲ ǞŷǤ ƒźŭŷƷ ƓƚƷ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ ‘ŷğƷ ŅƚƩƒΛƭΜ ğƓķ ğƒƚǒƓƷΛƭΜ ƚŅ źƓĭĻƓƷźǝĻƭ ķƚĻƭ ΝĭƚƒƦğƓǤ ƓğƒĻ ŷĻƩĻΞ Ǟźƭŷ Ʒƚ ƩĻƨǒĻƭƷ ŅƩƚƒ ƷŷĻ \[ğ tƚƩƷĻ 5ĻǝĻƌƚƦƒĻƓƷ /ƚƩƦƚƩğƷźƚƓ Ʒƚ ĬĻ ğĬƌĻ Ʒƚ ĭƚƒƦƌĻƷĻ ƷŷĻ ƦƩƚƦƚƭĻķ ƦƩƚƆĻĭƷ źƓ \[ğ tƚƩƷĻͲ Ļǣğƭͪ BUSINESS.BY THE BAY. Evaluation for Expanding Businesses EVALUATOR: EVALUATION DATE: TOTAL POINTS AWARDED (50 points possible): Applicant Information APPLICATION DATE: BUSINESS NAME: CONTACT NAME: BUSINESS ADDRESS: PHONE: EMAIL: Please evaluate the application for the above-named business, using the following criteria. For each item, please rate the project being proposed using a scale of 1 to 5, where 1 means that the applicant has not met the criteria in any way, and 5 means that the applicant has met the criteria completely. Please circle the appropriate response for each item. 1. Number of Years that the Business has been in the Community 012345 ( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30+) 1 2 3 4 5 2. Likelihood of the Project to Catalyze Additional Investment Λ Љ ў ƓƌźƉĻƌǤͳ Њ ў bĻǒƷƩğƌΉ ƓƉƓƚǞƓͳ Ћ ў {ƚƒĻǞŷğƷ \[źƉĻƌǤͳ Ќ ў \[źƉĻƌǤͳ Ѝ ў aƚƩĻ \[źƉĻƌǤͳ Ў ў aƚƭƷ \[źƉĻƌǤΜ 1 2 3 4 5 3. Priority Value of the Project Λ Љ ў bƚƷ ğ tƩźƚƩźƷǤͳ Њ ў Њ ƚƩ Ћͳ Ћ ў Ќ ƚƩ Ѝͳ Ќ ў Ў ƚƩ Џͳ Ѝ ў А ƚƩ Бͳ Ў ў В ƚƩ ЊЉΜ 1 2 3 4 5 BUSINESS. BY THE BAY. 604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470-5016 BUSINESS.BY THE BAY. 4. Percentage Increase in the Number of New Jobs 0123 45 ( = Less than 20%; = 21-40%; = 41-60%; = 61-80%; = 81-99%; = 100%+) 1 2 3 4 5 5.Payback Period in Years 0123 45 ( = More than 10 yrs; = 9 yrs; = 8 yrs; = 7 yrs; = 6 yrs; = 5 or fewer years) 1 2 3 4 5 6.Amount of Capital Investment as % of Taxable, Appraised Value 0123 45 ( = Less than 25%; = 26-40%; = 41-60%; = 61-80%; = 81-99%; = 100%+) 1 2 3 4 5 7.Degree of Beautification and Removal of Blight Λ Љ ў LƓƭźŭƓźŅźĭğƓƷͳ Њ ў bĻǒƷƩğƌΉ ƓƉƓƚǞƓͳ Ћ ў {ƚƒĻǞŷğƷ {źŭƓźŅźĭğƓƷͳ Ќ ў {źŭƓźŅźĭğƓƷͳ Ѝ ў aƚƩĻ {źŭƓźŅźĭğƓƷͳ Ў ў aƚƭƷ {źŭƓźŅźĭğƓƷΜ 1 2 3 4 5 8.Location of the Project Λ Љ ў bƚƷ źƭźĬƌĻ ŅƩƚƒ ğ tǒĬƌźĭ {ƷƩĻĻƷͳ Њ ў bĻǒƷƩğƌΉ ƓƉƓƚǞƓͳ Ћ ў {ƚƒĻǞŷğƷ źƭźĬƌĻͳ Ќ ў źƭźĬƌĻͳ Ѝ ў aƚƩĻ źƭźĬƌĻͳ Ў ў aƚƭƷ źƭźĬƌĻΜ 1 2 3 4 5 9.Degree of Desirability of the Expanded or New Business Λ Љ ў ƓķĻƭźƩğĬƌĻͳ Њ ў bĻǒƷƩğƌΉ ƓƉƓƚǞƓͳ Ћ ў {ƚƒĻǞŷğƷ 5ĻƭźƩğĬƌĻͳ Ќ ў 5ĻƭźƩğĬƌĻͳ Ѝ ў aƚƩĻ 5ĻƭźƩğĬƌĻͳ Ў ў aƚƭƷ 5ĻƭźƩğĬƌĻΜ 1 2 3 4 5 10.Age of the Building in Years 012345 ( = Fewer than 10; = 10-15; = 16-20; = 21-25; = 26-30; = 30+) 1 2 3 4 5 BUSINESS. BY THE BAY. 604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470-5016 Average Score ) # of Evaluations 0 Total Average Score (out of 5 5016 Total Score Summary Evaluation for Expanding Businesses - , Texas 77571 (281) 470 Initial Review Date: . BY THE BAY Mail: - 604 W. Fairmont Parkway La Porte E BUSINESS. Investment as % of Taxable, Appraised Value of Years that the Business has been in the Community of the Project to Catalyze Additional Investment Degree of Desirability of the Expanded or New Business New Jobs Degree of Beautification and Removal of Blight Criteria BY THE BAY. of Percentage Increase in the Number Priority Value of the Project in Years Payback Period in Years Location of the Project Building Amount of Capital Business Address: Application Date: Business Name: Contact Name: BUSINESS. Age of the Likelihood Number Phone: REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEMITEM August 26, 2015August 26, 2015AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: Source of Funds:Source of Funds: Scott LivingstonScott Livingston Requested By:Requested By: Account Number:Account Number: Economic Development/TourismEconomic 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 Introduction Project Introduction 2. Presentation Presentation 3. Project Bids Project Bids 4. Tax Records Tax Records SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS As of 1 January 2015, the real property taxable value of FischerAs of 1 January 2015, the real property taxable value of Fischer’’s Do It Best Hardware (Fischers Do It Best Hardware (Fischer’’s) is $1,408,955, s) is $1,408,955, while the business personal property taxable value is approximately $160,000.  Therefore, the current total taxable while the business personal property taxable value is approximately $160,000.  Therefore, the current total taxable value of Fischervalue of Fischer’’s is estimated to be $1,568,955.   s is estimated to be $1,568,955.    The owners of FischerThe owners of Fischer’’s are proposing to invest $1.4 million, which is equivalent to 90% of the businesses current s are proposing to invest $1.4 million, which is equivalent to 90% of the businesses current taxable value, to expand the hardware store on the northwest corner of W. Fairmont Parkway and S. Broadway in taxable value, to expand the hardware store on the northwest corner of W. Fairmont Parkway and S. Broadway in La Porte, TX.  Of this sum, the owners will invest approximately $450,000 to purchase new retail inventory, which La Porte, TX.  Of this sum, the owners will invest approximately $450,000 to purchase new retail inventory, which is also taxable business personal property.  The remaining $1 million will be used to remodel both the interior and is also taxable business personal property.  The remaining $1 million will be used to remodel both the interior and exterior of the building to provide an updated appearance by completing the following projects:  exterior of the building to 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 structures,Add paint and signage to the new structures, Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 square feet,square feet, Add new, interior fixtures & lumber fixtures for expansion,Add new, interior fixtures & lumber fixtures for expansion, Add new, interior signage and fixtures,Add new, interior signage and fixtures, Repaint the pole sign and add new graphic signage.Repaint the pole sign and add new graphic signage. Re-seal and reseal and re--strip the parking lot,strip the parking lot, Re-pave the area which is currently covered on the south side of the building, andpave the area which is currently covered on the south side of the building, and Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole and add stucco finish to match the building. and add stucco finish to match the building.  Since the ED Board may hold the project principals accountable for completing each of the identified Since the ED Board may hold the project principals accountable for completing each of the identified projects and spending a minimum amount on new taxable business personal property (i.e. retail inventory), projects and spending a minimum amount on new taxable business personal property (i.e. retail inventory), “infrastructureinfrastructure””, , ““site improvementssite improvements””, , and and ““other related improvements, written bids are neither required other related improvements, written bids are neither required nor necessary for this project.  However, for your information, the proposed project expenses may be nor necessary for this project.  However, for your information, the proposed project expenses may be itemized as follows: itemized as follows:  Spend $761,854  (i.e. $708,854 + $53,000) for building renovation/construction,Spend $761,854  (i.e. $708,854 + $53,000) for building renovation/construction, Spend $467,500 on retail inventory (i.e. $450,000 + $17,500), andSpend $467,500 on retail inventory (i.e. $450,000 + $17,500), and Spend $92,873.84 on interior furniture, fixtures, and equipment,Spend $92,873.84 on interior furniture, fixtures, and equipment, Spend $50,000 to resurface and stripe the parking lot, *Spend $50,000 to resurface and stripe the parking lot, * Spend $20,000 on exterior/street signage, *Spend $20,000 on exterior/street signage, * Spend $18,685.44 on interior signage,Spend $18,685.44 on interior signage, Spend $10,000 for new flower beds and landscaping, *Spend $10,000 for new flower beds and landscaping, * Estimated total is $1,420,913.28 (i.e. $761,854 + $467,500 + $92,873.84 + $50,000 + $20,000 + $18,685.44 + Estimated total is $1,420,913.28 (i.e. $761,854 + $467,500 + $92,873.84 + $50,000 + $20,000 + $18,685.44 + $10,000) $10,000)  Note:  * Written bids were not submitted. Note:  * Written bids were not submitted.  As a direct result of this expansion and the associated improvements, the project principals anticipate that their As a direct result of this expansion and the associated improvements, the project principals anticipate that their taxable retail sales may increase by as much as 20%.  In addition, the projecttaxable retail sales may increase by as much as 20%.  In addition, the project principals are planning to hire 7 to 10 new employees as a result of this expansion.  Of these new employees, 4 to principals are planning to hire 7 to 10 new employees as a result of this expansion.  Of these new employees, 4 to 5 will be “full timefull time””and the remaining will be and the remaining will be ““partpart--timetime””employees.  3 to 4 of the employees.  3 to 4 of the ““full timefull time””employees will be employees will be categorized as categorized as ““managementmanagement””.   .    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,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 LaLocally owned business with deep roots in in La Porte, and 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.  The project principals request an economic development grant in the amount of $350,000.  The boardThe project principals request an economic development grant in the amount of $350,000.  The board’’s decision s decision and grant award will determine whether or not they will spend the full amount or reduce the scope of the proposed and grant award will determine whether or not they will spend the full amount or reduce the scope of the proposed project.  Staff recommends that the ED Board consider using the proposed, new incentive program for new businesses, Staff recommends that the ED Board consider using the proposed, new incentive program for new businesses, which was presented to the ED Board earlier this evening, as a basis by which to evaluate this project for which was presented to the ED Board earlier this evening, as a basis by which to evaluate this project for incentive grant award.   incentive grant award.    Proposed terms and conditions that may be included in a future development agreement for this project may be the Proposed terms and conditions that may be included in a future development agreement for this project may be the following:  Invest at least $1 million in new business personal property plus Invest at least $1 million in new business personal property plus ““infrastructure and other related infrastructure and other related improvementsimprovements””,, Hire at least seven (7) new employees,Hire at least seven (7) new employees, Complete all projects as identified in the proposed project, andComplete all projects as identified in the proposed project, and Complete all work to the satisfaction of the CityComplete all work to the satisfaction of the City’’s Building Inspection Department before the expiration of s Building Inspection Department before the expiration of the term of the development agreement, which is anticipated to be eighteen (18) months from the date on the term of the development agreement, which is anticipated to be eighteen (18) months from the date on which the proposed development agreement is approved by the La Porte City Council.which the proposed development agreement is approved by the La Porte City Council. 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.exceed $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͵ $1.4 million to expand their existing business in La Porte, TX͵ The owners will invest approximately $450,000 to purchase new taxable retail inventory for the expanded store. The owners will use the remaining amount of approximately $1 million to remodel both the interior and exterior of the building to 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, Remove the block wall between the existing build and Little Jacks to increase square footage by 15,000 square feet, Add new, interior fixtures & lumber fixtures for expansion, Add new, interior signage and fixtures, Repaint the pole sign and add new graphic signage. Re-seal and re-strip the parking lot, Re-pave the area which is currently covered on the south side of the building, and Add new flower beds and landscaping, including a block flower bed at the bottom of the exterior sign pole and add stucco finish to match the building. 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 ƦƩƚƆĻĭƷͪ Fischers Hardware would like to start the project as soon as possible and have the project completed within six months. 3 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 ED 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 current, total 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 owners are planning to invest $1.4 million, which is equal to 90% of the current, taxable value of the property, to renovate and expand the existing building, purchase new taxable retail inventory, purchase new interior furniture, fixtures, and equipment, purchase new interior and exterior signage, re-pave and re-stripe the parking lot, and add additional landscaping. 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. Of these new - 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͵ 4 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. full amount or reduce the scope of the proposed project. 5 La Porte, Texas 77571 1012 S. Broadway Rod Rothermel 0171 - (281) 470 Owner frkherrera@yahoo.com La Porte, Texas 77571 1012 S. Broadway Frank Herrera fischershardware@gmail.com La Porte, Texas 77571 Michael Breaux 0171 - (281) 470 Owner REQUEST FOR LA PORTE DEVELOPMENT CORPORATION AGENDA ITEM Budget Agenda Date Requested: 26 August 2015 Source of Funds: ED Board’s General Requested By: Scott D. Livingston Fund Balance Department: Economic Development Account Number: N/A Report: Resolution: Ordinance: Amount Budgeted: N/A Amount Requested: $400,000 Exhibit: Project Introduction Budgeted Item: YES NO Exhibit: Proposed Lease Terms Exhibit: Conceptual Drawings Exhibit: Proposed Floor Plan Exhibit: Background Info & Articles Exhibit: Artwork SUMMARY & RECOMMENDATION The Brigadoon Brewery & Brew School, LLC (Brewery) is interested in leasing the city- owned, former Texas Parks & Wildlife (TPW) building and the undeveloped lot immediately adjacent to the TPW building. Staff understands that it will cost approximately $270,000 to $280,000 to renovate the former TPW building and make it suitable as a “white box” for a prospective tenant. In order to account for unexpected expenses to renovate the building, staff proposes that the estimated cost to renovate the TPW building in this discussion should be established at $400,000. The purpose of this project is to attract a new business to the Main Street District that will facilitate the re-vitalization and re-development of the Main Street District, attract new visitors to both the Main Street District and the City of La Porte, and stimulate new restaurant, retail, and entertainment investment in both the Main Street District and City of La Porte. The proposed project falls into the incentive program for “New Businesses”, and the proposed re-payment mechanism for the 10 year payback would be tied to the cash stream from the lease payments and taxes paid to the City of La Porte. Based upon the best estimates known at this time, the estimated payback period for the proposed project is 6 years for a grant of $300,000, 7 years for a grant of $350,000, and 8 years for a grant of $400,000. Project Details Brigadoon Brewery & Brew School, LLC The majority owner of the has lived in La Porte since 1996, and his wife has lived here since 1986. Three of their children have graduated from LPISD, and their fourth child is scheduled to graduate from LPHS in the spring of 2016. 1 The Brewery would like to bring a brewpub/production brewery to the historic district of La Porte in order to increase visitor traffic to both the Main Street District and the City of La Porte. The Brewery would produce beer for both wholesale and retail sales and augment their tap room sales with other Texas craft beers. The Brewery will offer a larger selection of craft beers that will allow it to tap into the customer share of other Texas craft breweries. Therefore, a visitor to their establishment could enjoy not only a Brigadoon beer, but also other Texas craft beers as well. These types of special events would attract 300 to 800 visitors to La Porte every Saturday for tastings with numbers expanding beyond 1,000 for special events. In the event that the Brewery would be allowed to occupy the former TPW every beer bottle and keg sold would by law building and relocate to the City of La Porte, have a label stating that it was brewed in La Porte, TX . Please note the enclosed samples of artwork of bombers the Brewery uses to sell its product at the Texas Renaissance Festival. th In the April 2014 issue of the Men’s Journal, the Brewery was rated as the 5 Best Brewery Tour to take in the United States, and it was the only Texas brewery to be ranked. In 2010, Ehow listed the Brewery as one of four recommended brew schools in the United States. For more detailed information about this proposed project, please refer to the enclosed files and visit www.brigadoonbrewery.com . consider In order to facilitate this opportunity, please the following: Board Board of the La Porte Development Corporation = City City of La Porte = Brewery Brigadoon Brewery & Brew School, LLC = TABC Texas and Alcohol Beverage Commission = TTB U.S. Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau = Board Themay wish to consider: o Committing up to $400,000 to renovate the former TPW building, bring it up o to code, and create a “white box” for a prospective tenant. City The would: o Retain ownership of the TPW building, o Investigate all necessary repairs that need to be made to the TPW building, o Obtain estimates to renovate the TPW building (which may include but not be o limited to items such as asbestos abatement, mold remediation, and roof repairs), bring it up to code, and create a “white box” for a prospective tenant, Undertake all responsibility to design, procure both bids and contractors, and o oversee the necessary work to renovate the TPW building, Renovate the former TPW building and attract the Brewery to the site, o Bring the building and drive up to current code to meet any and all City, Countyand o National requirements, Install one (1) roll up door in the back room, and open the back room up by o removing the non-load bearing wall just outside the vault, Repair and paint all interior walls white, o Remove the ceiling grid, and paint the ceiling black with sound proofing/insulation, o Remove the vault, o Maintain all large maintenance items such as the HVAC, roof, walls/building o structure, foundation, utility service lines to and through the foundation of the property, and parking lot, 2 Give the Brewery permission to post public notice on the TPW building for 60 o days regarding its intent to apply for TABC and TTB permits, and Enter into a lease agreement with the Brewery, and o Receive the lease payments, plus all the taxes paid/rendered for all real and o business personal property at the TPW building, and Render to the other taxing authorities the taxes due for the renovated building. o Brewery The would: o Apply for the necessary permits from the TABC and TTB at the subject location, o Lease the TPW building and allcityowned land immediately adjacent to the o TPW building, excluding 5 PointsPlaza, for a five (5) year period with three (3), one (1) year options to extend thelease. Each of the three (3), one (1) options to extend the term of the lease will contain a clause that allows the City to increase the lease rate, Pay a monthly lease $4,680/month,which includes real property taxes and o insurance for the 3,820 sf building and the cityownedland immediately adjacent to the TWP building, excluding 5 Points Plaza, Pay the total amount of the required taxes for all the business personal property o owned by the Brigadoon Brewery & Brew School, LLC, Retain a first rightofrefusal to purchasethe TPW building and all cityowned o land immediately adjacent to the TPWbuilding, excluding 5 Points Plaza, if/when the City wishes to sell the propertyduring the term of the lease, Retain the right to renovate thebuilding, with the express written permission of o the City Manager, to meet business needs at its expense, and Be responsible for routinemaintenance and upkeep of the building, including o mowing the cityowned landimmediately adjacent to the TPW building. Other important information: The Brewery must physically post notice for 60 days on the subject property o regarding its plans to apply for TABC and TTB permits before it may apply for the TABC and TTB permits, The Brewery must have a signed lease before it can apply for the required TABC o and TTB permits for the subject location, In the unforeseen event that the Brewery does not receive the required TABC and o TTB permits, it must be released from the lease, and Therefore, staff recommends that funds should not be spent to renovate the TPW o building until the Brewery has received all the required permits from both the TABC and TTB. If the ED Board supports the proposed project, then Please vote to authorize staff to post the required 60 day public notice of proposed o action by the Board to approve the expenditure of up to $400,000 to renovate the TPW building, and Vote to recommend this proposed project to the City Council for approval on o Mon., 14 September 2015. City Council If the likes the proposed project and gives both staff and the Brewery permission to move forward, then a proposed timeline for future action is as follows: 3 The City Council will vote on Monday, 14 September 2015 to give the Brewery o permission to physically post public notice on the TPW building for 60 days regarding its intent to apply for TABC and TTB permits, Staff will work with the City Attorney and Brewery to draft the lease agreement o (between the Brewery and the City) and development agreement (between the City and ED Board) for consideration and future approval by all affected parties, While the lease and development agreements are being drafted, the City will o investigate the total cost to renovate the TPW building and post a Request for Proposals to solicit bids from qualified contractors, Complete the 60 day public notice as required to apply for TABC and TTB permits, o Complete the Board’s 60 day required public notice, o Board considers the opportunity to commit funds upon execution of both the lease o agreement and the development agreement, City will consider approving both the lease agreement and the development o agreement (Note: the lease agreement will contain a clause that releases the Brewery from the lease, in the event that the Brewery is unable to acquire the required permits from the TABC and/or TTB), With an executed lease agreement, the Brewery will apply for both TABC and o TTB permits, The Brewery will submit its interior construction/building drawings to the City o for approval, Once the Brewery receives the required TABC and TTB permits, then the City o will authorize the contractor to proceed with the planned work to renovate the TPW building, The city inspection department will consider approving all renovations to the o TPW building, and The Brewery will make its first, monthly lease payment to the City of La Porte o once all renovation work on the TPW building has been completed and approved by both the city’s building inspections staff and Brewery. Please give staff direction regarding this proposed project, and please consider authorizing staff to publish public notice for 60 days for a future public hearing, during which the Board will consider approving an expenditure of up to $400,000 to attract the Brigadoon Brewery & Brew School, LLC to La Porte, TX. Action Required by the La Porte City Council: 1)Give staff direction regarding this proposed project to renovate the former TPW building and attract the Brigadoon Brewery & Brew School, LLC, to La Porte, TX, and 2)Consider approval and/or other action authorizing staff to publish public notice for 60 days for a future public hearing, during which the Board will consider approving an expenditure of up to $400,000 to renovate the former TPW building, and attract the Brigadoon Brewery & Brew School, LLC to La Porte, TX, and 3)Consider approval and/or other action to recommend this proposed project to the City Council for approval. 4 Approved for the La Porte City Council Agenda Corby D. Alexander, City Manager Date 5 Brigadoon Brewery La Porte Proposal to Occupy and Lease the Texas Parks & Wildlife Building 31 July 2015 The majority owner of the Brigadoon Brewery & Brew School, LLC has lived in La Porte since 1996, and his wife has lived here since 1986. They have had 3 children pass through the LPISD school system and their fourth child is scheduled to graduate LPHS in the spring of 2016. They have a strong desire to rejuvenate downtown La Porte by making it a tourist attraction. The Brigadoon Brewery & Brew School, LLC (Brewery) is a brewpub and teaching facility that operates under the following NAICS codes: 1.31212 --Brewery, 2.445 -- Food Beverage Stores, 3.611519 -- Other Technical and Trade School, 4.312111 -- Soft Drink and Ice Manufacturing, 5.722410 -- Drinking Places (Alcoholic Beverages), 6.7225 -- Restaurants and Other Eating Places. The Brewery (see www.brigadoonbrewery.com) would like to bring a brewpub/production brewery to the historic district of La Porte in order to increase visitor traffic to both the Main Street District and the City of La Porte. The Brewery would produce beerfor both wholesale and retail sales and augment their tap room sales with other Texas craft beers. The Brewery will offer a larger selection of craft beers that will allow it to tap into the customer share of other Texas craft breweries. Therefore, a visitor to their establishment could enjoy not only a Brigadoon beer, but also other Texas craft beers as well. This business model will appeal to a broader market, and it will allow the Brewery to host special events to highlight Texas craft breweries besides their own. For example, the Brewery might host multiple, special event nights when Brock Wagner, the Owner of Saint Arnold, or Fritz Rahr, the Owner of Rahr and Sons, would visit the Brewery and host a tasting of their craft beers. These types of special events would drive more visitors to La Porte. They believe that they would attract 300 to 800 visitors to La Porte every Saturday for tastings with numbers expanding beyond 1,000 for special events. These numbers are estimates which are derived from what both the Brewery and other breweries in the Greater Houston Area regularly experience each Saturday. In the Best Brewery Tour to April 2014 issue of the Men’s Journal, the Brewery was rated as the 5 th take in the United States, and it was the only Texas brewery to be ranked. In 2010, Ehow listed the Brewery as one of four recommended brew schools in the United States. See the articles online at: www.mensjournal.com/expert-advice/americas-best-brewery-tours-20140403 and www.ehow.com/list_6930631_beer-brewing-schools.html. Other articles are available on the brewery’s website at: www.brigadoonbrewery.com/PressPhotos.html. 1 Brigadoon Brewery La Porte Proposed Uses Produce brew beer and ale for both wholesale and retail sales. Distribute beer and ale in Kegs, bottle and cans for offsite sales in to the three tier system (bars, stores, etc.) through contracted distributors. Offer on-site sales with drinking on site. Offer on-site take away sales in State approved containers, which is key to increase tourist visits. Possibly offer a small kitchen to serve hamburgers, nachos, fries, etc. Offer Education/Training in: Tasting Classes o Beer Education o Brewing training possibly in conjunction with San Jacinto Jr. College TABC Server Courses Manufacture homemade root beer in kegs and approved containers for onsite and offsite sales. Offer Saturday Tours and tastings. Host special events one (1) Saturday each month. Rent out the Brewery for private events like birthdays, fundraisers, and corporate functions. Proposed Schedule The Brewery envisions working with the City to ensure that any and all events, by or with either party, will not conflict with any other proposed events at 5 Points Plaza. All Brewery events will be family friendly, and the Brewery will hire off-duty La Porte police officers to work all events. Possible special events might be: Oktoberfest (October) o St. Patrick’s Day (March) o Mardi Gras (February) o 4 of July (July) th o Memorial Day (May) o Tastings for Texas craft breweries including the Brigadoon Brewery and others o Saturday Tours (noon- 5pm) with the tasting room open until 9:00 pm. Brewing and Training would occur throughout the week as needed, but most likely from 8:00 am to 9:00 pm. 2 Brigadoon Brewery La Porte The Brewery wishes to investigate the possibility of hosting a special event one(1) Saturday each month for the SPCA, Breast Cancer Awareness, etc. They could be coordinated to coincide with the City’s Sip & Strolls, if the City wanted. The idea is to allow different organizations the opportunity to do a bazaar-like event with the proceeds going to support that charity. The Brewery is not planning to host live music events. However, if/when the City expressed an interest in hosting live music events, the Brewery is willing to discussing this opportunity. Tap room hours will be Tuesdays - Fridays from 4:00 pm to 9:00 pm, and Saturdays from noon to 9:00 pm. Closed to the public on Sundays and Mondays. If there is a big enough demand, we would consider expanding days. In order to accommodate private parties, anniversaries, birthday parties, corporate events, wedding receptions, etc., the Brewery may request permission as neededto stay open until 10:00 pm or so, but never later than midnight, which would require an additional TABC permit. If the City wanted an earlier closing time, the Brewerywould, of course, accommodate. Proposed Benefits to the City 12 full time and part time employees will be re-located as a result of this project. Also, 12 to 24 new full time and part time employees would be hired as result of this project. One of the Brewery’s registered NAICS codes is 31212 – Brewery, which means that at least one or moreof its jobs may be characterized as “primary jobs”, according to the state statutes that govern the use of 4B funds. The Brewery estimates that it will generate approximately $353,663 in gross taxable sales each year. These sales do not include food, if the Brewery electsto add a smallkitchen, or sales from guest taps. The estimated taxable property value to be added in La Porte as a result of completing the proposed project in La Porte includes the following: Taxable value of equipment to be relocated: $100,000 o Taxable value of new equipment to be purchased: $150,000 -$200,000 o Taxable value of improvements to be made to the existing building: $50,000 o Based upon the Brewery’s own experience, and the experiences of other breweries in the Greater Houston Area, the Brewery estimates that it will attract 300 to 800 visitors to La Porte’s Main Street District every Saturday for tastings. Approximately 1,000 visitors are expected for special events. Also, every beer bottle and keg sold would by law have a label stating that it was brewed in La Porte, TX. See attached example for the bombers we sell from product produced at the Texas Renaissance Festival. 3 Brigadoon Brewery La Porte Proposed Improvements to the Property to be Made by the Brewery 1)Fence in the city-owned property (i.e. the grassy field) on the east side of the TPW building to usefor special events and investigate the possibility of adding a small stage or platform for use during the special events. 2)Add a small fenced area inside the larger fenced are to place a storage container, per the city’s requirements, to hold items as they arrive until the renovations are completed in the building. Proposal The Brewery does not have the funds available at this time to purchase and renovate the TPW building, plus the surrounding property owned by the City, and the needed equipment for the Brewery. Therefore, the Brewery wishes to offer the following general proposal for consideration: (Please see the next page to continue) 4 ЌЊ WǒƌǤͲ ЋЉЊЎ City of La Porte City Hall 604 W. Fairmont Parkway La Porte, Texas 77571 wĻʹ tƩƚƦƚƭğƌ Ʒƚ \[ĻğƭĻ ƷŷĻ Ļǣğƭ tğƩƉƭ ε ‘źƌķƌźŅĻ .ǒźƌķźƓŭ To Whom it May Concern: This letter serves to express interest on behalf of Brigadoon Brewery & Brew School, LLC, in leasing the Cityowned building known as the TPW building located at 102 E. Main Street in La Porte, Texas and the adjacent field. Brigadoon Brewery & Brew School LLC is a Limited Liability Company which has operated a brewpub and brew school on the grounds of the Texas Renaissance Festival in Plantersville, Texas for the last seven years. Due to the exciting growth in the craft beer industry, we are looking to expand to an additional large facility in order to meet current and future production needs. After carefully evaluating fairmarket value we propose the following terms for your consideration (this proposal is subject to negotiation and not intended to be binding): The /źƷǤ ƚŅ \[ğ tƚƩƷĻ would: Retain ownership of the TPW building, Investigate all necessary repairs that need to be made to the TPW building, Obtain estimates to renovate the TPW building, bring it up to code, and create a prospective tenant, Undertake all responsibility to design, procure both bids and contractors, and oversee the necessary work to renovate the TPW building, Abate all asbestos, Remove all mold, Repair or reroof the building, Bring the building and drive up to current code to meet any and all City, County and National requirements, Install one (1) roll up door in the back room, and open the back room up by removing the non-load bearing wall just outside the vault, Repair and paint all interior walls white, Remove the ceiling grid, and paint the ceiling black with sound proofing/insulation, Remove the vault, and 1 Maintain all large maintenance items such as the HVAC, roof, walls/building structure, foundation, utility service lines to and through the foundation of the property, and parking lot. The .ƩźŭğķƚƚƓ .ƩĻǞĻƩǤ ε .ƩĻǞ {ĭŷƚƚƌͲ \[\[/ would: Lease the TPW building and all cityowned land immediately adjacent to it, excluding 5 Points Plaza, for a five (5) year period with three (3), one (1) year options to extend the lease. Each of the three (3), one (1) year options to extend the term of the lease will contain a clause that allows the City to increase the lease rate. Pay a monthly lease $4,680/month, which includes real property taxes and insurance for the 3,820 sf building and the cityowned land immediately adjacent to the TWP building, excluding 5 Points Plaza. Pay the total amount of the required taxes for all the business personal property owned by the Brigadoon Brewery & Brew School, LLC. Retain a first rightofrefusal to purchase the TPW building and all cityowned land immediately adjacent to the TPW building, excluding 5 Points Plaza, if/when the City wishes to sell the property during the term of the lease. Retain the right to renovate the building, with the express written permission of the City Manager, to meet to meet business needs at its expense. Be responsible for routine maintenance and upkeep of the building, including mowing the cityowned land immediately adjacent to the TPW building. I am excited at the prospect of leasing the abovementioned property and feel that Brigadoon Brewery would be an asset to the City. If you have any questions about this proposal of leasing terms or our business, please contact me at 2817107560 or by email at: warda@brigadoonbrewery.com. Thank you for taking the time to consider this proposal. I look forward to a prompt and favorable reply. Respectfully submitted, Alan Ward Managing Member / Brewmaster Brigadoon Brewery & Brew School LLC Office Cell 2 Kitchen Area Brigadoon Brewery 5 Points Lab Area Brigadoon Brewery 5 Point Event Area Fenced Brigadoon Brewery 5 Points Fenced event area. Brigadoon Brewery 5 Points Fenced event area. Fenced event area and Stage. Brigadoon Brewery 5 Points cket booth. Brigadoon Brewery 5 Points Fenced event area with stage and cket booth. Brigadoon Brewery 5 Points Fenced event area with stage and Attached are some recent articles about “Craft Breweries”. Please note the following: Each one of these breweries is going either in a trendy, cool, new location (like Cypress, TX) or a retro, cool, historic place “downtown” (see all the other articles), It’s very common for communities to offer incentives to attract a craft brewery to the community, In our particular situation, we have what I call a “hometown hero” (i.e. a local entrepreneur) who could go anywhere, and has been pulled to other places, but he wants to put his brewery in his own hometown, Our “hometown hero” is not asking for one (1) cent of incentives; instead, he’s offering to paya market rate (about $1.23/sf, which is certainly on the higher end of the market for downtown space) to lease the TPW building, In its current condition, the TPW building is not “operable” lease space, and it needs about $280,000 amount of work to renovate before we can lease it to a prospective tenant, Therefore, the basic idea behind the proposal that will go to the ED Board on 26 Aug. is for the ED Board to pay the costs to renovate the TPW building and make it operablespace for a tenant to lease, The brewery has already expressed interest in leasing the TPW building. Therefore, the ED Board’s investment would not be speculative, The current proposal going to the ED Board on 26 Aug. is to use the brewery’s lease payments and property taxes to pay back the ED Board the costs incurred to renovate the TPW building, Craft breweries draw tourists and help with community branding/marketing, and downtown revitalization, and Every bottle of beer that the brewery produces will say made in La Porte, TX (just like Shiner Bock is made in Shiner, TX, etc.) Background comments regarding the From the perspective of the City Council, the City can’t just “give away” (either literally or figuratively) the TPWbuilding, because it’s estimated appraised value in its current condition is approximately$262,000. The estimated cost to renovate the TPW building is $270,000 -$280,000, and the cost could be higher due to unforeseen issues. One option is for someone to buy the TPW building and renovate the building at their own expense. The estimated cost of this option is $600,000. No buyer has yet expressed interest in this option. Another option of for someone to buy the TPW building, demolish it, and develop their own project. The estimated cost of this option is $300,000, plus the cost to demolish, plus the cost to build a new building. No buyerhas yet expressed interest in this option. Therefore, we have a $262,000 building that no one has yet expressed interest in buying or leasing,unless/until someone spends approximately $270,000 -$280,000 to renovate the building. 1 The Brewery likes the idea of being close to 5 Points Plaza, as opposed to some other location in La Porte. Staff believes that the Brewery will generate and attract a lot of new tourism, plus new attractive branding/marketing (i.e. “buzz”) for the Main Street District and the City of La Porte in general. The Brewery has limited capital, so it cannot afford to buy the TPW building and grassy lot, plus renovate the existing building, or build a new building. The Brewery would make an offer to purchase the grassy lot between the TPW building and S. Virginia Street, if the City Council will sell the lot apart from the TPW building. Staff’s understanding, however, is that the City Council wants to sell the grassy lot and the TPW building together. From the perspective of the Brewery, the asking price for the TPW building and grassy lot for approximately $300,000 is too much, if the Brewery merely plans to demolish the building and construct a new building. From the perspective of the Brewery, the asking price for the TPW building and grassy lot for approximately $300,000 is too much, if the Brewery has to spend approximately $280,000 to renovate the building. The current proposal presents an opportunity to make everyone “whole” by accomplishing the following: (1) the City Council receives a renovated building that becomes operable lease space for a desired tenant next to 5 points, (2) the Community will get its money back through the lease payments and taxes on the building in 6 to 8 years (assume $50,000/year), (3) the Brewery gets space that it can afford and try-out for a defined period of time, and (4) Main Street/City of La Porte receives new tourism, branding/marketing, patrons at city events at 5 Points and in the restaurants, and sales tax by having the Brewery at 5 Points. After the cost of the renovations has been repaid in 6 to 8 years, we can discuss what to do next. Future options might be to continue leasing the building to the Brewery, sell the building to the Brewery, lease the building to someone else, sell the building to someone else, etc. The key point is that the building, unlike its current condition today, will be operable lease space for a desirable tenant. Therefore, the goals for the public meetings (ED on 24 Aug. and, tentatively speaking, the City Council on 14 Sept. 2015) on this project are to: 1) Determine whether or not the City Council, ED Board, and Community are okay with the proposed “use” for the TPW building/space, 2) Determine whether or not the City Council, ED Board, and Community are okay with the proposed “User” (Alan Ward, Brigadoon Brewery, etc.), and 3) Determine the level of interest the City Council, ED Board, and Community to support the current proposal, and 4)Consider other constructive ideas/options that may surface as a result of hosting the discussion on the proposed project. 2 www.chron.com/neighborhood/spring/business/article/Brewpub-sets-sights-on-Tomball- 6089881.php By Bryan Kirk | February 19, 2015 Fire Ant Brewing Co. has announced plans to build a restaurant and brewery in downtown Tomball. Tomball is considering an ordinance that will allow a brewpub to open near the city's historic depot. The downtown area is considered a mixed-use area, but does not include permitting for breweries or distilleries. "We didn't realize when we started talking about this brewpub going in, that it was not already an eligible use for old town mixed-use," said Mayor Gretchen Fagan. Craig Meyers, Tomball's community development director, said the city needs to first define micro-brewery land use, not just for downtown but for the entire city. There would be limitations, such as a limit on beer production for the business that would prohibit a larger facility coming into the downtown area, he said. "We have looked at what other cities have done and it's all based on the volume of production of beer. We could come up with a cap to produce so many barrels per year." The eventual arrival of a brewpub in downtown Tomball seems to be a logical next step for a city that has been working to attract tourists and weekend visitors. Until 2010, there were only a handful of local festivities in Tomball, such as the Tomball German Heritage Festival, Tomball Night and the German Christmas Market, which are sponsored by organizations other than the city. In 2011, the city began adding festivities, such as Bugs, Brew and Barbecue, the Rails and Tails Mudbug Fest, the Honky Tonk Music Fest and the Chili Challenge. Mike Baxter, Tomball's director of marketing, has helped create these city sponsored festivals and said the addition of a brewpub would be a welcomed addition to downtown. "Knowing the success of similar businesses across the state, I expect that a brewpub in the old downtown area would be an asset to our ongoing effort to position Tomball as a destination for tourists, both local and outer market," Baxter said. "Continuing to add new and unique restaurants, shops and entertainment options downtown will help generate new visitation and increased revenue, as well as maintain the vibrant business environment that we are now seeing in Tomball." Although construction may not start until later this year, the site of the Fire Ant Brewing Company has been chosen, and will be located along Main Street where the Farmers Market was traditionally held. The brewpub will have two functions, one of which will include a restaurant that will face Main Street, and the brewery, which will face Market Street, providing access to the depot. Representatives from Fire Ant Brewing Company, which is co-owned by Bruce Kissinger, and Kurt and Carl Hohnholt, were at Tomball City Council on Feb. 16 to talk about their new businesses. Kissinger said that while they could have looked at other locations, that Tomball was their one and only choice to start their business. "Tomball is just a great location," Kissinger said. "When you try and find a craft brew in this area you have to go to The Woodlands or toward Vintage Park, so we thought this would be an awesome location for us." Kissinger said they started brewing beer as more of a hobby by creating the beer over an open fire in a five-gallon pot, and once that was perfected they began making their beer in a 10 gallon automated system. They created flavors, such as Heavenweizen, Cold Hot Blonde, and Drop Dead Red, which they tested for several years at Houston Texans Tailgate parties at NRG Stadium. "Over the last three years, we'd take about 10 gallons (of beer) to the game," Kissinger said. "We have a great following out there." At the same time, Kissinger said they have been working to perfect their beer and have created eight distinct flavors. Many of those signature brews will make their Tomball debut on the first night of the Tomball German Heritage Fest on March 27. "We'll be brewing up about 40 gallons and setting up at our location, where we are going to be," Kissinger said. "This has been just great for us." The city council is expected to consider the change to the ordinance sometime next month. To learn more about Fire Ant Brewing Company, visit www.fireantbrewing.com/home.html www.chron.com/neighborhood/spring/business/article/New-Tomball-law-opens-taps-for-downtown- brewpub-6217186.php New Tomball law opens taps for downtown brewpub By Bryan Kirk | April 22, 2015 The Tomball City Councilapproved an ordinance that will allow the construction of a brewpub downtown, which could open next spring. The ordinance, however, places a cap of 10,000 barrels a year on the amount of beer that can be produced downtown and requires similar establishments to also serve some type of food at their establishment. The initial ordinance passed the first reading earlier this month with a cap of 5,000 barrels which was proposed by Councilman Field Hudgens. However, Councilman Mark Stollcompared this ordinance to the law overturned by voters in November that had limited the sale of alcohol in certain sections of downtown for 70 years. "I am questioning why, we as a city, want to limit taking this from 10,000 barrels per year as the state recommends, down to 5,000 barrels? Why do we want to go back and differentiate between different areas of the city?" he asked. Stoll said placing limits on alcohol production was a double standard that allowed businesses outside of downtown to produce the state-mandated 10,000 barrels annually, while limiting those in downtown. "I just don't want us to go back and setting ordinance where we differentiate. I think we should keep in the same for the entire city," he added. Hudgens said he suggested the cap of 5,000 barrels because he felt keeping the state limit of 10,000 would diminish the charm of downtown Tomball. Hudgens added that he felt allow a higher cap would usher in traffic tie ups caused by large trucks and 18-wheelers trying to navigate tight alley ways. "We've spent hundreds of thousands of dollars, and hundreds of hours developing the downtown area, and I don't want to turn it into a commercial area," he said. "If you want to be manufacturer and do 8,000 barrels or 10,000 barrels do it a couple of blocks away. I did that purely to keep downtown, downtown and not turn into a commercial area." Fire Ant Brewing Company Representatives from made their first appearance in city council in February to ask for the city ordinance that would allow them to build their brewpub at the intersection of Main and South Oak Street, with the restaurant section facing Main Street, and the brewery section of the establishment facing Market Street. Fire Ant Brewing Company, which is co-owned by Bruce Kissingerand Kurt and Carl Hohnholt, were at Tomball City Council on Feb. 16 to talk about their new businesses and began making their presence known in the community bypassing out free samples of their craft beer during the Tomball German Heritage Festival in March. Kissinger said that while they could have looked at other locations, Tomball was their one and only choice to start their business. "Tomball is just a greatlocation," Kissinger said. Kissinger added that while the brewpub could produce as much as 10,000 barrels a year, it's unlikely they will ever produce more than 1,000. "You're not talking about a (big) impact," Kissinger said. Rodney Hutson, who is working with the owners of Fire Ant Brewing Company to develop the property, said Tomball needs an establishment like this to add to the revitalized downtown. "It takes three entities to make an area like downtown (Tomball) successful: It takes a city and city council, it takes property owners to work with the city, and takes businesses to come in and make this area successful," he said. "These small breweries like this…they don't have 18- wheelers for supplies. Having this in combination (restaurant and bar) makes it more palatable." www.politico.com/story/2014/08/craft-beer-taxes-109984.html There is little evidence that these incentives are driving craft breweries. | AP Photo By KELSEY SNELL | 8/13/14 1:51 PM EDT Trendy craft beer sales are booming, and cities and states are hoping tax breaks will help them elbow their way into a seat at the bar. Targeted tax breaks are a favorite tool for states looking to capitalize on a growing industry, and states from California to New York are all hoping to get a gulp of the estimated $250 billion economic boon brewers estimate they delivered in 2012. Lawmakers are doling out multi- million-dollar packages to keep and attract breweries. But while the tax breaks flow, there is little evidence that these incentives are driving where craft brewers set up their businesses. Factors such as the availability of natural resources like water and the quality of the infrastructure needed to get the beer to the masses are likely playing a bigger role. more likely than not the incentives are just rewarding companies for activities they were going to Policy. Nonetheless, local officials are eager to provide every incentive for the growing industry to call their states and cities home, and tax breaks have been the tool of choice. Beer brewing has been on the rise for the better part of the past 25 years. In 1991, the United States had fewer than 500 permitted breweries in active operation. By 2013, that number had skyrocketed by more than 600 percent, to 3,699. Experts and lawmakers say the tax breaks are the go-to lure for states looking to attract a piece of the hot craft brewing industry. Researchers at the Beer Institute, the i competing for a sliver of the approximately $50 billion in federal, state and local taxes that brewers paid in 2012. -profile business, and it is an easy-to-understand business; people get how -sum game problem there: Every time you cut taxes for one company or one in opposite dollar cut from spending. But lawmakers and brewers say the incentives are part of a broader negotiation. The incentives are usually spread out over several years in order to ensure that the breweries bring jobs and investment to the local economy. They also hope that one hot new brewery can attract more trendy popular businesses to locate nearby. This year the city of San Diego reached a deal with two expanding local craft brewers, AleSmith and Ballast Point. Both brewers needed to expand and were looking at new properties outside the city, so San Diego lawmakers offered a tax cut on future sales to entice them to stay. The deal requires the breweries to pay any permitting and municipal fees related to the the city will reimburse the breweries through tax breaks. interest-free loan while the breweries build their new facilities, and our local economy gets new Brewers say the tax incentives are often offered only at the end of a long process of deciding where to invest. Several industry experts including Jenn Vervier, the director of sustainability and strategy at New Belgium Brewing said the craft brewing industry is highly dependent on natural resources and public infrastructure. Their abundance and quality are often major drivers small when the brewery is started. New Belgium, one of the top-selling craft brewers in the country, recently broke ground on a new East Coast brewing facility in Asheville, North Carolina. The city announced in 2012 that it would provide New Belgium with a seven-year, $3.5 million tax-incentive package based on the he full investment, Asheville will be a partner of New Belgium for decades to come; it had to be win-win for both of It Lagunitas Brewing, another top-selling craft brewery, christened a brand-new, 300,000-square- foot brewery on the West Side of Chicago earlier this year without accepting a single tax break to get the project off the ground. king tucked into a section of a former steel plant alongside a new film production studio and one of the city For the past several months, thousands of visitors have walked the long industrial corridor to the heart of the warehouse toward a tap room that sits amid sprawling grain silos and clanging bottling lines. The space will eventually have the capacity to put out 1.6 million barrels per year. It was all privately funded. Magee said tax incentives were never even a factor in his decision to set up shop in Chicago. Instead, he said the decision was based on freight costs, access reputation as a supportive, beer-loving town. o the arm of That calculation is not uncommon, said Scott Drenkard, an economist at the right-leaning Tax Foundation in Washington. to pretend taxes never matter, but they might not be the most important factor for ere your water comes Drenkard said craft breweries are a particularly attractive place for lawmakers to aim their tax breaks. going - er get, or stay, in the brewing game. Henderson County, just south of Asheville, doled out a similar $3.75 million, seven-year package in 2011 to entice Sierra Nevada, the second most profitable craft brewery in the country, to open a large facility there. In New York, the city of Baldwinsville and Anheuser-Busch InBev negotiated a deal in 2011 that would save the company $6 million in property taxes over 15 years just to stay put. Craft brewers in the state have access to a special credit. States like Michigan are looking to get in on the hops rush as well. Lawmakers there are considering legislation that would provide credits for brewers and cider-makers that use locally grown ingredients. But trends in tax incentive Gardner said the escalating competition for breweries closely mirrors the way states were rushing to craft tax breaks for film productions as recently as five years ago. Just four states offered tax breaks for films in 2000; just 10 years later, 39 states and Puerto Rico were offering targeted incentives to get producers rolling tape. for people to say, gosh maybe we should do this This is an Unaudited Statement. City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Previous ReportFY 2014-15FY 2013-14 Unaudited Beginning Fund Balance 9/30$ 3,322,635$ 3,322,635$ 2,768,155 Plus Year to Date Revenues: 1/2 Cent Sales Tax 649,604 1,268,726 1,112,908 Transfers-In - 175,000 - Interest Income 1,958 5,003 3,336 Total Revenues 651,562 1,448,729 1,116,244 Equals Total Resources 3,974,197 4,771,364 3,884,399 Less Year to Date Expenditures: Payroll 38,226 65,010 44,995 Supplies 441 416 855 Services & Charges (Memberships, Training, Advertising, Legal, Utilities) 127,013 188,429 249,407 Capital Outlay - - 151,333 * Debt Service Transfer 451,590 722,545 632,363 Total Expenditures 617,271 976,400 1,078,954 Estimated Year to Date Fund Balance as of 5/31/2015$ 3,356,926$ 3,794,964$ 2,805,445 Commitments Pipeline Grill$ 300,000 Richard Industrial Group 10,000 ACT Independent Turbo Service, Inc. 426,000 Debt Service Reserve 1,083,817 $ 1,819,817 Adjusted Year to Date Fund Balance$ 1,975,147 Projection Through Year End Adjusted Year to Date Fund Balance$ 1,975,147 Plus: Estimated Sales Tax 939,904 Less: Estimated Operational Costs (180,939) Less: Debt Service Transfers (361,272) Projected Year End Fund Balance$ 2,372,840 Sales tax revenues for Fiscal Year 2015 are estimated to be $2,375,000. Previously Funded Projects (Funding in Fund 015 - General CIP Fund) BudgetExpendituresBalance Façade Grants 300,000 90,909 209,091 Total 300,000 90,909 209,091 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields.