The URL can be used to link to this page

Home My WebLink About10-09-2006 Special Called Regular Meeting of La Porte Development Corporation Minutes MINUTES OF THE LA PORTE DEVELOPMENT CORPORATION October 9, 2006 1. Call to Order President Pat Muston called the meeting to order at 5:03 p.m. Members Present: Bill Love, Chuck Engelken, Tommy Moser, Mike Clausen and Pat Muston. Members Absent: Ed Matuszak. Staff Present: City Secretary Martha Gillett, Interim City Manager John Joerns, City Consultant/Advisory Debra Feazelle, and Assistant Finance Director Michael Dolby Others Present: Paul Chavez of Bay Area Economic Development Alliance. 2. Motion was made by Committee Member Chuck Engelken to approve the Minutes of September 25.2006 with corrections. Second by Committee Member Bill Love. Motion carried unanimously. Ayes: Bill Love, Pat Muston, Mike Clausen, Chuck Engelken and Tommy Moser. Nays: None Abstain: None 3. Board Member Bill Love made a motion to retain Pat Muston as President and Ed Matuszak as Vice President of the La Porte Development Corporation Board. Second by Board Member Chuck Engelken. Motion carried unanimously. Ayes: Bill Love, Pat Muston, Mike Clausen, Chuck Engelken and Tommy Moser. Nays: None Abstain: None 4. Martha Gillett administered Oath of Office for annual appointments to President Pat Muston and Board Member Mike Clausen of the La Porte Development Corporation. Vice President Ed Matuszak will take his oath at next meeting due to his absence. Bill Love will also need to take an oath at the next meeting. 5. Michael Dolby reported to the board it was legal for the Economic Development Coordinator and Main Street Coordinator to report to the City Manager. 6. The committee reviewed the job description for Economic Development Coordinator. Michael Dolby reported to the board the job description was available on the city's website. Bill Love will sit on the panel to recruit/interview Economic Development Coordinator candidates. Chuck Engelken inquired as to the process and who will make final decision on recruiting for position. Interim City Manager John Joerns informed the panel would select top candidates and work from there. The salary range min 47, 480.00 and max 71, 219.00. La Porte Development Corporation -10/9/06- Page 2 7. Michael Dolby provided a report on (email provided in packets) Chamber Development Waterfront Efforts. 8. City Consultant! Advisory Debra Feazelle advised the board the city is continuing with the Hotel Project and requested if the board would like to participate with Hotel Project. The board advised they would like to participate with the project. Ms. Feazelle advised a need for a feasibility and market study to be completed. The board was informed by staff they will be meeting with Harris County Commissioner Sylvia Garcia and hope to get an update on the project. Interim City Manager John Joems provided an overview on previous Bayfront project efforts. Bill Love made a motion to participate in the feasibility study by funding (not to exceed $25,000.00) to fund study. A motion pending the conclusion of Executive Session. See below. 9. John Joems provided a report on City of Seabrook Economic Development Efforts and their request for proposal. The committee would like to work with staff on RFP proposal. 10. Michael Dolby provided a handout in the packet on current information for projects the board can participate in. Mr. Dolby informed emphasis needs to be on new and expanded businesses. The board requested a copy of the TIRZ map. John Joems will send a copy of the map to the Board. 11. Administrative Reports. City Consultant!Advisory Debra Feazelle reminded the board of Retirement Party for Cynthia Alexander-Pearson. 12. Board Comments Pat Muston provided invitations from Bay Area Houston regarding upcoming Economic Development Training rescheduled to November 3,2006. 13. EXECUTIVE SESSION - PURSUANT TO PROVISION OF THE OPEN MEETINGS LAW, CHAPTER 551.071 THROUGH 551.076, 551.087, TEXAS GOVERNMENT CODE, (CONSULTATION WITH ATTORNEY, DELIBERATION REGARDING REAL PROPERTY, DELIBERATION REGARDING PROSPECTIVE GIFT OR DONATION, PERSONNEL MATTERS, DELIBERATION REGARDING SECURITY DEVICES, OR EXCLUDING A WITNESS DURING EXAMINATION OF ANOTHER WITNESS IN AN INVESTIGA TION, DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS) SECTION - 551-072 - (PROPERTY SALE OR EXCHANGE) MEET WITH CITY MANAGER, CITY CONSULTANT AND CITY ATTORNEY REGARDING HOTEL PROJECT La Porte Development Corporation - 10/9/06 - Page 3 The board retired to Executive Session at 5:44 p.m. and returned to the Special Called Regular Meeting and reconvened at 5:58 p.m. 14. CONSIDERATIONS AND POSSIBLE ACTION ON ITEMS CONSIDERED IN :\~t'J EXECUTIVE SESSION. ~~J1 There was a motion by Bill Love not to exceed $25,000.00 for the Hotel project~cond by Tommy Moser. Ayes: Bill Love, Pat Muston, Mike Clausen, Chuck Engelken and Tommy Moser. Nays: None Abstain: None 15. Adjournment The meeting was duly adjourned at 5:58 p.m. Lff)tlt:Ii~~ Respectfully submitted, Martha A. Gillett City Secretary TRMC, CMC La Porte Development Corporation Secretary Passed and approved on this ~ day of jJ OU~~ ,2006. ~JwreSident ) To: From: Date: Re: Memorandum Mayor and Council Michael G. Dolby CPA, Interim Director of Finance !J November 6,2006 0- 4B Notice of Public Hearing In accordance with the Economic Development Handbook, a Section 4B corporation must hold at least one public hearing on a proposed project. This meeting must be held prior to 4B expenditure of funds, and the 4B corporation must allow for a sixty day waiting period to insure that the public has ample time to file a petition against the proposed project and request an election on the issue.. We have begun to move forward with our study of Sylvan Beach and we anticipate a tight turn around by the consultants. Consequently, we are requesting council to move forward with the expenditure for this project and await reimbursement from the 4B board. The only draw back would be if a petition by the voters did not approve this project, then the city would have to absorb the cost without reimbursement. I have attached excerpts from the Economic Development Handbook. Attachements: (1) page 39 of Handbook I. The Sales Tax for Economic Development Public Hearing Requirement for Expending Section 48 Tax Proceeds A Section 48 corporation must hold at least one public hearing on a proposed project, including a proposal to expend funds on maintenance and operating expenses of a project. 188 This hearing must be held before the corporation expends any Section 48 funds on the project. There is nothing in the Act that prohibits the Section 48 corporation from holding one public hearing to consider a group of Section 48 projects. After the projects have been considered at a public hearing and 60 days have passed since the first public notice of the nature of the projects, the development corporation is free to make expenditures related to the projects pursuant to the adopted budget. Public Notice Requirement and the GO-Day Right to Petition The public has a right to gather a petition objecting to a particular Section 48 project.189 The petition must be submitted within 60 days of the first published notice of a specific project or type of project and must be signed by more than 10 percent of the registered voters of the city. State law does not indicate what would constitute the first published notice of a project. A city should ensure that it provides 60 days notice of the specific project or the category of projects. ,'--', If a petition is pursued by the public, the petition can ask that the city hold an election on the issue before that specific project or type of project is undertaken. If the petition is submitted in a timely manner and an election is required, the corporation may not undertake the project until the voters approve the project at an election on the issue. If the voters disapprove the project at the election, the Section 48 tax proceeds may not be used for that purpose. It is important to note that a petition cannot force an election on a project if the voters have previously approved the specific project or that general category of projects at an earlier election called under the Act. Cities that know what types of projects they want to undertake may be well advised to specifically list each of these types of projects in the ballot wording when the Section 48 tax is first considered by the voters. If the city includes each of these types of projects in the original ballot proposition, it can assert that the public has already approved that type of project at a prior election. In this scenario, the city arguably would not be required to call an additional election even if a petition were submitted regarding the project. Specific Costs of a Section 48 Project That May be Funded Cities must understand what general categories are available for expenditures. They additionally need to know what types of specific expenditures are contemplated within each of these categories. For assistance in understanding what is permitted under the Act, cities should review the definition of the term "cost" under Section 2(4) of the Act. Section 2(4) of the Act defines what costs may be applied to a Section 48 project. It states in pertinent part that costs for a project may include: ...-- a) land and facility improvements: the cost of acquisition, construction, improvement, expansion of land, buildings, and acquisition of right-of-way. HANDBOOK on ECONOMIC DEVELOPMENT LAWS/or TEXAS CITIES 39