HomeMy WebLinkAbout06-07-10 Regular Meeting of the La Porte Development Corporation Board of Directors
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MINUTES OF THE REGULAR MEETING OF THE
LA PORTE DEVELOPMENT CORPORATION
BOARD OF DIRECTORS
June 7, 2010
1. Call to order
Vice-President Richard Warren called the La Porte Development Corporation Board meeting to order at
5:04p.m.
Members Present: Woodard, Clausen, Warren, Pizzitola and Engelken
Members/Officers Absent: Moser
Staff Present: City Manager Ron Bottoms, Assistant City Attorney Clark Askins, City Secretary Martha Gillett,
and Main StreeVEconomic Development Coordinator Stacey Osborne.
Others Present: David Janda and Dottie Kaminski.
2. Consider approval or other action of the April 5, 2010 minutes of the Regular Meeting of the La Porte
Development Corporation Board of Directors - M. Gillett
A motion was made by Board Member Clausen to approve the AprilS, 2010 minutes of the Regular Meeting
of the La Porte Development Corporation Board of Directors. Motion was seconded by Board Member
Pizzitola. The motion carried.
Ayes: Woodard, Clausen, Warren, Pizzitola and Engelken
Nays: None
Abstain: None
Absent: Moser
3. Discussion of Buxton Study - S. Osborne
Board members discussed the Buxton Study and the board recommended staff not to move forward with a
new study.
Item 4 was taken before item 3.
4. Consider appointment of La Porte Development Corporation Board President, for term ending October 1,
2010.
A motion was made by Board Member Clausen to appoint Bob Pizzitola as President of the La Porte
Development Corporation Board of Directors for term ending October 1, 2010.
Bob Pizzitola refused acceptance of this appointment.
A motion was made by Board Member Clausen to appoint Randy Woodard as President of the La Porte
Development Corporation Board of Directors for term ending October 1, 2010.
Randy Woodard refused acceptance of this appointment.
A motion was made by Board Member Engelken to appoint Richard Warren as President of the La Porte
Development Corporation Board of Directors for term ending October 1, 2010. Motion was seconded by
Board Member Woodard. Motion carried.
Ayes: Woodard, Clausen, Warren, Pizzitola and Engelken
Abstain: None
Absent: Moser
5. Consider appointment of La Porte Development Corporation Board Vice President, for term ending October
1,2010.
A motion was made by Board Member Engelken to appoint Bob Pizzitola as Vice President of the La Porte
Development Corporation Board of Directors for term ending October 1, 2010. Motion was seconded by
Board Member Clausen. The motion carried.
Ayes: Clausen, Warren, Pizzitola and Engelken
Nays: Woodard
Abstain: None
Absent: Moser
6. Executive Session - pursuant to provision of the Open Meetings Law. Chapter 551 Texas Government Code,
Sections 551-071 through 551.076, 551.087 (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 investigation, deliberation
regarding Economic Development Negotiations).
A. 551.072 (Consultation regarding purchase,
exchange, lease or value of real
property)
Meet with City Manager and City
Attorney to discuss property behind 117
San Jacinto (Alamo Building)
Board members retired to Executive Session at 5:40 p.m.
Board members adjourned the Executive Session and returned to the table at 5:48 p.m.
7. Consider action on item discussed in Executive Session.
There was no action taken.
8. Board member comments
A. Matter appearing on agenda
B. Inquiry of staff regarding specific factual information or existing policy
Board Member Woodard requested a sales tax historical report.
9. Adjournment
There being no further business to discuss, the La Porte Development Corporation Board of Directors
adjourned the Regular Meeting at 5:54 p.m.
~tfUIlY sUbm~
Martna ~ 1.AA4
City Secretary, TRMC
Passed and approved on th~ay of J uJ. 'I 2010.
Richard Warren, President
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REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM
Agenda Date Requested: 7/26/2010
Requested By: Stacey Osborne
Department:
Appropriation
Source of Funds:
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Amount Requested:
Budgeted Item: YES NO
Exhibits: Agreement
Exhibits: Ordinance passed by City Council 7/12/10
Exhibits:
SUMMARY & RECOMMENDATION
The Sylvan Beach Erosion Protection Re-nourishment Project was initially funded by the State at 60% of the base
costs and the La Porte Development Corporation (est. $700,000+/-) and Harris County ($600,000 maximum) per the
Interlocal Agreement between the City of La Porte and Harris County.
The project is eligible for reimbursement per the TIRZ Project Plan, when revenues are available.
The Agreement under consideration provides for reimbursement from future TIRZ revenues to reimburse Harris
County and the City of La Porte for their advance funding of the project.
This Agreement between;
La Porte Tax Increment Reinvestment Zone # 1 (TIRZ)
La Porte Redevelopment Authority (LPRA)
City of La Porte (CLP)
La Porte Development Corporation (LPDC)
Harris County (Ha. Co.)
provides for a mechanism to reimburse the LPDC and Ha. Co. for their advance funding of the project when
revenues are available. The Agreement also provides for a priority of reimbursement (see paragraph 5.3)
The Agreement has been reviewed and approved by the;
The TIRZ/LPRA Legal Counsel
Ha. Co. Pct 2
Ha. Co. Office of Economic Development
David Hawes, Executive Director of the TIRZ/LPRA
City Attorney
The Agreement was approved by the TIRZ and LPRA at their June 30th meeting. It was approved by City Council
at the July 12 City Council Meeting. After it is approved by the LPDC, it will be forwarded to Ha. Co. for their
approval.
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Action Required bv Economic DeveloDment CorDoration:
action approving the agreement.
Ron Bottoms, City Manager
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DEVELOPMENT AGREEMENT
This Development Agreement (this "Agreement") is made as of l' /).- ,2010, by and between
the REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS (the
"Zone "), a tax increment reinvestment zone created by the City pursuant to Chapter 311 of the
Texas Tax Code, as amended, acting by and through its governing board of directors (the "Zone
Board"), LA PORTE REDEVELOPMENT AUTHORITY, a nonprofit local government
corporation formed by and on behalf of the City of La Porte, Texas (the "Authority"), and CITY
OF LA PORTE, TEXAS a home-rule city (the "City"),the LA PORTE ECONOMIC
DEVELOPMENT CORPORATION, a non-profit corporation organized under the laws of the
State of Texas (the "Development Corporation") and HARRIS COUNTY, a body corporate and
politic under the laws of the State of Texas, (the "County").
RECITALS
WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, as amended, the City Council of
the City (the "City Council") created the Zone in the City; and
WHEREAS, the Zone Board adopted a project and financing Plan (as defined below in Section
1.1), as amended, that provides that the Zone will undertake to make certain acquisitions and
improvements in the Zone, and was approved by the City Council; and
WHEREAS, the Texas Tax Code provides that the Zone may enter into agreements as the Zone
Board considers necessary or convenient to implement the Plan and achieve its purposes; and
WHEREAS, the City and the Zone have contracted with the Authority as a nonprofit Texas
local government corporation pursuant to the provisions of Chapter 431, Subchapter D, Texas
Transportation Code, as amended, to carry out the purposes of the Zone, including
administration, supervision, construction, financing and other duties, and have committed the
revenues of the Zone to the Authority for such purposes, all as more particularly set forth in the
Agreement Between the City, the Zone and the Authority, dated July 9, 2001 (the "Tri-Party
Agreement"); and
WHEREAS, the City, the Development Corporation and the County wish to make certain
improvements within the Zone, to further development within the Zone and to carry out the
purposes of the Zone as described in the Plan, and provide for the reimbursement of the
Development Corporation and the County for such improvements in accordance with such Plans;
and
Whereas, the City has entered into an agreement pursuant to that certain Special Document
No. SD 2008-0002 with the State of Texas (the "State") and that certain Project Cooperation
Agreement (the "Cooperation Agreement") CEPRA Project No. 1404 with the General Land
Office, (the "GLO") that provides terms and conditions for the Project (as defined below in
Section 1.1); and
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Whereas, the Development Corporation has agreed to provide certain funding to the City for
the Project; and
Whereas, Harris County has agreed to provide certain funding for the Project; now,
therefore,
AGREEMENT
For and in consideration of the mutual promises, covenants, obligations, and benefits of this
Agreement, the Zone, the Authority, the City, the Development Corporation and the County
contract and agree as follows:
ARTICLE 1
GENERAL TERMS
1.1 Definitions. The terms "Agreement," "Authority," "City/' "City Council",
"Cooperation Agreement", "County", "Development Corporation", "GLO", "State" ,"Tri-
Party Agreement", "Zone," and "Zone Board," have the meanings set forth in the preamble
hereof, and the following capitalized terms shall have the meanings provided below, unless
otherwise defined or the context clearly requires otherwise. For purposes of this Agreement the
words "shall" and "will" are mandatory, and the word "may" is permissive.
Act shall mean the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended.
Authority Bonds shall mean any bond, note or other obligation issued or incurred in one or more
series pursuant to Article V, secured by Tax Increment or funds deposited in the Revenue Fund,
including refunding bonds.
Advances shall mean any funds advanced by the Development Corporation or the County to City
pursuant to Section 5.1(a), and shall include any interest payable thereon.
Inter/ocal Agreement shall mean an agreement between the City and the County regarding the
County's participation in funding the Project approved by City ordinance 2008-3070 dated
March 24,2008, and approved by County April 8, 2008.
LPISD shall mean the La Porte Independent School District.
Net Tax Increment shall mean the annual collections of the Tax Increment, less (i) any amounts
required to be disbursed to LPISD for the payment of project costs related to educational
facilities incurred directly by LPISD, and (ii) amounts reasonably required or anticipated to be
required for the administration and operation of the Zone, including a reasonable operating
reserve.
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Parties or Party shall mean the Zone, the Authority the City, the Development Corporation and
the County as parties to this Agreement.
Plan shall mean the final project plan and reinvestment zone financing plan for the Zone, as
amended, as approved by City Council.
Project shall mean the Sylvan Beach Shoreline Protection and Beach Nourishment Project
described in the Project Agreements.
Project Agreements shall mean Special Document No. SD 2008-0002, between the State and the
City; the Project Cooperation Agreement, CEPRA Project No.1404, between the GLO and City
and the plans prepared by URS Corporation and titled "Sylvan Beach Shoreline Protection and
Beach Re-nourishment."
Revenue Fund shall mean the special fund established by the Authority and funded with Tax
Increment payments made by the City pursuant to the Tri-Party Agreement (which payments are
attributable to incremental ad valorem property taxes paid on the Project and other properties in
the Zone).
Tax Increment shall mean funds deposited in the Revenue Fund by the City pursuant to the Tri-
Party Agreement, comprised of funds received pursuant to those certain InterIocal Agreements or
similar agreements between the City, the County and the Zone; the City, and the Zone and;
between the City, LPISD and the Zone.
Taxing Unit shall mean individually and collectively the City, the County, and LPISD.
1.2 Singular and plural: gender. Words used herein in the singular, where the context
so permits, also include the plural and vice versa. The defmitions of words in the singular herein
also apply to such words when used in the plural where the context so permits and vice versa.
Likewise, any masculine references shall include the feminine, and vice versa.
ARTICLE 2
REPRESENTATIONS
2.1
itself that:
Representations. Each Party to this Agreement hereby represents on behalf of
(A) It is duly authorized, created and existing in good standing under the laws of the
State and is duly qualified and authorized to carryon the governmental functions and operations
as contemplated by this Agreement.
(B) It has the power, authority and legal right to enter into and perform this
Agreement and the execution, delivery and performance. hereof (i) has been duly authorized, (ll)
will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation,
and (iii) does not constitute a default under, or result in the creation of, any lien, charge,
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encumbrance or security interest upon any assets of such Party under any agreement or
instrument to which such Party is a party or by which such Party or its assets may be bound or
affected.
(C) This Agreement has been duly authorized, executed and delivered by such Party
and., constitutes a legal, valid and binding obligation of the such Party, enforceable in accordance
with its terms.
(D) The execution, delivery and performance of this Agreement by such Party does
not require the consent or approval of any person which has not been obtained.
ARTICLE 3
THE PROJECT
3.1 The Project. The Project is intended to enhance the proposed implementation of a
development within the Zone as a whole, as more fully described in the Plan.
3.2 Project Description. The Project consists of improvements to the Shoreline of
Sylvan Beach Park as more fully described in the Project Agreements together with any
modifications, alternates or phased construction approved, in writing, by parties to the Project
Agreements. Project shall include all engineering, legal and other consultant fees and expenses
allowed by the Project Cooperation Agreement.
3.3 Additional Pr01ects. This Agreement does not apply to any projects not
specifically defined herein unless this Agreement is amended to provide for the design and
construction of such additional projects.
ARTICLE 4
DUTIES AND RESPONSIBILITIES OF THE CITY AND COUNTY
4.1 Responsibilities of the City. The City has entered into Project Agreements with the State
through the GLO in regard to the final design, bidding and construction funding of the Project.
The City agrees to comply with the covenants and agreements contained within the Project
Agreements.
4.2 Project Completion. Upon completion of the Project, the City shall provide the
Authority, Zone and County with a fInal cost summary of all costs associated with the Project,
and show that all amounts owing to contractors and subcontractors have been paid in full as
evidenced by customary affidavits executed by such contractors. The City shall also provide
verification to the Zone, Authority and County that the Project was constructed as authorized by
the OLD.
4.3 ~esponsibilitiesofthe County. Upon receipt of verification that tl1e Project was
constructed as authorized by the OLO, the County shall assist the City by performing the
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maintenance and annual reporting required by Article 4.03 (B) and (C) of the Special Document
No. SD 2008-0002.
ARTICLE 5
PROJECT FINANCING AND FUNDING
5.1 The Development Corporation and County Advances.
(a) (i) The Development Corporation has advanced the City $700,000 to be used by
the City for the Project.
(ii)The County, pursuant to the provisions of the Interlocal Agreement, has advanced the
City, $600,000 to be used by the City for the Project.
(iii)To the extent possible, the City will expend the moneys described in subparagraphs
(i) and (ii) above on the Project on a equal dollar for dollar basis between the Development
Corporation and the County up to the County's maximum contribution of $600,000.00. After
completion of the Project, the City agrees to return respective funds of the Development
Corporation and the County remaining after the City has met the funding obligations contained
in the Project Cooperation Agreement.
(b) Interest on each Advance shall accrue at a rate equal to the prime commercial lending
rate of Chase Manhattan Bank, National Association, or any successor to its commercial
banking activities, plus one percent per annum, compounded semiannually, whether such costs,
fees, or expenses are paid or incurred before or after the effective date of this Agreement. Interest
shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the
first day but excluding the last day) occurring in the period for which such interest is payable,
unless such calculation would result in a usurious rate, in which case interest shall be calculated
on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed
(including the first day but excluding the last day).
5.2 Repayment of Advances.
(a) In consideration ofthe construction of the Project, the Authority shall begin repaying
the Advances, and shall continue such repayment until repaid in full, on the earliest date that
funds are available from any ofthe following sources, and solely from such sources:
(i) proceeds from the sale of the Authority Bonds, as set forth in subsection (c), and
(ii) the Net Tax Increment, subject to the limitations set forth in subsection (d).
(b) To the extent that funds from the sources listed above are insufficient on any
scheduled date for the repayment of Advances to repay all outstanding Advances in full,
repayment of Advances shallbernade on a pro rata basis between the Development Corporation
and the County on the basis of monies available for repayment.
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(c) As provided herein, the Authority shall issue one or more series of Authority Bonds
at the earliest feasible date, which Authority Bonds will be secured by a pledge of the Revenue
Fund. The net proceeds of the Authority Bonds shall be deposited to a special fund of the
Authority, and shall be used by the Authority to reimburse the Development Corporation and the
County for the full amount (or such portion thereof as is deemed by the Authority as supportable
by available Tax Increment as provided below) for eligible Development Corporation and the
County Advances, plus interest. Such Authority Bonds shall be sold within 120 days (or such
other period as may be agreed by the Parties) of a written request therefore from the
Development Corporation and the County; provided that the City's Net Tax Increment (based
upon the tax valuation of the Zone as certified or estimated by the Harris County Appraisal
District, or its successor) expected to be generated with respect to available Tax Increment is
sufficient to support the applicable Authority Bonds bearing interest at the then current rate of
interest as determined by the Authority's financial advisor for comparable issues, after taking
into account the portion of the City's Net Tax Increment required to pay any outstanding
Authority Bond issued for any purpose, including Authority Bonds issued to refund outstanding
Authority Bonds. The City's Net Tax Increment is determined as the total Net Tax Increment,
less any amounts that are used or to be used to determine eligibility of developers within the
Zone for reimbursement of advances to the Authority for construction or anticipated construction
of public improvements under the Plan pursuant to reimbursement agreements approved by the
Authority, either now or during the life ofthe Zone.
(d) In addition to the Development Corporation's and the County's right to
reimbursement from Authority Bond proceeds, upon request from the Development Corporation
and the County, the Authority shall reimburse the Development Corporation and the County
Advances, plus interest, from the City's Net Tax Increment (computed as above) accumulated in
the Revenue Fund and available in accordance with the priorities described in Section 5.3,
below.
(e) At such time as funds are available to pay all or any portion of the Development
Corporation and the County Advances made hereunder, the Authority shall hire a certified public
accountant to calculate the amount due the Development Corporation and the County and
prepare and submit a report to the Authority certifying (1) the amount due the Development
Corporation and the County for the Development Corporation and the County Advances being
repaid with interest calculated thereon, and (2) that funds are available to make such payment.
Such report shall be approved at the earliest practicable time, but not later than 90 days after
submission by the Development Corporation and the County of the records required therefore.
The Authority shall make payment to the Development Corporation and the County within 30
days of approval of the auditor's report.
(:1) The Authority shall provide to the Development Corporation and the County, upon
their written request, and on the earliest date such information is available after the date of such
request, certified copies of all statements of revenue and the sources of such revenue of the Zone
and Authority the intended use of which is to verifY the availability of funds for repayment of the
City Advances, if applicable, under this section.
5.3. Priorities. Amounts deposited in the Revenue Fund shall be applied in the
following order of priority (i) disbursement to LPISD, if applicable, for educational facilities ill
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accordance with any interlocal agreement with LPISD, the City and the Zone; (ii) administrative
costs of the Zone and the Authority; (Ui) amounts pledged or required for the payment of
outstanding Authority Bonds, including Authority Bonds in the process of issuance and
refunding Authority Bonds, and (iv) payments to the City for funding the Southeast Sanitary
Sewer Trunk Main and Lift Station Facilities per Development Agreement between the Zone,
Authority and City dated 6/12/06 and (v) payments to the Development Corporation and the
County pursuant to Section 5.2( d), above.
5.4. Multiple developers. the Development Corporation and the County. The
Authority has entered into other agreements with developers of land within the Zone for the
financing of Zone Improvements, and may enter into others. It is the intention of the parties that
each developer shall be responsible for the creation of Tax Increment required for its own
reimbursement. In such case, the Tax Increment generated within a developer's project as
defined in the applicable reimbursement agreement shall not be considered in determining
whether sufficient Net Tax Increment exists for the issuance of Authority Bonds, or direct
payment of available Net Tax Increment, for reimbursement of Advances unless the applicable
developer shall give its written consent thereto. The net proceeds of Authority Bonds issued to
reimburse multiple developers and the Development Corporation and County shall be allocated
based upon the proportion of Tax Increment generated by each developer, or such other method
as the developers may agree upon, and any unallocated Tax Increment shall be used for
calculation of the City's Net Tax Increment and reimbursement of Advances.
ARTICLE 6
DEFAULT
6.1 Default
(a) If any Party does not perform its obligations hereunder in substantial compliance
with this Agreement, in addition to the other rights given the other Parties under this Agreement,
such non-defaulting Parties may enforce specific performance of this Agreement or seek actual
damages incurred by the Development Corporation and County for any such default.
(b) The Party alleging default shall provide written notice to the other party of such
default, and the defaulting party shall have 60 days to remedy the default prior to the declaration
of any default hereunder.
ARTICLE 7
GENERAL
7.1 Inspections. audits. The City agrees to keep such records with respect to the
Project and all costs associated therewith as may be required by the Authority, the Zone, or by
State and federal law or regulation. The City shall allow the Zone access to, and the Zone shall
have a right atail reasonable timesto audit, ail docul11entsand recordsin the Gity's possession,
custody or control relating to the Project that the Authority deems necessary to assist the
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Authority in determining the City's, Development Corporation's and County's compliance with
this Agreement.
7.2 City operations and employees. All personnel supplied or used by the City in the
performance of this Agreement shall be deemed employees, contractors or subcontractors of the
City and will not be considered employees, agents, contractors or subcontractors of the Zone Of
the Authority for any purpose whatsoever. The City shall be solely responsible for the
compensation of all such contractors and subcontractors.
7.3 Personal liability of public officials. legal relations. To the extent permitted by
State law, no director, officer, employee or agent of the Zone or the Authority shall be personally
responsible for any liability arising under or growing out of the Agreement. THE PARTIES SHALL
INDEMNIFY AND SA VB HARMLESS EACH OTHER AND THEIR RESPECTIVE OFFICERS,
REPRESENTATIVES, AND AGENTS FROM ALL SUITS, ACTIONS. OR CLAIMS OF ANY CHARACTER
BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED BY ANY PERSON.
PERSONS. OR PROPERTY RESULTING FROM THE NEGLIGENT ACTS OF SUCH PARTY. OR ANY OF ITS
AGENTS. OFFICERS. OR REPRESENTATIVES IN PERFORMING ANY OF THE SERVICES AND ACTMTIES
UNDER THIS AGREEMENT. The expenses of the Zone or the Authority with respect to this section
or Section 7.15, below, shall be satisfied from uncommitted City Net Tax Increment.
7.4 Notices. Any notice sent under this Agreement (except as otherwise expressly required) shall be
written and mailed, or sent by electronic or facsimile transmission confirmed by mailing written confirmation at
substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of
the receiving party at the following addresses:
La Porte Redevelopment Authority
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
La Porte Development Corporation
604 W. Fairmont Parkway
La Porte, Texas 77571
Reinvestment Zone Number One
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
Harris County
Harris County Community Services Department
Office of Economic Development
8410 Lantern Point Drive
Houston, Texas 77054
Attn. David B. Turkel, Director of
Community Services Department
Cc: Commissioner, Harris County Precinct 2
City of La Porte
604 W. Fairmont Parkway
La Porte, Texas 77571
Attn: City Manager
Each party may change its address by written notice in accordance with this section. Any communication
addressed and mailed in accordance with this section shall be deemed to be given when so mailed, any notice so
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sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is
acknowledged, and any communication so delivered in person shall be deemed to be given when receipted for
by, or actually received by, the Authority, the Zone, or the City, as the case may be.
7.5 Amendments and waivers. Any provision of this Agreement may be amended or waived if such
amendment or waiver is in writing and is signed by the Zone, the Authority the City, the Development
Corporation and the County. No course of dealing on the part of the Parties, nor any failure or delay by one or
more of the Parties, with respect to exercising any right, power or privilege under this Agreement shall operate
as a waiver thereof, except as otherwise provided in this section.
7.6 Invalidity. In the event that any of the provisions contained in this Agreement shall be held
unenforceable in any respect, such unenforceability shall not affect any other provision of this Agreement.
7.7 Successors and assigns. All covenants and agreements contained by or on behalf of a Party in
this Agreement shall bind its successors and assigns and shall inure to the benefit of the other Parties, their
successors and assigns.
7.8 Exhibits: titles of articles, sections and subsections. The exhibits attached to this Agreement are
incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that
in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement,
the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the Parties
and shall not be construed to have any effect or meaning as to the agreement between the Parties. Any reference
herein to a section or subsection shall be considered a reference to such section or subsection of this Agreement
unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable
exhibit attached hereto unless otherwise stated.
7.9 Construction. This Agreement is a contract made under and shall be construed in accordance
with and governed by the laws of the United States of America and the State of Texas; as such laws are now in
effect.
7.10 Entire Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR. CONTEMPORANEOUS. OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NQ UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.
7.11 Term. This Agreement shall be in force and effect from the date of execution hereof for a term
expiring on the date that all Advances have been repaid in full, or January 1 of the year following the expiration
of the Zone.
7.12 Time of the essence. Time is of the essence with respect to the obligations of the Parties to this
Agreement.
7.13 Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be
hereafter given by any of the parties, the parties agree that such approval or consent shall not be unreasonably
conditioned, withheld or delayed.
7.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which when so
executed and delivered shall be deemed together shall constitute but one and the same instrument
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7.15 Legal costs. If any Party hereto is the prevailing party in any legal proceedings against another
Party brought under or with relation to this Agreement, such prevailing Party shall additionally be entitled to
recover court costs and reasonable attorneys= fees from the non-prevailing Party to such proceedings.
7.16 Further assurances. Each Party hereby agrees that it will take all actions and execute all
documents necessary to funy carry out the purposes and intent of this Agreement.
7.17 Effect of Tri-Party Agreement. The obligations of the Parties hereunder are specifically
conditioned upon the approval, execution, and effectiveness of the Tri-Party Agreement.
[EXECUTION PAGE FOLLOWS]
Page 10 of 11
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be dilly executed as of
,2010.
REINVESTMENT ZONE NUMBER
ONE, CITY OF LA PORTE, TEXAS
BY~
Nam~ ---- '~~~j U l:Cfec
Title: Prf.s 'f elf'ref
HARRIS COUNTY
By:
Name:
Title:
LAPORTE REDEVELOPMENT
AUTHORITY
BY;~
v
Name: J ~r:;-J\-I'j PIJ;~-t{'-f'r
Title: A-P.) 'ic,l.f->^--+
CIT
By:
Name:
Title:
LA PORTE DEVELOPMENT
CORPORATION
By:
Name:
Title:
Page 11 of 11
ORDINANCE NO. 2010-3J-Le ,
AN ORDINANCE APPROVING AND AUTHORIZING SYLVAN BEACH DEVELOPMENT
AGREEMENT BY AND BETWEEN THE CITY OF LA PORTE REINVESTMENT ZONE NO.
1; CITY OF LA PORTE REDEVELOPMENT AUTHORITY; HARRIS COUNTY, TEXAS; LA
PORTE DEVELOPMENT CORPORATION 1 AND THE CITY OF LA PORTE, TEXAS; MAKING
VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING
COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFE'CTIVE DATE
HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the
contract, agreement, or other undertaking described in the title of
this ordinance, a copy of which is on file in the office of the City
Secretary. The City Manager is hereby authorized to execute such
document and all related documents on behalf of the City of La Porte.
Section 2.
The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was posted
at a place convenient to the public at the City Hall of the City for
the time required by law preceding this meeting, as required by the
Open Meetings Law, Chapter 551, Texas Government Code; and that this
meeting has been open to the public as required by law at all times
during which this ordinance and the subject matter thereof has been
discussed, considered and formally acted upon.
The City Council
further ratifies, approves and confirms such written notice and the
contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its
passage and approval, and it is so ordered.
PASSED AND APPROVED, this ___ day of
I 2010.
CITY OF LA PORTE
By:
Daryl Leonard
Mayor Pro-Tern
ATTEST:
Martha A. Gillett
City Secretary
APPROVED:
f:1-.,."A: z: 4.4..M
ark T. Askins
Assistant City Attorney
~
DEVELOPMENT AGREEMENT
This Development Agreement (this "Agreement") is made as of 1,1).- ,2010, by and between
the REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS (the
"Zone "), a tax increment reinvestment zone created by the City pursuant to Chapter 311 of the
Texas Tax Code, as amended, acting by and through its governing board of directors (the "Zone
Board"), LA PORTE REDEVELOPMENT AUTHORITY, a nonprofit local government
corporation formed by and on behalf of the City of La Porte, Texas (the "Authority "), and CITY
OF LA PORTE, TEXAS a home-rule city (the "City"),the LA PORTE ECONOMIC
DEVELOPMENT CORPORATION, a non-profit corporation organized under the laws of the
State of Texas (the "Development Corporation") and HARRIS COUNTY, a body corporate and
politic under the laws ofthe State of Texas, (the "County").
RECIT ALS
WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, as amended, the City Council of
the City (the "City Council") created the Zone in the City; and
WHEREAS, the Zone Board adopted a project and financing Plan (as defined below in Section
1.1), as amended, that provides that the Zone will undertake to make certain acquisitions and
improvements in the Zone, and was approved by the City Council; and
WHEREAS, the Texas Tax Code provides that the Zone may enter into agreements as the Zone
Board considers necessary or convenient to implement the Plan and achieve its purposes; and
WHEREAS, the City and the Zone have contracted with the Authority as a nonprofit Texas
local government corporation pursuant to the provisions of Chapter 431, Subchapter D, Texas
Transportation Code, as amended, to carry out the purposes of the Zone, including
administration, supervision, construction, financing and other duties, and have committed the
revenues of the Zone to the Authority for such purposes, all as more particularly set forth in the
Agreement Between the City, the Zone and the Authority, dated July 9, 2001 (the "Tri-Party
Agreement"); and
WHEREAS, the City, the Development Corporation and the County wish to make certain
improvements within the Zone, to further development within the Zone and to carry out the
purposes of the Zone as described in the Plan, and provide for the reimbursement of the
Development Corporation and the County for such improvements in accordance with such Plans;
and
Whereas, the City has entered into an agreement pursuant to that certain Special Document
No. SD 2008-0002 with the State of Texas (the "State") and that certain Project Cooperation
Agreement (the "Cooperation Agreement") CEPRA Project No. 1404 with the General Land
Office, (the "GLO") that provides terms and conditions for the Project (as defined below in
Section 1.1); and
Page 1 of 11
Whereas, the Development Corporation has agreed to provide certain funding to the City for
the Project; and
Whereas, Harris County has agreed to provide certain funding for the Project; now,
therefore,
AGREEMENT
For and in consideration of the mutual promises, covenants, obligations, and benefits of this
Agreement, the Zone, the Authority, the City, the Development Corporation and the County
contract and agree as follows:
ARTICLE 1
GENERAL TERMS
1.1 Definitions. The terms "Agreement," "Authority," "City," "City Council ",
"Cooperation Agreement ", "County ", "Development Corporation ", "GLO ", "State" ,"Tri-
Party Agreement", "Zone," and "Zone Board," have the meanings set forth in the preamble
hereof, and the following capitalized terms shall have the meanings provided below, unless
otherwise defined or the context clearly requires otherwise. For purposes of this Agreement the
words "shall" and "will" are mandatory, and the word "may" is permissive.
Act shall mean the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended.
Authority Bonds shall mean any bond, note or other obligation issued or incurred in one or more
series pursuant to Article V, secured by Tax Increment or funds deposited in the Revenue Fund,
including refunding bonds.
Advances shall mean any funds advanced by the Development Corporation or the County to City
pursuant to Section 5.1(a), and shall include any interest payable thereon.
Interlocal Agreement shall mean an agreement between the City and the County regarding the
County's participation in funding the Project approved by City ordinance 2008-3070 dated
March 24, 2008, and approved by County April 8, 2008.
LP ISD shall mean the La Porte Independent School District.
Net Tax Increment shall mean the annual collections of the Tax Increment, less (i) any amounts
required to be disbursed to LPISD for the payment of project costs related to educational
facilities incurred directly by LPISD, and (ii) amounts reasonably required or anticipated to be
required for the administration and operation of the Zone, including a reasonable operating
reserve.
Page 2 of 11
Parties or Party shall mean the Zone, the Authority the City, the Development Corporation and
the County as parties to this Agreement.
Plan shall mean the final project plan and reinvestment zone financing plan for the Zone, as
amended, as approved by City Council.
Project shall mean the Sylvan Beach Shoreline Protection and Beach Nourishment Project
described in the Project Agreements.
Project Agreements shall mean Special Document No. SD 2008-0002, between the State and the
City; the Project Cooperation Agreement, CEPRA Project No.1404, between the GLO and City
and the plans prepared by URS Corporation and titled "Sylvan Beach Shoreline Protection and
Beach Re-nourishment."
Revenue Fund shall mean the special fund established by the Authority and funded with Tax
Increment payments made by the City pursuant to the Tri-Party Agreement (which payments are
attributable to incremental ad valorem property taxes paid on the Project and other properties in
the Zone).
Tax Increment shall mean funds deposited in the Revenue Fund by the City pursuant to the Tri-
Party Agreement, comprised of funds received pursuant to those certain Interlocal Agreements or
similar agreements between the City, the County and the Zone; the City, and the Zone and;
between the City, LPISD and the Zone.
Taxing Unit shall mean individually and collectively the City, the County, and LPISD.
1.2 Singular and plural; gender. Words used herein in the singular, where the context
so permits, also include the plural and vice versa. The definitions of words in the singular herein
also apply to such words when used in the plural where the context so permits and vice versa.
Likewise, any masculine references shall include the feminine, and vice versa.
ARTICLE 2
REPRESENTATIONS
2.1
itself that:
Representations. Each Party to this Agreement hereby represents on behalf of
(A) It is duly authorized, created and existing in good standing under the laws of the
State and is duly qualified and authorized to carry on the governmental functions and operations
as contemplated by this Agreement.
(B) It has the power, authority and legal right to enter into and perform this
Agreement and the execution, delivery and performance hereof (i) has been duly authorized, (ii)
will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation,
and (iii) does not constitute a default under, or result in the creation of, any lien, charge,
Page 3 of 11
encumbrance or security interest upon any assets of such Party under any agreement or
instrument to which such Party is a party or by which such Party or its assets may be bound or
affected.
(C) This Agreement has been duly authorized, executed and delivered by such Party
and, constitutes a legal, valid and binding obligation of the such Party, enforceable in accordance
with its terms.
(D) The execution, delivery and performance of this Agreement by such Party does
not require the consent or approval of any person which has not been obtained.
ARTICLE 3
THE PROJECT
3.1 The Proiect. The Project is intended to enhance the proposed implementation of a
development within the Zone as a whole, as more fully described in the Plan.
3.2 Proiect Description. The Project consists of improvements to the Shoreline of
Sylvan Beach Park as more fully described in the Project Agreements together with any
modifications, alternates or phased construction approved, in writing, by parties to the Project
Agreements. Project shall include all engineering, legal and other consultant fees and expenses
allowed by the Project Cooperation Agreement.
3.3 Additional Proiects. This Agreement does not apply to any projects not
specifically defined herein unless this Agreement is amended to provide for the design and
construction of such additional projects.
ARTICLE 4
DUTIES AND RESPONSIBILITIES OF THE CITY AND COUNTY
4.1 Responsibilities of the City. The City has entered into Project Agreements with the State
through the GLO in regard to the final design, bidding and construction funding of the Project.
The City agrees to comply with the covenants and agreements contained within the Project
Agreements.
4.2 Proiect Completion. Upon completion of the Project, the City shall provide the
Authority, Zone and County with a final cost summary of all costs associated with the Project,
and show that all amounts owing to contractors and subcontractors have been paid in full as
evidenced by customary affidavits executed by such contractors. The City shall also provide
verification to the Zone, Authority and County that the Project was constructed as authorized by
the GLO.
4.3 Responsibilities of the County. Upon receipt of verification that the Project was
constructed as authorized by the GLO, the County shall assist the City by performing the
Page 4 of 11
maintenance and annual reporting required by Article 4.03 (B) and (C) of the Special Document
No. SD 2008-0002.
ARTICLE 5
PROJECT FINANCING AND FUNDING
5.1 The Development Corporation and County Advances.
(a) (i) The Development Corporation has advanced the City $700,000 to be used by
the City for the Project.
(ii)The County, pursuant to the provisions of the Interlocal Agreement, has advanced the
City, $600,000 to be used by the City for the Project.
(iii)To the extent possible, the City will expend the moneys described in subparagraphs
(i) and (ii) above on the Project on a equal dollar for dollar basis between the Development
Corporation and the County up to the County's maximum contribution of $600,000.00. After
completion of the Project, the City agrees to return respective funds of the Development
Corporation and the County remaining after the City has met the funding obligations contained
in the Project Cooperation Agreement.
(b) Interest on each Advance shall accrue at a rate equal to the prime commercial lending
rate of Chase Manhattan Bank, National Association, or any successor to its commercial
banking activities, plus one percent per annum, compounded semiannually, whether such costs,
fees, or expenses are paid or incurred before or after the effective date of this Agreement. Interest
shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the
first day but excluding the last day) occurring in the period for which such interest is payable,
unless such calculation would result in a usurious rate, in which case interest shall be calculated
on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed
(including the first day but excluding the last day).
5.2 Repayment of Advances.
(a) In consideration of the construction of the Project, the Authority shall begin repaying
the Advances, and shall continue such repayment until repaid in full, on the earliest date that
funds are available from any ofthe following sources, and solely from such sources:
(i) proceeds from the sale of the Authority Bonds, as set forth in subsection (c), and
(ii) the Net Tax Increment, subject to the limitations set forth in subsection (d).
(b) To the extent that funds from the sources listed above are insufficient on any
scheduled date for the repayment of Advances to repay all outstanding Advances in full,
repayment of Advances shall be made on a pro rata basis between the Development Corporation
and the County on the basis of monies available for repayment.
Page 5 of 11
( c) As provided herein, the Authority shall issue one or more series of Authority Bonds
at the earliest feasible date, which Authority Bonds will be secured by a pledge of the Revenue
Fund. The net proceeds of the Authority Bonds shall be deposited to a special fund of the
Authority, and shall be used by the Authority to reimburse the Development Corporation and the
County for the full amount (or such portion thereof as is deemed by the Authority as supportable
by available Tax Increment as provided below) for eligible Development Corporation and the
County Advances, plus interest. Such Authority Bonds shall be sold within 120 days (or such
other period as may be agreed by the Parties) of a written request therefore from the
Development Corporation and the County; provided that the City's Net Tax Increment (based
upon the tax valuation of the Zone as certified or estimated by the Harris County Appraisal
District, or its successor) expected to be generated with respect to available Tax Increment is
sufficient to support the applicable Authority Bonds bearing interest at the then current rate of
interest as determined by the Authority's financial advisor for comparable issues, after taking
into account the portion of the City's Net Tax Increment required to pay any outstanding
Authority Bond issued for any purpose, including Authority Bonds issued to refund outstanding
Authority Bonds. The City's Net Tax Increment is determined as the total Net Tax Increment,
less any amounts that are used or to be used to determine eligibility of developers within the
Zone for reimbursement of advances to the Authority for construction or anticipated construction
of public improvements under the Plan pursuant to reimbursement agreements approved by the
Authority, either now or during the life of the Zone.
(d) In addition to the Development Corporation's and the County's right to
reimbursement from Authority Bond proceeds, upon request from the Development Corporation
and the County, the Authority shall reimburse the Development Corporation and the County
Advances, plus interest, from the City's Net Tax Increment (computed as above) accumulated in
the Revenue Fund and available in accordance with the priorities described in Section 5.3,
below.
(e) At such time as funds are available to pay all or any portion of the Development
Corporation and the County Advances made hereunder, the Authority shall hire a certified public
accountant to calculate the amount due the Development Corporation and the County and
prepare and submit a report to the Authority certifying (1) the amount due the Development
Corporation and the County for the Development Corporation and the County Advances being
repaid with interest calculated thereon, and (2) that funds are available to make such payment.
Such report shall be approved at the earliest practicable time, but not later than 90 days after
submission by the Development Corporation and the County of the records required therefore.
The Authority shall make payment to the Development Corporation and the County within 30
days of approval of the auditor's report.
(f) The Authority shall provide to the Development Corporation and the County, upon
their written request, and on the earliest date such information is available after the date of such
request, certified copies of all statements of revenue and the sources of such revenue of the Zone
and Authority the intended use of which is to verify the availability of funds for repayment of the
City Advances, if applicable, under this section.
5.3. Priorities. Amounts deposited in the Revenue Fund shall be applied in the
following order of priority (i) disbursement to LPISD, if applicable, for educational facilities In
Page 6 of 11
accordance with any interlocal agreement with LPISD, the City and the Zone; (ii) administrative
costs of the Zone and the Authority; (iii) amounts pledged or required for the payment of
outstanding Authority Bonds, including Authority Bonds in the process of issuance and
refunding Authority Bonds, and (iv) payments to the City for funding the Southeast Sanitary
Sewer Trunk Main and Lift Station Facilities per Development Agreement between the Zone,
Authority and City dated 6/12/06 and (v) payments to the Development Corporation and the
County pursuant to Section S.2( d), above.
5.4. Multiple developers. the Development Corporation and the County. The
Authority has entered into other agreements with developers of land within the Zone for the
financing of Zone Improvements, and may enter into others. It is the intention ofthe parties that
each developer shall be responsible for the creation of Tax Increment required for its own
reimbursement. In such case, the Tax Increment generated within a developer's project as
defined in the applicable reimbursement agreement shall not be considered in determining
whether sufficient Net Tax Increment exists for the issuance of Authority Bonds, or direct
payment of available Net Tax Increment, for reimbursement of Advances unless the applicable
developer shall give its written consent thereto. The net proceeds of Authority Bonds issued to
reimburse multiple developers and the Development Corporation and County shall be allocated
based upon the proportion of Tax Increment generated by each developer, or such other method
as the developers may agree upon, and any unallocated Tax Increment shall be used for
calculation of the City's Net Tax Increment and reimbursement of Advances.
ARTICLE 6
DEFAULT
6.1 Default
(a) If any Party does not perform its obligations hereunder in substantial compliance
with this Agreement, in addition to the other rights given the other Parties under this Agreement,
such non-defaulting Parties may enforce specific performance of this Agreement or seek actual
damages incurred by the Development Corporation and County for any such default.
(b) The Party alleging default shall provide written notice to the other party of such
default, and the defaulting party shall have 60 days to remedy the default prior to the declaration
of any default hereunder.
ARTICLE 7
GENERAL
7.1 Inspections. audits. The City agrees to keep such records with respect to the
Project and all costs associated therewith as may be required by the Authority, the Zone, or by
State and federal law or regulation. The City shall allow the Zone access to, and the Zone shall
have a right at all reasonable times to audit, all documents and records in the City's possession,
custody or control relating to the Project that the Authority deems necessary to assist the
Page 7 of 11
Authority in determining the City's, Development Corporation's and County's compliance with
this Agreement.
7.2 City operations and employees. All personnel supplied or used by the City in the
performance of this Agreement shall be deemed employees, contractors or subcontractors of the
City and will not be considered employees, agents, contractors or subcontractors of the Zone or
the Authority for any purpose whatsoever. The City shall be solely responsible for the
compensation of all such contractors and subcontractors.
7.3 Personal liability of public officials, legal relations. To the extent permitted by
State law, no director, officer, employee or agent of the Zone or the Authority shall be personally
responsible for any liability arising under or growing out ofthe Agreement. THE PARTIES SHALL
INDEMNIFY AND SA VE HARMLESS EACH OTHER AND THEIR RESPECTIVE OFFICERS,
REPRESENTATIVES, AND AGENTS FROM ALL SUITS, ACTIONS, OR CLAIMS OF ANY CHARACTER
BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED BY ANY PERSON,
PERSONS, OR PROPERTY RESULTING FROM THE NEGLIGENT ACTS OF SUCH PARTY, OR ANY OF ITS
AGENTS, OFFICERS, OR REPRESENTATIVES IN PERFORMING ANY OF THE SERVICES AND ACTIVITIES
UNDER THIS AGREEMENT. The expenses of the Zone or the Authority with respect to this section
or Section 7.15, below, shall be satisfied from uncommitted City Net Tax Increment.
7.4 Notices. Any notice sent under this Agreement (except as otherwise expressly required) shall be
written and mailed, or sent by electronic or facsimile transmission confirmed by mailing written confirmation at
substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of
the receiving party at the following addresses:
La Porte Redevelopment Authority
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
La Porte Development Corporation
604 W. Fairmont Parkway
La Porte, Texas 77571
Reinvestment Zone Number One
P.O. Box 22167
Houston, Texas 77227-2167
Attn: David Hawes
Harris County
Harris County Community Services Department
Office of Economic Development
8410 Lantern Point Drive
Houston, Texas 77054
Attn. David B. Turkel, Director of
Community Services Department
Cc: Commissioner, Harris County Precinct 2
City of La Porte
604 W. Fairmont Parkway
La Porte, Texas 77571
Attn: City Manager
Each party may change its address by written notice in accordance with this section. Any communication
addressed and mailed in accordance with this section shall be deemed to be given when so mailed, any notice so
Page 8 of 11
sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is
acknowledged, and any communication so delivered in person shall be deemed to be given when receipted for
by, or actually received by, the Authority, the Zone, or the City, as the case may be.
7.5 Amendments and waivers. Any provision of this Agreement may be amended or waived if such
amendment or waiver is in writing and is signed by the Zone, the Authority the City, the Development
Corporation and the County. No course of dealing on the part of the Parties, nor any failure or delay by one or
more of the Parties, with respect to exercising any right, power or privilege under this Agreement shall operate
as a waiver thereof, except as otherwise provided in this section.
7.6 Invalidity. In the event that any of the provisions contained in this Agreement shall be held
unenforceable in any respect, such unenforceability shall not affect any other provision of this Agreement.
7.7 Successors and assigns. All covenants and agreements contained by or on behalf of a Party in
this Agreement shall bind its successors and assigns and shall inure to the benefit of the other Parties, their
successors and assigns.
7.8 Exhibits: titles of articles, sections and subsections. The exhibits attached to this Agreement are
incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that
in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement,
the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the Parties
and shall not be construed to have any effect or meaning as to the agreement between the Parties. Any reference
herein to a section or subsection shall be considered a reference to such section or subsection of this Agreement
unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable
exhibit attached hereto unless otherwise stated.
7.9 Construction. This Agreement is a contract made under and shall be construed in accordance
with and governed by the laws of the United States of America and the State of Texas; as such laws are now in
effect.
7.10 Entire Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR. CONTEMPORANEOUS. OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.
7.11 Term. This Agreement shall be in force and effect from the date of execution hereof for a term
expiring on the date that all Advances have been repaid in full, or January 1 of the year following the expiration
of the Zone.
7.12 Time of the essence. Time is of the essence with respect to the obligations ofthe Parties to this
Agreement.
7.13 Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be
hereafter given by any of the parties, the parties agree that such approval or consent shall not be umeasonably
conditioned, withheld or delayed.
7.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which when so
executed and delivered shall be deemed together shall constitute but one and the same instrument.
Page 9 of 11
7.15 Legal costs. If any Party hereto is the prevailing party in any legal proceedings against another
Party brought under or with relation to this Agreement, such prevailing Party shall additionally be entitled to
recover court costs and reasonable attorneys= fees from the non-prevailing Party to such proceedings.
7.16 Further assurances. Each Party hereby agrees that it will take all actions and execute all
documents necessary to fully carry out the purposes and intent of this Agreement.
7.17 Effect of Tri-Party Agreement. The obligations of the Parties hereunder are specifically
conditioned upon the approval, execution, and effectiveness of the Tri-Party Agreement.
[EXECUTION PAGE FOLLOWS]
Page 10 of 11
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of
,2010.
REINVESTMENT ZONE NUMBER
ONE, CITY OF LA PORTE, TEXAS
:~~:j Ptei-ttN
Title: Prfc~( elf fel
HARRIS COUNTY
By:
Name:
Title:
LAPORTE REDEVELOPMENT
AUTHORITY
By: $#!~
0/
Name: J'JrVJ<:;.-ej Pfp'.~+{'.pr
Title: Rp .2 ~rJ.p^-- +
/-
/// /
? ,
CITY( OF ~/ ..i?
//
By: K-
Name:
Title:
LA PORTE DEVELOPMENT
CORPORATION
By: /2-~,
/
Name: If: CA ~{'t> Cv qj~e,&-~
Title: j?;'U;:j {t /1,
Page 11 of 11
5
A
REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM
Agenda Date Requested: 7/26/10
Requested By: Stacey Osborne
Department:
Appropriation
Source of Funds:
Account Number:
Report:
Resolution:
Ordinance:
Amount Budgeted:
Amount Requested:
Budgeted Item: YES NO
Exhibits: Budget Summary
Exhibits:
Exhibits:
----~....~,.-~"',""'...,~"'___==_"_===_,_.,,"'_""'_"""""==__~~.~."'_,,.""===<,=,_...""e""""'~."""_i__~"""=="'-_,,=--,,#."'~~__'._k~=____=-<'''''''''
SUMMARY & RECOMMENDATION
The 2010/2011 Budget is going before Council in August, 2010. Account 038 is funded by the Y2 cent Type B Sales
Tax that this Board oversees. We would like you to review the budget summary and let us know of any questions,
problems or concerns you may have.
After the workshop we would like the Board to consider action adopting the 2010-2011 budget for the La Porte
Development Corporation Board prior to us submitting the Budget for Council's approval in August.
~,-"-,-,..""-><---~------""--"_.~-_._--_:_.",,,,,,,,,---~,",---,--,,,,-~
Action Required bv Economic Development Corporation:
uidance to staff and consider action approving the budget.
",,,,~,-,,,,,,,,,,"..,~-,,,---,,,,~,>.,,.~,,.,,,~,-,,,-_.,,,,,,,~,.,,,,,,,~,,,,,,,,~--_......~~.,.=-__w,.__~
Section 4B 1/2 Cent Sales Tax
Fiscal Year 2009-10
Expenditure Summm'J'
Actual Budget Estimated Requested Percellt
2008-09 2009-10 2009-10 2010-11 Change
Personal Services $ 109,846 $ 107,898 $ 58,075 $ 75,932 -29.63%
Supplies 1,967 1,900 1,252 1,650 -13.16%
Services & Charges 3,957,958 1,800,666 1,600,503 783,017 -56.52%
Division Total $4,069,771 $1,910,464 $1,659,830 $ 860,599 -54.95%
Scope of Serl';ces Sum 111 my
The Economic Development Division works with the Economic Development Corporation Board to set
direction and polices related to economic development projects in the City. The Department and its activities
are funded through the collection of a 1/2 cent sales tax which must be spent on economic development projects
related to capital investment and job creation. The Board recently completed refurbishment of the city website,
an Economic Development Strategic Plan and a community branding campaign. Each of these initiatives was
designed to assist the City with focused, targeted marketing efforts that will effectively communicate why La
Porte is the ideal community to establish a business. These activities also allow the City to better emphasize the
many amenities La POlie has to offer such as affordable housing, parks, green space, hike & bike trails,
outstanding schools and Galveston Bay activities.
Projects for the upcoming FY 2010-11 include the completion of the Gateway Enhancements on Main Street,
new historical markers for Main Street and elsewhere, and a strong tourism marketing campaign. We will
continue to budget $200,000 for facade grants for businesses along Main Street. We will also continue to work
with our community economic development paliners on business retention and expansion programs, small
business development, marketing efforts, workforce initiatives, transportation issues and quality of life issues
such as green space development and air and water quality. The Economic Development Coordinator will also
serve as the Business Ombudsman for the City of La Porte, working with new and existing businesses to help
them through the planning and zoning processes.
Personnel Positio1l Rostel'
Approved
2008-09
Approved Requested
2009-10 2010-11
0.5 0.5
0.5 0.5
1.0 1.0
Economic DevlDowntown Revitalization Coord 1.0
Secretary IV I
Total .. 1.0
City of La Porte
La Porte Development Corporation (038) Fund Summary
(Section 4B Sales Tax)
Beginlling Fuml Balallce 9/30/09
$
1,674,027
Plus Estimated 09-10 Revenues
1,443,698
Less 09.10 Expenditures and Commitments
Debt Payments
Economic Development Operations
Capital Projectsffransfers
Total Expenditures
664,104
195,726
800,000
1,659,830
Estimated FUlld Balance 9/30/10
1,457,895
Plus 10-11 Revenues:
1/2 Cent Sales Tax
Interest Income
Total Revenues
1,433,226
10,000
1,443,226
Equals Total Resources
2,901,121
Less 10-11 Expenditures:
Economic Development Operations
Debt Service Transfer *
236,493
622,692
Total Expenditures
859,185
Elldillg Fund Balallce 9/30/11
$
2,041,936
Revenues
Expenditures & Commitments
Revenues over Expenditures
$
Estimated
2009-10
1,443,698 $
1,659,830
(216,132) $
Projected
2010-11
I,443,226
859,185
584,041
$
*Debt Service Paymentsfor Library, Bay Area Boulevard & Canada Road and Ballflelds.
City of La Porte
La Porte Development Corporation Fund (038)
Statement of Revenues
Actual Budget Revised Requested
Object Description 2008-09 2009-10 2009-10 2010-11
Charges for Services:
403.02-00 1/2 Cent Sales Tax $ 1,479,331 $ 1,446,490 $ 1,433,226 $ 1,433,226
Charges for Services Subtotal [,479,331 [ ,446,490 1,433,226 1,433,226
Administrative Transfers:
480.01-01 Transfer from General Fund
480.01-33 Transfer from Street Maintenance
Administrative Transfers Subtotal
Interest:
483.0[-00 Interest Income 37,420 30,000 10,472 [0,000
Interest Subtotal 37,420 30,000 10,472 10,000
Tota[ La Porte Development Corp Fund Revenues $ 1,516,751 $ 1,476,490 $ 1,443,698 $ 1,443,226
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City of La Porte, Texas
Section 4B 1/2 Cent Sales Tax 038-6030-565
Detail of Expenditures
Actual Budget Estimated Requested
2008-09 2009-10 2009-10 2010-11
Personal Services:
1010 Regular Earnings $ 82,177 $ 78,000 $ 37,147 $ 51,004
1020 Overtime 2,782 4,320 4,320 4,320
1030 Certification 250
1035 Longevity 76 48 36
1060 FICA 6,073 5,654 2,967 4,093
1065 Retirement 12,335 12,624 6,147 9,237
1080 Insurance - Medical 6,357 7,206 7,206 7,206
1081 Insurance - Life 46 46 38 36
Personal Services Subtotal 109,846 107,898 58,075 75,932
Supplies:
2001 Office Supplies 545 500 400
2002 Postage 55 400 323 350
2015 Othcr Supplics 1,367 1,000 929 900
Supplies Subtotal 1,967 1,900 1,252 1,650
Services & Charges:
3001 Mcmberships & SUbscriptions 19,742 21,850 20,425 20,425
3020 Training/Seminars 1,570 2,500 3,221 2,000
4011 Building 1,123 2,500 1,000 2,500
4055 Computer Software 300 300 300
4060 Computer Lease Fccs 628 594 594
4065 Computer Maintenance Fees 2,334 2,721 2,721
5003 Legal 14,688 10,000 8,261 10,000
5005 Personnel Services 8,946
5007 Other Profcssional Services 202,820 200,000 20,000
6005 Advertising 21,788 20,000 18,431 30,000
7001 Electrical 5,848 8,000 6,000 8,000
7002 Natural Gas 352 600 600 600
7004 Water 894 1,300 700 1,300
7005 Misc Utilities 200 200 200
9050 Contingency 50,000 50,000 50,000
9997 Special Programs 10,000 15,997 15,000 15,000
9004 Adm Transfer to Fund 004 672,030 664,104 664,104 622,692
9015 Adm Transfer to Fund 015 3,004,141 800,000 800,000
Services & Charges Subtotal 3,957,958 1,800,666 1,600,503 7&3,017
Division Total S 4,069,771 $ 1,910,464 $ ] ,659,830 S 860,599
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