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HomeMy WebLinkAbout06-06-11 Meeting of the La Porte Development Corporation Board of Directors minutes 2 RICHARD WARREN, PRESIDENT MIKE CLAUSEN pF Councilmember District 6 BOB PIZZITOLA, VICE PRESIDENT RANDY WOODARD JOHN ZEMANEK ■ m Board member Councilmember At -Large A / NANCY OJEDA CHUCK ENGELKEN Board member Councilmember District 2 MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF JUNE 6, 2011 The City of La Porte Development Corporation Board met on Monday, June 6, 2011, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to consider the following items of business: 1. Call to Order President Warren called the meeting to order at 5:05 p.m. Members of the La Porte Development Corporation Board present: Vice President Pizzitola; Board members Engelken, Zemanek, Woodard, Clausen and Ojeda. Absent: None Members of City Executive Staff and City Employees Present: City Manager's Office: Ron Bottoms and Stacey Osborne City Secretary Patrice Fogarty Assistant City Attorney Clark Askins Finance Director Michael Dolby 2. Consider approval of Minutes of the La Porte Development Corporation Board Meeting held on April 4, 2011 — P. Fogarty Board member Clausen moved to approve the minutes as presented. Board member Woodard seconded. MOTION PASSED. Ayes: President Warren, Vice President Pizzitola, Board members Zemanek, Clausen Engelken, Ojeda and Woodard Nays: None 3. Review Way - finding Signage proposals for the City of La Porte and provide staff with direction — S. Osborne Economic Development Coordinator Stacey Osborne presented proposals for Way- finding signage for the City of La Porte. Board member Zemanek moved to approve moving forward with Saifee Signs & Graphics LLC, and directed that signs are to look like the green signs submitted by staff. Board member Pizzitola seconded. MOTION PASSED. Ayes: President Warren, Vice President Pizzitola, Board members Zemanek, Clausen Engelken, Ojeda and Woodard Nays: None Page 1 of 2 June 6, 2011, La Porte Development Corporation Board Minutes 4. Review facade grant requests and provide staff with direction — S. Osborne Economic Development Coordinator Stacey Osborne presented facade grant requests to Board members. Board member Woodard moved to award a grant of $6,179.41 to Ms. Baldwin, A Statement in Glass, as presented. Board member Pizzitola seconded. MOTION PASSED. Ayes: President Warren, Vice President Pizzitola, Board members Zemanek, Clausen Engelken, Ojeda and Woodard Nays: None 5. Discussion regarding Lomax Arena — S. Osborne Economic Development Coordinator Stacey Osborne, City Manager Ron Bottoms and Board members discussed park upgrades and improvements to the Lomax Arena. It was requested that this item be brought back to the Board and that Director of Parks Stephen Barr attend the next meeting to provide information regarding revenues generated and the usage of the arena. The Board is interested in discussing funding at some level for improvements needed to the arena. 6. Executive Session — The City of La Porte Development Corporation reserves the right to meet in executive session on any agenda item should the need arise and if authorized by the Texas Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code. An executive session was not convened. 7. Board Comments: Board members Ojeda, Woodard, Clausen, Engelken, Zemanek, Vice President Pizzitola and President Warren Board member Zemanek requested financial statements of the La Porte Development Corporation be included in future agenda packets. City Manager Bottoms stated staff will provide them. 8. Adjournment There being no further business, at 5:38 p.m., Board member Engelken moved to adjourn the meeting. Re ectfully submitted, ftitL -. J9i24iJt1 Pat Fogarty, CSecret Passed and approved on this vs 7 day of , 2011. President Richard Warren Page 2 of 2 June 6, 2011, La Porte Development Corporation Board Minutes 3 REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested: 6/27/11 Source of Funds: Requested By: Stacey Osborne Account Number: 15- 9892 - 993 -1100 Department: CMO Amount Budgeted: $200,000 Report: X Resolution: Ordinance: Amount Requested: $25,000 Exhibits: Application Budgeted Item: IYES NO Exhibits: Evaluation Summary Exhibits: SUMMARY & RECOMMENDATION In the 2008 -09 budget year, the La Porte Economic Development Corporation agreed to fund an enhancement grant program for the Main Street Overlay District. The program offered matching grants of up to $25,000 for businesses in the Main Street Overlay District to improve building facades. The project was allotted $200,000. The goals of the project were to beautify Main Street, to enhance Main Street's appeal to new businesses and visitors, and to add value to the City of La Porte. Donald E. Hulen has submitted a grant application for his business, Real Cheap Tools, which is located at 111 South 8 Street. The Enhancement Grant Application Committee met to discuss the application, and agreed that it should be approved for an amount not to exceed $25,000. The actual award will be one -half of the amount Mr. Hulen spends on approved expenses for the project up to $25,000, and will be contingent upon the project being completed as indicated in this grant application. Attached is the application that Mr. Hulen submitted, as well as an evaluation summary and comments regarding required changes and acknowledged non - conformities. The committee recommends that the Board conditionally award a grant in an amount not to exceed $25,000, based on receipts and completion of work as indicated. Noted changes must be made to original plans in order for grant monies to be awarded. Action Required by Economic Development Corporation: Cons' • - approving a grant amount not to exceed $25,000 for Mr. Hulen and Real Cheap Tools, to be awarded at the c pleti n of the project, conditional upon receipts and completion of work as indicated. A 1 8 At or j orte Develo ' ment Cor s oration A enda An 41 Ron Bottoms, ity Manager ( date .. f �, r 4? 26 20 11 REC C M CE ANAGER'S main O FFI Street Frogr--In t Grant m n- Enhance Appl H For Tools CheaP Real h Sts th 8t 111 S°u Texas La Po rte, f ��'' �', nay e bt` 4°444444,444:44'44'-'44' � a4y,s^`�. r`s'� 4 " - '?" v " n � 8 } :, , i $ ,,ti emu, �' 4 '� " � { N e v , ,., _ t ,„_.;.,n ,,,,Ir: ,,,,,,ko.. , , ,,,..,..... . . ,... '.:-W",C, P ::-. . r r t7 5 tom 1 BESINESS. OY . FIE AY. Main Street Enhancement Grant APPLICATION Please print clearly. When you have completed the application, p /ease submit the application to: City of La Porte Economic Development Office 604 W. Fairmont Pkwy La Porte, TX 77571 APPLICANT INFORMATION: APPLICATION DATE: ` `} ) /,,2 /// Applicant Nome o,,uAL�P j /�rei Business Name /2g4 G/1h A-P /045 Physical Business Address Business Owner (if different from applicant) Mailing Address � / 2 .1 612 7777 do,v u 4,0 t �'tv1 � l.. X 44 Contact Phone Email Address TYPE OF WORK (check all that apply): L 'acade Rehabilitation /Enhancement 13'Awnings /Signage /J �° D7�Beautification D''ther (describe): J ) ) r7! 1 b,Y /tv 4= "WI DETAILS OF PLANNED IMPROVEMENTS (attach additional pages if necessary): (51'( ENHANCEMENT GRANT APPLICATION, PAGE 1 i BEISINESS.PYIR BAY. Please list Contractor and /or Project Architect Proposals and Total Amounts (attach original proposals): CONTRACTOR /PRO ECTARCHITECT TOTAL AMOUNT 1. - % , 1 4 7 $ f7 ff3Z. 2. ! jam jam $ /7 4520 • e° 1 $ 4• $ 5• $ BUDGET DETAIL: PROJECT EXPENDITURES FUNDS REQUESTED FUNDS APPLIED TOTAL Facade Rehab $ yr 6.3 ` $ $ Awnings /Signage $ Z DO -° $ $ Beautification $ .52.. ` `� $ $ Other (list): 57d,; $ i DO'o, °'U $ $ Other (list): /)u..Spy4,grL $ 2YY' $ $ TOTALS $ $ $ Total estimated cost of proposed project: $ ,575 Amount requested (up to 5o% of total cost, $2,500 to $25,000): $ , goo' Please attach co /or samples, model numbers (for windows, doors, etc.), photos, scale drawing, and other illustrations of work to be completed. Please include as much detail as possible. Your signature on this application certifies that you understand and agree with the following statements: 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 facade, 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 Economic Development Corporation immedigte for the full amount of the grant. APPLICANT SIGNATURE D A E ENHANCEMENT GRANT APPLICATION, PAGE 2 3 L & M Contractors, Inc. 511 S. Utah La Porte, TX 77571 (281)417 -8537 FAX (281) 864 -4411 Cell (281)932 -3128 Email: bryan@lmcontractors.com May 24, 2011 Mr. Don Hulen Real Cheap Tools 111 S. 8 St. La Porte, TX Re: La Porte Tool Box 111 S. 8 Street La Porte, TX REVISED PROPOSAL We propose to furnish labor and material to construct the new building front on your existing • building as per plans prepared by James Hervey Morris Architecture & Design, dated Sept. 18, • 2009, sheets A1.00, A1.01, A2.01, & A3.01 , for the sum of $ 49,832.00. We exclude painting the rear of the building, fire sprinkler system, key box, and any work not shown on plans. Revised bid is based on using EIFS in lieu of stucco on the exterior, hard EIFS to be used on first 8' height, and steel entry doors are by ReliaBilt sold by Lowe's. We include the sign and permit. We exclude landscaping and restriping of the parking lot. Owner to provide construction electricity and water. Sincerely, Bry. it Dore • • Sheetl La Porte Tool Box 111 S. 8th Street La Porte,TX 5.24.11 COST BREAKDOWN Paving Demo and Replacement 1763 Conc. WorK 4956 Framing and Carpentry 10384 Doors and Windows 3027 Drywall 1086 Stucco (EIFS) 10764 Roofing & Sheetmetal 5546 Painting 1109 Decor Paint 3894 Electrical 3304 Supervision 600 Sign 2800 Building Permit 600 TOTAL 49832 Page 5 D .fplanned Improvements • Cover existing "1950's Ice House Beer Joint" facade with a giant toolbox facade. • The plans call for the front of the building pavement to be excavated and a concrete footing poured to support the new walls. The material covering the walls is EIFS Stucco (a product resembling stucco, but without the probability of cracking associated with stucco). The new fagade will include 3 windows on each side of the covered entrance. The front door will be made of steel with the upper half windowed . • The space behind the windows will be accessed by doors next to the main entrance door, but the space will be used for displaying tools and will not be accessible to the public. Red letters "La Porte Tool Box" will be 24" high and internally lit. • Install new commercial grade siding to the North side of the building the total length of the side not covered by the fagade. • Seal and restripe the parking lot • Add window box flower planters to each of the window openings • Move existing gate and fence back 30 feet to allow more parking. I S �y `�1y/�.� *Lj - - -� fi j li' it 11 r ;,* Milli: min X11 Inn I I I III 1111111 "I 4, Beaut • Two eight Foot long window box similar to the inset photo. Made of treated lumber and painted with good grade exterior latex white paint. ♦ Dumpster cover -up. Resembles large chest type tool box. Made from exterior grade ply- wood. The front opens up with two doors on hinges located on the inside. Three window boxes on the inside with flowers. • New siding on the North side from the facade to the end of the building. « m xa a ,-/"I a : a.....,.r. .�tx. > 9�s '.„7,,,,,,i ria � �t " 1 ti s tii ;g : ` , ' t igt , . ...‘, , - .' -; ., . . ..,, i , ....,.. 1 l u. ,,.. it 111 14b4 ,,,.it, iiiii et°, Reale' 6 re L k 4 ,.., , " al q jj • + ,, I r r r g p'> r. ;. . gq �( s _ ..... - f c „i , #, < ` T` ; 1- aaY h s+”{ �: t—, .max T lik t a I 3 i { 1 ., 7 Unisque B °id° The Tool Box design is not historic in itself, but it is a unique design and there are many examples of historic buildings designed to represent their main business. Our Unique Tool Box design will attract customers from the Bay Area as well as tourists stopping off on their way to Galveston. Other businesses in La Porte will benefit, such as. restaurants, gas stations and of course Main Street Retailers. This new facade will encourage other store owners in the Main Street Overlay to fix up and spruce up. 41_^ 4 s I ,,, i : „ , „■' , •:''. 1 4 ' ' $.1 .,,, i 1 t 1 1 1, `, I'? t, ' l, .4 ' The Kansas City Public Library is shaped like a The five story shoe house was built in 194$ by Mahlon N. bunch of classic books, incl Th e Lord of the Haines, owner of the Haines Shoe Company. Rings and Charlotte's Web. � The Strand f Galveston > �o The Bi Horn o sa, ti , r YI[ ? ,.. a s •" a r ' F s . 3 2's f'� t+�s { ._... &'AS . v . -a s - k ., a a.� . �.. -, i ?„;n:,y ' <. . _ . . - _ _ Longaberger is an American manufacturer of maple The Big Duck was was originally built in 1931 by duck farmer Martin wood pic a nic baskets. This is their is headquarters Maurer. 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Main Street Enhancement Grant Program Evaluation Notes /Comments Date: 6/15/11 Applicant: Real Cheap Tools —111 S. 8 Street Notes from: City of La Porte Planning Department Required Changes: The City requires that the following changes be made to the original plans before grant monies will be awarded: • Dumpster to be removed from street right -of -way and relocated to private property (in gate /fence relocation area along north side of building) • Sign pole /sign to be removed from street right -of -way. Only signage proposed for project is building signage. • Required sealing /striping of parking lot shall include accessible sized parking space /aisle and signage. Recognized Non - Conformities: • Front 4' building expansion and south side expansion is authorized. • Existing south side setback non - conformity continues to exist. • Parking spaces /location non - conformities continue to exist. • On -site buildings continue to exceed authorized maximum lot coverage. LA PORTE BY THE BAY 604 W. Fairmont Parkway La Porte, Texas 77571 (281) 470 -5017 4 REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested: 6/27/11 Source of Funds: Requested By: Stacey Osborne Account Number: Department: Amount Budgeted: Report: Resolution: Ordinance: Amount Requested: Exhibits: Budget Summary Budgeted Item: YES NO Exhibits: Exhibits: SUMMARY & RECOMMENDATION The 2011/2012 Budget will go before Council in August. Account 038 is funded by the 1 /2 cent Type B Sales Tax that this Board oversees. Staff would like the Board to review the budget summary and let staff know of any questions, problems or concerns that members may have. The current budget is attached for your reference, and staff will discuss key points of the budget at tonight's workshop. After this workshop, staff would like the Board to consider action adopting the 2011/2012 budget for the La Porte Development Corporation Board prior to the City submitting the Budget for a public hearing and Council's ratification. Action Required by Economic Development Corporation: Provide guidance to staff and consider action approving the budget. pprov. o a P : Development Corporation Agenda t /./(Al Ron Bottoms, City Manager date Section 4B 1/2 Cent Sales Tax Fiscal Year 2011 -12 Expenditure Summary Actual Budget Estimated Requested Percent 2009 -10 2010 -11 2010 -11 2011 -12 Change Personal Services $ 61,322 $ 75,932 $ 76,684 $ 64,975 - 14.43% Supplies 1,634 1,650 1,485 3,450 109.09% Services & Charges 1,552,792 1,138,017 1,130,894 820,369 - 27.91% Division Total $1,615,748 $1,215,599 $1.209,063 $ 888,794 - 26.88% Scope of Services Summary 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. Past activities have included the re- nourishment of Sylvan Beach, the ball fields at Pecan Park, the library, and infrastructure improvements on Main Street. In the upcoming FY 2011 -12 we will continue to budget $200,000 for enhancement grants for businesses along Main Street. We will also continue to work with our regional economic development partners on business retention and expansion programs, small business development, marketing efforts, workforce initiatives, transportation issues and quality of life issues. 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 Position Roster Approved Approved Requested 2009 -10 2010 -11 2011 -12 Economic Dev/Downtown Revitalization Coord 0.50 0.50 0.50 Secretary IV 0.50 0.50 0.25 Total 1.00 1.00 0.75 City of La Porte La Porte Development Corporation (038) Fund Summary (Section 4B Sales Tax) Beginning Fund Balance 9/30/10 $ 1,639,258 Plus Estimated 10 -11 Revenues 1,601,340 Less 10 -11 Expenditures and Commitments Debt Payments 622,692 Economic Development Operations 231,371 Capital Projects /Transfers 355,000 Total Expenditures 1,209,063 Estimated Fund Balance 9/30/11 2,031,535 Plus 11 -12 Revenues: 1/2 Cent Sales Tax 1,628,379 Interest Income 4,000 Total Revenues 1,632,379 Equals Total Resources 3,663,914 Less 11 -12 Expenditures: Economic Development Operations 200,325 Debt Service Transfer * 688,469 Capital Projects /Transfers - Total Expenditures 888,794 Ending Fund Balance 9/30/12 $ 2,775,120 Estimated Projected 2010 -11 2011 -12 Revenues $ 1,601,340 $ 1,632,379 Expenditures & Commitments 1,209,063 888,794 Revenues over Expenditures $ 392,277 $ 743,585 *Debt Service Payments for Library, Bay Area Boulevard & Canada Road and Ballfields. City of La Porte, Texas Section 4B 1/2 Cent Sales Tax 038 - 6030 -565 Detail of Expenditures Actual Budget Estimated Requested 2009 -10 2010 -11 2010 -11 2011 -12 Personal Services: 1010 Regular Earnings $ 39,551 $ 51,004 $ 51,567 $ 42,666 1020 Overtime 4,141 4,320 4,320 4,320 1030 Certification 250 - - - 1035 Longevity - 36 104 106 1060 FICA 3,293 4,093 4,214 3,577 1065 Retirement 6,843 9,237 9,237 8,200 1080 Insurance - Medical 7,206 7,206 7,206 6,086 1081 Insurance - Life 38 36 36 20 Personal Services Subtotal 61,322 75,932 76,684 64,975 Supplies: 2001 Office Supplies - 400 235 400 2002 Postage 350 350 350 350 2015 Other Supplies 1,284 900 900 2,700 Supplies Subtotal 1,634 1,650 1,485 3,450 Services & Charges: 3001 Memberships & Subscriptions 20,520 20,425 20,425 20,500 3020 Training /Seminars 3,808 2,000 2,000 3,000 4011 Building 1,092 2,500 2,500 1,600 4055 Computer Software - 300 300 - 4060 Computer Lease Fees 594 - - - 4065 Computer Maintenance Fees 2,721 - - - 5001 Accounting - - - 5,000 5003 Legal 6,924 10,000 10,000 10,000 5005 Personnel Services 8,946 - - - 5007 Other Professional Services 12,289 20,000 22,798 24,000 6005 Advertising 17,465 30,000 32,154 30,000 6010 Janitorial 1,037 - 125 - 7001 Electrical 11,567 8,000 8,000 10,500 7002 Natural Gas 426 600 600 500 7004 Water 641 1,300 1,700 1,600 7005 Misc Utilities - 200 3,000 200 9050 Contingency 658 50,000 49,600 25,000 9997 Special Programs - 15,000 - - 9004 Adm Transfer to Fund 004 664,104 622,692 622,692 688,469 9015 Adm Transfer to Fund 015 800,000 355,000 355,000 - Services & Charges Subtotal 1,552,792 1,138,017 1,130,894 820,369 Division Total $ 1,615,748 $ 1,215,599 $ 1,209,063 $ 888,794 City of La Porte La Porte Development Corporation Fund (038) Statement of Revenues Actual Budget Revised Requested Object Description 2009 -10 2010 -11 2010 -11 2011 -12 Charges for Services: 403.02 -00 1/2 Cent Sales Tax $ 1,571,258 $ 1,433,226 $ 1,596,450 $ 1,628,379 Charges for Services Subtotal 1,571,258 1,433,226 1,596,450 1,628,379 Miscellaneous: 410.00 -00 Miscellaneous 48 - - - Miscellaneous Subtotal 48 - - - Interest: 483.01 -00 Interest Income 8,254 10,000 4,890 4,000 Interest Subtotal 8,254 10,000 4,890 4,000 Total La Porte Development Corp Fund Revenues $ 1,579,560 $ 1,443,226 $ 1,601,340 $ 1,632,379 5 REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested: 6/27/11 Source of Funds: Capital Improvement Requested By: Stacey Osborne Account Number: 015- 9892 - 992 -11.00 Department: CMO Amount Budgeted: $75,000 Report: Resolution: Ordinance: Amount Requested: Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION At the meeting of the La Porte Economic Development Corporation (EDC) on June 6 2011, the EDC Board reviewed proposals for directional signage in the City. The Board selected the proposal submitted by Saifee Signs, which was the lowest quote received. As the Board may recall, this particular proposal was included at the last minute because it was in the email box of a staff member who had to leave for a medical emergency. The Board expressed a desire to move forward with Saifee Signs, but asked for some additional background information about the company before approving the contract. After consulting with the Purchasing Department, staff has some concerns about the discrepancy between the lowest- and highest- priced bids, the fact that the bids don't appear to include the same items in them, and the fact that TXDOT approvals are not specifically addressed in all of the bids. Staff is not comfortable recommending this proposal for fmal approval at this time, and would like to further investigate all of the companies who submitted quotes. Upon consultation with Purchasing, we may re- submit this project through a formal bidding process. Action Required by Economic Development Corporation: ovide •i ection to staff. AI . r uJ '' r La ' ji e Develo s ment Cor • oration A. enda I ai l 1 / 6%i 71, Ron Bottoms, City Manager date 6 REQUEST FOR LA PORTE ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM Appropriation Agenda Date Requested: 6/27/11 Source of Funds: Requested By: Randy Woodard Account Number: Department: CMO Amount Budgeted: Report: Resolution: Ordinance: _ Amount Requested: Exhibits: Opinion from Clark Budgeted Item: YES NO Exhibits: Exhibits: SUMMARY & RECOMMENDATION Randy Woodard has requested that the Board discuss the possibly of funding a low- powered FM radio station. Attached is Clark's opinion regarding that issue, which has been forwarded to the Board via email. Action Required by Economic Development Corporation: Discuss the possibly of funding a low powered FM radio station. • ' rove ' i r La r e Develo s ment Cor • oration A ends (..11 R i c ottoms, City anager date Osborne, Stacey From: ctaskins @swbell.net Sent: Monday, June 20, 2011 10:59 AM To: Osborne, Stacey; Bottoms, Ron Subject: EDC funding for radio station Stacey: The LP Economic Development Corporation has requested that the City Attorney's office render an opinion on the legality of using EDC funds to help contribute towards the cost of developing a non - profit radio station, which would also stream broadcasts on the internet. Broadcasts would potentially promote local city and business interests. In working with EDC member Randy Woodward, we have identified two possible statutory grounds for making this type of expenditure: 1) Local Government Code Sec. 501.103(2) allows EDC funds to be used in connection with a project for "infrastructure necessary to promote or develop new or expanded business enterprises, limited to .... telecommunications and Internet improvements ". 2) Local Government Code Sec. 505.103 authorizes an EDC to "spend not more than 10 percent of the corporate revenues for promotional purposes ". In my opinion, we probably can not justify making an expenditure for the radio station under LGC 501.103(2) for "telecommunications and Internet improvements ". The purpose behind this statute is to allow EDC funds to pay costs directly related to installation and upkeep of telecommunication /internet infrastructure. A good example of a proper application of the statute would be the use of EDC funds to pay for the placement of telecommunication cables in and from a street right -of -way to a new or expanding office building or business park complex. As presented, the proposal is not to directly fund the cost of telecommunication infrastructure, but instead is cash grants to start up a radio station, which presumably would cover all associated costs for the operation. Also, even if we can overcome this hurdle by perhaps limiting the funding to equipment for internet broadcasts there is the concern that the other requirement of the statute — that there must be a nexus between the telecommunication infrastructure and promotion of new or expanded enterprises- is weak. It is unclear how internet streaming of broadcasts by a non - profit radio station which may air pieces about the city or local businesses "promotes or develops new or expanded business enterprises ". I contacted Bill Longley, counsel with the Texas Municipal League who specializes in EDC law about this question, and he voiced the same concerns. He didn't think an EDC grant to a radio station constituted development of telecommunication infrastructure, even if it streamed broadcasts on the internet. He also emphasized that there has to be a direct relationship to promotion of business development. There is a better chance of justifying an EDC expenditure on a non - profit radio station under LGC 505.103, for general promotion of the city. This type of expenditure does not require a project (and thus no public hearing, notices in the newspaper), but together with other EDC promotional expenditures (i.e. directional signage) can not exceed 10% of yearly EDC revenues. Also, there does not have to be a link to "new or expanded business enterprises ". However, to move forward, it would be absolutely necessary that the radio station proposal be further developed to show how the City of La Porte (and the development of business within La Porte) in the city would be promoted by the day -to -day operations of the radio station. 1 Please let me know if you have any further questions. Clark 2