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Home My WebLink About09-22-14 Meeting of the La Porte Development Corporation Board of Directors minutesRICHARD WARREN, PRESIDENT MIKE COOKSLEY, VICE PRESIDENT CHUCK ENGELKEN, BOARD MEMBER JAY MARTIN, BOARD MEMBER MIKE CLAUSEN, BOARD MEMBER RANDY WOODARD, BOARD MEMBER NANCY OJEDA, BOARD MEMBER MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF SEPTEMBER 22, 2014 The City of La Porte Development Corporation Board met on September 22, 2014, 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 4:49 p.m. The following members of the La Porte Development Corporation Board were present: Board members Martin, Clausen, Engelken and Vice- President Cooksley. Absent: Board member Woodard. Staff Present: Corby Alexander, Sharon Harris, Scott Livingston, Michael Dolby, Clark Askins and Traci Leach. 2. CONSENT AGENDA (All consent agenda items are considered routine by the La Porte Development Corporation Board and will be enacted by one motion. There will be no separate discussion of these items unless a Board member requests an item be removed and considered separately.) (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on August 18, 2014 — S. Harris (b) Consider approval or other action authorizing the disbursement of Payment No. 1 of 3, in the amount of $5,000.00, to Richard Design Services, Inc., pursuant to previously approved economic incentive agreement between the La Porte Development Corporation and Richard Design Services, Inc. — S. Livingston Vice -President Cooksley moved to approve the consent agenda as presented. Board member Martin seconded. Ayes: President Warren, Vice -President Cooksley, Board members Ojeda, Clausen, Engelken and Martin Nays: None Absent: Board member Woodard 3. PUBLIC HEARING AND ASSOCIATED MATTERS (a) Public Hearing to receive comments regarding proposed project of the La Porte Development Corporation to make expenditure of funds not to exceed $450,000.00, in accordance with economic incentive agreement with ACT Independent Turbo Services, Inc., - S. Livingston The public hearing was opened at 4:50p.m. Economic Development Coordinator Scott Livingston presented a summary regarding a proposed project of the La Porte Development Corporation to make expenditure of funds not to exceed $450,000.00, in accordance with economic incentive agreement with ACT Independent Turbo Services, Inc. Page 1 of 3 September 22, 2014, La Porte Development Corporation Board Minutes Glen Turner, Vice -President of Engineering and IT, with ACT Independent Turbo Services, Inc. provided a brief overview of the business and introduced the executive staff team. Board member Martin questioned Economic Development Coordinator Scott Livingston how he came up with a recommendation of $275,000.00 for the amount of an economic incentive agreement with ACT Independent Turbo Services, Inc. Economic Development Coordinator Scott Livingston responded by using the La Porte Development Corporation Board Project Score Card - PRIORITIES and basing it on the amount of funds in the account, other projects and the demand for capital. Board member Martin questioned if there were other projects in line. Mr. Livingston advised other projects in various stages of discussion are re -developments of S. Broadway Retail Strip Center; Fischer's Hardware; former Kroger; Main Street business attraction and retail attraction of the southeast corner of Spencer Hwy and Canada Road. City Manager Corby Alexander added the projects are prospective and nothing has been confirmed by any companies. Vice -President Cooksley questioned the Payback Period for $275,000.00 City Manager Corby Alexander responded around six and a half years. President Warren questioned if the amount of the economic incentive payments can be divided over a period of time. Economic Development Coordinator Scott Livingston responded yes, ACT Independent Turbo Services, lnc.is open to multiple payments, and also recommend the payments be issued based on performance. Board member Ojeda requested ideas of performance indicators for ACT Independent Turbo Services, Inc. Economic Development Coordinator Scott Livingston advised performance indicators will consist of moving of equipment; purchasing equipment; certificate of occupancy and actual employment of personnel. Board member Clausen commented performance indicators will be a part of the proposed economic incentive is approved. Board member Ojeda questioned Mr. Turner if there will be an increase in job growth. Mr. Turner responded the company is forecasting job growth by the time ACT Independent Turbo Services, Inc.is relocated. Vice -President Cooksley questioned Mr. Turner how long does he predict to get employees located in La Porte. Mr. Turner responded he predicts employees in operation to be moved the third quarter of 2015 and completed by the fourth quarter to 2015. Vice -President Cooksley questioned Mr. Turner if he knew if any employees for ACT Independent Turbo Services, Inc. lives in La Porte. Mr. Turner responded he would guess a minimum of six. There being no further public comments, the public hearing was closed at 5:12 p.m. (b) Consider approval or other action authorizing project of the La Porte Development Corporation to make expenditure of funds not to exceed $450,000.00, in accordance with economic incentive agreement with ACT Independent Turbo Services, Inc. - S. Livingston Board member Martin moved to authorize $426,000.00 to ACT Independent Turbo Services, Inc. in accordance with an economic incentive agreement. Board member Ojeda seconded. Ayes: President Warren, Vice -President Cooksley, Board members Ojeda, Clausen, Engelken and Martin Nays: None Absent: Board member Woodard Page 2 of 3 September 22, 2014, La Porte Development Corporation Board Minutes 4. SET DATE FOR NEXT MEETING — S. Livingston Board members set the next meeting date for Monday, October 27, 2014 at 5:00 p.m. 5. STAFF REPORTS Report. (a) Receive 2014 Annual Report from Bob Mitchell, President of the Bay Area Houston Economic Partnership — S. Livingston Bob Mitchell, President of the Bay Area Houston Economic Partnership provided the 2014 Annual (b) Receive Financial Report — M. Dolby Finance Director Michael Dolby provided a report. 6. BOARD MEMBER COMMENTS regarding matters appearing on agenda; recognition of community members, city employees, and upcoming events; inquiry of staff regarding specific factual information or existing policies. Board members Ojeda and Martin welcomed ACT Independent Turbo Services, Inc. to La Porte and thanked Bob Mitchell, President of Bay Area Houston Economic Partnership for the 2014 Annual Report. President Warren thanked everyone for attending the meeting. 7. EXECUTIVE SESSION — The La Porte Development Corporation reserves the right to meet in executive session on any agenda item should the need arise and if authorized by the Texas Open Meetings Act, Title 5, Chapter 551, of the Texas Government Code. There was no executive session. 8. RECONVENE into regular session and consider action, if any, on items discussed in executive session. There was no executive session. 9. ADJOURN There being no further business, Board member Engelken moved to adjourn the meeting at 5:40 p.m. Vice -President Cooksley seconded. MOTION PASSED. Respectfully submitted, / n AA haron Harris, Assistant City Secretary Passed and approved on this :7th ay of October, 2014. )b -L. " 'L J. President RkvIgy- Page