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HomeMy WebLinkAbout02-23-15 Meeting of the La Porte Development Corporation Board of Directors minutes RICHARD WARREN,PRESIDENT MIKE CLAUSEN,BOARD MEMBER MIKE COOKSLEY,VICE PRESIDENT 09 RANDY WOODARD,BOARD MEMBER CHUCK ENGELKEN,BOARD MEMBER v ~ m NANCY OJEDA,BOARD MEMBER JAY MARTIN,BOARD MEMBER TEXPe MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF FEBRUARY 23, 2015 The City of La Porte Development Corporation Board met on February 23, 2015, 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 Richard Warren called the meeting to order at 5:00 p.m. The following members of the La Porte Development Corporation Board were present: Board members Martin, Clausen, Woodard, Engelken and Ojeda. Absent: Vice-President Cooksley. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Michael Dolby and Clark Askins. 2. AUTHORIZATIONS (a) Consider approval of minutes of the meeting of La Porte Development Corporation Board held on February 9, 2015—P. Fogarty Board member Engelken moved to approve minutes of the meeting of La Porte Development Corporation Board held on February 9, 2015. Board member Clausen seconded. MOTION PASSED. Ayes: President Warren, Board members Ojeda, Woodard, Clausen, Engelken and Martin Nays: None Absent: Vice-President Cooksley (b) Consider approval or other action authorizing staff to execute payment in the amount of$9,338.94 to Ronda Stockton, owner of And Sew It Began—S. Livingston Economic Development Coordinator Scott Livingston provided a summary, and Ronda Stockton gave also provided a brief update. Board member Martin moved to authorize staff to execute the payment in the amount of$9,338.94 to Ronda Stockton, owner of And Sew It Began. Board member Clausen seconded. MOTION PASSED. Ayes: President Warren, Board members Ojeda, Clausen, Woodard, Engelken and Martin Nays: None Absent: Vice-President Cooksley (c) Consider approval or other action authorizing staff to publish 60-day public notice of a public hearing to consider awarding an economic development grant to the owners of Fischer's Do It Best Hardware for an amount not to exceed $350,000—S. Livingston Page 1 of 3 February 23,2015,La Porte Development Corporation Board Minutes Economic Development Coordlnator Scott Livingston provided a summary; Frank Herrera, ra , General Manager for Fischer's Do It Best Hardware, provided information for expanding and improving the business. Board member Woodard,asked if the ownership of the building is in a limited partnership or owned by an individual. Mr. Herrera responded the building is owned by both Mike Breaux and Rod Rothermel. Board member Woodard asked Mr. Breaux if he and Mr. Rothermel have a limited partnership. Mr. Breaux responded yes. Board member Woodard asked the name of the partnership. Mr. Breaux responded Fischer's Hardware Incorporated. Board member Woodard asked if the $1.2 million investment will be to enclose the lumber yard and change the fagade. Mr. Breaux responded yes. Board member Woodard asked if bids were done for the second phase of the expansion. Mr. Breaux responded not yet; the business is investigating programs that will assist with the expansion. Mr. Breaux also advised they will go out for bids in 2015, but he is not certain of the month. Board member Woodard asked if Do It Best is the primary lender of the program and if they are helping. Mr. Breaux advised not at the moment, but their biggest contribution will be merchandise. Board member Woodard asked if it has been discussed with the corporation the cost to improve the additional 15,000 square feet and double the area. Mr. Breaux responded that to take down the wall and put up a beam is a minimum of $50,000. Board member Woodard asked why not expand the business before spending on the fagade. Mr. Breaux responded they were not planning on expanding the square footage on the inside until the project came about and realized the store is not large enough, and then considered tearing the wall down and having a full lumber yard, which will increase sales by 15 to 20 percent. President Warren asked if Fischer's Hardware Incorporated is requesting $350,000 for a grant and the entire expansion will cost$750,000. Mr. Breaux responded no,they are requesting up to$350,000 and will spend an additional $750,000. Board member Woodard commented the board has tried to stay at about 10 years for paybacks. Board member Engelken commented the project is worthwhile, but his concern is the board usually has a cap at 25% and the payback is usually less years than what's proposed; and based on the facts he has heard at this point, the business needs to go back and sharpen up the plans and get bids with more details. Board member Engelken advised he is not ready to approve the grant at this point and would suggest the board deny the request. Economic Development Coordinator Scott Livingston informed the board there is not a policy that limits anything at 25%. The Pipeline Grill project was at 25%, and there are 5 other projects that are coming for consideration. He would like the board to consider the City of La Porte's 5-year Strategic Plan for beautification. This project is not an enhancement grant. Board member Woodard commented the payback period has been discussed more than once. Mr. Livingston responded yes he just want the board to consider the beautification and staff trying to fulfill the goals set by City Council with the 5-year Strategic Plan. City Manager Corby Alexander commented the 25% and payback of 10 years has been a rule of thumb without a policy. Board member Woodard asked if the board can give Fischer's Hardware Incorporated an amount to shoot for to help them with the business plan in order to come back to the board. Page 2 of 3 February 23,2015,La Porte Development Corporation Board Minutes 0 Board member Engelken commented the general practice has been 25% with payback of 10 years or less; and if they honor the guidelines, he would be more inclined to give a thumbs up instead of a thumbs down. Mr. Breaux advised now that they know the guidelines, they can work within them and come back. Board member Martin commented the board needs to adopt guidelines to have in place for projects that may be coming to the board for consideration. President Warren commented it is a good project, but the board does need guidelines. Board member Engelken moved to deny authorizing staff to publish a 60-day public notice of a public hearing to consider awarding an economic development grant to the owners of Fischer's Do It Best Hardware for an amount not to exceed $350,000 due to lack of information. Board member Martin seconded. MOTION PASSED. Ayes: President Warren, Board members Ojeda, Woodard, Clausen, Engelken and Martin Nays: None Absent: Vice-President Cooksley 3. SET DATE FOR NEXT MEETING—S. Livingston Board members set the next meeting dates for Monday, March 9, 2015, at 5:00 p.m.; March 23, 2015, at 4:45 p.m., and April 13, 2015, at 5:00 p.m. 4. STAFF REPORTS (a) Receive Financial Report—M. Dolby;.Finance Director Michael Dolby provided a Financial Report. 5. 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 member Engelken commented the board needs to have a future workshop meeting to develop guidelines for the economic development incentive programs; Board member Woodard commented he visited the Pipeline Grill in Baytown, and he was impressed with the operation of the restaurant; Board member Martin commented he would like to see economic development incentive grant policies from the Cities of Baytown, Deer Park and Pasadena; Board member Clausen agreed with a workshop meeting and commented he would like to educate the-public on what are the board's duties with sales taxes for economic development; City Manager Corby Alexander advised staff will be scheduling a workshop meeting; and President Warren thanked everyone for attending the meeting and agreed with everyone's comments. 6. ADJOURN — There being no further business, Board member Engelken moved to adjourn the meeting at 5:53 p.m. Board member Clausen seconded. MOTION PASSED. Respectfully submitted, Patrice Fogarty, d y Sect6tary Passed and approved on this 9th day of March, 2015. Presi ent Richard Warren Page 3 of 3 February 23,2015,La Porte Development Corporation Board Minutes