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Home My WebLink About07-07-15 Meeting of the La Porte Development Corporation Board of Directors minutes RICHARD WARREN,PRESIDENT L MIKE CLAUSEN,BOARD MEMBER F MIKE COOKSLEY,VICE PRESIDENT � Op RANDY WOODARD,BOARD MEMBER a CHUCK ENGELKEN,BOARD MEMBER v s m NANCY OJEDA,BOARD MEMBER JAY MARTIN,BOARD MEMBER rex&e MINUTES OF LA PORTE DEVELOPMENT CORPORATION BOARD MEETING OF JULY 7, 2015 The City of La Porte Development Corporation Board met on July 7, 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: Vice-President Cooksley, Board members Martin, Ojeda and Woodard. Board member Engelken arrived at the meeting at 5:17 p.m. Absent: Board member Clausen. Staff Present: Corby Alexander, Patrice Fogarty, Scott Livingston, Traci Leach, and Clark Askins. 2. AUTHORIZATIONS (a) Consider approval or other action of -minutes of the meeting of the La Porte Development Corporation Board held on June 1, 2015—S. Harris Board member Woodard moved to approve with amendments the minutes of the meeting of the La Porte Development Corporation Board held on June 1, 2015. Vice-President Cooksley seconded. MOTION PASSED. Ayes: President Warren, Vice-President Cooksley, Board members Woodard, Ojeda and Martin Nays: None Absent: Board members Engelken and Clausen 3. DISCUSSION OR OTHER ACTION (a) Discussion and possible action regarding the use of Workforce Development Funds— S. Livingston Economic Development Coordinator Scott Livingston presented a summary for the use of Workforce Development Funds. (b) Discussion and possible action regarding the current state of retail development and future opportunities for retail development— S. Livingston Economic Development Coordinator Scott Livingston presented a summary for the current state of retail development and future opportunities for retail development. Mr. Livingston also provided information on how Smart Choice came to the City of La Porte with a Mitsubishi dealership. Page 1 of 4 July 7,2015, La Porte Development Corporation Board Minutes Board member Martin inquired if there are any other options for the Old Kroger building on Fairmont Parkway. Mr. Livingston responded he met with the owner, and there are a few ideas for retail development. Board member Ojeda commented she know of a non-profit that was inquiring about the Old Kroger building, and the roof is being repaired as of today. Board member Woodard commented the types of businesses for employment in the community should be the type of businesses that provide enough of a wage that employees can purchase homes, raise families and contribute to the community. (c) Discussion and possible action regarding expansion of the boundaries of the La Porte Enhancement Grant Program and transferring $107,669.00 from the La Porte Development Corporation General Fund Balance to Capital Improvement Projects Account 015-9892-993 — S. Livingston Economic Development Coordinator Scott Livingston presented a summary and update on the three enhancement grant projects, which includes Eagle Energy, Lafitte's Cajun Station, and the Oak Center. Mr. Livingston presented the issues raised for making potential changes to the program that would include adding parking lot construction, incorporation of the City's Local Bidder Preference Policy, and eliminating the requirements that multiple bids be required for each eligible component less than $2,000.00. In addition, Mr. Livingston presented Staffs request for the Board to expand the boundaries of the La Porte Enhancement Grant Program to include W. Main Street/Spencer Hwy. from Hwy. 146 to the railroad tracks; southeast corner of Farrington Drive and Spencer Hwy.; northeast corners of Myrtle Creek and Spencer Hwy.; and southern corners of Underwood Road and Spencer Hwy. Board member Woodard asked if there is a map and definition of "blighted areas" of town. Economic Development Coordinator Scott Livingston advised he will provide the Board with the definition of `blight' under Housing and Urban Development. Board member Martin questioned making grant availability to all businesses in the City of La Porte on a first-come first-served basis. Mr. Livingston responded the Board can certainly offer grants to all businesses on a first-come first served basis. Board member Martin suggested not having any specific boundaries listed in the program. Board members directed Mr. Livingston to include all commercial properties and remove the clause from the application stating alterations should not be made within 5 years from construction, otherwise an applicant may be required to reimburse the La Porte Development Corporation immediately for the full amount of the grant. Mr. Livingston was advised he would bring all revisions back to the Board. Vice-President Cooksley moved to authorize Economic Development Coordinator Scott Livingston to publish notice for a public hearing to fund the Enhancement Grant Program in Fiscal Year 2015-2016. Board member Martin seconded. MOTION PASSED. Ayes: President Warren, Vice-President Cooksley, Board members Woodard, Engelken, Ojeda and Martin Nays: None Absent: Board member Clausen (d) Discussion and possible action regarding the proposed budget for La Porte Development Corporation Board for Fiscal Year 2015-2016 - S. Livingston Page 2 of 4 July 7,2015,La Porte Development Corporation Board Minutes Economic Development Coordinator Scott Livingston presented a summary for the proposed budget for La Porte Development Corporation Board for Fiscal Year 2015-2016, and information on formulating a Strategic Plan before the City can seek certification as an Accredited Economic Development Corporation (AEDO). City Manager Corby Alexander .commented there is a lot of value in the process, and becoming accredited will benefit the City. Economic Development Coordinator Scott Livingston distributed the current financial report and reviewed it. Board member Engelken moved to approve the budget and add $107,669.00 into the Enhancement Grant Program account. Then Board member Engelken withdrew his motion after some discussion. Vice-President Cooksley moved to approve the budget including an additional $107,669.00 to be transferred into the Enhancement Grant Program account. Board member Engelken seconded. MOTION PASSED. Ayes: President Warren, Vice-President Cooksley, Board members Engelken, Ojeda and Martin Nays: Board member Woodard Absent: Board member Clausen (e) Discussion and possible action regarding additional incentive programs—S. Livingston Economic Development Coordinator Scott Livingston presented a summary for additional incentive programs and recommendations for codifying the 10-year pay back model/program for new projects. Board member Ojeda commented that including in the policy that an applicant can receive up to 25% of the project's total capital expenditure will have every applicant expecting the entire 25%. City Manager Corby Alexander asked Board members if they wished to have the 25% measuring mechanism criteria removed from the scoring mechanism. Board member Ojeda questioned Mr. Livingston if he is utilizing the same criteria for new businesses and expansions. Mr. Livingston responded the 10-year pay back is for new projects, and there are 3 programs for existing businesses. Mr. Livingston advised Board members a decision does not have to be made tonight, and the item can come back with what the Board desires at a later date. President Warren commented the La Porte Development Corporation should not be in the business of redeveloping businesses, and business owners should have utilized their funds accordingly. Mr. Livingston reviewed all of the new programs for the Board to consider if they wanted to utilize either program. Vice-President Cooksley commented he looks at which project is best for the City as a whole. Mr. Livingston commented his understanding is the community focus. Page 3 of 4 July 7,2015,La Porte Development Corporation Board Minutes Vice-President Cooksley asked if the City owns the airport property and what will be done with the airport. City Manager Corby Alexander responded yes, and the City has accepted FFA funding for various improvements over the years that came with certain stipulations and approval processes if the airport was to be refurbished. Mr. Livingston advised Board members he can email the complex form of everything that has been discussed tonight regarding incentive programs. Board member Ojeda asked if a clause can be added to the agreement that will not allow applicants to sell businesses after receiving grants. Assistant City Attorney Clark Askins responded yes, a clause can be added to the terms of the agreement. Mr. Livingston added there is a clawback clause that if a business sold the property, they will lose the incentive. Vice-President Cooksley commented he would like an incentive program for existing businesses and one for new businesses. City Manager Corby Alexander responded if the Board only desires to have two options the incentive program can be scaled back. 4. SET DATE FOR NEXT MEETING—S. Livingston Board members set the next meeting date for Monday, August 24, 2015, at 5:00 p.m. 5. STAFF REPORT (a) Receive Financial Report— M. Dolby Economic Development Coordinator Scott Livingston presented the Financial 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 thanked Economic Development Coordinator Scott Livingston for all his hard work. 7. ADJOURN There being no further business, Vice-President Cooksley moved to adjourn the meeting at 7:40 p.m. Board member Ojeda seconded. MOTION PASSED. Respectfully submitted, atrice ogarty, City Secretary Passed and approved on this 24th day of August, 2015. President Richard Warren Page 4 of 4 July 7,2015,La Porte Development Corporation Board Minutes