HomeMy WebLinkAboutPR 14141:MARSHALL GROUPinteroffice
MEMORANDUM
To:
From:
Date:
Subject:
Mayor, City Council, and City Manager
Mark T. Sokolow, City Attorney ~ ~
July 13, 2007
P. R. No. 14141 Council Meeting of July 17, 2007
Attached is P. R. No. 14141 authorizing the City
Manager to execute an agreement between the City of Port Arthur
and The Marshall Group. John Hall, on behalf of PAIG, has
recommended the approval thereof. I expect Mr. Marshall to also
approve the final draft and provide Exhibit "D" {the rate
schedule) and Exhibit "E" (the list of subcontractors).
MTS:ts
Attachment
CC:
John Hall
Bryon Marshall
z.prl4141.memo
P. R. No. 14141
07/13/07 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AGREEMENT BETWEEN THE CITY OF PORT
ARTHUR AND THE MARSHALL GROUP
WHEREAS, Resolution No. 07-076 approved a Memorandum of
Understanding between the City of Port Arthur and the Southeast
Texas Plant Managers Forum; and
WHEREAS, pursuant to said Memorandum of Understanding, the
City of Port Arthur was to enter into an agreement with the
Marshall Group; and
NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS:
That the facts and opinions in the preamble are
Section 1.
true and correct.
Section 2.
That the City Manager is herein authorized to
execute a contract with the Marshall Group in substantially the
same form as attached hereto as Exhibit "A".
Section 3. That a copy of the caption of this Resolution
be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this __ day of
, A.D., 2007, at a Meeting of the City Council of
the City of Port Arthur,
Mayor
Councilmembers
Texas, by the following vote: AYES:
NOES:
ATTEST:
MAYOR
CITY SECRETARY
APPROVED AS TO FOI~M:
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
APPROVED AS TO AVAILABILITY OF FUNDS:
DIRECTOR OF FINANCE
z.prl4141
EXHIBIT
CONTRACT
FOR PROFESSIONAL SERVICES
WHEREAS, the Marshall Group submitted a strategy for
revitalizing West Port Arthur, as described in Exhibit "A"; and
WHEREAS, the Marshall Group has been recommended to the City
by the Committee of Plant Managers, Port Arthur Industrial Group
(PAIG) of the Southeast Texas Plant Manager's Forum; and
WHEREAS, the City of Port Arthur entered into a Memorandum
Of Understanding with the South East Texas Plant Manager's Forum,
as described in Exhibit "B"; and
WHEREAS, The Marshall Group has'submitted an implementation
plan, as described in Exhibit "C"; and
WHEREAS, pursuant
City of Port Arthur is
Marshall Group for the
2008, as stated herein.
to said Memorandum of Understanding, the
entering into an agreement to engage The
time period of August 1, 2007 to July 31,
NOW, THEREFORE, the City of Port Arthur and The Marshall Group
do mutually agree as follows:
1. Employment of The Marshall Grou~
The CITY hereby engages The Marshall
the services to implement the West
Revitalization Plan, under the oversight of
Arthur, with support and input from the PAIG.
Group who will perform
Port Arthur Community
the City of Port
The Marshall Group
z .marshall_contract 2007_2 1
will coordinate the 2007 implementation plan for the revitalization
effort, as described in Exhibit "C", within the project budget and
subject to the availability of funds as described in the Memorandum
of Understanding, as delineated in Exhibit ~B". This contract
shall be performed in the City of Port Arthur. The goals of the
project shall also include the goals., as delineated in the
Memorandum of Understanding, attached as Exhibit "B", and the
description of the revitalization, as described in Exhibit "A".
2. Scope of Services
The Marshall Group shall provide the services to implement the
revitalization plan as described in Exhibits "A", "B", and "C",
with the work to also specifically include the following tasks:
a. Conduct one or two public meetings and/or workshops in
conjunction with the City of Port Arthur and the PAIG's
Advisory Group to outline and discuss the strategic plan
for revitalizing West Port Arthur;
b. Develop a recommended Land Use Plan relative to the
revitalization of West Port Arthur. The proposed Land Use
Plan shall include a set of strategic recommendations as to
where various redevelopment activities are to be located
including new housing, rehabilitation of existing homes,
commercial, and industrial facilities, mixed use
developments and related zoning changes;
c. Develop a comprehensive set of financial strategies and
recommendations that could be effective in financing the
various elements of the revitalization plan for West Port
Arthur;
d. In conjunction with the City of Port Arthur, the PAIG and
its Advisory Group, develop a recommended greenbelt for
West Port Arthur, which provides a buffer between
residential areas and industrial facilities;
e. Develop a set of redevelopment projects for West Port
Arthur. Develop detailed implementation plans for these
projects. Initiate implementation of these redevelopment
projects;and
f. Develop the implementation plan for the August 1, 2008 to
July 31, 2009 period so that the projects included in the
plan may be implemented during this period of time.
z.marshall_contract 2007 2 2
The Marshall Group will submit quarterly reports, as well as such
other reports as are requested to both PAIG and the City of Port
Arthur, in which his activities and expenditures are delineated.
There will also be semi-annual reviews of the projects.
3. Time of Performance
The Marshall Group will proceed immediately upon execution of
this Contract with performance of the services called for and shall
work in the timetables as delineated in Exhibit "C" (Implementation
Plan) and in Exhibit "B" (Memorandum of Understanding).
4. Information and Services to be Furnished The Marshall Group
It is agreed that the CITY will furnish, without charge, any
non-confidential Contract information, data, reports, records, and
available, and necessary for the carrying out
Marshall Group as outlined under "Scope of
maps as are existing,
of the work of The
Services."
5. Compensation and Method of Payment
. A. Compensation
CITY will pay The Marshall Group for
services rendered at the following rates:
work performed and
It is agreed the
schedule, attached as
exceed the availability
described in Exhibit "B",
up to $200,000 per twelve
fees for this Contract will be per the rate
Exhibit "D", with the total fees not to
of funds under the project budget as
the Memorandum of Understanding, which is
(12) month period. The expenses will be
z .marshall_cont ract 2007_2
reimbursed for travel, phone costs, postage, lodging, meals, and
similar expenses customarily incurred in the performance of the
Agreement.
B. Method of Payment
The Marshall Group will invoice the CITY monthly or upon
completion of work, whichever time period is shortest for services
performed. Said invoice will delineate in detail the services
performed and the time and expenses incurred.
CITY agrees to pay The Marshall Group at its office at 1011
TX 78702, the full amount of each such invoice
Catalpa, Austin,
upon receipt or as
charge of 1% will be
paid within thirty
6. Records
otherwise delineated in this Agreement. A
added to the unpaid balance of invoices not
(30) days after date of invoice.
The Marshall Group shall keep accurate records,
task completed, hours required
amount due related to each task.
to complete,
Such ~ecords
including each
the subtotal of the
shall be kept in the
office of The Marshall Group for a period of not less than five (5)
years and shall be made available to the CITY and to ?AIG for
inspection and copying upon reasonable request.
7. Ownership of Documents
Ail documents, including original drawings, estimates,
specifications, field notes, and data are the property of the CITY.
The Marshall Group may retain reproducible copies of drawings and
other documents.
z.marshall contract 2007 2 4
8. Insurance
The Marshall Group shall possess and maintain professional
liability insurance with limits not less than One Million Dollars
($1,000,000) per occurrence. The Marshall Group shall provide
proof that it has at least this amount of insurance prior to
commencing any work under this agreement.
9. Professional Liability
The Marshall Group shall
employment of reasonable skill
be responsible for the use and
and care befitting the profession
for the project covered by this Contract. Approval' by the CITY
shall not constitute nor be deemed a release or waiver of the
responsibility and liability of The Marshall Group for the accuracy
and competency of such designs, drawings, plans, specifications,
data and reports.
10. Indemnification
The Marshall Group shall comply with the requirements of all
applicable laws, rules, and regulations in connection with the
services of The Marshall Group and shall exonerate, indemnify and
hold harmless the CITY, its officers, agents and all employees from
any and all liability, loss, or damage arising out of noncompliance
with such laws, rules and regulations. Without limitation, The
Marshall
Federal,
under the
Group shall assume full responsibility for payments of
State and Local taxes or contributions imposed or required
Social Security, Workers Compensation, and Income Tax
z ,marshall_contract 2007_2 5
Laws with respect to The Marshall Group. Further, The Marshall
Group shall exonerate, indemnify, and hold harmless the CITY, its
officers, agents and all employees from any and all liability,
loss, damages, expenses, or claims arising out of the negligence of
The Marshall Group, its officers, agents and employees in
connection with any of the work performed or to be performed under
this Contract by The Marshall Group or as a result of The Marshall
Group's failure to use and employ reasonable skill and care
befitting the profession in accordance with Paragraph 9 hereof.
11. Address of Notice and Communications
CITY OF PORT ARTHUR
P.O. B~x 1089
Port Arthur, Texas 77641
ATTN: Stephen Fitzgibbons
City Manager
Ail notices and communications under this Contract shall be
mailed or delivered to the CITY and The Marshall Group at the above
addresses.
12. Ca~tions
Each paragraph of
caption to serve only as
not Control the meaning
its
THE MARSHALL GROUP
1011 Catalpa
Austin, TX 78702
13.
this Contract has been supplied with a
a guide to the contents. The caption does
of any Paragraph or in any way determine
interpretation or application.
Successors and Assignments
The CITY and The Marshall Group each binds himself and his
z .marshall_contract 2007_2 6
successors, executors, administrators, and assigns to the other
party of this Contract and to the successors, executors,
administrators and assigns of such other party, in respect to all
covenants of this Contract. Except as delineated above, neither
the CITY nor The Marshall Group shall assign, sublet, nor transfer
its interest in this Contract without the written consent of the
other. Nothing herein shall be construed as creating any personal
liability on the part of any officer or agent of any public body,
which may be a party hereto.
14. Termination of Contract for Cause
If, through any cause, The Marshall Group shall fail to
fulfill in timely and proper manner his obligations under this
Contract, or if The Marshall Group shall violate any of the
covenants, agreements or stipulations of this Contract, the CITY
shall thereupon have the right to terminate this Contract by giving
written notice to The Marshall Group of such termination and
specifying the effective date thereof, at least thirty (30) days
before the effective date
finished or unfinished documents, data,
maps, models, photographs, and reports
of such termination. In such event, all
studies, survey, drawing,
prepared by The Marshall
Group under this Contract shall,
the City's property.
receive just, and
satisfactorily completed hereunder.
Notwithstanding the above, The
at the option of the CITY, become
The Marshall Group shall be entitled to
equitable compensation for any work
Marshall Group shall not be
Z .marshall_cont ract 2007_2 7
relieved of liability to the CITY for damages sustained by the CITY
by virtue of any breach of the Contract by The Marshall Group. The
CITY may withhold any payment to The Marshall Group for the purpose
of set-off until such time as the exact amount of damages due the
CITY from The Marshall Group is determined.
15. Termination for Convenience of the City of Port Arthur
The CITY may terminate this Contract at any time by giving at
least ninety (90) days notice in writing to The Marshall Group. If
the Contract is terminated by the CITY as provided herein, The
Marshall Group will be paid for the time provided and expenses
incurred up to the termination date. If this Contract is
terminated due to the fault of The Marshall Group, Paragraph 14
hereof relative to termination shall apply.
16. Extension of the Agreement
This agreement may be extended for two (2) successive one (1)
year periods based upon the mutual consent of the City of Port
Arthur and the Marshall Group after a review of the work that has
been performed, the availability of funds and whether PAIG is
willing to support the continued funding thereof.
17. Changes
The CITY may, from.time to time, request changes in the scope
of the services of The Marshall Group to be performed hereunder.
Such changes, including any increase or decrease in the amount of
The Marshall Group's compensation, which are mutually agreed upon
by and between the CITY and The Marshall Group, shall be
z .marshall_contract 2007_2
incorporated in written amendments to this Contract.
18. Personnel or Subcontractors'
The Marshall Group represents that it will be the prime
contractor under this contract and it may subcontract for services,
as needed. Appropriate work or services covered by this Contract
may therefore be subcontracted by the Marshall Group, so long as
the Marshall Group coordinates and provides oversight of such work
and services. The City and the PAIG shall be given twenty (20)
days notice of any subcontractors proposed by the Marshall Group
and the expected costs. If the City objects thereto, the Marshall
Group shall not use that subcontractor. Any work or services
subcontracted hereunder shall be specified by written Contract or
agreement and shall be'subject to each provision of this Contract.
The City will not unreasonably object to suitable contractors. The
subcontractors and their proposed cost, as delineated in Exhibit
"E" are approved for usage in this Agreement.
19. Reports and Information
The Marshall Group, at such times and in such forms as the
CITY may require, shall furnish the CITY such periodic reports as
it may request pertaining to the work or services undertaken
pursuant to this Contract, the costs and obligations incurred or
to be incurred in connection therewith, and any other matters
covered by this Contract.
20. Civil Rights
Under Chapter 106 of the Civil Practice and Remedies Code of
z .marshall_contract 2007_2 9
the Revised Civil Statutes of Texas, no person shall, on the
grounds of race, religion, color, sex or national origin, be
excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity of the
CITY.
The Marshall Group will carry out its work under this Contract
in a manner, which will permit full compliance by the CITY with the
Statute.
21. Interest of The Marshall Group and Employees
The Marshall Group covenants that. it presently has no
interest, direct or indirect, in the study area or any parcels
therein or any other interests which would conflict in any manner
or degree with the performance of his services hereunder. Without
written notice to and consent of the City, the Marshall Group shall
not acquire any interest, direct or indirect, in the study area or
any parcels therein or any other interests which may conflict in
any manner
hereunder.
performance of this
shall be employed by
or degree with the performance of his services
The Marshall Group further covenants that in the
Contract, no person having any such interest
it.
22. Incorporation of Provisions Required by Law
Each provision and clause required by law to be inserted into
the Contract shall be deemed to be enacted herein and the Contract
shall be read and enforced as though each were included herein. If
z .marshal l_contract 2007_2 10
through mistake or otherwise
is not correctly inserted, the Contract shall be amended
such insertion on application by either party.
SIGNED AND AGREED TO on this the __ day of
THE MARSHALL GROUP
any such provision is not inserted or
to make
,2007.
ATTEST:
BY:
SIGNED AND AGREED TO on this the day of
, 2007.-
CITY OF PORT ARTHUR
BY:
ATTEST:
z,marshall_contract 2007 2 11
EXHIBIT "A"
TO THE AGREEMENT
1011912006
10/19/2006
· Safe, wable m~xed4ncome neighborhoods w~th
adequate infrastrUcture for.degelopment
· Trained, ready and able workforce
· Strong community-based organizations
· Collaborative government/private sector/non-
profit/school relationships
· An attractive buffer separating petrochemical plants
from WPA neighborhoods
· Self-sustaining, nimble, redevelopment
implementation entity to leverage hurricane recovery
funds, multi-billion dollar industry investment and
other private investment
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Starling point for Implementation Strategy:
· 1991 Westside Needs Analysis - Haynes, Eaglin & Waters
,1991 Westside Neighborhood Needs Assessment- MODEL
· 1998 Economic Development Plan for Central Port Arthur - Urban Design
Associates
· 2006 Draft - Westside Economic Development & Revitalization Report - Dikita
Associates
2
10119/2006
Revitalized West Port Arthur
community with s.afe, attractive,
mixed-income neighborhoods
with infrastructure sufficient to
support new/rehabilitated homes
as well as new or expanded
bUsinesses
· Develop land use plans based upon various planning and assessment documents
previously completed to create buffers, improve quality of life and create more green-
space
· Secure zoning changes needed to implement land use plans and encourage
revitalization
· Make immediate, visible improvements to improve perception and reality of safety and
eliminate blight:
· Demolish and clear uninhabitable structures
· Improve lighting on commercial corridors (Gulfway; 7m; Houston Ave)
· Clean up Port Iron/Port Drum
· Implement one or more catalytic projects in WPA neighborhoods along commercial
corridors to leverage light industrial projects proposed by City at 7th and
· Identify private, grant and federal funding sources for land acquisition
· Leverage disaster recovery funds for housing development, commercial development
and infrastructure improvements
· Develop incentives for attracting business development along 7~ St, Gulfway Dr, and
Houston Ave
3
10/19/2006
Trained, ready a.nd able
workforce comprised of West
Port Arthur residents who take
pad in planned plant expansions
and subsequent turnarounds as
permanent workforce
· Employees can become homeowners, property owners, business
owners and customers
· Establish training program between Lamar College and plants
· Establish vocational education program between ? 'rech and plants
to engage the interest of young students
· Develop state of the art anti-drug campaign and drug treatment
program; seek grant funding
· Utilize and strengthen existing non-profit groups with successful
track records
10/19/2006
Strong cultural, religious, civic,
educational and service
institutions working in partnership
with governmen!al and for-profit
partners to provide human and
social services that contribute to
community revitalization
· City, industry and others should assist in strengthening existing organizations
to serve as foundation of community's social revitalization
· Encourage and support strong, cultural, religious, civic, educational and
service institutions that, working in partnership with governmental and for-profit
partners, provide services that contribute to community economic development
activities
· Promote activities such as education, job training, job creation, drug treatment,
drug prevention, health care, financial literacy, etc.
· Encourage and support civic groups, government and the private sector
working together to reduce crime and upgrade human infrastructure as
necessary
5
10119/2006
Partnerships and/or collaborations
with government, private entities
and..o.!hers spur redevelopment
activities that connect West Pod
Adhur to City redevelopment plans
in Pod Iron, and extend into
downtown and Lamar College areas
TMG
· Engage community and corporate leaders to ensure that Port Arthur capitalizes on ~
rare opportunity to leverage economic benefit of $10 billion plant expansion and
millions of dollars in disaster recovery funds to transform WPA
· Leverage investments by others and to develop cdtical mass of catalytic projects that
eliminate slum and blight (e.g. Housing Authority, private housing developers, Lamar
College, and the City of Port Arthur)
· Identify several catalytic projects that can be started simultaneously
· Follow example of other cities have utilized such rare opportunities to spur significant
and lasting redevelopment. For example, the 1996 Olympic Games in Atlanta resulted
in:
· Centennial Olympic Park and new economic vitality in an area that had been
blighted
· Redevelopment of crime ridden 'rechwood Public Housing development to
market rate, mixed income housing
,Creation of hundreds of downtown housing units
· Revitalization of Olympic Ring Neighborhoods
· Hundreds of millions of dollars of private investments
· Upgraded infrastructure
1011912006
An attractive buffer between
petrochemical plants and
neighborhoods that enhances
environmenta! health and.safety
and also provides recreabonal
opportunities open to the public
TMG {
· Establish a buffer between petrochemical plants and
neighborhoods (from to Streets between
and Streets) that enhance
environmental health and safety which would also provide
recreational opportunities that will be open to the public
· Convene task Groups of neighborhood stakeholders, plant
representatives, City staff, and subject matter experts should be
convened to determine desired boundaries of greenbelt and
possible sites and incentives for desired relocations
· Recreation activities might include bike trails, soccedbaseball
fields, etc.
· May require use by City of Urban Renewal/Eminent Domain
· Massive acquisition by petrochemical plants not likely
· Identify funding sources for acquisition
10/19/2006
A redevelopment entity with
sufficient resources, authority and
expertise to implement commercial,
and residential strategies and
coordinate with others on strategies
for industrial development, job
creation and training, as well as
drug abuse prevention
· Establish a non-profit redevelopment entity to implement the strategy
· Ensure entity is able to leverage the economic benefits of the pending multi-billion
dollar plant expansions against the activities of others to improve the long-term
economic health of WPA
Other entities from whom resources can be leveraged include the City,
Housing Authority, the Pod Arthur Economic Development Corporation, Port
Authority, federal government, private investors, foundations and non-profits
· Structure the entity so that it is headed by a capable, politically astute board of
neighborhood stakeholders, community leaders, business leaders, educators, and
others with legal, real estate, finance and development skills
· Ensure entity has adequate and stable resources to attract and retain high quality,
experienced staff and professional help
,Examples:
· Atlanta Development Authority - Atlanta, GA (Quasi-Public)
· Atlanta Neighborhood Development Partnership - Atlanta, GA (Non-Profit)
· Foundation for Community Empowerment - Dallas, TX (non-Profit)
· Austin Revitalization Authority - Austin, TX (Non-Profit)
· Centennial Olympic Development Agency - Atlanta, GA (Non-Profit)
10/19/2006
TM G {
1011912006
· Get implementation entity up
and running
· Establish entity's mission, goals
and objectives
· Establish stable funding base
· Establish Board of Directors
TMG ¢
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10/1912006
· Develop Land Use Plan
- Use Plan to establish desired location of buffer
between plants and neighborhoods
- Identify residentiaL, mixed-use, commerciaL, light
industrial, industrial, civic and recreational uses
· Identify Development Oppodunities
- Implement process for identifying catalytic
projects in WPA to be developed in conjunction
with City Project, Pod Iron, to spur revitalization
in WPA
11
10/1912006
Identify Funding Opportunities
- Work with economic development corporations,
foundations, City of Pod Arthur, Federal and/or
State governments, private investors and lend-
ers to identify capital for development projects
Develop Partnerships
- Public Sector
- Private Sector
- Non-Profits
- Foundations
TMG
12
10/19/2006
Central East AuStin:
A Neighborhood Story
13
1011912006
TMG (
14
10/19/2006
TMG
15
10/1912006
BEFORE - 1999
AFTER - 2004
TMG
,Widened sidewalks
· Eliminated overhead utilities
· Replaced standard utility poles with decorative street lights with brackets to
allow banners
· Added street trees
· Ivlade street attractive for potential customers and business development
10/19/2006
BEFORE- 1999
AFTER - 2004
· Created public plaza for outdoor music events and clock tower as focal point
and gathering piece
10/19/2006
TMG <
· Public art captured the history and cultural heritage of neighborhood and
attracts visitors to area
· Bus shelters and benches improved transit opportunity; bus pull-ins relieve
traffic congestion
Ii
10119/2006
· Rehabilitalion completed in 2001
, Balcones Resou[ces
. t0 new employees
TMG
,Rehabilitation o! lormer grocery store, bar and brothel completed in 2001
oBalcones Resources
· 10 new employees
· Restoration o! historic 130 year old building preserved history ol area,
eliminated blight and gave award winning example of adaptive re-use and
historic preservation
10/19/2006
. Rehobili'laflon completed in 2002
· Shoehorn Graphics
· 6 new employees
TMG
,Rehabilitation of former bakery, pool hall and dinette completed in 2002
· Shoehorn Graphics
· 6 new employees
· Restoration of 130 year old building preserved history of area, eliminated blight
and gave award winning example of preservation and adaptive reuse
2O
10/1912006
BEFORE:
· Only 10 operating businesses on 4 city blocks,
· Approximately 18 employees
· Primarily vacant lots and abandoned buildings
AFTER:
Construction completed 2004/2005
By 2006, 12 new businesses with approximately 180 new employees on the street:
· City of Austin - 65 employees
· Wells Fargo Bank - 7 employees
· Stylerite Salon - 2 employees
· ESPN Radio - 17 employees
· Door #3 Ad Agency - 15 employees
· BIGAustin - 12 employees
· Ms B's Cajun Restaurant - 20 employees
opdmize Italian Restaurant - 25 employees
oByDee Art - 2 employees
· Rumbo de Austin - 10 employees
21
10/19/2006
· Mixed income housing important to creating balanced neighborhoods
· Some tevel of permanent affordability must be balanced against need to allow
wealth creation
· Restoration of historic homes and homebuyer assistance is helping to maintain
some affordable homes in area
,Revitalization efforts are spurring increases in property values.., and property
taxes
22
10/19/2006
23
10/19/2006
24
1 U/1 ~/ZUU~
25
10/19/2006
,Revitalization of corridor has spurred 400 unil $60 million, market rate housing
development adjacent to corridor
26
10/19/2006
· increased flow of people in the area renewed business for long-time business
establishments on the corridor
· Every existing business on the street has either expanded, beautified its space
or developed plans to upgrade
27
10/19~2006
TMG
lenewol t,~,ode!( ¢ .
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.Small private investors are opening new businesses
2[
10/19/2006
homes
in
the
*Private investors are building new homes and renovating existing
area
29
10/1912006
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I~enewol
3C
10/19~2006
West Port Arthur:
Current Community Environment
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oppodu~)Ui~c~. ,
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10119/2006
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Development Best Practices:
Creating Public/Private Synergy
41
10119/2006
~TMG
42
( ' '
Private financin~
· Capital Fund - acquires affordable land; private dollars reduce restrictions and
speed process
· Apply to Foundations/Banking Institutions
· Similar fund in NYC created by the JPMC and MacArthur Foundation
· Other possible partners include Home Depot and Woodruff; Guaranty,
Wells Fargo and Wachovia
· Selective use of urban renewal plans and/or eminent domain by City or others
to develop:
· Eliminate slum and blight
· Develop select areas for public use: parkland, affordable housing,
historic preservation, demolition of vacant deteriorated or abandoned
buildings
43
10/1912006
NMTC;
ive a credit inet their federal income Of up to 39% over the seven year period by invesfin§ in a
· Investors race . --~ ~t-n[-~ ~hich in h~rn invests in qua fled businesses
· 5% credit for first three years
· 6% credit for last four years
· U.S. Treasury has invested $8 B in credits since 2002 and is slated to issue $3.5 B in both 2006 and 2007 for a total
of $15 B
· Allowable Uses
.Manufacturing
· Less than 80% of gross rental income from dwelling units
· Potential Allowable Uses
· WPA commercial corridors
· Downtown and Lamer College areas
· Disal{owed Uses
· Subsidize same SF of a project receiving other federal tax subsidies generally may not be used
TIF nas to ca lure future tax benefits and utilize them to finance the cost of
*Allows potitica sUbdlVistorls to create 'JIF zo . P
structural improvements a~d infrestrucfure in a relovestment zone
*Participating taxir~ entities agree to set percentages of ta,x increment (difference between appraised value when
zone is set and each subsequent year zone is in existence}
-Both real property and sales tax increments may be set aside · be
.Unless created by pelRion of effec~ed landowners, only 10% or less of land in zone may used for residential
purposes
.purpose is to attract new commercial enterprises to area
.City may issue bonds in anticipation of tax contributions by participating entities
.'~-FRZ Board develops specific projects to be funded
44
Low Income Housing Tax Credits
· Federal tax credits allocated to states
· issued on competitive basis to encourage development of iow income housin9
Community Development Block Grants · HUD Sectionl08 Loan Guarantee
· Advance against City's formula based CDBG entitlement grant
· May be borrowed for up to 20 years at ow interest rates to eliminate slum and blight
and encourage mixed-use development
HOME
· Formula based grants to Cities
· Used to encourage e~tlordable housing (rental/homeownership)
· Grants/loans available to both developers and homebuyers
$19 M Deep East Texas Grant
· COG Emerger~cy CDEG
· Housing repair
· Demolition/construction
· Water/wastewater upgrades
10/1912006
Implementation Strategy
Financing
TMG ( .... :'
46
1011912006
TMG
.Gentrification
· Rising land prices/taxes
· Affordable housing
· Public schools
.Unemployment
· Health status of people of color
· Building capacity of CDC's and other non-profits
· Dwindling funding for CDC's and other non-profits
EXHIBIT "B"
TO THE AGREEMENT
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF PORT ARTHUR
AND
THE SOUTHEAST TEXAS PLANT MANAGERS FORUM, A MEMBER
TEXAS NONPROFIT CORPORATION
I. Memorandum of Understanding
This Memorandum of Understanding (MOU) is voluntarily entered into by the City of Port
Arthur, a home rule city and the Southeast Texas Plant Managers Forum, a member Texas
Nonprofit Corporation working through their duly authorized committee of plant managers
called the Port Arthur Industrial Group (PAIG). The PAIG is a committee of plant managers
from Port Arthur's industrial companies and invited participants, including:
Air Products
BASF FINA Petrochemicals
Chevron Phillips Chemical Company, L P
Great Lakes Carbon
Huntsman Corp.
Motiva Enterprises
Praxair
Valero
Shell Pipeline
Total
Veolia Environmental Services
Port Arthur Steam Energy LP
The Southeast Texas Plant Managers Forum will herein be referred to as PAIG.
II. Purpose
The City of Port Arthur and the PAIG are entering into this MOU in a collective effort to
stimulate economic development and community revitalization in West Port Arthur. Both
parties recognize and mutually agree that private sector investment over a sustained period of
time is required to stimulate economic growth and community rehabilitation in West Port Arthur.
Accordingly, the City of Port Arthur and the PA1G are committing to provide project planning,
implementation and financial support to leverage the required additional public and private
sector investments.
IlL The Revitalization Plan for West Port Arthur
The City of Port Arthur and the PAIG commit to support implementation of a community
revitalization plan for West Port Arthur beginning in 2007 as jointly developed by the City of
z.pr13930_paig_mou updated_3 Page 1 of 3
Port Arthur and the Marshall Group on behalf of the PAIG. The West Port Arthur Community
Revitalization Plan consists of the following key elements:
Adequate public infrastructure to support the revitalization efforts;
The construction of new homes and rehabilitation of existing homes to improve
housing opportunities in West Port Arthur;
The implementation of strategies to support the expansion and development of
commercial facilities in the area and appropriate industrial development;
An effective city-wide job training and placement initiative involving the Texas
Workforce Commission, Lamar State College - Port Arthur, the City of Port
Arthur and the City's private sector to increase available training for residents of
Port Arthur to help strengthen work force readiness;
Effective city-wide collaboration among government, the private sector, the
nonprofit sector and the public and post-secondary education community;
An attractive "buffer" between the petrochemical plants in the immediate area and
West Port Arthur's neighborhoods that will be voluntarily established over time;
and
A self-sustaining, viable, redevelopment implementation entity to leverage public
and private funds.
IV. Implementation Plan
In order to stimulate economic development and community rehabilitation in the West Port
Arthur, the City of Port Arthur and the PAIG commit to engage the Marshall Group to
implement the West Port Arthur Community Revitalization Plan, under the oversight of the City
of port Arthur with support and input from the PAIG. In conjunction with the City of Port
Arthur, the Marshall Group will coordinate the Implementation Plan for the revitalization effort
consisting of the following:
Recommend and assist in establishing the redevelopment implementation entity,
including its mission, goals and objectives, a three year funding base and a Board
of Directors;
Develop a Land Use Plan for West Port Arthur, including land uses and sites for
residential, mixed use, commercial, light industrial, industrial, civic and
recreational purposes, and a buffer between West Port Arthur neighborhoods and
industrial facilities, and work with the City to develop a set of proposed zoning
changes to implement the plan;
Implementation of a process to identify, plan and implement catalytic projects in
West Port Arthur to be developed in conjunction with the Marshall Group, the
City of Port Arthur, the Housing Authority, the private sector and various other
entities;
Develop a funding plan and strategy to support the West Port Arthur
Revitalization Plan; and
Develop the needed partnerships among the public and private sectors, non-profit
organizations and foundations; and
z.pr13930_paig_mou updated_3 Page 2 of 3
V. Proiect Budget
The City of Port Arthur and the PAIG commit to support and fund the West Port Arthur
Revitalization Plan in an amount of up to $200,000 per year for three years. The following
contributions are planned to be made in 2007, 2008, and 2009:
,, Up to $100,000 each year by the City of Port Arthur with matching funds by PAIG.
These funds may be used only for the purpose of supporting the project implementation staff of
the West Port Arthur Revitalization Plan. The parties agree to cooperate in the review and
preparation ora detailed contract as to engage the Marshall Group in calendar year 2007. In the
contract, the Marshall Group will be required to submit at least quarterly reports to both the
PAIG and the City of Port Arthur, in which its activities and expenditures are delineated for each
month. The Marshall Agreement will also provide for review by the parties as to the status of
the projects every six (6) months. The Marshall agreement shall also provide for a termination
clause at the discretion of either party with 90 days written notice. The contractual relationship
with the Marshall Group may be extended to 2008 and 2009 based upon the mutual consent of
the City of Port Arthur and the PAIG.
VI. Term for MOU
Subject to the availability of funds and the annual budget process, this MOU shall be effective
February 13, 2007 through December 31, 2009. It may be terminated at any time by either party
with 90 days written notice, if the MOU is terminated, any outstanding and approved liabilities
will be equally allocated between the City of Port Arthur and the PAIG.
SIGNED and AGREED to on the 2.,] day of /~, ,., ~ ,2007.
CITY OF PORT ARTHUR
SIGNED and AGREED to on the _3c) day of ~r~ ,2007.
SOUTHEAST TEXAS PLANT MANAGERS FORUM
z.pr13930_paig_mou_updated_3 Page 3 of 3
EXHIBIT "C"
TO THE AGREEMENT
The Revitalization Plan for West Port Arthur
LEGAL DEPARTMENT
The City of Port Arthur and the PAIG commit to support implementation of a community
revitalization plan for West Port Arthur beginning in 2007 as jointly developed by the
City of Port Arthur and the Marshall Group on behalf of the PAIG. The West Port Arthur
Community Revitalization Plan consists of the following key elements:
· Adequate public infrastructure to support the revitalization efforts;
· The construction of new homes and rehabilitation of existing homes to improve
housing opportunities in West Port Arthur;
· The implementation of strategies to support the expansion and development of
commercial facilities in the area and appropriate industrial development;
An effective city-wide job training and placement initiative involving the Texas
Workforce Commission, Lamar State College - Port Arthur, the City of Port Arthur
and the City's private sector to increase available training for residents of Port
Arthur to help strengthen work force readiness;
· Effective city-wide collaboration among government, the private sector, the
nonprofit sector and the public and post-secondary education commtmity;
An attractive "buffer" between the petrochemical plants in the immediate area and
West Port Arthur's neighborhoods that will be voluntarily established over time;
and
· A self-sustaining, viable, redevelopment implementation entity to leverage public
and private funds.
2007 Work Plan for West Port Arthur's Revitalization
In order to stimulate economic development and commuaity rehabilitation in the West
Port Arthur, the City of Port Arthur and the PAIG commit to engage the Marshall Group
to implement the West Port Arthur Community Revitalization Plan, under the oversight
of the City of Port Arthur with support and input fi.om the PAIG. In conjunction with the
City of Port Arthur, the Marshall Group will coordinate the 2007 Implementation Plan for
the revitalization effort consisting of the following:
Recommend and assist in establishing the redevelopment implementation entity,
including its mission, goals and objectives, a three to five year funding base and a
Board of Directors;
Present options for structure of non-profit community development entity and identify
optimal skill sets, attributes, affiliations etc. of Board members w/i .............60 days
(June)
Present set of potential candidates from which board may be selected w/i ........ 90 days
(Jut. v)
Set up non profit entity w/L... 150 days (September)
Develop a Land Use Plan for West Port Arthur, including land uses and sites for
residential, mixed use, commercial, light industrial, industrial, civic and recreational
purposes, and a buffer between West Port Arthur neighborhoods and industrial
facilities;
Research and develop options based upon national and international best practices for
creation of barriers between incompatible uses such as neighborhoods and plants
w/L...120 days (August)
Discuss options with affected parties (Residents, property owners, City officials,
industry w/i ....... 120- 150 days (August-September)
Recommend plan for housing and other uses w/i ........ 180days (October)
Work with new entity, City, community and industry to have plan adopted ...... 240
days (December)
Implementation of a process to identify, plan and implement catalytic projects in
West Port Arthur to be developed in conjunction with the Marshall Group, the City of
Port Arthur, the Housing Authority, the private sector and various other entities;
Recommend and seek consensus on process w/L..90 days (July)
Implement process 60 days after achieving consensus w/L.. (approx. 150 days;
September -December)
Identify initial project sw/i... 150 days (September)
· Develop a funding plan and strategy to support the West Port Arthur Revitalization
Plan; and
Present draft plan and strategy w/L.. 150 dusy (September)
Identify initial investors w/q .... 180 day (October)
Work with new entity, City, community and industry to have Project implementation
plan adopted w/f ..... 240 days (December)
Begin to conduct project feasibility studies ( analysis of assumption, regarding market,
site, operating & development pro forma, j~manelng etc. w,q...240 days (December)
Where appropriate and feasible, work with developer(s) or assist entity in acting as
developer on catalytic project(s) w,q ...365 days (ll4ay)
· Develop the needed partnerships among the public and private sectors, non-profit
organizations and foundations.
Meet with community groups to share and shape Revitalization Plan...30-60 days
(April-May)
Meet with business, civic, religious, non-pro, Fa and community leaders to share and
shape Revitalization Plan 30-60 days (April-May)
2008-2009 Work Plans
Develop specific work plans with metrics for performance each year
Continue to identify projects, developers, investors
Begin and complete as appropriate project construction and clean and green projects
~York with other groups to spur employment and address drug abuse as a barrier to
employment as a part of the strategy for economic and community revitalization.
EXHIBIT "D"
To be presented at the Council Meeting
EXHIBIT "E"
To be presented at the Council Meeting