HomeMy WebLinkAbout2012/02/07-Minutes-HEDC CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
February 7, 2012
Present:
Committee Member Joel Burns, Chairman
Committee Member Kathleen Hicks, Vice Chair
Committee Member Betsy Price (Arrived at 1:12 p.m.)
Committee Member Salvador Espino
Committee Member W. B. "Zim" Zimmerman
Committee Member Danny Scarth
Committee Member Frank Moss
Committee Member Jungus Jordan
Committee Member Dennis Shingleton
City Staff:
Fernando Costa, Assistant City Manager
Peter Vaky, Deputy City Attorney
Mary J. Kayser, City Secretary
Jay Chapa, Director of Housing & Economic Development Department
Cynthia Garcia, Assistant Director, Housing & Economic Development Department
Robin Bentley, Community Development Manager, Housing& Economic Development Dept.
Robert Sturns, Manager, Housing and Economic Development Department
Other City Staff in Attendance:
Tom Higgins, City Manager
Vicki Ganski, Senior Assistant City Attorney, Law Department
LeAnn Guzman, Assistant City Attorney, Law Department
Henry Day, Senior Management Analyst, Housing & Economic Development Department
Otis Thornton, Homeless Program Coordinator, Housing& Economic Development Department
Horatio Porter, Budget Officer
With a quorum of the committee members present, Chairman Joel Burns called the
meeting of the Housing and Economic Committee to order at 1:05 p.m., on Tuesday,
February 7, 2011, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000
Throckmorton Street, Fort Worth, Texas 76102.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 7, 2012
Page 2 of 6
Approval of Minutes from December 6, 2011,
Housing and Economic Development
Committee (Agenda Item 2)
Motion was made by Committee Member Shingleton and second by Committee Member
Zimmerman, to approve the minutes of the December 6, 2011, Housing and Economic
Development Committee Meeting. Motion passed 8-0. (Committee Member Price absent)
Written Reports (Agenda Item 3)
Chairman Burns advised that the following written reports had been provided as a matter
of information to the committee members:
A. Memo Regarding Update of Implementation of Business Diversity Enterprise
Ordinance
B. Memo Regarding Texas Enterprise Zone Nomination for FTS International
Services, LLC
C. Memo Regarding Tax Abatement Agreement with Alcon Laboratories
Corporation Expansion Plans Revision
D. Memo Regarding Economic Development Program Agreement with Ferris
Manufacturing for Corporate Site Location Change
E. Memo Regarding Relocation of Link America Corporation Headquarters
F. Memo Regarding Amendment to the 2003 Downtown Strategic Action Plan
G. Memo Regarding the Repeal of Ordinance#19558-02-2011 to Create
Reinvestment Zone#72
H. Memo Regarding the Reallocation of$477,835.40 in Community Development
Grant Funds from the ADA Ramp Project to the 2010 and 2011 Street
Reconstruction Projects
I. Memo Regarding Expansion of the Lancaster Mixed Use Project and Consent to
Waive Development Fees Related to the Project
J. Tax Increment Finance Districts Annual Report
Chairman Burns opened the floor for questions and/or comments. There were none.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 7, 2012
Page 3 of 6
Presentation on Economic Development (Agenda Item 4)
Impact Study Commissioned by Fort Worth
Chamber of Commerce
Jay Chapa, Director, Housing and Economic Development Department introduced David
Berzina, Executive Vice President of Economic Development, Fort Worth Chamber of
Commerce. Mr. Berzina reviewed the Economic Development Impact Study Commissioned by
the Fort Worth Chamber of Commerce. He highlighted the positive economic impact and the
positive sales tax impact of the 15 Economic Development projects in Fort Worth in 2011.
Chairman Burns opened the floor for questions and/or comments.
Committee Member Price asked if the property tax numbers were adjusted for exemptions. Mr.
Berzina indicated that the numbers were adjusted for tax abatements but not exemptions.
Chairman Burns expressed appreciation for the partnership with the Chamber and how the City
and the Chamber will be working together in the future to deal with the impact of the American
Airlines bankruptcy and what happens with the American Airlines maintenance facility at
Alliance. He indicated that the City will be looking to the Chamber as a partner in finding
possible ways to utilize the Governor's Enterprise fund to assist the City in the future.
Committee Member Price asked if the Chamber was working on any movie or cinema incentives
or recruitment. Mr. Berzina stated that the State was working on a plan but the Chamber was not
involved directly. Committee Member Price stated that the cities of Austin and San Antonio
along with their Chambers were working on these types of incentives along with the Governor's
Enterprise Fund.
Committee Member Espino commended the Chamber on economic growth in far north Fort
Worth that is due in large part to Alliance. He commented that we need to work on the branding
of Fort Worth in the far north Fort Worth area. To promote Fort Worth, Texas in the Alliance
corridor which will attract retail to the fastest growing part of Fort Worth. He wants to be sure
that businesses and individuals in the far north Fort Worth area know that they are in the City of
Fort Worth. Jay Chapa indicated that the Chamber, Hillwood Development and some of the
businesses in far north Fort Worth will be coming together to address Mr. Espino's concerns.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 7, 2012
Page 4 of 6
Presentation on Potential Reductions in (Agenda Item 5)
Fiscal Year 2012-2013 Funding for
Community Development Block Grant and
HOME Investment Partnerships Program
(HOME) and Proposed Rule Changes to the
HOME Program from the US Department
of Housing and Urban Development
Jay Chapa, Director, Housing and Economic Development Department presented an overview of
this item.
He reviewed proposed changes in HOME regulations:
— The City will be more involved in home sales
— The City must re-verify that all CHDOs meet their statutory eligibility
requirements each time it commits funds to a house or a project.
Both of these changes will require new policies and procedures to be drafted and
approved by HUD
Mr. Chapa next reviewed the projected budget reductions in the Federal Entitlement Programs:
The City is facing a 2 year reduction (FY11 — FY13) of$2,745,220 or 26% overall for
entitlement programs (CDBG and HOME). Additionally the City is facing a reduction of
$424,357 or 23.8% in the funds for administering these programs. The administrative
funds pay for 21.95 positions in the Housing and Economic Development Office.
Mr. Chapa next reviewed proposed program changes on CDBG funding:
• Reduce the number of Public Service Contracts from 29 to 15 (CDC to recommend how
to reduce overall number)
— Public Service Contracts only account for 15% of the CDBG budget, but account
for approximately 40% of administrative costs
• Expand the Emergency Repair Program and eliminate the HTF Single — Family
Rehabilitation Program
— Single Family Rehab program is administratively intensive and costly with the
high potential of customer dissatisfaction (avg. $40k to $50k per project, major
systems only)
— Expand income level from 35% to 60% AMI and add electrical and roof to
emergency repair. ($5k limit would still apply, current avg. per household is
approximately$3,200)
If $1.0 million budgeted, then emergency repairs provided to over 3,000
households instead of an estimated 20-25 HTFs per year
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 7,2012
Page 5 of 6
Mr. Chapa next reviewed proposed program changes on HOME funding:
• Eliminate CHDO 15% set aside for FY 2013 only
— Administrative oversight of CHDO projects is time intensive
— New regulations will increase administrative burden on CHDO projects
— Prior year CHDO project commitments exceed required 15% through FY2013
since it is a rolling average, therefore no funding needs to be set aside providing
additional funding for other CDBG eligible programs
• Eliminate single family for sale housing
— New regulations will increase risk to City since units must be sold within 6
months of completion or be converted to rental units
— This requirement will increase administrative costs associated with marketing of
homes for sale and oversight of converted rental units since affordability period is
20-years on each unit
Mr. Chapa requested the Committee's input on the proposed changes recommended by staff.
Chairman Burns asked that the City, through Governmental Relations, submit comments to HUD
On the proposed rule changes and their impact.
Committee Member Espino acknowledged the tough choices that the Department made. His
priority is for the demolition of substandard structures.
Committee Member Scarth indicated that the department made some good choices and indicated
that he will have more questions as this goes forward.
Committee Member Hicks commended the department on their hard choices and indicated that
they did the best they could do given the new rules and shrinking funding. Her priorities are
Senior Citizens, Child Care, Youth Services and demolition along with redevelopment.
Committee Member Price asked how many CHDOs the City has and the value of their projects.
There are 2 CHDOs and Mr. Chapa will get back to the committee with the value. She also
wanted the value of the projects, what was the return to the City on the tax base and what
services did the City have to deliver. What is the best bang for the dollars we do have to spend
on these projects.
Committee member Jordan wanted to know what the need was and how are we meeting that
need. What are our underserved and unserved populations and are we catching up on the nee,
are we making progress. He also wanted to know what the return on the dollars invested was.
Committee Member Moss' priorities are the emergency repair and sidewalks.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
FEBRUARY 7, 2012
Page 6 of 6
Chairman Burns echoed the need for sidewalks. He also acknowledged the hard work of Mr.
Chapa and his staff and thanked them for bringing this information to the committee early so that
they had time to review and make informed decisions.
Request for Future Agenda Items (Agenda Item 7)
Chairman Burns opened the floor for requests for future agenda items. There were no
requests for future agenda items.
Date of Next Regular Meeting—
March 6, 2012, (Agenda Item 8)
Chairman Burns advised that the next regular meeting of the Housing and Economic
Development Committee was tentatively scheduled for Tuesday, March 6, 2012.
Adiourn (Agenda Item 10)
With no further presentations or discussions, Chairman Burns adjourned the regular
meeting of the Housing and Economic Development Committee at 1:59 p.m., on Tuesday,
Tuesday, February 7, 2012.
These minutes approved by the Housing and Economic Development Committee on the
6t"day of March, 2012.
APPROVED:
oel Burns, Chairman
Minutes Prepared by and Attest:
7-LA,
Mary J. Kays , it Y ecre
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