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Home My WebLink About2012/06/05-Minutes-HEDCCITY OF FORT WORTH, TEXAS CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITEE JUNE 5, 2012 Present: Committee Member Joel Burns, Chairman Committee Member Kathleen Hicks, Vice Chair Committee Member W. B. "Zim" Zimmerman Committee Member Danny Scarth Committee Member Jungus Jordan Committee Member Dennis Shingleton Committee Member Frank Moss Committee Member Salvador Espino Absent: Committee Member Betsy Price 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 Robert Sturns, Manager, Housing and Economic Development Department Randle Harwood, Planning and Development Director Other City Staff in Attendance: Tom Higgins, City Manager LeAnn Guzman, Assistant City Attorney, Law Department 1. Call to Order - Joel Burns, Chair With a quorum of the committee members present, Chairman Joel Burns called the meeting of the Housing and Economic Development Committee to order at 1:02 p.m., on Tuesday, June 5, 2012, in the Pre - Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102. 2. Approval of Minutes from the Meeting Held on May 1, 2012 - Joel Burns, Chair Motion was made by Committee Member Zimmerman and second by Committee Member Shingleton, to approve the minutes of the May 1, 2012, Housing and Economic Development Committee Meeting. Motion passed 8 -0. Committee Member Price absent. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 5, 2012 Page 2 of 5 3. Executive Session - The Housing and Economic Development Committee will conduct a closed meeting to: A. Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by section 551.071 of the Texas Government Code: (i) legal issues related to any current agenda items; and B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party; and C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Chairman Burns announced that there was no need for an Executive Session. 4. Written Reports - Jay Chapa, Director, Housing and Economic Development A. Memo on Tax Abatement Policy Renewal B. Memo on Proposal to Change Affordability Period for Down Payment Loans Executed from 1994 -2004 to Match Federal Requirements. There were no questions or comments on the written reports. 5. Presentation on Proposal to Utilize Urban Development Action Grant (UDAG) Related Funds for the Development of a Dental Clinic by Catholic Charities - Cynthia Garcia, Asst. Director, Housing and Economic Development Cynthia Garcia, Assistant Director, Housing and Economic Development presented a request from Catholic Charities Fort Worth (CCFW) for UDAG funds to be used towards the construction of a new dental clinic. The clinic will serve Tarrant County individuals and households with incomes at or below 200% of the federal poverty guidelines. The clinic will be located at the current Fort Worth Office at 240 West Thornhill Drive in District 9. The total budget for the project is $756,000.00 and to date CCFW has raised $556,000. The ongoing operating costs will be funded by St. Joseph HealthCare Trust Fund, dental services fees and Medicaid. Staff is recommending authorizing the City to award a forgivable loan of up to $100,000.00 in HUD Urban Development Action Grand (UDAG) Program Income funds toward construction costs for the Catholic Charities Dental Clinic. The term will be for two years with a one year renewal; funds restricted to construction costs, funds provided on a reimbursement basis only and quarterly reports must be submitted for two years after project completion documenting that the clinic primarily serves low and moderate income households. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 5, 2012 Page 3 of 5 Motion was made by Committee Member Shingleton and second by Committee Member Moss to approve moving forward to the City Council the awarding a forgivable loan of up to $100,000.00 in HUD Urban Development Action Grand (UDAG) Program Income funds toward construction costs for the Catholic Charities Dental Clinic with an M &C to be presented to the City Council at the July 10, 2012 City Council meeting. Motion passed 8 -0. Committee Member Price absent. 6. Presentation on Economic Development Agreement with Patterson Equity Partners LLC for the Development of Casino Beach - Jay Chapa, Director, Housing and Economic Development Department Jay Chapa, Director, Housing and Economic Development Department presented a proposed Economic Development Agreement for the development of Casino Beach. The agreement would be with Patterson Equity Partners LLC for the development of entertainment destination development at Casino Beach. The proposed 380 agreement with the developer would be in an amount up to $10 million. The developer would pay the upfront costs of the improvements and the City would repay the investment, based on actual costs, with 380 grants. The developer agrees to design and construct public improvements within 36 months of executing options. Motion was made by Committee Member Shingleton and second by Committee Member Jordan to approve moving forward to the City Council entering into a Chapter 380 Economic Development Program Agreement with Patterson Equity Partners, LLC for the development of Casino Beach and adjacent City -owned park property with an M &C to be presented to the City Council at the June 12, 2012 City Council meeting. Motion passed 8 -0. Committee Member Price absent. 7. Presentation on Tax Abatement Agreement with Project Sun Greer - Robert Sturns, Economic Development Manager, Housing and Economic Development Department Robert Sturns, Economic Development Manager, Housing and Economic Development Department presented the Committee with an update on the incentive request from NGC America for an incentive proposal as follows: • City to enter into a 10 -year, 80% tax abatement agreement on incremental real and personal property taxes • Estimated total benefit of $4.7 M • Waive associated fees for the project, estimated value is $13,000 • Project will be nominated for an Enterprise Zone Project Designation • Selection of Fort Worth site contingent on Texas Enterprise Fund • Local incentive required for eligibility There was no action required on this report it was for information only. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 5, 2012 Page 4 of 5 8. Action Plan Presentation on the 2012 -2013 Allocation of Community Development Block Grant, HOME Investment Partnerships Program, Emergency Shelter Grant and Housing Opportunities for Persons with AIDS Program Grant Funds - Jay Chapa, Director, Housing and Economic Development Department Jay Chapa, Director, Housing and Economic Development Department presented slide showing the CDBG, HOME, ESG and HOPWA Funding Recommendations, listing all of the agencies, their funding for the current year, their request and the recommendation from the Community Development Council. He pointed out that the total amount of funding to be distributed was $9,278,851. The plan will be placed on the City's website and comments will be accepted until July 25, 2012. This will be followed by 2 public hearings before the City Council in July and August and a submission of the final plan to HUD August 16, 2012. No action was required on this item. 9. Audit Report on Economic Development Incentive Program - Robert Sturns, Economic Development Manager, Housing and Economic Development Department Robert Sturns, Economic Development Manager, Housing and Economic Development Department presented the Committee with the audit findings for 2011. 14 Tax Abatement Agreements and 17 Economic Development Agreements were audited. Employment, Fort Worth business participation and MWBE business participation was higher than outlined in the agreements. Both the Tax Abatement agreements and the Economic Development Program agreements brought more tax revenue into the City than projected. No action was required on this item. 10. Requests for Future Agenda Items - Joel Burns, Chair There were no requests for future agenda items. 11. Date of Next Regular Meeting: August 7, 2012 - Joel Burns, Chair CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 5, 2012 Page 5 of 5 12. Adjourn - Chair With no further presentations or discussions, Chairman Burns adjourned the regular meeting of the Housing and Economic Development Committee at 2:00 p.m., on Tuesday, June 5, 2012. These minutes approved by the Housing and Economic Devei�Committ n on the 7`" day of August, 2012. Minutes Prepared by and Attest: ary J. Kays r, t etgy Vice Chairman