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HomeMy WebLinkAbout2008/08/05-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE August 5, 2008 Present: Council Member Jungus Jordan, Chairman Council Member Carter Burdette, Vice Chairman Mayor Mike Moncrief Council Member Salvador Espino Council Member Danny Scarth Council Member Frank Moss Council Member Joel Burns Mayor Pro tem Kathleen Hicks Absent: Council Member Chuck Silcox City Staff: Tom Higgins, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Economic and Community Development Department William Johnson, Assistant Director, Economic and Community Development Department Dorothy Wing, Business Development Manager, Economic and Community Development Department Shallah Hatch, Economic Development Specialist, Economic and Community Development Department Other City Staff in Attendance: Dale Fisseler, City Manager (arrived at 1:35 p.m.) Joe Paniagua, Assistant City Manager (arrived at 2:38 p.m.) Karen Montgomery, Assistant City Manager/Chief Financial Officer Fernando Costa, Assistant City Manager Carl Smart, Acting Assistant City Manager Darlene Allen, City Internal Auditor James Mauldin, City Treasurer Ginny Townsend, Assistant City Treasurer LeAnn Guzman, Assistant City Attorney Ardina Washington, Economic Development Manager, Economic & Community Development Department CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 2 of 12 Henry Day Karen Mueier, Housing Department Guests: John Avila, Jr., Board President of Fort Worth Partnership for Community Development Charlotte B. Sobel, President of Fort Worth Partnership for Community Development With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Economic and Community Development Committee to order at 1:10 p.m. on Tuesday, August 5, 2008, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the June 3, 2008, Economic and Community Development Committee (Agenda Item 2) Chairman Jordan opened the floor for a motion on the approval of the minutes. MOTION: A motion was made by Council Member Espino and seconded by Mayor Moncrief to approve the minutes of May 6, 2008, Economic and Community Development Committee. The Committee voted eight (8) "ayes" and zero (0) "nays", to approved the minutes of the May 6, 2008, Central City Revitalization and Economic Development Committee meeting. The motion carried unanimously. At 1:20 p.m., Chairman Jordan moved down the agenda to the Executive Session agenda item and adjourned the meeting into Executive Session in accordance with the requirements of the Open Meetings Law. Executive Session (Agenda Item 9) Chairman Jordan convened the Executive Session of the Economic and Community Development Committee at 1:20 p.m. on Tuesday, August 5, 2008, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102, in order to discuss the following: 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 CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 3 of 12 concerning public improvement districts and (ii) legal issues concerning 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. The Executive Session was adjourned at 2:28 p.m. on Tuesday, August 5, 2008. Chairman Jordan reconvened the regular meeting of the Economic and Community Development Committee at 2:28 p.m. on Tuesday, August 5, 2008. Semi-Annual Report on the Fort Worth Partnership for Community Development (FWPCD) (Agenda Item 3) Charlotte B. Sobel, President of Fort Worth Partnership for Community Development, spoke before the committee regarding the semi-annual report of the Fort Worth Partnership for Community Development (FWPCD). Using a PowerPoint presentation, she advised that the purpose of the presentation was to provide an update on the FWPCD's activities and outcomes. It was to also seek the committee's comments and recommendation to continue the City's funding commitment to the FWPCD. She introduced herself to the committee as well as recognized the board members as follows: John Avila, Jr., with Thomas S. Byrne Construction, LTD. John Robinson, Amon G. Carter Foundation Valleau "Val" Wilkie, Sid W. Richardson Foundation Kathleen Hicks, Mayor Pro Tern Pablo Calderon, United Way of Tarrant County She also advised of the new board members as follows: Glenn Spoons, Chamber of Commerce and Community Activist Sylvia Monsavias, Vice President, Community Development, Bank of America Glenn Forbes, Vice President, Government Banking, Chase Bank CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 4 of 12 Ms. Sobel reviewed the activities of the Partnership as follows: Financial Support Components: Operating support Technical assistance and training Pre-development assistance Deliverables Increased and diverse housing and commercial projects Stabilized community-based development organizations Core of seasoned mentor organizations Ms. Sobel advised that the Partnership is a funding collaborative that: "pools financial resources to sustain and grow the impact and capacity of community development organizations." She added that it also advocates for the community development industry, growing its role in economic mainstreaming for lower income communities and encouraging partnerships for enhanced neighborhood revitalization strategies. She then reviewed the Partnership's accomplishments to date as follows: Expanded Board of Directors Hired permanent President/CEO 2007 audit and IRS 990 filings completed Financial management systems in place Ms. Sobel showed a pie chart of the funds that had been raised to date in 2007-2008. Those funding sources included charitable grants ($400,000), corporate giving ($25,000), public funding ($318,528) and in kind support ($79,750). She spoke about the program delivery as follows: Using grant criteria, Board selected three community development corporations for 3-year funding at $50,000 per year: Near Northside Partners Council, Inc. Tarrant County Samaritan Housing, Inc. United Riverside Rebuilding Corporation Serving as an advocate for the issue of affordable housing in the City. Providing ongoing technical assistance to grantees and other neighborhood groups. CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 5 of 12 She spoke about the grantee program delivery status as follows: • First-year grants funded • Technical assistance provided to grantees • Near Northside Partners, Inc. • Tarrant County Samaritan Housing, Inc. • United Riverside Rebuilding Corporation She reviewed the Partnership benchmark goals for 2008-2009 as follows: • Continue board expansion • Expand the number of community development corporations working in the City of Fort Worth • Provide technical assistance to neighborhoods to prepare for community- based development by others • Continue fundraising to ensure organization stability • Continue to provide technical assistance to grantees and others • Continue to serve as an advocate for quality affordable housing in the City Ms. Sobel indicated that the City Council supported the Partnership via surplus property sales as follows: $800,000 commitment for the first three years Property sales to date: 700 West Rosedale—M& C 14171 $268,455 3205 Williams Place—M&C 14281 $9,197 2255 8th Avenue—M& C 14280 $40,832 Total: $318,484 She added that $206,516 would be raised through surplus property sales to meet the year 2 commitment and $275,000 would be raised to meet the year 3 commitment. Ms. Sobel advised that the requested committee action was to: • Continue the City's commitment to participating in the Partnership • Support sale of warranty-deed property to fulfill the Year 2 funding commitment ($206,516) • Determine the Year 3 funding source ($275,000) Ms. Sobel concluded her presentation. CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 6 of 12 Mayor Pro tem Hicks advised that it was a pleasure to work with Ms. Sobel and to work through out the City to provide and help some groups that needed an extra helping hand. She added that it was a great partnership and it was a tough budget cycle, second to the last slide and sell of property hope to continue this process. Mayor Pro tem Hicks added that she applauds the work of Ms. Sobel. Council Member Espino stated that protection home statement on tax foreclosure. CHDo's depends will by quality off Mayor Moncrief added his appreciation for this service and demand accessibility and quliaty of life issue. Update on TECH Fort Worth's Launch of a New Business Known as Office Authority (Agenda Item 4) Quarterly Update on the City's Minority and Woman-Owned Business Enterprises (MWBE) Program (Agenda Item 5) Preview of the Promotional Video Prepared by Economic and Community Development Department to be Shown at the American Contract Compliance Association's Annual Meeting (Agenda Item 6) Discussion and Consideration of Nominating Miller Brewing Company as an Enterprise Proiect (Agenda Item 7) Shallah Hatch, Economic Development Specialist, Economic and Community Development Department, provided a presentation on the nomination of Miller Brewing Company as an enterprise project. Using a PowerPoint presentation, Ms. Hatch reviewed the Texas Enterprise Zone Program as follows: Program Objective CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 7 of 12 The Texas Enterprise Zone Program is an economic development tool for local communicates to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the State. An Enterprise Project is: An enterprise project is a business that is nominated by a municipality or county and approved by the bank for state and local benefits. State incentives include state sales and use tax benefits based on capital investment and jobs created and/or retained during the designation period. The State may designate up to 105 enterprise projects and each biennium. Ms. Hatch advised that the enterprise project requirements were: Projects that are nominated by a city or county and applications are made to the state. The projects must have at least 35% of new/retained employees meet economically disadvantaged or enterprise zone residency requirements. Jobs must provide employment of at least 1,820 hours annually. Jobs must exist through the end of the designation period, or at least three years after the date on which a state benefit is received, whichever is later. She provided an overview of the enterprise project benefits. She stated the designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site. Ms. Hatch reviewed the location of MillerCoors. She stated that it was situated at the southeast quadrant of IH-35W and Altamesa Boulevard and provided an aerial map of the location. She pointed out that it was eight minutes south of downtown Fort Worth and located in the Carter Industrial Park. She added that this location was in Council District 8. She reviewed MillerCoors annual investment as follows: Payroll: $45,577,308 (710 employees) Real & business personal property taxes: $3,320,729 High water consumption: 877,000,000 gallons Ms. Hatch advised of their benefit to Fort Worth as follows: CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 8 of 12 MillerCoors will consolidate in Fort Worth. Project investment is Brewing and packaging lines $54,600,000 Utility and related upgrades $30,200,000 Building and IT Infrastructure $10,000,000 Other Fixed Asset improvements $10,000,000 Total: $104,700,000 There will be 500 jobs retained with payroll of$31.2 million Company would submit the necessary annual paperwork to state to receive benefits. The request required no fiscal obligation from the City of Fort Worth. She advised that if MillerCoors invests $104.7 million and retains 500 jobs, they would be eligible for a maximum refund of$1,250,000 for state sales and use tax. Ms. Hatch reviewed the next steps as follows: Place a resolution of support on August 19 Council Agenda. Submit application to the state prior to September 1 deadline. CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 9 of 12 CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 10 of 12 CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 11 of 12 Consideration of Written Reports: Quarterly TIF Report (Agenda Item 8) CITY OF FORT WORTH ECONOMIC AND COMMUNITY DEVELOPMENT COMMITTEE AUGUST 5, 2008 Page 12 of 12 Requests for Future Agenda Items (Agenda Item 10) There were no future agenda items requested. Date of Next Regular Meeting— September 2, 2008 (Agenda Item 11) Chairman Jordan advised that the next regular meeting of the Economic and Community Development Committee would be held on Tuesday, August 5, 2008. Adiourn (Agenda Item 12) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Economic and Community Development Committee at 3:05 p.m., on Tuesday, August 5, 2008. These minutes approved by the Economic and Community Development Committee on the 7th day of October, 2008. APPROVED: Jungus Jordan, Chairman Minutes Prepared by and Attest: Marty Hendrix, City Secretary