HomeMy WebLinkAbout2011/06/07-Minutes-HEDCCITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Present:
Committee Member Jungus Jordan, Chairman
Committee Member Carter Burdette, Vice Chairman
Committee Member Mike Moncrief (arrived at 1:41 p.m.)
Committee Member Salvador Espino
Committee Member W. B. "Zim" Zimmerman
Committee Member Danny Scarth
Committee Member Frank Moss
Committee Member Kathleen Hicks
Absent:
Committee Member Joel Burns
City Staff:
Susan Alanis, Assistant City Manager
Peter Vaky, Deputy City Attorney
Ronald Gonzales, Assistant City Secretary
Jay Chapa, Director of Housing and Economic Development Department
Cynthia Garcia, Assistant Director, Housing and Economic Development Department
Robert Sturns, Manager, Housing and Economic Development Department
William Johnson, Assistant Director, Housing and Economic Development Department
Other City Staff in Attendance:
Tom Higgins, Interim City Manager (arrived at 1:11 p.m.)
Vicki Ganske, Senior Assistant City Attorney, Law Department
LeAnn Guzman, Assistant City Attorney, Law Department
Charlene Sanders, Assistant City Attorney
Chris Moseley, Assistant City Attorney
Gerald Pruitt, Deputy City Attorney (arrived at 2:19 p.m.)
Robin Bentley, Acting Housing Program Manager, Housing and Economic Development
Department
With a quorum of the committee members present, Chairman Jungus Jordan called the
meeting of the Housing and Economic Committee to order at 12:32 p.m., on Tuesday, June 7,
2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 2 of 36
Street, Fort Worth, Texas 76102, with Committee Member Moncrief temporarily absent and
Committee Member Burns absent.
Approval of Minutes of the May 3, 2011,
Housing and Economic Development
Committee
(Agenda Item 2)
Chairman Jordan opened the floor for a motion on the approval of the minutes.
MOTION: Upon a motion made by Committee Member Burdette and seconded by
Committee Member Espino, the Committee Members voted seven (7) "ayes" and
zero (0) "nays ", with Committee Members Moncrief and Burns absent, to approve
the minutes of the May 3, 2011, Housing and Economic Development Committee
meeting. The motion carried unanimously.
Written Reports
(Agenda Item 3)
Chairman Jordan advised that the following written reports had been provided as a matter
of information to the committee members:
A. Update on the Proposed Project with United Community Center for the Bethlehem
Center in the Evans and Rosedale Area
B. TECH Fort Worth Quarterly Report
C. Memo Regarding Renaissance Square Economic Development Program Agreement
Proposed Amendment
D. Memo Regarding HOME CHDO Set Aside Funds for the Beaty Street Project with
Tarrant County Housing Partnership
Chairman Jordan opened the floor for questions and /or comments. There were none.
These reports were received as a matter of information.
Chairman Jordan adjourned the regular meeting of the Housing and Economic
Development Committee into Executive Session at 12:34 p.m.
Executive Session
(Agenda Item 4)
Chairman Jordan called to order the Executive Session at 12:34 p.m. in order to
discussion the following items:
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 3 of 36
Executive Session (cont'd) (Agenda Item 4)
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;
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 Jordan adjourned the Executive Session at 1:28 p.m., on Tuesday, June 7,
2011.
Chairman Jordan reconvened the regular session of the Housing and Economic
Development Committee at 1:29 p.m.
Presentation of Allocation of HOME Funds
for Residential Projects
(Agenda Item 5)
Jay Chapa, Director of the Housing and Economic Development Department, spoke
before the committee on the Home Funds for Residential Projects. Using a PowerPoint
presentation, he reviewed with the committee the HOME funding commitment requirements,
potential funding reallocations and proposed projects.
Mr. Chapa reviewed the HOME Funding Commitment Requirements as follows:
• 2010 -2011 City received approximately $3.2 million in HOME funds
• Commitment and spending regulations
• City must commit HOME funds to project with specific address within 2 yrs
of receipt
• City must spend HOME funds within 5 yrs
Current commitments by July 31, 2011 - $1,493,593
Mr. Chapa informed the committee of the following commitment issues:
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JUNE 7, 2011
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Presentation of Allocation of HOME Funds
for Residential Proiect (cont'd) (Agenda Item 5)
• Housing Trust Fund
• Since 2007 — Action plans have set aside approx. $2.0 million for the Housing
Trust Fund
• Issues arose with program design leading to hiatus of program while it is
redesigned (HUD consultant currently assisting staff in redesign of program —
no funds allocated in 2010 -11)
• Program hiatus creates inability to commit funds — In order to be committed,
there must have a specific address
• Cancelled Projects
• Bonnie Brae project awarded $1,100,000.00 in HOME funds has been
withdrawn by developer
• Historic Carver Heights has requested that their HOME funds of $563,154.00
be swapped for CDBG funds so they can proceed with their CDBG eligible
proj ects
Mr. Chapa advised the available funds that must be committed to new projects were as
follows:
Funds required to be committed
2007 HTF
$527,000.00
2008 HTF
696,907.00
2009 HTF
862,584.00
Cancelled Bonnie Brae
1,100,000.00
HOME funds from Model Block
563,684.00
Total
$3,750,175.00
Mr. Chapa explained that the proposed projects to meet commitment requirements were
as follows:
HFC Lee Ave. Townhomes Project:
$1,000,000
LDC Lancaster Mixed Use Project:
2,000,000
Pilgrim Valley ITEX Rehabilitation:
200,000
Stop Six Acquisition/Rehab Project:
550,175
Total
$3,750,175
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CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 5 of 36
Presentation of Allocation of HOME Funds
for Residential Proiect (cont'd) (Agenda Item 5)
Mr. Chapa presented an aerial photograph of the Lee Avenue Townhomes project
proposed locations at 1402, 1404 and 1419 Lee Avenue and 406 W. Central Avenue. Mr. Chapa
also presented a photograph of a closer aerial view of the Lee Avenue Townhomes project
proposed locations.
Mr. Chapa presented two (2) photographs depicting the existing conditions of properties
located in the following areas:
• Council Distrist 2
• Northside NEZ
• Properties facing Lee Avenue consisting of a total of four (4) tax foreclosed
dilapidated residential structures and a former furniture store
Mr. Chapa presented the proposed HFC project as follows:
Available Lots:
6 (replat for townhomes)
Total Land Area
Approx 46,194 sq. ft.
Residential Townhomes
• 4 -7 Townhomes /w rear entry garages
• (2) 2 BR 2 BA 2 Car Garage
• (2 -5) 3 br 2 ba 2 Car Garage
• 1400 - 2000 sq. ft.
Affordable Buyers
• Less than 80% Medium Income
— Family of 4 - $55,900
— Family of 6 - $62,550
Total Investment
$1,000,000 HOME Funds
Mr. Chapa reviewed the staff recommendation as follows:
— Enter into contract with the Fort Worth Housing Finance Corporation for
$1,000,000 of HOME funds for the development of HOME units
— Authorize the sale of the tax foreclose lots to the Fort Worth Housing Finance
Corporation
Mr. Chapa showed an aerial view of the Lancaster Mixed Use project.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 6 of 36
Presentation of Allocation of HOME Funds
for Residential Project (cont'd) (Agenda Item 5)
Mr. Chapa presented two (2) photographs depicting the existing conditions of properties
located in Council District 9 as follows:
• No existing structures — Space used for City vehicle parking
• Located south of the Zipper building
• Surplus property between Lancaster and 15th Street
Mr. Chapa presented the proposed Lancaster Mixed Use full project as follows:
Residential Units
(5 Apartment Floors)
Affordable Rents
Office Space (5 Floors)
Retail Space
Total Project Space
Garage/New Public Parking
Total Real Property
Improvement
90 Units
• 30 —1 BR (2 — Low HOME 9 — High HOME)
• 45 — 2 BR (3 — Low HOME 13 — High HOME)
• 5 — 3 BR (0 — Low HOME 2 — High HOME)
• Approximately 950 -1500 sq. ft.
• 1 BR Low Rent $632 High Rent $708
• 2 BR Low Rent $758 High Rent $861
• 3 BR Low Rent $876 High Rent $1105
Approximately 60,000 sq. ft.
Approximately 20,000 sq. ft
Approximately 230,000 sq. ft.
450 Spaces
$30 -35 Million
Mr. Chapa reviewed the staff recommendation as follows:
• Enter into contract with the Fort Worth local Development Corporation for
— $2,000,000 of HOME funds for the development of HOME units for the
Lancaster Project
— Lease /option to purchase for the City property located along Lancaster
Mr. Chapa provided the following information on the developer of the Pilgrim Valley
Manor Apartments:
• The Itex Group
• Formed in 2003, based in Beaumont, Texas
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 7 of 36
Presentation of Allocation of HOME Funds
for Residential Proiect (cont'd) (Agenda Item 5)
• The Itex's multifamily portfolio has grown to over 2600 units in Texas
• Experience with HUD financed and subsidized properties
• Currently working with developer on the prince hall Gardens Apartments project
Mr. Chapa presented an aerial view of the Pilgrim Valley Manor Apartments.
Mr. Chapa provided a description of the Pilgrim Valley Manor project as follows:
• Affordable rental development
• Located at 1701 E. Robert Street
• Rehab of 168 units and all associated facilities
• $17 million total investment, including acquisition
• Acquisition and rehabilitation
• Asbestos and lead paint abatement
• Replace outdated HVAC
• Replace flooring, plumbing, and electrical
• Demolish existing community center and rebuild
• Support services offered
• Submitted application for TDHCA "at -risk" set -aside tax credits for $1,400,000
Mr. Chapa presented a current photograph of the Pilgrim Valley Manor apartments and
an architect's sketch of the elevations of Building Type 3: one (1) bedroom/one (1) bath and the
Community Building.
Mr. Chapa reviewed the staff recommendation as follows:
• Loan of HOME Investment Partnership funds ($200,000) secured by a recorded Deed
of Trust on the real property to serve as local match
• The funds will be provided as a construction loan
• Payment will be due upon the completion of construction
• All units will be affordable as required, to receive tax credits
Mr. Chapa provided the following information on the Stop Six Infill project:
• Swap CDBG funds for HOME funds in order to do new construction in the Stop Six
Neighborhood Model Block Program
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CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 8 of 36
Presentation of Allocation of HOME Funds
for Residential Project (cont'd) (Agenda Item 5)
• $550,175.00 would be available for new construction
Mr. Chapa provided an aerial view that depicted the locations of the recommended lots
for new construction and potential single family home properties.
Mr. Chapa provided the locations of the recommended lots for new construction and
rehabilitation as follows:
• New Construction:
— 2504 Dillard
— 5151 Charlene
— 2600 Marlin
— 2709 Marlin
• Rehabilitation (or new construction, if greater than $50,000 in estimated rehab costs):
— 2508 Dillard
— 5115 Draper
— 2703 Marlin
Mr. Chapa provided photographs depicting the current conditions of the property located
at 5115 Draper and 2504 Dillard.
Mr. Chapa advised that the recommended next steps were:
• City of Fort Worth to allocate $550,175 of HOME Investment Partnership funds to
the Stop Six Infill Project
• M &C on June 14, 2011
Mr. Chapa concluded his presentation and discussion on this item.
Chairman Jordan opened the floor for questions and /or comments. There were none.
Chairman Jordan indicated that by consensus, these projects would move forward to the
City Council.
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CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 9 of 36
Presentation of Knights of Pythias Mixed
Income Residential Project Locat4ed at 303
and 307 Crump Street and a Portion of 915
East 2nd Street with the Fort Worth Housing
Authority
(Agenda Item 6)
Cynthia Garcia, Assistant Director of the Housing and Economic Development
Department, spoke before the committee on the Knights of Pythias Lodge Lofts. Using a
PowerPoint presentation, she reviewed with the committee the location of this project on East
Second Street at Crump Street with an aerial photograph. She provided a second aerial
photograph of a closer view of the building and surrounding properties. Ms. Garcia showed a
photograph of this building which was currently vacant and boarded up.
Assistant Director Garcia advised that the partners in this project would be the Fort
Worth Housing Authority (developer), the City of Fort Worth and Downtown Fort Worth, Inc.
Assistant Director Garcia advised that the project consisted of:
• Acquisition of two lots for development and lease of one lot for parking (DFWI
owned lot)
• Renovation and restoration of Knights of Pythias building (eight units)
• New construction of an adjacent structure (12 units)
• Development of 20 mixed income units for workforce housing
■ 8 -10 1 -BR
■ 8 -10 2 -BR
Assistant Director Garcia presented an artist's generated drawing of the proposed
elevation of the renovated building. She also presented the proposed site plan showing the
number of units, size of the units, number of bedrooms, parking lot, etc. She showed an
additional proposed site plan of the Knights of Pythias building (6,400 square feet with eight (8)
units), along with a new three -story building (9750 square feet with 12 units).
Assistant Director Garcia reviewed the proposed project funding sources as follows:
Development Sources Summary Amount
Private Lender $902,000
Fort Worth Housing Authority $550,000
*CFW CDBG Funds $700,000
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CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 10 of 36
Presentation of Knights of Pythias Mixed
Income Residential Project Locat4ed at 303
and 307 Crump Street and a Portion of 915
East 2nd Street with the Fort Worth Housing
Authority (cont'd)
Total Proposed Funding Sources
Total Development Costs
(Agenda Item 6)
$1,900,000.00
$1,900,000.00
*Approximately $400k of CDBG funds to be used for site acquisition
Assistant Director Garcia reviewed the recommendation as follows:
Staff recommends approval of $700,000 in CDBG funds for site acquisition and
rehabilitation subject to the following terms and conditions:
15 -year affordability period
Secure CDBG funds with a recorded deed of trust on land and all improvements
Development must comply with the following HOME Investment Partnership Grant
Fund regulations
■
51% of units must be affordable to individuals or households earning less than
80% of AMI
Ms. Garcia advised that the recommended next steps were:
Public Comment Period in Fort Worth Star Telegram from May 6, 2011 to June 6, 2011
Mayor and City Council Communication (M & C) on Council Agenda on June 14, 2011:
• to authorize expenditure and to change the use of the CDBG funds for the project
• Executive contract with the Fort Worth Housing Authority for $700,000 in CDBG
funds.
Ms. Garcia concluded her presentation and discussion on this item.
Chairman Jordan opened the floor for questions and /or comments.
Committee Member Hicks requested clarification on if it was usual that there was a 15-
year end point on how long the units would be affordable. Assistant Director Garcia indicated
that for CDBG there was no end point. She stated that the City staff wanted to use the same
criteria that existed for HOME funds and it was 15 years for rehabbed properties and 20 years for
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 11 of 36
Presentation of Knights of Pythias Mixed
Income Residential Project Locat4ed at 303
and 307 Crump Street and a Portion of 915
East 2 "d Street with the Fort Worth Housing
Authority (cont'd)
(Agenda Item 6)
new construction. She talked about using the CDBG funds for the rehabbing of this project and
the 15 years for affordability. Committee Member Hicks requested clarification from Assistant
Director Garcia as to whether she had been in contact with the church next door to this project.
Assistant Director Garcia indicated that the answer was "no." Committee Member Hicks
indicated that this project had been going on for quite a while. Someone in the audience
indicated that the Fort Worth Housing Authority had been in contact with them.
There was no further discussion on this agenda item.
Chairman Jordan stated that by consensus, this project would move forward to the City
Council.
Audit Report on Economic Development
Incentive Program
(Agenda Item 7)
Robert Sturns, Manager of the Housing and Economic Development Department, spoke
before the committee on the 2010 audit year findings for incentive agreements. Using a
PowerPoint presentation, he reviewed with the committee the audit process for incentive
agreements and he presented the findings from the 2010 audit of tax abatement agreements and
economic development program grant agreements as follows:
Mr. Sturns explained the audit process to the committee as follows:
• Courtesy reminder letters were sent to companies in December
• Companies submitted information to be audited by Feb lst
• City's Internal Audit Department reviewed information and conducted audit,
including site visits
• Information was compiled for report and presentation
Mr. Sturns advised that 13 Tax Abatement agreements and 16 Economic Development
program Grant agreements were audited in 2010.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 12 of 36
Audit Report on Economic Development
Incentive Proaram (cont'd) (Agenda Item 7)
Mr. Sturns informed the committee that in 2010 the total number of committed jobs was
4,170 and the total number of actual jobs was 7,466. The number of committed Fort Worth jobs
was 2,997 and the number of actual Fort Worth jobs was 3,289; the number of committed CC
jobs was 1,240 and the number of actual CC jobs was 1,804.
Mr. Sturns presented the 2010 Fort Worth business participation figures as follows:
• Committed construction - $223 million
• Actual construction - $412.3 million
• Committed goods and services - $14.0 million
• Actual goods and services - $27.9 million
Mr. Sturns provided the 2010 M/WBE participation as follows:
• Committed construction - $149.1 million
• Actual construction - $248.9 million
• Committed goods and services - $9.0 million
• Actual goods and services - $14.9 million
Mr. Sturns presented photographs of several businesses throughout the City that have
participated in the tax abatement agreements and he provided data pertaining to the tax
abatement agreements as follows:
Abatement
Abatement
Maximum
Earned
• Allied Electronics (2017)
100%
50%
• Blue Cross Blue Shield (2020)*
50%
N/A
• Chase Operations Center (2015)
90%
10%
• Cinram Wireless (2019)
75%
52.9%
• Coca -Cola Enterprises (2014)
90%
63%
• ConAgra Foods (2013)
90%
0%
• Cott Beverages (2015)
75%
0%
• Cotton Depot Lofts (2015)
100%
100%
• CUNA Mutual (2017)
75%
20%
• Grandmarc -W. Berry St. (2016)
100%
100%
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JUNE 7, 2011
Page 13 of 36
• Mattel, Inc. (2012) 100% 100%
• OBIM Fresh Cut Fruit (2011)* 100% 0%
• Omni Fort Worth Hotel (2018) 100% 100%
• Stockyards Station Hotel (2012) 100% 0%
*TAD value to be determined
Mr. Sturns provided the tax value on new investment as follows:
Mr. Sturns provided information on agreements completed in 2010 as follows:
• Bell Helicopter Textron
— Total Added Value $28,259,437
— Estimated Annual Taxes Beginning 2011 $ 795,248
— Total Job 1,648
• Ben E. Keith
— Total Added Value $28,000,000
— Estimated Annual Taxes Beginning 2011 $ 282,332
— Total Job 889
• Blackstone Hotel- Courtyard by Marriott
— Total Added Value $ 1,213,187
— Estimated Annual Taxes Beginning 2011 $ 82,743
$ Value to
$ Taxes to City
Company
• Allied Electronics (2017)
$ 92,296
$ 92,296
• Blue Cross Blue Shield (2020)
NA
NA
• Chase Operations Center (2015)
$ 34,244
$308,198
• Cinram Wireless (2019)
$147,885
$131,670
• Coca -Cola Enterprises (2014)
$ 24,784
$ 14,556
• ConAgra Foods (2013)
$ 0
$111,566
• Cott Beverages (2015)
$ 0
$223,248
• Cotton Depot Lofts (2015)
$117,819
$ 0
• CUNA Mutual (2017)
$ 19,116
$ 76,465
• Grandmarc -W. Berry St. (2016)
$277,932
$ 0
• Mattel, Inc. (2012)
$179,097
$ 0
• OBIM Fresh Cut Fruit (2011)
$ 0
$ 0
• Omni Fort Worth Hotel (2018)
$670,320
• Stockyards Station Hotel (2012)
$ 0
$ 57,021
Mr. Sturns provided information on agreements completed in 2010 as follows:
• Bell Helicopter Textron
— Total Added Value $28,259,437
— Estimated Annual Taxes Beginning 2011 $ 795,248
— Total Job 1,648
• Ben E. Keith
— Total Added Value $28,000,000
— Estimated Annual Taxes Beginning 2011 $ 282,332
— Total Job 889
• Blackstone Hotel- Courtyard by Marriott
— Total Added Value $ 1,213,187
— Estimated Annual Taxes Beginning 2011 $ 82,743
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 14 of 36
— Total Job 32
• Mother Parkers Tea and Coffee
— Total Added Value $16,020,996
— Estimated Annual Taxes Beginning 2011 $ 156,236
— Total Job 163
• Villas by the Lake
— Total Added Value $ 6,732,106
— Estimated Annual Taxes Beginning 2011 $ 62,516
— Total Job 12
• TOTAL ESTIMATED TAXES $1,379,075
Mr. Sturns reviewed the total taxable values estimated vs. actual as follows:
Collected
Estimated Per Agreements
Actual Per Audit
City collected $816,088 above projected.
Incentive Value
$2,222,983
$1,563,493
Taxes
$198,931
$1,015,019
Mr. Sturns presented photographs of several businesses throughout the City that have
participated in the economic development program agreements and he provided data pertaining
to the potential maximum percentage by agreement as follows:
• Acme Brick (2038)
100%
• Cabela's (2025)
67%
• La Gran Plaza (2027)
100%
• Montgomery Plaza Kimco (2030)
100%
• Museum Place Development (2025)
55%
• Omni Fort Worth Hotel (2026)
100%
• Pier 1 (2025)
90%
• Presidio Hotel Fort Worth, LP (2029)
100%
• RadioShack (2016)
100%
• Railhead Business Park (2015)
90%
• Renaissance Worthington (2024)
100%
• Super Target at Montgomery Plaza (203 1)
100%
• The Tower (2015)
100%
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JUNE 7, 2011
Page 15 of 36
• Trinity Bluff Development 701 E. Bluff (2024) 100%
• Trinity Bluff Development 3 -Story 100%
• Trinity Bluff Development 4 -Story 100%
Mr. Sturns presented detailed information of the Economic Development Program Grant
for each company as follows:
Acme Brick
Grant: 100% of sales taxes capped
Earned maximum Grant of 100%
Total Taxes Collected
Grant Amount
Net New Taxes
Cabela's
Grant: 67% of personal property & sales taxes capped
Earned maximum Grant of 67%
Total Taxes Collected
Grant Amount
Net New Taxes
*Figure is net $ that is contributed to TIF 10
La Gran Plaza
Grant: 50% of real & personal property & 80% sales taxes capped
Earned maximum Grant of 50% property and 80% sales taxes
Total Taxes Collected
Grant Amount
Net New Taxes
Montgomery Plaza Kimco
$613,597
$409,064
$204,533
$1,104,113
$ 519,280
$ 584,833*
$858,573
$234,726
$623,847
Grant: 100% of real property, business personal property & sales taxes capped
Earned maximum Grant of 100%
Total Taxes Collected $1,046,306
Grant Amount $ 835,737
Net New Taxes $ 210,569
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 16 of 36
Museum Place Development
Grant: 55% of real property, business personal property & sales taxes capped
Earned maximum Grant of 55%
Total Taxes Collected $393,349
Grant Amount $192,076
Net New Taxes $201,273
Omni Fort Worth Hotel
Grant: 100% of real property, sales taxes and HOT capped
Earned maximum Grant of 100%
Total Taxes Collected $2,957,309
Grant Amount $2,881,704
Net New Taxes $ 75,605
Pier 1
Grant: 90% of real & personal property taxes capped
Earned 70% of Grant
Total Taxes Collected $564,727
Grant Amount $355,778
Net New Taxes $208,949
Presidio Hotel Fort Worth, LP
Grant: 100% of the 7% HOT capped
Earned 87% of Grant
Total Taxes Collected $641,841
Grant Amount $300,668
Net New Taxes $341,173
RadioShack
Grant: 100% of sales taxes capped
Earned maximum Grant of 100%
Total Taxes Collected $517,896
Grant Amount $414,317
CITY OF FORT WORTH
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 17 of 36
Net New Taxes $103,579
Railhead Business Park
Grant: 90% of real & personal property taxes capped, plus interest
Earned maximum Grant of 90 %, plus interest
Total Taxes Collected $363,730
Grant Amount $363,730
Net New Taxes $ 0
Renaissance Worthington
Grant: 100% sales & HOT capped
Earned 0 %*
Total Taxes Collected $1,378,560
Grant Amount $ 0
Net New Taxes $1,378,560
* Eligible for grant but did not exceed base values
Super Target at Montgomery Plaza
Grant: 100% of ad valorem & sales taxes capped
Earned maximum Grant of 100%
Total Taxes Collected $667,525
Grant Amount $491,982
Net New Taxes $175,543
The Tower
Grant: 100% of real property taxes capped
Earned maximum Grant of 100%
Total Taxes Collected $912,254
Grant Amount $869,254
Net New Taxes $ 43,000
Trinity Bluff Development Bluff Street Project
Grant: 100% of real property taxes capped
Earned maximum Grant of 100%
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 18 of 36
Total Taxes Collected
Grant Amount
Net New Taxes
Mr. Sturns previewed the pending grant payments as follows:
• Lincoln Property
$226,467
$208,489
$ 17,978
— Trinity Bluff Phase 2 (3 -Story Residential Project)
— Trinity Bluff Phase 3 (4 -Story Residential Project)
• Additional Investment Commitments for Phase 2 and 3 are under review
• Grant cannot be paid until verification of the additional investment per the
Chapter 380 EDPA
Mr. Sturns summarized the Economic Development Program Grants as follows:
• Total Taxes Collected $12,246,247
• Total Grants $ 8,076,805
• Net Revenue to City $ 4,169,441
Mr. Sturns concluded his presentation with a comparison of incentives to total ad valorem
taxes as follows:
CFW total appraised value of real & personal property:
Estimated total real & personal property taxes:
Estimated sales taxes:
Estimated total ad valorem & sales taxes:
Estimated total taxes abated /granted:
Percent of taxes abated /granted:
Chairman Jordan opened the floor for questions and /or comments.
$ 56.0 Billion
$350.6 Million
$ 99.7 Million
$450.3 Million
$ 9.6 Million
2%
Committee Member Moncrief indicated that the first few slides were very telling about
what the City's tool kit was able to accomplish when the City offered these types of incentives.
He added he felt it had put the City in a leadership role in order to keep and attract new jobs. He
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 19 of 36
Audit Report on Economic Development
Incentive Program (cont'd) (Agenda Item 7)
pointed out that issue helped to add to the City's tax base. He stated that it had also allows the
City to weather some very difficult economic times in a climate that the City had no control. He
referenced the cities in the east, west and mid -west that had suffered hard economic times. He
reiterated that even though there was no 100 percent participation, he still felt the City saw a
tremendous benefit.
Chairman Jordan pointed out that the City's internal auditor had verified the numbers
shown, thus there has been an independent review of this, which was always good. Chairman
Jordan recommended that when the new City Council was seated that a presentation be made by
the City staff on the City's incentive programs as to what benefits they have provided regarding
jobs, tax increments, tax base, affordable housing, all of the criteria and to bring forth the staff's
recommendation on the City's guiding principles that would be needed in an economic
development program going forward.
Committee Member Scarth also requested information in the presentation to show where
the certain tax incentives were being utilized city -wide.
This concluded the presentation and discussion on this agenda item.
Action Plan Presentation on the Allocation
of Community Development Block Grant,
HOME Investment Partnerships Program,
Emergency Shelter Grant and Housing
Opportunities for Persons with AIDS
Program Grant Funds (Agenda Item 8)
Jay Chapa, Director of the Housing and Economic Development Department, spoke
before the committee on the Action Plan Funding Recommendation. Using a PowerPoint
presentation, he reviewed with the committee the Action Plan Schedule as follows:
• March/April — Request for proposals for public service and HOME funds
released /due
• May — Community Development Council reviews and makes recommendations
• June 8 — CDC recommendations provided to City Housing & Economic Development
Committee
• June 27 — July 27 — 30 Day public comment period
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 20 of 36
Action Plan Presentation on the Allocation
of Community Development Block Grant,
HOME Investment Partnerships Program,
Emergency Shelter Grant and Housing
Opportunities for Persons with AIDS
Program Grant Funds (cont'd)
• July 26 & August 2 — Public hearing at City Council meetings
• August 2 — Formal action on M &C after public hearing
• August 16 — Submit Action Plan to HUD
• October 1 — Begin new grant fiscal year
(Agenda Item 8)
Mr. Chapa provided the names of the board members of the Community Development
Council as follows:
— Mike Brennan
— Harry Butcher
— Larry Crocket
— Jason Hall
— Juna Allen Harris
— Patrick Main (Chair)
— Robert Pena
— Jacinto Ramos, Jr.
— Mason Rice, Jr.
Mr. Chapa presented the CDC Action Plan meeting schedule as follows:
• May 4, 2011 —Review CDBG RFP
Presentations /Responses
• May 11, 2011 — Review ESB, HOPWA RFP
Presentations /Responses
• May 25, 2011 — Review HOME Funds RFP & Vote on Action Plan recommendations
Mr. Chapa reviewed the HUD Allocations for 2011 -2012 as follows:
Community Development
Block Grant
Home Investment Partnership
Program
$6,153,136 (Decrease of $1,178,071)
$2,832,296 (Decrease of $369,641)
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CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 21 of 36
Emergency Shelter Grant
Housing Opportunities for persons
with AIDS
Total Funds
$ 412,678 (Increase of $116,451)
$ 936,172 (Decrease of $14,676)
$10,334.282
Mr. Chapa presented the CDBG City Program Funding Recommendations as follows:
Activity
Subtotal
Total
Public Services (15 %)
$922,970.40
Economic Development (Repayment of Section 108
$733,181.90
Loan)
General Administration (20 %)
$1,230,627.20
Housing, Programs
$2,437,052.00
— Project Ramp
$50,000
— Rehab /Construction Mgmt program Delivery
$603,806
— Homebuyer & Housing Services
$164,496
— Emergency Home Repair
$650,000
— Cowtown Brushup (Project Funds)
$300,000
— Cowtown Brushup (Program Delivery)
$50,000
— Match for Lead Grant
$618,750
Community Facilities and Infrastructure
$829,304.50
— Lights Installation — Historic Carver Heights
$50,000
— Lights Installation — Terrell Heights
$150,000
— Neighborhood Streets
$629,304.50
Program Income
$75,000
— Neighborhood Streets
$48,750
— General Administration
$15,000
— Day Resource Center
$11,250
Total
$6,228,136
Mr. Chapa reviewed the CDBG Public Service funding as follows:
• RFP issued March 9, 2011 due April 14, 2011
• Reduced Funding
— Approximately $177,000 fewer CDBG dollars available for public service
agencies
• Number of Agencies
— Goal of a maximum of 25 total contracts
• Minimum Funding
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 22 of 36
Action Plan Presentation on the Allocation
of Community Development Block Grant,
HOME Investment Partnerships Program,
Emergency Shelter Grant and Housing
Opportunities for Persons with AIDS
Prop-ram Grant Funds (cont'd)
— Each agency to receive a minimum of $25,000 in funds
Mr. Chapa presented the RFP Scoring Matrix as follows:
• Units of service — 5 points
• Goal Alignment — 3 points
• Unduplicated Clients — 10 points
• Administrative Load — 10 points
• Compliance issues — 30 points (negative points possible)
• Findings History— 10 points max
• Programmatic & Reporting History— 10 points max
• Outstanding taxes, liens or judgments —10 points max
• Financial Capacity — 5 points
• Financial Leveraging — 10 points
• Percent of program paid for by grant funds — 5 points max
• Total cost per unit of service — 5 points max
Mr. Chapa provided the CDBG funding recommendations as follows:
(Agenda Item 8)
Agency /Program
Current
Request
CDC
Year
Recommend
Mental Health Association of Tarrant County
$ 15,750
$ 25,275
$ 25,000
(Ombudsman)
Girls, Inc.
$ 12,600
$ 25,000
$ 25,000
Mental Health Association of Tarrant County
$22,275
$ 39,369
$ 25,000
(Advocate)
YWCA (Child Development)
$135,000
$135,000
$135,000
Cenikor Foundation
$ 21,000
$ 45,000
$ 25,000
Cornerstone Assistance Network
$ 15,297
$ 28,848
$ 25,000
Cultural Center of the Americas
$ 18,070
$ 29,915
$ 25,000
CASA of Tarrant County
$ 43,300
$ 43,300
Northside Inter - Church Agency (Good Works)
$ 21,092
$ 29,801
$ 25,000
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 23 of 36
Child Care Associates
$117,000
$117,000
$117,000
The Salvation Army
$ 20,000
$ 50,000
$ 25,000
UCC Poly
$ 28,154
$ 28,154
UCC (Wesley)
$ 27,919
$ 27,919
The Ladder Alliance
$ 20,000
$ 40,000
$ 25,000
YWCA (My Own Place)
$ 17,268
$ 17,268
$ 25,000
Camp Fire (Diamond Hill)
$ 19,923
$
$ 33,604
Senior Citizen Services of Greater Tarrant
$ 36,000
33,604.70
$0
Clayton Child Care
$ 54,000
$ 72,000
$ 54,000
Tarrant Area Food Bank
$ 18,000
$ 25,000
$ 25,000
Camp Fire (Step -Up)
$ 16,200
$ 42,296
$ 42,296
Tarrant County Housing Partnership
$133,092
$144,985
$133,092
Day Resource Center
$ 50,000
$ 50,000
$ 33,605*
*Anticipated to receive additional $11,250 in
- Project Ramp
Program Income
Total
$922,970.40
Mr. Chapa provided the CDBG agency /program recommendations as follows:
Agency /Program -
Current
Request
CDC
Year
Recommendation
Children's Advocacy Resources and
$569,899
$0
Education
CFW PACS (Como)
$ 25,000
$ 30,000
$0
YMCA of Metropolitan Fort Worth
$ 25,000
$ 75,000
$0
CFW PACS (Northside)
$ 19,923
$ 30,000
$0
Senior Citizen Services of Greater Tarrant
$ 36,000
$ 70,000
$0
County
East Fort Worth Montessori
$ 20,000
$ 50,000
$0
CFW PACS (Woodhaven)
$ 16,200
$
$0
27,005.31
Mr. Chapa provided the CDBG recommendations on housing programs as follows:
Housing Programs
- Project Ramp
$ 50,000
- Rehab /Construction Mgmt Program Delivery
$603,806
- Homebuyer & Housing Services
$164,496
- Emergency Home Repair
$650,000
- Cowtown Brush -Up (Project Funds)
$300,000
CITY OF FORT WORTH
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HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 24 of 36
— Cowtown Brush -Up (Program Delivery) $ 50,000
— Match for Lead Grant $618,750
Total $2,437,052.00
Mr. Chapa provided the CDBG recommendations on community facilities and
infrastructure as follows:
Community Facilities and Infrastructure
Lights Installation — Historic Carver Heights $ 50,000
Lights Installation — Terrell Heights $150,000
Neighborhood Streets $629,304.50
Total $829,304.50
Mr. Chapa provided the ESG recommendations as follows:
ESG total $412,678.00
ESG Admin (5 %) $20,633.90
ESG Programs (95 %) $392,044.10
Agency /Program Request CDC
Recommendation
SafeHaven (Shelter Operation) $ 25,000.00 $ 33,750.00
Presbyterian Night Shelter (Emergency Shelter) $183,307.00 $247,464.45
SafeHaven (Supportive Childcare) $ 25,000.00 $ 33,750.00
YWCA (Supportive Living) $ 13,039.00 $ 16,079.65
CFW PACS (SHIPP) $ 50,000.00 $ 61,000.00
Mr. Chapa provided the HOPWA recommendations as follows:
HOPWA total $936,172
HOPWA Admin (3 %) $28,085.16
HOPWA Programs (98 %) $908,086.84
Agency /Program Request CDC
Recommendation
Tarrant County Samaritan Housing $288,811 $288,811.00
AIDS Resources of Rural Texas $110,883 $136,763.84
AIDS Outreach Center $454,328 $482,512.00
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 25 of 36
Mr. Chapa provided the HOME funding recommendations as follows:
Activity
CHDO Tarrant County Housing Partnership
Morningside /Hillside Project Funds
CHDO Operating Funds
Homebuyer Assistance Program
Housing Trust Fund
Administration (10 %)
Total
Recommended Funding Amount
$1,009,066
$ 100,000
$ 940,000
$ 500,000
$ 283,229
$2,832,296
Mr. Chapa provided an aerial photograph of the Tarrant County Housing Partnership, Inc.
Hillside Morningside Neighborhood.
Mr. Chapa reviewed the Tarrant County Housing Partnership, Inc. Hillside Morningside
Neighborhood located in Council District 8 as follows:
• New construction of 17 single family homes
— 3 bedroom, 2 bath, with detached rear garage
— Floor plan option range from 1200 to 1449 square feet
• Scope of Work:
— Site Acquisition (all lots are tax foreclosed properties)
— Construction of homes
• Total Project Cost: $2,283,471.00
— Construction cost approximately $134,000 per home
— TCHP has applied for other sources to cover the gap
• Community Support for project
Mr. Chapa presented architectural drawings depicting the site plans and the floor plans
for options A, B and C of homes proposed to be included in the Hillside Morningside
Neighborhood.
Mr. Chapa advised that the recommended next steps were as follows:
• June 9, 2011 — Action Plan Presentation on Internet
• June 27 -July 27 — Public comment period
• July 26, 2011 — Public hearing at City Council meeting
• August 2, 2011 — Public hearing at City County meeting and formal action on M &C
• August 16, 2011 — Submit Action Plan to HUD
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 26 of 36
Action Plan Presentation on the Allocation
of Community Development Block Grant,
HOME Investment Partnerships Program,
Emergency Shelter Grant and Housing
Opportunities for Persons with AIDS
Program Grant Funds (cont'd) (Agenda Item 8)
Mr. Chapa concluded his presentation.
Chairman Jordan opened the floor for questions and /or comments.
Committee Member Moncrief requested to go back to slide 9, the CDBG
recommendations list. He requested a clarification on the agency called "The Ladder Alliance."
Mr. Chapa indicated that they provided for computer job training and job placement services.
Committee Member Moncrief requested clarification on whether there was a history of the
number of jobs where they had placed individuals. Mr. Chapa explained that information was
part of the RFP process and the CDC had reviewed that information. Mr. Chapa explained that
the listing was created based upon their scoring overall. Committee Member Moncrief then
referenced the last item on the list, which was the Day Resource Center. He pointed out that he
knew that they were having funding issues. Mr. Chapa explained how the funding for this
agency was determined.
Committee Member Hicks requested information on the geographical area that The
Ladder Alliance worked in. She requested to receive the information by e -mail. Committee
Member Hicks spoke about the reduction in funding coming out of Washington and advised that
she was already receiving telephone calls from people whereby they were expressing their
disappointment. She requested that the citizens be patient with the City Council regarding this
matter and she pointed out that the CDC did the best that they could in scoring these agencies.
This concluded the presentation and discussion on this agenda item.
Chairman Jordan indicated that an action plan would be submitted in August.
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance
(Agenda Item 9)
Chairman Jordan indicated that this presentation was only informational today. He
pointed out that the presentation reflected the recommendations coming out of the study group.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 27 of 36
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance (cont'd) (Agenda Item 9)
He added that there would be a time when it would go out for public comment prior to any action
by this committee or the City Council. Chairman Jordan reiterated that it was solely preliminary
in nature.
William Johnson, Assistant Director of the Housing and Economic Development
Department, spoke before the committee on the M /WBE Ordinance — Committee draft
recommendations. Using a PowerPoint presentation, he reviewed with the committee the
purpose of the presentation as follows:
• Present schedule to update City's MWWBE Ordinance
• Present Minority and Women Business Enterprise Advisory Committee ( MWWBE
AC) review process and draft recommendations for proposed changes to the City
M /WBE Ordinance
• Review legal basis for the City's M /WBE Ordinance
Mr. Johnson reviewed the process for updating the M /WBE Ordinance and provided the
names of the M /WBE Advisory Committee members as follows:
• The City Council appointed Minority and Women Business Enterprise Advisory
Committee (M /WBE AC) tasked to develop proposed Ordinance revisions
• The City engaged outside legal counsel to provide study oversight and consultation
for Ordinance revision process
• William Giron, Co -Chair
• Veronica Chavez Law, Co -Chair
• David Berzina
• Christina Chapman
• Sundra Davis
• Dennis Duncan
• Ramon Guajardo
• Linda Labeau
• Glenda Thompson
Mr. Johnson provided background on the M /WBE Ordinance as follows:
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 28 of 36
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance (cont'd) (Agenda Item 9)
• State and local governments are required to validate a statistically significant
underutilization of minority and/or women -owned business before establishing an
M /WBE Goals -Based Program.
• The courts considered Availability and Disparity Studies to be an acceptable method
to validate underutilization and identify remedies.
• The City of Fort Worth's existing MWBE Ordinance was adopted and became
effective June 2003.
• Applicability
— The purchase of goods and services by the City (contracts and subcontracts)
— Does not apply to the City's Economic Incentive Policy (negotiated
agreements)
• The Council of Governments hired Mason Tillman Associates, Ltd. in 2008 to
conduct a study update on behalf of the City of Fort Worth, Fort Worth Independent
School District, The T, City of Arlington, Dallas /Fort Worth International Airport and
North Texas Tollway Authority.
Mr. Johnson reviewed the prime contractor disparity findings under $500,000 and
subcontractor disparity findings provided by the study performed by Mason Tillman Associates,
Ltd. Mr. Johnson advised that the relevant market area findings under the existing Ordinance
was a nine county area and that the City of Fort Worth's relevant market area (80% of the City's
spending) was Tarrant and Dallas counties.
Mr. Johnson presented the M /WBE Advisory Committee recommendations for the
proposed Ordinance changes as follows:
1. Ordinance name
a. Existing: M /WBE Ordinance
b. M /WBE AC Recommendation: Business Diversity Ordinance
2. Market area — Number of counties (Geographic area where a municipality
spends 80% of its dollars)
a. Existing: Tarrant, Dallas, Collin, Denton, Ellis, Johnson, Kaufrnan,
Parker and Rockwall
b. M/WBE AC Recommendation: Tarrant and Dallas
3. Market area — Firm eligibility
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 29 of 36
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance (cont'd) (Agenda Item 9)
a. Existing: All firms currently doing business in the market area at the
time of bid/proposal count towards goal.
b. M /WBE AC Recommendation: Only firms with an office in the
market area will be counted towards goal.
4. Good faith effort (Steps that a prime must prove that it took if goal is not met)
a. Existing:
• If more than 10 M /WBEs in a subcontracting area, only 2/3 rd of the
list must be solicited.
• Requires two of three methods: mail, phone call or fax.
b. M /WBE AC Recommendation:
• Email added as an acceptable bid solicitation method.
• Due to reduced market area, 100% of MBE list must be solicited
for each subcontracting area.
5. Procurements less than $50,000
a. Existing: Encourage use of M /WBEs and develop procedures, as
needed, to emphasize the use of M /WBEs
b. M /WBE AC Recommendation: Adopt specific departmental
procedures to emphasize the use of M /WBEs
6. Goal setting threshold
a. Existing: $25,000
b. M /WBE AC Recommendation: $50,000
7. Joint ventures
a. Existing: Encourages the use of joint ventures and counts participation
towards goal.
b. M /WBE AC Recommendation: Adds evaluation preference points
when a respondent is a joint venture with at least one qualified
M /WBE joint venture partner.
8. Prime program
a. Existing: None
b. M /WBE AC Recommendation:
• For solicitation of construction, architectural & engineering and
other professional services less than $150,000, allocate up to 20%
of weighted selection criteria for minority and /or woman -owned
businesses.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 30 of 36
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance (cont'd) (Agenda Item 9)
• M /WBE prime cannot subcontract more than 49% to non - MWWBE
firms.
9. Small Business Enterprise Program
a. Existing: None
b. M /WBE AC Recommendation:
• The City may establish SBE subcontracting goals for firms
meeting the US Small Business Administration's (SBA's)
standards.
• Overall goal of 15% for SBE.
10. Overall goals
a. Existing: 25%
b. M /WBE AC Recommendation: Based on the results of the City's
availability and disparity study, race - conscious goals can only be
applied in two categories:
• Construction (MBE) — all categories = 25%
• Professional Serv. — African American = 15%
c. The City will monitor the utilization of women and minority -owned
firms in the areas where subcontracting goals are no longer applied.
d. If the trend reflects a significant underutilization, then the City will
investigate potential adjustments to the New Ordinance that are legally
permissible, specifically the re- establishment of race and gender
specific subcontracting goals in the affected areas.
Mr. Johnson advised that while the process was not completed, they intended to involve
all of their stakeholders to get their feedback and then the final proposed document would be
brought back to the committee. He concluded his presentation.
Chairman Jordan opened the floor for questions and /or comments.
Committee Member Hicks indicated that she was proud of how far the City had come
with MWBE in the City. She pointed out that long before the sitting Council there were people
in the City back in the 1980's and 1990's working to address this issue. She added that she felt
the City of Fort Worth had been the model for other entities. She expressed her dismay with the
fact that the City of Arlington had no MWBE policy and was probably the largest city in the
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 31 of 36
Presentation of MWBE Advisory
Committee's Preliminary Recommendation
of Changes to MWBE Ordinance (cont'd) (Agenda Item 9)
nation that did not have that policy. Committee Member Hicks indicated that she wanted to
applaud those that came before her for the work that they had accomplished in this regard.
Chairman Jordan expressed appreciation to Mr. Johnson and his committee on their work
in this endeavor. He indicated that they would look forward to the recommendations after the
public process had been completed. Chairman Jordan pointed out that the City had maintained
diversity and not discriminatory practices through the competitive process. He added that it was
important that the City was also getting competitive contracting rules.
Committee Member Moncrief recognized members of the committee that were attending
the meeting and expressed appreciation to them for their work.
This completed the presentation and discussion on this agenda item.
Presentation on Economic Development
Program Ap-reement with KXAS (Agenda Item 10)
Robert Sturns, Manager, Housing and Economic Development Department, took the
opportunity to recognize individuals Tom Ehlmann, President and General Manager, and Brian
Hocker from KXAS that were in the audience.
Mr. Sturns spoke before the committee on the history of KXAS, which began on
Broadcast Hill as WBAP -TV, the first television station in the Southwest. He advised that the
existing location of KXAS/NBC 5 located at 3900 Barnett posed challenges due to age and
location. He explained that KXAS/NBC 5 wanted to find a centralized location that would
consolidate their Dallas and Fort Worth operations. He added that they were looking at sites in
Fort Worth and Irving. He explained that KXAS/NBC 5 had come to the City and requested an
incentive on the new Centreport location. He added that the City wanted to retain KXAS in Fort
Worth and thus structure the agreement to do so.
Using three (3) aerial photographs, he reviewed the existing facility location in Fort
Worth. He advised that it was near I1-130, and consisted of 26 acres. He stated that the existing
building was about 80,000 square feet, including basement space that was not usable. He
pointed out that there were several satellite dishes on the site, as well as three (3) transmission
towers. Mr. Sturns pointed out the location of another tower that was near the site that was not
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 32 of 36
Presentation on Economic Development
Program Agreement with KXAS (cont'd) (Agenda Item 10)
owned by KXAS and was not part of this agreement. Mr. Sturns then presented an aerial
photograph and reviewed the new site location in the Centreport facility. The new location was
adjacent to Amon Carter Boulevard off of Highway 183. He added that it was an eight (8) acre
site. He pointed out that they were going to consolidate 11 business units at the new location.
The studios of KXAS and Telemundo would also be there, as well as the entire NBS News
Bureau.
Mr. Sturns reviewed the agreement terms as follows:
■ Incentive request consisting of a 1 year tax abatement and 24 year Chapter
380 Economic Development Program Agreement (EDPA)
■ Agreement would abate /refund 85% of real and personal property taxes
for 25 years for the retention of KXAS/NBC 5 in Fort Worth and the
consolidation of studio operations.
Mr. Sturns then reviewed KXAS/NBC 5 commitments as follows:
• Total investment of $16M ($8M real property and $8M personal property)
• Spend 25% of all hard construction costs with Fort Worth companies
• Spend 25% of the construction costs with Fort Worth M /WBE companies (with the
understanding that dollars spent with Certified Fort Worth M/WBE companies will also
count as dollars spent with Fort Worth companies)
• Facility will achieve a minimum LEED Certified status
• Facility would be branded as a Dallas -Fort Worth station.
• Retention of 200 full -time employees and the re- location of 78 employees
• KXAS will convey the 26 -acre property to the City or an entity designated by the City,
exclusive of mineral interest, upon vacating the site.
• KXAS will continue to operate at current site until its new studios and offices were
completed on or before December 31, 2013.
Mr. Sturns then reviewed the proposed incentive terms as follows:
Company Commitment Grant Percentage
Real & Personal Property Investment 40%
FW Construction 20%
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 33 of 36
Presentation on Economic Development
Program Agreement with KXAS (cont'd)
FW M/WBE Construction
Overall Employment
(Agenda Item 10)
5%
20%
He explained that failure to meet investment deadlines results in default. He added also
failure to meet a commitment would result in a reduction of the corresponding component of the
grant for that year proportional to the amount the commitment was not met.
Mr. Sturns reviewed the land considerations as follows:
• City ownership of site allowed control of future land use
• Site was currently zoned A10 —Single family development
• Potential partnership to develop single - family homes
• Work with neighborhood to establish highest and best use
• City does not take possession of land until December 2013
o No incentives unless land was conveyed
• Recent appraisal completed
• Tarrant Appraisal District 2010 appraisal of $2,125,655
• Property value up to $1,000,000 (land only)
• Recent Environmental Phase I has been completed
• Existing towers on site
o AT &T ground lease runs through October 2024
Mr. Sturns reviewed the development summary as follows:
• Private Investment
o $16.0 M real and personal property
• Employment
o Maintain 200 FTE and relocate additional 78 FTE
• Est. Maximum Public Investment $2.5 million (Net Present Value of $1.3
million)
• City receives land for future redevelopment opportunity
• Ratio (Private /Public) with land value 16:1
o Percent City Participation 6.25%
Mr. Sturns reviewed the next steps as follows:
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 34 of 36
Presentation on Economic Development
Program Agreement with KXAS (cont'd) (Agenda Item 10)
• Public Hearing on Reinvestment Zone June 14`h
• Consideration of Tax Abatement & Chapter 380 June 14ch
Mr. Sturns completed his presentation.
Chairman Jordan opened the floor for comments and /or questions.
Committee Member Moncrief stated that if everyone looked at the long term investment,
the 16:1 ration was an excellent investment. He stated that he could not over emphasize how
strongly the City Council felt about holding the branding issue to a hard and firm rule. He added
he was not sure how that was going to be buttoned down in the agreement language. He stated
that he would like to see what that final product would look like. He pointed out that people's
intentions were fine; however, people changed and leadership changed as well, but this issue
needed to be very clear. He stated that citizens of Fort Worth wer proud of the City and the City
did not mind sharing the brand with Dallas. He repeated that it needed to be both of the cities in
the brand and not one preferenced over the other. He also requested clarification on the tower
that would have to remain on the property until 2024. Mr. Sturns indicated that it was the
Vanguard Wireless Tower and it would have to stay there until 2024. Mr. Sturns pointed out one
of the towers was empty and could come down. He advised that there was a lease on the STL
Tower; however, it was subject to removal whenever the owner decided to do so. Committee
Member Moncrief clarified with Mr. Sturns that any development whether it was to be
residential or other development could not occur until the lease was completed on that tower.
Mr. Sturns indicated that was correct and pointed out another tower location that was not on the
KXAS property and not part of the agreement. Committee Member Moncrief discussed with Mr.
Sturns the heights of the towers. Mr. Sturns stated that one of the towers was 250 feet; one was
800 feet and the two towers closet to the building were about 350 feet in height.
Council Member Hicks pointed out that this location was in the Council district that she
represented and she wanted to express several concerns that she had. She spoke about the work
that had been done for the Council- initiated rezoning that had been done in this area. She felt
that this provided some level of protection for the neighborhood in this area. She expressed
appreciation to the City staff for working with KXAS regarding this property and gaining control
in order to determine what would occur on the property. She expressed appreciation for Mr.
Sturns going with her to visit with the West Meadowbrook Neighborhood Association.
Committee Member Hicks referenced the east portion of Fort Worth that was included in her
City Council District, along with Council Members Scarth and Moss's districts, that she pointed
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 35 of 36
Presentation on Economic Development
Program Agreement with KXAS (cont'd) (Agenda Item 10)
out that it was demoralizing that over the past years they had lost so many businesses along east
Lancaster and other areas. She encouraged the City staff to continue to work on bringing in
economic development. She talked about the work that had been done for the older Ranch Style
Beans building. She pointed out that while there had been a lot of development all over the City
there just had not been any development in that area. She talked about her concern that
development needed to be brought to this area or citizens were going to be moving out of that
area.
Committee Member Burdette indicated that he also felt economic development was
important to the area. He added he felt that they were looking at two goals; one was to keep the
station in the City of Fort Worth. He stated that the other goal was to make sure the City got
control over the subject property and was able to determine what development would be placed
on the property. He added that he felt another development would be a better attribute than what
exists there at the present time. He pointed out that this was a good piece of land. Committee
Member Burdette questioned whether the City was offering enough incentive on this project. He
pointed out that he felt that the incentive package for the new location would probably be weight
against whatever development eventually goes onto the existing property. He added that he
hoped that the City was offering an incentive that they could not refuse.
Mr. Sturns spoke briefly to the terms of the agreement and the branding issue and he
indicated that he felt all parties were comfortable with what had been reached.
Chairman Jordan expressed the City Council's pride with the history of KXAS in the City
of Fort Worth. He added that the City was a regional thinker and regional player. He added that
of course they always thought Fort Worth/Dallas. Chairman Jordan recognized Mr. Ehlmann to
provide for some comments. Mr. Tom Ehlmann, President and General Manager of KXAS,
indicated that they were a Fort Worth television station and a Fort Worth business. He stated
that they had been community partners with Fort Worth for 64 years. He pointed out that their
television market had grown to 7 million people and it had become more difficult to cover the
24,000 square mile area. He pointed out that a centralized location was very important to them in
order for them to stay here another 64 years. He added that they were committed to that and
their goal had always been to stay in Fort Worth.
The presentation and discussion on this agenda item was concluded.
CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
JUNE 7, 2011
Page 36 of 36
Request for Future Agenda Items (Agenda Item 11)
Chairman Jordan opened the floor for requests for future agenda items. Chairman Jordan
reiterated the request for a presentation on the City's incentive programs for a future meeting.
Date of Next Regular Meeting —
August 2, 2011
(Agenda Item 12)
Chairman Jordan advised that the next regular meeting of the Housing and Economic
Development Committee would be held on Tuesday, August 2, 2011.
Adiourn
(Agenda Item 13)
With no further presentations or discussions, Chairman Jordan adjourned the regular
meeting of the Housing and Economic Development Committee at 3:04 p.m., on Tuesday, June7,
2011.
These minutes approved by the Housing and Economic Development Committee on the
4th day of October, 2011.
APPROVED:
Minutes Prepared by and Attest:
Marty Hendrix, City Secretary