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HomeMy WebLinkAbout2011/11/01-Minutes-HEDCCITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Present: Committee Member Joel Burns, Chairman Committee Kathleen Hicks, Vice Chair Committee Member Betsy Price (Arrived at 1:35 p.m.) Committee Member Salvador Espino (Arrived at 1:05 p.m.) Committee Member W. B. "Zim" Zimmerman Committee Member Danny Scarth Committee Member Jungus Jordan Committee Member Dennis Shingleton Absent: Committee Member Frank Moss City Staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Ron 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 Sonia Singleton, Interim Assistant Director, Parks & Community Services 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 Richard Zavala, Director of Parks and Community Services Department Mark Folden, Business Development Coordinator, Housing and Economic Development Dept. Robin Bentley, Community Development Manager, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Economic Development Department Otis Thornton, Homeless Program Coordinator, Housing & Economic Development Department Pat Scavina, Contractor,City Manager's Office Guests: Bishop Kevin Vann, Vice Chancellor for Administration, Catholic Diocese of Fort Worth Peter Flynn, Finance Director, Catholic Diocese of Fort Worth CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 2 of 23 With a quorum of the committee members present, Chairman Joel Burns called the meeting of the Housing and Economic Committee to order at 1:04 p.m., on Tuesday, November 1, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas 76102, with Committee Members Betsy Price and Salvador Espino temporarily absent and Committee Member Frank Moss absent. Approval of Minutes from October 4, 2011, Housing and Economic Development Committee (Agenda Item 2) MOTION: Upon a motion made by Committee Member Jordan and seconded by Committee Member Hicks, the Committee Members voted six (6) "ayes" and zero (0) "nays ", with Committee Members Price, Espino and Moss absent, to approve the minutes of the October 4, 2011, Housing and Economic Development Committee Meeting. The motion carried unanimously. Chairman Burns advised that Agenda Item 3 pertaining to the update from the Catholic Diocese would need to be delayed until later on the agenda as Bishop Vann had not arrived at the meeting. He stated that he would move Agenda Item 5 regarding the Economic Development Agreement with Bell Helicopter up on the agenda to be considered at this time. Presentation on Economic Development Program Agreement with Bell Helicopter (Agenda Item 5) (Committee Member Espino arrived at the meeting.) Jay Chapa, Director, Housing and Economic Development Department, addressed the Committee regarding the proposed agreement. He stated that the proposal was an effort to consolidate and upgrade the facilities on State Highway 10. He recognized the following individuals in the audience who had worked with the Housing and Economic Development Department staff on the proposed agreement: Bob Hastings (Bell Helicopter), Todd Burnette (JLL), Steve Lair, Mike Concupp and Brian Chase. Using a PowerPoint presentation, Mr. Chapa began with providing information on the background of the company as follows: • Founded in 1935. • Headquartered in Fort Worth, Texas. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 3 of 23 Presentation on Economic Development Program Agreement with Bell Helicopter (cont'd) (Agenda Item 5) • Additional plants in Amarillo, TX and Mirabel, Canada. • Maintain key logistics supply and service centers in Europe, Canada and Singapore as well as the USA. Mr. Chapa's next slide reflected three pictures of commercial and military helicopters that the company currently produced. He transitioned to the next slide which provided an explanation of the proposed project as reflected below: • Expansion/consolidation of current Fort Worth facilities at the main headquarters operation located south of Highway 10 and north of Trinity Boulevard and at CentrePort distribution facility. • Project consists of a new headquarters facility, employee center and training academy at the headquarters site. • This project will be constructed in four (4) phases. • Effort is to improve efficiencies that will allow Bell to stay competitive in the long term. Mr. Chapa transitioned to his next slide which was a map that depicted the locations of Bell Helicopter facilities in Tarrant County. He explained that the facilities in the blue boxes were two (2) facilities (Plant 8A and Plant J) located in Fort Worth and one (1) facility (Plant 8B) in Roanoke. He added that the proposal was to consolidate those locations into the two (2) areas indicated by the red boxes that were located in Fort Worth with a small amount going to Plant 5 in Grand Prairie. He pointed out that the majority of the consolidation would be at the headquarters site. He then provided the following information pertaining to the development commitments of the proposed agreement: • Investment • Minimum investment of $235M by December 31, 2015. • Fort Worth Construction — Minimum of 30 %. • Fort Worth M /WBE Construction — Minimum of 25 %. • Jobs o Retain 4,500 FTE from December 31, 2014, through December 31, 2020. 0 4,100 FTE by December 31, 2022. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 4 of 23 Presentation on Economic Development Program Agreement with Bell Helicopter (cont'd) (Agenda Item 5) 0 3,900 FTE by December 31, 2028. o Maintain 20% of FTE with Fort Worth residents. o Maintain 5% of FTE with Central City residents. • Supply & Service • Fort Worth contractors —minimum of $1,000,000.00. • Fort Worth M /WBE contractors — minimum of $500,000.00. Mr. Chapa provided an explanation of the $235M investment by advising the Committee on the development commitments by phase as follows: • Phase I -- $5M o Construction of a new employee center by December 31, 2012. • Phase II -- $5M • Relocation, consolidation and renovation for the repair and overhaul activities as well as relocation of inventory to the central distribution center at CentrePort by December 31, 2013. • If the additional new investment is not met, the program grants will be reduced by 15% for the remainder of the agreement. • Phase III -- $50M • Construction of a new main headquarters and administration building and associated infrastructure at Highway 10 and Bell Spur by December 31, 2014. • If the additional new investment is not met, the program grants will be reduced to a maximum of 50% for the remainder of the agreement. • Phase IV -- $15M • Construction of a new training academy at Norwood Drive and Trinity Boulevard by December 31, 2015. • If the additional new investment is not met, the program grants will be reduced by 5% for the remainder of the agreement. • $160 million in personal property to be invested by December 31, 2015. Mr. Chapa then displayed a slide that reflected the existing configuration for Plants 1 and 2 at the headquarters site. He made reference to the location of the plants in relation to State Highway 10, the Trinity Railway Express line and Trinity Boulevard on the south end. He noted that Bell nomenclature for the specific buildings was indicated by numbers 1, 2, 3, etc. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 5 of 23 Presentation on Economic Development Program Agreement with Bell Helicopter (cont'd) (Agenda Item 5) His next slide depicted the proposed site plan for Plants 1 and 2 and he explained that the blue area indicated new construction and the yellow area indicated where rehabilitation and update of buildings would occur. He pointed out that the breakout of $70 million in new construction fell in the blue and yellow areas, advised that certain buildings would be demolished and explained where the training academy and the new landing strip were located. As a point of reference he explained where Norwood and Bell Spur were located on the site plan. Mr. Chapa's next slide reflected renderings of the consolidated campus administration building followed by a slide with renderings of the training academy. He then showed an aerial view of the location that reflected a red box indicating where the training academy would be located. He explained that Norwood, indicated by a black box, was originally a County road in Fort Worth and that staff was working with Bell Helicopter to try and improve the roadway as there would be a significant amount of traffic created by all the employees being located at this area. Mr. Chapa then presented information relative to the staff's recommended economic development incentive as follows: • City enters into a one (1) year tax abatement (to allow the County to participate) and 19 -year, Chapter 380 Economic Development Program Agreement to abate /refund up to 80% on incremental ad valorem taxes created within Fort Worth above current Bell taxes base. • Waiver of development fees associated with the project. • Enter into an Enhanced Community Facilities Agreement of up to $1.0 million for the road improvements on South Norwood Street. Mr. Chapa explained information on the next slide which depicted a table regarding the proposed incentive terms for this project as indicated below: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 6 of 23 Presentation on Economic Development Program Agreement with Bell Helicopter (cont'd) (Agenda Item 5) Company Commitment Potential Abatement Real and Personal Property Investment 30% Fort Worth Contractors 10% Fort Worth M /WBE Contractors 5% Overall Employment 5% Employment of Fort Worth Residents 10% Employment of Fort Worth Central City Residents 10% Utilization of Fort Worth Companies for Services and Supplies 5% Utilization of Fort Worth M /WBE Companies for Supplies and Services 5% TOTAL 80% • Failure to meet investment deadline for Phase I results in default and termination of agreement and other phases have reduction of abatement /grant. • Failure to meet a commitment will result in a reduction of the corresponding component of the grant for that year proportional to the amount the commitment was not met. Mr. Chapa completed his presentation of the proposed project with the below development summary: • Private Investment o Minimum of $235M in real and personal property. • Employment o 4,500 by December 31, 2020. • Public Investment for abatement and 380 grant capped at 10:1 ratio private investment to public investment. • Estimated Benefit $13,500,000.00. • Estimated Ratio 16:1. • Norwood Infrastructure ECFA: $1,000,000.00. • CFW Tax Revenue (20 year projection) • Estmated New RP & BPP $ 3,375,000.00 • Existing RP & BPP $43,325,000.00 • Total Revenue $46,690,000.00 CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 7 of 23 Presentation on Economic Development Program Agreement with Bell Helicopter (cont'd) (Agenda Item 5) Chairman Burns opened the floor for questions and /or comments. Chairman Burns referred to the previous slide pertaining to the recommended economic development incentive for the Norwood commitment which indicated that the Committee was limited to a $1 million investment for the master thoroughfare plan (MTP) which was a $4M potential and asked who made the final determination on what would be built there. Mr. Chapa clarified that the staff would be working with the Transportation and Public Works Department and Bell's engineers. He added that Bell currently had a traffic study going on for the potential impact on Norwood going forward and that the MTP called for it to be four (4) lane concrete curb and gutter roadway that was estimated at $4M. He stated that an evaluation was underway to determine if the work could be done in phases, for instance building just two (2) lanes with curb and gutter to provide access and turn lanes for Bell employees and then later be built out with the additional lanes in a later phase. He pointed out that the agreement was that the City would provide up to $1M towards that cost for the project and if Bell determined at a later time that they needed all four lanes, they would bring additional money to the table to fund the additional lanes. He added that the County was also considering participating in some portion of that cost. Mr. Chapa emphasized that the Enhanced Community Facilities Agreement would be separate from this agreement. Committee Member Shingleton stated that this was a great anchor for the City and expressed appreciation for the efforts of Bell and City staff on this project. There was no further presentation or discussion on this agenda item. Chairman Burns advised that Bishop Vann had arrived at the meeting and Agenda Item 3 regarding the presentation on the update on development activities of the Catholic Diocese would be heard at this time. Update on Catholic Diocese of Fort Worth Development Activities (Agenda Item 3) Bishop Kevin Vann, Catholic Diocese of Fort Worth, stated that he was glad to be before the Council again and provided opening remarks pertaining to the purpose of the presentation. He provided background information on the diocese's involvement with development in the City and in the surrounding counties. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 8 of 23 Update on Catholic Diocese of Fort Worth Development Activities (cont'd) (Agenda Item 3) Mr. Peter Flynn, Vice Chancellor for Administration and Finance Director, Catholic Diocese of Fort Worth, provided a PowerPoint presentation entitled "Building on 40 Years of Tradition to Meet Tomorrow's Growth ". His first slide entitled "Established in 1969" contained the following information: • 28 Counties of North Texas. o 24,000 square miles. • 65 Parishes in 1969 — 67,000 Catholics. 0 89 Parishes in 201 1 —710,000 Catholics 0 20 Schools in 2011 — 6,000 Students Mr. Flynn then showed a series of slides that reflected the expansion of the diocese over the last 10 years at a total cost of $75.5 million. The expansion encompassed facility relocations, new locations, new buildings, restoration or renovations of existing facilities and replacements, as reflected below: • Relocation and Expansion of Center City Parishes - $11.5 Million • Our Lady of Guadalupe Parish - $3.5 Million • Our Lady of Fatima Parish - $400,000.00 • Immaculate Heart of Mary Parish - $4.1 Million • Holy Name Parish - $3.5 Million • Investment in Center City Catholic Schools - $9.3 Million • Our Mother of Mercy School - $2.6 Million • All Saints School - $4.1 Million • St. George School - $1.6 Million • Cassata High School - $1 Million • St. Patrick Cathedral - $13.5 Million o Exterior Preservation • Interior Renovation • Rectory Restoration • New Parish Hall Construction • New Construction Projects - $26.65 Million • Nolan Catholic High School - $10 Million • Catholic Charities - $14 Million • All Saints Parish Hall - $2.5 Million • Holy Name Parish Rectory - $150,000.00 CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 9 of 23 Update on Catholic Diocese of Fort Worth Development Activities (cont'd) • New Construction Projects - $12.15 Million • St. Bartholomew Parish Center - $5 Million • Christ the King Parish Hall - $2.5 Million • Immaculate Heart of Mary Parish Center - $4.4 Million • All Saints Parish, San Jose Center - $250,000.00 (Committee Member Jordan left his place at the table.) • Renovation Projects - $3.4 Million • St. Andrew Parish Hall - $2 Million • Our Mother of Mercy Church - $350,000.00 • Respect of Life Office - $150,000.00 • St. Rita Parish Church - $900,000.00 (Agenda Item 3) Mr. Flynn advised that over the next 10 years, the diocese was planning on further expansions at a total projected cost of $50 million. He added this would encompass new parishes, larger churches and expansion of parish facilities. He continued with his presentation by summarizing his next slide pertaining to future growth as follows: • Recent diocesan study projects more than 1.2 million Catholics by 2030. • Growth will occur in six (6) county urbanized areas around Tarrant and Denton Counties. • One of the fastest growing dioceses — similar to the Fort Worth metropolitan area growth. • Study calls for up to 14 additional parishes in next 18 years. (Committee Member Price arrived at the meeting.) He next briefed the Committee on the new Chancery office as reflected below: • Present facility is inadequate for the growing reality of the diocese. • Return to downtown has been a goal. • Opportunity to bring together Central Administrative Office and Cathedral as visible statement to City. • Need new dedicated Archive Facility. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 10 of 23 Update on Catholic Diocese of Fort Worth Development Activities (cont'd) (Agenda Item 3) Mr. Flynn continued with his presentation by showing a slide containing an aerial view of the properties that were part of the Lancaster Mixed Use Project. He made reference to the location of St. Patrick's Cathedral in relation to the project and the considerations proposed for the diocese in exchange for the City's acquiring the parking lot owned by the diocese for a future parking garage for the development. He explained elements of the project in relation to the diocese as follows: • Three stories for Central Administrative Office. • Top Three Floors. • 37,500 Square Feet. • 1/3 bigger than the present Catholic Center. • 100 parking spots for employees and visitors. • 100 parking spots for St. Patrick's Cathedral. • Using Cathedral land for parking garage. His next two slides showed a rendering of the proposed building where the Central Administrative Office would be located and a rendering of the proposed design for the parking garage. He then outlined the projected costs of the new building as reflected below: • Parking 200 Spots - $ 1,900.000.00 • Three Floors - $ 9,000,000.00 • Archive Facility - $ 750,000.00 • Total Estimated Cost - $11,650,000.00 Mr. Flynn then displayed an aerial view of property recently acquired for the needed expansion of Nolan Catholic High School before transitioning to his next slide pertaining to the projects underway for the next 12 months as follows: • Christ the King Parish Church Expansion - $1 Million • Holy Family Parish New Rectory - $350,000.00 • Immaculate Heart of Mary Parish New Rectory - $280,000.00 • San Mateo Mission Parish Center - $1 Million • St. Peter the Apostle School Renovations - $ 1 Million CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 11 of 23 Update on Catholic Diocese of Fort Worth Development Activities (cont'd) (Agenda Item 3) Mr. Flynn concluded his presentation by briefing the Committee on the diocese's plan for the future relative to pending projects as reflected below: • Our Mother of Mercy School Playground on former property of Mrs. Peace. • St. Mary of the Assumption Parish, New Parish Hall. • St. Thomas the Apostle Parish, Relocation from Azle Avenue to larger site in Marine Creek area. • Ministry Formation Center. • New Land Acquisition for New Parish Sites. Chairman Burns opened the floor for questions and /or comments. Committee Member Scarth stated that there was not one part of the City that had not been touched by what the diocese was doing. He added that on the east side they were proud to have Nolan Catholic High School which was one of the leading private schools in the county. He pointed out that they had looked for a number of years for an appropriate use for the vacant property and the surrounding community was thrilled that the property would be used for the school. He stated that the growth at Christ the King had previously created issues regarding parking but that a neighborhood meeting hosted by the church addressed those concerns. Committee Member Espino stated that the expansion in the last 10 years was a significant investment and that diocese was a great partner to the City. He added that the investment added to several communities and enhanced the education in the parochial schools. He further stated that there was growth in the center city and growth in the growth areas. He asked what the projections were for the far north Fort Worth area such as St. Elizabeth Ann Seaton in Keller, St. Thomas the Apostle in Azle and the potential for a new high school in the area. Bishop Vann responded by stating that the diocese engaged a firm several years ago and the projection for the parishes reflected in the PowerPoint came from that firm. He added that they had been working with Father Hart at St. Elizabeth Ann Seaton to develop a whole plan that included a new high school for the area and another parish north of that location. Mr. Flynn also advised that the diocese did own property on IH 170 and Alta Vista which was a facility that had been identified as the next parish to open in future. He added that the diocese also owned 60 acres in the Heritage area. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 12 of 23 Update on Catholic Diocese of Fort Worth Development Activities (cont'd) (Agenda Item 3) (Committee Member Jordan returned to his place at the table.) Chairman Burns commended the diocese for return to the Downtown area and added that it would add to the vibrancy of the area. He expressed appreciation for the diocese's stewardship of the restoration of the existing building downtown. He pointed out that he made a request to the City to rename the street leading to the Catholic Charities building "Charities Way ". He added that he would ensure the diocese was informed of any celebration regarding the issue. Committee Member Price inquired about the number of people in the diocese. Bishop Vann responded that there approximately 710,000 Catholics, which was in par with East Coast and Midwest dioceses. The presentation and discussion was concluded on this agenda item. (Committee Member Espino left his place at the table.) Update on Economic Development Program with GE Transportation (Agenda Item 4) Mr. Robert Sturns, Economic Development Manager, Housing and Economic Development Department, began his presentation by reminding the Committee that in May 2011 when this project was brought before the committee for approval there was a strong possibility that GE would look at additional investment at this site as there was some vacant land under consideration next to their site and they were looking at available options. He added the decision to expand came sooner than expected which was the purpose of today's update. Using a PowerPoint presentation, Mr. Sturns provided the following information about GE Transportation: • Global technology leader and supplier to the railroad, marine, drilling, wind and mining industries. • ISO -9001 certified company. • +$3.5 billion in sales. • Transportation division headquartered in Erie, PA. • Employs — 8,000 worldwide. (Committee Member Jordan left his place at the table.) CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 13 of 23 Update on Economic Development Program with GE Transportation (cont'd) (Agenda Item 4) • Products: Freight, passenger locomotives, railway signaling, communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high- quality replacement parts, value -added services. He then displayed an aerial view of the location that reflected a red box of the site at 12850 Three Wide Drive which included the vacant land. He then displayed a closer aerial view of the location and explained that the existing IDI distribution center indicated by a blue box would be converted into a 900,000 square foot manufacturing facility. He advised that the area in the red box was the vacant land to the north which had already been purchased by the company. Mr. Sturns transitioned to the next slide regarding Phase I of the project and summarized the project as follows: • Expansion of existing 670,000 square foot distribution center — 900,000 square foot manufacturing facility. • At least $20M in real property improvements. • At least $40M in non - inventory personal property improvements. • Deadline: December 31, 2012 (Committee Member Espino returned to his place at the table.) He then provided information pertaining to the Evolution® Series Locomotive as reflected below: • Most technologically advanced, diesel - electric, heavy -haul locomotive in the world today. • 12- cylinde engine produces the same horsepower as its 16- cylinder predecessor. • Less fuel, emissions than previous models. • Meets EPA Tier 2 emissions requirements. • 4,100 operating in 10 countries. Mr. Sturns transitioned to his next slide and presented a summary on Phase II of the project as follows: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 14 of 23 Update on Economic Development Program with GE Transportation (cont'd) (Agenda Item 4) • Construction of new 236,000 square foot mining equipment plant on vacant land adjacent to existing distribution center. • At least $20M in real property improvements. • At least $30M in non - inventory personal property improvements. • Deadline: December 31, 2012 (Same as Phase I) He then presented a slide that provided information on the mining product line, specifically, Off Highway Vehicle Trucks and Fort Worth Facility Workscope. He then advised of the following company goals: • Investment • Minimum total investment of $110M ($40M RP & $70M BPP) • Spend greater of $10M or 25% of construction costs with Fort Worth companies. • Spend greater of $ l0M or 25% of construction costs with Fort Worth M /WBE companies. • Jobs • Minimum of 420 full -time employees (FTE) by December 31, 2012. • Minimum of 500 full -time employees (FTE) by December 31, 2013. • Up to 875 FTE by December 31, 2016. • 30% of FTE with Fort Worth residents. • 10% of FTE with Central City residents. • Supply & Service 0 30% or $400,000.00 with Fort Worth contractors. 0 10% or $130,000.00 with Fort Worth M /WBE contractors. Mr. Sturns then provided an explanation of the City's commitments as reflected in the following table: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 15 of 23 Update on Economic Development Program with GE Transportation (cont'd) (Agenda Item 4) City Commitment Potential Abatement Real and Personal Property Investment 35% Fort Worth Contractors 5% Fort Worth M /WBE Contractors 5% Overall Employment 15% Fort Worth Employees 10% Central City Employees 5% Utilization of Fort Worth Companies for Services and Supplies 5% Utilization of Fort Worth M /WBEs for Supplies and Services 5% TOTAL 85% Mr. Sturns provided the following development summary: Original Proposal • Private Investment - Minimum of $60.OM real and personal property • Employment - Up to 775 by December 31, 2016 • Public Investment $3.3M • Ratio (Private /Public) 18:1 - City Participation 5.5% - Est. New Tax Rev. $580,000 New Proposal • Private Investment - Minimum of $110.OM real and personal property • Employment - Up to 875 by December 31, 2016 • Public Investment $5.4M • Ratio (Private /Public) 20:1 - City Participation 4.9% - Est. New Tax Rev. $950,000 Mr. Sturns completed his presentation with the following staff recommendation: • Enter into a 10 -year tax abatement agreement with GE Transportation that could potentially abate up to 85% of the City's incremental taxes generated from real property improvements and business personal property investment at the site of new manufacturing and mining facilities. • Waive fees associated with the project. (Committee Member Jordan returned to his place at the table.) CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 16 of 23 Update on Economic Development Program with GE Transportation (cont'd) Chairman Burns opened the floor for questions and /or comments. There was no further presentation or discussion on this agenda item. Update on the Energy Assistance and Weatherization Assistance Programs (Agenda Item 4) (Agenda Item 6) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, began her briefing by advising the Committee that the energy assistance program portion of the briefing would be provided by Sonia Singleton, Interim Assistant Director, Parks & Community Services Department. She added there were some questions about the Weatherization Assistance Program at the last meeting and this briefing would provide an update of the program over the last two (2) years. She provided the following information pertaining to the weatherization overview: • City receives annual funding (Regular WAP) and stimulus funding for the Weatherization Program (ARRA WAP). • Purpose: To reduce energy costs for low- income families by improving the energy efficiency of their homes. o Replace: • Leaking or non - compliance water heaters, gas stoves /ovens, gas space heaters due to high carbon monoxide readings. • Energy inefficient refrigerators and central air conditioning units/ wall units with an energy -star more efficient unit. • Install: • Compact fluorescent lights in all fixtures. • Insulation for walls, floors and attics. • Complete minor repairs to protect the weatherization improvements installed (i.e., siding repairs). Ms. Garcia then provided information relative to the current status of the programs as indicated below: • ARRA WAP o Complete 344 units by the end of the ARRA contract in March 2012. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 17 of 23 Update on the Energy Assistance and Weatherization Assistance Programs (cont'd) (Agenda Item 6) • Regular WAP • Annual contracts — various end dates. • Program transferred to Parks and Community Services Department on October 1, 2011. • Will complete 200 single family units by March 31, 2012. Ms. Garcia's next slide pertained to the WAP income eligibility breakdown as follows: Size of Annual Monthly Weekly Family Income Income Income 1 $21,660.00 $1,805.00 $417.00 2 $29,140.00 $2,428.00 $560.00 3 $36,620.00 $3,052.00 $704.00 4 $44,100.00 $3,675.00 $848.00 5 $51,580.00 $4,298.00 $992.00 6 $59,060.00 $4,921.00 $1,136.00 7 $66,540.00 $5,545.00 $1,280.00 8 $74,020.00 $6,168.00 $1,423.00 For families with more than eight (8) persons, add $7,480.00 for each additional person. Her next slide showed a table relative to funding information for the program as follows: Regular WAP ARRA WAP Department of Energy $ 353,795.00 (Maximum per house $6,500.00) DOE -Low Income Home Energy $1,207,513.00 Assistance Program (LIHEAP) (Maximum per house $4,000.00) Oncor $ 300,000.00 Texas Association of Community $ 500,000.00 Action Agency (TACAA) (Maximum per house $6,500.00) ARRA Funding $15,146,008.00 (Maximum per house $6,500.00) TOTAL $21361,308.00 $15,146,008.00 CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 18 of 23 Update on the Energy Assistance and Weatherization Assistance Programs (cont'd) (Agenda Item 6) Ms. Garcia then presented a slide with a table that contained information regarding the amount of units completed during 2010 -2011 as reflected below: Unit Type Regular WAP ARRA WAP Single Family 250 307 Multi - Family 0 1,759 TOTAL 250 2,066 It is anticipated that the City will complete 344 units by the end of the ARRA contract in March (304 multi family units and 40 single family units). She advised the Committee on the following information pertaining to the waiting list for weatherization services: • ARRA WAP o City closed single family list last year — all approved applicants will be completed by March 2012. • Regular WAP • City stopped approving applications in October 2010. ■ Currently approximately 110 on the waiting list. • List of approximately 2,300 waiting to apply for program. Housing and Economic Development Department will notify the 2,300 to contact Community Action Call Center to schedule an appointment to determine if they are eligible to apply for the program. Ms. Garcia then displayed a colored map that reflected the locations of weatherization services had occurred within Fort Worth city limits and within Tarrant County. She explained that the colored boxes as follows: - Gold Boxes: DOE -ARRA Single Family (Completed). - Pink Boxes: DOE -AARA Multi- Family (Completed). - Green Boxes: LIHEAP -TACAA Single - Family (Completed) CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 19 of 23 Update on the Energy Assistance and Weatherization Assistance Programs (cont'd) (Agenda Item 6) Ms. Garcia concluded her presentation by recognizing Mr. Joe Cordova, Manager of the program, and members of the weatherization staff and stated that they had done a wonderful job. She added that they had completed an incredible amount of units in a short amount of time and pointed out that the program was so successful that the State had asked City staff to take additional funds on two occasions She further stated that she and Mr. Cordova had attended a meeting in Austin last week and it was noted that Fort Worth had a model program. Mr. Richard Zavala, Director, Parks and Community Services (PALS) Department, stated that he wanted to take this opportunity to give the Committee the big picture on what they did in the PACS department. He asked that the Committee keep in mind the due diligence process PACS went through to qualify their clients as they did not have the type of resources to help as many people as they would like to so the process was very detailed to ensure that the dollars they received from the State helped as many people as possible. He pointed out that they did have safety net dollars because of contributions that had been received and that this program view would provide how the weatherization program fit into a PACS program to reveal that it was a very good way of doing business as it was very strategic. He introduced Ms. Sonia Singleton, Interim Assistant Director, Parks & Community Services Department Ms. Singleton advised that she would be provided information regarding the Community Action Partners (CAP) Program and the services they provided. Using a PowerPoint presentation, she began by stating the City of Fort Worth was designated as a Community Action Partner (CAP) in 1981 and provided the following additional information: • Serves as the Community Action Agency for Tarrant County. • Primary Funding Source • Community Services Block Grant* • Comprehensive Energy Assistance Program* *Texas Department of Housing and Community Affairs Her next slide pertained to PACS services as noted below: • Primary Services o Utility Payment Assistance (Texas Department of Housing and Community Affairs (TDHCA) : Comprehensive Energy Assistance Program (LEAP) CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 20 of 23 Update on the Energy Assistance and Weatherization Assistance Programs (cont'd) (Agenda Item 6) • Heating/Cooling Repair, Replace, or Retrofit (TDHCA:CEAP) • Water Bill Payment Assistance (CFW /Monarch Utilities) • Case Management: Families in Transition (TDHCA:CEAP) • Homeless Prevention (HUD:ESG) • Holiday Gifting Programs (CSBG, Donations & GF [lease]) • Cowboy Santas Program • Silver Stars • Special Youth Nutrition Programs • Summer Food (TDA) • Afterschool Snack (TDA) • Kids Cafe (Tarrant County Food Bank) Ms. Singleton then provided an explanation of her next slide which reflected information on the CAP service delivery structure for various areas in the City. She transitioned to the following slide that pertained to the Comprehensive Energy Assistance Program and advised that the program was comprised of four (4) components reflected below: • Energy Crisis — Assist households in danger of losing access to energy during cases of extreme weather. Energy Crisis assistance for one (1) household cannot exceed their allocation of up to $1,600.00 in one (1) year. • Elderly /Disabled — Eligible households may receive up to eight (8) payments depending on their energy priority rating. • Co- Payment — Provides up to six (6) months utility assistance along with case management services to achieve long -term energy self - sufficiency and financial independence by offering support to locate or maintain employment while enrolled in program. • Heating/Cooling — This component reduces the household's energy burden by reducing the energy demand from inefficient heating and cooling appliances (stoves are not eligible for replacement). Households may receive up to $6,000.00 in assistance. She advised the Committee of the following information regarding weatherization: • Customers experience "One Stop Shop" • Increased access to services • Improved program coordination CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 21 of 23 Update on the Energy Assistance and Weatherization Assistance Programs (cont'd) (Agenda Item 6) Ms. Singleton then shared information regarding other related programs for this initiative as follows: • Atmos: Share the Warmth (Utility Payment Assistance) • Atmos: Keep the Warmth (Energy Efficiency) • TXU Energy Aid • Water Donation Funds o CFW and Monarch Utilities Ms. Singleton concluded her presentation by explaining her last two slides. The slide on Consumer Demand reflected a bar graph indicating assistance provided in 2010 and 2011. The slide on CEAP Funding Trends reflected allocations from 2007 through 2011. Chairman Burns opened the floor for questions and /or comments. Committee Member Hicks expressed appreciation to staff for all they did and added that there was so much need in the community especially with the difficult economy. She added that she was pleased to see the funding increased and pointed out that the Council knew about the difficulty with obtaining a quorum for some meetings. She offered the assistance of Council Aides to attend the meetings when necessary to allow business at the meetings to take place. Committee Member Shingleton stated that residents in the Como area greatly depended on the assistance of the CAP program, particularly in after school services and expressed his appreciation to Ms. Singleton for her leadership with the program. Committee Member Price expressed appreciation to Ms. Singleton and pointed out that the program recently received Nooks from Barnes and Noble which were accepted by Ms. Singleton. There was no further presentation or discussion on this agenda item. Executive Session (Agenda Item 7) Chairman Burns stated that he had been advised that an Executive Session was not necessary on the following items: CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 22 of 23 Executive Session (cont'd) (Agenda Item 7) 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. This agenda item was passed over. Request for Future Agenda Items (Agenda Item 8) Chairman Burns opened the floor for requests for future agenda items. . Committee Member Espino referred to the Joint Meeting between the Fort Worth City Council and the Board of Directors of the Fort Worth Independent School District (FWISD). He stated that it would be helpful for other ISDs in the area (Crowley, Keller, Northwest, White Settlement) to send representatives to make a presentation at either a Housing and Economic Development Committee meeting or perhaps at a Pre - Council Worksession and give an update of what was happening in their districts. He asked that staff look at a schedule and perhaps have those representatives provide updates at a future meeting. Committee Member Hicks expressed appreciation to the staff for the ground breaking at Terrell Heights which was attended by Mayor Price and Council Member Shingleton. She added that the area had so many empty lots and the new houses would be a significant achievement for the city. She expressed appreciation to Jay Chapa and Cynthia Garcia from the Housing and Economic Development Department and added that she hoped to see in this type of development in the Como area and on the Northside of the City. She also pointed out that the support from the Council on this development was greatly appreciated. CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE NOVEMBER 1, 2011 Page 23 of 23 Date of Next Regular Meeting — December 6, 2011 (Agenda Item 9) Chairman Burns advised that the next regular meeting of the Housing and Economic Development Committee was tentatively scheduled for Tuesday, December 6, 2011. Adiourn (Agenda Item 10) With no further presentations or discussions, Chairman Burns adjourned the regular meeting of the Housing and Economic Development Committee at 2:23 p.m., on Tuesday, November 1, 2011. These minutes approved by the Housing and Economic Development Committee on the 6`h day of December, 2011. Minutes Prepared by and Attest: I G�' P. Gonzales, City Secretary APPROVED: oMB rn�sCha�irm a