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HomeMy WebLinkAbout2009/05/05-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Present: Council Member Jungus Jordan, Chairman Council Member Carter Burdette, Vice Chairman Mayor Mike Moncrief Council Member Salvador Espino Council Member Danny Scarth Council Member Frank Moss (arrived at 1:07 p.m.) Council Member Joel Burns Absent: Mayor Pro tem Kathleen Hicks City Staff: Tom Higgins, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Kirk Slaughter, Director, Public Events Department Jay Chapa, Director, Housing and Economic Development Department Jerome Walker, Deputy Director, Housing and Economic Development Department Charlie Price, Housing Program Manager, Housing and Economic Development Department Ana Montanez, Economic Development Specialist, Housing and Economic Development Department Other City Staff in Attendance: Dale Fisseler, City Manager Carl Smart, Executive Assistant to the City Manager Vicki Ganske, Senior Assistant City Attorney, Legal Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department Ardina Washington, Economic Development Manager, Housing and Economic Development Department Karen Meunier, Program Manager, Housing and Economic Development Department Guests: Brad Barnes. General Manager. Southwestern Exposition and Livestock Show CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 2 of 25 Guests (cont'd)• Charlotte Sobel, Executive Director of the Fort Worth Partnership for Community Development John Avila, Jr., President; Fort Worth Partnership for Community Development Glenn Spoons; Board Member for Fort Worth Partnership for Community Development Brady Brazil, Comptroller, with EFW Inc. Steve Carter, with ATC Logistics and Electronics, Inc. With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Committee to order at 1:04 p.m., on Tuesday, May 5, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the April 7, 2009, 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 Council Member Scarth and seconded by Mayor Moncrief, the Committee Members voted six (6) "ayes" and zero (0) "nays", with Mayor Pro tern Hicks absent and Council Member Moss temporarily absent, to approve the minutes of the April 7, 2009, Housing and Economic Development Committee meeting. The motion carried unanimously. Chairman Jordan advised that with the prerogative of the Chair he would be moving down the agenda to consider the Executive Session. He adjourned the called — special meeting of the Housing and Economic Development Committee into Executive Session at 1:05 p.m., in accordance with the requirements of the Texas Open Meeting Act. Executive Session (Agenda Item 9) Chainnan Jordan called to order the Executive Session at 1:05 p.m. in order to discussion the following items: 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; and (1) legal issues related to any current agenda items; CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 3 of 25 Executive Session (cont'd) (Agenda Item 9) 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. (Council Member Moss arrived at the meeting) Chairman Jordan adjourned the Executive Session at 1:26 p.m. Chairman Jordan reconvened the called — special meeting of the Housing and Economic Development Committee at 1:26 p.m. Chairman Jordan returned to the next agenda item, Agenda Item 3. Briefing on the 2009 Stock Show and Rodeo (Agenda Item 3) Kirk Slaughter, Director of Public Events, introduced Brad Barnes, Executive Vice President and General Manager of the Fort Worth Stock Show and Rodeo, and commended him on his staff and the working relationship with the City of Fort Worth. He expressed appreciation for having them as a client. Using a PowerPoint presentation, Mr. Barnes gave a history of the Stock Show and Rodeo and showed numerous pictures of the event from the time it was held in the Coliseum on Exchange Avenue in the Stock Yards to the Will Rogers Coliseum. He pointed out that this was their 113 year for this event. There were also photographs of the construction of the Amon G. Carter, Jr., Exhibits Hall and the Will Rogers Equestrian Center. Mr. Barnes spoke about the Stock Show's impact on Fort Worth as: • Major Source of City's identity and heritage. • Generates more than $100 million in annual economic activity for Fort Worth o Grotta 1998 research • Stock Show had contributed more than $25 million to new construction and renovation of the Will Rogers Memorial Center. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 4 of 25 Briefing on the 2009 Stock Show and Rodeo (cont'd) (Agenda Item 3) • 2008 electronic survey conducted by Event Corp Services of British Columbia, Canada provided Stock Show with useful data. Mr. Barnes provided the Stock Show Visitor Profile as follows: • Caucasian was dominant ethnic group— 81% o Hispanic— 7% o African American—4% o Native American— 3% • Females outnumbered males 52 to 48 percent. • Average age was 32 • Forty-two was average age of group decision makers • Sixty-three percent of guests 18 years and over were married • Seventy-seven percent had post-secondary education. • Eighty-eight percent used Stock Show website to plan their visit. Mr. Barnes reviewed the visitor statistics as follows: • Visitors came in average groups of 4.3 people • Fifty-six percent with their spouse • Six percent by themselves • Twenty-seven percent in groups of 6 or more • Average livestock exhibiting group was 6 • Thirty-three percent always attend • Sixteen percent were first-timers • Two-thirds attended the previous year's show. • On average, each visitor had attended the show for 12 years • Visitors attended 3.1 days over 24-day run • Each daily visit averaged 5.3 hours. Mr. Barnes advised of the visitor purchasing power: • Visitors had an average household income of $80,638.00 — substantially higher than the 2007 Metroplex average of$69,546.00. • Twelve percent from households with annual incomes less than $25,000.00. • Twelve percent from households with annual incomes great than $150,000,00 • Excluding Stock Shoe purchases. v isitors ,pent 5400 during their stay. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 5 of 25 Briefing on the 2009 Stock Show and Rodeo (cont'd) (Agenda Item 3) o Thirty-seven percent increase over 2005 • Eighty-nine percent bought food at the show • On-site per capita spending was $38 per visit Mr. Barnes spoke about the Stock Show Visitor Area Demographics as follows: • Sixty-nine percent live in the metroplex—25 percent in other areas of Texas. • Sixty-four percent live within 50 miles of the Will Rogers Memorial Center. • Seventy-four percent of out-of-towners came to Fort Worth mainly for the Stock Show • Fifty-six percent stayed overnight for an average of 2.7 nights o Fifty percent lodged at hotels/motels • Driving to event by private automobile was transportation mode for 88 percent of visitors • Average trip time was 39 minutes Mr. Barnes advised of the Customer Service Ratings as: • Show received "extremely high"ratings for: • Customer Service • Features of the Show • Overall Enjoyment • On lower rated categories — value and price of admission — show scored substantially higher than typical ratings for multi-day fairs and festival type events • Eighty-nine percent indicated they would enthusiastically recommend show to others He then presented the 2009 Stock Show Summary: • More than 22,000 livestock entered • Unprecedented six national cattle registries chose Fort Worth to host their national show. • Overall auction receipts—approx. $5,660,000.00 • Jr. Sale of Champions totaled $2,011,571.00 o Eclipsed 2008 by more than $100,000.00 • S,266.600.00 paid in scholarships and educational grants CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 6 of 25 Briefing on the 2009 Stock Show and Rodeo (cont'd) (Agenda Item 3) • International guests from 60 countries • 926,000 visitors. Mr. Barnes presented a slide that showed a graph of Stock Show Attendance History from 1998 to 2009. Mr. Barnes showed his final slide that expressed appreciation to the Will Rogers Memorial Center and provided the following comments: • WRMC cooperative effort with Stock Show achieved significant labor savings. • Thirty percent man-hour reduction over 2008 • Thirty-one percent net savings over 2008 • Maintained service Stock Show patrons expect • Big"Thank you" to o Chris Harmon o Kevin Kemp Mr. Barnes concluded his presentation. Chairman Jordan opened the floor for questions and/or comments. Mayor Moncrief referred to the old adage that "actions speak louder than words" and he felt that their "action" spoke volumes. He commended Mr. Barnes, the Rodeo Board and staff for this special event and pointed out that it was really a "happening" for the City. He spoke about that this event took everyone from their "suits" to their western wear and boots and people felt comfortable. He added that this event also allowed the citizens to celebrate their western heritage. He pointed out that he was very excited that this venue was going to take place in Fort Worth during the 2011 Super Bowl Event. He added that the synergy was already beginning for that event and it would be one thing that Fort Worth would have and would not be occurring in the cities to the east. Mayor Moncrief commended Mr. Barnes and his team on the work done on the Championship Show and what it provided to the community. Mayor Moncrief pointed out that it was a Fort Worth treasure and he appreciated the job that they had done. Council Member Espino expressed appreciation to Mr. Barnes and the Fort Worth team for what they have accomplished. He added that they have been very instrumental in working to attract more Hispanic residents to attend this event. He commended them for working with the Hispanic Chamber of Commcrcc and tray cling to `Mexico to see hokN these types of events are CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 7 of 25 Briefing on the 2009 Stock Show and Rodeo (cont'd) (Agenda Item 3) done in that country. He added that this show truly belongs to everyone in the community. He pointed out that the City needed to improve the facilities and invest in them and stay competitive with the other cities that host these types of equestrian events. He indicated that he wanted Fort Worth to stay the Capital of Western Culture and in order to do so, they needed to stay competitive. He pointed out that this event drew people from all over the Metroplex and all over the world and he expressed kudos to Mr. Barnes and his team. Council Member Burdette pointed out that anyone that watched the presentation should realize that this particular event probably defined the City of Fort Worth better than any event that had been held in the City. He talked about its long history going back into the 191h Century but also to the fact that it had carried on "unbroken" except for one year during the war. He talked about the "cowboys and culture" theme that the City was know for. He talked about the parades for this event that also included Native Americans. Council Member Burdette indicated that the City was blessed to have this event and he hoped that the good partnership continued between the City and the Show Stock people long into the future. He added that he also supported the comments made by Council Member Espino about maintaining the facilities and making an investment in them. Chairman Jordan explained that he had very fond memories of the Stock Show as a child growing up in Fort Worth. He added that as others had stated the Stock Show was the City's personality. He referenced the attendance numbers and that it appeared that 16% were new attendees and many of them were new family members or grand children, etc. Chairman Jordan spoke about the Stock Show being in a facility that was in the City's cultural district and that the western heritage will always be a part of the culture even as the City grows and becomes more sophisticated. He expressed appreciation for the presentation and to Mr. Barnes for his work and his staff for this successful event. This concluded the presentation and discussion on this agenda item. Briefing on the Year Three Objectives for the Fort Worth Partnership for Community, Development (Agenda Item 4) Jay Chapa, Director of Housing and Economic Development Department, introduced Charlotte Sobel, Executive Director of the Fort Worth Partnership for Community Development, and also recognized John Avila, Jr., President of the Board of Directors for the Partnership who was in the audience. Mr. Chapa also reminded the Council that they would be considering on the CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 8 of 25 Briefing on the Year Three Objectives for the Fort Worth Partnership for Community Development (cont'd) (Agenda Item 4) agenda at their regular meeting Mayor and Council Communication G-16561 which would allow for the funding of this Partnership for the third year. Ms. Sobel also recognized Board Member and President Mr. Avila, who was with the Thomas S. Byrne Construction, LTD, and Board Member Glen Spoons, with the Chamber of Commerce and Greenway Neighborhood Association. Using a PowerPoint presentation, Ms. Sobel presented the purpose of the presentation was to: • Provide an update on the Fort Worth Partnership for Community Development ("Partnership") • Seek the Committee's comments on the work of the Partnership to-date • Urge the Committee's support for 3`d year funding of the Partnership by the City Ms. Sobel advised that the Partnership Mission Statement was: • The Partnership was created to assist in building strong, accountable, locally-led nonprofit community-based development organizations in low and moderate income neighborhoods of Fort Worth. • The Partnership was created to support comprehensive community economic development that enhances the quality of life in those neighborhoods. • The Partnership strives to deliver a sustained message about the importance of community-based development. She reviewed the list of Board of Directors and Staff as follows: • John Avila, Jr., President; Thomas S. Byrne Construction, LTD. • John Robinson, Treasurer; Amon G. Carter Foundation • Valleau "Val" Wilkie, Secretary; Sid W. Richardson Foundation • Kathleen Hicks; Mayor Pro-tem and City Council appointment • Pablo Calderon; United Way of Tarrant County • Glenn Spoons; Chamber of Commerce and Greenway Neighborhood Association • Svlvia Monsavias; Bank of America • Glenn Forbes; Chasc Bank CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 9 of 25 Briefing on the Year Three Objectives for the Fort Worth Partnership for Community Development (cont'd) (Agenda Item 4) Staff • Charlotte Sobel; Chief Executive Officer She advised that they still had one appointment to the board pending. She then presented the roles of the Partnership as follows: • Pool financial resources to sustain and grow the impact and capacity of community development organizations • Advocate on behalf of local community development organizations and others who support enhanced neighborhood development strategies • Provide technical assistance to community development organizations and other neighborhood groups • Serve as both an advocate and liaison with the City on behalf of the community development organizations Ms. Sobel identified the Primary Clients of the Partnership as: • Near Northside Partners, Inc. o Working in Near Northside Neighborhood, Council District 2 • Tarrant County Samaritan House • Based and working in Medical District, Council District 8 • Future goal: Lake Como Neighborhood, Council District 7 • Tarrant County Housing Partnership o Works county-wide and in South Hemphill Heights Neighborhood, Council District 9 • United Riverside Rebuilding Corp. o Based and working United Riverside Neighborhood, Council District 8 She spoke about the technical assistance provided by Partnership for: • Housing Development • Organizational Development • Fundraising Assistance • Strategic Planning • Economic Development and job creation strategies CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 10 of 25 Briefing on the Year Three Objectives for the Fort Worth Partnership for Community Development(cont'd) (Agenda Item 4) She presented the outcomes since last the Partnership update as: • Fundraising • Received $10,000.00 grant from Thomas S. Byrne, Ltd. of$25,000.00 commitment • Submitted $10,000.00 grant request to Bank of America • Invited to submit application for $200,000.00 to Bank of America's Neighborhood Excellence Grant Program • Invited to submit application for $260,000.00 from Sid Richardson Foundation • Sponsored successful application by Tarrant County Housing Partnership as City-certified Community Housing Development Organization (CHDO) Ms. Sobel advised of the clients with pending City project funding applications as follows: • Near Northside Partners, Inc. • Tarrant County Housing Partnership • United Riverside Rebuilding Corp. Ms. Sobel reviewed several slides that showed a graph of performance measures against budget figures, a graph of revenue sources and a graph of expenditures. Ms. Sobel presented the Year 3 Goals of the Partnership as follows: • Strengthen its financial base to provide continued operating support to grantees • Continue advocacy for community-based development organizations building affordable housing in Fort Worth neighborhoods • Work with organizations on survival strategies during current difficult economic chinate • Work to expand the supply of affordable housing developed by community based organizations • Serve as an advocate on affordable housing issues • Add a Board member to the Partnership's Board of Directors • Match the City's contributions • Grow current relationships and create new collaborations to advocate for affordable housing city ide CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 11 of 25 Briefing on the Year Three Objectives for the Fort Worth Partnership for Community Development (cont'd) (Agenda Item 4) • Explore regional solutions for increased affordable housing opportunities • Assist current client organizations to begin construction on pending projects • Assist current client organizations to develop job creation opportunities • Serve as an advocate on affordable housing issues She spoke about the Tarrant County Samaritan House and that they had recently partnered with Z's Cafe located in the Community Arts Center creating 10 to 15 new part-time culinary jobs for its resident clients. Ms. Sobel advised that the future City Council consideration would be: • Continued support for the work of the Partnership in the City's central neighborhoods • Support Year 3 Funding of$275,000.00 in supplemental appropriation consistent with original proposal for Partnership funding, i.e., Year 1 - $250,000; Year 2 - $275,000 and Year 3 - $275,000. Ms. Sobel concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. Mayor Moncrief explained to Ms. Sobel that he had one correction to her vernacular and that was the City Council and staff was not interested in "affordable housing" in the City. He emphasized that the terminology was "quality affordable accessible housing." He requested that in the future any presentations and/or slides reflect that particular wording. He added that it was a mind set and it would lead to a quality product that was affordable and accessible to everyone. He added that what they had done was outstanding work. He stated that the challenges continued. He pointed out that the Z's Cafe story was great and added that he had not had the opportunity to visit that restaurant yet. He stated that he was excited about people being able to work in an environment where they were comfortable and they were not isolated or ashamed. He added that they were part of the Fort Worth family and Fort Worth community. Ms. Sobel advised that their catering side of the business was increasing and they would be hiring more people. Council Member Espino commended Ms. Sobel and her Board of Directors for their work. He pointed out that the Partnership was starting to work in some of the Council Districts and added that it was the mantra of City Council to work in all Council Districts as the% all had CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 12 of 25 Briefing on the Year Three Objectives for the Fort Worth Partnership for Community Development (cont'd) (Agenda Item 4) Central City neighborhoods. He talked about the Quality Affordable Accessible Housing Task Force, which Ms. Sobel had attended some of the meetings, and pointed out the need to address the older neighborhoods. He added that it was always a challenge to rehab those older areas of the City. He talked about the number of vacant lots that also existed and the infill housing that was needed to be placed on those lots. Council Member Espino spoke about Tarrant County's Housing Program and whether Ms. Sobel had talked with the Tarrant County Commissioners' Court regarding how they could assist with this process and taking a regional approach to address these housing issues. He also referenced working with the Trinity Habitat for Humanity and whether they were interested in working with the Partnership to address housing needs. Council Member Espino reiterated his three points which he felt the Partnership should consider, which were providing for CHDO's in all Council Districts, looking into repair of the older housing stock; partnering with Tarrant County and the Trinity Habitat for Humanity for a regional approach to housing needs. Chairman Jordan expressed appreciation to Ms. Sobel for her presentation. This concluded the presentation and discussion on this agenda item. Discussion of Nominating EFW, Inc., as an Enterprise Project for the Texas Enterprise Zone Program (Agenda Item 5) Ana Montanez, Economic Development Specialist, Housing and Economic Development Department spoke before the committee on the nomination of EFW, Inc., as an Enterprise Project for the Texas Enterprise Zone Program. Using a PowerPoint presentation, she reviewed that the Texas Enterprise Zone Program was an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. She explained that an enterprise project was a business that was nominated by a municipality or county and approved by the bank for state and local benefits. State incentives include state sales and use tax benefits based on capital investment and jobs created and/or retained during the designation period. The state may designate up to 105 enterprise projects each biennium. She pointed out that the Enterprise Project requirements kNcre: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 13 of 25 Discussion of Nominating EFW, Inc., as an Enterprise Project for the Texas Enterprise Zone ProEram (cont'd) (Agenda Item 5) • Projects are nominated by the City or County and application was made to the state. • Must have at least 35% of new/retained employees that meet economically disadvantaged or enterprise zone residency requirements. • Jobs must provide employment of at least 1,820 hours annually. • Jobs must exist through the end of the designation period, or at least three years after the date on which a state benefit was received, whichever was later. She presented the overview of the Enterprise Project Benefits as follows: • State sales and use tax refund on qualifying expenses o Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund in related to the capital investment and jobs created at the qualified business site. Ms. Montanez presented the overview of EFW Inc., as follows: • EFW Inc. was a subsidiary company of Elbit Systems of America. • EFW was a full service electronics supplier, and specializing in sophisticated hardware and software solutions for upgrade integration and enhancement projects • EFW was a fully accredited U.S. Department of defense supplier. She provided the key information on the company as follows: • EFW Inc., was situated just north of Interstate 820 off of Marine Creek Parkway • Company located in Council District 7 • Had a 218,000 square foot facility at Marine Creek and 41,000 square foot facility at Meacham. • 725 employees (665 employees at Marine Creek and 60 at Meacham) with total payroll of$51,072,000.00 and an average salary of$76,800.00 Ms. Montanez presented the benefit to Fort Worth as follows: • Projected Capital Investment: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 14 of 25 Discussion of Nominating EFW, Inc., as an Enterprise Project for the Texas Enterprise Zone Prop-ram (cont'd) (Agenda Item 5) • Engineering $5,735,000.00 • Building and Facility $6,777,000.00 • Manufacturing $4,134,000.00 • Information Technology $9,200,000.00 o Other $6,043,000.00 o Total $31,889,000.00 • 500 jobs retained with payroll of$38.3 million. • Company would submit the necessary annual paperwork to State to receive benefits. • Request requires no fiscal obligation from City of Fort Worth. Ms. Montanez spoke about the fact that the process was competitive and if EFW Inc invested $31.9 million and retained 500 jobs, they would be eligible for a maximum refund of $1,250,000.00 for state sales and use tax. She then presented the next steps in this process as follows: • Place Mayor and Council Communication and resolution of support on May 19 Council Agenda • Submit resolution to the state prior to June 1 deadline Ms. Montanez concluded her presentation. Chairman Jordan advised that this was a state program and he indicated that probably the consent of the Council would be to move forward with this recommendation. Chainnan Jordan recognized individuals in the audience that were with EFW Inc., being Brady Brazil, the Comptroller, and another gentleman with Price Waterhouse. Council Member Burdette requested clarification as to what action would be taken by the Council on this item. Chairman Jordan indicated that this committee was just advisory and no action would be taken on this item by the committee. He added that this item would appear as a Mayor and Council Communication and resolution of support by the City Council on the May 19, 2009, City Council agenda. This concluded the presentation and discussion on this agenda item. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 15 of 25 Discussion of Assigning an Enterprise Project Designation from ATC Logistics and Electronics, LP to ATC Logistics and Electronics, Inc. (Agenda Item 6) Ana Montanez, Economic Development Specialist, Housing and Economic Development Department, spoke before the committee on the assigning of an Enterprise Project Designation from ATC Logistics and Electronics, LP to ATC Logistics and Electronics, Inc. Using a PowerPoint presentation, she advised of the Enterprise Project Assignment Application Process as follows: • ATC Logistics and Electronics, LP had merged with ATCLE 3PL Corporation. • The company had two addresses that belong to the project site, 13500 Independence Parkway and 13550 Independence Parkway. • Submit a written relinquishment from the designated project's qualified business • City Council had to pass a nominating resolution • Submit to State for final approval She explained that the next steps were to: • Place a Mayor and Council Communication and resolution of support on May 19, 2009, City Council Agenda • Submit resolution to the state Ms. Montanez concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. Chairman Jordan clarified that this was an administrative measure that was required to meet the legal requirements of the assignment and to continue the designation. Chairman Jordan recognized Mr. Steve Carter, who was with ATC Logistics. Mr. Carter expressed appreciation to the City Council for their support in this endeavor. Chairman Jordan also pointed out that it was the charge of the City Council four years ago to the City staff to find more companies with white collar jobs. He commended the Housing and Economic Development staff for identifying these companies with white collar jobs and he added he was hearing more of the word "electronics", which was good for the community. This concluded the presentation and discussion on this agenda item. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 16 of 25 Update on the Lincoln Terrace Multi-family Proiect Located at 4717 Horne Street (Agenda Item 7) Charlie Price, Housing Program Manager, with the Housing and Economic Development Department, spoke before the committee on the Lincoln Terrace Multi-family Project located at 4717 Horne Street. Mr. Price advised that the presentation would cover the following information: • Project Overview • Project Details • HOME Funds • Loan Terms • Next Steps • Questions Mr. Price provided the project overview as follows: • Council District: 7 • Project Site: 4717 Horne Street • Type of Property: Multi-Family Rental • Project Description: Demolition and Reconstruction of 72-unit apartment community • Owner: Fort Worth Housing Authority Limited Partnership • HOME Funds Requested: $480,000.00 Mr. Price showed an aerial photograph of the neighborhood surrounding 4717 Horne Street. He also provided a closer project overview map of 4717 Horne Street. He then provided photographs of the buildings in the project that would be torn down and replaced with new "quality affordable accessible housing." Mr. Price presented the project details as follows: • Project Description: Multi-Family Demolition & Reconstruction Project • Configuration: Current and Proposed o 1-BR 20 o 2-BR 38 o 3-BR 14 ■ 72 Units • Income I I gibiI Itv 6()°„ :A\J[ I 7' CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 17 of 25 Update on the Lincoln Terrace Multi-family Project Located at 4717 Horne Street (cont'd) (Agenda Item 7) • Rental Rates • 1-BR $285-$627 • 2-BR $343-$772 • 3-BR $397-$893 He presented the HOME Construction Costs as follows: • Project Development Cost: $8,766,000.00 • HTF Loan Amount: $480,000.00 o Leverage 1 to 18.26 Mr. Price reviewed the construction loan terms as follows: • Rate: 4.00% • Source of Funds: HOME • Term: 36-month or commencement of permanent financing simple interest paid annually • Contingencies o TDHCA Tax Credit Allocation Mr. Price presented the timeline for the project as follows: • August 2009, Tax Credit Award • February 2010, Loan closings • March 2010, Start of Construction • March 2012, Permanent Loan Closing, repayment of HOME loan Mr. Price advised of the next steps in this process: • Mayor and Council Communication approving the allocation of $480,000.00 in HOME funds to the Lincoln Terrace Apartments Project Mr. Price concluded his presentation. Chainnan Jordan opened the floor for questions and/or comments. Council Member Scarth requested clarification on the rental rates and the reason there �kere such a differencc in the ranges. %1r. Price explained that it ktias a pro ect-based Section 8 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 18 of 25 Update on the Lincoln Terrace Multi-family Project Located at 4717 Horne Street (cont'd) (Agenda Item 7) Housing Project so that the rent was based upon the family's income, and could vary based upon 30% of their income. In further discussion, Mr. Price clarified that it was a Section 8 Housing Project and would remain that type of project. Council Member Burdette indicated that he was glad to hear that the tax credits on the project were so high, as there had been a problem with this issue with the state about six or seven months ago. He added that the issue was one of whether to rehab the units or demolish and rebuild. He indicated that the residents of the Lake Como area were very excited about this project. He added that the current residents had the opportunity of being relocated by the Fort Worth Housing Authority while the project was being rebuilt. He indicated that it was going to be a great adjunct to the neighborhood and he looked forward to the groundbreaking and construction next year. Chairman Jordan indicated that this project represented putting "quality" into affordable housing. This concluded the presentation and discussion on this agenda item. Discussion of Eligible Uses for Community Development Block Grant (CDBG) Funds (Agenda Item 8) Jerome Walker, Deputy Director, Housing and Economic Development Department, spoke before the committee on the eligible uses for Community Development Block Grant (CDBG) funds. Mr. Walker provided the CDBG Grant Overview as follows: • Eligible Uses of Funds o Who can be assisted o What activities can be funded • Regulatory Processes for Use of Funds Mr. Walker advised that the primary objective of the CDBG program was the development of viable communities by the provision of decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 19 of 25 Discussion of Eligible Uses for Community Development Block Grant (CDBG) Funds (cont'd) (Agenda Item 8) Mr. Walker spoke about selecting activities that comply: Step One was to determine if the proposed activity met one of the national objectives of the program. Mr. Walker spoke about the national objectives were to: • Benefit to Low-Moderate Income o Residential area with at least 51% low-moderate income population o Direct benefit to low-moderate income persons 0 70% of grant funds must meet this first criteria • Elimination of Slum & Blight • Area basis (designated by state/local law) • Spot basis (specific condition/structure) • Urgent Need (disaster etc.) • Immediate threat to health & welfare • No other local funding source He then presented a map showing the Fort Worth CDBG Eligible Areas in the color yellow and the areas that were not Eligible CDBG Areas in the color grey. Mr. Walker spoke about selecting activities that comply: Step Two of the selecting activities that comply were to determine if the activity was included within the listing of eligible activities in the CDBG statute. He reviewed the eligible activities as follows: • Real Property Acquisition & Disposition • Public Facilities & Improvements o Infrastructure/Community Centers/Parks • Demolition/Clearance • Rehabilitation of residential and non residential structures • Historic Preservation • Public services (limited to 15% of grant) • Housing Services to support HOME grant funded programs • Homeownership Assistance • Planning & Administration of the grant (20% of grant) • Economic Development (must produce a public benefit _job creation, or retail scrxiccs to a lock-moderate income neighborhood) CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 20 of 25 Discussion of Eligible Uses for Community Development Block Grant (CDBG) Funds (cont'd) (Agenda Item 8) • Relocation associated with CDBG-assisted activities (households or businesses) • Code Enforcement (dedicated to low-moderate income areas) • Grant Matching Funds or Technical Assistance associated with CDBG-funded activities • Neighborhood Revitalization or Economic Development Activities of Community Based Development Organizations (CBDOs) He then reviewed the selecting activities that comply: Step Three was to determine if the proposed activity falls within a category of explicitly ineligible activities. Mr. Walker reviewed the ineligible activities as: • General Conduct of Government • Political or Religious Activity • New Housing Construction (except for CBDOs) • Operating or Maintenance Expenses of public facilities, improvements & services • Purchase of Equipment and Furnishings Mr. Walker reviewed the selecting activities that comply: Step Four was to ensure that carrying out the activity with CDBG funds would not result in the City violating its certification that at least 70% of expenditures would benefit low and moderate persons over a one, two, or three consecutive year period. Mr. Walker reviewed the selecting activities that comply: Step Five was to determine if costs of activity were necessary and reasonable and would otherwise conform with federal requirements. Mr. Walker advised that the selecting activities that comply: Step Six was to complete the environmental review and clearance procedures for the project. He presented the environmental review included: • The purpose of the environmental review was to determine the impact of a proposed activity on the environment and the environment on the project. • The review consists of three major steps and could take 90 to 120 days. En%ironmcntal review clearance level Public notice of tindings and intent to rcquest funds from lil D CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 21 of 25 Discussion of Eligible Uses for Community Development Block Grant (CDBG) Funds (cont'd) (Agenda Item 8) o Submit request for release of funds. He reviewed the other procedural requirements as: • Review for historical significance — is part of the environmental review process; required for properties built before 1955. • The historic review was conducted locally by the Planning and Development Department and then forwarded to the Texas Historical Commission. • Lead assessment and abatement on structures built before 1978 • Change in use of funds—requires a 30-day public comment period • Substantial Amendment to action plan—requires 30-day public comment period He advised of the current projects—CDBG Dollars Spent by March 31, 2010 Projects Amount Lights in Historic Carver Heights (Model Blocks) $ 105,600.00 Neighborhood Marker in Historic Carver Heights (Model Blocks) 31,340.00 Lights in Morningside 18,831.00 Renovation of Fire Station No. 10 and Playground in South Hemphill 390,000.00 (Model Blocks) Neighborhood Marker in Stop Six Sunrise (Model Blocks) 43,200.00 Stop Six Sunrise—Rehab/Resale(Model Blocks 100,000.00 Neighborhood Streets $1,679,104.00 Burger Street 62,870.00 United Community Center Project 776,500.00 Lancaster NPO (15% complete by March 2010) 200,000.00 Total $3,407,445.00 Mr. Walker presented the Proposed Projects as follows: • Code Demolition $750,000.00 • Additional Lights at Historic Carver Heights $426,658.00 • ADA Ramps/Sidewalks $500,000.00 • Hardy Street Acquisition/Demolition $205,000.00 • Lights in Terrell Heights $720,000.00 • Total $2.601.658.00 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 22 of 25 Discussion of Eligible Uses for Community Development Block Grant (CDBG) Funds (cont'd) (Agenda Item 8) Mr. Walker concluded his presentation. Chairman Jordan opened the floor for questions and/or comments. Council Member Burns pointed out the amount of funding that had been identified for neighborhood streets and requested clarification was to whether the neighborhood streets had been identified as of this time. Mr. Walker indicated that line item was for streets that were underway at the current time. He stated that there was a long list of streets and staff would provide that list to the Council and the construction was already underway on those streets. Chairman Jordan suggested to Mr. Walker that he meet with each of the Council Members and talk with them about the eligible areas located in their districts and what future projects would fall under this control. He suggested that the Council probably would need this extended education. Chairman Jordan pointed out that on the list for proposed projects was the "code demolition" in the amount of$750,000.00. He stated that this came about as a result of several of the Council Members' concerns about the abandon pole signs that were still standing in their districts. He suggested again that Mr. Walker met with each Council Member and come up with a"wish list" or plan for those projects. Chairman Jordan commended Mr. Walker on the presentation and that it had answered a lot of his questions on the use of the CDBG funds. Council Member Espino pointed out that one of the things that the City Council had been discussing was the use of the Community Development Council (CDC) as a filter to make recommendations on the use of these funds. He requested clarification on whether that process was going to continue. Chairman Jordan indicated that was correct and his suggestions were not to override the prerogative of that council. He pointed out that each Council Member had a representative on that council. He added that his suggestions were just to be used for a planning standpoint for the Council Members and where they might be looking in the future. He added that it could be visionary rather than reactionary. This concluded the presentation and discussion on this agenda item. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 23 of 25 Request for Future Agenda Items (Agenda Item 10) Council Member Espino indicated that one of the issues that the City Council had been talking about was the issue of old shopping centers that had vacant spaces that were not leased or that had been abandoned altogether. He clarified that it was not just about the abandoned pole sign issue. He stated that in the Central City area the spaces were being leased to Dollar Stores or resale shops. He requested that the staff of Housing and Economic Development Department look into how these shopping centers could be marketed in order to bring business back into the Central City. He added that he knew that there were specific strategies and techniques and he requested a 101 presentation be done to encourage that redevelopment. He talked about the rehabbing of these older shopping centers because they were starting to deteriorate. He added that he and Council Member Scarth were looking for a grocery store to move into the area once occupied by Minyard's on the corner of Beach Street and Belknap, which overlaps District 2 and 4. Council Member Moss indicated that the Council had talked last week about items that the Council would like to see. He added that he and Mayor Pro tern Hicks had talked about the programs that the City had for weatherization and emergency repairs. He added that the City Council had talked about coming up with some type of written communication. He requested at presentation be made to this committee regarding those issues. He indicated that he wanted the presentation in order to get a better handle on what was going on with those programs and how people get service through those programs. Assistant City Manager Tom Higgins indicated that subject was scheduled for presentation at the June meeting. Mr. Higgins also requested a clarification on Council Member Espino's request. He asked if the staff was to meet with each Council Member on a one-on-one basis regarding the shopping center issues. Council Member Espino clarified that he was requesting a 101 or basic presentation to the committee on marketing of the older shopping centers. Council Member Burdette indicated that he also wanted to add to the presentation that had been requested by Council Member Espino to include the large box grocery stores that have also been abandoned or closed. He explained that he had one in his district on White Settlement Road that had been vacant for some time as well as one on West Camp Bowie. He pointed out that these were large commercial buildings that had a lot of square footage and nothing was being done with them. He requested that they be catalogued and detennine what the availability of those buildings might be. He suggested that perhaps the City acquire them for use as community centers, libraries, etc., or other city functions. Council Member Burdette indicated that he did not know the cost of the buildings; however, he did feel that they should be catalogued by the City staff. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 24 of 25 Request for Future Ap-enda Items (cont'd) (Agenda Item 10) Mayor Moncrief indicated that he had an item; however, he was not sure whether it was for this committee to consider or the City Council. He indicated that it was the issue of the street lights that were located throughout the City and that he was seeing more and more of them not operating. He pointed out that this could become a criminal activity issue. He emphasized that he was seeing them on neighborhood streets, major aerials, the freeways, etc. He stated that he had seen large sections of the lights that were out and he questioned who was responsible for their maintenance and operation, i.e., was it the City's or the Texas Department of Transportation's or both. He added that he was seeing it in all of the Council Districts throughout the City. He reiterated his request for a presentation to Assistant City Manager Higgins. Chairman Jordan indicated that he felt it was timely that the Council had a presentation on the shopping centers and large box stores as the Council had changed the economic development policy to include those types of developments. Date of Next Regular Meeting— May 5, 2009 (Agenda Item 11) The next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, June 2, 2009. Adiourn (Agenda Item 12) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 2:45 p.m., on Tuesday, May 5, 2009. These minutes approved by the Economic and Community Development Committee on the 2nd day of June, 2009. APPROVED: J gus Jo an. Ch innan CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE MAY 5, 2009 Page 25 of 25 Minutes Prepared by and Attest: CV\ &J— "W Marty Hendrix, ty Secretary