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HomeMy WebLinkAbout2009/06/02-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Present: Council Member Jungus Jordan, Chairman Council Member Carter Burdette, Vice Chairman Mayor Mike Moncrief Council Member Danny Scarth Council Member Frank Moss Mayor Pro tern Kathleen Hicks Council Member Joel Burns Absent: Council Member Salvador Espino City Staff: Tom Higgins, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Housing and Economic Development Department Mark Folden, Acting Economic Development Manager, Housing and Economic Development Department William Johnson, Assistant Director, 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 Denis McElroy, Assistant City Attorney, Legal Department Ardina Washington, Economic Development Manager, Housing and Economic Development Department Dolores Garza, Economic Development Specialist, Housing and Economic Development Department Charlie Price, Housing Program Manager, Housing and Economic Development Department Henry Day, Senior Management Analyst, Housing and Economic Development Department Ana Montanez, Economic Development Specialist, Housing and Economic Development Department Donald Carter, Program Manager, Housing and Economic Development Department Bridgctte Garrett, Sunset Review, CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 2 of 21 Kirk Slaughter, Director of Public Events With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Development Committee to order at 1:24 p.m., on Tuesday, June 2, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the May 5, 2009, Housing and Economic Development (Agenda Item 2) Committee Chairman Jordan opened the floor for a motion on the approval of the minutes. MOTION: Upon a motion made by Mayor Moncrief and seconded by Mayor Pro tem Hicks, the Committee Members voted seven (7) "ayes" and zero (0) "nays", with Council Member Espino absent, to approve the minutes of the May 5, 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 Agenda Item 8 to consider the Executive Session. He adjourned the called— special meeting of the Housing and Economic Development Committee into Executive Session at 1:25 p.m. in accordance with the requirements of the Texas Open Meeting Act. Executive Session (Agenda Item 8) Chairman Jordan called to order the Executive Session at 1:25 p.m. in order to discuss 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: (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, I CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 3 of 21 Executive Session (cont'd) (Agenda Item 8) 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 1:35 p.m. Chairman Jordan reconvened the called — special session of the Housing and Economic Development Committee at 1:35 p.m. Chairman Jordan returned to the next agenda item, Agenda Item 3. Update on the Housing and Economic Development Department (Agenda Item 3) Jay Chapa, Director of Housing and Economic Development Department, spoke before the committee on an update of the Housing and Economic Development Department. Using a PowerPoint presentation, Mr. Chapa provided the information to the committee as follows: Department Update • Continue to respond to inquiries related to Office of Inspector General's review of the department for capacity as it relates to the federal stimulus package • Planner (Kate Scott-Ward) from Planning and Development transferring to HED to help coordinate stimulus programs • Weatherization Program to be expanded to meet stimulus funding requirements • Rehab Division update • Ongoing program and process improvements in grant administration Mayor Pro tem Hicks requested to know whether there was a time line on when the weatherization program had to be sent. Mr. Chapa indicated that an application had to be sent by the 23'd of the month. He stated that the City Council would see a Mayor and Council Communication on June 16. He stated that the program was a two-year program. Mayor Moncrief interjected that some of the same money came into the Workforce Development Program. He stated that three (3) Executive Board Members (he, Tarrant County Judge Glenn Whitley and Mayor Bob Cluck of Arlington) determined that even though they were getting this large amount of money, they did not want to just spend it just for the sake of spending it. He added that they wanted to make sure that it was well spent, well justified and that they had measurable results of what they selected to do with the money and how they selected to spend the money. He pointed out often that was not the case. Mayor Moncrief CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 4 of 21 Update on the Housing and Economic Development Department (cont'd) (Agenda Item 3) encouraged the City staff and Council to be fiscally responsible and even if the City was not able to spend every penny, that the bar was to be set high and to know what the expectations were as well as the results that the City intended to get out of it. Mr. Chapa indicated that the City staff indicated to go by the identified guidelines and indicated that the guidelines were very specific. Council Member Moss requested to know if that program was going to be operated out of the Housing or the Parks Department. Mr. Chapa indicated that it would be part of the Housing and Economic Development Department. He advised that they were going to have to ramp up for this program. Mr. Chapa presented the Rehab Program and the goals as follows: • Neighborhood Stabilization Program o 14 per month for next 15 months • Housing Assistance Program o 10 per month • Housing Trust Fund o 5 per month • Cowtown Brushup o 186 per year • Weatherization Program o 213 per year • Minor Home Repair Program • A.L.E.R.T. Program o 74 • Emergency Repair Program o 20 per month/3 per day Weatherization Program • Type of Work Performed: Attic and wall insulation, weather-stripping, exterior door replacement, replace existing window A/C unit, windows and caulking • Income Eligibility: 125% poverty income levels • Spending Limit: $3,800.00 and up to $8,000.00 with Oncor and TAACA • Program Year April 1, 2007 — March 31, 2008 159 clients served Spent $387,851.86 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 5 of 21 Update on the Housing and Economic Development Department (cont'd) (Agenda Item 3) o Average $2,439.00 per house • Program Year April 1, 2008 —March 31, 2009 0 155 clients served o Spent $343,651.15 o Average $2,217.00 per house • Current Program Year April 1, 2009—May 28, 2010 0 32 clients served o Spent $74,396.00 o Average $2,324.00 per house ARRA Weatherization Program • Notice of Funding Availability (NOFA) Released by State for Weatherization Assistance Program funded by Department of Energy • Application is due June 23, 2009 • Two (2) year funding could exceed $14 million • Separate "Weatherization Team" will be created • Annual goal will exceed 1000 clients Mayor Pro tem Hicks interjected that back to Mayor Moncrief s earlier point, she completely agreed that these funds needed to be used where needed but obviously there was more need that there were dollars. She pointed out that there was a need to get the word out and that there was a limited amount of time that they must get their information in. She pointed out the need in the Central City area for the older homes. She indicated that the dollars needed to be used in the correct way as the Mayor had stated previously. Council Member Burns asked for future updates and how the Council Member offices could assist with getting that word out. Mr. Chapa spoke about working with Diane Covey in the Community Relations Department to put together a communication plan. He reminded the Council that the people applying for these funds have to meet certain income eligibility. He stated that a lot of people apply; however, they do not meet the income eligibility requirements. In further discussion, it was clarified that this represented about $20,000.00 for a family of four (4). Mr. Chapa indicated it was one of the lower income thresholds and thus, this resulted in a lot of people calling in to complain that they did not qualify. Chairman Jordan requested further clarification. Mr. Chapa indicated this was the regular dollars program that were coming in higher than the City had experienced in the past and it was also outside of the AARA Weatherization program. He added that the City staff was going to keep these funds totally separate tier monitoring purposes. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 6 of 21 Update on the Housing and Economic Development Department (cont'd) (Agenda Item 3) Mr. Chapa then reviewed the Housing Trust Fund information as follows: • Type of Work Performed: Substantial rehab and all Housing Quality Standards items • Income Eligibility: 80% Area Median Income • Spending Limit: $40,000.00 • Total Number of Clients to date: 5 completed rehabs Loans Status (as of May 24, 2009) • Funded: 6 • Closed (Construction Contract in Place): 7 • Loan Commitments: 1 • Pre-Qualified (Inspection/ERR pending): 62 • Application Received: 165 • Application Denied/Withdrawn: 199 • Total Applications Received: 438 Mr. Chapa provided a detailed explanation of the backlog in this program and the need to focus on finishing the 62 pre-qualified applications that need to be completed before moving forward. He emphasized the need to address the backlog. Mayor Moncrief spoke about addressing the backlog and that it was not an issue of addressing numbers but of addressing families with needs. HTF Program • 14 Construction processing complete • 5 Bid Packets received, waiting for Environmental Review completion • 9 Work Write-Ups out for bid • 2 Work Write-Ups being reviewed by supervisor • 3 Work Write-Ups in process of being completed • 24 referrals with appointments pending Mayor Pro tem Hicks spoke about her concerns with some of the families that did not qualify or that were rejected. She asked the staff to look again at the applications to make sure that they did not qualify. She added that she felt a number of home owners that she thought would qualify for the program were turned down. Mr. Chapa indicated that if she had specific names that she could provide to him, then lie would get the specific details. He referenced a specific check list that had to be accomplished. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 7 of 21 Update on the Housing and Economic Development Department (cont'd) (Agenda Item 3) Mr. Chapa reviewed the Emergency Repair Program as follows: • Type of Work Performed: • Priority 1 — Gas leaks, water leaks, sewer line breaks, major electrical problems, no heat (winter). • Priority 2 — Defective heat, minor electrical, minor water and sewer problems, storm-damaged roofs, structural problems. • Priority 3 — Damaged or nonfunctioning doors and windows, dangling sheetrock ceilings and other similar situations. • Income Eligibility: 35% of area median income • Spending Limit: $5,000.00 • Program Year 2007/2008 ■ 144 Clients Served ■ Spent $366,780.19 • Program Year 2008/2009 ■ 189 Clients Served to date ■ Spent $585,760.89 Mr. Chapa reviewed the Cowtown Brush Up Program as follows: • Contractors: Replace rotten wood, scrape old paint and prime walls in preparation for Paint Day. • Volunteers: Paint the house on Cowtown Brush Up Day • Income Eligibility: 35% of area median income • Total Number of Houses 2008: 146 • Save the Date: October 3, 2009 • Cowtown 2008 (October 4, 2008) 0 146 houses painted o Spent $251,201.00 o Average $1,720.00 per house • Cowtown 2009 (October 3, 2009) 0 186 houses to be painted o $372,000.00 estimated to be spent o Average $2,000.00 per house Mr. Chapa concluded his presentation. Chairman Jordan opened the floor for questions and or comments. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 8 of 21 Update on the Housing and Economic Development Department (cont'd) (Agenda Item 3) Mayor Pro tern Hicks requested information by Council district where the six (6) houses were located for the Housing Trust Fund dollars. Council Member Moss referred to the Cowtown Brushup Program and if the applications had been completed. Mr. Chapa indicated that the applications had been completed. He added that there had to be a cut-off date as the City had to go out for bids on the contractor. Council Member Burdette requested clarification on how the word gets out to the community on these programs. Mr. Chapa explained that it was through water bill flyers, Web page, neighborhood associations, town hall meetings, City Page, etc. Mr. Chapa advised of the need for a communication plan when the weatherization funds become available because of their concern of being able to get enough applications due to the income eligibility limit and all of the requirements in order to effectively spend the dollars. Council Member Burdette encouraged the use of the water bill flyer that goes directly to the homeowners. Council Member Moss felt it would be affective to form some alliances with groups in the community that could help in the process of pulling the necessary information together. He added that he understood from some of the people that he recommended apply for the program that they reported that it was a nightmare to get the information together working with the City staff and going through the paperwork process. Chairman Jordan expressed appreciation to Mr. Chapa for his presentation and referenced the recent audit on the program. He pointed out that there were three major areas of the program that were referenced those being: execution of the program, accountability of the program and inspection of the permits and that the work was being done. He suggested in future presentations that the update to the committee be provided in those three (3) main categories so that the committee can understand the progress that was being made in the department in order to get the problems under control. This concluded the presentation and discussion on this agenda item. Discussion of the Annual Audit of Incentive Agreements (Agenda Item 4) Mark Folden, Acting Economic Development Manager, spoke before the committee on the annual audit of the incentive agreements. Using a PowerPoint presentation, he presented the infornation: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 9 of 21 Discussion of the Annual Audit of Incentive Agreements (cont'd) (Agenda Item 4) Mr. Folden provided the presentation objectives as follows: • Explain the audit process for incentive agreements • Present information obtained during the 2008 audit of tax abatement agreements and economic development program grant agreements Mr. Folden presented the audit process as follows: • Courtesy reminder letters sent to companies in December • Companies submit information to be audited by February 1 st • City's Internal Audit Department reviews information and conducts audit, including site visits • Information is compiled for report and presentation Mr. Folden reviewed the 2008 Audit Summary as follows: • Tax Abatement Agreements o 17 agreements were audited ■ 14 performance specific agreements ■ 3 non-performance specific agreements • Economic Development Program Grant Agreements o 10 Agreements were audited He presented the 2008 Employment Summary Graph, the 2008 Fort Worth Business Participation Graph and the 2007 MWBE Participation Graph. Mr. Folden provided the audit findings for Tax Abatement Agreements as follows: Companies with Performance Specific Agreements Abatement Abatement Maximum Earned • Allied Electronics (2017) 100% 75% • Bell Helicopter-Textron (2010) 80% 80% • Ben E. Keith (2010) 75% 75% • Chase Operations Center (2015) 90% 25% • Coca-Cola Enterprises (2014) 90% 49°o • ConAgra Foods (2013) 851) -)So o • Cott Bev erages (2015) 10000 400 o CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 10 of 21 Discussion of the Annual Audit of Incentive Agreements (cont'd) (Agenda Item 4) • Cotton Depot Lofts (2015) 100% 100% • CUNA Mutual (2017) 75% 50% • JCPenney Distribution Center(2009) 90% 88% • Mattel, Inc. (2012) 100% 100% • Mother Parker's Tea/Coffee (2010) 80% 48% • OBIM Fresh Cut Fruit (2017) 100% 100% • Stockyards Station Hotel (2012) 100% 50% Non-Performance Specific Agreements Companies Meeting All Commitments Abatement Abatement Maximum Earned • Blackstone Hotel (2010) 100% 100% • Firestone Apartments (2009) 100% 100% • Villas by the Lake (2010) 75% 72% Companies with Performance Specific Agreements $ Benefit to $ Benefit to Company City • Allied Electronics (2017) $160,325.00 $53,441.00 • Bell Helicopter-Textron(2010) $327,424.00 $81,856.00 • Ben E. Keith $179,550.00 $59,850.00 • Chase Operations Center (2015) $101,605.00 $304,813.00 • Coca-Cola Enterprises (2014) $25,269.00 $26,300.00 • ConAgra Foods (2013) $26,095.00 $78,286.00 • Cott Beverages (2017) $93,114.00 $139,671.00 • Cotton Depot Lofts (2015) $117,819.00 - 0 - • CUNA Mutual (2017) $29,968.00 $89,904.00 • JCPenney Distribution Center(2009) $314,179.00 $43,860.00 • Mattel, Inc. $178,707.00 - 0 - • Mother Parker's Tea/Coffee (2010) $69,041.00 $76,309.00 • OBIM Fresh Cut Fruit (2017) - 0 - $3,309.00 • Stockyards Station Hotel (2012) $22,992.00 $22,992.00 Non-Performance Specific Agreements Companies Meeting all Commitments $ Benefit to $ Benefit to Companv City • Blackstone liotcl (21110) S222.894.00 - U - CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 11 of 21 Discussion of the Annual Audit of Incentive Agreements (cont'd) (Agenda Item 4) • Firestone Apartments (2009) $11,404.00 - 0 - • Villas by the Lake (2010) $45,980.00 $17,704.00 Total Financial Benefit $ Benefit to $ Benefit to Companies City As Earned $1,926,336.00 $998,295.00 At Maximum $2,615,957.00 $308,704.00 _ $689,591.00 to City Mr. Folden presented the audit findings for Economic Development Program Agreements as follows: Performance Specific Agreements Potential Maximum Percentage • Acme Brick 100% • Cabela's 67% • La Gran Plaza 100% • Montgomery Plaza Kimco 100% • Pier 1 90% • RadioShack 100% • Railhead Business Park 90% • Renaissance Worthington 100% • SuperTarget at Montgomery Plaza 100% • The Tower 100% Economic Development Program Grants: Acme Brick • Grant: 100% of personal property & sales taxes capped" • Earned 100% • Total Taxes Collected $929,134.00 • Grant Amount $619,423.00 • City Funds* $309,711.00 *('It h Fund, include,rc�enuc front propert" taxes. sales tares and hotel occupancy trier. \Ohcrr Ipplicah1c ** \greement I, tructurcd.o onh taxes generated tiom .ale.other 111.111 111 1 ort �k orth arc included in drtrrminino the grant CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 12 of 21 Discussion of the Annual Audit of Incentive Agreements (cont'd) (Agenda Item 4) Economic Development Program Grants: La Gran Plaza • Grant: 50% of real &personal property and 100% sales taxes capped • Earned 100%minus $14,473.00 • Total Taxes Collected $337,314.00 • Grant Amount $100,007.00 • City Funds* $237,307.00 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: Montgomery—Kimco • Grant: 100% of real property, business personal property& sales taxes capped • Earned 100%, but generated below cap • Total Taxes Collected$524,519.00 • Grant Amount $368,066.00 • City Funds* $156,453.00 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: Pier 1 • Grant: 90% of real &personal property taxes capped • Earned 80% • Total Taxes Collected $667,036.00 • Grant Amount $480,266.00 • City Funds* $186,770.00 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: RadioShack • Grant: 100% of real property taxes capped • Earned 60% • Total Taxes Collected TBD • Grant Amount TBD • City Funds* TBD *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes, where applicable Economic Development Program Grants: Railhead Business Park • Grant: 911°„ of real & personal property taxes capped, including interest • Earned capped maximum CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 13 of 21 Discussion of the Annual Audit of Incentive Agreements (cont'd) (Agenda Item 4) • Total Taxes Collected $537,844.00 • Grant Amount $537,844.00 • City Funds* $ - 0— *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: Renaissance Worthington • Grant: 100% sales &hotel occupancy taxes capped • Earned capped maximum • Total Taxes Collected $2,726,151.00 • Grant Amount $104,481.00 • City Funds* $2,621,670.00 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: SuperTarget at Montgomery Plaza • Grant: 100% of ad valorem & sales taxes capped • Earned capped maximum • Total Taxes Collected $565,412.00 • Grant Amount $403,168.00 • City Funds* $162,244.00 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: The Tower • Grant: 100% of real property taxes capped • Earned 100% • Total Taxes Collected $946,201.00 • Grant Amount $946,201.00 • City Funds* - 0 *City Funds includes net revenue from property taxes,sales taxes and hotel occupancy taxes,where applicable Economic Development Program Grants: Summary • Total Taxes Collected $8,241,105.00 • Total Grants $4,017,287.00* • Net Revenue to City 54,223,818.00 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 14 of 21 *Subject to outcome from Radio Shack Mr. Folden advised of the comparison of incentives to total ad valorem taxes: • CFW total appraised value of real & personal property: $54 billion • Estimated total real &personal property taxes $327 million • Estimated Sales $104 million • Estimated total ad valorem & sales taxes $431 million • Estimated total taxes abated/granted: $6.2 million • Percent of taxes abated/granted to total taxes 1.4% Mr. Folden advised of the next steps: • Provide notification to the Tarrant Appraisal District regarding the final abatement percentages. • Bring forward a Mayor and Council Communication to amend the contract with Villas by the Lake to reflect the lower Fort Worth employment. Mr. Folden concluded his presentation. Chairman Jordan opened the floor for questions and/or comments. Chairman Jordan requested that Mr. Folden return to the summary chart that he presented. Chairman Jordan indicated that what the chart did not show was the development that was stimulated by this project. He pointed out for an example, the Acme Brick Headquarters Building that relocated to Bryan Irvin Road and all of the stimulus that had occurred from that development going in at that location. He added the Cabella's development in north Fort Worth and the soon to be built Sam Moon's in north Fort Worth were other examples and would also bring development to north Fort Worth. He reiterated that what the chart did not show was the resulting development to certain areas and he asked if there was a way to measure that development in the future which has resulted from the investment. Mayor Moncrief indicated that what the chart shows was that the City's tool kit was working. He stated that while there were some developments that have not quite yet met their goals, for the most part those that have been brought forward to the Council for a recommendation have been contributing the amount that they indicated they would and the benefit was going to be seen in the City. Chairman Jordan added that it was important to note that the City was holding these developments accountable. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 15 of 21 This concluded the presentation and discussion on this agenda item. Briefing on the "Doing Business with the City of Fort Worth" Forum (Agenda Item 5) William Johnson, Assistant Director, Housing and Economic Development Committee, spoke before the committee on doing business with the City of Fort Worth Forum. He provided the Council with a simple flyer handout for "Save the Date! "Business Made Simple — The Fort Worth Way" for the City of Fort Worth's Business Information Forum to be held on Thursday, June 25, 2009, at the Will Rogers Memorial Center from 1:00 p.m. to 6:45 p.m. He explained the event to the committee, what goals were to be accomplished from the event and advised of the number of City departments that would be involved in this event. He advised that he wanted to show a video that had been prepared by City staff of the Community Relations Department. Chairman Jordan opened the floor for questions and/or comments before the video was shown. Council Member Burdette requested clarification on who was the audience that was trying to be targeted for this forum, i.e., people in the Metroplex or just Fort Worth. Mr. Johnson indicated that it was the North Central Texas geographic area. He added that specifically they wanted the Fort Worth based businesses, but beyond that as well. He clarified that it was any business that was interested in doing business with the City of Fort Worth or those businesses that are currently doing business with the City of Fort Worth but they need a better understanding of the internal business processes. Council Member Burdette suggested that the Fort Worth Chamber of Commerce be involved in providing outreach to people that might be interested in doing business with the City from outside Fort Worth, the Metropolex and even the State of Texas. Mr. Johnson clarified that they wanted to engage all of the stakeholders, including the Chambers of Commerce. He recognized members of the Metropolitan Black Chamber of Commerce who were present at the meeting. He also referenced partnering with the Hispanic Chamber of Commerce, Asian Chamber of Commerce, Fort Worth Chamber of Commerce and the American Indian Chamber of Commerce. Council Member Burdette suggested going to the states of Ohio and Michigan where they are having tough economic times and see if the City had anything to offer to them. He added that he felt the City needed to show what there is to offer in this part of the country and perhaps take advance of that situation. Mr. Johnson advised that the Metropolitan Black Chamber of Commerce was conducting a program to do exactly that and they were targeting some Ati-ican-,American companies that CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 16 of 21 Briefing on the "Doing Business with the City of Fort Worth" Forum (cont'd) (Agenda Item 5) were not currently located in the City of Fort Worth. He added that they were going to be taken on tours and informational sessions for several days to show them the benefits and advantages of relocating here to Fort Worth or setting up a satellite office here in Fort Worth. Council Member Burdette indicated that he felt it should be used as a selling point for the community. He added that he wanted to also make sure that the economy here did not falter and did bring in some people that would find opportunities. Chairman Jordan requested of Mr. Johnson that a report card be brought back to the committee on the results of the event and how successful it proved to be. He suggested the creation of several measurements that could be reported on. City staff showed the video that had been prepared for the event. Mr. Johnson concluded his presentation. Chairman Jordan opened the floor for questions and/or comments. There was no further discussion. This concluded the presentation and discussion on the agenda item. Discussion of Re-establishing Public Improvement District Number One (PID #1 -Downtown) and Establishing Public Improvement District Number Fourteen (PID #14—Trinity Bluff) (Agenda Item 6) Mark Folden, Acting Economic Development Manager, Housing and Economic Development Department, spoke before the committee on the re-establishing of Public Improvement District Number One (Downtown) and establishing Public Improvement District Number 14 (Trinity Bluff). Using a PowerPoint presentation, Mr. Folden advised that the presentation objectives were for the re-establishment of PID No. 1, the establishment of PID No. 14 and the staff recommendations regarding same. Mr. Folden reviewed the PID establishment procedures as follows: • Property owners submit petition for PID request • Petition must meet requirements: CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 17 of 21 Discussion of Re-establishing Public Improvement District Number One (PID #1 -Downtown) and Establishing Public Improvement District Number Fourteen (PID #14—Trinity Bluff) (cont'd) (Agenda Item 6) • More than 50% of the appraised value for assessment; and • Property owners liable for assessment under the proposal who constitute: • More than 50% of all owners; or • More than 50% of the land area • Public and Benefit Hearings • Public hearings to approve proposed budget and plan of service • Benefit hearings to approve proposed assessment rate • City Council approves the establishment of the new PID Mr. Folden reviewed the re-establishment of PID No 1 as follows: • PID 1 expires July 20, 2009 • Petition requesting re-establishment received April 30, 2009 • Petition has met the requirements for re-establishment He then reviewed the map of the proposed petition boundary. Mr. Folden then reviewed the PID No. 1 petition findings and advised that it does meet the requirements to be re-established. The petition showed: 1) Appraised Value 81% And 2) Number of properties/owners 40% Or 3) Acreage of properties represented 63% He advised that the City staff recommendation was: • Set public hearing for June 23, 2009 • Establish PID 1 for a 20-year-term Council Member Burns requested clarification as to whether the PID was re-established immediately once the public hearing was closed or at what point does the PID restart. Assistant City Attorney Vaky stated that the PID would be re-established following the current expiration CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 18 of 21 Discussion of Re-establishing Public Improvement District Number One (PID #1 -Downtown) and Establishing Public Improvement District Number Fourteen (PID#14—Trinity Bluff) (cont'd) (Agenda Item 6) date. Council Member Scarth asked about the primarily length of time involved in the PID the first time and if it was for 20 years. City staff indicated that it was five (5) years initially. Mr. Folden continued his presentation with review of establishment of PID No. 14 (Trinity Bluff) as follows: • Petition requesting establishment received in December 2008 • PID 14 petition verified by City staff to meet the requirements for establishment He reviewed the map of the proposed petition boundary map for PID No. 14 (Trinity Bluff). Mr. Folden reviewed the PID No. 14 petition findings as follows: 1) Appraised value 100% And 2) Number or properties/owners 67% Or 3) Acreage of properties represented 99% He pointed out that he understood that PID No. 14 was now under one property owner. Mr. Folden advised that the recommendation was to: • Set public hearing for June 16, 2009 • Establish PID 14 for 20-year-term Mr. Folden advised that the recommendation was to: • Present Mayor and Council Communications for City Council consideration for: • Establishing PID 14 (Trinity Bluff) on June 16, 2009 • Re-establishing PID 1 (Downtown) on June 23, 2009 Mr. Folden concluded his presentation. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 19 of 21 Discussion of Re-establishing Public Improvement District Number One (PID #1 -Downtown) and Establishing Public Improvement District Number Fourteen (PID #14—Trinity Bluff) (cont'd) (Agenda Item 6) Chairman Jordan opened the floor for questions and/or comments. Mayor Moncrief pointed out that this tool in the City's tool kit was working very well also. He stated that both of the referenced PID's had increased in value and poured dollars right back into the development area. He pointed out that there was no way to really measure what the overall benefit had been, but he expressed his continued support of approval of the PID's at the appropriate time. Council Member Burns indicated that these were tools that are layer on top of others and the Council hadseen the positive impact in the Downtown area. Chairman Jordan recognized and welcomed Mr. Tom Struz, the property owner in PID No. 14 who was in the audience and he also advised that it was going to be difficult to keep up with the Fort Worth skyline with all of the development that was taking place. This concluded the presentation and discussion on this agenda item. Consideration of Written Reports (Agenda Item 7) Chairman Jordan advised of the following written reports that had been provided to the committee as a matter of information: • Mid-year budget Revisions for Public Improvement Districts • Update on the Minority and Woman-owned Business Enterprises (MWBE) Availability and Disparity Study and the MWBE Advisory Committee. Jay Chapa, Director of Housing and Economic Development Department, advised of a correction to the mid-year budget revisions for Public Improvement Districts. He stated that PID No. 7 was listed as receiving an adjustment. He stated City staff was to bring forward an adjustment concerning additional dollars from Parks and Community Services. He stated that transaction was not going to take place. He stated that it was not coming forward now and would be part of next year's budget process. These reports were received as a matter of information. There was no discussion andior comments made on the reports. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 20 of 21 Request for Future Agenda Items (Agenda Item 9) Council Member Burdette brought up the issue of PID's and indicated that there was a PID established in the Chapel Hill Housing Development, located north of Saginaw, located in his district. He stated that he had been contacted by several residents in that area expressing concerns about the PID. He then referenced a report provided by the City Auditor about the subject PID and that it was established about one and half years ago by the developer and not by the homeowners at the time. He added that approximately $50,000.00 in taxes had been collected. Council Member Burdette pointed out that as of this date, there had not been a contract between the developer and the City regarding this PID. He added that there had been a slip up somewhere about collecting the taxes and then getting improvements put on the ground. He stated that he would like a report on that issue, but not necessarily back to the committee, but to him as the district representative. He stated that the citizens were wondering where the money had been going for a year and half. Chairman Jordan requested the report be provided. Date of Next Regular Meeting— August 4, 2009 (Agenda Item 10) Chairman Jordan advised that the next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, August 4, 2009. Adiourn (Agenda Item 11) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 2:33 p.m., on Tuesday, June 2, 2009. These minutes approved by the Economic and Community Development Committee on the 4"' day of August, 2009. APPROVED: JJgus TJdan. Chai an CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE JUNE 2, 2009 Page 21 of 21 Minutes Prepared by and Attest: Marty Hendri ity S