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HomeMy WebLinkAbout2009/08/04-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Present: Council Member Jungus Jordan, Chairman Council Merriber Carter Burdette, Vice Chairman Mayor Mike Moncrief Council Member Salvador Espino Council Member W. B. "Zim" Zimmerman Mayor Pro tern Danny Scarth Council Member Frank Moss Council Member Kathleen Hicks Council Member Joel Burns 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 Ardina Washington, Economic Development Manager, Housing and Economic Development Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Other City Staff in Attendance: Vicki Ganske, Senior Assistant City Attorney, Legal Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department William Johnson, Assistant Director, Housing and Economic Development Department, M/WBE Division Dolores Garza, Economic Development Specialist, Housing and Economic Development Department With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Committee to order at 1:1 S p.m., on Tuesday, August 4, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the June 2, 2009, Housing and Economic Development Committee (Agenda Item 2) CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 2 of 8 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 Council Member Espino, the Committee Members voted nine (9) "ayes" and zero (0) "nays", to approve the minutes of the June 2, 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 1:19 p.m. in accordance with the requirements of the Texas Open Meeting Act. Executive Session (Agenda Item 7) Chairman Jordan called to order the Executive Session at 1:19 p.m. in order to discussion the following items: A. Seek the advice of its attorneys concerning the following item that is exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code: (i) legal issues related to any current agenda items; B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party; and, C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Chairman Jordan adjourned the Executive Session at 2:05 p.m. Chairman Jordan reconvened the called — special session of the Housing and Economic Development Committee at 2:05 p.m. Chairman Jordan returned to the next agenda item, Agenda Item 3. Consideration of Written Reports (Agenda Item 3) A. Inrcntive Program Report Card CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 3 of 8 Consideration of Written Reports (cont'd) (Agenda Item 3) Chairman Jordan advised that the Incentive Program Report Card was being distributed to the City Council Members. Jay Chapa, Director of Housing and Economic Development Department, distributed to the City Council Members a post card titled: "Fort Worth Incentive Programs". The card explained what a tax abatement was; explained an economic development program agreement; what happens if the agreements were not met; what the benefits were to the company and what the benefits were to the City. On the back of the card, there was information on the 2008 performance, showing additional information on the employment summary, and M/WBE business participation and the Fort Worth Business participation. Chairman Jordan opened the floor for discussion and/or comments. Council Member Burdette expressed appreciation and added that he felt this was a useful tool for the Council and the citizens. The report had good information and was in a simple format. He stated that the Council always gets questions about the program and there were also misconceptions about the program. Council Member Moss requested clarification about whether the NEZ Programs were explained on the card. Mr. Chapa explained that it was just information on the City's 380 agreements and regular tax abatement program. Council Member Moss requested reports on what the City has realized, by City Council Districts, on the NEZ Program. He added that he felt the results of that program were really significant considering the amount of money that the City was providing in order to put those projects in place. Mr. Chapa explained that staff was currently working on this information. This concluded the presentation and discussion on this agenda item. Update on the Housing and Economic Development Department Operations (Agenda Item 4) Mr. Jay Chapa, Director of Housing and Economic Development Department, spoke before the committee on the departmental update for the Housing and Economic Development Department's Operations. Using a PowerPoint presentation, he reviewed the following information: Staffing Update: • Mark Folden promoted to Manager of the Rehab and New Construction Section of the Department CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 4 of 8 Update on the Housing and Economic Development Department Operations (cont'd) (Agenda Item 4) • Joe Cordova hired from Community Relations Department to the lead Weatherization Section as a Supervisor of program—ARRA • Ardina Washington, Manager over Economic Department, resigning effective August 14, plan is to fill position as soon as possible • Advertised the following positions and currently interviewing— Plan to fill by end of August early September: • Housing & Community Development Manager— Projects • Sr. Administrative Services Manager—Management/Budget Section • 2 Economic Development Specialists—Projects • Economic Development Coordinator—Eco. Dev. Section • Economic Development Coordinator—Real Property Section o 2 Rehab Technicians—Rehab and New Construction HUD Related Activities Update • Action Plan Approved by HUD • Consolidated Annual Performance Evaluation Report (CAPER) due August 31, 2009. • Office of Inspector General review near completion (exit conference and report) • HUD monitoring • Housing Counseling Grant (waiting for report) • Environmental Reviews (exit conference &report) • Evans-Rosedale EDI review end of August ARRA Grants Update • CDBG-R—grant approved and awarded • Homelessness Prevention & Rapid Re-Housing Program (HPRP) Grant o $2.7 million o HUD Approved July 2, 2009 o Community Development Council reviewing potential service providers o Council to consider M&C to authorize the execution of contracts with CDC recommended service providers August 18, 2009 • Weatherization Grant — application submitted, expect notification in August/September($13.7 million) • ALERT Grant (Lead Remediation Grant) — application submitted, expect notification September'October Mr. Chapa concluded his presentation. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 5 of 8 Update on the Housing and Economic Development Department Operations (cont'd) (Agenda Item 4) Chairman Jordan opened the floor for questions and/or comments. Chairman Jordan recognized Ardina Washington and expressed appreciation for her years of service at the City and extended best wishes for her and her husband, Mark Washington, who were moving to Austin, Texas. Chairman Jordan also commended Mr. Chapa for getting the Action Plan in on schedule. Council Member Burdette stated that he noticed that there were a number of positions that they were currently interviewing for in the department. He referenced the fact that the budget process is coming up and there will be a need to cut certain positions and find those employees other jobs in the City. He added that he hoped that filling those positions would coordinate with the positions that are being eliminated, similar to what the City did last year. Mr. Chapa clarified that there were certain positions that were only being advertised for applicants that were internally within the City. This concluded the presentation and discussion on this agenda item. Update on Public Improvement District Number Twelve (PID No. 12 -Chapel Hill) (Agenda Item 5) Ardina Washington, Economic Development Manager, Housing and Economic Development Department, provided an update on Public Improvement District (PID) Number 12 (Chapel Hill). Using a PowerPoint presentation, Mrs. Washington presented the following information: Presentation Objectives • Overview of PID No. 12 (Chapel Hill) • Update on Communities Management Associates (CMA) • Staff Recommendations PID No. 12 - Chapel Hill • Established in 2004 with an option to re-establish or dissolve when development was completed • Managed by Community Management Associates, Inc. • 2009 Budget - $78,000.00 • 2009 tax rate $0.190/$100.00 valuation • Council District 7 - Carter Burdette CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 6 of 8 Update on Public Improvement District Number Twelve (PID No. 12 —Chapel Hill) (cont'd) (Agenda Item 5) • Service contract includes maintenance, landscaping, holiday lighting, marketing and special events Ms. Washington showed a map of PID No. 12 — Chapel Hill and identified the boundaries of the PID. She provided an update on Community Management Associates (CMA), management company for PID No. 12. • City Council authorized execution of the management agreements with CMA, not the neighborhood association • CMA requested that the neighborhood association be the party to the Agreement due to the City's indemnification clause • Staff reviewed possibility of using a different management group or dissolution of PID and alerted the developer and CMA of this review • Premier Communities was interested in managing PID No. 12. They currently manage PID 6 (Park Glen) and PID 7 (Heritage). • The developer, Reality Capital, did not agree with replacing CMA. • CMA chose to sign agreement and serve as manager. Ms. Washington presented the staff recommendations as follows: • City should execute agreement that CMA has signed • Review CMA performance to determine adequacy of management Ms. Washington concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. Council Member Burdette stated that this was a case where there was a homeowner's association developed as a result of the City's engagement with the home developer. He pointed out that due to the economic conditions, this development had not been completed to date. He added that currently there were no new homes being built. He recommended that the City Council give some consideration to changing their policy on these types of PIDS's because five (5) years has lapsed since it was established and they are just now getting the management company in place. He stated that what has happened in this situation was that the City had been collecting the tax from the homeowners for five (5) years and the money had just been sitting there. He added the homeowners requested some intOrnnation as to Midi was their money going CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 7 of 8 Update on Public Improvement District Number Twelve (PID No. 12 -Chanel Hill) (cont'd) (Agenda Item 5) to be spent on the amenities that they were sold on when they bought their homes. Mr. Burdette added that he felt the Council should give consideration in the future that when these PID's were established that there be some requirement that the PID be established and put into operation with a competent PID manager within a certain period of time. He stated that what they were faced with here was to either get a new PID manager, who would agree to sign the City's standard agreement, or to dissolve the PID. He added that hopefully this PID was now going to get off of the ground. He added he hoped that the CMA's refusal to sign the agreement up until now did not foretell some difficulties with them in the future. He stated that he felt the City needed to keep a close eye on their operations, as Ms. Washington had stated, and that he hoped that they would go forward under the terms of the agreement and do what they were suppose to do. Mr. Burdette concluded his statement in that he was glad that they had gotten over this hump and he hoped that the citizens in Chapel Hill would soon see their dollars going to the purposes that they were collected. Ms. Washington clarified that the PID assessment had only been collected for a period of two years. She added that the PID was established in 2004; however, the funds were not collected in 2008. This concluded the presentation and discussion on the agenda item. Discussion of Proposed Economic Development Program Agreement with Dollar General (Agenda Item 6) Chairman Jordan advised that this agenda item would be passed over. Request for Future Agenda Items (Agenda Item 8) Council Member Burdette requested that the City staff take a look at the PID policies, as he had requested under the previous agenda item. He added he would like to come up with some recommended standards from the staff on how an outline should be set in order to not run into this problem again where a PID was established and not put into operation within a certain period of time. Chairman Jordan requested a status report on the audits of the tax abatements and TIF's. Mr. Chapa clarified that the audit was presented in the month of June. He added that the report cards passed out earlier in the meeting were the results of that audit. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE AUGUST 4, 2009 Page 8 of 8 Date of Next Regular Meeting is September 1, 2009 (Agenda Item 9) Chairman Jordan advised that the next regular meeting of the Housing and Economic Development Committee would be held on Tuesday, September 1, 2009. Adiourn (Agenda Item 10) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 2:21 p.m., on Tuesday, August 4, 2009. These minutes approved by the Economic and Community Development Committee on the I" day of September, 2009. APPROVED: J gus J an, C rman i Minutes Prepared by and Attest: Marty Hendrix, ity Secretary