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HomeMy WebLinkAbout2009/09/01-Minutes-HEDC CITY OF FORT WORTH CITY COUNCIL HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Present: Council Member Jungus Jordan, Chairman Council Member Carter Burdette, Vice Chairman Council Member Salvador Espino Council Member W. B. "Zim" Zimmerman Mayor Pro Tem Danny Scarth Council Member Frank Moss Mayor Pro tem Kathleen Hicks Council Member Joel Burns Absent: Mayor Mike Moncrief City Staff: Tom Higgins, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Dana Burghdoff, Deputy Director of Planning and Development Department Jay Chapa, Director of Housing and Economic Development Department Ana Montanez, Economic Development Specialist, Housing and Economic Development Department Other City Staff in Attendance: Carl Smart, Executive Assistant to the City Manager Vicki Ganske, Senior Assistant City Attorney, Legal Department Sarah Fullenwider, Assistant City Attorney, Legal Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department Dolores Garza, Economic Development Specialist, Housing and Economic Development Department Hermosillo Ossana, Business Development Coordinator, Housing and Economic Development Department Susan Alanis, Director of Planning and Development Department CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 2 of 18 With a quorum of the committee members present, Chairman Jungus Jordan called the meeting of the Housing and Economic Committee to order at 1:35 p.m., on Tuesday, September 1, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas 76102. Approval of Minutes of the August 4, 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 Mayor Pro tem Scarth and seconded by Council Member Moss, the Committee Members voted eight (8) and zero (0) "nays", with Mayor Moncrief absent, to approve the minutes of the August 4, 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 1:35 p.m. in accordance with the requirements of the Texas Open Meeting Act. Executive Session (Agenda Item 3) Chairman Jordan called to order the Executive Session at 1:35 p.m. in order to discuss the following items: A. Seek the advice of its attorneys concerning the following items that were 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. Chainnan Jordan adjourned the Executive Session at 2:17 p.m. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 3 of 18 Chairman Jordan reconvened the called — special session of the Housing and Economic Development Committee at 2:17 p.m. Chairman Jordan returned to the next agenda item, Agenda Item 4. Consideration of Written Reports (Agenda Item 4) A. TECH Fort Worth Quarterly Report This report was received as a matter of information. There was no discussion on the report. Discussion on Limiting the Use of Corrugated Metal Cladding on Commercial Buildings (Agenda Item 5) Dana Burghdoff, Deputy Director of Planning and Development Department spoke before the committee on the proposed commercial metal exterior standards. She advised that over a year ago, the City Council had requested that the City staff look at construction materials that were used as siding on commercial buildings. She pointed out that in particular there were some new buildings being constructed on the Northside, in District 2, with metal exteriors. She added that recently there were other projects being developed on Hemphill Street that again brought this issue to the forefront. Ms. Burghdoff advised that the City staff had worked with the Development Advisory Committee (DAC) and her presentation included those recommendations. Ms. Burghdoff advised that the purpose of the presentation was to: • Review a potential Zoning Ordinance amendment related to the use of exterior metal cladding on commercial buildings. • Receive guidance in advance of the proposed public hearing process. Ms. Burghdoff explained the reason staff was recommending an ordinance amendment as follows: • In 2008, the City Council requested that staff address exterior metal building standards in response to a Council Member's concern. • Staff has met frequently with the Development Advisory Committee and metal cladding contractors to determine appropriate standards. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 4 of 18 Discussion on Limiting the Use of Corrugated Metal Cladding on Commercial Buildinpas (cont'd) (Agenda Item 5) Ms. Burghdoff advised of the definition of "cladding" and presented photographs of certain metal cladding preferences. She explained that the photographs on the left of the presentation represented cladding designs that were not desired and designs that were desired were shown on the right as follows: • Not Desired • Corrugated and non-architectural metal • Exposed fasteners • Flat front with no features • Desired • Smooth and architectural metal • Concealed fasteners • Architectural features, including articulation and use of other materials Ms. Burghdoff explained the definition of a""standing seam" and that it was an attractive feature of desired metal cladding because it concealed the fasteners, had a higher cost and was often used in metal roofing and metal siding. She then showed pictures of examples of the metal cladding preferences and examples of the architectural details. She also showed photographs of buildings with examples of desired architectural metal cladding. She pointed out that metal cladding could be used effectively and had been used on various buildings both commercial and residential throughout the City. Ms. Burghdoff provided a clarification that the City staff was only talking about the metal siding and not the metal framing of a building or roofing,just the metal siding. Ms. Burghdoff presented the proposed amendment as follows: 1. Apply to commercial buildings in commercial zoning districts (excluding big box buildings that have their own standards). 2. Require architectural metal cladding (standing seam, etc.) with concealed fasteners on building front and any sides facing a public street. 3. Require two architectural features (e.g. use of other exterior materials, articulation, front porch, gable, awnings, etc.). 4. Provide that requests for waivers to the standards be heard by the Urban Design Commission. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 5 of 18 Discussion on Limiting the Use of Corrugated Metal Cladding on Commercial Buildings (cont'd) (Agenda Item 5) Ms. Burghdoff explained that these buildings can be located in commercially-zoned areas as well as industrially-zoned areas. She explained that the recommendations were only for buildings that were located in commercial areas. She pointed out that if desired, the City Council might wish to apply the standards to commercial buildings in industrial zoning districts also. Ms. Burghdoff advised of the next steps as follows: • September 1 - City Council's Housing and Economic Development Committee receives briefing. • October 14—Zoning Commission conducts public hearing on text amendment. • November 3 — City Council conducts public hearing and votes on text amendment. Ms. Burghdoff concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. Council Member Espino expressed appreciation to Ms. Burghdoff for her presentation. He advised of an adult day care center located on the Northside in his district that had the metal exterior. He advised of the excellent service provided by the business but of his disappointment of the looks of the exterior of their building and the fact that it was adjacent to an historical residential area. Mr. Espino added that he felt the recommendation was good and he supported it and he wanted to move forward. Mr. Espino added that regarding the question of requiring in industrial-zoned districts, he pointed out that a lot of the older neighborhoods were located adjacent to industrial areas and he questioned whether this could also apply to those areas where they were just adjacent to residential areas. He indicated that it was not his intent to require it in industrial areas that were not adjacent to any other uses. He indicated his interest to move forward with the recommendation and asked the staff to see what they could propose for industrial areas that were just located adjacent to residential areas. Council Member Espino added that he felt the wavier option allowed for architectural creativity. Council Member Burns indicated that he agreed with the recommendation and for the waiver process through the Urban Design Commission (UDC). He questioned Ms. Burghdoff on whether she could elaborate on what the Development Advisory Committee had indicated as to their concerns regarding the restrictions in an industrial area. Ms. Burghdoff indicated that she had not heard a strong opposition about the restrictions in an industrial area. She added that most CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 6 of 18 Discussion on Limiting the Use of Corrugated Metal Cladding on Commercial Buildings (cont'd) (Agenda Item 5) of the residents in the City did not know about the zoning districts and when they saw a commercial building, they really did not know whether it was in a commercial district or an industrial district. Council Member Scarth indicated that the Council should be prepared and willing to be fluid. He pointed out that there could be unintended consequences with these requirements after they were put into place. Council Member Scarth pointed out that each time an additional requirement was added by the Council, it adds more costs and more complications for the developers. He added that he supported the idea of not having a metal building in the middle of a commercial development; however, he reiterated there may be unintended consequences down the line. He added he also supported the waivers being reviewed by UDC as that Commission appeared to understand reasonableness. Ms. Burghdoff added that she felt this was a way to also monitor what was being asked for in waivers and thus if changes were needed to the requirements, this could be done in the future. Council Member Espino talked about applying and moving forward with the recommendation to just commercial uses in commercial districts for now and then after a year's time, the City staff working with the DAC and UDC could look at the issue of adding the recommendation to industrial zoning districts located near residential areas, again after having a one (1) year's experience with this process. Council Member Burdette indicated that the word "attractive" had been used on numerous occasions and what it came down to with the word "attractive" was the question of, "What is attractive?" He pointed out that what was attractive to one person may not be to the next person. Council Member Burdette pointed out that individuals that develop businesses in commercial-zoned districts depend upon making money and it should be up to the business owner to decide on how the exterior of their building should appear to attract business. He referenced the photograph examples that had been shown with the additional architectural features added to the metal siding. He indicated that it appeared to him that those business owners wanted to attract more customers and the appearance of their buildings looked nice to him. Council Member Burdette stated that he agreed with the comments that had been made by Council Member Scarth and that was if the Council continued to add more and more restrictions for developers and business owners then the businesses will move three (3) blocks down the street into another city. He pointed out that there were a number of other cities that are located adjacent to the City of Fort Worth. He stated he had heard from a number of builders who have indicated that it was easier for them to take their businesses to some other locations. He stated CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 7 of 18 Discussion on Limiting the Use of Corrugated Metal Cladding on Commercial Buildings (cont'd) (Agenda Item 5) he felt this could result in unintended consequences. He added that he does not support the recommendation as a matter of principle. Chairman Jordan added that he "almost" agreed with Council Member Burdette, but not quite. Council Member Jordan indicated that to him it appeared that as land uses approach residential areas, it seemed to him to be a zoning issue rather than an aesthetics issue. He felt the Council should go through the public process and work this out. Chairman Jordan indicated that to him it states that there were commercial uses that were too close to the residences. He felt the zoning of the property might need to be addressed rather than the aesthetics of the commercial- zoned properties. Chairman Jordan concluded by stating that what he heard from the Council was go forward with the public process. This concluded the presentation and discussion on this agenda item. Proposal to Sell Tax Foreclosed Properties (Agenda Item 6) Jay Chapa, Director of the Housing and Economic Development Department, spoke before the committee on his presentation regarding a recommendation on the sale of tax- foreclosed property. Mr. Chapa indicated that his presentation overview included: • Provide recommendation regarding the sale of tax-foreclosed property • Basis of recommendation • Proposed targeted areas • Timeline to implement plan Mr. Chapa stated that the issue was: • Tax foreclosure properties result in: • Loss of tax revenues • Maintenance costs • Illegal dumping and illicit uses • Loss of opportunity for development • Inefficient use of limited personnel resources on management of properties CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 8 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) He advised that the recommendation was to: • Create target development for areas for land banking by the City for new development and redevelopment • Allow only direct sale of properties in proposed targeted areas that ensure quality development • Utilize priority foreclosures in targeted areas to increase land banking properties • Conduct City wide bid sale of properties outside targeted areas to reduce inventory to a more manageable number of properties Mr. Chapa showed a map of each Council district and identified the properties that were in foreclosure as represented by red dots on the maps. Mr. Chapa then presented the following chart showing the number of properties in each district and the appraised value totals. Inventory Council District # of Properties TAD Value 2 121 $3,372,745 3 6 273,313 4 17 339,093 5 360 6,889,972 6 7 540,315 7 96 3,190,049 8 371 6,555,468 9 49 834,749 Total 1027 $21,995,704 Mr. Chapa then presented information on the loss of tax revenues as follows: • TAD Value - $21,995,704.00 • Tax Rate— 0.855 per $100.00 • Sell 75% of the tax foreclosed property • Potential revenue to City - $141.047.45 Project amount collected may be reduced because of the homestead exemption inapplicable CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 9 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) o Revenue will increase as properties are improved He presented the projected revenue from sale of the properties: • Assume sell 75% of the tax foreclosed properties • City receives approximately 30% of the sales price • Estimated revenue $1,780,893.75 Mr. Chapa pointed out the property management expenses as follows: • Police Department • Fire Department • Legal Department • Parks & Community Services Department • Code Compliance Department • Environmental Department • Housing & Economic Development Department He reviewed the detailed statistical information for the following City departments: Police Department (2003-2009) • The Police Department received a total of 6,751 telephone calls for service from citizens • Types of Calls: • Disturbance • Burglary • Intoxicated persons • Suspicious persons and homeless Fire Department (2006-2009) • The Fire Department responded to a total of 230 incidents Types of calls: o Fires—buildings, dumpster, rubbish on the property o Fireworks violations o Smoke scare, odor of smoke CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 10 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) Fire Department (230 Incidents) • Number of units/trucks responded per incident— 1.9435 Trucks • Number of Person Hours per Incident—4.156 Hours • Total cost for labor and equipment (fire truck) cost only - $182,209.80, Cost/Incident $792.22 • Total cost including indirect/overhead such as maintenance, fuel, etc. - $222,817.10, Cost/Incident $968.77 *In some instances multiple units responded to one incident. Parks & Community Services—Mowing of Tax Foreclosed Properties • 2007: • Properties— 859 • Mowing Cycle—35 days • Cost - $48.70 • Total $418,333.00 • 2008: • Properties—983 • Mowing Cycle—28 days • Cost - $48.97 • Approximate Total - $529,512.00 (Based on number of times mowed) • 2009: • Properties— 1027 • Mowing Cycle—28 days • Cost - $48.14 • Approximate Total - $543,837.00 (Based on number of times mowed) Code Compliance Department— Clean up and Abatement of Tax Foreclosed Properties • Clean up and Abatement Costs: • FY 07-08 - $27,280.00 • FY 08-09 - $17,740.00 to date Environmental Department (2006-2009) • The Environmental Department Received 398 work orders for illegal dumping on tax foreclosed properties Environmental Department (Debris Removal Charges) • The average cost per property is $750.00; CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1,2009 Page 11 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) o First 5 Cubic Yards - $75.00 + $6.19 (sales tax) = $481.19 (includes an administrative and Water Department Fee) 0 6 CY— 10 CY - $140.00 + $11.55 (sales tax) = $151.55 0 11 CY— 15 CY - $205.00 + $16.91 (sales tax) = $221.91 Eviction Costs • Currently reviewing over 30 evictions • The average cost of eviction expenses range from $500.00 to $5,000.00 o For example: The cost associated with a July 2009 eviction for Tax Foreclosure property located at 5428 Carver cost $5,043.92 and took 8 days to complete the clean-up Mr. Chapa presented slides that showed the proposed targeted areas by Council District. He indicated that the City staff was proposing that each district have two or three target areas. His staff provided to each Council Member larger maps so the Council Members could better see the targeted areas. He advised of the color-coding on the maps of the targeted areas where direct sales would take place. He reviewed each Council District map in detail and identified the areas. Mr. Chapa presented photographs of houses that were of concern to the Council and residents. He identified them as modern day "shot gun" houses. He pointed out one example of the house layout was where a person would have to walk through a bedroom to go to the living room. He reviewed the timeline for bid sales as follows: • Finalize targeted areas with Council Members (Sept. —Oct.) • Bid Sales for all non-targeted area properties • Develop bid sale documents (Sept. —Dec.) • Commence sales of properties in 2010 once Planning and Development Department's committee work on potential design standards for single-family homes • Strategic Planning for targeted areas • Priority foreclosures (2010) • Marketing materials for properties in targeted areas (2010) Mr. Chapa concluded his presentation. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 12 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) Chairman Jordan opened the floor for questions and/or comments. Chairman Jordan indicated that the Council had talked about surplus properties for a number of years and this was the first time the Council had seen a well thought out plan to address the concerns of the Council and the citizens. Council Member Burdette indicated that he was not clear on how all of this would work; however, he applauded the City staff for moving forward on this plan. He added that this had been a big concern for a period of time in all parts of the City, particularly in certain parts rather than others. Council Member Burdette added that the problem had been exacerbated by the down turn in the economy. Council Member Burdette pointed out that from the presentation, the Council could see what this problem was causing the City of Fort Worth taxpayers both in costs to the City and lost revenues to the City. He talked about the opportunities to sell the properties to developers to get them back on the tax rolls. Council Member Burdette indicated that he was interested in seeing more of the details of how the work would begin in the target areas. He indicated that this was going to require some packaging of properties; some efforts to find a buyer or buyers who would show an interest in buying these properties and getting them redeveloped. He concluded his statements by applauding the City staff on the work that they had done on this plan and he felt it was a step in the right direction. Council Member Hicks indicated that she concurred with the comments thus far. She pointed out on the city-wide map that while this was a concentrated problem in the Central City, it existed throughout the entire City. She pointed out the issues with loosing tax revenues and the additional costs the City had for these properties and the problems that the Police and Fire Departments faced with these properties. Council Member Hicks indicated that a reduction in the number of tax foreclosed residential properties on the books would certainly increase the commercial development. She referenced her map in District 8 and pointed out the Terrell Heights area. She indicated that Mayor Moncrief and Council Member Espino had expressed their concerns with moving forward on the construction of the six (6) homes in the Terrell Heights area; however, her point was that it was ridiculous that there was a waste land area just two exits up from the Downtown area. She indicated her interest that people know that this was a city-wide issue and not just in a particular area of the City. Council Member Hicks pointed out the Poly area and that once it was Anglo, then became African-American and is now mainly Hispanic. She added her concern for the housing that was going on in that area. She explained that area was represented by her and Council Member Moss and she felt that it needed to be rezoned because she was concerned that people living in that area were being abused with subpar housing. Council Member Hicks indicated that she hoped everyone stayed the course on this plan and that everyone would benefit from it. She pointed out the benefit of getting the CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1,2009 Page 13 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) properties back on the tax rolls and creating areas of quality affordable housing. Council Member Moss indicated that he felt it was a good plan and the Council needed to move forward on it. He explained that one of his concerns was assembling a number of the vacant properties and surrounding vacant properties into packages that could be sold to developers where the developers could come in with a plan. He referenced discussions held on the commercial properties as the City moves to general sale of the properties and that the Council had talked about dealing with Southeast Fort Worth, Inc. He pointed out that outside of the target areas there were quite a few valuable commercial properties where the City did need to get Southeast Fort Worth, Inc., involved in order to identify some potential users. Mr. Chapa interjected that the City staff continued to work with Southeast Fort Worth, Inc. He indicated that the City staff was identifying properties that perhaps the Local Development Corporation should target. Council Member Moss reiterated that he had seen on the map several prime commercial properties and he wondered why developers had not approached the City about these properties. He added those properties need to be moved as well. Council Member Espino commended Mr. Chapa and the City staff on this work and added that the Council had been looking for a comprehensive plan and this appeared to be it. He felt the targeted areas had been properly identified for redevelopment through the City staff working with each Council Member and the other stakeholders. He added that he felt each Council Member shared the goal of revitalization and redevelopment not only in the Central City but in the older areas throughout the City. He indicated that he also liked the fact that Mr. Chapa and his staff were forward thinking on transit-oriented development in order to preserve those necessary buffer areas where the City wanted this type of development. He stated he concurs with Ms Hicks that these issues were located all over the city. He added he wanted to clarify for the record the statement made on the Terrell Heights development. He indicated that the Council was supportive of that development and other similar developments throughout the City; however, there were concerns for low number of purchased homes and the marketing efforts and keeping the momentum going. He indicated that the Council had always supported development and redevelopment and certainly in the area of Southeast Fort Worth. He added he looked forward to moving forward with the plan and he commended the City staff again. Council Member Hicks indicated that she appreciated Council Member Espino's comments and indicated that they were surprising comments to her. She questioned Mr. Chapa on the tax foreclosed properties and if they were all residential and not commercial. She questioned whether the commercial properties would be put up for sale. Mr. Chapa indicated that if the properties were not in the target redevelopment areas, then they would be put up for CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 14 of 18 Proposal to Sell Tax Foreclosed Properties (cont'd) (Agenda Item 6) sale. Council Member Hicks questioned whether the appropriate Council Member would be notified. Mr. Chapa indicated that the staff was looking at those properties for consideration of purchase by the Local Development Corporation. He reiterated that they would be putting all properties out of the target areas on the bid sales. This concluded the presentation and discussion on the agenda item. Consideration of an Enterprise Project Designation for Alcon Laboratories, Inc., and Alcon Research, Ltd., 6201 South Freeway Fort Worth, Texas 76134 (Agenda Item 7) Ana Alvarado, Economic Development Specialist, Housing and Economic Development Committee, spoke before the committee on the Enterprise Project Designation for Alcon Laboratories, Inc., and Alcon Research, Ltd. Chairman Jordan indicated that there was a nice article about Alcon Laboratories, Inc., in the newspaper recently. Ms. Alvarado indicated that she had the article with her. Chairman Jordan asked Council Member Hicks if she wanted to make any comments on this project. Council Member Hicks indicated that she had not been briefed on this presentation so she was not aware of this request. She added she would hear the presentation along with the rest of the Council. Ms. Alvarado provided an overview of her presentation as follows: • Alcon Overview • Background of the Enterprise Zone Program • Alcon Laboratories, Inc. —request for Enterprise Designation • Alcon Research, Ltd. —request for Enterprise Designation • Next Steps She explained that these were two companies at the same location requesting separate designations. Ms. Alvarado provided an overview of Alcon as follows: • Alcon Laboratories, Inc., and Alcon Research, Ltd., are situated just east of Interstate 35W offof South Freeway CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 15 of 18 Consideration of an Enterprise Project Designation for Alcon Laboratories, Inc., and Alcon Research, Ltd., 6201 South Freeway Fort Worth, Texas 76134 (cont'd) (Agenda Item 7) • Located in Council District 8 • 2.37 million square feet at 6201 South FreewayAlcon Laboratories, Inc. — 1,436 employees • Alcon Research Ltd. — 1,835 employees She presented the facts about Alcon as follows: • Alcon Laboratories, Inc., and Alcon Research, Ltd., represented the majority of Alcon. • Fort Worth is home to the main Alcon corporate office and the William C. Conner Research Center where the majority of the research and development efforts occur and where they have two major manufacturing plants • At Alcon's largest location: • Onsite training and seminars • Research and development • State-of-the art manufacturing • Alcon's core business is centered on three key divisions: surgical, pharmaceutical and consumer vision care. She then presented the Texas Enterprise Zone Program as follows: • Program Objective o The Texas Enterprise Zone Program is 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 • What is an Enterprise Project? o An enterprise project is a business that is nominated by a municipality or county and approved by the bank for state benefits. State incentives include state sales and use tax benefits based on capital investment and jobs created and/or retained during the designation period. She then presented the Enterprise Project Requirements as follows: • Projects nominated by the City or County and approved by State CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 16 of 18 Consideration of an Enterprise Project Designation for Alcon Laboratories, Inc., and Alcon Research, Ltd., 6201 South Freeway Fort Worth, Texas 76134 (cont'd) (Agenda Item 7) • 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 is received, whichever is later Ms. Alvarado provided the overview of 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 is related to the capital investment and jobs created at the qualified business site. She presented the Alcon Laboratories, Inc., Enterprise Project Request as follows: • Projected Capital Investment: • Building $ 2,000,000.00 • Machinery& Equipment $59,574,000.00 • Total $61,574,000.00 • 500 Jobs retained with payroll of $32.8 million with an average wage of $65,603.00 • Company will submit the necessary annual paperwork to State to receive benefits • Request requires no fiscal obligation from City of Fort Worth • $61.6 million and retention of 500 jobs o Maximum refund of$1.25 million for state sales and use tax She then presented the Alcon Research, Ltd., Enterprise Project Request as follows: • Projected Capital Investment: • Building $ 15,804,000.00 • Machinery & Equipment $135,196,000.00 • Total $151,000,000.00 • 500 jobs retained with payroll of $32.9 million with an average wage of 805,703.00 CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 19 2009 Page 17 of 18 Consideration of an Enterprise Project Designation for Alcon Laboratories, Inc., and Alcon Research, Ltd., 6201 South Freeway Fort Worth, Texas 76134 (cont'd) (Agenda Item 7) • Company will submit the necessary annual paperwork to State to receive benefits • Request requires no fiscal obligation from City of Fort Worth$151 million investment and retention of 500 jobs o Maximum refund of$2.5 million in state sales and use tax She advised of the next steps in this process were as follows: • Staff recommends proceeding with placing M&C and resolution of support on September 15t" Council Agenda • Submit resolution to the state prior to December 1 deadline Ms. Alvarado concluded her presentation. Chairman Jordan opened the floor for questions and/or comments. There were no comments or discussion. Council Member Hicks expressed appreciation to Ms. Alvarado and she added that she was delighted to have this business located in the southeast part of the City. She added that District 6 also benefited from this business. She reiterated that she was not aware of this presentation; however, she did support it. She requested to meet with City staff and company representatives prior to this item going forward to the City Council for approval. Ms. Alvarado introduced several company representatives that were in the audience. Chairman Jordan extended appreciation to them for their business and what they do for the City of Fort Worth. This concluded the presentation and discussion on this agenda item. Request for Future Agenda Items (Agenda Item 8) There were no future agenda items requested. CITY OF FORT WORTH HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE SEPTEMBER 1, 2009 Page 18 of 18 Date of Next Regular Meeting— October 6, 2009 (Agenda Item 9) Chairman Jordan advised that the next regular meeting of the Housing and Economic Development Committee was scheduled for October 6, 2009, meeting. Assistant City Manager Higgins indicated that had been changed to a morning Council meeting thus the Housing and Economic Development Committee meeting would not be held. Adiourn (Agenda Item 10) With no further presentations or discussions, Chairman Jordan adjourned the regular meeting of the Housing and Economic Development Committee at 3:05 p.m., on Tuesday, September 1, 2009. These minutes approved by the Economic and Community Development Committee on the 3rd day of November, 2009. APPROVED: do-34�( J� Ju I s lan, C irman Minutes Prepared by and Attest: Marty HendrU, City Secret dry