HomeMy WebLinkAbout2009/11/03-Minutes-HEDC CITY OF FORT WORTH
CITY COUNCIL
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Present:
Committee Member Jungus Jordan, Chairman
Committee Member Carter Burdette, Vice Chairman
Committee Member Mike Moncrief
Committee Member Salvador Espino
Committee Member W. B. "Zim"Zimmerman
Committee Member Danny Scarth
Committee Member Frank Moss
Committee Member Kathleen Hicks
Committee Member Joel Burns
City Staff:
Tom Higgins, Assistant City Manager
Peter Vaky, Assistant City Attorney
Marty Hendrix, City Secretary
Reid Rector, Director of Governmental Relations Department
Jay Chapa, Director, 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
LeAnn Guzman, Assistant City Attorney
Randle Harwood, Director, Program Management Office
Mark Folden, Housing Program Manager, Housing and Economic Development Department
Dolores Garza, Economic Development Specialist, Housing and Economic Development
Department
Ossana Hermosillo, Business Development Coordinator, Housing and Economic Development
Department
Henry Day, Senior Management Analyst, Housing and Economic Development Department
Guest:
Tom Luce, Developer
With a quorum of the Committee Members present, Chairman Jungus Jordan called the
meeting of the Housing and Economic Committee to order at 1:50 p.m., on Tuesday,
November 3, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000
Th rock morton. Fort Worth, Texas 76102.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 2 of 11
Approval of Minutes of the
September 1, 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 Committee Member Zimmerman and seconded by
Committee Member Moss , the Committee Members voted nine (9) and zero (0)
"nays", to approve the minutes of the September 1, 2009, Housing and Economic
Development Committee meeting. The motion carried unanimously.
Executive Session (Agenda Item 3)
Chairman Jordan advised that it was not necessary to adjourn into Executive Session for
the following items, thus this agenda item was passed over.
A. Seek the advice of its attorneys concerning the following items that are exempt from
public disclosure under Article X, Section 9 of the Texas State Bar Rules, as
authorized by Section 551.071 of the Texas Government Code: (i) legal issues
related to any current agenda items;
B. Discuss the purchase, sale, lease or value of real property, as authorized by Section
551.072 of the Texas Government Code. Deliberation in an open meeting would
have a detrimental effect on the position of the City in negotiations with a third party;
and,
C. Discuss or deliberate negotiations relating to any economic development
negotiations, as authorized by Section 551.087 of the Texas Government Code.
This agenda item was passed over.
Update on High Speed Rail Proiect (Agenda Item 4)
Mr. Reid Rector, Director, Governmental Relations Department, spoke before the
Committee regarding the high speed rail project and a request from representatives of the Texas
High Speed Rail and Transportation Corporation for the City of Fort Worth to consider the
adoption of a resolution expressing its support of the development of high speed rail in the State
of Texas.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 3 of 11
Update on High Speed Rail Project (cont'd) (Agenda Item 4)
Using a PowerPoint presentation, Mr. Rector explained the Texas High Speed Rail and
Transportation Corporation (THSRTC) was a non-profit corporation created in 2002. He pointed
out that Tarrant County Commissioner Gary Fickes was Secretary for the Corporation. He stated
that the vision of the THSRTC was to create "a multimodal and intermodal transportation system
linking the four major metropolitan areas in Texas together by an advanced high speed rail
system."
Using a color-coded map showing the T-Bone Corridor and extensions, Mr. Rector
explained that the Texas T-Bone Corridor would connect the major metropolitan areas in Texas.
Those connections were North/South: Fort Worth/Dallas, Hillsboro, Waco, Killeen/Temple/Fort
Hood, Austin and San Antonio. East/West: Killeen/Temple/Fort Hood, Bryan/College Station,
Houston
Mr. Rector advised of the local congressional/legislative support as follows:
Congress:
Senators Kay Bailey Hutchison and John Comyn
Representatives Michael Burgess, Chet Edwards and Kenny Marchant
Texas Legislature:
Senators Wendy Davis and Chris Harris
Representatives: Vicki Truitt, Paula Pierson and Todd Smith
Mr. Rector referenced the October 5, 2009, meeting where the request for support was
made. Tarrant County Judge B. Glen Whitley, Tarrant County Commissioner Gary Fickes,
Mayor Mike Moncrief, and Council Members Jungus Jordan and Carter Burdette were all in
attendance at that meeting. Commissioner Fickes provided a briefing on the high speed rail
project. They all agreed to ask for a Council Resolution supporting the high speed rail issue.
Mr. Rector provided copies of the resolution to the Committee Members. He advised that
it articulated the growth and development that was occurring in the City of Fort Worth; noted
that 7.5 million people lived within a 50-mile radius of the Dallas/Fort Worth International
Airport and noted that high speed passenger rail was capable of operating at speeds in excess of
185 mph. He added that the resolution resolved that:
■ The City of Fort Worth supported the efforts to develop a viable high speed rail
System.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 4 of 11
Update on Hiph Speed Rail Proiect (cont'd) (Agenda Item 4)
• The Dallas/Fort Worth (DFW) International Airport be encouraged to support the
development of high speed rail.
• A high speed rail station should be located on the Dallas/Fort Worth International
Airport property.
Mr. Rector pointed out that the resolution stated that the support of the City of Fort
Worth was expressly conditioned upon the development of high-speed rail into the Dallas/Fort
Worth International Airport.
Mr. Rector concluded his presentation.
Chairman Jordan opened the floor for comments and/or discussion.
Committee Member Moncrief stated the resolution was the clear statement that the Fort
Worth City Council had intended all along. He added that if the City was going to have high
speed rail, it needed to go right through the heart of the North Texas Region and obviously the
most logical place was through the DFW International Airport. Committee Member Moncrief
pointed out that any high speed rail project that had been successful on this planet had a
connector to the international airports. He added that this made sense, with trains arriving full
and departing full. He pointed out that this would not only augment the traffic once the high
speed rail was built but also the air traffic through those connections.
Chairman Jordan pointed out that the statement being made in the resolution was that not
only was mobility and air quality critical to this effort but it was also seen coming through the
economic development community as future economic development for the City. He added it
was not endorsing the region or any particular organization or route, only stating that any high
speed rail connection in the State of Texas should be at DFW International Airport.
Committee Member Burdette pointed out that this system was proposed to be built above
ground. It would be a raised railway above the surface so there would be no grade crossings and
right-of-way problems as one might have if it was done on the surface. He stated he had also
spent some time with Commissioner Fickes talking about this issue and that high speed rail was a
federal initiative. He added in a sense there had been a number of possible routes mapped out
throughout the United States. He added Commissioner Fickes had told him that one of the
possible bidders on constructing the route, a company from Spain, had indicated that they
thought this would be the best route within the entire United States and would be the first one to
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 5 of 11
Update on High Speed Rail Protect (cont'd) (Agenda Item 4)
be built based upon their experience and proposal. He pointed out he felt it was extremely
important that the City got behind this resolution. He added that there were a number of cities
within the region that had already indicated their support of the resolution and joined the
Committee to push this forward. He stated that he felt this was another opportunity to tackle the
transportation problems in the state.
Chairman Jordan advised that based upon the comments, this resolution would be
forwarded to the full Council for final action.
This concluded the presentation and discussion on this agenda item.
Presentation of the Heritage/Park Vista
Multifamily Development 8500 Ray White Road (Agenda Item 5)
Chairman Jordan advised that this agenda item would be continued to the next regular
meeting of the committee.
Mr. Jay Chapa, Director of Housing and Economic Development, advised that since there
would not be another meeting of this committee until after the first of the year, this agenda item
would come before a regular City Council meeting within the next few weeks.
Presentation on Down Payment and Closing
Cost Assistance for Targeted Infill Areas (Agenda Item 6)
Mr. Jay Chapa, Director, Housing and Economic Development Department, spoke before
the committee on the Targeted Down Payment and Closing Costs Assistance Program. Using a
PowerPoint presentation, Mr. Chapa reviewed the requirements of the current program as
follows:
• Provides down payment and closing cost assistance
• Up to $14,999.00 in targeted areas
• Up to $8,500.00 in non-targeted areas
• Must be a first-time home buyer
• 5-year affordability period
• Earning 80% or less of area medium income
• Owner occupied
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 6 of 11
Presentation on Down Payment and Closing Cost
Assistance for Targeted Infill Areas (cont'd) (Agenda Item 6)
He presented the following chart showing the household size, along with the maximum
income:
Household Size Maximum Income
1 $36,900.00
2 $42,250.00
3 $47,500.00
4 $52,800.00
5 $57,000.00
6 $61,250.00
7 $65,450.00
8 $68,250.00
Mr. Chapa presented the proposed program as follows:
• Provide down payment and closing costs assistance of up to $25,000.00 in areas
targeted for new infill construction
• Proposed areas:
• Terrell Heights
• Diamond Hill
• Stop Six (Burger Street Area)
• Additional areas added as infill projects begin for those locations
Mr. Chapa presented an aerial map of the Terrell Heights area with red dots that
represented homes that could qualify for this program. The next slide showed the location of the
Diamond Hill target area within the City of Fort Worth. Mr. Chapa then presented the Burger
Street area.
Mr. Chapa presented the proposed program and the additional terms as follows:
• Must be a first-time home buyer
• Earning 80% or less of area medium income
• Owner Occupied
He reviewed the household size and maximum income as follows:
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 7 of 11
Presentation on Down Payment and Closing Cost
Assistance for Targeted Infill Areas (cont'd) (Agenda Item 6)
Household Size Maximum Income
1 $36,900.00
2 $42,250.00
3 $47,500.00
4 $52,800.00
5 $57,000.00
6 $61,250.00
7 $65,450.00
8 $68,250.00
He advised of the other terms as follows:
• 10-year affordability period
• Enforced by restrictive covenant in Deed of Trust
• Sale, assignment or transfer of property during first 20 years
requires immediate repayment of assistance
• After year 5, loan will be forgiven at a rate of 1/60 per month
• No cash to borrower
• Loan closing at title company
Mr. Chapa advised of the recommendation and next steps as follows:
• Authorize proposed program as presented
• Approve M & C to create program and allocated $275,000.00
for down payment and closing costs assistance in Targeted Infill
Areas
Mr. Chapa concluded his presentation.
Chairman Jordan opened the floor for comments and/or questions.
Committee Member Moncrief stated his observation was that the housing operation was
doing an outstanding Job. He stated that the products that were coming to the committee were
clean and the information was complete. He stated that it was very helpful as the committee was
asked to move forward and the City Council was asked to adopt these resolutions. He indicated
that the committee knew what it was doing, knew what it was voting on and knew what was
expected and what was not expected. He added that this made a big difference.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 8 of 11
Presentation on Down Payment and Closing Cost
Assistance for Targeted Infill Areas (cont'd) (Agenda Item 6)
Mr. Chapa interjected that the committee would not be voting on this issue as it would be
going forward for action by the entire City Council.
Chairman Jordan indicated he supported the comments made by Committee Member
Moncrief and added that there was one more word and that was "accountability."
Committee Member Moss interjected that he was trying to get his head around the
presentation. He pointed out that what was being presented in the proposal was that currently the
City had designated areas where a person could receive up to the $14,999.00. Mr. Chapa
clarified that if a person was at 80% or less of medium income and buying a home as a first-time
homebuyer within the targeted areas, i.e., urban villages, Neighborhood Empowerment Zones,
model blocks, and some of those already defined areas, they could get up to $14,999.00. He
added if they were not in those targeted areas, but some other location within the City, they could
receive $8,500.00. He stated that what the City staff was suggesting here was that amount be
allowed to go up to $25,000.00 in these specific areas where the City was investing in the in-fill
projects. He stated that the idea behind it was to get momentum and to get homes on the ground.
He added they also wanted the buyers quickly and to show a momentum and synergy that then
would allow the private sector to take over the in-fill projects. Committee Member Moss
requested clarification on whether the monies were being tied to closing costs or prepaid
expenses or down payments and whether it was flexible. Mr. Chapa indicated that the money
could not go directly to the buyer; however, at closing it could go to closing costs, or it could go
to down payment assistance. He emphasized that these monies could not go directly to the
homeowner for repairs, or appliances, furniture, etc. Committee Member Moss reiterated that it
was to be applied to the associated costs for closing costs or down payment assistance.
Chairman Jordan indicated that unless there were objections, this agenda item would
move forward to the full City Council for consideration.
This concluded the presentation and discussion on this agenda item.
Presentation on Community Gardens on
City Property (Agenda Item 7)
Chairman Jordan advised that this agenda item would be continued until the next regular
meeting.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 9 of 11
Request for Future Agenda Items (Agenda Item 8)
Committee Member Hicks referenced the presentation on "community gardens" and that
it was going to come back at a future date. She added that the citizens in the Fairmount Area and
Meadowbrook Area have indicated an interest in this concept. She added that she wanted to be
brought up-to-date on the status of this process as she was very interested in it and continued to
receive calls from citizens on it.
Committee Member Hicks indicated that she had posed the question of where the City
was in the process for getting loans for the rehabilitation of properties. She added that there was
a presentation made in the spring; however, the numbers have gone up and she wanted to hear
about the status of this process and that the information be provided to the Council Members on
their locations and where they were in each Council district.
Committee Member Hicks spoke about the Open Corners Property and the fact that the
committee had approved moving forward with a tax abatement for that developer. She
understood that the developer was going to request an extension and she asked if that request had
to come back to the Housing and Economic Development Committee (HEDC) and what that
meant. She added that there were some concerns from the citizens about what the developer had
done with that property and what would happen in the future. She added she felt it was
important that it would come back to the entire committee before the Council moves forward
with a decision on whether to approve the extension or not.
Assistant City Attorney Peter Vaky responded that he could respond to the last question.
He indicated that it would be coming forward to the entire City Council before the end of the
year because there would not be another meeting of the HEDC before the end of 2009.
Committee Member Moss referenced the comments on the community gardens and
indicated he hoped that the City would look at a collaborative effort with other groups, for
example JPS. He explained that the JPS Clinic in the Stop Six area was getting ready to put in a
community garden in order to show people what they needed to eat, specifically dealing with
people with high blood pressure and diabetes. He added that he hoped the City could coordinate
with that particular group.
Committee Member Burdette also spoke on the subject of the community gardens, he
referenced the item on the November 3, 2009, City Council agenda regarding a community
garden in the Como area.
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 10 of 11
Request for Future Agenda Items (cont'd) (Agenda Item 8)
Committee Member Espino requested that a presentation be scheduled for the Fort Worth
Public Housing Authority to come before the committee. He stated that there were some new
board members on their board and he would like to hear what their planning efforts were now.
Chairman Jordan requested a presentation by the President of the Fort Worth Chamber of
Commerce at the first of the new year regarding any initiatives on economic development that
were going forward and on the "State of the Economy."
Assistant City Manager Tom Higgins indicated that since there was no meeting in
December, the City staff would prepare a report on the loan activity. He indicated that the City
staff would put that together in the next few weeks and it could be discussed at an upcoming
Council meeting.
Committee Member Moss indicated that there had been previous discussion on a needed
report on the Neighborhood Empowerment Zones (NEZ's). He indicated that he was getting
more and more questions from citizens in his district about the impact of the NEZ's. He
requested this report be put together.
Date of Next Regular Meeting —
January, 2010 (Agenda Item 9)
Chairman Jordan advised that the next regular meeting of the Housing and Economic
Development Committee would be held in January of 2010.
Adjourn (Agenda Item 10)
With no further presentations or discussions, Chairman Jordan adjourned the regular
meeting of the Housing and Economic Development Committee at 2:09 p.m., on Tuesday,
November 3, 2009.
These minutes approved by the Housing and Economic Development Committee on the
12th day of January, 2010.
APPROVED:
Jut us Jorc n. Chainn• n
CITY OF FORT WORTH
HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE
NOVEMBER 3, 2009
Page 11 of 11
Minutes Prepared by and Attest:
Marty Hendrix, C y Secretary