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HomeMy WebLinkAbout2003/07/08-Minutes-HEDC City of Fort Worth City Council Central City Revitalization and Economic Development Committee i Highlights of the Meeting Held July 8, 2003 Committee Members Present: Wendy Davis, Jim Lane, John Stevenson Council Members and City Staff Present: Mayor Mike Moncrief, Charles Boswell, Teresa Carreon, Bette Chapman, Deidra Emerson, Robert Goode, Kathryn Hansen, Ossana Hermosillo, Tom Higgins, Angie Highland, Gary Jackson, Skip Krueger, Christine Maguire, Vincent Mantero, Katherine Mehl, Sandy Oliver, Marc Ott, Joe Paniagua, Galen Price, Steve Price, Dedra Ragland, Reid Rector, Bob Riley, Alan Shuror, Kirk Slaughter, Patsy Steele, Gary Steinberger, Pat Svacina, Betty Tanner, Peter Vaky, Ardina Washington, Barbara Wilson, Marcia Wise Call to Order: Chairwoman Wendy Davis called the meeting to order at 1:10 p.m. Approval of Minutes from the Meetings held on June 10, 2003 and June 24, 2003: Committee Member Jim Lane moved to approve the minutes. The motion was seconded by Committee Member John Stevenson and carried. Discussion and Consideration of the 2002 Tax Abatement Audit: Business Development Coordinator Ardina Washington began the presentation (attached) and introduced Steve Price, Assistant City Auditor, who presented summary information about the audit. He said that both the jobs goals and Fort Worth business participation goals had been exceeded by the companies that were receiving 10atements this year. He added that there were eighteen active tax abatement agreements audited this year, with six of those being performance specific agreements. Of the other twelve, he said, nine companies were in full compliance, and three had failed to meet one or more of the objectives of their agreements. Ms. Washington then returned to the podium and explained that there are two companies now back on the tax rolls because their abatements have ended: Sundance Phase 1 and Williamson-Dickie. In 2003, she added, these companies will pay approximately$86,068 and $69,883 in taxes, respectively. Next, Ms. Washington presented a list of the three companies that did not meet the commitments of their agreements: Motorola, Nokia and Southwest Office Systems. She said that Motorola was deficient in their Fort Worth employment component and that staff recommends reducing their abatement from 70% to 64%. Regarding Nokia, Ms. Washington said that they were also deficient in their Fort Worth employment, and that staff recommends reducing their abatement from 100% to 85%. Ms. Washington then explained that Southwest Office Systems was deficient in their MWBE commitment, as well as in their Fort Worth and Central City employment commitments. She said that staff recommends reducing their abatement from 50% to 36%. Ms. Washington then asked for direction from the Committee regarding these staff recommendations. Mr. Stevenson moved that staff proceed with the recommendations and prepare the necessary M & C's. The motion was seconded by Mr. Lane and carried unanimously. Ms. Davis asked Ms. Washington to bring the information forward to the full Council at the next Pre-Council meeting. Oiscussion and Consideration of the Convention Center hotel Project: Public Events Director Kirk Slaughter made the presentation. He referenced a memo and a proposed resolution (attached) that was included in the Committee's packet of information, and said that staff is requesting that the Pagc I of 6 Committee consider a recommendation to release a Request for Proposal (RFP) relating to the potential development of a convention center hotel. He emphasized that this is really a fact-finding effort to find out what is available from potential developers. He added that staff has communicated with the Citizens' Committee on Fort Worth's Future and has included their recommendations in the draft RFP. After Mr. Slaughter explained Otit staff would be working through CH Johnson Consulting, Inc. to develop the RFP, he presented some of the ns that would be included in the RFP. These include asking the developer (1) to recommend the appropriate hotel size for the market; (2) to bring a hotel operator that is recognized by the convention and meetings market; (3) to use creativity in looking at the development structure, which might include private/public development with private hotel ownership or private/public venture with local development corporation ownership; (4) to meet a clearly defined project schedule, scope of development and guaranteed maximum price; (5) to prove their ability to bring debt financing/equity to the project; (6) to establish a financial pro forma for the entire project; (7) to recognize that job creation is a key component for the project; and, (8) to suggest the potential site for the hotel, considering both City-owned land and the Tarrant County College District site. Mr. Slaughter then asked the Committee to consider the proposed resolution and to recommend to the City Council at tonight's Council meeting the release of the RFP. As an update, he added that a Town Hall meeting has been scheduled for July 22 at 5:30 p.m. at the Fort Worth Convention Center for the purpose of presenting the project to the public and receiving their feedback on it. Mr. Stevenson emphasized that this is a fact-finding effort to explore the opportunities that are available. Ms. Davis asked if the RFP would include what is required by the meetings market in terms of meeting space, ballroom space, etc. Mr. Slaughter said that was correct, and in addition, developers would be asked to include creative recommendations on alternatives. Ms. Davis then asked what the timeline would be if the recommendation were approved today and moved to the full Council tonight. Mr. Slaughter said staff anticipated releasing the RFP on about July 15, receiving that back in late August, beginning evaluation of these through CH Johnson Consulting, and then bringing the results back to the Committee. Alk Wr. Stevenson asked what staff expected to hear from the public at the July 22 meeting. Mr. Slaughter said he felt it was an opportunity for the public to learn of the recommendations of the Citizens' Committee on Fort Worth's Future and to provide feedback on how they see best moving forward on such a project. Mr. Stevenson made a motion to take the proposed resolution to the full Council. The motion was seconded by Mr. Lane and carried. Discussion and Consideration of the Status Report from Leland Consulting on the Implementation of the Commercial Corridors Strategies: Community Development Manager Christine Maguire introduced Ann Ricker of Leland Consulting Group, which was hired in December 2000 to work with the Commercial Corridors Task Force to complete an extensive community planning process. Ms. Ricker then presented a one-year progress report (attached) on the progress to date on the Central City revitalization strategy. After reviewing general strategies for readying the Central City environment for investment and specific strategies for the urban villages, Ms. Ricker identified priority strategies, such as partnering with public, private and non-profit advocates, streamlining the development approval process, returning surplus properties to the tax rolls, and preserving cultural and historic resources. Ms. Ricker next explained how the City has progressed thus far in working on these strategies. She said that some City departments work on Central City issues daily, while others tend to spend most of their resources on the City's fringes, because that is where most development is occurring at this time. However, she added, as the efocus to Central City occurs, these departments will need additional resources to support that effort. She also id that while many City departments have made great strides in placing priority on revitalizing the Central City, this elevation of priority outside the City organization was inconsistent. Therefore, she said, a major priority going forward was communicating what the City is doing in Central City revitalization. Page 2 of 6 Ms. Ricker then listed criteria that the City is using to prioritize their actions and some selected accomplishments to date, which include the creation of an assistant city manager's position over the Economic and Community Development, Housing, and Development Departments; the completion of a housing strategy; d development of a variety of brochures to tell the Central City story. Ms. Ricker then presented priority strategies on which the City needs to focus at this time. She emphasized the need to continue both the communication with public, private and non-profit advocates and the returning of surplus properties to the tax rolls. Next, Ms. Ricker presented information on the amount of private and public dollars that had been spent in the various urban villages and a comparison of private/public leverage ratios in other cities. After discussing the Leland Group's priorities as they assist the City, which include supporting staff in working on the various strategies and developing communication infrastructure and a Central City Fact Sheet, Ms. Ricker advised the Committee on what the Leland Group recommends the City emphasize as it goes forward. These recommendations include developing a communication program with a single, consistent voice; identifying appropriate benchmarks; council-level commitment; and the creation of a funding and advocacy "umbrella" organization that supports the work of community development corporations (CDCs). Ms. Ricker then commended the City on their efforts thus far. Ms. Davis thanked Ms. Ricker for the report and commended the work of the Leland Group in helping the City stay focused on the implementation of Central City projects. She then requested a report that would include concrete steps on how to implement the general recommendations made today, including specifically what the priorities of the City should be in the upcoming budget to take implementation of Central City programs to the next level. Ms. Davis then asked Ms. Ricker to stay in contact with and assist the Development Standards Task Force that is now exploring the comprehensive plan, the strategies for commercial corridor and Central City redevelopment and how these strategies are working with the building codes. Ms. Davis then recognized Francis McCarthy, who is the chair of the Central City Committee, and thanked him for his attendance at the —meeting. Discussion and Consideration of Proposed Development Department Service Enhancements and a Funding Strategy: Development Director Bob Riley made the presentation (attached), saying that his purpose was to review a proposed program to enhance service in the Development Department and a related funding strategy. In support of the proposed program, Mr. Riley said that the Commercial Corridors Task Force, along with the Leland study, had identified a number of strategies that needed to be established in the Development Department, including streamlining the development process and encouraging design guidelines. In response, he said, the Development Standards Task Force had been established to review development related standards and processes. Mr. Riley added that customer feedback indicated that waiting and turn around time for development processes did not meet their expectations, which also supported the proposed changes. After saying that the growth in construction activity in the last three years had created some of the challenges with providing service in the Development Department, Mr. Riley explained what had been done in the past to try to address these challenges, including the hiring of additional personnel and the Third Party Plan Review and Inspection Program. He said that staff is proposing a two-year plan to enhance service and address strategies for the various task forces. This plan includes hiring additional personnel, office reconfiguration to support the proposed personnel positions, and making permit system access available through the Internet. Mr. Riley explained that these proposals could be funded by adjusting the rates of various fees that are already paid in the Development Department. He then asked the Committee for direction on the enhanced services and fee adjustment proposals. Mr. Stevenson asked how the various fees compared with those of other cities. Mr. Riley said that the last time Ve adjustments were made in 2001, Fort Worth was in the middle. He added that staff is currently looking at this again, and he expected that this would not change, but he would be happy to provide this information to the Committee and the full Council. Mr. Stevenson said that lie felt all the factors had to be weighed, and that along Page 3 of 6 with covering costs, what the public is paying also needed to be considered to be sure that the City stays within a competitive range. Ms. Davis asked Mr. Riley about the approval process for Neighborhood Empowerment Zone (NEZ) projects. W iee said that according to the feedback she was receiving, there were major delays in the approval process of se projects, and thus the City was not living up to the commitment made in the NEZ policy to prioritize these projects. Mr. Riley said that the Development Department's goal on Central City projects was a ten-day turn around on building permits. However, he said there were a number of City processes involving other City departments related to such projects, such as infrastructure approval and consideration, and these were undergoing a complete review by the Development Standards Task Force Process Improvement Committee. He said a proposed re-engineered process on infrastructure would greatly reduce turn around times. Mr. Riley added that while it was very difficult to put these projects ahead of others that were already in line, the Development Department was trying hard to achieve its goal. Ms. Davis said that the Council needs to hear if the deficiencies are occurring as a result of a shortage of personnel, so that they can act to provide the support that make the City's policies meaningful. She then asked Mr. Riley to give attention to that issue, and she said that it would be helpful if a recommendation regarding that came from the Development Standards Task Force. Mr. Stevenson moved to support the recommendation. The motion was seconded by Mr. Lane and carried. Discussion and Consideration of the City's Participation in the Cost of Bridge Construction in Beechwood Business Park: Ms. Davis informed the Committee that she, along with Economic and Community Development staff members, Transportation and Public Works staff members, Legal Department staff members and Fire Marshals, had met yesterday (July 7) with members of the Beechwood group about the best way to take their proposal orward on the City's participation in the cost of the bridge construction in the Beechwood Business Park area. e said that Beechwood is asking the City to explore the use of a 380 grant to repay them for the cost of building the bridge, and therefore, it had been decided that the Beechwood representatives would provide particularized information related to the commercial development portion of the project to City staff in the next day or two. She added that she had committed that she would ask the Committee, because of time constraints, to hold a special meeting next week after the special Capital Improvement and Infrastructure Committee meeting. Mr. Lane asked if this project could also be completed through the use of a Community Facilities Agreement (CFA). Assistant City Attorney Peter Vaky said the project could be done through a CFA provided the City has the funds to do it. Mr. Lane said that the funding issue had already been settled, and asked if it would be legal for the Council to consider a CFA for this project. Mr. Vaky stated that it would be legal provided that the CFA contained a legal funding source. Mr. Stevenson asked about fire safety issues that might be involved since the Fire Marshal had attended yesterday's meeting. Ms. Davis said she thought it would be helpful if the Fire Marshal gave a presentation to the Committee because of the unique challenges of ingress and egress on the property. Mr. Lane asked the Beechwood representatives present if there was time on their schedule for such a presentation. David Farmer of the Beechwood Company said that Beechwood representatives were not aware until last evening that the project could be pursued under a standard CFA with an enhanced provision. He said that he felt that was the method of financing that Beechwood would like to pursue, but that he would defer to City staff and to the Committee as to how soon this could be brought before the Council. Mr. Lane asked Mr. Vaky about the equirements of doing the project through the CFA. Mr. Vaky said that the two requirements were to identify e infrastructure to be constructed and to identify a source of funds from the City to pay for it. He added that the City Council would have to approve the CFA and appropriate the funds to support its obligations under the CFA. Ms. Davis said that this issue was related to the special meeting planned for next week and could be more fully discussed then. She added that the CFA would require the City to determine the availability of funds for the project, and if no funds were available, then funding proposals would need to be explored. She said she felt that (7k of available funding was the reason why the 380 grant was being explored, and that preparation still needed 1be made to discuss the project from that perspective. Therefore, she said, the information requested yesterday was still important to the discussion. Mr. Lane said that closure was needed on the issue, and he asked for Mr. Farmer's suggestion on how to do that. Mr. Farmer said that if the Council was willing to consider a CFA, which seemed to be a simpler mechanism than a 380 grant, then Beechwood's preference would be to try to take that to Council as soon as possible. Mr. Lane then asked what staff would need to do to accomplish this. Assistant City Manager Marc Ott said that the Transportation and Public Works (TPW) Director would assess the project, apply the CFA policy accordingly and make determination as to funding. Mr. Lane reiterated that he understood the issue of funding had been settled and that Beechwood was running out of time as far as their investors and other factors were concerned. He asked how closure could be accomplished on the issue so that Beechwood would know whether or not the City was going to participate in the project. Ms. Davis said she felt that the Committee was headed in the direction to bring closure to the issue and that there were a number of options to explore on the CFA funding for the project. She emphasized that the information Beechwood has been asked to provide is important in helping the City determine whether to financially partner with them in the way they have requested. Mr. Lane reiterated the importance of getting closure on the issue. Mr. Ott said that the issue is fundamentally one of funding, but the TPW director could bring back a list of projects currently in the queue and Council could replace one of those projects with the Beechwood project if they so desired. He added that Council could also examine the possibility of issuing bonds to provide funding for the project. Or. Stevenson said that it was his understanding that the issue would be brought to closure next week. Ms. Davis said it was hoped that the Committee could make a recommendation next week, in which case the item would then be placed on the Pre-Council agenda for the following week and, if appropriate, a CFA would also be on the Council agenda for that week. She said that she understood Mr. Lane's concern, but that she felt this two-week turn around was a very expedited schedule. She added that staff had been trying to receive information from Beechwood for many weeks, but had failed to do so. Mr. Lane asked about the information requested and when it was requested. Assistant City Manager Reid Rector said that the information requested from Beechwood several weeks ago had now been provided, and that they were going to provide additional information, which would be processed according to the schedule Ms. Davis had indicated. Mr. Lane asked for clarification of the time schedule. Mr. Rector said that if resolution could occur at the special Committee meeting on July 15, there would be an M & C on the agenda for the Council meeting the following week. Mr. Lane asked how the item could be included on the Council agenda for the next week. Mr. Vaky said that the City Manager would have to determine what his recommendation to the City Council is regarding this issue. Mr. Lane said that it had been agreed last week to discuss the issue today, and he expressed concern about continuing the item for another two weeks. Mr. Vaky said that the Legal Department would draft whatever agreement the City Manager's office requested provided that there was a manner in which to fund that agreement. Mr. Lane asked for a comment from the City Manager's Office on the issue. City Manager Gary Jackson said that if the Council wants to have the item on next week's agenda, he was not inclined to ask the TPW director to cancel a project that has already been approved by the Council. He added that another option was to go to the bond market and issue funds for ertificates of obligation. Page 5 of 6 Mr. Lane asked if this item was on the executive session agenda for the day's Council meeting. Mr. Vaky said that the executive session agenda did include proposals for economic development negotiations. Mr. Lane said that this discussion could be continued then. Mat. Stevenson said that he had only recently become aware of Fire Department access to the area, and he felt this could be a very significant issue on the project. Ms. Davis said that there was an agreement yesterday with Beechwood on information to bring forward to the Committee for its analysis. She said that if Beechwood chooses not to bring that information forward to the Committee, then a report would be made to the Council to that effect so that Council would understand what the history of this project has been. She added that if Beechwood would like to proceed with the project under a CFA on next week's Council agenda, then it could be considered that way. She then emphasized that the meeting had been planned next week to analyze the economic development participation in the project, and that if Beechwood wanted to go forward with that discussion, that could still be done. Mr. Farmer said that Beechwood would provide the information to the Committee; however at the same time, they would like to pursue some form of an enhanced CFA. He added that Beechwood did not want to close any doors that might lead to a resolution. He added that the requested information would be provided to economic development staff first thing tomorrow morning. Ms. Davis then asked Mr. Farmer for clarification regarding holding the special meeting next week. Mr. Farmer said they would like to have the meeting. Ms. Davis then asked the Committee what their desire was concerning this. The Committee agreed to proceed with the special meeting. Mr. Lane asked what information the Committee had requested, since he was not aware that there had been a meeting involving a request for information. Ms. Davis reiterated that she had requested the information yesterday in the meeting with Beechwood representatives to bring forward to the Committee for their consideration regarding an economic development commitment to this project. Mr. Lane said that he understood that Beechwood was interested in pursuing alternative methods, if possible. Mr. Farmer said that Beechwood ould like to concurrently pursue the two avenues mentioned: the CFA, and in case that should fail, the onomic development plan. Mr. Lane said that the City would move forward on both of those. Discussion and Consideration of a Resolution Consenting to the City of Irving's Grant of a Rebate Incentive for Network Logistics, Inc. to Relocate its New Central Warehouse/Distribution Facility to Dallas-Fort Worth International Airport: This item was continued for discussion at a subsequent meeting. Questions Concerning Reports in the Committee Packet: There were no questions concerning reports in the Committee Packet. Executive Session: There was no executive session. Requests for Future Agenda Items: Ms. Davis requested reports on strategies for moving surplus properties and land banking for purposes of Central City redevelopment. Adjourn: The meeting adjourned at 2:40 p.m. There will be a special meeting held on July 15 at approximately 3:00 p.m., immediately following the special Capital Improvement and Infrastructure Committee meeting. There will also be a special Town Hall meeting on the Convention Center Hotel Project on July 22 at 5:30 p.m. at the Fort orth Convention Center. The next regular meeting is scheduled for August 12, 2003. Page 0 of 0