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HomeMy WebLinkAbout2003/05/13-Minutes-HEDC City of Fort Worth City Council Economic and Community Development Committee Highlights of the Meeting Held May 13, 2003 Committee Members Present: Jeff Wentworth, Wendy Davis, Frank Moss, Clyde Picht City Staff Present: Chris Anderson, Bette Chapman, Fernando Costa, Bea Cura, Hugh Davis, Deidra Emerson, Sigi Frias, Cynthia Garcia, Ossana Hermosillo, Kathleen Hicks, Tom Higgins, Chun-I Lu, Christine Maguire, Penny McCook, Elizee Michel, Patrina Newton, Reid Rector, Robert Sturns, Joe Ternus, Peter Vaky, Jerome Walker, Ardina Washington, Barbara Wilson Call to Order: Chairman Jeff Wentworth called the meeting to order at 1:52 p.m. Approval of Minutes from the Meeting held on April 8, 2003: Committee Member Frank Moss moved to approve the minutes. The motion was seconded by Committee Member Wendy Davis and carried. Executive Session: The Economic & Community Development Committee conducted a closed meeting to discuss or deliberate economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Discussion and Consideration of Designation of the Handley Neighborhood Empowerment Zone (NEZ): This item was removed from the agenda. iscussion and Consideration of Reallocating Community Development Block Grant (CDBG) Funds for he Polytechnic Community Development Corporation: Housing Director Jerome Walker made the presentation (attached). He explained that the Polytechnic Community Development Corporation (PCDC) was requesting that $22,187.02 in CDBG Housing Development funds and $5,068 from the CFW Home Improvement Program be reallocated as PCDC Community Facility funds, which would be used to build a mixed-use facility that is already under construction in the model blocks area. The additional funding is required, Mr. Walker said, because of the discovery of asbestos and lead in the existing structure. He added that construction is expected to be completed by midsummer of this year and that the facility will include offices for the PCDC, as well as four rental units and neighborhood meeting rooms. Mr. Walker then requested that the Committee recommend the reallocation to the Council. Mr. Moss moved to recommend the reallocation. The motion was seconded by Ms. Davis and carried. Discussion and Consideration of Allocating Program and Support Funds for Community Housing Development Organizations (CHDO): Housing Director Jerome Walker made the presentation (attached). He requested that the Committee recommend the allocation of$615,000 in CHDO funds to be used for the following activities: (1) $200,000 to the Lake Como Area Council (LCAC) for single family housing development; (2) $50,000 to the Near Southeast Community Development Corporation, Inc. (NSECDC) for operating costs; (3) $50,000 to Greenway Neighborhood Development Corporation for operating costs; and (4) $315,000 to the City of Fort Worth Housing Assistance Program to provide closing costs, down payment or soft second mortgage assistance in an AKmount not to exceed $14,999 to homebuyers of homes developed by CHDOs and with CHDO funds. Mr. Moss asked about the overall balance of CHDO funds for this year. Mr. Walker explained that there was a balance of $263,936.06 in CHDO Support Funds and $764,449.72 in CHDO Program Funds for a total of Page 1 of 3 $1,028,385.78 before the above recommendations are acted upon. Mr. Moss then asked how many houses are to be built in the Lake Como area for the $200,000. Mr. Walker explained that they are planning to produce three units initially and that the funds will also allow the Lake Como Area Council to leverage funding for private financing for additional homes. Mr. Moss then asked about the use of the funds being allocated to the Near Southeast CDC and the Greenway Neighborhood Development Corporation. Mr. Walker explained that these ere operational funds for the staff and that under the CHDO program, operating funds may be allocated as a first step in development. He added that, as a second step, the development corporations could later request program funds to be used in actual project development. Mr. Moss next referenced the $315,000 that was recommended for allocation to the CFW Housing Assistance Program and asked if it was to be used for closing cost assistance or for both closing cost assistance and a soft second mortgage. Mr. Walker said there is no distinction in the division of the $14,999. He said that a homebuyer could use $3000 for closing costs and the remainder for the soft second mortgage, or the buyer could use the entire $14,999 as a principal reduction loan, assuming that the buyer had the down payment and closing costs. Mr. Moss then asked if the provision was still in place that these funds be used to keep payments within 20% of the homebuyer's gross income. Mr. Walker agreed, saying that the payment must be kept between 25% and 30% of the homebuyer's gross income. Ms. Davis asked if the three development corporations mentioned in the presentation—Lake Como Area Council, Near Southeast CDC and Greenway Neighborhood Development Corporation—were each organized as part of a model block. Mr. Walker said that was correct. Ms. Davis requested that, in addition to a work plan for the dollars currently being allocated, staff include the activities of the CHDOs to date in future allocation requests so that the Committee might see how model block allocations have been utilized and whether or not the development corporations have demonstrated capability of using the funds in a satisfactory manner. Mr. Walker said staff would provide the information, and he added that the development corporations listed in his presentation had taken on areas much larger than their original model block area. Mr. Moss asked about the quality of the three houses that would be built with the $200,000, saying that this averaged out to a cost of$66,666 per house. Mr. Walker said this would be correct if all three houses were built gftt one time. However, he explained, the LCAC might build two houses, or they might acquire one property and Wart construction on another and use the proceeds for the third house. Mr. Moss then asked what the profit margin would be. Mr. Walker said it would be about $3,000 per unit. Mr. Wentworth concurred with Mr. Moss' concern about the housing stock in the Lake Como area, saying that if someone wanted to move into a larger home with three bedrooms, two baths, and a two-car garage, but still wanted to stay in the community, they might not be able to do that in the Lake Como area and in some other areas. He added that this might be an opportunity to build one or two larger houses in the area, and he suggested that LCAC representatives meet with Mr. Moss to discuss this possibility. Mr. Walker said that he would advise Ms. Sapp of the LCAC of the need to speak with Mr. Moss on this issue. Mr. Wentworth then asked that Mr. Walker present an update on the discussion with Ms. Sapp when this item is brought before Council, in addition to the information Ms. Davis had previously requested. Mr. Moss moved to recommend the allocation. Ms. Davis seconded the motion, which carried. Discussion and Consideration of a Resolution Supporting Enterprise Project Designation for Arrow Hose & Tubing, Inc. Located in the Southeast Enterprise Zone: Ossana Hermosillo, Economic Development Specialist, made the presentation (attached). She explained that Arrow Hose and Tubing, Inc., a company based in Canada, is planning to expand into Fort Worth and is requesting Enterprise Zone project designation. In the next five years, Ms. Hermosillo added, the company is projecting a capital investment of$4.17 million in the Southeast EZ, and they expect to create 35 new full-time jobs during that time period. Ms. Hermosillo then asked that the Committee recommend a resolution supporting Z designation to be placed on the May 27 Council agenda. Mr. Moss asked if the company's $4.17 million investment was all capital investment. Ms. Hermosillo said that was actually overall investment, not just capital. Page 2 of 3 Committee Member Clyde Picht asked about the size of the company. Ms. Hermosillo said that the company currently has 56 employees in Ontario, and the Fort Worth office would be their first expansion. Mr. Picht then asked if the Fort Worth expansion was to be a distribution center. Ms. Hermosillo said the company would be a manufacturing plant that would take custom orders. t. . Tom Higgins, Director of Economic and Community Development, commended Sigi Frias and the International Center staff for their efforts in bringing this company to Fort Worth. Mr. Moss moved to recommend the resolution. The motion was seconded by Ms. Davis and carried. Update on the Tax Abatement Policy Revision: Business Development Coordinator Ardina Washington made the presentation (attached). She reminded the Committee that over the past few months, staff had been meeting with various groups to receive input on revising the current tax abatement policy. She then explained that while at the last ECDC meeting, there had been discussion about having a public meeting at 10:00 a.m. on May 13 to give citizens an opportunity to address the Committee on the tax abatement policy, that meeting had not occurred because of scheduling conflicts. Therefore, Ms. Washington said, it was decided to hold the public meeting during the ECDC meeting that was already scheduled. She added that in July or August staff would return to the Committee with a policy that incorporates and outlines the changes made based on the feedback that was received. Mr. Wentworth opened the floor to anyone who would like to comment on the tax abatement policy. Carole Myer, Director of Business Development for the Fort Worth Chamber of Commerce, said she had been involved in two of the meetings, which seemed to have gone very well. She added that the meeting participants had appreciated the opportunity to voice their opinions concerning the tax abatement policy. r r. Picht asked if the revised policy would include a review of the 1.5 multiplier. Ms Washington said that the 5 multiplier had already been addressed and that it is a practice that the Committee decided should be discontinued. Mr. Picht then asked if limitations on charitable contributions would be included in the revised policy. Ms. Washington said that all suggestions would be presented at a future Committee meeting. Final Report of Leadership Fort Worth's Study of Community Leadership in Urban Villages: Fernando Costa, Planning Director, reminded the Committee that in November 2002, he had introduced Leadership Fort Worth participants who had agreed to assist City staff by conducting a study on the effectiveness of community leadership in the urban villages. He then introduced members of Leadership Fort Worth, including Todd Breeding of Frost Bank, who presented the report on the study. Mr. Breeding said that according to their findings, the urban village process is going well and is progressing faster in some neighborhoods than in others. He then distributed copies of the report. Mr. Wentworth asked if each of the areas that had been surveyed would receive a copy of the report. Mr. Breeding said they would be glad to send copies to them. Mr. Wentworth thanked Leadership Fort Worth for their work on the study. Requests for Future Agenda Items: There were no requests for future agenda items. Mr. Picht expressed his appreciation to Mr. Wentworth for his hard work as Committee chairman. Adjourn: he meeting adjourned at 2:47 p.m. The next meeting is .June 10, 2003. Page 3 of 3