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HomeMy WebLinkAbout2002/04/16-Minutes-HEDC City of Fort Worth City Council Economic Development Committee Highlights of the Meeting Held April 16, 2002 Committee Members Present: Jeff Wentworth, Jim Lane, Frank Moss City Staff Present: Mike Brennan, Linda Brown, Bette Chapman, Deidre Emerson, Cynthia Garcia, Tom Higgins, James Keyes, Christine Maguire, Reid Rector, Kirk Slaughter, Robert Stums, Peter Vaky, Ardina Washington. Call to Order: Chairman Wentworth called the meeting to order at 12:16 p.m. Approval of Minutes from the Meeting held on March 19, 2002: Committee Member Moss moved to approve the minutes. Committee Member Lane seconded the motion. It. passed unanimously. Request by Greater Mount Tabor Christian Center for Option to Purchase Tax-foreclosed Property Located at East Berry Street and Village Creek Road: Ossistant City Attorney Cynthia Garcia showed a map of the property under consideration and presented the request. (Presentation Attached.) She said that Mt. Tabor Christian Center had presented an option agreement to the City to purchase the property, which is adjacent to property that the church already owns. Ms. Garcia said that Mt. Tabor had been informed that they could purchase the property for the taxes owed on it or the fair market value. The taxes owed equal $341,000; the fair market value has been appraised at $213,000. Under the tax code, the property can be sold to Mt. Tabor for$213,000 with the approval of the other taxing entities. Ms. Garcia then asked the Committee to answer three questions regarding the sale: (1) Does the Committee recommend sale of the property for the fair market value today? (2) Does the Committee recommend giving Mt. Tabor Christian Center until December 31, 2003, to exercise their option on the property? and (3) How much should be charged for the option fee, one percent of the sales price or the total of taxes that would be paid on the property in one year? Committee Member Lane asked what fee was normally charged. Ms. Garcia said that the one percent was the usual fee. Mr. Lane suggested that the Committee continue with this policy, since the Committee's decision could set a precedent. Ms. Garcia said that although the City had done many option agreements for City-owned property, this was the first time the City had ever done an option agreement for tax-foreclosed property. This is the reason the agreement requires the approval of the other taxing entities. Mr. Moss said he had been working with the church since he had been on the Council and giving them the option to purchase the property would allow them to move forward with their project. He added that there ould be a buy back of some of the land for parks by the Parks and Community Services Department. Page 1 of 3 Mr. Wentworth asked what the City normally allowed as the term of an option agreement. Ms. Garcia said the City could set the length of the term at whatever it chose, but since the City is the trustee of the property, it is the City's responsibility to see that the other taxing entities approve the term. Mr. Moss said he felt that the County would approve the option agreement because they had also been working with Mt. Tabor on the issue. Assistant City Manager Reid Rector asked if there was a possibility of a phase take-down on the property. Ms. Garcia said this was not a possibility. At the end of the option, Mt. Tabor will have to purchase all of the property or one of the two tracts. Ms. Garcia again emphasized that whatever decision was made by the Committee had to be approved by the other taxing entities. Mr. Moss pointed out that the property is also in a Neighborhood Empowerment Zone. The Committee agreed to recommend accepting the option agreement to December 31, 2003, with a fee of one percent. Mr. Wentworth suggested that the Mt. Tabor representatives be prepared to discuss how the land would be used when the agreement comes before the City Council. Status Report on the Cultural District and Will Rogers Memorial Center Master Plan: Public Events Director Kirk Slaughter presented the update. He said that the drainage project on Montgomery Street should be completed this week, and roads that lead to the inner circle in the street are being paved. Mr. Slaughter added that forms for the paved circle outside the Cowgirl Hall of Fame are being completed, and this should be finished on schedule in May in time for the June 10 Grand Opening. Discussion of Funds Available through U.S. Code Title 42, Chapter 69, Community Development Block * grant Program, Section 108: t.: Business Development Coordinator Robert Sturns presented the summary of information concerning the Section 108 Loan Program. (Presentation attached.) He said that the maximum amount available to the City is $39,315,000, of which $32,100,000, (which includes a $13,000,000 reservation for the Montgomery Ward redevelopment project) has already been committed. This leaves $7,215,000 available for the next fourteen years for economic development projects. Additional funds will not be available until the Minyard's loan is paid off in 2016. Mr. Sturns also said that staff is currently researching other sources of "gap financing" for other projects, particularly those in the commercial corridors. Mr. Moss asked if it was possible to adjust the amounts that have been committed. Mr. Sturns asked Deidre Emerson, Contract Compliance Supervisor, to respond to the question. She said that the decision needed to be made before funds were drawn down, and this would have to be submitted as an amendment to the application process. She added that it would be possible to decrease the amounts before the funds have been drawn down. However, she did not think it would be possible to increase the amounts. Mr. Wentworth suggested that a similar report on the Section 108 funding be presented to the City Council so council members would be aware of the amount of funding available. Tom Higgins, Director of Economic and Community Development, said that the Montgomery Wards project is still uncertain, and some funds that have been committed to that might be available. Status Report on Tax Increment Financing Zones in Fort Worth: `>usiness Development Coordinator Ardina Washington presented the status report. (Presentation attached.) She explained the purpose of tax increment financing zones, saying they are usually a means of' providing public financing of infrastructure and promoting private investment in the TIF area, especially in economically Page 2 of 3 distressed areas within the TIF boundaries. Ms. Washington then presented a summary of the four TIFs that are currently in Fort Worth: TIF 2 (Speedway), TIF 3 (Downtown), TIF 4 (Southside) and TIF 5 (Dell). 'oncerning TIF 5, Ms. Washington said that she had been contacted by TAD about the exact boundaries of the fIF. TAD indicated that some of the designated property might not be within the City of Fort Worth; therefore, they are not able to determine the increment at this time. The base value of the current boundaries is estimated at $970,000. Ms. Washington then pointed out the disputed TIF property. She said staff is investigating the matter to determine the best remedy. Ms. Washington next presented information on the amount of revenue that has been paid into the TIFs. She said that from 1996-2001, a total of$3,293,337 has been paid by the general fund into TIFs 2, 3 and 4. Mr. Wentworth noted that while TIFs benefit the particular area in which they are located, over time a considerable amount of money is diverted from the general fund. He suggested that this information also be presented to the Council. Discussion and Consideration of Expanding Tax Increment Reinvestment Zone Number Two, City of Fort Worth, Texas (Speedway TIF): Discussion of this matter was deferred to a later meeting. Requests for Future Agenda Items: There were no requests for future agenda items. Xdjourn• Chairman Wentworth adjourned the meeting at 12:45 p.m. The next meeting is May 14, 2002. Approved by: Jeff Wentworth, Chairman Page 3 of 3