HomeMy WebLinkAbout2001/11/27-Minutes-HEDC City of Fort Worth
City Council
Economic Development Committee
Highlights of the Meeting Held
Tuesday, November 27, 2001
Committee Members Present: Jeff Wentworth, Becky Haskin, Frank Moss, and Jim Lane
Other Council Members, City Staff and City Consultants Present: Wendy Davis, Jay Chapa, Bette Chapman,
Vida Hariri, Tom Higgins, Mike Groomer, Jim Keyes, Marcella Olson, Joe Paniagua, Dan Settle, Kirk Slaughter,
Jerome Walker, Peter Vaky, Ardina Washington.
Call to Order: The meeting was called to order by Chairman Wentworth at 2:02 p.m.
Discussion of the Main Street Lofts Housing Project to be Located at 714 Main Street in the Downtown
Area:
Assistant City Manager Joe Paniagua presented the proposal for the Main Street Lofts Housing Project. (Project
handout available upon request.) He then introduced Mr. Kerry Kirby, the developer of the project and president
and CEO of Intradel Corporation of New Orleans, Louisiana, who answered questions concerning the project.
After much discussion concerning questions about parking for the development, financing under the Community
Housing Development Organization (CHDO) structure and the resulting exemption from ad valorem taxes, lack of
any real equity in the project, and development fees, Mr. Kirby asked the committee to hear the bond application
either deny or accept it.
Committee Chairman Wentworth said that he did not sense that the Committee was enthusiastic about the project
and questioned the need for a bond hearing. Council Member Davis asked that bond counsel, Dan Settle, advise the
Committee. Mr. Settle said that given the staff's negative recommendation and the EDC's lack of support for the
application, it would not be required that it be presented to the Trinity Housing Finance Corporation. With respect
to the implication by Mr. Kirby that the Tarrant County Housing Finance Corporation perhaps would have
favorably considered this application, Mr. Settle stated that no application was submitted to Tarrant County
Housing Finance Corporation and in his best judgment, the Tarrant County Housing Finance Corporation would
reach the same conclusion given the nature of the project. Mr. Kirby said he did not file with the County because
of time constraints.
Mr. Wentworth said that he thought it was the consensus of the Committee to not recommend taking the project
forward to the Trinity Housing Finance Corporation. He summarized three concerns about the project: (1) since the
property would be taken off the tax rolls, there does not appear to be any return to the City, (2) the apparent
excessive development fees, and (3) neither the non-profit corporation nor the developer had any real equity in the
proj ect.
Discussion of a Developer Contract for the Sendera Ranch Development and Denton County Fresh Water
District#2A:
Jay Chapa, Financial Manager for the Water Department, presented an overview of the Sendera Ranch
velopment to be located west of Alliance Airport. The developer is asking the Fort Worth Water Department to
ovide offsite water and sewer facilities. This would allow voluntary annexation of the property and would then in
turn dissolve the Fresh Water District currently in existence. Mr. Chapa said that it is advantageous to eliminate the
Fresh Water District because if the City annexed the property with the Fresh Water District in existence, then the
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City would have to absorb the debt of the bonds of the Fresh Water District. He said it would also be better for the
City because the City would not have to deal with what might be a substandard water system. Mr. Chapa then
showed a map depicting current and proposed water lines and proposed tank and wastewater sites. He explained
g4he cost of the project to the City and how some of the costs would be defrayed by revenue from tap charges, utility
311-11 come and property taxes. Mr. Chapa also said the Water Department is still in the process of negotiating with the
developer to protect the City's investment in the event of a halt in development. There will be triggers in the
agreement, which, if not met, will require the developer to donate additional property to the City, which in turn
could be sold to recoup some of the funds from the initial expenditure for the water and sewer cost. Mr. Chapa also
added that there are other small developments that have put in well systems, and part of the agreement is that when
the City water lines are put in, these developments have to hook up at their cost to the City's water system. This
opens up more of the northwest area for development and allows a quicker payback on the City's investment.
Committee Member Moss wanted to know how much debt would have to be absorbed by the City. Mr. Chapa said
the City would have to absorb about $8.8 million.
Mr. Wentworth asked what Mr. Chapa was specifically asking the committee to do on the project. Mr. Chapa
replied that the Water Department was asking the Committee to endorse the project and allow for a finalized M &
C to be brought forward to the full Council on December 11.
Mr. Moss then asked about the source the City would use to pay the $8.8 million. Mr. Chapa explained that the
funding source would be through a bond sale by the Trinity River Authority. The Water Department would pay
those bonds over a twenty-year period. The payment would be part of the Water Department's operating budget.
Mr. Chapa said that the earliest that bonds for the project could be sold is in March 2002.
Mr. Wentworth said he believed it was the consensus of the Committee to bring the matter to the full Council. Mr.
Chapa will present the project to the Council on December 11.
escussion and Consideration of a Tax Abatement Application from Plaza Medical Center of Fort Worth:
Business Development Coordinator Ardina Washington presented information relevant to a proposed tax
abatement for Plaza Medical Center, an acute care hospital which is planning to update its facility with a 52,000
square foot renovation and a 7,300 square foot expansion. (Presentation handout available upon request.) The
hospital is located in the Medical District TIF, the South Enterprise Zone and the Central City. Ms. Washington
then introduced Mr. Steve Bernstein, President and CEO of Plaza Medical, who gave details concerning the
planned expansion of the hospital.
Ms. Washington then explained the abatement was only for real property for a ten-year period. She said at this time
a 30-50% abatement range was being proposed because staff realized there are other hospitals in the city, and they
believed that the Committee's discussion would help to determine a fair rate of abatement. Ms. Washington next
gave details of the proposed abatement.
Committee Member Jim Lane asked Ms. Washington what she had meant by a reference to other hospitals in her
presentation. Ms. Washington said that she was referring to the fact that the City wanted to avoid creating a sense
of competition between hospitals in the city. Mr. Wentworth added that when the Committee looked at abatements,
they tried to be careful about what the competitive situation is within that industry.
Council Member Davis, in whose district the project is located, said she supported recommending at least a 50%
abatement and moving the abatement forward to the full Council. She added that during the full Council
cussion, other factors that might take the abatement up to a higher level could be discussed. She also said that
would like to see examples of what types of abatements other cities were giving to hospitals.
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Committee Member Haskin said she hoped that, in addition to what had been discussed, there would be an
incentive for each bed they will put in that will save thousands of dollars and lives. She would like for such an
incentive to be a component of the plan. She also said that since the money the hospital was planning to spend
f e uld either go to Plaza Medical here or to a hospital outside the area, she hoped that we would be able to capture
jobs, new equipment and technology, as well as the emergency room beds that these funds would provide.
Committee Members Moss and Lane both said that they would support an abatement of larger than 50% for Plaza
Medical.
Chairman Wentworth said his sense of the Committee was to bring the abatement forward and to do so with
matrices of 50-80-100% or 50-75-100% so that these could be discussed in full Council. He also asked staff to
bring forth abatement agreements that Plaza Medical has received from other cities so that the Council has some
basis for analysis.
Discussion of the Cultural District and Will Rogers Memorial Center Master Plan:
Public Events Director Kirk Slaughter gave an update on the master plan of the Cultural District. He said they were
working on sewer replacement on Burnett Tandy and tying that into the Museum of Science and Natural History.
He added that the storm water system is currently being upgraded to handle additional capacity in the area. Water
and sewer on Gendy are awaiting inspection to be tied into the new Cowgirl Hall of Fame Museum. Resurfacing of
the parking lot in the museum area is scheduled to begin today. The Cowgirl Hall of Fame Museum is scheduled to
open in May.
Requests for Future Agenda Items
Committee Member Lane requested that at a future meeting staff prepare an update on administration of the Herd.
ecutive Session
e Committee conducted a closed meeting to receive legal advice from its attorney regarding the base valuation
of property within Tax Increment Reinvestment Zone Number Two, City of Fort Worth, Texas.
Approval of Minutes from the Meeting held October 2, 2001:
Committee Member Lane made a motion to approve the minutes from the meeting held on October 2, 2001.
Committee Member Moss seconded the motion. The motion carried unanimously.
Adjourn: Chairman Wentworth adjourned the meeting at 3:09 p.m.
Approved By:
Jeff Wentworth, Chairman
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