HomeMy WebLinkAbout2001/08/21-Minutes-HEDC City of Fort Worth
City Council
Economic Development Committee
Highlights of the Meeting Held
Tuesday, August 21,2001
Committee Members Present: Jeff Wentworth, Becky Haskin, Frank Moss, and Jim Lane
Other Council Members and Staff Present: Council member Wendy Davis, Tom Higgins, Ardina Washington,
Patricia Garcia, Teresa Carreon, Brian Boerner, Kirk Slaughter, Jim Keyes, Peter Vaky, Robert Sturns, Mike
Groomer, Christa Lopez, Kevin Hughes, Steve Price, Marcia Wise, Sandy Oliver, Vida Hariri, Joe Paniagua, Jan
Baker, Jacqueline Bender
1. Call to Order: The meeting was called to order by Chairman Wentworth at 3:05 p.m.
2. Approval of Minutes from the Meeting Held July 17, 2001:
Committee member Moss made a motion to approve the minutes from the meeting held on July 17, 2001.
Committee member Haskin seconded the motion. The minutes were approved.
3. Discussion of the Cultural District and Will Rogers Memorial Center Master Plan:
Kirk Slaughter, Public Events Director, gave the Committee the following brief update: the plans are on
schedule for the opening target date; George Behmanesh, Assistant Director, Transportation & Public Works
(T/PW), is preparing a Community Facilities Agreement with the Cowgirl Hall of Fame to be presented to the
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City Council within the next month; and Carter & Burgess is has begun the design work, keeping in mind the
opening date.
4. Discussion and Consideration of Downtown Hotel Projects (A.Convention Center Hotel Project B.T&P Hotel Project):
Mr. Groomer, Assistant City Manager, told the Committee that the Developer Interview (DI) Committee (Jeff
Wentworth, Wendy Davis, Buz Brightbill, Kirk Slaughter, Charlie Johnson, Jeff Scruggs, Ralph Cook, Laura
Alexander and Mike Groomer) spent all day Wednesday, August 15, 2001, reviewing proposals from four very
qualified groups of developers. The DI Committee selected the Portman Group from Atlanta, Georgia to
recommend to the City Council. The Portman Group was selected because of its recent success and because of
its:
• Completion of a Sacramento Hotel (which was opened on schedule and within budget)
• Near completion of a similar project in Charlotte, North Carolina
• Flexibility to work with the City's time line (a specific agenda was not presented)
• Independence from a specific brand of hotel (giving the City flexibility to negotiate with the
perspective hotel flags)
• Strong, positive reputation and proven track record with the bond community
Mr. Groomer stated that the DI Committee briefed the Council regarding the recommendation and has asked to
extend the negotiations to the Portland Group and to begin the process to identify the hotel flag. The DI
Committee asked to move forward more formally with the Portman Group which would allow the Portman
Group to present drafts and possibly final agreements to the City Council in early December 2001. The drafts
E vHill include financial liability and all other documents needed to proceed and continue �,vlth the target hotel
opening date of.lanuary 2004, which will correspond Nkith the second phase of the Cony ention Center.
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Mr. Wentworth stated that this information was brought before the full Council and the Council did encourage
staff and the consultants to proceed with the outline. Mr. Groomer stated communication would remain open
with the Garfield Group, which was the DI Committee's second choice.
Mr. Moss asked what impact making the T&P development an upscale hotel would have on the Convention
Center Hotel project. Mr. Moss is concerned that the overall market on the lower end of downtown needs to be
developed without adding competition to the Convention Center Hotel from a lower-tier hotel.
Mr. Groomer stated the T&P project was viable, but the highest priority and focus would be on the Convention
Center Hotel project. Council member Davis stated that Mr. Moss' concern is being addressed by HVS in a
feasibility and bond market study, which will eventually be presented the City Council.
5. Discussion of Environmental Remediation Enforcement Measures Available to the City:
Christa Lopez, Assistant City Attorney, provided information to the Committee concerning the question of
what measures the City may have to force property owners clean up their property if they do not qualify for the
City's brownfields remediation funding. Ms. Lopez stated that remedial measures or enforcement of
environmental laws are handled mostly through federal and state agencies. The City can issue citations for
violations. However, beyond finding the property owner guilty of not being in compliance with the City Code
and assessing a fine the City does not have the jurisdiction to force a violator remediate. Real enforcement
power and resource lies with the Texas Natural Resources Conservation Commission (TNRCC) and the
Environment Protection Agency (EPA), which work hand in hand. The laws are clear that the EPA and
TNRCC control in the arena of environmental law. Cleanup is basically voluntary unless the risk is eminent or
the property needs to be stabilized right away. Otherwise, it goes through an evaluation process beginning with
the TNRCC or EPA for Superfund money. The particular area is then ranked on a priority list and, depending
on the ranking, funds are appropriated.
Ms. Lopez discussed two possible funding sources for cleanup of contaminated property, 1) the Voluntary
Clean Up Program and 2) the Innocent Owner/Operator Program. Ms. Lopez stated the TNRCC uses the
Voluntary Clean Up Program as an incentive to the buyer who agrees to clean up contaminated property. By
completing an application, paying the application fee, and agreeing to a schedule of cleanup, the TNRCC will
remove liability from the property owner. The program is voluntary and the City cannot force a buyer or seller
enter into an involuntary remediation. With the Innocent Owner/Operator Program, a property owner located
adjacent to property that is contaminated and it has affected the owner's property, can receive immunity from
liability if the buyer agrees to clean it up. The TNRCC also provide assistance to the property owner.
Mr. Vaky, Assistant City Attorney, stated that the current structure of environmental laws and regulations
encourages that buyer of real property to seek incentives, but does not give the property owner incentive to
cleanup the property in order to make it more attractive fore development by a potential buyer. Ms. Lopez
stated the City, the TNRCC, and the EPA want the sellers to cleanup their property, but once it is brought up to
standard there is not much the City can do. The violator may not bring it up to the City's standard, but the
City's standards may not be equivalent to a violation in environmental law; therefore, the TNRCC will not
enforce cleanup.
Chairman Wentworth stated a municipality cannot enforce an abandoned gas station owner to remediate the
property unless eminent health and safety issues can be proved. A municipality only has the authority to
impose a fine up to $2,000. Mr. Vaky stated we are employing every tool we have to force the property owner
to bring property up to a higher standard. Mrs. Haskin asked are there not any other incentives (charge higher
tax rate, charge an extra fee, or offer an abatement of some sort) that can be used to encourage property
cleanup?
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Mr. Boerner stated the federal money is a spring board for other results such as the Rock Island Hills
Apartments, Bass Hall and housing occurring down West 71" this is a reality of Brownfields which has been
used since 1985. Underground Storage funds will be applied to the abandoned gas station sites. This is a new
program that will be available in the next few weeks. Mr. Boerner stated there is a property tax benefit for
property owner installing pollution abatement equipment on an existing facility. Mr. Boerner suggested that if
the City wants to be innovative, an abatement scheme to promote cleanup of local gas stations can be
developed.
After much discussion, the Committee asked staff to research sending a letter to the environmental division of
large oil corporations about the cleanup of old gas stations and ask how the corporations can help. The
Committee also suggested staff contact other cities and possibly present these concerns before the State
Legislature at a future session.
6. Discussion and Consideration of Amending the Tax Abatement Agreement with Tech Data Corporation:
Ardina Washington, Business Development Coordinator, presented Tech Data Corporation's request for an
amendment to its current tax abatement agreement (handout available upon request). The modification request
is due to the slowing computer industry. The company would like to revise its total employment commitment
from 456 (originally projected in 1995) to 225. As part of the requested amendment, Tech Data is willing to
increase its commitment to hire Fort Worth residents (from 50% to 55%) and to hire Central City residents
(from 25% to 30%). Ms. Washington introduced Ben Godwin, Vice President of Real Estate for Tech Data.
Chairman Wentworth asked staff to be certain Tech Data understands 55% of total jobs must be occupied by
Fort Worth residents and 30% by Central City residents regardless of the total number of employees the
company has. Mr. Godwin stated Tech Data has always exceeded their tax abatement commitments and he
does not believe there will be any difficulties in the future. A motion was made by Committee member Lane to
send the request forward to the full Council for approval. Committee member Haskin seconded the motion.
7. Executive Session:
There were no Executive Session items for this meeting.
8. Adjourn: Chairman Wentworth adjourned the meeting at 3:55 p.m.
Approved By:
Jeff Wentworth, Chairman
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