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HomeMy WebLinkAbout2001/06/12-Minutes-HEDC City of Fort Worth City Council Economic Development Committee Highlights of the Meeting Held Tuesday, June 12,2001 Committee Members Present: Jeff Wentworth, Frank Moss, and Becky Haskin Other Council Members and Staff Present: Mike Barber, George Behmanesh, Charles Boswell, Teresa Carreon, Patricia Garcia, Mike Groomer, Randle Harwood, Tom Higgins, Jim Keyes, Christine Maguire, Kirk Slaughter, Patsy Steele, Peter Vaky, Ardina Washington, and Sandra Youngblood 1. Call to Order: The meeting was called to order by Chairman Wentworth at 11:10 a.m. 2. Approval of Minutes from the Meeting held April 17, 2001 and May 15,2001: Committee member Moss made a motion to approve the minutes from the meeting held on April 17, 2001 as corrected and from the meeting held on May 15, 2001. Committee member Haskin seconded the motion. The minutes were approved. 3. Discussion of the North Texas Commission (NTC) and a Profile of the Metroplex: Dan Petty, President of the North Texas Commission, gave a brief overview of the NTC, a non-profit organization created 30 years ago to market what was known as the "New Big Airport." According to Mr. Petty, the purpose of the NTC is to "enhance and promote the economic vitality and the quality of life in the Dallas Fort Worth Metroplex by providing leadership and acting as a catalyst for regional cooperation." The Commission's focus is on regional marketing, regional cooperation, and improving the infrastructure. He also provided highlights of the 77th Texas Legislative Session in which he briefly discussed some of the senate and house bills that were filed for the Metroplex involving initiatives such as science & technology education, air quality, and transportation. Mr. Petty gave the web site address (www.ntc-dfw.org) and stated the NTC will be hosting a 30th Anniversary Membership Luncheon on September 6, 2001 at the American Airlines Center in Dallas. A NTC Marketing Packet will be kept in the Economic Development Office. Chairman Wentworth commended the NTC for doing a great job as being an entity which functions like a Chamber, but represents the whole region. Chairman Wentworth stated he was happy to hear the NTC mention in the presentation three key issues which are important to the Fort Worth City Council, air quality, mobility, and workforce development. Committee member Haskin stated that the NTC was doing a great job. 4. Discussion and Consideration of Downtown Hotel Projects (A.Convention Center Hotel Project B.T&P Hotel Project): Mike Groomer, Assistant City Manager, introduced Charlie Johnson, hotel developer, and Jeff Scruggs, representative of UBS Paine Weber. Mr. Johnson told the Committee the "charge"was to open a hotel as close as possible to the Convention Center expansion opening and to have a developer selected around Labor Day, 2001 for both projects if it is determined both are feasible. Currently, six Request for Qualifications (RFQ) have been received. The RFQs will be discussed in more detailed later during the EDC executive session. He also stated Request for Proposals (RFP) document would be available for developers on July 13, 2001 with a response deadline of July 18, 2001. Developers would be interviewed by early August and recommended for final selection for actual development of the hotel. Page I of 4 According to Mr. Johnson, a team meeting including legal counsel, bond counsel, UBS Paine Weber, and T&P ^. Group was held to try and form a structure to move forward in the next couple of months. The following points were made: • Operate under the hypothesis that both T&P and Headquarters Hotels would be built. • Request the T&P Developers provide the same information that was provided by the Headquarter Hotel Developers (this will allow equal comparison and the ability for the City to make policy decisions and move forward). • Provide information to staff by the middle of August or Labor Day. Jeff Scruggs, Managing Director with UBS Paine Weber responsible for the national infrastructure group and the hotel &project finance group, gave an overview of an overall bond financing strategy for the hotel projects. Mr. Scruggs stated because the buyer's of these type of securities are a limited number of large institutions that tend to make quite of few demands, he suggested a feasibility study be conducted by a well known feasibility consultant in the industry. The consultant would look at specific projects being proposed, look at the market capacity of both hotels, and then give revenue projections. This is the type of analysis needed in a report or offering statement that will go out to investors, and it is recommended that this occur first before they recommend a certain type of structure. Mr. Scruggs then briefly discussed two handouts, "Preliminary Milestones and Steps" and "Preliminary Overview of Key Transaction Issues" (copies available upon request.) He proposes to provide information on September 3, 2001 regarding the results of the feasibility analysis and preliminary recommendations on how one or both hotels would be potentially financed. Chairman Wentworth asked, "When you deal with a specific purchaser and a limited number do you bring back the Hotel Study Consultant? Do they come back in and give additional information? How does that work?" According to Mr. Scruggs, the hotel consultant has an ongoing role and they will provide the City with a substantially final draft report by the Labor Day period and at the time of the bond offering the consultant will be available for conferences calls, negotiations, and discussions so the buyer knows where information was obtained. Chairman Wentworth asked, "Are the bonds typically called private placements or are they registered?" According to Mr. Scruggs, municipal securities do not need to be registered as such. Additionally, Mr. Scruggs stated with respect to private placement, UBS Paine Weber tries not to do private placement because it limits the ability to retrieve bonds. After some additional discussion, Chairman Wentworth stated there would be no action required of the EDC until the September time frame. Mr. Groomer stated sometime during the time line the full Council would be briefed during Pre-Council. Mr. Groomer also stated that this would be a standing item on the EDC Agenda. 5. Discussion and Consideration of Revisions to the Code of Rules and Regulations of the Dallas-Fort Worth International Airport Board: Allen Parra, Vice President of Operations at D/FW Airport, gave a brief overview of the Revisions to the Code of Rules & Regulations of the D/FW International Board. A copy of the slide presentation and code book will be kept in the Economic Development Office. Marcia Wise, Assistant City Attorney, stated that revisions to the 'Code" need to be reviewed by the EDC and then go forward to the City Council for approval before it can go into effect. Page 2 of 4 Chairman Wentworth asked if there was a time constraint. Jim Crites, Executive Vice President for Airport 0�1 Operations at D/FW Airport, stated the revisions have been outstanding since December 1998. In June 1999, the Airport Board approved all but three items, mandatory credit card, insurance rating, and vehicle inspection programs for taxi cabs. The Dallas Transportation/Telecommunications Committee prolonged it due to those three issues. The three issues have now been resolved and will go before the Dallas City Council on June 13, 2001 for final approval of the Rules and Regulations. Mr. Crites stated he would like to go before the Fort Worth City Council for approval on the very next agenda date to move forward and complete the implementation. Marcia Wise stated there was an agreement with Airport Board to present for approval the Code of Rules and Regulations to the Fort Worth City Council on June 26, 2001. Chairman Wentworth asked that staff review and brief the council on the major points and make recommendations for approval at the June 26, 2001 City Council meeting. 6. Discussion of the Cultural District and Will Rogers Memorial Center Master Plan: Mike Groomer gave an update and displayed a map of the Cowgirl Hall of Fame Museum site which is currently under construction. He showed a map of the existing storm drain which was constructed when the first phase of Harley was completed and that served the Will Rogers Complex historically. According to Mr. Groomer, the preliminary estimate for the entire project including the reconstruction of Gendy is $3.25 million. The estimate does not include parking lots, street lights, or landscaping. If these items are included the estimate would be $3.5 million. Mr. Groomer discussed some alternate estimates that include phasing in various portions of constructions, but he stated the ultimate solution is estimated at $3.5 million. Additionally, he stated this project has not been presented to the City Council for funding as of yet. Mr. Groomer stated Carter & Burgess has been the common thread between the City and the Sundance Project Group. Board Member Moss asked when Phase I was anticipated for completion. Ms. Dickerson, Sundance Project Group Director, stated January 2002. Mr. Groomer stated $1.2 million will be needed to accommodate the museums for Phase I. There was some discussion about Phase I being changed from the original plan and that it did not include the museums. Vicki Dickerson displayed the original plan that was developed which was presented to Council in 1997. Ms. Dickerson's also discussed the Western Heritage Center Phase I & II handout (attached). She showed the difference of the original proposals — taking the storm sewer to an outlet and tying it into an existing structure. Ms. Dickerson's estimate proposal is $1.5 million for Phase I without landscaping. When including Phase II the estimate is about $3 million also without landscaping. After a lengthy discussion regarding the other differences and issues of each phase, Chairman Wentworth summarized that the difference between the City's and Ms. Dickerson's Phase's was the overlay and striping of the parking lot, taking the storm drain to the north side of the circle but not including the construction with a tie in at Harley on the east. Mike Groomer stated the issue is all the improvements are needed, however funding is limited. Mr. Groomer stated staff would come back with a modified version which will include priorities list of different perspectives. Mr. Groomer stated he and Mr. Boswell were working on the financing plan. Page 3 of 4 Ms. Dickerson asked that the City authorize Carter & Burgess to do the work which is $300,000. Chairman F N` Wentworth asked if we had the authority to approve. Mr. Groomer stated we have an agreement on the ultimate plan. Mr. Bass stated the Western Heritage Steering Committee (3 Museums, Stock Show, and Public Events Dept.) several months ago on part of those private institutions agreed to each contribute 20% of the design cost which is $300,000 and would like the City to contribute $60,000. Mr. Groomer asked if we have an existing Council action to participate. Mr. Slaughter said he believes one needs to be created. Mr. Groomer stated that the City participated with the original studies for Public Events and if we have an existing contract we can amend that contract, otherwise we can come back with an authorization. Chairman Wentworth asked staff to move forward with all proper authorizations and Committee Member Haskin asked that plan be inclusive. 7. Discussion of the Naming Rights for the Convention Center Arena: Kirk Slaughter, Public Events Director, asked that this item be delayed for one month for further research with Jeff Leuschel, Bond Counsel. 8. Executive Session: Chairman Wentworth read the following at 12:50 p.m. and then moved into Room 293: The Economic Development Committee will meet in a closed session to discuss or deliberate economic development negotiations as authorized by Section 551.086 of the Texas Government Code. 9. Adjourn: Chairman Wentworth adjourned the meeting at 1:57 p.m. Approved By: Jeff Wentworth, Chairman .n Page 4 of 4