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HomeMy WebLinkAbout1998/10/21-Minutes-HEDC Highlights of the Wednesday, October 21, 1998 Economic Development Committee Meeting I. STANDING ITEMS II. NEW BUSINESS A. Discussion Of Tax Delinquent Property Foreclosure Process Ben Loughry of the Central Cities Redevelopment Committee passed out the attached memo and explained to the committee the points discussed in the memo outlining the concerns of the committee. (See memo attached). In response to the concerns expressed by Mr. Loughry Chairman Wentworth suggested the City's Organization Analyst Unit(OAU) review the process. Chairman Wentworth made a motion for the City's OAU to review the process. Councilmember Haskin provided the second. B. Update On Fort Worth Opportunity Center Mike Berry and Jay Hayes of Hillwood Development made the presentation. Mr. Berry introduced Jay Hayes as the Hillwood representative for the Fort Worth Opportunity Center. Mr. Hayes explained that the CESSNA 21St Street Campus in Wichita, which is primarily a welfare to work training operation and is heavily funded by the State, Federal and City governments is the model for the Fort Worth Opportunity Center. Mr. Hayes explained that out of the 300 employees that have been in the program a 52% success rate has been achieved on the intake side. Once a person has gone through the training, the success rate increases to 75% that the client will maintain the job. Mr. Hayes explained that Hillwood wants to create a program that combines the different and best models available to focus on how the future workforce should look like. (A video of the Cessna project was shown to the board.) Mrs. Haskin suggested that Hillwood attend the National League of Cities in Kansas City in December and present the video at that conference. Mr. Berry distributed a handout detailing the construction and project schedule for the facility. He explained that plans are to complete the renovation of the eastern part of that building by July in order to begin initial operations in August. Chairman Wentworth asked what training activities would occur first in the facility. Mr. Berry stated it would depend on which companies committed first to the project. He speculated that manufacturing and computer-based training would be the first operations in the building. Chairman Wentworth asked Mr. Berry to brief the Council on November 3`d or 101h and present the film. C. Removal of Properties from Fort Worth TIF District#4 (Southside TIF District) Tom Higgins, Director of Economic Development made the presentation. Mr. Higgins explained to the Board that when the Southside TIF was formed in 1997 it was recognized thta there was a number of properties that were eligible for historic designation in the TIF. He explained that two property owners are requesting to be removed from the TIF so that they can receive the historic exemption because State law prohibits historic exemptions within a TIF. The Southside Tif District Board of Directors has passed a resolution supporting that these properties be removed from the TIF. It was explained that properties may be removed until debt is issued by the TIF, but that removing properties from the TIF has a negative impact on the TIF's ability to gain increment because the overall TIF value is lowered. Chairman Wentworth asked how long does the tax exemption for historical designations last? David Yett, Assistant City Attorney stated that exemption could last up to 15 years depending on the designation. The committee asked why a property must be removed in order to receive a historical designation? Mr. Higgins explained that a property can be designated but because it is in the TIF, it would not be eligible for the incentive. He explained that a property can be put back in the TIF, but it must be done by City Council action once the exemption ends. Councilmember Haskin asked why wouldn't a property be removed from the TIF once the historic designation is granted to avoid the possibility of losing TIF increment if an owner never applies for the designation? Mr. Yett explained that a property owner could apply for.a historical designation but can't receive the exemption until the property is removed from the TIF. Consequently, a property owner may end up going through the whole process of applying and qualifying for historical designation without any assurance that once designated the property will be carved out by the City Council. He stated that it was unclear from the law what effect the removal of properties would have on the TIF and that clarification from the General Attorney is needed on the subject but recommended releasing these 2 properties from the TIF at the current time. Chairman Wentworth motioned to support the recommendation and to have the subject forwarded to the City Council for consideration. Councilmember Haskin gave the second. Chairman Wentworth also asked the Legal staff to get clarification from the Attorney General's Office on the subject C. Update on Status of Fruehauf Property r , David Yett, Assitant City Attorney explained that the Freuhauff Property was slated to be transfered to the City in September 1996 when the bond indebteness was paid off. Because of environmental problems and tax arrears the City would did accept title to the property at that time. Additionally, the City decided it would not accept title until all issues were resolved. It has been determined that all tax arrears and environmental issues have been settled and staff is recommending that the City accept title to property once all of the paperwork is complete. Chairman Wentworth asked if an environmental study had been done on the property? Mr. Groomer stated that an environmental study had been done and reviewed by the City's Environmental Management Department and that no concerns were found. Chairman Wentworth motioned that an M & C allowing the City to take possession of property be forwarded to the City Council for action. Councilmember Haskin provided the second to the motion.