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HomeMy WebLinkAbout1997/09/17-Minutes-HEDC ECONOMIC DEVELOPMENT COMMITTEE WEDNESDAY, SEPTEMBER 17, 1997 Notes Chairman Wentworth called the meeting to order at 2:09 p.m. Members Present: Councilmembers Hirt, McCloud and Lane. Chairman Wentworth began the meeting by asking the ED Committee if there were questions concerning the notes from the last meeting. Committee members raised no questions. Southside TIF Briefing Chairman Wentworth introduced Don Scott, President of Fort Worth Southside Development District, Inc. Mr. Scott presented an overview and history of Fort Worth South and introduced information in the preliminary financing plan of the proposed Southside Tax Increment Finance District. He discussed the current economic status of the area and how a TIF District could benefit the area. He presented a map showing the current proposed boundaries of the TIF but emphasized that the boundaries are not static since requests by property owners to be added or removed from the proposed district are being heard and granted. Councilmember Hirt asked two questions of Mr. Scott: 1) Whether the TIF boundaries coincided with the Southside Development District?; and 2)How have property owners and residents within the district been notified of the proposed district and its implications? Concerning the first question, Mr. Scott explained that the TIF boundaries are actually smaller in size that the Development District boundaries because most of the Fairmount residential area was left out. This area was not included because TIF legislation limits the total residential area within a TIF District to 10% and because inclusion of this area in the TIF would remove the historic incentives currently available to many of the residential properties. Concerning the second question, Mr. Scott explained that letters were sent to all property owners within the TIF (over 13 00) inviting them to attend a public meeting to discuss the issues involved in creating a TIF. Additionally, a newsletter is being prepared, containing information on the TIF, that will be sent to all residents and property owners within the TIF. An advisory committee has also been formed and has met once. Mr. Lane expressed his support for the project and expressed his opinion regarding the under- utilization of the Hospitals and Hospital District Mike Groomer asked Mr. Scott if there was any specific reason appraisals had decreased in the Southside area. Mr. Scott responded that he believed a variety of factors were probably attributable to the recent decrease in property values. He stated that he believes that appraisal values have fallen to their lowest point and that this is the appropriate time to create a TIF District in order to capture the increment. Chairman Wentworth asked what the next step should be. Jay Chapa, Economic Development Coordinator responded that upon direction from the Committee, a resolution would be prepared that demonstrates the Council's intent to establish this TIF District. Adoption of this resolution at the next City Council meeting will allow staff to send out official notices to the taxing jurisdictions that impact the TIF District as required by State law. Councilmember Hirt moved to have the resolution on the next City Council agenda, Councilmember Lane provided the second to the motion. The motion passed unanimously. Continued Discussion of Annual Tax Abatement Audit Jay Chapa began the discussion by providing information on the last two audit years of those companies that have not met all commitments. The presentation started with the Dannon Company. The discussion regarding the Dannon abatement centered on the severe deficiency in M/WBE supply and service contracts. Councilmember Hirt asked that some evidence of a good faith effort by Dannon to reach the M/WBE commitment be shown in order to justify the staff recommendation of no reduction in the Dannon abatement. Councilmember McCloud asked how the situation with Dannon could reach such a severe level and why was it not addressed in the past. Staff provided a letter sent from Dannon expressing their view and concern over not meeting the M/WBE commitment. Additionally, staff explained that in the past, the abatements have been judged on a company's overall performance in all commitment areas and that Dannon has traditionally done exceptionally well in all areas except M/WBE participation. Chairman Wentworth asked what efforts the M/WBE Office is making in this area. Assistant City Manager Mike Groomer introduced Assistant City Manager Ramon Guajardo who is responsible for the City's M/WBE program. Mr. Guajardo explained that he believed that the responsibility of the M/WBE Office' staff is to support these companies but that ultimately, the responsibility of companies to meet all commitments lies with them. Chairman expressed his concern over how abatements should be judged and how a penalty should be applied. He stated that working through abatements that were created up to five years ago was in itself difficult since no specific penalties are tied to partial deficiencies within the abatement terms and that trying to deal with past deficiencies is impossible. He asked that the committee go through the information on all the companies that were deficient before deciding on the possible penalties. Jay Chapa then went through the information on Conti Industries, Menasco Aerosystems, Bank One, Nokia and Star Uniform. After going through all the information, Chairman Wentworth asked the committee members for recommendations on how to proceed. Councilmember Lane moved that the committee approve the staff recommendations all agreements but Dannon. Councilmember Hirt objected and said that Nokia should also receive some sort of penalty. Chairman Wentworth asked for her recommendation on the level of penalty that should be applied. Councilmember Hirt recommended and moved that staff recommendations should be approved on all abatements except Dannon and Nokia and that those two abatements should be reduced by 5%. Councilmember McCloud agreed and provided the second to the motion. Councilmember Lane stated that the M/WBE certification process within the City should be altered and made more user friendly for companies to get certified. The other Committee members agreed and asked that this point be made when the issue is brought before the Council. Councilmember Hirt's motion passed unanimously. Discussion of Council Priority Concerning a Sound Economx Ramon Guajardo, Asst. City Manager gave an introduction concerning the overall program relating the October 22"d Council meeting on a Sound Economy. He showed the committee the mission statement of central city redevelopment which staff feels is key in a sound economy strategy. He also presented the factors impacting redevelopment of Central City areas and discussed a model on how redevelopment is accomplished, showing those elements that must be present in order for a project to be successful. Mr. Guajardo then introduced Fran McCarthy of the Strategy 2000 Central City Development Committee that presented the committees work and findings. He explained that in redevelopment you must have three key ingredients: people, project and process. He referred Downtown Fort Worth, Inc. and Fort Worth South as successful partnerships in which all three ingredients were present. Councilmember Lane explained that he believes that not enough marketing of the City occurs and especially of the Hospital District. He believes that strong interest in the medical field should be a starting point in the promotion of the Hospital District. Ramon Guajardo showed the committee the partnership mission statement from Dallas and that Fort Worth should proceed with a similar type project in which inclusion of minorities and women must be part of the expanding economic opportunities in the overall concept of a strong economy. He said this type of effort must be driven by the private sector. He also asked that if the committee approved this type of presentation and focus would be placed on the October 22nd meeting to the full Council. Chairman Wentworth asked if any committee members objected to this format and focus. No objection from the committee was received. Councilmember McCloud moved for adjournment, with Councilmember Hirt providing the second on the motion. Before adjourning the meeting, Chairman Wentworth brought up two items that the Committee should discuss in upcoming meetings: 1. The City's Sesquicentennial that is two occur within two years; 2. Air quality issues and the impact on the City and Metroplex. Chairman Wentworth adjourned the meeting at 3:55 p.m.