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Home My WebLink About2011/03/01-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Present: Vice President Danny Scarth (Arrived at 2:42) Secretary Carter Burdette (Arrived at 2:41) Treasurer W.B. "Zim" Zimmerman Director Mike Moncrief Director Salvador Espino Director Jungus Jordan Director Kathleen Hicks Director Joel Burns Absent: President Frank Moss City Staff: Susan Alanis, Assistant City Manager Peter Vaky, Deputy City Attorney Ron Gonzales, Assistant City Secretary Robert Sturns, Economic Development Manager, Housing & Economic Development Dept. Other City staff in attendance included: Jay Chapa, Director, Housing and Economic Development Department Cynthia Garcia, Assistant Director, Housing & Economic Development Department LeAnn Guzman, Assistant City Attorney Call to Order (Agenda Item 1) With a quorum of the Board Members present, but with President Moss absent and Vice President Scarth and Secretary Burdette temporarily absent, Assistant City Manager Susan Alanis called the called - special session to order for the Board of Directors of the Fort Worth Local Development Corporation (Corporation) at 2:36 p.m. on Tuesday, March 1, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas. In the absence of President Moss and Vice President Scarth, Assistant City Manager Alanis called for a motion to appoint a temporary Chair to conduct the meeting. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 2 MOTION: Upon a motion made by Director Jordan and seconded by Director Espino, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously six (6) "ayes" and zero (0) "nays ", with President Moss absent and Vice President Scarth and Secretary Burdette temporarily absent, to appoint Director Mike Moncrief as temporary Chair. The motion carried. Approval of Minutes from Meeting held on December 7, 2010 (Agenda Item 2) Director Moncrief opened the floor for a motion on the minutes. MOTION: Upon a motion made by Director Burns and seconded by Director Zimmerman, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously six (6) "ayes" and zero (0) "nays ", with President Moss absent and Vice President Scarth and Secretary Burdette temporarily absent, to approve the minutes of the December 7, 2010, meeting of the Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report (Agenda Item 3A) Director Moncrief referenced the following financial report: The Balance Sheet dated January 31, 2011, for the Corporation (unaudited) as follows: Assets Cash and cash equivalents $2,112,090.63 Interest Receivable 9,668.96 Accounts Receivable 7,280.69 Total Assets $2,129,040.28 Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Total Liabilities 0.00 Fund Balance (Deficit) Designated for Authorized Expenditures $2,492,627.92 Net Income (363,587.64) Undesignated 0.00 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 3 Consideration of Financial Report (cont'd) (Agenda Item 3A) Total Fund Balance 2,129,040.28 Total Liabilities and Fund Balance $2,129,040.28 The Statement of Revenues and Expenditures from October 1, 2010, through January 31, 2011 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement Revenue from Rents Gas Lease Bonus Gas Lease Royalties HUD Loan Administration Fee Interest Income Change in Fair Value of Investments Other Revenue Total Revenue Expenditures Bank Charges Contractual Services Insurance Property Management Property Purchase Property Taxes Repairs Security System Storm Water Utility Transfers to City Utilities Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures $38,390.54 120,709.56 0.00 44,615.88 0.00 8,226.20 0.00 0.00 $97.21 404,553.39 12,148.50 4,828.40 0.00 120,315.39 16,353.00 2,106.52 10,545.00 0.00 4,582.41 $211,942.18 $575,529.82 ($363,587.64) Fort Worth Local Development Corporation Schedule of Available Funds dated January 31, 2011, (unaudited) for the Corporation as follows: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 4 Consideration of Financial Report (cont'd) Total Cash at January 31, 2011 Cash in Property Management Account Cash available in City account Commitments Remediation of 1108 E. Berry Evans & Rosedale Enhanced CFA Survey Expenses Reserves Maintenance Reserve Property Tax Reserve Total Commitments & Reserves Unrestricted Cash Available (Agenda Item 3A) $2,112,090.63 (11,392.00) 2,100,697.73 $150,000.00 $298,553.64 $6,250.00 100,000.00 100,000.00 654,803.64 $1,445,894.09 The Schedule of Available Funds noted that on August 21, 2007, $275,000.00 was transferred to the City (M &C C- 22334) with the understanding that it would be paid back when properties along Lancaster are sold. The transfer was made to fund an art sculpture on Lancaster Avenue. On December 18, 2007, $162,000.00 was transferred to the City (M &C C- 22592) with the understanding that it would be paid back when properties along Lancaster are sold. The transfer was made to fund survey services and improvements on Lancaster Avenue. In September 2008, $92,321.91 of the $162,000.00 was returned to the LDC. Director Moncrief opened the floor for discussion and /or comments on these reports. There was no discussion or formal action on the reports and the reports were accepted as presented. Adopt Resolution Authorizing Loan to Oliver's Fine Foods, Inc., for Conversion of Leased Space at 415 Throckmorton Street to a Neighborhood Grocery Store (Agenda Item 4) Mr. Robert Sturns, Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, Mr. Sturns provided the following background information relative to Oliver's Fine Food, Inc.: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 5 Adopt Resolution Authorizing Loan to Oliver's Fine Foods, Inc., for Conversion of Leased Space at 415 Throckmorton Street to a Neighborhood Grocery Store (cont'd) • Neighborhood marked committed to meeting personal needs. • Family -owned and operated. o Todd Bush, Executive Chef and Owner • One location, Mansfield, Texas. • Specialties: • Appetizers • Gourmet cheese • Fresh meats and fish • Boar's Head deli meats • Prepared meals o Deli sandwiches and salads • Desserts • Premium wines and beer (Agenda Item 4) Mr. Sturns displayed an aerial photograph of the property location which was the previous location for the Fort Worth Convention and Visitors Bureau and advised the Corporation of the proposed project reflected below: • Downtown Grocery Store consisting of 6,600 square feet (including basement). • Total investment of $1,500,000.00. • Hiring of 20 full -time employees. • Full- service deli and restaurant. • Cafe seating along sidewalk. • Development will tailor needs to those living/visiting the Downtown area. • Foyer access to Sanger Loft residents. Mr. Sturns displayed a slide that showed the current conditions of the location and then a slide that presented a proposed overview of the site. He added that there would be some streetscape improvements for the outside seating area and that the company would be seeking $100,000.00 from the TIF to fund those improvements. He explained the need for incentives as follows: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 6 Adopt Resolution Authorizing Loan to Oliver's Fine Foods, Inc., for Conversion of Leased Space at 415 Throckmorton Street to a Neighborhood Grocery Store (cont'd) (Agenda Item 4) • Costs to redevelop site are prohibitive to rents that may be achieved at the location. • Site has been vacant since May 2009. • Fills a gap in the downtown retail mix and will serve as an amenity for residential development. (Secretary Burdette assumed his place at the table.) Mr. Sturns advised of Oliver's commitment to this endeavor as follows: • Investment o Real & Personal Property Investment - $1,500,000.00 • Construction • Fort Worth companies - $1,000,000.00 • Fort Worth M /WBE companies - $500,000.00 • Jobs • Minimum of 20 full -time employees (FTE) • Fort Worth residents — 90 percent or 18 FTE • Central City residents — 50 percent or 10 FTE • Supply & Service • Fort Worth contractors — 80 percent or $64,000.00 • Fort Worth M /WBE contractors — 5 percent or $4,000.00 Mr. Sturns summarized the incentive proposal as reflected below: • LDC loan up to $450,000.00 to Oliver's for tenant improvements. • City Chapter 380 agreement provides 100 percent of $0.01 annual sales tax generated from taxable items to pay back LDC loan. (Vice President Scarth assumed his place at the table.) He advised of the terms of the loan below: • Loan will have 20 -year payoff: o Min. Annual Payment Year 1 -2 = $15,000.00 • Min. Annual Payment Year 3 -5 = $20,000.00 • Min. Annual Payment Year 6 -20 = $24,000.00 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 7 Adopt Resolution Authorizing Loan to Oliver's Fine Foods, Inc., for Conversion of Leased Space at 415 Throckmorton Street to a Neighborhood Grocery Store (cont'd) (Agenda Item 4) • Sundance entity will guarantee the loan on an annual basis and pick up the loan payments if Oliver's lease ends prior to full payback of loan. • If Oliver's moves out, Sundance entity will have one year to find new grocer or loan will be due in full. Mr. Sturns stated that the next steps based on the Corporation's approval, was to have a vote by the City Council on the March 8, 2011, City Council agenda on the Chapter 380 which would be a backstop for the LDC loan. Director Moncrief opened the floor for discussion on this issue. There being no discussion, Director Moncrief opened the floor for a motion. MOTION: Upon a motion made by Director Hicks and seconded by Director Espino, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously eight (8) "ayes" and zero (0) "nays ", with President Moss absent to approve and adopt Resolution No. FWLDC-201 1 -0 1. The motion carried. Executive Session (Agenda Item 5) Director Moncrief stated that he had been advised that an Executive Session was not necessary on the following items: A. Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article X, Section 9, of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas Government Code: (i) legal issues concerning any current agenda item; and B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations related to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, MARCH 1, 2011 Page 8 Requests for Future Agenda Items (Agenda Item 6) Director Moncrief opened the floor on requests for future agenda items. No requests were made by Corporation Board members. Adjourn (Agenda Item 9) With no further business before the Board, Director Moncrief adjourned the called — special session of the Fort Worth Local Development Corporation at 2:46 p.m. on Tuesday, March 1, 2011. These minutes approved by the Fort Worth Local Development Corporation on the day of __April_, 2011. APPROVED: �r Frank Moss President ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: Ronald P. Gonzales, T C Assistant City Secretary