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Home My WebLink About2011/09/08-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 8, 2011 Present: President Frank Moss Vice President Danny Scarth Treasurer W.B. "Zim" Zimmerman Director Betsy Price Director Salvador Espino Director Dennis Shingleton Director Jungus Jordan Director Joel Burns Director Kathleen Hicks City staff: Susan Alanis, Assistant City Manager Peter Vaky, Deputy City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Director, Housing & Economic Development Department Cynthia Garcia, Administrator Other City staff in attendance included: Robert Stums, Economic Development Manager, Housing & Economic Development Dept. Mark Folden, Business Development Coordinator, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Economic Development Department Call to Order (Agenda Item 1) With a quorum of the Board Members present, President Moss called the called - special session to order for the Board of Directors of the Fort Worth Local Development Corporation (Corporation) at 9:15 a.m. on Thursday, September 8, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. Approval of Minutes from Meeting Held on August 2, 2011 (Agenda Item 2) President Moss opened the floor for a motion on the minutes. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 2 Approval of Minutes from Meeting Held on August 2, 2011 (cont'd) (Agenda Item 2) MOTION: Upon a motion made by Director Shingleton and seconded by Director Price, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously nine (9) "ayes" and zero (0) "nays ", to approve the minutes of the August 2, 2011, meeting of the Fort Worth Local Development Corporation. The motion carried. Election of Secretary (Agenda Item 3) Mr. Jay Chapa, Director, Housing and Economic Development Department, advised that the position of Secretary became vacant once Director Carter Burdette was no longer serving as a member of the City Council. He asked that the Corporation Board nominate a member to serve as Secretary for the Fort Worth Local Development Corporation. President Moss opened the floor for Secretary for the Fort Worth Local Development Corporation. MOTION: Upon a motion made by Director Espino and seconded by Director Hicks, the Board voted unanimously nine (9) "ayes" and zero (0) "nays ", that Director Dennis Shingleton be elected as Secretary for the Fort Worth Local Development Corporation, effective September 8, 2011. The motion carried. Consideration of Financial Report (Agenda Item 4A) President Moss referenced the following financial report: The Balance Sheet dated July 31, 2011, for the Corporation (unaudited) as follows: Assets Cash and cash equivalents Interest Receivable Accounts Receivable Total Assets Liabilities and Fund Balance Accounts and Contracts Payable $1,880,438.52 8,544.49 38.09 $1,889,021.10 WE Total Liabilities 0.00 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 3 Consideration of Financial Report (cont'd) Fund Balance (Deficit) Designated for Authorized Expenditures Net Income Undesignated Total Fund Balance Total Liabilities and Fund Balance (Agenda Item 4A) $2,492,627.92 (603,606.82) 0.00 1,889,021.10 $1,889,021.10 The Statement of Revenues and Expenditures from October 1, 2010, through July 31, 2011 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $42,324.86 Revenue from Rents 301,773.90 Gas Lease Bonus 0.00 Gas Lease Royalties 91,761.74 Easement for Pipelines 15,003.29 Interest Income 18,720.61 Gas Well Shut in Payment 5,000.00 Other Revenue 51,198.38 Total Revenue $525.782.78 Expenditures Bank Charges $264.00 Contractual Services 723,218.06 Insurance 49,336.50 Property Management 12,071.00 Property Purchase 0.00 Property Taxes 120,315.39 Repairs 142,201.84 Security System 4,887.42 Storm Water Utility 26,362.50 Transfers to City 26,000.00 Utilities 24,702.89 Total Expenditures $1,029,389.60 Excess (Deficiency) of Revenues Over (Under) Expenditures ($603,606.82) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 4 Consideration of Financial Report (cont'd) (Agenda Item 4A) Fort Worth Local Development Corporation dated July 31, 2011, (unaudited) for the Corporation as follows: Total Cash at July 31, 2011 Cash in Property Management Account Cash available in City account Commitments Reserves Evans & Rosedale Enhanced CFA Survey Expenses Lancaster Project Oliver's Fine Foods Maintenance Reserve Property Tax Reserve Total Commitments & Reserves Unrestricted Cash Available $1,880,438.52 (19,387.43) 1,861,051.09 $13,870.78 6,250.00 575,500.00 455,000.00 100,000.00 100,000.00 1,250,620.78 $610,430.31 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. President Moss 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. President Moss stated that Agenda Item 6 would be moved up on the agenda for consideration at this time. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 5 Adopt Resolution Authorizing a Lease Agreement with Lasko Products, Inc., for the Property Located at 4600 Blue Mound Road (Agenda Item 6) Ms. Cynthia Garcia, Administrator, addressed the Corporation of the proposed lease agreement. She advised that in April of this year, staff had discussed a proposed lease of this property with United Pipe and Steel Corporation; however, the company decided not to lease the property and therefore it was placed back on the market. Using a PowerPoint Presentation, Ms. Garcia displayed an aerial view of the property owned by the Corporation located west of IH35 and south of Loop 820 on Blue Mound Road and Meacham Boulevard. Her next slide showed a closer view of the building and she advised that United Pipe and Steel Corporation had requested to lease only a portion of the building whereas Lasko Products, Inc., had the desire to lease the entire building except the office and parking space depicted yellow. Ms. Garcia advised of the following proposed terms for the lease: Use — Lasko Products, Inc., would like to lease as warehouse space for the storage and distribution of fans, humidifiers, utility boxes, heaters and parts. Term — Five (5) years and 1' /z month lease of approximately 210,898 square feet. • Rent o Year 1 o Year 2 o Year 3 • Year 4 • Year 5 • P/z Mot $1.75 /sf ($30,755.95 a month) $1.84 /sf ($32,337.69 a month) $1.93 /sf ($33,919.42 a month) $2.03 /sf ($35,676.91 a month) $2.13 /sf ($37,434.39 a month) iths free rent in order that tenant can make improvements AS IS lease Tenant is responsible for all utilities and maintenance. LDC responsible for Roof, Structural Issues, Taxes (Up to Current Year Taxes) and Insurance of the building. Ms. Garcia stated that staff recommended the Corporation authorize the lease with Lasko Products, Inc., with the lease term to begin upon execution of the lease. President Moss opened the floor for discussion on this issue. There being no discussion, President Moss opened the floor for a motion. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 6 Adopt Resolution Authorizing a Lease Agreement with Lasko Products, Inc., for the Property Located at 4600 Blue Mound Road (cont'd) (Agenda Item 6) MOTION: Upon a motion made by Director Hicks and seconded by Director Burns, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously nine (9) "ayes" and zero (0) "nays ", to approve and adopt Resolution No. FWLDC - 2011 -15. The motion carried. President Moss recessed the meeting of Board of Directors of the Fort Worth Local Development Corporation at 9:20 a.m., on Thursday, September 8, 2011, and advised that the meeting would reconvene after conclusion of the Budget Study Session. President Moss reconvened the meeting of the Board of Directors of the Fort Worth Local Development Corporation at 10:32 a.m., on Thursday, September 8, 2011. Executive Session (Agenda Item 5) In accordance with Chapter 551 of the Texas Government Code, President Moss and the Directors of the Fort Worth Local Development Corporation, convened into Executive Session at 10:33 a.m., on Thursday, September 8, 2011, in the Pre - Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102, in order to: 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. (Director Jordan left the meeting at 10:50 a.m. and did not return.) The Executive Session adjourned at 10:52 a.m. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED — SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 Page 7 President Moss reconvened from the Executive Session back into the called — special session at 10:52 a.m., with Director Jordan absent. Requests for Future Agenda Items (Agenda Item 7) President Moss opened the floor on requests for future agenda items. No requests were made by Corporation Board members. Adiourn (Agenda Item 8) With no further business before the Board, President Moss adjourned the called — special session of the Fort Worth Local Development Corporation at 10:52 a.m. on Thursday, September 8, 2011. These minutes approved by the Fort Worth Local Development Corporation on the __A — day of October_ , 2011 APPROVED: Frank Moss President ATTEST: Dennis Shingleton Secretary T ared and respectfully submitted by: fit, 1p a, -- Yonald P. Gonzales, T#YC Assistant City Secretary