HomeMy WebLinkAbout2011/11/01-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Present:
Vice President Danny Scarth
Treasurer W.B. "Zim" Zimmerman
Director Betsy Price
Director Dennis Shingleton
Director Joel Burns
Director Kathleen Hicks
Absent:
President Frank Moss
Director Salvador Espino
Director Jungus Jordan
City staff:
Fernando Costa, Assistant City Manager
Peter Vaky, Deputy City Attorney
Ron Gonzales, Assistant City Secretary
Jay Chapa, Director, Housing & Economic Development Department
Other City staff in attendance included:
Cynthia Garcia, Assistant Director, Housing & Economic Development Department
Robert Sturns, Economic Development Manager, Housing & Economic Development Dept.
Henry Day, Senior Management Analyst, Housing & Economic Development Department
Robin Bentley, Community Development Manager, Housing & Economic Development Dept.
LeAnn Guzman, Assistant City Attorney
Call to Order
(Agenda Item 1)
With a quorum of the Board Members present, Vice President Scarth called the called -
special session to order for the Board of Directors of the Fort Worth Local Development
Corporation (Corporation) at 2:20 p.m. on Tuesday, November 1, 2011, in the Pre - Council
Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas,
with President Moss and Directors Espino and Jordan absent.
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 2
Approval of Minutes from Meeting Held on
October 4, 2011 (Agenda Item 2)
Vic President Scarth opened the floor for a motion on the minutes.
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 six (6) "ayes" and zero (0) "nays ", with President Moss and
Directors Espino and Jordan absent, to approve the minutes of the
October 4, 2011, meeting of the Fort Worth Local Development Corporation.
The motion carried.
Consideration of Financial Report (Agenda Item 3a)
Vice President Scarth referenced the following financial report:
The Balance Sheet dated September 30, 2011, for the Corporation (unaudited) as follows:
Assets
Cash and cash equivalents $1,867,495.23
Interest Receivable 5,726.79
Accounts Receivable 36,899.08
Total Assets $1,910,121.10
Liabilities and Fund Balance
Accounts and Contracts Payable 10,973.12
Total Liabilities 10,973.12
Fund Balance (Deficit)
Designated for Authorized Expenditures $2,492,627.92
Net Income (563,479.94)
Undesignated 0.00
Total Fund Balance 1,899,147.98
Total Liabilities and Fund Balance $1,910,121.10
The Statement of Revenues and Expenditures from October 1, 2010, through
September 30, 2011 (unaudited), for the Corporation as follows:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 3
Consideration of Financial Report (cont'd) (Agenda Item 3a)
Revenues
Property Tax Reimbursement
$43,636.30
Revenue from Rents
363,360.36
Gas Lease Bonus
0.00
Gas Lease Royalties
110,859.80
Easement for Pipelines
64,460.81
Interest Income
22,359.86
Gas Well Shut in Payment
5,000.00
Other Revenue
88,097.46
Total Revenue
$697,774.59
Expenditures
Bank Charges
$317.52
Contractual Services
860,211.43
Insurance
49,366.50
Property Management
14,534.46
Property Purchase
0.00
Property Taxes
120,315.39
Repairs
149,982.92
Security System
6,034.08
Storm Water Utility
32,609.11
Transfers to City
26,000.00
Utilities
31,883.12
Total Expenditures $1,291,254.53
Excess (Deficiency) of Revenues Over (Under) Expenditures ($593;479.94)
Fort Worth Local Development Corporation dated September 30, 2011, (unaudited)
for the Corporation as follows:
Total Cash at September 30, 2011 $1,867,495.23
Cash in Property Management Account (57,451.86)
Cash available in City account 1,810,043.37
Commitments
Evans & Rosedale Enhanced CFA $0.00
Survey Expenses 6,250.00
Lancaster Project - Construction 456,928.58
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 4
Consideration of Financial Report (cont'd) (Agenda Item 3a)
Lancaster Project — Attorney Fees 25,088.08
Oliver's Fine Foods - Loan 450,000.00
Oliver's Fine Foods — Attorney Fees 2,950.00
Reserves
Maintenance Reserve 100,000.00
Property Tax Reserve 100,000.00
Total Commitments & Reserves 1,141,216.66
Unrestricted Cash Available $668,826.71
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.
Vice President Scarth 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.
Executive Session (Agenda Item 4)
Vice President Scarth 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
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 5
Executive Session (cont'd) (Agenda Item 4)
C. Discuss or deliberate negotiations related to any economic development negotiations,
as authorized by Section 551.087 of the Texas Government Code.
This agenda item was passed over.
Authorize Execution of Tax Increment Financing
Development Agreement with Board of Directors of
Tax Increment Reinvestment Zone Number Eight,
City of Fort Worth (Lancaster TIF) for
Construction of Lancaster Avenue Parking
Garage (Agenda Item 5)
Mr. Jay Chapa, Housing and Economic Development Department, advised the
Corporation of the subject project. Using a PowerPoint presentation, Mr. Chapa provided the
background for the proposed project as follows:
• LDC Board approved moving forward with the Lancaster redevelopment project.
0 235,000 square feet of mixed use.
■ 130 residential units (including 20% workforce housing).
■ 73,000 square feet office space.
■ 33,000 square feet retail space.
0 206,000 square feet for structured parking garage.
o Estimated $40 -$45M in real property improvements.
• Board approved the creation of the single asset entity to own the development on
August 2, 2011.
Mr. Chapa displayed an aerial view of the project previously presented to the Corporation
and summarized previously provided information. He then provided a series of slides that
depicted renderings for what the various buildings in project would look like. He noted that the
rendering for the Lancaster Elevation also reflected a layout of the buildings and explained
where the amenities center and pool would be located for the "U" shaped building on Monroe
Street and Lancaster Avenue. He referenced the renderings for the Lancaster Office Building
Concept with the Apartments attached and the rendering for the Stand -Alone Apartment building
that was adjacent to the Zipper Building owned by the City.
He advised that the parking garage rendering design was not as expected but that the
architects now understood the concept for the development and he was hopeful that the new
renderings would more accurately reflect the desired design and layout. He advised the
Corporation of the parking garage development proposal as follows:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 6
Authorize Execution of Tax Increment Financing
Development Agreement with Board of Directors of
Tax Increment Reinvestment Zone Number Eight,
City of Fort Worth (Lancaster TIF) for
Construction of Lancaster Avenue Parking
Garage (cont'd) (Agenda Item 5)
• TIF #8 (Lancaster) Board approved a resolution to provide funding to the LDC
for a publicly -owned parking structure to support the development at its
October 25, 2011, meeting.
• Parking spaces will be leased to office /apartment users and will provide parking
to the general public.
• Lease revenue will be used to pay for maintenance and operations.
Mr. Chapa then provided the following information pertaining to estimate of
$7,545,041.00 for the parking garage:
• Diocese will contribute land as part of partnership in exchange for use of parking
spaces.
• Construction to be financed through TIF district funds.
• Approximately $200,000.00 to be generated annually in parking rent from offices
and apartments once stabilization takes place.
• Affordable apartments and spaces to replace City spaces associated with the
Zipper Building will not incur parking rental costs.
• Estimated annual expenses will be utilized to cover annual garage management
and maintenance costs.
He continued his presentation with the following staff recommendation:
• Approve entering into a development agreement with the TIF #8 (Lancaster)
Board to construct the parking garage associated with the Lancaster Mixed -Use
Development Project.
• Allow assignment of the agreement to a Local Government Corporation to own
the parking garage.
• Direct staff to move forward with seeking the financing for debt financing for the
overall development.
Mr. Chapa concluded his remarks by advising the Corporation of the next steps in the
project as follows:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 7
Authorize Execution of Tax Increment Financing
Development Agreement with Board of Directors of
Tax Increment Reinvestment Zone Number Eight,
City of Fort Worth (Lancaster TIF) for
Construction of Lancaster Avenue Parking
Garage (cont'd) (Agenda Item 5)
• Secure financing package for the overall development.
• Seek authorization at the December LDC meeting to enter into loan agreements to
finance the project.
• Complete design of the project and begin construction in 2012.
Vice President Scarth asked for clarification of "secure financing ". Mr. Chapa explained
part of the financing would come from the current capital stack for the project which included
HOME funds previously approved by the Council for the affordable units in the project and the
value of the property itself. He added that the office area would also be condos so the church
would bring the cost of their three floors to the project; that came in as equity. He further stated
that the other two floors would be owned by two businesses and they would in turn bring their
capital stack. He advised that the remainder of the project would have to be debt financed and
staff would work with banks to obtain that financing. He noted that the total amount needed to
be financed would be approximately $20M to $25M with about $15M in equity. He assured the
Corporation that the loan would not affect the City's bond rating.
There being no further discussion, Vice President Scrah opened the floor for a motion.
MOTION: Upon a motion made by Director Hicks and seconded by Director Price, the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously six (6) "ayes" and zero (0) "nays ", with President Moss and
Directors Espino and Jordan absent, to authorize staff to execute the TIF
Development Agreement with the Board of Directors of Tax Increment
Reinvestment Zone Number Eight for construction of the Lancaster Avenue
Parking Garage. The motion carried.
Requests for Future Agenda Items
(Agenda Item 6)
Vice President Scarth opened the floor on requests for future agenda items. No requests
were made by Corporation Board members.
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, NOVEMBER 1, 2011
Page 8
Adiourn (Agenda Item 7)
With no further business before the Board, Vice President Scarth adjourned the called —
special session of the Fort Worth Local Development Corporation at 2.30 p.m. on Tuesday,
November 1, 2011.
These minutes approved by the Fort Worth Local Development Corporation on the 6th
day of December, 2011.
ATTEST:
Dennis Shingleton
Secretary
Prepared and respectfully submitted by:
Ronald P. Gonzales, TR M� /CMC
Assistant City Secretar,