HomeMy WebLinkAbout2011/12/06-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Present:
Vice President Danny Scarth
Treasurer W.B. "Zim" Zimmerman
Director Salvador Espino (Arrived at 1:12 p.m.)
Director Jungus Jordan
Director Dennis Shingleton
Director Joel Burns
Director Kathleen Hicks
Absent:
President Frank Moss
Director Betsy Price
City staff:
Fernando Costa, Assistant City Manager
Peter Vaky, Deputy City Attorney
Ron Gonzales, Assistant City Secretary
Cynthia Garcia, Assistant Director, Housing & Economic Development Department
Other City staff in attendance included:
Jay Chapa, Director, Housing & Economic Development Department
Robert Stums, 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 1:06 p.m. on Tuesday, December 6, 2011, in the Pre - Council
Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas,
with President Moss and Directors Price absent and Director Espino temporarily absent.
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 2
Approval of Minutes from Meeting Held on
November 1, 2011 (Agenda Item 2)
Vic President Scarth opened the floor for a motion on the minutes.
MOTION: Upon a motion made by Director Zimmerman 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 Price absent and Director Espino temporarily absent, to approve the
minutes of the November 1, 2011, meeting of the Fort Worth Local Development
Corporation. The motion carried.
Executive Session
(Agenda Item 3)
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
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.
Consideration of Financial Report (Agenda Item 4a)
Vice President Scarth referenced the following financial report:
The Balance Sheet dated October 31, 2011, for the Corporation (unaudited) as follows:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 3
Consideration of Financial Report (cont'd)
Assets
Cash and cash equivalents
Interest Receivable
Accounts Receivable
Total Assets
Liabilities and Fund Balance
Accounts and Contracts Payable
Total Liabilities
Fund Balance (Deficit)
Designated for Authorized Expenditures
Net Income
Undesignated
Total Fund Balance
Total Liabilities and Fund Balance
(Agenda Item 4a)
$1,766,546.06
6,342.77
0.00
$1,772,888.83
0.00
0.00
$1,899,147.98
(126,259.15)
0.00
1,772,888.83
$ 1,772,888.83
The Statement of Revenues and Expenditures from October 1, 2010, through
October 312011 (unaudited), for the Corporation as follows:
Revenues
Property Tax Reimbursement
$655.72
Revenue from Rents
12,962.15
Gas Lease Bonus
0.00
Gas Lease Royalties
0.00
Easement for Pipelines
0.00
Interest Income
1,643.31
Gas Well Shut in Payment
0.00
Other Revenue
0.00
Total Revenue
$15,261.18
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 4
Consideration of Financial Report (cont'd)
Expenditures
(Agenda Item 4a)
Bank Charges
$25.63
Commissions
$18,373.43
Contractual Services
103,828.83
Insurance
19,812.50
Property Management
518.49
Property Purchase
0.00
Property Taxes
0.00
Repairs
294.36
Security System
431.91
Storm Water Utility
2,636.25
Transfers to City
0.00
Utilities
4,598.93
Total Expenditures
$141,520.33
Excess (Deficiency) of Revenues Over (Under) Expenditures ($126.259. t5)
Fort Worth Local Development Corporation dated October 31, 2011, (unaudited) for
the Corporation as follows:
Total Cash at October 31, 2011
$1,766,546.06
Cash in Property Management Account
(42,477.30)
Cash available in City account
1,724,068.76
Commitments
Evans & Rosedale Enhanced CFA
$0.00
Survey Expenses
6,250.00
Lancaster Project - Construction
382,642.87
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 1,066,930.95
Unrestricted Cash Available $657,137.81
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 5
Consideration of Financial Report (cont'd) (Agenda Item 4a)
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.
Adopt Resolution Authorizing the Sale of 1037
South Freeway to the City of Fort Worth (Agenda Item 5)
Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development
Department, advised the Corporation regarding the proposed resolution. Using a PowerPoint
presentation, Ms. Garcia began her presentation by displaying an aerial view of the location of
the property in the Evans and Rosedale Urban Village. She provided the following history
pertaining to this property:
• 1999 -2005 — City purchased lots in the Evans and Rosedale area for economic
development.
o City was unable to purchase 1037 S. Freeway because the property had a
billboard.
• 2008 — Corporation purchased 1037 S. Freeway for $38,535.77 to assist the City
in its redevelopment efforts. (City entered into a settlement agreement to remove
the billboard.)
Ms. Garcia advised that the City had entered into an option agreement to sell all this
property to Cypress Equities and explained where a proposed Jack In the Box would be located
and advised of a proposed new development at another location. She added that the City had
received a request from Cypress Equities to take down a building in the area for a proposed 7-
Eleven Store and displayed a rendering for the potential design of the site with the proposed
monument sign. Ms. Garcia explained that the Corporation owned the entire tract of land in
which 7- Eleven would like to purchase. She added that it had a sewer line that could not be built
on and that the 7- Eleven would have 16 gas pumps at this location. She concluded her
presentation with the following recommendation by staff:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 6
Adopt Resolution Authorizing the Sale of 1037
South Freeway to the City of Fort Worth (cont'd) (Agenda Item 5)
• City has requested that the FWLDC sell it the property.
• Proposed new retail development.
Vice President Scarth opened the floor for discussion in this issue.
Director Jordan referred to slide 4 and stated that he knew that on the freeway, pole signs
were authorized. However, he thought this location was in the scenic corridor which would
require a monument sign.
Assistant City Manager Fernando Costa stated that staff would check the regulations to
see if the sign was permissible.
Ms. Garcia stated that the reason Cypress Equities requested a pole sign at this location
was because the elevation between the highway and road was approximately 45 feet so a
monument sign could not be seen from the highway.
Director Jordan stated that the rules of the scenic corridor had to be considered and he
would await staff's response regarding the regulations for this area. He added that it was an
outstanding development and asked that if the Corporation purchased the location for
$38,000.00, why it was being sold for $25,000.00. Ms. Garcia stated that the City had requested
that the FWLDC sell it for $25,000.00 because that was the price that the City agreed to sell it
for to Cypress Equities.
Director Jordan inquired what the reciprocal arrangement was for moving the billboard.
Ms. Garcia stated that the City agreed to another location on south I35 and I30 at no charge.
Director Jordan asked for clarification at why the property was being sold at a loss. Ms.
Garcia explained that the City entered into an option agreement with Cypress Equities for the
appraised value at that time and when the FWLDC purchased the property, the owner refused to
sell it for the appraised value because of the loss income from the billboard lease.
There being no further discussion, Vice President Scarth opened the floor for a motion.
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 Director
Price absent and Director Espino temporarily absent, to approve and adopt
Resolution No. FWLDC - 2011 -19. The motion carried.
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED — SPECIAL SESSION
TUESDAY, DECEMBER 6, 2011
Page 7
Requests for Future Agenda Items (Agenda Item 6)
Director Espino assumed his place at the table.
Vice President Scarth opened the floor on requests for future agenda items. No requests
were made by Corporation Board members.
Adjourn
(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 1:13 p.m. on Tuesday,
December 6, 2011.
These minutes approved by the Fort Worth Local Development Corporation on the
6th day of March, 2012. .�
ATTEST:
Dennis Shingleton
Secretary
Prepared and respectfully submitted by:
12 �� r2 gYl
onald P. Gonzales, TV C /CMC
Assistant City Secretary