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Home My WebLink About2009/02/03-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Present: President Jungus Jordan Vice President Danny Scarth Secretary Carter Burdette Treasurer Sal Espino Director Frank Moss Director Joel Burns (arrived at 2:03 p.m.) Director Kathleen Hicks Absent: Director Mike Moncrief City staff: Tom Higgins, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Housing and Economic Development Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Henry'Day, Senior Management Analyst, Housing and Economic Development Department Ossana Hermosillo, Business Development Coordinator, Housing and Economic Development Department Other City staff in attendance included: Carl Smart, Executive Assistant to the City Manager Jerome C. Walker, Assistant Director, Housing and Economic Development Department Ardina Washington, Business Development Coordinator, Housing and Economic Development Department Dolores Garza, Economic Development Specialist, Housing and Economic Development Department Mark Folden, Business Development Coordinator, Housing and Economic Development Department Lena Ellis, Finance Director LeAnn Guzman, Assistant City Attorney 1 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 2 Guest: Charlotte Sobel, Executive Director of the Fort Worth Partnership for Community Development Call to Order (Agenda Item 1) With a quorum of the Board Members present, President Jordan called the called — special session to order for the Board of Directors of the Fort Worth Local Development Corporation (Corporation) at 1:55 p.m., on Tuesday, February 3, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. President Jordan immediately adjourned the called — special session of the Corporation Board into Executive Session at 1:55 p.m., in accordance with the requirements of the Texas Open Meetings Law. Executive Session (Agenda Item 6) A. Seek the advice of its attorneys concerning legal issues regarding any current agenda 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; 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 City in negotiations with a third party; and C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. The Executive Session ended at 2:12 p.m. President Jordan reconvened from the Executive Session back into the called — special session at 2:12 p.m., and returned to Agenda Item 2. (Director Moss left the meeting.) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 3 Approval of Minutes from Meeting held on December 16, 2008 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. 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 seven (7) "ayes" and zero (0) "nays", with Director Moss temporarily absent and Director Moncrief absent, to approve the minutes of the December 16, 2008, meeting of the Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report (Agenda Item 3) Henry Day, Senior Management Analyst in the Housing and Economic Development Department spoke before the Directors on the various financial reports. Mr. Day presented the Balance Sheet dated December 31, 2008, for the Corporation(unaudited) as follows: Assets Cash and Cash Equivalents $2,846,907.38 Interest Receivable $3,222.04 Accounts Receivable(1) $273,955.27 Total Assets 3,124,084.69 Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Total Liabilities 0.00 Fund Balance(Deficit) Designated for Authorized Expenditures $3,019,991.77 Net Income $104,092.92 Undesignated 0.00 Total Fund Balance $3,124,084.69 Total Liabilities and Fund Balance $3,124,084.69 The Balance Sheet noted that all accounts receivable are from AIH Acquisition, LLC. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 4 Consideration of Financial Report(cont'd) (Agenda Item 3) Mr. Day continued his review with the Statement of Revenues and Expenditures from October 1, 2008, through December 31, 2008 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $2,321.49 Revenue from Rents $112,368.53 Gas Lease Bonus $0.00 HUD Loan Administration Fee $0.00 Interest Income $24,946.28 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $139,636.30 Expenditures Bank Charges $41.85 Contractual Services $453.48 Insurance $0.00 Property Management $4,195.10 Property Purchase $0.00 Property Taxes $0.00 Repairs $274.95 Storm Water Utility $5,328.00 Transfers to City of Fort Worth $25,250.00 Total Expenditures $35,543.38 Excess (Deficiency) of Revenues Over(Under) Expenditures $101092.92 Mr. Day reviewed the Schedule of Available Funds dated December 31, 2008 (unaudited), for the Corporation as follows: Total Cash at October 31, 2008 $2,846,907.38 Cash in Property Management Account 1 ($70,881.21) Cash Available in City account $2,776,026.17 Commitments Cypress, Approved May 1, 2007 $150,000.00 Purchases of Properties $390,109.63 Loan to TIF #13 (Woodhaven) $100,000.00 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 5 Consideration of Financial Report (cont'd) (Agenda Item 3) Reserves Maintenance Reserve $100,000.00 Property Tax Reserve $100,000.00 Total Commitments & Reserves $840,109.63 Unrestricted Cash Available 1,935,916.54 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 were 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 were sold. The transfer was made to fund survey services and improvements on Lancaster Avenue. In September of 2008, $92,321.91 of the $162,000.00 was returned to the LDC. Mr. Day concluded his presentation. President Jordan opened the floor for discussion and/or comments on these reports. There was no discussion. MOTION: Upon a motion made by Director Espino and seconded by Director Hicks, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously six (6) "ayes" and zero (0) "nays", with Director Moss temporary absent and Director Moncrief absent, to acknowledge receipt and file the financial reports as presented. The motion carried. Adopt Resolution Authorizing $15,000 for Survey Expenses and Property Appraisal Expenses (Agenda Item 4) Cynthia Garcia, Assistant Director, Housing and Economic Development Department, spoke before the Corporation Board on the proposed resolution authorizing the expenditure in the Corporation's Fiscal Year 2009 budget of up to $15,000.00 for property survey and appraisal work associated with potential real estate transactions of the Corporation. There was discussion by the Board Members on the issue of how title companies are selected to do business with the Corporation and President Jordan also requested information on CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 6 Adopt Resolution Authorizing $15,000 for Survey Expenses and Property Appraisal Expenses (cont'd) (Agenda Item 4) how survey companies are selected as well in order to provide for transparency in the process. Ms. Garcia advised that staff was working on those processes. MOTION: Upon a motion made by Director Burdette 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 Director Moss temporarily absent and Director Moncrief absent, to approve and adopt Resolution No. FWLDC-2009-01 as presented. The motion carried. Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development (Agenda Item 5) Director Hicks recused herself from consideration of this agenda item as she served on the Board of Directors for the Fort Worth Partnership for Community Development. Jay Chapa, Director of Housing and Economic Development Department spoke before the Board regarding the contract extension and request for funding for the Fort Worth Partnership for Community Development. He recognized Charlotte Sobel, Executive Director of the Fort Worth Partnership for Community Development who was in the audience. Mr. Chapa advised the purpose of the presentation was to provide an update on the Fort Worth Partnership for Community Development; seek the Board's recommendation that the City amend and extend its Professional Services Agreement with the Partnership; and, seek the Board's recommendation to request $206,471.74 from the Local Development Corporation to fund its remaining Year 2 commitment. Mr. Chapa reviewed the Board of Directors of the Partnership as follows: John Avila, Jr., Thomas S. Byrne Construction, LTD. John Robinson, Amon G. Carter Foundation Valleau "Val"Wilkie, Sid W. Richardson Foundation Kathleen Hicks, Mayor Pro tem, Fort Worth City Council Pablo Calderon, United Way of Tarrant County CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 7 Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development (cont'd) (Agenda Item 5) Glenn Spoons, Chamber of Commerce and Community Activist Sylvia Monsavias, Vice President, Community Development Bank of America Glenn Forbes, Vice President, Government Banking, Chase Bank Mr. Chapa advised of the functions of the Partnership as follows: • Pool financial resources to sustain and grow the impact and capacity of community development organizations • Advocate for the community development industry, growing its role in economic mainstreaming for lower income communities and encouraging partnerships for enhanced neighborhood revitalization He advised of the activities of the Partnership as follows: • Financial support components • Operating support • Technical assistance and training • Pre-development assistance • Deliverables • Increased and diverse housing and commercial projects • Stabilized community-based development organizations • Core of seasoned mentor organizations Mr. Chapa reviewed the Partnership Accomplishments as follows: • Financial management systems in place • Selected three (3) community development corporations to receive operating support totaling $75,000 per organization • Near Northside Partners Council, Inc. • Tarrant County Samaritan Housing, Inc. • United Riverside Rebuilding Corporation • Ongoing technical assistance to grantees, their boards, and neighborhood groups CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 8 Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development (cont'd) (Agenda Item 5) • Two CHDO's cleared contract compliance issues and were eligible for HOME funds. Planned projects could create 10— 12 units. • Assisting CHDO in planning a multi-family LIHTC project of 50 to 90 units Mr. Chapa presented a pie chart showing the Partnership's fundraising for 2007 and 2008 with funding from the City at $243,524 (29%) and other sources at $10,000 (1%) and Foundations at $594,040 (70%). Mr. Chapa advised of the Partnership's goals for 2009 as follows: • Continue Board expansion • Expand the number of grantees by one or two • Expand the number of neighborhoods in which community development corporations work • Provide technical assistance to neighborhoods to prepare for community-based development by others • Continue fundraising to ensure organizational stability • Continue to provide technical assistance to grantees and others • Continue to serve as an advocate for quality affordable housing in the City. Mr. Chapa reviewed the City's support for the Partnership: $800,000 commitment for first 3 years Support through property sales 700 West Rosedale—M & C 14171 $268,455.00 3205 Williams Place—M & C 14282 $9,197.00 255 81h Avenue—M & C 14280 $40,832.00 Total $318,484.00 $206,477.00 still required to meet Year 2 commitment $275,000.00 required to meet the Year 3 commitment CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 9 Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development (cont'd) (Agenda Item 5) Mr. Chapa advised of the recommendations as follows: • Request $206,477.00 from the Local Development Corporation to meet Year 2 commitment • Place an M & C for Council's consideration to accept funds from the LDC and amend the Professional Services Agreement with the Partnership to extend through September 2009 • Consider an improvement package in the FY 2009-2010 budget to fund Year 3 at $275,000.00 Mr. Chapa concluded his presentation. President Jordan opened the floor for comments and/or discussion. Director Espino commended the work of the Fort Worth Partnership for Community Development and their Executive Director Charlotte Sobel and Mayor Pro tem Hicks for serving on their Board. He also expressed support for the Near Northside Partners Council, Inc., Tarrant County Samaritan Housing, Inc., and United Riverside Rebuilding Corporation. He indicated his support for the recommendation presented by the City staff. He also expressed his support for the expansion of the Board to see a wide cross-section of the community represented on the Board. Director Espino spoke in support of expanding the scope and capacity of the Partnership. He indicated the interest to see more successful CHDOs and a greater geographical scope in the community so that neighborhood and community development would be available in the community on a city-wide basis. He referenced the first three (3) community development corporations to receive operating support totaling $75,000.00 per organization and that it was done through a competitive bidding process. He pointed out that they have done great work in the past and would continue to do great work. He spoke about the ability to build capacity. Director Espino referenced the development of CHDOs that have been created in other parts of the country and that in certain areas they have taken the lead in creating quality affordable housing and do tremendous work. He reiterated his support for the recommendations. Director Burdette also commended the work of the Partnership. He felt the work of the Partnership was essential for making the community developments take place. He felt the City CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 10 Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development(cont'd) (Agenda Item 5) should honor its commitment made a year ago to provide the funding over a period of three- years. He added that he felt the grant from the Corporation was an appropriate place to get the funding for Year 2. He supported the recommendation and added that he looked forward to seeing their work continue. There was further discussion on a request by Director Burdette to have a presentation done before the Fort Worth City Council by their Executive Director on the goals of their Board, their accomplishments to date, their funding sources, expenditures to date, how they proposed to proceed in the future, etc. Director Burdette added that he felt this report should be presented to the LDC and the Housing and Economic Development Committee of the City Council. President Jordan pointed out that since the information was being requested across three bodies of the whole (City Council), he clarified that the report/presentation would be done at the Pre-Council Meeting when the Mayor and Council Communication was before the City Council for consideration. At this time, Charlotte Sobel, Executive Director for the Fort Worth Partnership for Community Development, requested to speak and President Jordan recognized her. She advised that her board had planned a half-day formal planning retreat due to the fact that the economic climate had shifted so drastically for non-profits in Fort Worth, in the county and across the country. She added that their board wanted to recast how they were looking forward versus how the Partnership was first founded. She indicated that she could provide the back reports for the work that they have done to date; however, she requested the report for their future endeavors not be scheduled until after their retreat which was to occur at the end of March. She indicated that the next year's goals would not be available until after that planning session. President Jordan indicated that what he had heard in the comments was that this was a successful program and the question was how it could be expanded to benefit the entire city. Executive Director Sobel stated that this was one of the areas that they were looking into. She provided an example of whereby a city the size of Fort Worth would not necessary build new organizations but expand the capacity of existing community builders to work outside of their natural home areas. She pointed out that they were the people who know the lay of the land and so they would liaison with other neighborhoods and other groups so that more infrastructure CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 11 Adopt Resolution Authorizing Funding in the Amount of $206,472 for the Contract Between the City of Fort Worth and Fort Worth Partnership for Community Development (cont'd) (Agenda Item 5) was not being built that was not needed but that they were representing the community that they were working in and the neighborhood. Tom Higgins, Assistant City Manager, requested clarification on if the City staff could proceed with the M & C to the City Council for the Year 2 funding and then the comprehensive report would be presented after the Partnership's March planning retreat. President Jordan indicated that he felt the LDC Board wanted to see what their plans were for expansion of their board sooner rather than later. In further discussion, Mr. Chapa requested the LDC Board take action on the subject agenda item. MOTION: Upon a motion made by Director Espino and seconded by Director Burdette, the Board of Directors of the Fort Worth Local Development Corporation voted five (5) "ayes", zero (0) "nays" and one (1) abstention by Director Hicks, with Director Moncrief absent and Director Moss temporarily absent, to approve and adopt Resolution No. FWLDC 2009-02. The motion carried. Requests for Future Agenda Items (Agenda Item 7) Director Burdette reiterated that his request for future agenda items was covered under previous discussions. Adiourn (Agenda Item 8) With no further business before the Board, President Jordan adjourned the called — special session of the Fort Worth Local Development Corporation at 2:29 pm. on Tuesday, February 3, 2009. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, FEBRUARY 3, 2009 Page 12 These minutes approved by the Fort Worth Local Development Corporation on the 3rd day of March, 2009. APPROVED: Ju s Jo an cjrj� Pre dent ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: n Marty Hendrix, R C/MMC City Secretary