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HomeMy WebLinkAbout2009/03/03-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Present: President Jungus Jordan Secretary Carter Burdette Director Mike Moncrief Director Danny Scarth(arrived at 12:12 p.m.) Director Kathleen Hicks Director Joel Burns Absent: Treasurer Sal Espino Director Frank Moss City staff: Tom Higgins, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Marty Hendrix, City Secretary Ron Gonzales, Assistant City Secretary Jay Chapa, Director of Housing and Economic Development Cynthia Garcia, Assistant Director, Housing and Economic Development Department Henry Day, Senior Management Analyst, Housing and Economic Development Department Other City staff in attendance included: Jerome C. Walker, Deputy Director, Housing and Economic Development Department Ardina Washington, Business Development Coordinator, Housing and Economic Development Department Vicki Ganske, Senior Assistant City Attorney LeAnn Guzman, Assistant City Attorney 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 12:05 p.m. on Tuesday, March 3, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Director Scarth temporarily absent and Directors Espino and Moss absent. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 2 Approval of Minutes from Meeting held on February 3, 2009 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. MOTION: Upon a motion made by Director Burdette and seconded by Director Hicks, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously five (5) "ayes" and zero (0) "nays", with Director Scarth temporarily absent and Directors Espino and Moss absent, to approve the minutes of the February 3, 2009, meeting of the Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report (Agenda Item 3) President Jordan referenced the following financial report: The Balance Sheet dated January 31, 2009, for the Corporation(unaudited) as follows: Assets Cash and Cash Equivalents $2,819,106.06 Interest Receivable $5,788.57 Accounts Receivable (1) $262,858.82 Total Assets 3,087,753.45 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 $67,761.68 Undesignated 0.00 Total Fund Balance $3,087,753.45 Total Liabilities and Fund Balance 3,087,753.45 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, MARCH 3, 2009 Page 3 Consideration of Financial Report (cont'd) (Agenda Item 3) The Statement of Revenues and Expenditures from October 1, 2008, through January 31, 2009 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $39,835.26 Revenue from Rents $147,704.08 Gas Lease Bonus $0.00 HUD Loan Administration Fee $0.00 Interest Income $35,414.36 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $222,953.70 Expenditures Bank Charges $53.79 Contractual Services $453.48 Insurance $0.00 Property Management $6,032.78 Property Purchase $0.00 Property Taxes $116,023.02 Repairs $274.95 Storm Water Utility $7,104.00 Transfers to City of Fort Worth $25,250.00 Total Expenditures $155,192.02 Excess (Deficiency) of Revenues Over(Under) Expenditures S67,761.68 The Schedule of Available Funds dated January 31, 2009 (unaudited), for the Corporation as follows: Total Cash at January 31, 2009 $2,819,106.06 Cash in Property Management Account ($5,178.34) Cash Available in City account $2,813,927.72 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, MARCH 3, 2009 Page 4 (Agenda Item 3) Consideration of Financial Report (cont'd) Survey Expenses $15,000.00 Fort Worth Partnership for Community Development $206,472.00 Reserves Maintenance Reserve $100,000.00 Property Tax Reserve $100,000.00 Total Commitments & Reserves $1,061,581.63 Unrestricted Cash Available 1,752,346.09 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 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. President Jordan opened the floor for discussion and/or comments on these reports. There was no discussion. MOTION: Upon a motion made by Director Moncrief and seconded Director Burdette, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously five (5) "ayes" and zero (0) "nays", with Director Scarth temporarily absent and Directors Espino and Moss absent, to acknowledge receipt and file the financial reports as presented. The motion carried. Chairman Jordan moved down the agenda to consider Agenda Item 6 and recessed the called— special session into Executive Session at 12:06 p.m. in accordance with the requirements of the Open Meetings Law. Executive Session (Agenda Item 6) A. Seek the advice of its attorneys concerning legal issues regarding (i) American Ironhorse Lease Agreement and (ii) 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 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 5 (Agenda Item 6) Executive Session (cont'd) 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 was adjourned at 12:10 p.m. President Jordan reconvened from the Executive Session back into the called — special session at 12:10 p.m., and returned to Agenda Item 4. Adopt Resolution Authorizing the Purchase of Properties Located at 1509 E. Lancaster, at 1515 E. Lancaster, and at 8801 McCart and the Subsequent Sale of Such Properties to the City of Fort Worth (Agenda Item 4) Cynthia Garcia, Assistant Director, Housing and Economic Development Department, spoke before the Corporation Board on the proposed resolution. (Director Scarth arrived at the meeting.) Ms. Garcia advised that the City had asked to purchase the properties at 1509 and 1515 E. Lancaster for a future development and in order to obtain a title policy for these properties, the Corporation was being asked to purchase the properties on the following terms: • LDC would purchase the properties for$20,277.00 • LDC would sell the properties to City of Fort Worth • LDC would retain the mineral interest • Property would be used by the City of Fort Worth Chairman Jordan clarified that this was essentially under the Corporation's new real estate policy. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 6 Adopt Resolution Authorizing the Purchase of Properties Located at 1509 E. Lancaster, at 1515 E. Lancaster, and at 8801 McCart and the Subsequent Sale of Such Properties to the City of Fort Worth (cont'd) (Agenda Item 4) Ms. Garcia continued her presentation relative to the property at 8801 McCart. She referred to a map that indentified the property's location as being off Risinger and McCart. She advised that the blue area was City of Fort Worth Water Department property and the area in red was what the City of Fort Worth was asking the Corporation purchase. She pointed out that there was a water tank and a pump station located behind the property and the tank was 50 feet high and the fence line was ten (10) feet away from the building. She added that in order for the Water Department to bring in cranes or do any maintenance on the tank or pump station, additional room was required, and therefore they were asking that the Corporation purchase the property for the City based on the following terms: • LDC would purchase the property for$88,475.00 • LDC would sell the property to the City of Fort Worth • LDC would retain the mineral interest • Property would be used by the City of Fort Worth Water Department for maintenance of their facilities MOTION: Upon a motion made by Director Moncrief 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 Directors Espino and Moss absent, to approve and adopt Resolution No. FWLDC-2009-03. The motion carried. Adopt Resolution Authorizing a Contract with Southeast Fort Worth, Inc. for the Marketing of Surplus Property in Southeast Fort Worth (Agenda Item 5) Mr. Jay Chapa, Director of the Housing and Economic Development Department, addressed the Corporation Board on the proposed resolution as follows: • Local Development Corporation (LDC) Property in Southeast Fort Worth (SEFW) • SEFW, Inc., markets properties owned by LDC for potential developments CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 7 Adopt Resolution Authorizing a Contract with Southeast Fort Worth, Inc. for the Marketing of Surplus Property in Southeast Fort Worth (cont'd) (Agenda Item 5) • Housing and Economic Development Department negotiates sale and development requirements/incentives • SEFW, Inc., paid $10,000.00 flat fee • $5,000.00 at closing of property • $5,000.00 at completion of development Mr. Chapa advised that there was an internal inquiry relative to receiving another request from other entities for this type of contract and stated that the Housing and Economic Development Department was comfortable doing the same type of contract if the Corporation owned properties in some other part of the City and there was a geographic based economic development entity, e.g., Southside, Inc., or Camp Bowie District Group or Downtown Fort Worth, Inc., whose business was to promote the area and do economic development. He added that in those instances, the Housing and Economic Development Department would consider the same type of contract on a case-by-case basis. Director Burdette inquired how many properties the Corporation owned in Southeast Fort Worth. Mr. Chapa responded that the Corporation owned six (6) properties currently; however, he pointed out that the Corporation did not purchase residential property. Director Burdette asked if the contract was indefinite. Mr. Chapa stated that either party could terminate the contract with notice. Director Burdette asked if whether or not Southeast Fort Worth, Inc., was deemed under law as being a real estate broker and subject to any state regulation or any other regulation performing these services. Mr. Peter Vaky, Senior Assistant City Attorney, advised that Director Burdette's question had been asked previously and the Corporation had checked with the outside counsel that helped create the Corporation. He advised that he felt comfortable with moving forward with the contract. He added that the resolution under consideration provides for the Housing and Economic Development Department, as well as the legal counsel for the City, to finalize the contract. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 8 Adopt Resolution Authorizing a Contract with Southeast Fort Worth, Inc. for the Marketing of Surplus Property in Southeast Fort Worth (cont'd) (Agenda Item 5) Director Burdette stated he was concerned whether or not Southeast Fort Worth, Inc., was stepping into the role, under state law, of real estate broker and had to comply with certain rules or regulations. Mr. Vaky stated that he would ensure Southeast Fort Worth, Inc., understood Director Burdette's concern and have them check with legal counsel. Director Hicks stated that this was a really good idea and that the Housing and Economic Development Department did a fabulous job all over the City really getting these deals done, but in many cases people were coming in to them to make the deals. She added that this will be Southeast Fort Worth, Inc., going out to some of the locations and really trying to promote it in a proactive way. She pointed out that with all the things the Corporation was dealing with, there was so much surplus property in southeast Fort Worth and that she hoped that other areas of the City could benefit from the plan. Mr. Tom Higgins, Assistant City Manager, pointed out that the real opportunity was that the Corporation owned six properties and had the ability to go out and acquire other properties, get the title insurance, get the property cleaned up, get the mineral rights and then sell the property, which was a pretty powerful tool. Director Hicks added that she thought the Corporation had really made changes when it came to surplus property over the past few years. She stated that when she started on the City Council, there was property where people had not paid taxes since the 1980s and there was an opinion on previous City Councils that since no money could be made from the property, the City should just forget it. She stated that this was a really aggressive plan to get these properties back on the tax roll, and not just sell to anyone. Director Moncrief called for the question. MOTION: Upon a motion made by Director Moncrief 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 Directors Espino and Moss absent, to approve and adopt Resolution No. FWLDC-2009-04. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 9 Adopt Resolution Authorizing a Contract with Southeast Fort Worth, Inc. for the Marketing of Surplus Property in Southeast Fort Worth (cont'd) (Agenda Item 5) President Jordan recommended that Mr. Chapa ensure that a running tab of properties sold was maintained so that at the end of the year the Corporation could show the benefit in dollars to the citizens of Fort Worth. Mr. Chapa advised that this information would be part of the financial reports when the transactions were made. Requests for Future Agenda Items (Agenda Item 6) Council Member Burdette stated he would like to see a report at the next meeting where there may be hostile properties that could be acquired by the Corporation in other districts and other parts of the City. He added that if this was a good tool, staff may need to do some analysis where it might be available in other parts of the City. Adiourn (Agenda Item 7) With no further business before the Board, President Jordan adjourned the called — special session of the Fort Worth Local Development Corporation at 12:21 p.m. on Tuesday, March 3, 2009. These minutes approved by the Fort Worth Local Development Corporation on the 7th day of_April_, 2009. APPROVED: Jun Jord Presi ent ATTEST: Carter Burdette, Secretary CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, MARCH 3, 2009 Page 10 Prepared and respectfully submitted by: 14onald P. Gonzales, T Assistant City Secretary