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Home My WebLink About2009/04/07-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, APRIL 7, 2009 Present: President Jungus Jordan Treasurer Sal Espino Secretary Carter Burdette Director Mike Moncrief Director Danny Scarth Director Frank Moss (Arrived at 1:03) Director Kathleen Hicks (Arrived at 1:06) Director Joel Burns (Arrived at 1:05) City staff: Tom Higgins, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Marty Hendrix, Ci�-y 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 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 1:00 p.m. on Tuesday, April 7, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Directors Hicks, Moss and Burns temporarily absent. Approval of Minutes from Meeting held on March 3, 2009 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED —SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 2 Approval of Minutes from Meeting held on March 3, 2009 (cont'd) (Agenda Item 2) MOTION: Upon a motion made by Director Moncrief and seconded by Director Espino, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously five (5) "ayes" and zero (0) "nays", with Directors Hicks, Moss and Burns temporarily absent, to approve the minutes of the March 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 February 28, 2009, for the Corporation (unaudited) as follows: Assets Cash and cash equivalents $2,800,779.85 Interest Receivable 6,954.15 Accounts Receivable(1) 262,358.82 Total Assets $3,070,092.82 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 50,101.05 Undesignated 0.00 Total Fund Balance 3,070,092.82 Total Liabilities and Fund Balance $3,070,092.82 (1) All Accounts Receivable are from AIH Acquisition, LLC 262,358.82 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 3 Consideration of Financial Report (cont'd) (Agenda Item 3) The Statement of Revenues and Expenditures from October 1, 2008, through February 28, 2009 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $40,490.98 Revenue from Rents 183,039.63 Gas Lease Bonus 0.00 HUD Loan Administration Fee 0.00 Interest Income 40,171.03 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $263,701.64 Expenditures Bank Charges $80.06 Contractual Services 453.48 Insurance 0.00 Property Management 7,456.40 Property Purchase 54,877.43 Property Taxes 116,023.02 Repairs 274.95 Storm Water 9,185.25 Utility Transfers to City 25,250.00 Total Expenditures $213,600.59 Excess (Deficiency) of Revenues Over(Under) Expenditures $50,101.05 The Schedule of Available Funds dated February 28, 2009 (unaudited), for the Corporation as follows: Total Cash at February 28, 2009 $2,800,779.85 Cash in Property Management Account (13,138.47) Cash available in City account 2,787,641.38 Commitments Cypress, Approved May 1, 2007 $150,000.00 Purchases of Properties $335,232.20 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY,APRIL 7, 2009 Page 4 (Agenda Item 3) Consideration of Financial Report (cont'd) Loan to TIF # 13 (Woodhaven) $100,000.00 Survey Expenses $15,000.00 Fort Worth Partnership for Community $206,472.00 Development Reserves Maintenance Reserve 100,000.00 Property Tax Reserve 100,000.00 Total Commitments & Reserves 1,006,704.20 Unrestricted Cash Available $1,780,937.18 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 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 Espino, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously five (5) "ayes" and zero (0) "nays", with Directors Hicks, Moss and Burns temporarily absent, to acknowledge receipt and file the financial reports as presented. The motion carried. Adopt Resolution Amending the Lease with AIH, Inc., to Allow Rent Credits Due to a Reduction in Taxes (Agenda Item 4) Cynthia Garcia, Assistant Director, Housing and Economic Development Department, spoke before the Corporation Board on the proposed resolution that was relative to the property off Blue Mound Road. She provided the following summary on the leased property: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 5 Adopt Resolution Amending the Lease with AIH, Inc., to Allow Rent Credits Due to a Reduction in Taxes (cont'd) (Agenda Item 4) • Currently AIH, Inc., leases 96,926 square feet from LDC for a monthly rental rate of$10,096.45. (127,000 vacant) • Under the terms of the lease, AIH is responsible for their share of the taxes— LDC must pay for taxes for building that is vacant. • AIH hired a firm to challenge the taxes. • Successful in their challenge and request a rent credit for the amount of the savings Ms. Garcia presented the following information on the tax value of the property: 2007 Value 2008 Proposed 2008 Final 2008 Tax Value Value Savings $4,800,000 $6,682,036 $3,905,635 $78,296.32 She stated that this was significant because the LDC is responsible for their share of the building and recommended that the LDC amend the lease to allow a rent credit of$78,269.32. Director Espino asked for confirmation if AIH went before the Appraisal Review Board to challenge the valuation. Ms. Garcia responded affirmatively and stated that AIH hired a firm to make the challenge and filed a notice as required under state law. She added that AIH provided the necessary documentation, attended a hearing, had the property appraised and were successful in their challenge. MOTION: Upon a motion made by Director Espino and seconded by Director Scarth, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously five (5) "ayes" and zero (0) "nays", with Directors Hicks, Moss and Burns temporarily absent, to approve and adopt Resolution No. FWLDC-2009-05. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 6 Adopt Resolution Authorizing a Contract with FW City Construction Company, L.L.C., for Mowing and Maintenance of City Properties (Agenda Item 5) Ms. Garcia provided the Corporation with the following background information on the proposed mowing agreement: (Director Moss arrived at the meeting.) • LDC Properties—7 Properties—Various Sizes • Property Maintenance • Mowing • Light Debris Cleanup • FW City Construction Company, L.L.C. • Currently maintain properties for the Fort Worth Housing Finance Corporation • Acts as the General Contractor and hires subcontractors to do the maintenance ■ Use the City of Fort Worth M/WBE list of contractors (Director Burns arrived at the meeting.) Ms. Garcia provided the terms of the contract as follows: • Must comply with the insurance requirements of the City of Fort Worth • General Liability Commercial General Liability • $2,000,000.00 Each occurrence • $4,000,000.00 General Aggregate per project • Worker's Compensation— statutory limits • Mowing cycle—every 21 days or on an as needed basis • Contract be for one year with the option to renew for one year • Cost for 50 x 100 lot — not to exceed $50.00 for maintenance — larger lots will have a higher cost Ms. Garcia recommended that the LDC enter into a contract with the Fort Worth City Construction Company to maintain LDC properties in an amount not to exceed $15,000.00 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 7 Adopt Resolution Authorizing a Contract with FW City Construction Company, L.L.C., for Mowing and Maintenance of City Properties (cont'd) (Agenda Item 5) Director Burdette inquired if the company was going to charge on a lot-by-lot basis and if so, if the contract amount could be considerably less. Ms. Garcia responded affirmatively and advised that this was the first time the Corporation would be entering into this contract. She pointed out that there were some lots that were 50 feet x 100 feet, but there were also some lots that were 20 acres. She added that the definite cost was not known at this time and assured the Corporation that if staff determined the costs would be exceeded, the staff would come back to the board and request authorization for the additional funding. MOTION: Upon a motion made by Director Moncrief and seconded by Director Burdette, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously seven (7) "ayes" and zero (0) "nays", with Director Hicks temporarily absent, to approve and adopt Resolution No. FWLDC-2009-06. The motion carried. (Director Hicks arrived at the meeting.) Adopt Resolution Authorizing the Granting of Temporary Waterline Permits on the Corporation's Property (Agenda Item 6) Ms. Garcia advised the Corporation on the proposed resolution as follows: • LDC receiving requests to place temporary fresh water lines on property owned by the LDC • Pipes lay on top of the ground o Pipes may be aluminum or plastic • Typical time for fracturing the well is two (2) weeks, but could last up to 30 days Ms. Garcia showed two pictures of the above surface water pipes and advised of the proposed terms for the temporary permits: • Follow City of Fort Worth Procedures • Permit required • Fee CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 8 Adopt Resolution Authorizing the Granting of Temporary Waterline Permits on the Corporation's Property (cont'd (Agenda Item 6) ■ $0.20 per linear foot per pipe ■ $1,000.00 Minimum fee • 30 day limit • Maximum of 4 pipes • No disturbance to ground, trees, brush • Restore any damage to property and remove pipes Ms. Garcia advised the Corporation of the following staff recommendation: • LDC to authorize staff to forward requests for temporary permits to the City of Fort Worth who will review and approve requests on behalf of the LDC for Temporary Water Line Permits on LDC properties based upon • Terms ■ 30 day limit ■ Maximum of 4 pipes ■ No disturbance to ground, trees,brush ■ Restore any damage to property and remove pipes • Appropriate route to make sure the pipes do not interfere with the property Director Burdette inquired if the City would review the permits free of charge. Ms. Garcia responded affirmatively. Director Moncrief stated that he presumed this would be in accordance with the guidelines established by City of Fort Worth guidelines. Ms. Garcia confirmed that City guidelines would be followed. Director Hicks inquired if there were specific locations identified for the pipes. Ms. Garcia stated the one of the locations was a taxed foreclosed property on Bomar near Lancaster and I-30, and was not owned by the Corporation. She added that this pertained to future property such as the property off Yuma and Berry, two properties in the Evans and Rosedale area and the American Iron Horse property. Director Hicks advised that she was fine with moving forward on this issue and pointed out that most of these properties were in District 8. She stated that she wanted to ensure that the community was engaged on the placement of the pipes, especially on Berry, Yuma and Bomar. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, APRIL 7, 2009 Page 9 Adopt Resolution Authorizing the Granting of Temporary Waterline Permits on the Corporation's Property (cont'd) (Agenda Item 6) Director Scarth asked that the terminology for pipes and pipelines be clarified and pointed out that a "pipe" could be one section of a pipeline. Ms. Garcia stated that clarification would be included on the permit. President Jordan stated that as the pipelines appeared and were adjacent to neighborhoods, it would be good to provide notice to the Corporation Member of the particular affected district in case there were questions asked by the residents of the community. Ms. Garcia stated that when staff received the request, staff would ensure that the Corporation Board member was notified. 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 eight (8) "ayes" and zero (0) "nays", to approve and adopt Resolution No. FWLDC-2009-07. The motion carried. Executive Session (Agenda Item 7) President Jordan stated that he was advised that an Executive Session was not necessary. Requests for Future Agenda Items (Agenda Item 8) President Jordan opened the floor on requests for future agenda items. No requests were made by Corporation members. Adiourn (Agenda Item 9) With no further business before the Board, President Jordan adjourned the called — special session of the Fort Worth Local Development Corporation at 1:12 p.m. on Tuesday, April 7, 2009. These minutes approved by the Fort Worth Local Development Corporation on the 2nd day of June, 2009.