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Home My WebLink About2009/06/16-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY,JUNE 16, 2009 Present: President Jungus Jordan Secretary Carter Burdette Treasurer Sal Espino Director Danny Scarth Director Frank Moss Director Kathleen Hicks Director Joel Burns (Arrived at 8:38 a.m.) Absent: Director Mike Moncrief City staff: Tom Higgins, Assistant City Manager Sarah Fullenwider, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Director of Housing and Economic Development Department Cynthia Garcia, Assistant Director, Housing and Economic Development Department Jean Petr, Gas Lease Program Manager, Planning and Development Department Rick Trice, Assistant Director, Planning and Development Department Other City staff in attendance included: Mark Folden, Acting Economic & Development Manager, Housing and Economic Development Department Dolores Garza, Economic Development Specialist, Housing and Economic Development Department 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 8:35 a.m. on Tuesday, June 16, 2009, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Director Burns temporarily absent and Director Moncrief absent. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, JUNE 16, 2009 Page 2 Approval of Minutes from Meeting held on June 2, 2009 (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 unanimously six (6) "ayes" and zero (0) "nays", with Director Burns temporarily absent and Director Moncrief absent, to approve the minutes of the June 2, 2009, meeting of the Fort Worth Local Development Corporation. The motion carried. Executive Session (Agenda Item 3) City staff advised that an Executive Session was not necessary for 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 related to any current agenda items; 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 relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. President Jordan passed over this agenda item and proceeded with Item 4. Resolution Authorizing Execution of Mineral Leases at 3217 and 3224 Yuma Street and 1776 East Berry Street (Agenda Item 4) President Jordan advised that he would recuse himself from discussion and voting on Agenda Item 4 as it pertained to Chesapeake and that Director Scarth would preside over the meeting. He added that Agenda Item 5 pertained to XTO Energy and Director Scarth would then recuse himself from discussion and voting on that item. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, JUNE 16, 2009 Page 3 Resolution Authorizing Execution of Mineral Leases at 3217 and 3224 Yuma Street and 1776 East Berry Street(cont'd) (Agenda Item 4) President Jordan excused himself from discussion and voting on this issue, turned the meeting over to Director Scarth and left meeting. (Director Burns arrived at the meeting.) Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, reminded the Corporation of her previous presentation on June 2, 2009, relative to this issue and advised that the properties being considered were in the Berry/Riverside area. She added that Chesapeake had offered to lease these properties based on the following proposed terms: • 25 percent royalty from date of pooling • Primary lease term of two (2) years • No surface use • Timely inclusion of leases in production units (Morrison, S&B) Ms. Petr stated that staff's recommendation was that the Corporation authorize the staff to proceed with the leasing of Corporation properties under the proposed terms. Director Scarth opened the floor for discussion on this issue. Director Hicks stated that these properties were in the City Council District she represented and expressed appreciation to the staff for working to resolve some of her concerns. She added that the Corporation would continue to work with Chesapeake to ensure there would be no frac pond at Berry and Riverside as it was in the middle of a TIF and that a lot of time and effort had been expended to revitalize that area. She advised that if Chesapeake determined a frac pond was needed on City-owned property, that it could possibly be placed on the Yuma property. There being no further discussion, Director Scarth opened the floor for a motion. 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 unanimously six (6) "ayes" and zero (0) "nays", with Director Moncrief absent and one (1) abstention by Director Jordan, to approve and adopt Resolution No. FWLDC-2009-08. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, JUNE 16, 2009 Page 4 Resolution Authorizing a Waiver for One or More Natural Gas Wells Located Within 600' of a Protected Use at 4600 Blue Mound Road (Agenda Item 5) Director Scarth excused himself from discussion and voting on this issue, turned the meeting back over to President Jordan and left the meeting. President Jordan returned to the Pre-Council Chamber and presided over the remaining agenda items. Mr. Rick Trice, Assistant Director, Planning and Development Department, advised that the staff had received a request from XTO Energy, Inc., to grant a waiver for a gas well within 600 feet of a protected use known as the Shale House lease. He provided an aerial picture of the location and stated that the protected use was an Corporation property owned and operated by GEO Group, Inc., which operated a detention facility under contract with the Texas Department of Criminal Justice. He added that under the City's ordinance, this facility was considered to be a jail and a protected use. He pointed out the location of the proposed well bore for the Shale House lease on the aerial photograph and added that the distance to the nearest protected use from that location was 420 feet. He advised that Mr. Walter Dueease from XTO Energy was available if the Corporation had any questions. President Jordan opened the floor for discussion on this issue. Director Burdette inquired about the use of the building to the northwest of the property within the 600 foot distance. Mr. Dueease responded and stated that the building was an office building owned by Barnett Gathering which was a subsidiary of XTO Energy. Director Espino advised that this location was in Council District 2. He added that Blue Mound Road was predominately industrial in character and that the Diamond Hill Neighborhood was located a significant distance from the site. He further stated that he supported moving forward with this issue. President Jordan asked Senior Assistant City Attorney Fullenwider to confirm that since the Corporation was the landowner, the waiver had to be approved by the landowner under the rules of the City and therefore the resolution provided for acceptance by the landowner for a high impact well. Ms. Fullenwider responded affirmatively. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY,JUNE 16, 2009 Page 5 Resolution Authorizing a Waiver for One or More Natural Gas Wells Located Within 600' of a Protected Use at 4600 Blue Mound Road (cont'd) (Agenda Item 5) There being no further discussion, President Jordan opened the floor for a motion. 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 unanimously six (6) "ayes" and zero (0) "nays", with Director Moncrief absent and one (1) abstention by Director Scarth, to approve and adopt Resolution No. FWLDC-2009-09. The motion carried. Resolution Authorizing a Lease Extension for Pneumatic Trailers at 4600 Blue Mound Road (Agenda Item 6) Director Scarth returned to the Pre-Council Chamber. Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, reminded the Corporation that last year the Corporation entered into a lease with Pneumatic Technologies, Inc., for Corporation property on Blue Mound Road off 1-35, Meacham Boulevard and Blue Mound Road. She added that the proposed parking lease was for one year and that Pneumatic Technologies, Inc., had requested to extend the lease. She stated that staff recommended the following lease terms: • Six (6)month lease with a six (6)month option to renew at LDC option • $2,500 per month • Parking lease only o Clean and empty trailers • Tenant, at its own expense shall: • Improve the fencing • Expand gate area Ms. Garcia provided a picture of the trailers that would be parked at the property and advised that Pneumatic Technologies, Inc., had made substantial improvements to the lease property. President Jordan opened the floor for discussion on this issue. There being no discussion, President Jordan opened the floor for a motion. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY,JUNE 16, 2009 Page 6 Resolution Authorizing a Lease Extension for Pneumatic Trailers at 4600 Blue Mound Road (cont'd) (Agenda Item 6) 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 seven(7) "ayes" and zero (0) "nays", with Director Moncrief absent, to approve and adopt Resolution No. FWLDC-2009-10. The motion carried. Requests for Future Ap-enda Items (Agenda Item 7) President Jordan opened the floor on requests for future agenda items. No requests were made by Corporation members. Adjourn (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 8:44 a.m. on Tuesday, June 16, 2009. These minutes approved by the Fort Worth Local Development Corporation on the 14th day of July, 2009. APPROVED: qJunJord& t ATTEST: Carter Burdette, Secretary CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY,JUNE 16, 2009 Page 7 Pre ared and respectfully submitted by: onald P. Gonzales, TkO Assistant City Secretary