HomeMy WebLinkAbout2009/07/28-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, JULY 28, 2{149
Present:
President Jungus Jordan
Secretary Carter Burdette
Director Mike Moncrief
Director W.B. '-Zim** Zimmerman
Director Danny Scarth
Director Frank Moss (arrived at 8:37 a.m.)
Director Kathleen Hicks
Director Joel Bums
Absent:
Treasurer Sal Espino
Citv staff.
Tom Higgins, Assistant City Manager
Peter Vaky, Senior Assistant City Attorney
Ron Gonzales, Assistant City Secretary
Cynthia Garcia, Assistant Director, Housing and Economic Development Department
Rick Trice, Assistant Director, Planning and Development Department
Other Citv staff in attendance included:
City Manager Dale Fisseler
Assistant City Manager Fernando Costa
In
Assistant City Manager Charles Daniels
Guests:
Kirk �k'flfllams C,,Ipress 11---oulfies
Bob Ma. thei, X'11-0 E'nergy. Inc,
all 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 Corporat ion
--orporat�on) at „_ `; a.m, ,,,)n 'I'Llesday, Juh.- 18, _N0 9 in, the Pre-Council Chamber ofthC ror!
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED- SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page 2
Call to Order (cont'd) (Agenda Item 1)
Worth Municipal Building, 1000 Throckmorton., Fort Worth. Texas, with Director Espino absent
and Director Moss temporarily absent.
Approval of Minutes from Meeting held on
June 16, 2009 (Agenda Item 2)
President Jordan opened the floor for a motion on the minutes.
MOTION: Upon a motion made by Director Burns and seconded by Director Scarth the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) "ayes" and zero (0) "nays-, with Director Espino absent
and Director Moss temporarily absent, to approve the minutes of the
June 16, 2009, meeting of the Fort Worth Local Development Corporation. The
motion carried.
President Jordan passed over agenda items 3A and 4 and stated that Election of Officers
would be considered at this time.
Election of Officers (Agenda Item 5)
Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development
Department, advised that the positions of President, Vice President, Secretary, Assistant
Secretary, Treasurer and Assistant Treasurer were available for nominations as officers of the
Board. She stated that staff was recommending that City Secretary and Assistant City Secretary
be elected as Assistant Secretary and that the Financial management Services Director be elected
as Assistant City Treasurer.
President Jordan requested that Ms. Garcia preside over the election of officers.
Ms. Garcia opened the floor ft-Tr a motion on the election of 1hC- Corporation Board
President-
MOTION: Upon a motion made by President Jordan and seconded by Director Monc.lef the
Board of Directors of the Fort Woi-h Local Development Corporation voted
unartimousiv seven 17" "ayes- and zero (0' -nays-, with Director Espino absent
and Director Moss temporarily absent. to elect by acclamation Director Frank
Moss as Presidera the Font, 'XtIrth Local' De-velopment
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED-SPECIAL SESSION
TUESDAY, JULY 28,2009
Page 3
Election of Officers (cont'd) (Agenda Item 5)
Ms. Garcia opened the floor for a motion on the election of the Corporation Board Vice
President.
MOTION: Upon a motion made by Director Jordan and seconded by Director Moncrief the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) '*aves'* and zero (0) "nay_s", with Director Espino absent
and President Moss temporarily absent, to elect by acclamation Director Danny
Scarth as Vice President of the Fort Worth Local Development Corporation. The
motion carried.
Ms. Garcia opened the floor for a motion on the election of the Corporation Board
Secretary.
MOTION: Upon a motion made by Director Jordan and seconded by Director Scarth the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) "ayes- and zero (0) "nays". with Director Espino absent
and President Moss temporarily absent, to elect by acclamation Director Carter
Burdette Secretary of the Fort Worth Local Development Corporation. The
motion carried.
Ms. Garcia opened the floor for a motion on the election of the Corporation Board
Assistant Secretary.
MOTION: Upon a motion made by President Jordan and seconded by Director Scarth the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) "ayes" and zero (0) "nays-, with Director Espino absent
and President Moss temporarily absent, to elect by acclamation City Secretary
Marty fiendrix and Assistant City Secretary Ron Gonzales as Assistant Secretary
of the Fort Worth Local Development Corporation. The motion carned.
)vls, Garciia c-,pened the floor ficir a motion on the ellection oil' the Corporation Board
Treasurer,
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED-SPECIAL SESSION
TUESDAY, JULY 28,2009
Page 4
Election of Officers (cont'd) (Agenda Item 5)
MOTION: Upon a motion made by Director Moncrief and seconded by Director Scarth the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) -ayes- and zero (0) *'nays'*. with Director Espino absent
and Director Moss temporarily absent, to elect by acclamation Director Zim
Zimmerman as Treasurer of the Fort Worth Local Development Corporation. The
motion carried.
Ms. Garcia opened the floor for a motion on the election of the Corporation Board
Assistant Treasurer.
MOTION: Upon a motion made by Director Jordan and seconded by Director Moncrief the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously seven (7) "ayes" and zero (0) "nays". with Director'Espino absent
and Director Moss temporarily absent, to elect by acclamation Financial and
Management Services Director Lena Ellis as Assistant Treasurer of the Fort
Worth Local Development Corporation. The motion carried.
In the absence of President Moss, Vice President Scarth recessed the called - special
session of the Corporation Board into Executive Session at 8:35 a.m., in accordance with the
requirements of the Texas Open Meetings Law.
Executive Session (Agenda Item 4)
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
tl
9 of the Texas State Bar Rules, as authorized by Section 551.071 of the Texas
Government Code:
President Moss ar-tived at the meeting
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B. -Discuss the pure hase. sale, lease or value of real props rry, as authoriz-ed by
Section 551,072 of the Texas Go-vernment Code, Deliberation in an open
-
meeting wou -e
ld have a detrimental ffiect on the p C
osition of the orporat ion in
necyotiations with a third party.- and
Z -
C Discuss or deliberate neuot-lations relating to any economic development
of' ffie "'exas Gox,,ernmen'
ne-gotiad(Ms, as a-ulthorized bv Section
Code
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page
Executive Session (cont'd) (Agenda Item 4)
The Executive Session ended at 8.47 a.m.
President Moss reconvened from the Executive Session back into the called — special
session at 8:48 a.m., and returned to Agenda Item 'A.
Consideration of Financial Report (Agenda Item 3A)
President Moss referenced the following financial report:
The Balance Sheet dated June 30, 2009, for the Corporation (unaudited) as follows:
Assets
Cash and cash equivalents $2,561,663.66
Interest Receivable 8.084.82
Accounts Receivable (1) 260,858.82
Total Assets $2,830,60730
Liabilities and Fund Balance
Accounts and Contracts Payable 0.00
Total Liabilities 0.00
Fund Balance (Deficit)
Designated l'or Authorized Expenditures S3,0 19,991.77
Net Income (189,384.47)
Undesignated 0.00
Total Fund Balance 2,83 0 607,3A 0
3060'17
Total Liabilities �xnd Fund Balance S L 8 '30
(1) All Accounts Receivable are from ,%11-1 Acquisition, LLC '260,88,82
The Statenlent of Revenues and Expenditures from Octobe,r 1, 2008, through
June -30, 2009 (unaudited", for the Corporation as f 11ows:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page 6
Consideration of Financial Report (cont'd) (Agenda Item 3A)
Revenues
Property Tax Reimbursement $ 3,231.97
Revenue from 2833.996.03
Rents
Gas Lease Bonus 3,789. 8
HUD Loan Administration Fee 0.00
Interest Income 58,923.06
Change in Fair Value of Investments 0.00
Other Revenue 0.00
Total Revenue $389,940.54
Expenditures
Bank Charges $183.48
Contractual 2,953.48
Services
Insurance 5.015.00
Property Management 13,161.08
Property Purchase 180,07438
Property Taxes 116,023.021
Repairs
Storm Water Utility 17.510.25
Transfers to City 231,721,74
Total Expenditures $479,325.01
Excess (Deficiency) of Revenues Over (Under) Expenditures ($189,384.47)
The Schedule of Available F'linds dated ilune 10, 2009 (unaudited). for the Corporation as
fo I I v S:
Total Cash at 111une 30, 20109 S2 561
,-25 L663,66
C-ash in Property Management Account 1.780.1
Cash available in Ciry account
Commitments
".1ppro-ved 'N/1,
I' ur-hases iof Prroperti�_-s 3, '---5
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED- SPECIAL SESSION
TUESDAY,JULY 28, 2009
Page 7
Consideration of Financial Report (cont'd) (Agenda Item 3A)
Loan to TIF 4 13 $1 00.000.00
(Woodhaven)
Survey Expenses $15,000.00
Reserves
Maintenance Reserve 100.000.00
Property Tax Reserve 100,000.00
Total Commitments & Reserves 675,035.25
Unrestricted Cash Available $1,884.848.28
On August 21, 2007, $175,000.00 was transferred to the City (M&C C-223134) 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, $161000,00
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 S 162,000.00 was
returned to the LDC
President Moss opened the floor for discussion and/or comments on these reports. There
was no discussion or formal action on the report and the report was accepted as presented.
President Moss proceeded with Agenda Item 6.
Resolution Authorizing Execution of
Enhanced Community Facility Agreement
with the City of Fort Worth for Public
Infrastructure Improvements in the Evans
and Rosedale Urban Village (Agenda Item 6)
Ms' C"'nul-na Garcia. Assistant Director,
11ousing and 11"'cononnic De-%�,elopment
Department, addressed the Corp-oration regarding the proposed project, She stated that her
presentation would pertain to the proposed agreements ,vith Cypress Equities and the City of
Fort Worth for the development of the Evans and Rosedale area and include information on all
three resolutions related to this pro-i-ect,
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED-SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page 8
Resolution Authorizing Execution of
Enhanced Community Facility Agreement
with the City of Fort Worth for Public
Infrastructure Improvements in the Evans
and Rosedale Urban Village (cont'd) (Agenda Item 6)
Ms. Garcia provided a map of the site and referred to the property owned by the City of
Fort Worth and stated that the City had an option to sell the property to Cypress Equities. She
added that Cypress Equities had been in negotiations with in the Box to build on the site and
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advised that improvements to Missouri Street would also be included in this presentation. She
provided the following information on issues relative to this project.
• Jack in the Box is ready to acquire an option from Cypress to purchase the property
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• However, before Jack in the Box will purchase the property:
* Cypress must deliver finished site
• Grading
• Site cleaning
• Construct private driveways
* Missouri improvements must be completed
• Sidewalk improvements
• Water and sewer improvements
• Streetscape improvements
• Jack-in the Box has 120-day due diligence in option to purchase
• Original negotiations with Cypress contemplated Cypress entering into an Enhanced CFA
for Missouri public improvements
Cypress cannot move forward with infrastructure improvements until the due diligence
period is over, but conversely cannot meet Jack in the Box's timeline if work does not
start prior to OPLIon period expiring and the contract going hard,
Ms. C-Tarcia referred to the snap once again and pointed out the site's location where the
improvements -%vould take place and the construcriolF of the public infrastm'Clure on Missouri to
mo--,,e tile I Ject torv,,ard, She advised the Comporation of the fbllo in proposed agreemenits-
* 1 11-nhanced CF-Albetween the L,DC and the C10,
• Construction Manag enment Agreement between the 1A)C and Cypress Equities for the
construction of the Missouri Improvements
• A -ir -en the Citv and LIDC
oan .1'gre, ient bet%vl-
3
.,,80 1,oan A-u,- th- tv,.,een City arcl C-vpress Fquiiti�-� -C'
agreen.,enw.,
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED—SPECIAL SESSION
TUESDAY,JULY 28, 2009
Page 9
Resolution Authorizing, Execution of
Enhanced Community Facility Agreement
with the City of Fort Worth for Public
Infrastructure Improvements in the Evans
and Rosedale Urban Village (cont'd) (Agenda Item 6)
Ms. Garcia displayed a few pictures of a building prototype that Jack in the Box currently
used and that would be built at the site. She provided the following information relative to the
Enhanced CFA and Construction Management Agreement-
Enhanced CFA agreement between the City and LDC
o Public improvements along Missouri not to exceed $830,000.00
• Street
■ Curb and gutter
• Streetscape improvements—sidewalks, etc.
• Construction Management Agreement between Cypress and LDC
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Ms. Garcia also advised of the 380 Loan Agreement to the City as reflected below:
• LDC loans $390,000.00 to City for the Chapter 380 Loan
• Agreement with Cypress with the terms as follows:
o City enters into Chapter 380 Loan Agreement with Cypress
• To purchase property and
• Construct private improvements on the Jack in the Box site
• City sells Jack in the Box site to Cypress for S 160,000.00 (
3 p 'per existing agreement)
• Cypress sells improved property to Jack in the Box for construction of new store
* Cypress repays Chapter 380 to to City
* LDC shares in net sale proceeds (Cypress 85 percent 11I LDC 15 percent)
• "Net Sale Proceeds includes loarl,repayment and closing costs/ m m
coissions
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• If property is not sold to Jack in the Box. LDC receives improved property as repayment
(Dfthe loan
I
Ms, Garcia clarified that on the Enhanced CFA, the LDC would initially 22 5.§2€ thle pro"
ect"
however, the LDC would be repaid once the Jack in the Box was built on I the site or there_1 was
retail on the site. She added that this was the same s,,ay that all CFAs were handled with the
City. Ms. Garcia advised of the following steps needed to complete this pro1*1ect:
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED-SPECIAL SESSION
TUESDAY, JULY 28,2009
Page 10
Resolution Authorizing Execution of
Enhanced Community Facility Agreement
with the City, of Fort Worth for Public
Infrastructure Improvements in the Evans
and Rosedale Urban Village (cont'd) (Agenda Item 6)
• Fort Worth City Council consider Mayor and Council Communication on August 4, 2009
* Loan Agreement with LDC
* 380 Loan Agreement with Cypress
• On August 11, 2009, Fort Worth City Council
o Consider Enhanced CFA Contract with LDC
President Moss opened the floor for discussion on this issue.
Director Moncrief stated that this project had been in development for some time and
conditions had changed. He added that some people might question why a Jack in the Box was
placed at this location and pointed out that any new construction or development that took place
in the Evans and Rosedale corridor, where so much work had been done and where City services
and personnel had been located in hopes of helping to jumpstart the area, was a plus and not a
minus. He stated with that spirit in mind he would encourage the Corporation Board to support
this proposal.
Director Hicks stated that she appreciated the comments by Director Moncrief and stated
that this was not really a new development; that other developments such as paAm shops, liquor
stores, and other similar businesses that would have been a detriment to the community had been
previously, denied. She pointed out that the area was now getting a restaurant and improvements
on Missouri which would spur further development in the community. She added that the Hazel
Harvey Peace Center was almost completed and that the fir-, station that would be located further
dovvin on Evans was ready to go forward. She stated that this project was really part of a larger
project and that the Rosedale street improvements had finally started thanked an agreement
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with the Texas Department of Transportation, Tarrana 'County and the City- She expressed
appreciation to %'_'-,,-nthia Garcia, the entire Housing and Economic Development Department team
and C`ypress for their %sork on this protect,
J
There breing no fur discussion, President Moss opened the floor fbr a mofion.
MOTION: tlipon a motion made by Director flicks and seconded by Director Moncriel, the
Board of Directors of the `ort Worth 1-ocal Devellopment Comroration voted
u-nanimously eight s8l -aves" and zero) s ", with [Din-ctor absena, to
appri.,,%,,e and adip-m Resi-ilut"o-n, No, I "he niu-iti-on
h n ca7niedl,
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED- SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page I I
Resolution Authorizing Execution of
Construction Management Agreement with
Cypress Equities, L.P., for Various
Improvements in the Evans and Rosedale
Urban Village East Berry Street (Agenda Item 7)
President Moss opened the floor for a motion.
MOTION: Upon a motion made by Director Hicks and seconded by Director Moncrief, the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously eight (8) ayes*' and zero (0) "nays", with Director Espino absent, to
approve and adopt Resolution No. FWLDC-2009-12. The motion carried.
Resolution Authorizing Execution of Loan
Agreement with the City of Fort Worth for the
Funding of an Economic Development
Program Agreement between the City and
Cypress Equities, L.P., for Redevelopment of
Evans and Rosedale Urban Village (Agenda Item 8)
President Moss opened the floor for a motion.
MOTION: Upon a motion made by Director Hicks and seconded by Director Moncrief. the
Board of Directors of the Fort Worth Local Development Corporation voted
unanimously eight (8) "ayes" and zero (0) "nays", with Director Espino absent, to
approve and adopt Resolution No. FWLDC-2009-1 3) The motion carried,
Resolution Authorizing a Waiver for One or
More Natural Gas Wells at 4600 Blue Mound
Road Located Within 600' of a Protected Use
and Rescind Related Resolution Adopted
June 1 . 2009 (Agenda Item 9)
Mr. Rick ]rice, Assistant D-irector. Planning and Department, addl-essed the
Corporation regarding the proposed resolution. He reminded the Corporation Board of their
adoption of Resolution No. FAIL.DC-2009-09 on June 16. 20 9, that granted a waiver to XTO
Energy, Inc., for the Shale house lease, He requested that the Corporation Board rescind the
resolution and reconsider the waivl-r request with a con-1-c ted setback distance of 100 fi-et.
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED-SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page 12
Resolution Authorizing a Waiver for One or
More Natural Gas Wells at 4600 Blue Mound
Road Located Within 600' of a Protected Use
and Rescind Related Resolution Adopted
June 16,2009 (cont'd) (Agenda Item 9)
He recalled his presentation on June 16, 2009, whereby he informed the Council that the
property was operated by the GEO Group, Inc. He advised that the setback at that time was 420
feet which was reflected in the resolution adopted on June 16, 2009. He added that the actual
survey distance that faced the well further to the west was 338 feet and that XTO had requested a
waiver request to allow them to be as close as 300 feet, which was the minimum setback allowed
under the gas drilling ordinance.
Director Scarth excused himself from discussion and voting on this issue.
President Moss opened the floor for discussion on this issue,
Director Moncrief asked where the nearest residential property was located to this
property.
Mr. Trice responded that the nearest property was located approximately two (2) miles to
the south. He added that Director Espino supported this request on June 16. 2009, as the
property was predominately industrial in nature.
Assistant City Manager Tom Higgins noted that was that there was a Correctional
Institution located near this area where inmates actually lived.
Mr. Trice stated that the Correctional Institution was a protected use since the inmates
lived at the facility and that was the reason for the original waiver.
Director Burdette stated that as he recalled, all the property owners within the 600 foot
distant-- were e;ther on !,,[)C or other City-o-wried property and inquired if any of those own,ers
had raised protest to this C`gas xvell location,
Mr, 1-rice stated that no one had protested the waiver and noted that X O Energy, Inc-
actually ovvned the facility to the nor thwest which they were using 'fior office space.
President Moss opened thy- floor for a motion on this issue,
CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPORATION
CALLED— SPECIAL SESSION
TUESDAY, JULY 28, 2009
Page 13
Resolution Authorizing a Waiver for One or
More Natural Gas Wells at 4600 Blue Mound
Road Located Within 600' of a Protected Use
and Rescind Related Resolution Adopted
June 16, 2009 (cont1dj (Agenda Item 9)
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 Espino absent
and one abstention by Director Scarth, to rescind Resolution No.
FWLDC-2009-09 and to approve and adopt Resolution No. FWLDC-2009-14.
The motion carried.
Requests for Future Agenda Items (Agenda Item 10)
President Moss opened the floor on requests for future agenda items. No requests were
made by Corporation members.
Adjourn (Agenda Item 11)
With no further business before the Board, President Moss adjourned the called — special
session of the Fort Worth Local Development Corporation at 9:01 a.m. on Tuesday,
July 28, 2009.
These minutes approved by the Fort Worth Local Development Corporation on the I st
day of September., 2009.
APPROVIED-
r
r k�.
...........
rank Moss
President
CITY OF FORT WORTH, TEXAS
FLIRT WORTH LOCAL DEVELOPME NT CORPORATION
CALLED—SPECIAL SESSION
TUESDAY, JULY 2 , 2009
Page 14
ATTEST:
Carter Burdette, Secretary
Prepared and respectfully submitted by:
konald P. Gonzales, T�
Assistant City Secretary