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Home My WebLink About2009/11/03-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Present: President Frank Moss Vice President Danny Scarth Secretary Carter Burdette Treasurer W.B. '*Zii-n" Zimmerman Director Mike Moncrief Director Salvador Fspino Director Jungus Jordan Director Kathleen Hicks Director Joel Bums Guests: Ray Ojinsky, Chesapeake City staff: Tom Higgins, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Cynthia Garcia, Assistant Director, Housing & Economic Development Department Z- Dolores Garza, Economic & Development Specialist. Housing& Economic Development Department Susan Alanis, Director, Planning and Development Department Other City staff in attendance included: LeAnn Guzman, Assistant City Attorney -A g nda Ite m 1) Call to Order t ge With a quorunn of the Board Metnbers present, Preiident Moss called tlic, called - special �Z esswn to order f,,,-,,r the Board of Directors of the Fort Worth 1.oval Development Corlioration (Corporation) at 1 :08 pmi. on 'ruesdav, Novernber 3. -1009, in the Pre-Councill Chaniber of the Fort Worth Municipal Building. woonrockinorton, Fort Worth, Texas, CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED-SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 2 Approval of Minutes from Meeting held on September 1, 2009 (Agenda Item 2) President Moss opened the floor for a motion on the minutes. MOTION: Upon a motion made by Director Moncrief and seconded by Vice President Scarth, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously nine (9) "ages" and zero (0) "nays", to approve the minutes of the September 1, 2009, meeting of the Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report (Agenda Item 3A) President Moss referenced the following financial report: The Balance Sheet dated September 30, 2009, for the Corporation (unaudited) as follows: Assets Cash and cash equivalents ` 2,112,077.73 Interest Receivable 5_143-219 Accounts Receivable (1) 390,000.00 Total Assets 52,507.421.02 Liabilities and Fund Balance Accounts and Contracts Payable 0,00 Deferred Revenue 0.00 Total Liabilities 0.00 Fund Balance (Deficiti Designated for Authorized Expenditures S 0 1 Q,9 9 '7 Net Incorrie Undesi nated 0 ZZ, J-)0 ------------ Total Fund Balance TI-Ital LNibdhf6e, and Furi-'A Bajank-e S2.5" ,42 J-f CITY OF FORT NNVORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 3 Consideration of Financial Report (cont'd) (Agenda Item 3A) (1) Accounts Receivable from City of Fort Worth 390,000.00 The Statement of Revenues and Expenditures from October 1. 2008, through September 30. 2009 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement 545,081.0 7 Revenue from Rents 359,713.33 Gas Lease Bonus 3,795.05 HUD Loan Administration Fee 0.00 Interest Income 70,964.63 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $479,554.08 Expenditures Bad Debt Expense 258.433.82 Bank Charges $256.78 Contractual Services 3,373.48 Insurance 3-5,154.60 Property Management 17,434.29 Property Purchase 286,959.1-31 Property Taxes 116,0223.02 Repairs 19,013.97 Storm Water Utility 23,754.00 Transfers to City 2 31,721.74 Total Expenditures S992),1 24.8 331 S Excess (Deficiencv` of Revenues Over (Under) Expenditures F'ort "korth [,-(,-)Cai Development C(--m-poration dated Sept.-mber '10, 2("109, (unaudited) t'()r the Corporatic-7n as follows: Total Cash at September 3 W. 2009 S2,1 112,077-7,73 Cash in Property anagement Aco cunt Cilsh available in M City a-Ccount 2 CITY OF FORT WORTH, TEXAS FORT NORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, NOVEMBER 3, ?x)09 Page 4 Consideration of Financial Report(cont'd) (Agenda Item 3A) Commitments Remediation of 1 108 E. Berry 5200,000.00 Purchases of Properties $88,475.00 Loan to TIF # 13 (Woodhaven) S 100.000.00 Evans & Rosedale Enhanced CFA $830,000.00 Surveys Expenses 56,250.00 Reserves Maintenance Reserve 100.000.00 Property Tax Reserve 100,000.00 Total Commitments & Reserves 1,424,725.00 Unrestricted Cash Available 5652,738.12 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 2008, 592,321.91 of the S 162.000.00 was returned to the LDC. President Moss opened the floor for discussion and/or comments can these reports. There was no discussion or formal action on the reports and the reports were accepted as presented, Adopt resolution Authorizing the Sale of 8801 McCart Avenue to the City, of Fort Worth (Agenda Item 4) it hector Burgs left his place at the tal ie.) :GIs. C nt is Garcia, Assistant Director, Housing and Econonnic Development c't arb-n nt, addressed the Corporation re, arding the proposed resolution Ms. Garcia provided w � �F e 4 �A�w ��u o ta« localfi<ne a_F_ ad,_:yed _hat the sul�ect ��<��, _> �.� � �..�s"�t � �4��beb �o_�� (<t 1. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 5 Adopt Resolution Authorizing the Sale of 8801 McCart Avenue to the Cit- y of Fort Worth (cont'd) (Agenda Item 4) Risinger Road and McCart Avenue. She also showed a picture of the traffic light and of the water tower at 8801 McCart. Ms. Garcia advised of the following terms for the sale of the property: • LDC purchased the property earlier this year. • LDC would sell the property to City of Fort Worth for S96,522.53) plus closing costs. • LDC would retain the mineral interest. • Property to be used by the City of Fort Worth Water Department for maintenance of their facilities. Ms. Garcia advised that staff's recommendation was that the LDC move forward with the sale to the City of Fort Worth for the 596,522.53 plus closing costs. President Moss opened the floor for discussion on this issue. There being no discussion, President Moss opened the floor for a motion. 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 eight (8) "ayes" and zero (0) "nays", with Director Bums absent, to approve and adopt Resolution No. FWLDC-2009-18. The motion carried. Adopt Resolution Authorizing Loan to Tax Increment Reinvestment Zone Number Twelve (Last Berry Renaissance TIV) for Environmental Re mediation of 1108 E. iie�rry (Agenda Item 5) Ms. Dolores Garza, Economic and Development Specialist, Housing and Econo-inic Development Dcpai-ttmcnt, addressed the Corporation Board regarding the pl-oposed resolUT1011. "0s, Garcia provided an aerial view of the proposed development and the location ot"the Men's Collection Store nearby. She explained that the business was currently a(tiacent to a Sack-N- Save on IH-15 and Berry. She provided a picture ofthe i-rien's store and stated that the Owner of _j t1le re ai establishment kvas -Mr. Kee Song. Ms, Garza added that lie had been in business %;eiarte, at the same locaalo-in anid he s€.ld ,,apparel and .:cessone-s, Shethe-,,-�, pro.,vig-led an vie,,v %f dw bus"ness %,,.h ch -,, as 4j,01", CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 6 Adopt Resolution Authorizing Loan to Tax Increment Reinvestment Zone Number Twelve (East Berry Renaissance TIF) for Environmental Remediation of 1108 E. Berry (cont'd) (Agenda Item 5) Ms. Garza provided a picture of the proposed new location for the business at 1108 E. Berry and the current condition of the building and parking lot. She advised that the property was tax foreclosed property that had been in the City of Fort Worth inventory since May 2004 and that Mr. Song would like to move his business to this 15,000 square foot facility. Ms. Garza advised of the following terms for the TIF Agreement- • Invest a minimum of$500,000.00 including land costs • Creation of at least two (2) full-time jobs • Increase inventory to include women's and children's clothing • Request up to $175,000.00 in TIF funds for: • Eligible streetscape improvements 025,000.00) • Remediation and Debris Haul off(S]50,000.00) Ms. Garza showed a picture of the required streetscape improvements and advised of the following issue with staff recommendation: • Issue—TIF does not have available funding for project • Recommend LDC loan TIF up to S 175,000.00 at six (6) percent interest for: o Eligible remediation and debris removal costs • TIF will pay back LDC loan upon funds being available. It is expected that LDC will be repaid within two years (Director Burns returned to his place at the table,) Ms. Garza concluded her presentation by advising of the terms of the TIF agreen-lent with *he owner as fool ows- I ennis for refinbursement c.., Owner must subt-nit receipts of TIF elligible expenses 1-Or TIF reimbursement Two (2) jobs must be created within 1 20 days of obtaininu a Certificate of Occupancy CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED-SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 7 Adopt Resolution Authorizing Loan to Tax Increment Reinvestment Zone Number Twelve (East Berry Renaissance TIF) for Environmental Remediation of 1108 E. Berry (cont'd) (Agenda Item 5) * After obtaining Certificate of Occupancy (CO) and creating two (2) jobs, owner will receive 1/12 of the eligible TIF funds each month * For every month the CO and the two (2) Jobs are not in existence, TIF will keep the 1/12 '. President Moss opened the floor for discussion on this issue. Director Burdette asked if the total investment for this property was $675,000.00 and Ms. Garza responded affirmatively. Senior Assistant City Attorney Peter Vaky clarified that the TIF Board was only requesting $150,000.00 for the environmental rernediation as there was $25,000.00 for debris removal currently available in TIF funds. Director Jordan asked if the loan was from the LDC to the TIF and from the TIF to the individual owner and then if the loan would be reimbursable by the owner to the TIF and then the LDC. Senior Assistant City Attorney Vaky clarified that this was a loan to the TIF as the TIF did not have current available increment revenue to pay for the project. He added that the LDC would reimburse Mr. Song for the environmental remediation costs which were TIF eligible project costs and TIF would reimburse the LDC. Ms. Garza advised that the loan had a six (6) percent interest rate. Director Moncrief stated that the TIF had approximately S2,4M available and he thought this was a �-,00d expenditure to relocate a business and get rid of a blighted facility which would P11 1.y inajlor dividends back to the City, President Mo si ss stated that the buness also did a lot ot'bu sin ess within the conninunity and carr kinds ied the stvle and kin of clothes people -in the co-nmunity wanted, Dir ---tor Mcr on ef called for the question. e, 1 Dre!�",,'Jenl Mooss opeed the f-loo�r f' n )r a inotcii, W I I R ,, CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 8 Adopt Resolution Authorizing Loan to Tax Increment Reinvestment Zone Number Twelve (East Berry Renaissance TIF) for Environmental Remediation of 1108 E. Berry (cont'd) (Agenda Item 5) NIOTION: 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 nine (9) ayes" and zero (0) "nays", to approve and adopt Resolution No. FWLDC-2009-19. The motion carried. Adopt Resolution Authorizing a Lease with Chesapeake on Property Located at 3224 Yuma Street for the Installation of a Frac Pond (Agenda Item 6) Director Jordan advised that he had filed a Conflict of Interest Affidavit with the City Secretary's Office and would abstain from voting on this issue. (Director Jordan left his place at the table) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Ms. Garcia provided an aerial view of the location that depicted the property owned by Chesapeake in blue and the location of the LDC property nearby in red. She also showed an aerial view of the Riverside and Berry Urban Village and advised the Board of the following Master Plan for the Urban Village: • Zoned Mixed Use/Comi-nercial • S740,000.00 from the Federal Highway Administration • Proposed Improvements- Traffic Sigr ial Improvements S -eetscape Improvernents Sidewalk ImprovernenN CrossaNalk h-npro,,-ements Liahting o Landsc.aping • Public Art Fund'Ing for Urlban Village - S50,000.00 • Constructiontobegin Fall 2,010 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, NOVEINIBER 3, 2009 Page 9 Adopt Resolution Authorizing a Lease with Chesapeake on Property Located at 3224 Yuma Street for the Installation of a Frac Pond (cont'd) (Agenda Item 6) Ms. Garcia provided an aerial view that depicted a closer image of the location at the comer of Riverside and Berry. She also referred to the first aerial view and then the same aerial view with placement of the frac pond on the Chesapeake property and then on the LDC property. She provided the following staff recommendation: • Finer into a Frac Pond Lease with Chesapeake at 3224 Yuma • Consideration * S 1.00 per year * Receive approval from the City of the drilling site * Chesapeake must rezone property at the comer of Riverside and Berry to PD- MU I with the following excluded uses: • Auto Parts ■ Furniture Upholstering, Refinishing or Resale • Gasoline Sales ■ Parking area or garage storage'llcommercial or auxiliary • Liquor and package stores Ms. Garcia noted that Chesapeake would also have to grant the City an casement along Berry Street on their property for the improvements. President Moss opened the floor for discussion on this issue. Director Burdette asked where the well site was located. Director Hicks stated that the well site would be on Berry Street. Mr, Ray Qjinsk� N red rose ntin, gr Cheszalseake Energy Corporation, ad, thm Chesapeake had platted a plieCe of property toward the back portion of ti-he property .vith the City and vdhat the Cily saw recently was a pr pose drill site which was solmevvhat at odds -with. the platting done previously, He added that this was an operational mismake by Chesapeake staf an d noted that what was sent to the City would have to be revised. He pointed out that Chesapeake was cognizant of development taking place on the property and that Chesapeake's intent was to bring a site plan for approval that vv-0uld prOinote development tO the rear of the property as opposed to t h e tiro n t t-0� ie p )p er—v e. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED- SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 10 Adopt Resolution Authorizing a Lease with Chesapeake on Property Located at 3224 Yuma Street for the Installation of a Frac Pond (cont'd) (Agenda Item 6) At the request of Director Hicks, Ms. Susan Alanis, Director of the Planning and Development Department, explained the differences between what Chesapeake originally platted for the site and what Chesapeake actually submitted which was not acceptable to staff. She noted that prior to execution of any lease documents staff would require Chesapeake to submit an acceptable drill plan that would limit the drilling to the southwest comer to preserve the ability to develop that portion on Berry Street. Director Moss asked for the general location for the site and Mr. Ojinsky advised that he could not provide a firm location. He gave Chesapeake's word that they would work with City staff to keep the expanse of the drill site from going any further north than necessary to safely operate the drill site at the location. Director Moncrief asked that if Director Hicks was to make the motion to approve the resolution under consideration if it would be conditional upon the site being satisfactory when being brought back to the Board. Ms. Alanis clarified that the resolution stipulated that Chesapeake would have to provide a drill plan acceptable to the City. She added that staff did not envision the plan coming back to the Board, but staff would certainly review the plans with Director Hicks before proceeding with the execution of any documents. Director Hicks stated that was acceptable and asked if Chesapeake would limit the number of wells to only six (6)• Mr. 0jinsky responded affiri-natively. There beinu, no further discussion, President Moss opened the floor for a motion. MOTION: Upon a .notion made by Director f-ficks and seconded by Director Moncrief, the Board of Directors of the Fort Worth L-ocal De-,velopment Corpioration voted unanimoush; enaht (8" "aves- and zero (0) -nays-, with an abstention by Direct_,r Jordan, t(--;- approve and adopt Resolution No. "Wl-,DC-2009-20, The motion r can-i cd. (Director Jordan re-turned tk-,-, hi place at the table." CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page II Executive Session (Agenda Item 7) President Moss stated that he had been advised that an Executive Session was not necessary on the following items: 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 Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations related to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Requests for Future Agenda Items (Agenda Item 8) President Moss opened the floor on requests for future agenda items. No requests were made by Corporation Board members. Adiourn (Agenda Item 9) With no further business before the Board, President Moss adjourned the called — special session of the Fort Worth Local Development Corporation at 1:48 p,rn. on Tuesday, November 3. 21009. These minutes appro,'ed by the Fort Worth Local Development Corporation o1i the 17th of Januarv-1. 201 O APPROVED- ---------------- fr ----------------------------------------- Frank � loss President CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, NOVEMBER 3, 2009 Page 12 ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: Ronald P. Gonzales, T C Assistant City Secretary