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HomeMy WebLinkAbout2009/09/01-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Present: President Frank Moss Vice President Dannv Scarth Secretary Carter Burdette Treasure W.B. "Zim" Zimmerman Director Salvador Esping Director Jungus Jordan Director Kathleen Hicks Director Joel Bums Absent: Director Mike Moncrief City staff: Torn Higgins, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Cynthia Garcia, Assistant Director, Housing and Economic Development Department Other Citv staff in attendance included: LeAnn Guzman, Assistant City Attomcv Susan Alanis, Director. Planning and Development Department Call to Order (Agenda Item 1) With a quorurn of the Board Members present, President Moss called the called - special session to order tor the Board of Directors of the Fort Worth Local Development Co oration (Corporation) at 11:09 p,in, on Tuesday. September 1, '11009, in the Pre-Council Chamber of the For-1, A'cwth Municipal But-Ung, 10011) Throckmorton, For, Worth. Tcxas, vQ ith Director Moncrief <l sent. Approval of Minutes from Nleeting held on July 28,�2009 (Agenda Item 2) P,eslderit M-,,,)ss t-)pened thie, f1cww t'or a nioll'on cw" the inilnultes' CITY OF FORT WORTH, TEXAS FORT )VORTH LOCAL DEVELOPMENT CORPORATION CALLED-SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 2 Approval of Nlinutes from Meeting held on July 28, 2009 (cont"d) (Agenda Item 2) 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 eight (8) "ayes- and zero (0) "nays", with Director Moncrief absent, to approve the minutes of the July 28, 2009. meeting of the Fort Worth Local Development Coq:)oration, The motion carried. Consideration of Financial Report (Agenda Item 3A) President Moss referenced the following financial report: The Balance Sheet dated July 31, 2009, for the Corporation (unaudited) as follows: Assets Cash and cash equivalents $2,496,226,37 Interest Receivable 6.77 8,31 Accounts Receivable(1) 260,858.82 Total Assets $2.763.863,50 Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Deferred Revenue 16-581,10 -l'ota', Liabilities 16,581,10 Fund Balance(Deficit) Designated for-Authorized Expenditures S3,019,991,77-7 Net Income (272,709,37) Undes-1 i4nated 000 I ota, Fun'd Balaince 2A0 71,863 'Yotal Labilities an d Fund Balance 2 $ , 6 0") AI! Accounts Receivable are fironi A.111 Acquisition. LLC 260.8 8,82 'Hhc Staten-le nit of Reverwes ;.,-End Fx Pend flaces 1'rorn October 1, 2008, di-11RDILIU111 JU"�� 111, tunaudited), S: CITY OF FORT WORT", TEXAS FORT WORT" LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 3 Consideration of Financial Report(cont'd (Agenda Item 3A) Revenues Property Tax Reimbursement 543,769.58 Revenue from Rents 309,235.13 Gas Lease Bonus 3.789.48 f I U D Loan Administration Fee 0,00 Interest Income 63.90717 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue 5420,701,36 Expenditures Bank Charges $208.83 Contractual Services 3,25148 Insurance 10.497.60 Property Management 14,554.10 Property Purchase 286,959.13 Property Taxes 116,02102 Repairs 12,682.58 Storm Water Utility 17.510.25 Transfers to City 231,72 1.74 Total Expenditures 5693,410.73 Excess (Deficiency) of Revenues Over(Under) Expenditures I (5271709.37) The Schedule of Available Funds dated July 31. 21009 (unaudited), for the Corporation as follows: Total Cash at July 31, 2009 52.496.226,37 Cash in Property Management Account (37 -16,2- 971 Cash available in Cite aCCOLlut 2,458.989A0 nitine-nas Cvp}eas, Avpr€;vedlklay 1 Purchase,, M'Pre ,pen ies S88475J)0 i oan to 13 (Woodlim en) 1001,000,00 Loan to(-'v ress Equities, 1-1). �P S39o),Ooo.1114 1-vans & Rosedale LA,hilniced CT-A 88.0.(1)0€j.(1)01 Survev FXpenses S6,250,00 Re s e r e s CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED- SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 4 Consideration of Financial Report (cont'd) (Agenda Item 3A) Maintenance Reserve 100.00000 Property Tax Reserve 100,000,00 Total Commitments & Reserves 1,764,7215,00 Unrestricted Cash Available $694.264.40 The Schedule of Available Funds noted that on August 21. 2007, 5275,000.00 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 on these reports. There was no discussion or formal action on the reports and the reports were accepted as presented. Adopt Resolution Authorizing an Exclusive Right to Lease Listing Agreement with Coldwell Banker Commerce Searcy Vasseur Group to List Property at 4600 Blue Mound Road (Agenda Item 4) Ms, Cynthia Garcia, Assistant Director, Housing and Economic Development Department. addressed the Corporation regarding the proposed resolution, Ms- Garcia advised that this property was the old American Ironhorse property at the comer of Blue Mound Road and Meacham. She provided a map that depicted the location of the property and provided the following background inforniation: * FWL.DC appr ffl 2ese we cqusions in -1()08 * AIH filed for bankruptcv in 2009 * Lease \8.-ill tenninatc September 21009 * Recommendation List Agreement with Coldwd'i Banker Commerce Searcy Vasseur Group Presentiv managi p ng the property Six inonth ternn CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED -SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 5 Adopt Resolution Authorizing an Exclusive Right to Lease Listing Agreement with Coldwell Banker Commerce Searcy Vasseur Group to List Property at 4600 Blue Mound Road (cont'd) (Agenda Item 4) Ms. Garcia stated that staff would negotiate the actual percentage of the commission, currently proposed by Coldwell Banker Commerce Searcy Masseur Group for 4.5 percent. She added that staff would also like to place a"For Lease" sign'on the property, President Moss opened the floor for discussion on this issue. Director Espino stated that across from this property was a proposed sexually oriented business (SOB) and asked how the Corporation could protect itself from a proposed FWLDC property becoming an SOB. Ms. Garcia stated that the current direction to the FWLDC was to continue to lease the building in an endeavor to sell the building. She added that when the FWLDC ]eased the property specific language of what the use could be for the building was provided along with information that prohibited any such uses. Director Scarth asked Ms. Garcia if the FWLDC did not reach a ne- otiating agreement with the listing agent, if another method would be used to obtain an agent. Ms. Garcia stated that a Request for Qualifications (RFQ) would be submitted. She added that there had been other organizations that had expressed interest in the building, but that since the FWLDC already had a long relationship with the Coldwell Banker Commerce Searcy Vasseur Group, they already knew how the building worked and the water issues inherent with the building, that it would be prudent to continue that relationship at this point. Assistant City Manager Higgins advised that the City Manager had asked other Cifv depaftrnents, Yiven the budoet issues the City was facing, to loOk at this building as a possible fficiliv,-, 'le added that that it. would become complicated because the FVVI-DC woutc, be collecting the rent fol-the propertv There being no further discussion,. President Moss opened the floor for a moti011. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED-SPECIAL SESSION TUESDAY, SEPTEINVIBER 1, 2009 Page 6 Adopt Resolution Authorizing an Exclusive Right to Lease Listing Agreement with Coldwell Banker Commerce Searcy Vasseur Group to List Property at 4600 Blue Mound Road (cont'd) (Agenda Item 4) MOTION: Upon a motion made by Director Esping and seconded by Director Burdctte, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously eight (8) "ayes" and zero (0) "nays", with Director Moncrief absent, to approve and adopt Resolution No. FWLDC-2009-15. The motion carried. Adopt Resolution Authorizing the Payment of Taxes on LDC Properties at 901; 909; 1009 and 1013 Evans; 1037 S. Freeway. 1776 E. Berry; 2200 Bomar Ave., 3217 and 3224 Yuma, 1509 and 1515 E. Lancaster; and 708 and 911 E. Rosedale (Agenda Item 5) (Director Jordan left his place at the table and did not return.) Ms. Cynthia Garcia. Assistant Director, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Ms. Garcia advised that the FWLDC now owned approximately 14 properties that were purchased over the past year and taxes were due on some of those properties. She added that staff believed there was a way the FWLDC could become tax exempt and staff was working with the City Attorney's Office to pursue that matter. She stated that staff would like to have authorization to pay the taxes on these properties up to 520.000.00 and advised that the current debt was approximately S 1.500 00, but she was unsure about any penalties or interest on this issue. President Moss opened the floor for discussion on this issue, Director Burns lasked when a determination would be made relative to the tax exempt status. Assistant City Attorney Vaky responded th-at the issue was lust brought to the City Attorne-'s attention and an answer would be made sithitl a week. y Press dent Moss clanfied that what Ms. Garcia was stating Nvas that the inaxinnum aniount tt,) be auflhoriz-01'1 S-20,"0010,0CY fi-r "111 rpro-pertles, II CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 7 Adopt Resolution Authorizing the Payment of Taxes on LDC Properties at 901, 909; 1009 and 1013 Evans; 1037 S. Freeway; 1776 E. Berry, 2200 Bomar Ave.; 3217 and 3224 Yuma; 1509 and 1515 E. Lancaster; and 708 and 911 E. Rosedale (cont'd) (Agenda Item 5) Ms. Garcia responded affirmatively and added that if the entire amount was not needed, it would not be used and if the taxes and interest owed on the properties were more than the 520,000.00, staff would come ask the Corporation for an increase for that amount. She advised that this amount was to cover back taxes for all properties for years previous to the 2008-2009 timetrame. Director Burdettc stated that it was clear to him that the taxes would not be paid prior to the ruling on the legal question of tax exempt status and Ms. Garcia concurred. Assistant City Attorney Vaky clarified that the resolution under consideration was subject to legal counsel review and ascertainment of the taxes due and delinquent. Director Scarth asked if the FWLDC had to adopt some guidelines for use of these properties or predict the plans for use of the properties before deciding if they were taxed or not. Assistant City Attorney Vaky stated that the question as to whether taxes were owed was dependent on the use of the property which was the information he needed to determine whether the taxes were indeed owed. He added that he was not clear on how the properties were currently being used. Director Scarth asked if that kvould require this issue returning to the Corporation for consideration. Assistant City Attorney Vaky responded that it would not and that requirements nertaining to ativ future use of the property was a poficyl issue separate and apart p.rorn, the legal qL In-StIon as to �s,,hether current, or previous uses of the property vvouid trigger the "laxes that were allegedly owed. President Moss inquired if the properties were presentiv for residential use and Ms. Garcia stated that FWIL-IDC properties were for commercial use and were actively being marketed for businesses. Pres'..'-derit "vloss t-opene0l the flkmu-�,r '-0,r a inloa10,111- CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED- SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 8 Adopt Resolution Authorizing the Payment of Taxes on LDC Properties at 901; 909; 1009 and 1013 Evans; 1037 S. Freeway; 1776 E. Berry, 2200 Bomar Ave., 3217 and 3224 Yuma; 1509 and 1515 E. Lancaster; and 708 and 911 E. Rosedale (cont'd) (Agenda Item 5) NIOTION: Upon a motion made by Director Scarth and seconded by Director Esprno, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously seven (7) ayes" and zero (0) -nays". with Directors Moncrief and Jordan absent, to approve and adopt Resolution No. FWLDC-2009-16. The motion carried. Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (Agenda Item 6) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department advised the Board of the proposed budget in their agenda packet regarding the proposed budget for October 1, 2009, through September 30, 2010 (unaudited), presented below: Revenues Property Tax Reimbursement 588.638.30 Revenues from Rent 5555.769.20 Gas Lease Bonus 50.00 Sale of Properties 521,520.90 Interest Income 512,000.00 Change in Fair Value of Investments 500.0 Other Revenue 50,00 Total Revenues 5677,928.40 LI- Renditures Bank Char es S200,00 Contractual Services S 115,0 Insurance S30-190j)() Property Managernent I w S22-230.77 Property Purchase S( w -00 Property Taxes S 14005 1,773 Repairs S4M()0' 010 S to._-,i-,- \Av'a te r L,.'t"In't v S-14,975,00 Slur%,'e,ys & S`Zm""jo,io'n CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 9 Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (cont'd) (Agenda Item 6) Transfers to City 526.000,00 Utilities S 11000.00 Total Expenditures S31�6247JQ Excess (Deficiency) of Revenues Over(Under) Expenditures S-161 680.90 President Moss opened the floor for discussion on this issue. Ms. Garcia advised that the budget reflected revenues based on six (6) months of rent and it was anticipated that the building for the American lronhorse location would be leased for the remaining six (6) months of the year, Director Burdette stated that under both revenues and expenditures was a tax item; one was "Property Tax Reimbursement" of revenues and the other was the expenditure of"Property Taxes". He asked how those taxes related to the previous discussion. Ms. Garcia stated that those taxes were taxes paid for on the American lronhorse property and because those properties were leased on the market rate, the FWLDC was responsible for the taxes but the tenants paid the taxes as part of their lease. Director Burdette then clarified that the taxes were not affected by the legal question regarding tax exemption. Ms. Garcia concurred. President Moss stated that under "Expenses" an entry of "Transfers to the City" was reflected and asked for an explanation of that entry, Ms. Garcia stated that a person on staff actually monitored the financials for the FWI-DC and this was to fund a portion of`-that person's salary, Director Espino requested that in the future, staff provide a comparlson otif the actual bud.et f-0-in the pre-vious year, President Moss opened the floor fcw a rnotion. CITY OF FORT NVORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page 10 Adopt Resolution Approving Budget for the 2009-2010 Fiscal Year (cont'd) (Agenda Item 6) Upon a motion made by Director Esping 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 Directors Moncrief and Jordan absent, to approve and adopt Resolution No. FWLDC-2009-17. The motion carried. President Moss recessed the called — special session of the Corporation Board into Executive Session at 1:22 p.m., in accordance with the requirements of the Texas Open Meetings Law. Executive Session (Agenda Item 7) In accordance with Chapter 551 of the Texas Government Code, President Moss and the Directors of the Fort Worth Local Development Corporation, except Director Moncrief who was absent, convened into Executive Session at 1:22 p.m., on Tuesday, September 1., 2009, in the Pre-Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76 102, in order to: 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 551.07I of the Texas Government Code,- 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 neLj,otlatlons with a third party; and Discuss or deliberate ne'uOtlations relating to anV econ,oniic devel negotiations. as auth nzed bN� Section '�51.087 o f I th t e texas (Government Code, The Executive Session a(tiourned at 1:51 p.m. President Moss reconvened frou-n the Executive Session back- into the called - special se-Sslon, at 1 '32 - CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION TUESDAY, SEPTEMBER 1, 2009 Page II 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 members. ,A-d'journ _ (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 1:33 p.m. on Tuesday, September 1, 2009. These minutes approved by the Fort Worth Local Development Corporation on the 3`1 day of November, 2009. APPROVED: P1 #' A frank Moss President ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by 11---------- I-------1-1111,-------- -,---------,------ Ronald P, Gonzales, TRMC Assistant City Sep retary