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HomeMy WebLinkAbout2007/12/04-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4, 2007 Present: President Jungus Jordan Treasurer Salvador Espino Director Chuck Silcox Director Mike Moncrief Director Danny Scarth Director Frank Moss Director Jungus Jordan Director Carter Burdette Director Kathleen Hicks Absent: Director Wendy Davis City staff: Dale Fisseler, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Marty Hendrix, City Secretary Tom Higgins, Economic and Community Development Director Jay Chapa, Assistant Director of Economic and Community Development Cynthia Garcia, Community Development Manager, Economic and Community Development Dept. Henry Day, Senior Management Analyst, Economic and Community Development Dept. Other City staff in attendance included: City Manager Charles Boswell Joe Paniagua, Assistant City Manager Call to Order (Agenda Item 1) With a quorum of the Board Members present, President Jordan called the meeting to order for the Board of Directors of the Fort Worth Local Development Corporation (LDC) at 2:12 p.m. on Tuesday, December 4, 2007, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4, 2007 Page 2 Approval of Minutes from Meeting held on November 6, 2007 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. MOTION: Upon a motion made by Director Moss and seconded by Director Moncrief, the Board of Directors of the Fort Worth Local Development Corporation voted eight (8) "ayes" and zero (0) "nays", with Director Davis absent, to approve the minutes of the November 6, 2007, Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report and Adoption of a Resolution Approving the FY 2007-08 Budget (Agenda Item 3) Mr. Henry Day, presented the Balance Sheet dated October 31, 1007, for the Fort Worth Local Development Corporation(unaudited) as follows: Assets Cash and Cash Equivalents $1,355,834.06 Interest Receivable $3,484.93 Accounts Receivable $270,386.36 Total Assets 1,629,705.35 Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Total Liabilities 0.00 Fund Balance (Deficit) Designated for Authorized Expenditures $1,629,705.35 Undesignated 0.00 Total Fund Balance $1,629,705.35 Total Liabilities and Fund Balance $1.629.705.35 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 3 Consideration of Financial Report and Adoption of a Resolution Approving the FY 2007-08 Budget (cont'd) (Agenda Item 3) The Balance Sheet noted that all accounts receivable are from American Ironflorse Motorcycle Company, Inc., with additional notation on deferral provisions of their monthly rental. The notation also included the transfer of$275,000.00 to the City with the understanding that it would be repaid from the sale of certain properties. Mr. Day continued his review with the Statement of Revenues and Expenditures for the One Month Ended October 31, 2007 (unaudited) for the Fort Worth Local Development Corporation as follows: Revenues Property Tax Reimbursement $795.84 Revenue from Rents $45,330.20 Sale of Property 0.00 Interest Income 0.00 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $46,126.04 Expenditures Bank Charges $13.04 Contractual Services 700.00 Property Management 1,813.21 Property Taxes 0.00 Repairs 250.00 Storm Water Utility 1,609.50 Transfers to City of Fort Worth 0.00 Total Expenditures $4,385.75 Excess (Deficiency) of Revenues Over (Under) Expenditures 41 740.29 Director Burdette pointed out the amount of available cash, with the line item for interest receivable, and then questioned whether the Corporation separately invested the cash or if it was invested as part of the General Fund of the City. Mr. Day explained that it was invested as part of the General Fund of the City. Director Burdette requested the amount of return that was CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY,DECEMBER 4, 2007 Page 4 Consideration of Financial Report and Adoption of a Resolution Approving the FY 2007-08 Budget (cont'd) (Agenda Item 3) received on those investments. Mr. Day stated that with the total portfolio of the City, it generally ran 3.5%to 4%. In further review, Mr. Day pointed out that there was no interest income for the month of October 2007 as it had not been posted at this time. He stated that he anticipated that there would be $4,000.00 to $5,000.00 in additional income once the interest is posted. Mr. Day reviewed the Schedule of Available Funds dated October 31, 2007, for the Fort Worth Local Development Corporation as follows: Total Cash at October 31, 2007 $1,355,834.06 Cash in Property Management Account (23,192.50) Cash Available in City account $1,332,641.56 Commitments Cypress, Approved May 1, 2007 $200,000.00 Proposed Commitments Survey of Lancaster Avenue $162,000.00 Purchase of 1009 Evans 60,000.00 Reserves Maintenance Reserve 100,000.00 Property Tax Reserve 100,000.00 Total Commitments & Reserves $622,000.00 Unrestricted Cash Available $710,641.56 Chairman Jordan opened the floor for discussion and/or action by the Board. 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 eight (8) "ayes" and zero (0) "nays, with Director Davis being absent, to approve the financial reports as presented. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 5 Consideration of Financial Report and Adoption of a Resolution Approving the FY 2007-08 Budget (cont'd) (Agenda Item 3) Mr. Day presented the Fort Worth Local Development Corporation Proposed Budget for Fiscal Year Ending September 30, 2008 as follows: Revenues Property Tax Reimbursement $155,000.00 Revenue from Rents 564,412.44 Sale of Property 0.00 Interest Income 40,000.00 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $759,412.44 Expenditures Bank Charges $100.00 Contractual Services 210,000.00 Property Management 22,576.50 Property Purchase 60,000.00 Property Taxes 155,000.00 Repairs 25,000.00 Storm Water Utility 21,145.50 Transfers to City of Fort Worth 0.00 Total Expenditures $493,822.00 Excess (Deficiency) of Revenues Over(Under) Expenditures $265,590.44 Mr. Day reviewed the proposed budget notation for the breakdown of the Contractual Services as: Legal Fees for $5,000.00; Survey Fees for $5,000.00 and Cypress Equities for $200,000.00. Mr. Day pointed out that the $20,000.00 was identified for the purchase of property at 1009 Evans. Chairman Jordan opened the floor for discussion and/or action by the Board. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 6 Consideration of Financial Report and Adoption of a Resolution Approving the FY 2007-08 Budget (cont'd) (Agenda Item 3) Cynthia Garcia, Community Development Manager in the Economic and Community Development Department, advised that the staff requested that the $60,000.00 budget figure be increased to $63,000.00. Director Moss requested clarification of the "property tax reimbursement" in the line item of the revenues. Mr. Day stated that this referred to the contracts for the tenants located on the Fruehauf property and the fact that they have to pay the property taxes for that property. He clarified that the revenue line item is offset by the expenditure line item to pay the property taxes. Director Moss requested clarification of the tenants on the Fruehauf property. Mr. Day stated that it was the tenants of American Ironhorse, L & W Supply, etc. 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 eight (8) "ayes" and zero (0) "nays, with Director Davis being absent, to approve the Proposed Budget for the Fort Worth Local Development Corporation for Fiscal Year Ending September 30, 2008, with the amendment of $63,000.00 for the Expenditure Line Item for Property Purchase. The motion carried. Consideration of a Resolution to Loan the City of Fort Worth Up to $162,000.00 for Surveys of Surplus Property in the Lancaster Avenue Corridor and Authorize Execution of Documents Addressing Repayment by the City (Agenda Item 4) Mr. Jay Chapa, Assistant Director of Economic and Community Development, spoke before the Board on the proposed resolution for the LDC to loan the City of Fort Worth up to $162,000 for surveys of the surplus property in the Lancaster Avenue Corridor and authorizing the execution of the documents addressing repayment by the City. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4, 2007 Page 7 Consideration of a Resolution to Loan the City of Fort Worth Up to $162,000.00 for Surveys of Surplus Property in the Lancaster Avenue Corridor and Authorize Execution of Documents Addressing Repayment by the City (cont'd) (Agenda Item 4) Mr. Chapa advised of surplus property that would be available along the Lancaster Corridor once the roadway construction project had been completed by the Texas Department of Transportation (TXDOT). He pointed out that TXDOT will notify the City of the property availability and the City would get the first right of purchase of that property. He pointed out that the City's plan is to purchase the property. He stated that in order to know what the City would need to purchase and what the City currently owned and then be able to work on projects for redevelopment of that area, he stated that the property needed to be surveyed. Mr. Chapa reviewed a copy of the Lancaster Corridor Plan and pointed out lots that were part of the surplus property. He advised that once the new road is completed the lots would be covered in grass. Mr. Chapa explained that the request was for the LDC to loan the City $162,000.00 to pay for the surveying of the properties from Lamar Street to Commerce Street, with the loan being repaid once the City-owned properties were sold for redevelopment. He clarified that the reason the survey was only in that area was apparently due to the fact that the property to the west of Lamar and east of Commerce are still going to be under TXDOT's control until a later date. He stated that the $162,000.00 figure was determined by actual projection by a surveying firm for $135,000.00 to complete the work and the staff added a 20% contingency onto the project just to make sure that there was sufficient funding to do the land research and potential history on the ownerships, etc. Assistant City Manager Dale Fisseler provided additional information on the background of this request. He referenced the lots identified as No. 5 and No. 6 on the map. He stated that the reason there was going to be additional surveying work being done on all of the referenced properties was that those properties would not be able to be sold as they currently exist. Mr. Fisseler pointed out that some of the property will have to be dedicated for street right-of-way. He added that the staff would be working with TXDOT to do some simultaneous closings at TXDOT, thus the staff needed all of the information that was necessary to do so. He emphasized that this was going to be a complicated project, thus the need for the additional contingency funding that had been identified. He did clarify that staff may have to come back to the LDC for additional funding, if necessary; however, the staff felt that the contingency funding should be sufficient. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 8 Consideration of a Resolution to Loan the City of Fort Worth Up to $162,000.00 for Surveys of Surplus Property in the Lancaster Avenue Corridor and Authorize Execution of Documents Addressing Repayment by the City (cont'd) (Agenda Item 4) Chairman Jordan questioned clarification on whether the construction was being done by TXDOT. Assistant City Manager Fisseler stated that this was a TXDOT project. He pointed out that the traffic has now been moved to the new concrete lanes and TXDOT would be tearing up the old temporary lanes and grading the area and putting in sod. He stated that the grassy area will remain until a developer can be found to bring a new redevelopment plan for this area. MOTION: Upon a motion made by Director Hicks and seconded by Director Scarth, the Board of Directors of the Fort Worth Local Development Corporation voted eight (8) "ayes" and zero (0) "nays", with Director Davis being absent, to approve the resolution that authorized the LDC to advance a sum not to exceed $162,000.00 for costs incurred by the City that are related to the survey of excess right-of-way on the north side of Lancaster Avenue; and that President is authorized to execute an agreement or agreements with the City of Fort Worth for repayment of any such advances in accordance with and pursuant to terms and conditions that may be agreed to by the Corporation's administrator and legal counsel. The motion carried. Consideration of a Resolution for the Purchase and Demolition of Structures Located at 1009 Evans Avenue (Agenda Item 5) Cynthia Garcia, Community Development Manager, Economic and Community Development Department, spoke before the Board on the resolution authorizing the purchase and demolition of a structures located at 1009 Evans Avenue. She advised that the LDC had been approached by the owner of the property at 1009 Evans Avenues about their interest to sell this property. She pointed out that it was in the Evans/Rosedale Urban Village and that the current appraised value was $27,500. She presented a map showing the area of the urban village and the location of the subject property. She pointed out that the lots marked in red and blue were being sold by the City to Cypress Equities for development. She also advised of the locations of the new Fort Worth Health Department Shamblee Library. She stated that this was a key piece of property as it was located just across the street from the plaza. Manager Garcia then showed a photograph of the property and the existing structure on the property. She pointed out the poor CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4, 2007 Page 9 Consideration of a Resolution for the Purchase and Demolition of Structures Located at 1009 Evans Avenue (cont'd) (Agenda Item 5) condition of the structure. She advised of the request for authorization from the LDC in order to purchase the property and that the owner of the property was willing to sell the property for $36,500.00. She added that once the property had been purchased, the staff would move forward to have the structure demolished. In the discussion on this item, Manager Garcia clarified that the resolution reflected the amount to be up to $43,000.00 so that funding could be available for survey, the appraisal, and closing costs. She advised that the cost for demolition would be another $20,000.00. Chairman Jordan opened the floor for discussion and/or action by the Board. Director Burdette stated that he assumed the reason for the purchase of the property was to hold it and then sell it to a developer. Manager Garcia explained the phased-in approach to development by Cypress Equalities, upon the moving of the Fire Station located in the area. She advised of the neighborhood home development in the area by KT Land, with Tom Struts and Kenneth Barr, on 125 residential lots. Director Burdette requested clarification of the zoning on the east side of Evans. Manager Garcia stated that she believed it was commercial zoning; however, the exact zoning could be verified. Manager Garcia clarified that the City already owned a lot that adjoins the subject property that the LDC would be purchasing. Director Moncrief requested clarification as to how long the subject property had been vacant. Staff did not know the exact time; however, Director Hicks indicated that it had been a very long time. Assistant City Manager Dale Fisseler advised that President Jordan had requested some background information on the LDC. He stated that the Fort Worth Local Development Corporation was created in order to do these types of projects. He stated that the Corporation allows these types of projects like the Lancaster Corridor and the purchase of the subject property. He stated that the City does not have to use General Fund dollars to do so. He referenced other projects like Evans/Rosedale, old Oakbrook Mall site, Sierra Vista site, etc. He added that the City's Economic and Community Development Department did not have any budget for these types of projects or investments. He added the LDC is the mechanism that allowed for these types of investments. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 10 Consideration of a Resolution for the Purchase and Demolition of Structures Located at 1009 Evans Avenue (cont'd) (Agenda Item 5) MOTION: Upon a motion made by Director Moncrief and seconded by Director Hicks, the Board of Directors of the Fort Worth Local Development Corporation voted eight (8) "ayes" and zero (0) "nays", with Director Davis being absent, to approve the resolution that authorized the LDC to purchase the property located at 1009 Evans from the owner for an amount up to $43,000.00, which included survey, appraisal, and closing costs; and to demolish the structure thereon at a cost up to $20,000.00, so as to promote revitalization of the area. The motion carried. Executive Session (Agenda 6) President Jordan advised that the following Executive Session agenda items would be passed over. A. Seek the advice of its attorneys concerning legal issues regarding (i) American Ironhorse Lease Agreement and (ii) 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 551.071 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the City 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. Requests for Future Agenda Items (Agenda Item 7) There were no requests for future agenda items. Assistant City Manager Fisseler announced that there would not be a need for an LDC Meeting in the month of January 2008. r CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, DECEMBER 4,2007 Page 11 Adiourn (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 2:26 p.m. on Tuesday, December 4, 2007. These minutes approved by the Fort Worth Local Development Corporation on the 18th day of December, 2007. APPROVED: Jung Jor4jn Presi ent ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: Marty Hendrix, C/MMC City Secretary