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Home My WebLink About2007/05/01-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 1, 2007 Present: President Wendy Davis Vice President Chuck Silcox Secretary Carter Burdette Treasurer Salvador Espino Director Mike Moncrief Director Danny Scarth(arrived at 12:42 p.m.) Director Jungus Jordan Director Kathleen Hicks Absent: Director Donavan Wheatfall City staff: Dale Fisseler, Assistant City Manager Peter Vaky, Assistant City Attorney Marty Hendrix, City Secretary Tom Higgins, Director of Economic and Community Development Jay Chapa, Assistant Director of Economic and Community Development Cynthia Garcia, Community Development Manager Ardina Washington, Business Development Coordinator Other City staff in Attendance: Karen Montgomery, Assistant City Manager/Chief Financial Officer Jerome Walker, Director of Housing Henry Day, Senior Management Analyst Fernando Costa, Director of Planning and Development Department (arrived at 12:44 p.m.) Guests: Kirk Williams, with Cypress Equities, I, L.P. John Painter, with Cypress Equities, I, L.P. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 1,2007 Page 2 Call to Order (Agenda Item I) With a quorum of the Board Members present, President Davis called the meeting to order for the Board of Directors of the Fort Worth Local Development Corporation at 12:40 p.m. on Tuesday, May 1, 2007, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. Approval of Minutes of April 3, 2007 Meeting (Agenda Item II) President Davis opened the floor for a motion on the minutes. MOTION: Upon a motion made by Director Jordan and seconded by Director Moncrief, the Corporation Board voted seven (7) "ayes" and no (0) "nays", with Director Scarth being temporarily absent and Director Wheatfall absent, to approve the minutes of the April 3, 2007, meeting of the Board of Directors of the Fort Worth Local Development Corporation. The motion carried. Authorize Execution of Agreement with Cypress Equities, I, L.P. for Development Plan for the Evans and Rosedale Area (Agenda Item III) Jay Chapa, Assistant Director of the Community and Economic Development Department, spoke before the Board on the Evans and Rosedale Project regarding the proposed agreement to the contract with the Master Developer, which is Cypress Equities, I, L.P. He stated that this was the next step in the redevelopment plan for that area. Mr. Chapa reviewed the following charting showing the master developer process: April 25,2006 City Council briefing; Staff recommends issuing RFP May 10, 2006 City issues RFP to approximately 15 developers August 11, 2006 RFP deadline; City receives three (3) proposals August 14 to October 3, 2006 Interviews with top candidates/evaluation of proposals October 3, 2006 Cypress selected as Master Developer October 9, 2006 to present Negotiations have been underway on overall development April 24, 2007 City Council approves contract with Cypress for design of the Health Department Building at the new site May 1, 2007 Present Master Developer Contract to Local Development Corporation for approval May 8. 2007 Present property purchase agreement to the City Council CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 1,2007 Page 3 Authorize Execution of Agreement with Cypress Equities, I, L.P. for Development Plan for the Evans and Rosedale Area (cont'd) (Agenda Item III) Mr. Chapa mentioned some issues with the stops and starts regarding the building of the public health department and the necessary funding for that project. Mr. Chapa then reviewed the site plan of the Cypress Equities Proposal showing the preliminary locations of the various buildings. He spoke about the various building locations. He stated that the Public Health Building is now at the north end of the site. He pointed out the areas for retail and office use along Evans Avenue. Mr. Chapa also spoke about the moving of Fire Station No. 5 and the two large billboards located on the property. Mr. Chapa stated that the agreement is in two phases. He added that there is a due diligent phase (planning) and the construction phase. He pointed out that the total contract cost is not to exceed $200,000. He clarified that the $200,000 comes from the Local Development Corporation. Mr. Chapa then reviewed the due diligence period — scope of work. He stated that the overall design site plan and infrastructure plans to include: (delivered 6 months from execution, but no later than December 31, 2007) • Layout of the proposed buildings/pad sites and parking • Location of all utilities to serve all buildings (existing and proposed) in the complete development at build out • Example elevations of proposed retail and commercial buildings • Layout of public infrastructure (suitable for developing construction documents) • Development of design guidelines for the overall development (to be delivered with the site plan) • Monthly progress meetings with deliverables due at the time specified during first monthly meeting • Value-engineering oversight of public health department building to meet budget estimated by the City • Fee not to exceed $60,000, which will be paid out on a pro rata monthly basis over the six months • If Cypress does not move forward with the purchase of the retail/commercial property: o Master Developer Agreement will terminate CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION MINUTES TUESDAY, MAY 1,2007 Page 4 Authorize Execution of Agreement with Cypress Equities, I, L.P. for Development Plan for the Evans and Rosedale Area (cont'd) (Agenda Item III) • Cypress will provide all due diligence materials • Cypress will provide all completed deliverables • Cypress will assign all third party service contracts • Local Development Corporation will cease making payments to Cypress Mr. Chapa talked about the construction phase as follows: Cypress Scope of Services: • Project leader for site preparation and development oversight • Utility construction • Pad site development and construction of buildings • Overall coordination of master plan • Consultant oversight and coordination of health department building as it relates to the overall redevelopment project • Fee is estimated at $140,000, not to exceed $200,000, to be paid over an approximately 12 months of construction period Mr. Chapa presented the recommendation/next steps as follows: • Approve execution of Master Developer Agreement with Cypress Equities for the Evans-Rosedale Redevelopment Area Next steps: • May 8, 2007 City Council review proposed purchase agreement for retail development property • May 15, 2007 City Council consider the M & C to approve the execution of the property purchase agreement Mr. Chapa concluded his presentation. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION MINUTES TUESDAY, MAY 1,2007 Page 5 Authorize Execution of Agreement with Cypress Equities, I, L.P. for Development Plan for the Evans and Rosedale Area (cont'd) (Agenda Item III) President Davis opened the floor for discussion. Director Burdette pointed out that he understands that Cypress Equities has a six-month period of time to decide to purchase the property and move forward with the development. He asked what was going to happen to the City's Health Department construction plans in the mean time. He expressed concerns with holding up that project for six months. Mr. Chapa indicated that the Public Health Building was being redesigned to fit on the new site. He added that the City would be moving forward with that project for construction with the City constructing the building and Cypress serving as a consultant so that this project matches up to the overall site plan. Director Burdette requested further clarification as to the date that the City would break ground for construction. Mr. Chapa stated that it was anticipated that the bids would be let for construction in the late fall of 2007. Director Moncrief requested to go back to the site plan slide. He requested clarification on the property that is located behind the site for the Public Health Building. Mr. Chapa stated that the building was an industrial use where felt material is manufactured. There was further deliberation as to whether it was part of this site redevelopment. Mr. Chapa indicated that it was not part of the redevelopment and the property was privately owned. Director Moncrief stated that there had been some long hard hours put into this project and he knew it was a big moment for Director Hicks as this project was in Council District 8. Director Hicks expressed appreciation to the Board of Directors and City staff for their support. She talked about the history of the work on this project and the fact that the City had not been able to promote the private investment in this area. She again expressed appreciation to the staff in the Economic and Community Development Department and she also thanked President Davis for her input in moving the Public Health Department building further back in the development to allow for the retail/office spaces. She spoke about the positives for this project for the long term. She stated that she is excited about where this is going and grateful to the Council for their support. She spoke to Director Burdette about the construction of the Health Department and that she wanted to see it completed as soon as possible also. Director Hicks took this opportunity to recognize Cynthia Garcia who had moved from the Law Department to the Economic and Community Development Department team. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 1, 2007 Page 6 Authorize Execution of Agreement with Cypress Equities, I, L.P. for Development Plan for the Evans and Rosedale Area (cont'd) (Agenda Item III) President Davis recognized the individuals from Cypress Equities Mr. Kirk Williams and John Painter and she asked Mr. Williams for his comments. Mr. Kirk Williams spoke before the Board Members on this project and spoke about his excitement for the project. He provided the history of how they got involved through George Duncan with Staubach and Company. He pointed out that this has changed quite a bit since its inception. He added that they are not typically fee developers. He stated that they determined this was a stewardship opportunity to do this site, along with the Acme Brick site. He stated that this site is going to bring 100,000 new visitors to this area per year. He stated that retail likes those types of numbers. He stated that the Public Health Building is not the typical anchor, but it is going to drive traffic. Mr. Williams also spoke about the moving of the Fire Station building and in its place the building of high parapet office/retail. Director Moncrief expressed appreciation on behalf of the Board of Driectors to the Staubach Company for the part they played in this project, the Acme Brick project and looking globally at the City of Fort Worth in all areas, i.e., north, south, east and west. He stated this is exciting to see this energy injected into southeast Fort Worth. He felt it was just the beginning of what is going to come to Fort Worth. President Davis opened the floor for a motion. MOTION: Upon a motion made by Director Hicks and seconded by Director Burdette, the Corporation Board voted eight (8) "ayes" and no (0) "nays", to approve the execution of the Master Developer Agreement with Cypress Equities for the Evans-Rosedale Redevelopment Area. The motion carried. Executive Session (Agenda Item IV) President Davis passed over the Executive Session agenda item. Adiourn (Agenda Item V) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 1, 2007 Page 7 With no further business before the Board, President Davis adjourned the called— special session of the Fort Worth Local Development Corporation at 12:52 p.m. on Tuesday, May 1, 2007. These minutes approved by the Fort Worth Local Development Corporation on the 31 st day of Jam, 2007. APPROVED: l ( Y11 1 Wendy R. Davis, esident ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: Marty Hendrix, C/MMC City Secretary