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Home My WebLink About2008/05/06-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6,2008 Present: President Jungus Jordan Vice President Chuck Silcox Secretary Carter Burdette Director Mike Moncrief Director Frank Moss Director Kathleen Hicks Director Joel Burns Absent: Treasurer Salvador Espino Director Danny Scarth City staff: Tom Higgins, Assistant City Manager Peter Vaky, Senior Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Economic and Community Development Cynthia Garcia, Community Development Manager, Economic and Community Development Department Henry Day, Senior Management Analyst, Economic and Community Development Department Doug Rademaker, City Engineer Jean Petr, Land Agent, Engineering Department Chris Moseley, Assistant City Attorney Other City staff in attendance included: Dale Fisseler, City Manager Karen Montgomery, Assistant City Manager/Chief Financial Officer Carl Smart, Acting Assistant City Manager Gerald Pruitt, Deputy City Attorney Laetitia Brown, Assistant City Attorney LeAnn Guzman, Assistant City Attorney Ardina Washington, Economic Development Manager, Economic and Community Development Department CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6, 2008 Page 2 Mark Folden, Business Development Coordinator, Economic and Community Development Department Dolores Garza, Economic Development Specialist, Economic and Community Development Department Kirk Slaughter, Director of Public Events Jerome Walker, Director of Housing Karen Meunier, Housing Program Manager, Housing Department Lena Ellis, Finance Director 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 (Corporation) at 1:00 p.m. on Tuesday, May 6, 2008, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. Approval of Minutes from Meeting held on April 1,2008 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. 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 unanimously five (5) "ayes" and zero (0) "nays", with Treasurer Espino and Director Scarth absent and Director Burdette and Moss temporarily absent, to approve the minutes of the April 1, 2008, meeting of the Fort Worth Local Development Corporation. The motion carried. Chairman Jordan adjourned the called — special session into Executive Session at 1:01 p.m. in accordance with the requirements of the Open Meetings Law. Executive Session (Agenda Item 3) In accordance with Chapter 551 of the Texas Government Code, President Jordan and the Directors of the Fort Worth Local Development Corporation convened into Executive Session at 1:01 p.m., on Tuesday, May 6, 2008, in the Pre-Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102, in order to: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6, 2008 Page 3 Executive Session (cont'd) (Agenda Item 3) A. Seek the advice of its attorneys concerning legal issues regarding (i) American Ironhorse Lease Agreement and (ii) gas drilling on the property located at 2851 South Riverside Drive, and (iii) 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 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. Director Burdette had arrived at the meeting. The Executive Session was adjourned by President Jordan at 1:13 p.m. President Jordan reconvened from the Executive Session back into the called — special session at 1:13 p.m., on Tuesday, May 6, 2008, and moved to the next agenda item. Director Moss had arrived at the meeting. Consideration of Financial Report (Agenda Item 4) Henry Day, Senior Management Analyst in the Economic and Community Development Department spoke before the Directors on the various financial reports. Mr. Day presented the Balance Sheet dated March 31, 2008, for the Corporation (unaudited) as follows: Assets Cash and Cash Equivalents $1,190,630.05 Interest Receivable $4,982.43 Accounts Receivable (1) $366,857.44 Total Assets $1 562 469.92 -=3 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6,2008 Page 4 Consideration of Financial Report (cont'd) (Agenda Item 4) Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Total Liabilities 0.00 Fund Balance (Deficit) Designated for Authorized Expenditures $1,562,469.92 Undesignated 0.00 Total Fund Balance $1,562,469.92 Total Liabilities and Fund Balance 1,562,469.92 The Balance Sheet noted that all accounts receivable are from American Ironhorse Motorcycle Company, Inc. Mr. Day continued his review with the Statement of Revenues and Expenditures from October 1, 2007, through March 31, 2008 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $131,545.04 Revenue from Rents $282,206.23 Sale of Property 0.00 Interest Income $30,323.30 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $444,074.57 Expenditures Bank Charges $13.04 Contractual Services $51,389.00 Property Management $10,712.28 Property Purchase $80,990.59 Property Taxes $136,386.10 Repairs $17,589.20 CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6, 2008 Page 5 Consideration of Financial Report(cont'd) (Agenda Item 4) Storm Water Utility $10,489.50 Transfers to City of Fort Worth $162,000.00 Total Expenditures $469,569.71 Excess (Deficiency) of Revenues Over(Under) Expenditures ($25,495.14 Mr. Day reviewed the Schedule of Available Funds dated March 32, 2008 (unaudited), for the Corporation as follows: Total Cash at October 31, 2007 $1,190,630.05 Cash in Property Management Account ($5,842.28) Cash Available in City account $1,184,787.77 Commitments Cypress, Approved May 1, 2007 $150,000.00 Demolition of 1009 Evans $20,503.40 Reserves Maintenance Reserve $100,000.00 Property Tax Reserve $100,000.00 Total Commitments & Reserves $370,503.40 Unrestricted Cash Available $814284.37 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. Mr. Day then reviewed the Fort Worth Local Development Corporation Statement of Budget vs. Re-estimate of March 31. 2008, (unaudited) as follows: CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6,2008 Page 6 Consideration of Financial Report (cont'd) (Agenda Item 4) Revenues Budget Re-estimate Variance Property Tax Reimbursement $155,000.00 $136,188.02 ($18,811.98) Revenue from Rents 564,412.44 564,412.45 $0.01 Sale of Property 0.00 0.00 $0.00 Interest Income 40,000.00 40,923.30 $5,923.30 Change in Fair Value of 0.00 0.00 0.00 Investments Other Revenue 0.00 0.00 0.00 Total Revenue $759,412.44 $746,523.77 ($12,888.67) Expenditures Bank Charges $100.00 $63.04 $36.96 Contractual Services $210,000.00 201,389.00 $8,611.00 Property Management 22,576.50 22,000.55 $575.94 Property Purchase 63,000.00 101,490.59 ($38,490.59) Property Taxes 155,000.00 136,386.10 $18,613.90 Repairs 25,000.00 22,589.20 $2,410.80 Storm Water Utility 21,145.50 21,145.50 $0.00 Transfers to City of Fort Worth* 0.00 $162,000.00 ($162,000.00) Total Expenditures $496,822.00 $667,063.99 $170,241.99 Excess (Deficiency) of Revenues Over(Under) Expenditures $262,590.44 79 459.78 ($183,130.66) *Approved in the December 4, 2007, Board meeting. Mr. Day concluded his presentation. President Jordan opened the floor for discussion on these reports. There was no discussion. 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 unanimously seven (7) "ayes" and zero (0) "nays", with Treasurer Espino and CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6,2008 Page 7 Director Scarth absent, to acknowledge receipt and file the financial reports as presented. The motion carried. Discussion and Consideration of a Gas Drilling Lease for the Property Located at 2851 South Riverside Drive (Agenda Item 5) Mr. Doug Rademaker, City Engineer for the City of Fort Worth, spoke before the Corporation on consideration of a gas drilling lease on property located at 2851 South Riverside Drive. He advised that this property was the site of the old Oakbrook Mall property, which consisted of 21.5 acres that are owned by the Corporation at that location. He advised that one of the most recent offers for a gas drilling lease on the subject property was $12,000 an acre, with a 26 percent royalty, with a two-year term. However, Mr. Rademaker stated that a better offer had been reached. He also indicated that when this item was discussed with the Corporation approximately one month ago, the Corporation had requested additional information. Mr. Rademaker reviewed the drilling sites on an aerial map. He referred to the sites as the Masonic site and Morrison site. He explained where the lateral lines would be placed. Mr. Rademaker identified a piece of property that was in tax foreclosure near one of these locations. He advised of keeping that property as a separate package and the need to defer discussion on the issue of acquiring tax foreclosed properties, along with the issue of the associated mineral rights, with the Corporation until a future meeting. Mr. Rademaker advised that the new terms of the gas drilling lease were $15,000 an acre, with 26 percent royalty and with a two-year term. He also advised that there would be no surface use on the property; the standard lease forms as provided by the City of Fort Worth would be utilized and all of the requirements of the City of Fort Worth's gas drilling ordinance would be adhered to. Director Burdette requested further clarification on the issue of the tax foreclosed piece of property and that the lateral gas drilling line would not be installed until the Corporation had approved that decision. Mr. Rademaker indicated that statement was correct. Director Hicks provided additional information on the issue of the tax foreclosed properties that are located in this area and advised that at a future time, the Corporation Board needed to make a decision on this issue and whether to move forward with the purchase of those properties. She suggested that the Cits of Fort 'forth look at creating a cite-%%ide police to CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED— SPECIAL SESSION MINUTES TUESDAY, MAY 6, 2008 Page 8 Discussion and Consideration of a Gas Drilling Lease for the Property Located at 2851 South Riverside Drive (cont'd) (Agenda Item 5) address the issue of tax foreclosed properties. She indicated that piece was very important as the Corporation moved forward with gas drilling in this area. MOTION: Upon a motion made by Director Hicks and seconded by Director Burdette, the Fort Worth Local Development Corporation voted unanimously seven (7) "ayes" to zero (0) "nays", with Treasurer Espino and Director Scarth absent, to authorize the gas drilling lease for 2851 South Riverside as recommended. The motion carried. Assistant City Manager Tom Higgins pointed out that this was an additional $325,000 that would be going to the Corporation. He advised that last year the Corporation approved the sale of this land for development, but retained the mineral rights. He emphasized that the Corporation had made a good investment in this property. Requests for Future A$Zenda Items (Agenda Item 6) There were no requests for future agenda items. Adiourn (Agenda Item 7) With no further business before the Board, President Jordan adjourned the called — special session of the Fort Worth Local Development Corporation at 1:22 p.m. on Tuesday, May 6, 2008. These minutes approved by the Fort Worth Local Development Corporation on the 10th day of June, 2008. APPROVED: Jun- s Jor Pre. dent CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, MAY 6, 2008 Page 9 ATTEST: Carter Burdette, Secretary Prepared and respectfully submitted by: f)-N\ w�t � Marty Hendrix, C/MMC City Secretary