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Home My WebLink About2008/06/10-Minutes-Fort Worth Local Development Corporation (FWLDC) FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Present: President Jungus Jordan Vice President Chuck Silcox Secretary Carter Burdette Treasurer Salvador Espino Director Mike Moncrief Director Danny Scarth Director Frank Moss (arrived at 3:05 p.m.) Director Kathleen Hicks Director Joel Burns (arrived at 3:05 p.m.) City staff: Tom Higgins, Assistant City Manager David Yett, City Attorney Peter Vaky, Senior Assistant City Attorney Marty Hendrix, City Secretary Jay Chapa, Director of Economic and Community Development Department Cynthia Garcia, Community Development Manager, Economic and Community Development Department Henry Day, Senior Management Analyst, Economic and Community Development Department Ossana Hermosillo, Business Development Coordinator, Economic & Community Development Department 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 3:01 p.m. on Tuesday, June 10, 2008, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas, with Directors Moss and Burns temporarily absent. Approval of Minutes from Meetings held on May 6, 2008; May 20, 2008, and May 27, 2008 (Agenda Item 2) President Jordan opened the floor for a motion on the minutes. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY,JUNE 10, 2008 Page 2 Approval of Minutes from Meetings held on May 6, 2008; May 20, 2008, and May 27, 2008 (Cont.) (Agenda Item 2) MOTION: Upon a motion made by Director Silcox and seconded by Director Moncrief, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously seven (7) "ayes" and zero (0) "nays", with Directors Moss and Burns temporarily absent, to approve the minutes of the May 6, 2008, May 20, 2008 and May 27, 2008, meetings of the Fort Worth Local Development Corporation. The motion carried. Consideration of Financial Report (Agenda Item 3) 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 April 30, 2008, for the Corporation(unaudited) as follows: Assets Cash and Cash Equivalents $1,239,111.18 Interest Receivable $4,279.42 Accounts Receivable (1) $366,858.13 Total Assets 1.620.248.73 Liabilities and Fund Balance Accounts and Contracts Payable 0.00 Total Liabilities 0.00 Fund Balance (Deficit) Designated for Authorized Expenditures $1,610,248.73 Undesignated 0.00 Total Fund Balance $1,610,248.73 Total Liabilities and Fund Balance 1.610.248.73 The Balance Sheet noted that all accounts receivable are from American Ironhorse Motorcvcle Company. Inc. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 3 Consideration of Financial Report(Cont.) (Agenda Item 3) Mr. Day continued his review with the Statement of Revenues and Expenditures from October 1, 2007, through April 30, 2008 (unaudited), for the Corporation as follows: Revenues Property Tax Reimbursement $132,318.87 Revenue from Rents $329,240.60 Sale of Property 0.00 Interest Income $34,143.04 Change in Fair Value of Investments 0.00 Other Revenue 0.00 Total Revenue $495,702.51 Expenditures Bank Charges $13.04 Contractual Services $51,389.00 Property Management $12,593.63 Property Purchase $81,032.37 Property Taxes $136,386.10 Repairs $17,739.20 Storm Water Utility $12,265.50 Transfers to City of Fort Worth $162,000.00 Total Expenditures $73,418.84 Excess (Deficiency) of Revenues Over (Under) Expenditures S22,Z83.67 Mr. Day reviewed the Schedule of Available Funds dated April 30, 2008 (unaudited), for the Corporation as follows: Total Cash at October 31, 2007 $1,239,111.18 Cash in Property Management Account ($29,842.44) Cash Available in City account $1,209,268.74 Commitments Cypress, Approved May 1, 2007 $150,000.00 Demolition of 1009 Evans $20,503.40 FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10,2008 Page 4 Consideration of Financial Report(Cont.) (Agenda Item 3) Reserves Maintenance Reserve $100,000.00 Property Tax Reserve $100,000.00 Total Commitments & Reserves $370,503.40 Unrestricted Cash Available $838,765.34 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 April 30, 2008, (unaudited) as follows: 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 47,1 43.04 $7,143.04 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 $747,743.51 ($11,668.93) 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 22,000.53 $575.97 Property Purchase 63,000.00 101,532.37 ($38,532.37) Property Taxes 155,000.00 136,386.10 $18,613.90 Repairs 25,000.00 22,739.20 $2.260.80 Storm Water Utility 21,145.50 21,145.50 $0.00 FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED— SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 5 Consideration of Financial Report (Cont.) (Agenda Item 3) Transfers to City of Fort Worth* 0.00 $162,000.00 ($162,000.00 Total Expenditures $496,822.00 $667,255.74 ($170,241.99) Excess (Deficiency) of Revenues Over(Under) Expenditures $496,822.44 $667,255.74. ($182.102.67) *Approved in the December 4, 2007, Board meeting. Mr. Day concluded his presentation. President Jordan opened the floor for discussion and/or comments 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 nine (9) "ayes" and zero (0) "nays", to acknowledge receipt and file the financial reports as presented. The motion carried. (Directors Moss and Burns arrived at the meeting.) Discussion and Consideration of a Resolution Authorizing a Parking Lease Agreement with Pneumatic Technology, Inc., for a Portion of the Property Located at 4600 Blue Mound Road (Agenda Item 4) Cynthia Garcia, Community Development Manager, Economic and Community Development Department, with the City of Fort Worth, spoke before the Directors on the proposed resolution for authorizing a parking lease agreement with Pneumatic Technology, Inc., for a portion of the property located at 4600 Blue Mound Road to be used as a parking lot for large trailers. Mrs. Garcia reviewed a location map showing the property at 4600 Blue Mound Road, at the corner of Meacham Boulevard and Blue Mound Road. She then provided an aerial photograph of this area showing the relationship of the property's location to Northeast Loop 820 and IH35W. The next aerial photograph showed a close-in view of the property of the proposed parking lot lease area. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 6 Discussion and Consideration of a Resolution Authorizing a Parking Lease Agreement with Pneumatic Technology, Inc., for a Portion of the Property Located at 4600 Blue Mound Road (Cont.) (Agenda Item 4) Mrs. Garcia reviewed the least terms as follows: ■ 12 month lease ■ $2,500 per month ■ Parking lease only o Clean and empty trailers ■ Tenant, at its own expense, shall: • Improve the fencing • Expand gate area Mrs. Garcia presented a picture of a large storage trailer that would be parked in the lot. Mrs. Garcia concluded her presentation. President Jordan opened the floor for discussion. He requested clarification on what type of service or business the subject company provided. Mrs. Garcia explained that the company only wanted to use the parking lot area for parking these large storage trailers and the trailers would be clean and empty of any product. She also advised that no dumping would be allowed on the property. Director Espino advised of the revenue that the LDC would receive for the lease at $2,500 per month. He pointed out that there had been no objections from the surrounding areas and he was in support of the lease agreement. Director Moncrief requested clarification as to where the trailers would be drained and cleaned. Mrs. Garcia stated that they would be cleaned and drained at another location. He requested that in the lease document that a statement be added that the lessee certified that no materials would be dumped on the property or cleaning of the trailers would be done on the property. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED— SPECIAL SESSION MINUTES TUESDAY,JUNE 10, 2008 Page 7 Discussion and Consideration of a Resolution Authorizing a Parking Lease Agreement with Pneumatic Technology, Inc., for a Portion of the Property Located at 4600 Blue Mound Road (Cont.) (Agenda Item 4) MOTION: Upon a motion made by Director Espino and seconded by Director Hicks, the Board of Directors of the Fort Worth Local Development Corporation voted unanimously nine (9) "ayes" and zero (0) "nays", to approve Resolution No. FWLDC 2008-05 authorizing a lease of a portion of the property located at 4600 Blue Mound Road to Pneumatic Technology, Inc., for use as a parking lot for trailer parking and to approve the Lease Agreement No. FWLDC-02-2008 with Penumatic Technology, Inc. The motion carried. Discussion and Consideration of a Resolution Authorizing a Lease Agreement with American IronHorse Motorcycle Company for a Portion of the Property Located at 4600 Blue Mound Road (Agenda Item 5) Cynthia Garcia, Community Development Manager, Economic and Community Development Department, with the City of Fort Worth, spoke before the Directors on the agenda item. Mrs. Garcia used the aerial map of the location of the property at 4600 Blue Mound Road. She advised that the current tenant, American IronHorse Motorcycle Company, wanted to lease a portion of the property in order to sell off their current inventory. She reminded the Directors that American IronHorse filed for bankruptcy and that they have a lot of inventory left in the building. She stated that they have requested a two-month lease to sell the inventory. She added that the lease amount would be $1.25 per square foot and the lease agreement would be only until July 31, 2008. She added that everything should be sold by that time and they will then vacate the rest of the building. Mrs. Garcia concluded her presentation. President Jordan opened the floor for discussion and/or comments. There was no discussion. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 8 Discussion and Consideration of a Resolution Authorizing a Lease Agreement with American IronHorse Motorcycle Company for a Portion of the Property Located at 4600 Blue Mound Road (Cont.) (Agenda Item 5) MOTION: Upon a motion made by Director Espino 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 approved Resolution No. FWLDC-2008-06 authorizing a lease agreement with American IronHorse Motorcycle Company, Inc., and to approve Lease Agreement No. FWLDC-03- 2008 for a two-month lease in order that American IronHorse could sell off their inventory. The motion carried. Discussion and Consideration of a Resolution Authorizing a Loan Agreement with Tax Increment Reinvestment Zone #13, City of Fort Worth, Texas (Woodhaven TIF) (Agenda Item 6) Ossana Hermosillo, Business Development Coordinator, with the Economic and Community Development Department, City of Fort Worth, spoke before the Directors on the proposed resolution authorizing a loan agreement with Tax Increment Reinvestment Zone No. 13, known as the Woodhaven Tax Increment Financing District (TIF). Using a PowerPoint Presentation, Ms. Hermosillo presented the following information. She presented the background on the TIF as follows: • In 2005, City selected the Architect Firm of Gideon Toal to prepare a neighborhood redevelopment plan for the Woodhaven area in east Fort Worth. • Plan was created to show how the Woodhaven area could potentially be developed. • This plan did not study market feasibility for any type of redevelopment. • City purchased and demolished two dilapidated apartment communities. Ms. Hermosillo presented a slide showing pictures in the Woodhaven area and also showing the boundary map of the Woodhaven TIF. Ms. Hermosillo provided information on the request for funding for a market feasibility study as follows: FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY,JUNE 10, 2008 Page 9 Discussion and Consideration of a Resolution Authorizing a Loan Agreement with Tax Increment Reinvestment Zone #13, City of Fort Worth, Texas (Woodhaven TIF) (Cont.) (Agenda Item 6) • Initial TIF revenues not available until April 2009. • Estimated cost of feasibility study - $100,000.00 • LDC fund study with loan to TIF 13 (Woodhaven) • Loan payback period of 5 years, with 6% interest. She then presented the information on the market feasibility study and implementation plan as follows: ■ Study to determine the potential markets for redevelopment of the area. ■ Establish the appropriate mix of residential, retail, office, entertainment, etc,......based on the market study. ■ Use study findings as marketing tool to attract developers and investment capital. ■ Use study findings to maximize use of the TIF District and other available incentives to ensure success. Ms. Hermosillo provided the following timeline process for this loan agreement: • LDC loan approval—June 10, 2008. • Issue Request for Proposal (RFP)—June 13, 2008. • Council approval of project and financing plan—June 17, 2008. • RFP submittal deadline—July 25, 2008. • TIF board meeting for loan agreement approval—August—TBD She presented the next steps in the process as: • TIF board approves/enters into loan agreement with the LDC for repayment. • TIF board approves contract with selected consultant to undertake study. Ms. Hermosillo concluded her presentation. President Jordan opened the floor for discussion and/or comments. FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY,JUNE 10, 2008 Page 10 Discussion and Consideration of a Resolution Authorizing a Loan Agreement with Tax Increment Reinvestment Zone #13, City of Fort Worth, Texas (Woodhaven TIF) (Cont.) (Agenda Item 6) Director Scarth indicated that this idea really came from the members of the TIF Board in order to assist with analyzing various projects and also to help with attracting additional capital into development. He added that it really gave them the opportunity to do more of a scientific version of a "what if' scenario, i.e., if a certain project was built what type of retail would that attract, etc. He reiterated the need for further information in order to make the right development decisions. Director Hicks requested clarification on the status of a study that had been requested by State Representative Dr. Michael Burgess in the south and east portions of Fort Worth. Director Scarth stated that it was the Social Compact Group. Director Hicks indicated that she felt that information would be of great benefit to everyone. Director of Economic and Community Development for the City of Fort Worth, Jay Chapa, spoke before the Board on this topic. He pointed out that the Group was close to having a draft document completed that they will be submitting to the City staff for the City staff s verification of the information and checking their figures. He stated that the target day for this study appeared to be August. Director Moncrief stated that it was an excellent proposal. MOTION: Upon a motion made by Director Scarth 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 Resolution No. FWLDC -2008-07 authorizing a loan to the Woodhaven TIF Fund (Tax Increment Reinvestment Zone Number 13) for the purpose of funding a market research and feasibility study and to approve the Loan Agreement FWLDC-04-2008. The motion carried. Executive Session (Agenda Item 7) Chairman Jordan advised that an Executive Session for the following items would not be necessary. A. Seek the advice of its attorneys concerning legal issues regarding (i) American lronhorse Motorcycle Company, Inc., U.S. Bankruptcy Court Northern District of' FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 11 Executive Session (Cont) (Agenda Item 7) Texas, Fort Worth Division, Case No.: 08-40926 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 551.072 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 be Section 551.087 of the Texas Government Code. Requests for Future Agenda Items (Agenda Item 8) There were no requests for future agenda items. Adiourn (Agenda Item 9) With no further business before the Board, President Jordan adjourned the called — special session of the Fort Worth Local Development Corporation at 3:14 p.m. on Tuesday, June 10, 2008. These minutes approved by the Fort Worth Local Development Corporation on the —10A& day of 0 c�t bbe r' , 2008. APPROVED: Jun s Jor n Pre si ent FORT WORTH LOCAL DEVELOPMENT CORPORATION FORT WORTH, TEXAS CALLED—SPECIAL SESSION MINUTES TUESDAY, JUNE 10, 2008 Page 12 ATTEST: Carter Bur et e,WcCetary Prepared and respectfully submitted by: C" (Ad� ,OCIv, *.1 Marty Hendrix, tR C/MMC City Secretary