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Home My WebLink About2012/01/10-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JANUARY 10, 2012 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss Director Betsy Price (Arrived at 2:37 p.m.) Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Dennis Shingleton Director Joel Burns Absent: Director Salvador Espino City staff: Fernando Costa, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Assistant General Manager Other staff: Cynthia Garcia, Administrator Robert Sturns, Economic Development Manager, Housing & Economic Development Dept. Robin Bentley, Community Development Manager, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Economic Development Dept. LeAnn Guzman, Senior Assistant City Attorney 1. Call to Order. With a quorum present, President Hicks called the meeting to order for the Board of Directors of the Fort Worth Housing Finance Corporation (Corporation) at 2:35 p.m. on Tuesday, January 10, 2012, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Director Betsy Price temporarily absent and Director Salvador Espino absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE 2 2. Approval of Minutes of the October 4, 2011, Meeting. President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, October 4, 2011, meeting. MOTION: Upon a motion made by Vice President Scarth and seconded by Director Zimmerman, the Board of Directors voted unanimously seven (7) "ayes" and zero (0) "nays ", with Directors Price and Espino absent, to approve the Tuesday, October 4, 2011, minutes of the Corporation as presented. The motion carried. 3a. Written Reports: Fort Worth Housing Finance Corporation Financial Report through November 30, 2011. President Hicks referenced the Financial Report through November 30, 2011, and opened the floor for discussion on the report. There was no discussion on this agenda item. The written report was provided to the Board as a matter of information. There was no formal action taken on the report. (Director Price assumed her place at the table.) 4. Consider and Adopt Resolution Approving a Contract with the Fort Worth Housing Authority for $200,000.00 to Create a Development Plan for the J.A. Cavile Place Apartments and the Cavile Place Neighborhood. Mr. Jay Chapa, Assistant General Manager, Fort Worth Housing Finance Corporation (Corporation), addressed the Corporation regarding the proposed resolution. He advised that Ms. Barbara Holston, President and Chief Executive Officer, Fort Worth Housing Authority (FWHA), and Mr. Ramon Guajardo who served as a consultant with the FWHA on development issues, were also present. Mr. Chapa began his PowerPoint presentation by displaying two (2) aerial maps that reflected the location of the Cavile area and explained that the property was in Southeast Fort Worth in District 5, just south of Rosedale. He advised that the red box on the map was the location of the Cavile Place Apartments and the larger blue box was the study area that staff was including in the overall redevelopment of the area that was bounded by Old Handley on the north, Edgewood on the west, Stalcup on the east and Ramey on the south. He then provided information on the history for this redevelopment as follows: • FWHA and City have had several discussions over several years regarding the potential dispersion of the public housing units. • In February 2011, the Corporation was provided information on the FWHA's request to partner with the Corporation to develop a revitalization plan for the Cavile Place neighborhood in an effort to apply for future grants such as HOPE VI and Choice Neighborhoods. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE (Item 4 — Continued) • FWHA and City staff developed a Request for Qualifications (RFQ) seeking consulting services to create the plan. Mr. Chapa explained that the RFQ was issued in the Fall of 2011 and had 13 respondents who were all national firms with a lot of experience. He advised the Corporation with information on the consultant as reflected below: • Four finalists interviewed by a panel from pool of firms that responded. • Gilmore Kean, LLC, was selected. • Consultant Team Members: • Gilmore Kean — lead consultants • Freese and Nichols • The Catlyst Group • Open Channels Group • Duvernay & Brooks • Edgemere Consulting Corp. • Campus + Community Strategies Mr. Chapa then provided the following information on the services to be performed: • Inventory and Analysis. • Data Collection, Site Visits, Interviews, Market Analysis • Analysis of Issues, Problems, Needs and Opportunities • Revitalization/Transformation Plan. • Vision Workshop • Preliminary and Final Plan • Housing • Economic Development • Community Facilities • Recreation and Open Spaces • Transportation • Infrastructure • Implementation Strategy • Public Engagement throughout the entire process. • Timeline — approximately 9 to 12 months to complete. • Cost - $399,996.00. • Assistance with grant application submittals additional. Mr. Chapa concluded his presentation with the following recommendation from staff: • FWHA and Corporation partner in sharing the cost of the development of the plan with the FWHA serving as the contracting agency and manager. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE 4 (Item 4 — Continued) • Staff recommends that the Board approve entering into a contract with FWHA to provide up to $200,000.00 for the development of a revitalization plan of the J.A. Cavile Place Apartments and the surrounding Cavile Place Neighborhood. • FWHA will expend a minimum of $200,000.00 for the consultant services plus any costs over $400,000.00 in total that may be incurred. Mr. Chapa advised the Board that the Corporation was involved in this issue for two reasons. First, staff saw the Corporation being used as the main vehicle for redevelopment of this area and second, that the Corporation and the City, through tax - foreclosed properties, owned a significant amount of properties in the study area. President Hicks opened for the floor for discussion on this issue. Director Moss emphasized that 45 percent of the area was vacant land and that did not account for the other properties in the area. He added that even though there was talk about looking at the boarded up revitalization of Cavile Place, the overall community needed to be revitalized as 45 percent of the vacant land was non - producing. He pointed out that there was a lot going on in that community and the Corporation needed to look at how to tap into that development and that is why the redevelopment plan was so critical. Mr. Chapa stated that the plan would provide a roadmap for the redevelopment. He pointed out that the City and /or the Corporation owned 117 individual properties in the study area. Ms. Barbara Holstein, President and CEO, FWHA stated that the Housing Authority was very excited about this redevelopment and that for many years the issue was how to pay for this study so the plan could be created. She added what was being stressed was housing, people, and neighborhood to make change in this neighborhood. She pointed out that they wanted respondents to the RFQ to have a proven success with developing viable plans, but also how to access funding to implement the plan. President Hicks stated that this was very exciting and important and pointed out that Director Moss had worked on this issue for a long time. Director Moss stated that the overall concept was to develop a mixed- income neighborhood rather than just a low - income neighborhood which was critical to improving the area. There being no further discussion, President Hicks opened the floor for a motion. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE 5 (Item 4 — Continued) MOTION: Upon a motion made by Director Moss and seconded by Director Shingleton, the Board voted unanimously eight (8) "ayes" and zero (0) "nays ", with Director Espino absent, to approve Resolution No. FWHFC 2012 -01. The motion carried. 5. Consider and Adopt Resolution Amending the 2011 -2012 Budget to Add Funds for Personnel Costs to Manage Corporation Projects. Mr. Jay Chapa, Assistant General Manager of the Corporation, addressed the Board regarding the proposed resolution. Mr. Chapa advised that staff was requesting the Board's approval for additional funds to cover staffing costs associated with managing the Corporation's low income tax credit projects. Using a PowerPoint presentation, Mr. Chapa explained the Corporation's Adopted Budget as follows: Revenues Interest on Investments $80,000.00 Program Income Principal Loan $750.00 Land /Home Sales $182,000.00 Gas Lease /Royalties $8,000.00 Miscellaneous Revenue $10,000.00 TOTAL REVENUE $280,750.00 Expenditures Salaries & Benefits $26,924.00 Other Expenses: Office Supplies $1,500.00 Postage $700.00 Conference & Seminars $3,000.00 Engineering Services $500.00 Electricity $3,000.00 Water & Waste Disposal $1,600.00 Dues & Memberships $2,250.00 Contractual Services $15,000.00 D &O Liability Insurance $2,050.00 Mowing HFC Properties $30,745.00 Audit Fees (VOE) $9,500.00 Security Systems (HFC Houses) $4,000.00 Land Purchases $30,000.00 Other Expenses Subtotal $103,845.00 TOTAL EXPENDITURES $130,769.00 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) $149,981.00 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE 6 (Item 5 — Continued) Mr. Chapa transitioned to the next slide that pertained to Corporation's low income housing tax credit projects, and advised the Board of the following: • $26,924.00 appropriated for salaries in the adopted budget. • Corporation has two (2) low income housing tax credit projects under construction. • Race Street Lofts • Terrell Homes I • Corporation will receive a minimum of $1,413,400.00 as Owner and Developer of the tax credit projects. • $449,650.00 received in 2011. • $963,750.00 within the next five (5) years. Mr. Chapa then displayed two (2) slides showing pictures of the Race Street Lofts construction and then for the Terrell Homes I construction. He advised that the Race Street Lofts should be completed by August 2012 and the Terrell Homes I project had just begun construction. He concluded his presentation with the following recommendation by staff: • Staff recommends increasing the amount appropriated for salaries by $82,609.16 to cover a staff salary to manage these Corporation projects. • Funds to be spread across six (6) positions needed to manage these projects: • Project management • Construction inspection • Operational compliance • Administrative services President Hicks opened for the floor for discussion on this issue. There being no discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Jordan and seconded by Director Moss, the Board voted unanimously eight (8) "ayes" and zero (0) "nays ", with Director Espino absent, to approve Resolution No. FWHFC 2012 -02. The motion carried. 6. Executive Session. President Hicks stated that she had been advised that an Executive Session was not necessary to discuss the following items: A. Seek the advice of its attorneys concerning the following 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: (1) legal issues concerning any current agenda item; CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED - SPECIAL SESSION TUESDAY, JANUARY 10, 2012 PAGE 7 (Item 6 — Continued) 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 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. This agenda item was passed over. 7. Requests for Future Agenda Items. President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. 8. Adjourn. With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 2:50 p.m. on Tuesday, January 10, 2012. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 7th day of February, 2012. APPROVED: �k 4q o Kathleen Hicks President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ronald P. Gonlales, TRMCCMC Assistant City Secretary