Loading...
HomeMy WebLinkAbout2011/05/03-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss Director Mike Moncrief Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Carter Burdette Director Joel Burns Absent: Director Salvador Espino City staff: Susan Alanis, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Assistant General Manager Jean Petr, Gas Lease Program Manager Robin Bentley, Acting Housing Program Manager Other staff: Cynthia Garcia, Assistant Director, Housing & Economic Development Department Robert Sturns, Economic Development Manager, Housing & Economic Development Dept. Leann Guzman, Assistant City Attorney Ryan Haden, Development Project Coordinator, Housing & Economic Development Dept. Avis Chaisson, Development Project Coordinator, Housing & Economic Development Dept. Fabiola Suarez, Economic Development Specialist, Housing & Economic Development Dept. Ana Alvarez, Economic Development Specialist, Housing & Economic Development Dept. Call to Order (Agenda Item 1) 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 2:31 p.m. on Tuesday, May 3, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Director Espino absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 2 Approval of Minutes of the April 5, 2011, Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, April 5, 2011, meeting. MOTION: Upon a motion made by Director Jordan and seconded by Director Moss, the Board of Directors voted eight (8) "ayes" and zero (0) "nays ", with Director Espino absent, to approve the Tuesday, April 5, 2011, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through March 31, 2011 (Agenda Item 3A) President Hicks referenced the Financial Report through March 31, 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. Executive Session (Agenda Item 4) 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: (i) legal issues concerning any current agenda item; 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. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 3 Adopt Resolution Approving a Pipeline License Agreement with Texas Midstream Gas Services, LLC, for 4600 East Berry (Agenda Item 5) Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint Presentation, Ms. Petr began her presentation, entitled East Berry Street Pipeline (Cowboys of Color Well to Mount Tabor Well), by advising the Corporation that there was a pipeline that would be going along the south side of East Berry in the general area between IH 287 and IH 820. She added that the natural gas pipeline had been requested by Texas Midstream Gas Services, LLC. Ms. Petr displayed an aerial view of the location and outlined the location of Fort Worth Housing Finance Corporation (HFC) properties and the Villas of Eastwood Terrace property and added that the pipeline would go between the Mount Tabor well and the Cowboys of Color well to the west. She advised of the following plan for the pipeline: • Open cut installation. o Includes drill bore entry point location for properties to the east. • Standard license agreement. • Payment of $64,162.00. • $17,222.00 License area. • $46,940.00 Temporary Workspace (Staging for bore) • Twenty (20) year term (for the licensed area). Ms. Petr then displayed a slide that depicted the location of the well site in relation to the HFC property on the south side of East Berry and added that the entry bore, which was reflected by a blue box, would be to the east of the HFC property. She completed her presentation with the following recommendation of staff: • Recommend approval of Cowboys of Color pipeline across property. • Recommend approval of temporary workspace for initial construction. President Hicks opened the floor for discussion on this issue. Director Moss asked Ms. Petr to verify if Texas Midstream changed the location of the site as he thought they actually wanted to be on the other side of the street. Ms. Petr advised that the HFC owned quite a few lots on Eastcrest and when Texas Midstream initially wanted to go on the north side they would have had a large bore head on one of the lots which would have prevented any development of that property. She added that discussions of this site had been CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 4 Adopt Resolution Approving a Pipeline License Agreement with Texas Midstream Gas Services, LLC, for 4600 East Berry (cont'd) (Agenda Item 5) on -going for a few years and at the time that Texas Midstream began talking with staff on this site, there was actually plans to begin building homes on the Eastcrest property and staff did not want to impact it in a negative way that it could not be developed in the future. Director Moss stated that he also knew of another problem with a lot across the street on the northwest corner where the pipeline was almost going to be located near a house. Ms. Petr stated that staff was very concerned with the proximity of homes that were either built or planned to be built so staff recommended that Texas Midstream move to the south side of the street to have less of an impact on the inhabited homes. Senior Assistant City Attorney Vicki Ganske advised the Corporation that there was a potential sale by the Corporation of the property and in negotiations with the potential buyer there were some questions about the staging area. She added that the resolution did not include that information, but that it did include the term "...on such other terms and conditions as are acceptable to the Corporation's general counsel." Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, clarified that staff was requesting the Corporation approve the resolution subject to the staging area to make sure the sale went through properly. Ms. Petr added that it was her understanding in discussions with Texas Midstream that they would begin construction in July - August of 2011 and be completed within several months. She pointed out that Texas Midstream would restore the property to its original or better condition upon completion of construction. Director Moncrief inquired if staff's recommendation was to approve the resolution as presented subject to some conditions. Ms. Garcia concurred and added that staff did not want to jeopardize any negotiations between either party. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Moss and seconded by Director Moncrief, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Fspino absent, to approve Resolution No. FWHFC 2011-08. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 5 Adopt Resolution Authorizing the Sale of Residential Properties Owned by the Corporation (Agenda Item 6) Ms. Robin Bentley, Acting Housing Program Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, she presented the following information on HFC Property Holdings: • 80+ properties. • Most properties are vacant lots. • 5 single family homes o 1325 New York o 3100 and 3108 Eastcrest o 4525 Trueland o 2912 Walker Ms. Bentley provided information on the current status of the properties as follows: • Four (4) of the five (5) homes have been listed with Mel Harris of Elements Realty. • Each house is listed for appraised value. • Buyers are required to participate in the City's Housing Assistance Program (HAP) Ms. Bentley advised that staff s recommendation was that the Corporation authorize the staff to list the residential properties for their appraised value and sell them for a negotiated price. President Hicks opened the floor for discussion on this issue. President Hicks stated that most of the properties were vacant and inquired if the ones specifically listed above were new construction. Ms. Bentley responding affirmatively and added that most of the 80 properties were just lots, but that there had been construction of five (5) homes. President Hicks stated that she would like to see what the property at 1325 New York looked like and who built the structure. Mr. Jay Chapa, Director, Housing and Economic Development Department, stated that most of the properties were properties that the HFC accepted which the City acquired through foreclosure because of Community Housing Development Organization (CHDO) issues. He added that the HFC took over the houses and actually rehabilitated them to make them sellable. He clarifed that the properties on Truelove and Walker were also CHDO properties and the Eastcrest properties were HFC - developed homes which had been marketed by City staff previously. He pointed out that these properties were incurring monthly costs to the HFC due to maintenance costs, mowing, upkeep and vandalism. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 6 Adopt Resolution Authorizing the Sale of Residential Properties Owned by the Corporation (cont'd) (Agenda Item 6) (Director Burns left the meeting and did not return.) Director Burdette noted that on page two (2) of resolution it stated that the sale of the properties would be "...for a negotiated price plus the payment of closing costs in an amount not to exceed $4,000.00 for each sale." He stated he presumed that meant the $4,000.00 pertained to the closing costs and not the total sale of the home. Mr. Chapa concurred. President Hicks inquired if some of the properties had to be sold at a loss, like the property on Eastcrest and asked how much of a loss was experienced. Mr. Chapa confirmed that some of the homes had to be sold at a loss and stated that the Eastcrest house was appraised in the $70,000.00 range, but the HFC had spent approximately $120,000.00 to $130,000.00. He added that the properties would be listed for the appraised value and staff would negotiate down if the homes had been vandalized or if the homes were missing appliances. Director Moss inquired if the properties were available for open sale and would be marketed by a realtor. Mr. Chapa concurred. President Hicks stated that this was an example of a learning experience to ensure that the HFC was building the right product in the right neighborhood to ensure a sale. She added that the Eastcrest neighborhood was a beautiful neighborhood and she was surprised that the properties did not sell. Director Moss pointed out that when these homes were built, the contractor was informed they would have a problem selling the properties because of the price and the amenities not inside the home. He added that it was also explained to the previous staff at that time but the homes were built anyway. He pointed out that building homes without the basic requirements, two (2) living areas, etc., would not sell. Director Scarth stated that the Corporation needed to move forward with this to remove the properties from the HFC inventory. He added that essentially the Corporation was engaging in the same process as Terrell Heights in building properties and probably selling them at a loss to create a market. President Hicks stated that she did not know what homes in Terrell Heights would sell at a loss when they were eventually sold in 15 years. She added that by then she hoped the prices would have gone up and that it was not a given that the homes would be sold at a loss. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 7 Adopt Resolution Authorizing the Sale of Residential Properties Owned by the Corporation (cont'd) (Agenda Item 6) Mr. Chapa clarified that the sale of the properties was open to affordable buyers. The buyers had to be in the 80 percent or less of the area median income. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Moncrief and seconded by Director Moss, the Board voted seven (7) "ayes" and zero (0) "nays ", with Directors Espino and Burns absent, to approve Resolution No. FWHFC 2011 -09. The motion carried. Adopt Resolution Authorizing the Acquisition of Land for the Race Street Lofts Located at 2817 Race Street and Entering into a Ninety -Nine Year Ground Lease with Race Street Lofts, Ltd.; and Authorizing a Development Agreement with NRP Holdings, LLC, to Act as Co- Developer of the Property (Agenda Item 7) Mr. Jay Chapa, Assistant General Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. He stated that this resolution and the next resolution were somewhat of housekeeping items associated with the Race Street project in conjunction with NRP Holdings, LLC, and the tax credits. He added staff was basically seeking the Corporation's approval to have the Corporation acquire the land and then turn around and provide the ground lease to the partnership between the HFC and NRP to own and control the property and the development. He further stated it authorized a 99 -year lease and then also authorized a development agreement with NRP Holdings, LLC, on the overall deal. He stated that staff was seeking the Corporation's approval to move forward with this issue and authorize Tom Higgins as General Manager of the Corporation and himself as Assistant General Manager of the Corporation to be able to sign all the documents associated with these actions. President Hicks opened 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 Moss and seconded by Director Jordan, the Board voted seven (7) "ayes" and zero (0) "nays ", with Directors Espino and Burns absent, to approve Resolution No. FWHFC 201 1 -10. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 8 Adopt Resolution Approving Actions of the Corporation as Sole Member of Race Street Lofts, GP, LLC, the General Partner of Race Street Lofts, Ltd.; Approving All Actions by the Corporation, General Partner or the Partnership Necessary for the Acquisition, Financing and Development of the Race Street Lofts, and Ratifying All Acts Previously Taken by the Corporation, the General Partner or the Partnership in Connection with the Proiect (Agenda Item 8) Mr. Jay Chapa, Assistant General Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. He advised that this was the other housekeeping resolution noted in his previous presentation. He stated that some of this resolution was ratifying some of the actions that were previously taken. He added that it would also authorize Tom Higgins and himself to sign all the associated documents and to be able to close on the property and tax credits. President Hicks opened 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 Moss and seconded by Director Scarth, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Espino absent, to approve Resolution No. FWHFC 2011 -11. The motion carried. Requests for Future Agenda Items (Agenda Item 9) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adjourn (Agenda Item 10) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 2:47 p.m. on Tuesday, May 3, 2011. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 7"' _ day of June , 2011. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, MAY 3, 2011 PAGE 9 APPROVED: Kathleen Hicks( President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ronald P. Gonzales, Tw /CMC Assistant City Secretary