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HomeMy WebLinkAbout2011/06/07-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss Director Salvador Espino Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Carter Burdette Director Joel Burns Absent: Director Mike Monerief City staff: Susan Alanis, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Cynthia Garcia, Assistant Director, Housing & Economic Development Department Jean Petr, Gas Lease Program Manager Robin Bentley, Acting Housing Program Manager Other staff: Jay Chapa, Assistant General Manager Robert Stums, Economic Development Manager, Housing & Economic Development Dept. Peter Vaky, Deputy City Attorney, Law Department Christopher Mosley, Assistant City Attorney, Law Department Leann Guzman, Assistant City Attorney, Law Department Mark Folden, Business Development Coordinator, Housing & Economic Development Dept. 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. Barbara Asbury, Grants Manager, Housing & Economic Development Dept. Charletra Hurt, Sr. Contract Compliance Specialist, Housing & Economic Development Dept. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 2 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 12:12 p.m. on Tuesday, June 7, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Director Moncrief absent and Vice President Scarth temporarily absent. Approval of Minutes of the May 3, 2011, Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, May 3, 2011, meeting. MOTION: Upon a motion made by Director Jordan and seconded by Director Espino, the Board of Directors voted seven (7) "ayes" and zero (0) "nays ", with Director Moncrief absent and Vice President Scarth temporarily absent, to approve the Tuesday, May 3, 2011, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through April 30, 2011 (Agenda Item 3A) President Hicks referenced the Financial Report through April 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. Adopt Resolution Authorizing Changes in the Terms of the Sale of The Villas of Eastwood Terrace Located at 4700 East Berry Street by The Villas of Eastwood Terrace, LLC, to the Housing Authority of the City of Fort Worth, and Authorizing the Sale of Adjacent Land as Part of the Sale (Agenda Item 4) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. ['sing a PowerPoint Presentation, Ms. Garcia advised the Corporation of the project timeline and o%e►-vicw as tollows: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 3 Adopt Resolution Authorizing Changes in the Terms of the Sale of The Villas of Eastwood Terrace Located at 4700 East Berry Street by The Villas of Eastwood Terrace, LLC, to the Housing Authority of the City of Fort Worth, and Authorizing the Sale of Adjacent Land as Part of the Sale (cont'd) (Agenda Item 4) • 2003 — Villas developed by Villas of Eastwood Terrace, LLC. o Fort Worth Housing Finance Corporation (FWHFC) is the Sole Member of Villas of Eastwood Terrace, LLC; LLC created in 2011. • June 23, 2009 — City Council authorized Change in Use and Expenditure of $1.4 million in HOME funds. • March 23, 2010 — Appointed managers of Villas of Eastwood Terrace approved sale to Fort Worth Housing Authority. • June 8, 2010 — Presented terms and conditions of sale to FWHFC. Ms. Garcia displayed an aerial view of the property and stated it was located off Berry Street west of IH 820. She presented the following terms and conditions for 2010 for the sale of the property: (Vice President Scarth arrived at the meeting.) • Fort Worth Housing Authority (FWHA) assumes debt on Villas. o $9,132,360.66 as of April 30, 2011. • City of Fort Worth (CFW) loans FWHA up to $1.4 million in HOME funds. • Deferred payment loan. • 20 -year affordability period. • Designate affordable units for households <60% of Area Median Income per U.S Department of Housing and Urban Development (HUD). • Sales price not to exceed $10,616,891.06 million depending on appraisal. • Seller pays for appraisals and closing costs. o FWHFC, as sole member of Villas of Eastwood Terrace, LLC, to allocate up to $100,000.00 for these costs. • Must remain a multi- family complex for people age 55 and over. Before proceeding with her presentation, Ms. Garcia stated that after the terms of the sale were agreed to, the property only appraised for $8.1 million while the debt to be assumed was $9.1 million; however, the FWHA still had agreed to purchase the property. She continued with information on the revised terms and conditions for the sale of the property as reflected below: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 4 Adopt Resolution Authorizing Changes in the Terms of the Sale of The Villas of Eastwood Terrace Located at 4700 East Berry Street by The Villas of Eastwood Terrace, LLC, to the Housing Authority of the City of Fort Worth, and Authorizing the Sale of Adjacent Land as Part of the Sale (cont'd) (Agenda Item 4) • FWHA assumes current note held through Key Bank. • FWHFC pays all reasonable closing costs and fees associated with closing the transaction. o FWHFC approved up to $100,000.00 for these costs on June 8, 2010. • FWHFC will maintain an operating deficit reserve for five (5) years. • Balance of reserve will be $60,000.00 for the first year. • If necessary, balance of reserve will be increased to $60,000.00 at the beginning of each year. • Operating reserve will not exceed a total of $300,000.00 for the 5 -year period. • Consider transfer of four (4) lots adjacent to the Villas of Eastwood that are currently owned by the FWHFC to the FWHA. o Tarrant Appraisal District (TAD) valued the properties at $98,871.00. • No HOME funds can be used in the Project. • Must remain a senior multi - family complex for 55 years of age and older as a condition of the FHA - insured mortgage. Ms. Garcia then displayed another aerial view of the property with the four (4) lots proposed for sale to the FWHA and explained that the property depicted in orange was the Villas of Eastwood Terrace and advised the four (4) FWHFC lots under consideration for inclusion in the sale were depicted in blue, green, yellow and lime green. She advised of the staff's recommendation and next steps as follows: • Approve resolution authorizing the changed terms of the sale for the Villas of Eastwood Terrace. • Authorize the sale of four (4) properties adjacent to the Villas of Eastwood Terrace. • Execute the Transfer of Physical Assets application to be submitted to HUD. President Hicks opened the floor for discussion on this issue. Director Moss inquired if the sale price would drop to the appraised value. Ms. Garcia clarified that the FWHA would assume the note of $9.1 million still owed and they would get additional property, plus there was still the reserve account of up to 8300,000.00 for five (5) years kkhich was 860.000.00 per year. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 5 Adopt Resolution Authorizing Changes in the Terms of the Sale of The Villas of Eastwood Terrace Located at 4700 East Berry Street by The Villas of Eastwood Terrace, LLC, to the Housing Authority of the City of Fort Worth, and Authorizing the Sale of Adjacent Land as Part of the Sale (cont'd) (Agenda Item 4) Director Moss noted the sale had an overall $9.1 million appraised value and inquired if that included the sale of the four (4) lots. Ms. Garcia clarified that the appraised value was $8.1 million and that it did not include the sale of the lots which had a TAD value of $98,871.00. 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 Espino, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Moncrief absent, to approve Resolution No. FWHFC 2011 -12. The motion carried. Adopt Resolution Approving a Contract with the City of Fort Worth for $1,000,000.00 in HOME Funds for the Development of the Lee Avenue Townhomes, Approve the Purchase of 1402, 1404 and 1419 Lee Avenue and 406 W. Central Avenue from the City of Fort Worth and Approve All Related Actions Required for the Use of HOME Funds and Housing Development Pipeline License Agreement with Texas Midstream Gas Services, LLC (Agenda Item 5) Ms. Robin Bentley, Acting Housing Program Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint Presentation, Ms. Bentley began her presentation on the project by displaying an aerial view of the properties and explained that the properties were located in District 2 in the Northside Neighborhood Empowerment Zone. She advised that the red dots indicated the tax foreclosed properties that were controlled by the City at the intersection of Lee Avenue and Central Avenue. She displayed a closer aerial view of the location and pointed out that the areas in red were four (4) dilapidated residential structures and a commercial property that were all tax foreclosures. Ms. Bentley then displayed slides that depicted the existing conditions of the properties. Ms. Bentley advised that the proposed project was to demolish the structures and replat the land for took nhouses and provided the tollowing explanation: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 6 Adopt Resolution Approving a Contract with the City of Fort Worth for $1,000,000.00 in HOME Funds for the Development of the Lee Avenue Townhomes, Approve the Purchase of 1402, 1404 and 1419 Lee Avenue and 406 W. Central Avenue from the City of Fort Worth and Approve All Related Actions Required for the Use of HOME Funds and Housing Development Pipeline License Agreement with Texas Midstream Gas Services, LLC (cont'd) (Agenda Item 5) Available Lots 6 (replat for townhouses) Total Land Area Approximately 46,194 square feet Residential Townhomes • 4 -7 Townhouses w /rear entry garages • (2) 2 BR 2 BA 2 Car Garage • (2 -5) 3 BR 2 BA 2 Car Garage • 1,400 — 2,000 square feet Affordable Buyers • Less than 80% Median Income • Family of 4 - $55,900.00 • Family of 6 - $62,550.00 Total Investment $1,000,000.00 City HOME funds Ms. Bentley then displayed a slide that depicted pictures of townhomes that the properties could look like. She advised of the following staff's recommendation: • Authorize acquisition of tax foreclosed properties at 1402, 1404 and 1419 Lee Avenue and 406 West Central Avenue from the City of Fort Worth for up to $200,694.10 plus closing costs and post judgment taxes. NOTE: Ms. Bentley advised that the Local Government Code authorized selling the properties for less if the intended use was.for affordable housing. She added the actual sales price would be less than indicated above. • Authorize execution of HOME contract with the City of Fort Worth for $1,000,000.00 of HOME funds for the development of the Lee Townhomes Project. President Hicks opened the floor for discussion on this issue. Director Espino stated with HOME funds there was a public process and he assumed that staff had visited with the Northside Neighborhood Association on this project. He added that this was a great use of HOME funds and noted that the Hoover Furniture store had been abandoned for a %ery long time as well as many of the properties on Lee Avcnuc and asked what the next steps were in the public process. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 7 Adopt Resolution Approving a Contract with the City of Fort Worth for $1,000,000.00 in HOME Funds for the Development of the Lee Avenue Townhomes, Approve the Purchase of 1402, 1404 and 1419 Lee Avenue and 406 W. Central Avenue from the City of Fort Worth and Approve All Related Actions Required for the Use of HOME Funds and Housing Development Pipeline License Agreement with Texas Midstream Gas Services, LLC (cont'd) (Agenda Item 5) Ms. Bentley stated that later this month staff would meet with the neighborhood to show them the proposal and make sure they supported the project. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Espino and seconded by Director Zimmerman, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Moncrief absent, to approve Resolution No. FWHFC 2011 -13. The motion carried. Adopt Resolution Authorizing the Acquisition of 62 Scattered Sites in the Terrell Heights Neighborhood for the Terrell Homes I Project and Entering into a 99- Year Ground Lease with Terrell Homes I Ltd. (Agenda Item 6) Ms. Robin Bentley, Acting Housing Program Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Ms. Bentley advised that this was an update on the project where the FWHFC was partnering with NRP Holdings, LLC, to build 54 infill homes and a community center in the Terrell Heights neighborhood. She stated that a point in the process had been reached where the FWHFC was ready to move forward with acquiring the land which would be owned by the FWHFC and leased to the partnership under the terms of a 99 -year ground lease. 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 Espino the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Moncrief absent, to approve Resolution No. FWHFC 201 1 -14. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 8 Adopt Resolution Approving a Natural Gas Lease with Vantage Fort Worth Energy, LLC, for 5240 Wooten Drive and 5250 Wonder Drive (Agenda Item 7) Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint Presentation, Ms. Petr advised the Corporation of the request as follows: • Vantage Fort Worth Energy, LLC, requested a lease on FWHFC property located at: o 5240 Wooten Drive and 5250 Wonder Drive (approximately 4 acres) • Council District 6. • Lease Terms. o $5,000.00 per acre bonus. 0 25% Royalty. 0 2 -year term. o No surface use. Ms. Petr displayed an aerial map of the location and stated that the locations of the properties were highlighted in yellow. She pointed out that the City's Geographic Information System was not current and advised that there were no buildings on either property; it was just vacant land. She displayed another map of the area and advised of the location of the two properties colored in red in relation to the drill unit which was also outlined in red, and the drill site colored in green which was the Southeliff Shopping Center. She added that the City Council approved this drill site on May 10, 2011. She further stated that at the regular City Council meeting being held later today, the Council may approve a lease for the Alta Mesa pump station which was City property and was located within this area. She advised that Vantage Fort Worth Energy, LLC, was trying to get all the City -owned or City corporate properties leased within the drill site area. Ms. Petr provided the following information on the Wedgewood South Unit: • Wedgewood Addition. • Block 21, Tract C • Block 20, Tract D • 4.359 acres, more or less. • $21,795.00 total bonus. Ms. Petr concluded her presentation by stating that the terms were at a little above what has been seen in the market and that staff was recommending execution of the lease. President Hicks opened the floor tur discussion on this issue. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 9 Adopt Resolution Approving a Natural Gas Lease with Vantage Fort Worth Energy, LLC, for 5240 Wooten Drive and 5250 Wonder Drive (cont'd) (Agenda Item 7) Director Jordan pointed out that this was the location of the former site of the Granbury Hills Apartment complex that was acquired by the FWHFC. He added that this project was a win -win for the district in that a blighted apartment project was removed and the Corporation would benefit from the gas lease. Director Burdette stated he was assuming that the lease bonus would go into the account of the FWHFC. Ms. Petr responded affirmatively and pointed out that any other royalties generated, as long as it remained FWHFC property, would go to the Corporation as well. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Jordan and seconded by Director Scarth, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Moncrief absent, to approve Resolution No. FWHFC 2011 -15. The motion carried. President Hicks recessed the called — special session into Executive Session at 12:22 p.m. in accordance with the requirements of the Texas Open Meetings Law. Executive Session items: (Agenda Item 8) President Hicks convened the Executive Session at 12:23 p.m. to discuss the following 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. President Hicks adjourned the Executive Session at 12:28 p.m. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, JUNE 7, 2011 PAGE 10 President Hicks reconvened from the Executive Session into the called — special session at 12:29 a.m. 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 12.29 p.m. on Tuesday, June 7, 2011. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the _2nd _ day of —Au gust_, 2011. APPROVED: � "I �4to�o��o' Kathleen Hicks President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ronald P. Gonzales. TRMCCMC Assistant City Secretary