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Home My WebLink About2011/10/04-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss Director Betsy Price Director W. B. "Zim" Zimmerman Director Joel Burns Absent: Director Salvador Espino Director Jungus Jordan Director Dennis Shingleton City staff: Susan Alanis, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Coy Gray, Administrative Services Manager, Housing & Economic Development Dept. Robin Bentley, Community Development Manager, Housing & Economic Development Dept. Other staff: Fernando Costa, Assistant City Manager Jay Chapa, Assistant General Manager Cynthia Garcia, Administrator Robert Stums, Economic Development Manager, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Economic Development Dept. LeAnn Guzman, Assistant City Attorney 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 12:56 p.m. on Tuesday, October 4, 2011, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Directors Espino, Jordan and Shingleton absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 2 Approval of Minutes of the August 2, 2011, Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, August 2, 2011, meeting. Approval of Minutes of the August 2, 2011, Meeting (cont'd) (Agenda Item 2) MOTION: Upon a motion made by Director Scarth and seconded by Director Zimmerman, the Board of Directors voted unanimously six (6) "ayes" and zero (0) "nays ", with Directors Espino, Jordan and Shingleton absent, to approve the Tuesday, August 2, 2011, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through August 31, 2011 (Agenda Item 3a) President Hicks referenced the Financial Report through August 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. Adopt Resolution Approving the Budget for the 2011- 2012 Fiscal Year (Agenda Item 4) Mr. Coy Gray, Administrative Services Manager, Housing and Economic Development Department, presented the 2011 -2012 Fiscal Year Budget for the Fort Worth Housing Finance Corporation. Using a PowerPoint presentation, Mr. Gray and outlined the proposed 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 TOTAL REVENUE $280,750.00 \1r. Grav ads iscd the Corporation of the t6llo�k,irng expenditures: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 3 Adopt Resolution Approving the Budget for the 2011- 2012 Fiscal Year (cont'd) (Agenda Item 4) EXPENDITURES SALARIES AND 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 & Membership 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 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 Scarth and seconded by Director Burns, the Board voted unanimously six (6) "ayes" and zero (0) "nays ", with Directors Espino, Jordan and Shingleton absent, to approve Resolution No. FWHFC 2011- 21. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 4 Adopt Resolutions Approving Actions of the Corporation as Sole Member of Terrell Homes GP, LLC, the General Partner of Terrell Homes, Ltd.; Approving All Actions Necessary for the Acquisition, Financing and Development of the Terrell Homes I Project; Approving Funding of Reserves and Establishment of Bank Accounts; and Ratifying All Acts Previously Taken by the Corporation, the General Partner or the Partnership in Connection with the Project (Agenda Item 5) Ms. Robin Bentley, Community Development Manager, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution and advised that her presentation would also include Agenda Item 6. She began her PowerPoint Presentation by displaying and aerial view of the location which reflected the Terrell Heights Historic District outlined in red. She advised that the 54 properties under consideration were depicted in yellow and then transitioned to the next slide entitled NRP Terrell Heights Recap that reflected the following information: • Funding: $900,000.00 in HOME funds. • Total Investment: $11,043.214.00 • Project: • HFC and NRP are partners in development. • Partnership to build 54 single family homes. • Homes will be rented for 15 years then sold to current occupant for balance of debt (20 years for HOME units). • Construction Start Date: Winter 2011. • Construction End Date: October 2012 Ms. Bentley provided the current status on the project as reflected below: • All properties acquired by the partnership in June 2011. • All financing to close mid - October 2011 (October 19, 2011). • Construction to begin immediately upon closing. Ms. Bentley completed her presentation by advising the Corporation of the following recommendation by staff: • Approve resolutions ratifying all actions taken to date and authorize the HFC to take the tifllowing actions in the future. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 5 Adopt Resolutions Approving Actions of the Corporation as Sole Member of Terrell Homes GP, LLC, the General Partner of Terrell Homes, Ltd.; Approving All Actions Necessary for the Acquisition, Financing and Development of the Terrell Homes I Project; Approving Funding of Reserves and Establishment of Bank Accounts; and Ratifying All Acts Previously Taken by the Corporation, the General Partner or the Partnership in Connection with the Project (cont'd) (Agenda Item 5) o Fund reserves and open bank accounts. o Enter into development agreement and partnership agreement. o Execute loan documents, guarantees and other documents related to the financing of the project. o Accept ownership of all property and ground lease property to partnership. President Hicks stated that she wanted to move forward with this project and noted that even though the project was not located in the district she represented, it really served no purpose to have all these open lots with nothing happening with them. She added that once the project got off the ground she hoped the same thing could occur in other areas of the City. President Hicks opened the floor for discussion on this issue. Director Moss inquired what the build out time for all 54 homes was. Ms. Bentley stated that construction would start in late October 2011 with all 54 homes being completely constructed and certificates of occupancy issued by October 2012. There being no further discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Scarth and seconded by Director Price, the Board voted unanimously six (6) "ayes" and zero (0) "nays ", with Directors Espino, Jordan and Shingleton absent to approve Resolution Nos. FWHFC 2011- 22 and FWHFC 2011 -23. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 6 Adopt Resolutions Authorizing a Development Agreement with NRP Holdings, LLC, NRP Investments Corp. and NRP Contractors, LLC, for the Terrell Homes I Project, and Authorizing the Corporation to Act as Guarantor for the Project (cont'd) (Agenda Item 6) (This item was considered concurrently with Agenda Item 5 as stated by Ms. Robin Bentley, Community Development Manager, Housing and Economic Development Department, at the beginning of her presentation. The resolution approved under this item was FWHFC 2011 -23.) Executive Session (Agenda Item 7 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. Requests for Future Agenda Items (Agenda Item 8) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adjourn (Agenda Item 9) With no further discussion, ['resident Hicks adjourned the called - special session of the Fort Wortll Housing Finance Corporation Board at 1:00 p.m. on Tuesday, October 4, 2011. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, OCTOBER 4, 2011 PAGE 7 These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 10th day of January, 2012. APPROVED: XX 1A Kathleen icks President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: Ronald P. Gonzales, TRMCICMC Assistant City Secretary