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Home My WebLink About2010/09/14-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 Present: President Kathleen Hicks Vice President Danny Scarth Secretary Frank Moss Director Mike Moncrief (Arrived at 1:10 p.m.) Director Salvador Espino Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Joel Burns (Arrived at 1:09 p.m.) Absent: Director Carter Burdette City staff: Tom Higgins, Assistant City Manager Vicki Ganske, Senior Assistant City Attorney Ron Gonzales, Assistant City Secretary Jay Chapa, Assistant General Manager Cynthia Garcia, Assistant Director, Housing & Economic Development Department Other staff: Marty Hendrix, City Secretary Robert Stums, Economic Development Manager, Housing & Economic Development Department Mark Folden, Housing Program Manager, Housing & Economic Development Department 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 1:05 p.m. on Tuesday, September 14, 2010, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Director Burdette absent and Directors Moncrief and Burns temporarily absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 PAGE 2 Approval of Minutes of the June 8, 2010 Meeting (Agenda Item 2) President Hicks opened the floor for a motion on the approval of the minutes of the Tuesday, June 8, 2010, meeting. MOTION: Upon a motion made by Director Espino and seconded by Director Zimmerman, the Board of Directors voted six (6) "ayes" and zero (0) "nays ", with Director Burdette absent and Directors Moncrief and Burns temporarily absent, to approve the Tuesday, June 8, 2010, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through July 31, 2010 (Agenda Item 3 -A) President Hicks referenced the Financial Report through July 31, 2010, 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, SEPTEMBER 14, 2010 PAGE 3 Adopt Resolution Approving Budget for the 2010 -2011 Fiscal Year (Agenda Item 5) Ms. Cynthia Garcia, Assistant Director, Housing and Economic Development Department, presented the Corporation with the proposed budget for the Fort Worth Housing Finance Corporation. Using a PowerPoint presentation, Ms. Garcia explained that the first slide provided information on the revenues that staff believed were coming into the Corporation and drew attention to funds from the Corporation that were not federal funds but from 1990 bonds and other land sales. She also advised of income from Corporation loans and that the Corporation expected to sell three (3) to four (4) homes this year. The information presented is reflected below: Revenues Interest on Investments $125,000.00 Program Income Principal Loan $750.00 Land /Home Sales $160,000.00 Gas Lease /Royalties $16,000.00 Miscellaneous Revenue $5,000.00 TOTAL REVENUE $306,750.00 Ms. Garcia's second slide provided an explanation of expenditures for the Corporation and stated that it outlined how staff expected to expend funds for the upcoming year. She advised that the expenditures were for taking care of most of the properties currently owned by the Corporation that were up for sale and also to buy other properties. Expenditures Salaries and Benefits $15,575.00 Other Expenses Office Supplies $1,500.00 Postage $700.00 Conference & Seminars $500.00 Engineering Services $1,500.00 Inside Printing $500.00 Graphics $500.00 Electricity $2,800.00 Water & Waste Disposal $1,600.00 Telephone $1,080.00 Dues & Membership $800.00 Contractual Services $15,000.00 D &O Liability Insurance $2,050.00 Mowing HFC Properties $45,760.00 Audit Fees (VOE) $9,500.00 Security Systems (HFC Houses) $3,500.00 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 PAGE 4 Adopt Resolution Approving Budget for the 2010 -2011 Fiscal Year (cont'd) Land Purchases Subtotal TOTAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) President Hicks opened the floor for discussion on this issue. (Director Burns arrived at the meeting.) (Agenda Item 5) $40,000.00 $127,290.00 $142,865.00 $163,885.00 There being no discussion, President Hicks opened the floor for a motion. MOTION: Upon a motion made by Director Scarth and seconded by Director Espino, the Board voted seven (7) "ayes" and zero (0) "nays ", with Director Burdette absent and Director Moncrief temporarily absent, to approve Resolution No. FWHFC 2010 -11. The motion carried. Adopt Resolution Ratifying the Formation of Race Street Lofts GP, LLC, and Approve All Related Actions Required to Act as General Partner for the Partnership Developing, Owning and Managing the Race Street Lofts (Agenda Item 6) (Director Moncrief arrived at the meeting.) President Hicks stated she, Jay Chapa, Assistant General Manager, and Ms. Garcia traveled to Brownsville Wednesday, September 8, 2010, and came back with $46M worth of projects. She expressed appreciation to Director Moncrief for making phone calls and pointed out that two (2) of the projects were in District 2 and two (2) were in District 8. She added that she had been informed that this was the largest amount ever received from the Texas Department of Housing and Community Affairs (TDHCA) which was very extraordinary especially in a very difficult economy. She expressed appreciation to Director Espino and staff for their work. Director Moncrief stated he appreciated the effort from staff and everyone involved, but that it �k'as team effort in which she represented the entire City. She added that he heard she did an outstanding presentation. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 PAGE 5 Adopt Resolution Ratifying the Formation of Race Street Lofts GP, LLC, and Approve All Related Actions Required to Act as General Partner for the Partnership Developing, Owning and Managing the Race Street Lofts (cont'd) (Agenda Item 6) Director Espino commended President Hicks on her hard work in securing the funds for the City. He added that there had been a lot of discussion on Quality, Affordable, Accessible Housing and that everyone was seeing the fruits of that labor through the focus of staff and the City Council. He expressed appreciation to President Hicks for her leadership. President Hicks stated that she hoped TDHCA had great things to say about the City and she hoped they could see some of the projects that were occurring all over the City, just not the Central City. Mr. Jay Chapa, Assistant General Manager, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, Mr. Chapa advised of the project partnership as follows: • March 2, 2010, the Corporation approved a letter of agreement to enter into a partnership with NRP Group, LLC for the development of the Race Street Lofts. • The development required formation of the Limited Liability Company by the FWHFC to serve as the General Partner of a partnership entity which will own the development. Mr. Chapa concluded his presentation with the recommendation below: • Staff recommends the FWHFC Board ratify the formation of Race Street Lofts GP, LLC to serve as General Partner of Race Street Lofts, Ltd., for the purpose of: o Owning • Developing • Constructing • Managing President Hicks opened the floor for discussion on this issue. There being no discussion, President Hicks opened the floor for a motion. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 PAGE 6 Adopt Resolution Ratifying the Formation of Race Street Lofts GP, LLC, and Approve All Related Actions Required to Act as General Partner for the Partnership Developing, Owning and Managing the Race Street Lofts (cont'd) (Agenda Item 6) MOTION: Upon a motion made by Director Espino and seconded by Director Moncrief, the Board voted eight (8) "ayes" and zero (0) "nays ", with Director Burdette absent, to approve Resolution No. FWHFC 2010 -12 ratifying the formation of Race Street Lofts GP, LLC. The motion carried. Request for Future Agenda Items and/or Reports (Agenda Item 7) President Hicks opened the floor on requests for future agenda items. No requests were made by Board members. Adiourn (Agenda Item 8) With no further discussion, President Hicks adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 1:13 p.m. on Tuesday, September 14, 2010. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the _5`h day of JOctober , 2010. APPROVED: Kathleen Hicks President ATTEST: :7 Frank Moss Secretary CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, SEPTEMBER 14, 2010 PAGE 7 Prepared and respectfully submitted by: Ronald P. Gonzales, TRMC /CMC Assistant City Secretary