Loading...
HomeMy WebLinkAbout2010/12/07-Minutes-Fort Worth Housing Finance Corporation (FWHFC)CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 Present: Vice President Danny Scarth Secretary Frank Moss Director Mike Moncrief (Arrived at 1:06 p.m.) Director Salvador Espino Director W. B. "Zim" Zimmerman Director Jungus Jordan Director Carter Burdette Absent: President Kathleen Hicks Director Joel Burns 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 Other staff: Cynthia Garcia, Assistant Director, Housing & Economic Development Department Robert Sturns, Economic Development Manager, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Economic Development Department Mark Folden, Housing Program Manager, Housing & Economic Development Department 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. Christopher Mosley, Assistant City Attorney Call to Order (Agenda Item 1) With a quorum present, Vice President Scarth called the meeting to order for the Board of Directors of the Fort Worth Housing Finance Corporation (Corporation) at 1:04 p.m. on Tuesday, December 7, 2010, in the Pre - Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas, with Director Moncrief temporarily absent and President Hicks and Director Burns absent. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 2 Approval of Minutes of the October 5, 2010 Meeting (Agenda Item 2) Vice President Scarth opened the floor for a motion on the approval of the minutes of the Tuesday, October 5, 2010, meeting. MOTION: Upon a motion made by Director Jordan and seconded by Director Espino, the Board of Directors voted six (6) "ayes" and zero (0) "nays ", with Director Moncrief temporarily absent and President Hicks and Director Burns absent, to approve the Tuesday, October 5, 2010, minutes of the Corporation as presented. The motion carried. Written Reports: Fort Worth Housing Finance Corporation Financial Report through October 31, 2010 (Agenda Item 3A) Vice President Scarth referenced the Financial Report through October 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. Written Reports: Villas of Eastwood Terrace Gas Leases with Chesapeake (Agenda Item 3B) Vice President Scarth referenced the report regarding the Villas of Eastwood Terrace Gas Leases with Chesapeake and opened the floor for discussion. Assistant City Manager Alanis advised that a copy of the Villas of Eastwood Terrace report was not distributed to the Corporation and advised that an electronic copy would be mailed to the directors. Director Jordan advised that he would file a Conflict of Interest Affidavit with the City Secretary's Office and would abstain from voting on Agenda Item No. 7. There was no discussion on this agenda item. The written report was provided to the Board as a matter of information. There was no tonnal action taken on the report. (Director Moncrief arrived at the meeting.) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 3 Executive Session (Agenda Item 4) Vice President Scarth stated that he 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. Adopt Resolution Ratifying the Formation of Terrell Homes, LLC, and Approve All Related Actions Required to Act as General Partner for the Partnership Developing, Owning and Managing the Terell Homes I Project in the Terrell Heights Neighborhood (Agenda Item 5) Mr. Jay Chapa, Assistant General Manager, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, he provided the following background information relative to the project's partnership: • February 2010 the Corporation approved a letter of agreement to enter into a partnership with NRP Group, LLC, for the development of the Terrell Homes • The development required formation of the Limited Liability Company by the Corporation to serve as the General Partner of a partnership entity which will own the development. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 4 Adopt Resolution Ratifying the Formation of Terrell Homes, LLC, and Approve All Related Actions Required to Act as General Partner for the Partnership Developing, Owning and Managing the Terell Homes I Project in the Terrell Heights Neighborhood (cont'd) (Agenda Item 5) Mr. Chapa stated that when the award was approved by the Texas Department of Community Affairs the timeline for formation of the LLC was less than the time that another meeting of the Corporation could be held. He pointed out that City staff had prior approval to enter into that partnership and move forward with the formation of the LLC and made the following recommendation: • Staff recommends the Corporation ratify the formation of Terrell Homes, GP, LLC, to serve as General Partner for the purpose of o Owning • Developing • Constructing • Managing Vice President Scarth opened the floor for discussion on this issue. There being no discussion, Vice President Scarth opened the floor for a motion. MOTION: Upon a motion made by Director Moncrief and seconded by Director Espino, the Board voted seven (7) "ayes" and zero (0) "nays ", with President Hicks and Director Burns absent, to approve Resolution No. FWHFC 2010 -15. The motion carried. Adopt Resolution for Additional Funds in Order to Purchase Lots from KT Land, Ltd., and Tom Struhs for Infill Development in the Terrell Heights Neighborhood (Agenda Item 6) Ms. Fabiola Suarez, Economic Development Specialist, Housing and Economic Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, Ms. Suarez displayed an aerial view of the proposed infill properties and advised the Corporation that the properties were located south of Rosedale and west of IH 35. She displayed a closer aerial view of the properties and provided a brief overview of the project as reflected below: CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 5 Adopt Resolution for Additional Funds in Order to Purchase Lots from KT Land, Ltd., and Tom Struhs for Infill Development in the Terrell Heights Neighborhood (cont'd) (Agenda Item 6) • Construction or rehabilitation of up to 11 Single Family homes in Terrell Heights. • Purchase properties from KT Land, LTD. • November 2009, the Corporation approved the purchase of the lots for $5,500.00 each. • Because we have not been able to close on the lots, the lot price has increased to $6,500.00. This amount is supported by an appraisal. Ms. Suarez clarified that delay in closing on the lots was due to the environmental review process that was performed in phases and that created an accumulation of fees and the increase in the lot price. She added that staff s recommendation was to approve the resolution to add an additional $11,000.00 in funding to purchase the lots from KT Land and Tom Struhs. Vice President Scarth opened the floor for discussion on this issue. Director Moncrief asked for clarification on the escalation in the lot price. Ms. Suarez advised that the environmental review process had to be tiered which took some time to get each of the 11 lots cleared through the Planning and Development Department and therefore the fees that accumulated on each lot caused the price to increase. Senior Assistant City Attorney Ganske stated that Mr. Struhs and KTD Land, LTD., had an interim loan with the Omni American Bank on these lots and part of the increase were carrying costs which had gone on for about one (1) year. Director Burdette stated that as he understood this, the additional costs were reimbursement for funds already spent and they were not actually increases in the purchase price per se since the sellers had already incurred these costs. Senior Assistant City Attorney Ganske concurred. Director Moss stated that he assumed the environmental costs were the Corporation's costs. Ms. Suarez confirmed Director Moss's statement. There being no further discussion, Vice President Scarth opened the floor for a motion. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 6 Adopt Resolution for Additional Funds in Order to Purchase Lots from KT Land, Ltd., and Tom Struhs for Infill Development in the Terrell Heights Neighborhood (cont'd) (Agenda Item 6) MOTION: Upon a motion made by Director Moss and seconded by Director Moncrief, the Board voted seven (7) "ayes" and zero (0) "nays ", with President Hicks and Director Burns absent, to approve Resolution No. FWHFC 2010 -16. The motion carried. Adopt Resolution Approving a Gas Lease with Chesapeake Exploration, L.L.C., for Twenty Four Properties (Agenda Item 7) Director Jordan stated that he would file a Conflict of Interest Affidavit with the City Secretary's Office and abstain from voting on this item. Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, addressed the Corporation regarding the proposed resolution. Using a PowerPoint presentation, Ms. Petr provided the following outline of the request: • Chesapeake requested leases on 24 tracts of Fort Worth Housing Finance Corporation property in three (3) units. o All tracts located in District 5 • Lease Terms o $3,000.00 per acre bonus 0 25 percent royalty o Two (2) year term o No surface use Ms. Petr displayed an aerial map of the location where the three (3) units would be leased. She explained that the Hill Unit was just south of Rosedale Avenue, went south to the Piper Unit and beyond on the southwest was the Braylon Unit. She referred to the location of the Mt. Tabor Well where all the units would be drilled and pointed out that the well was already permitted by the City. She then displayed an aerial map and a brief description of each unit: • Hill Unit 0 12 properties 0 2.6 acres, more or less o $7,800.00 total bonus CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 7 Adopt Resolution Approving a Gas Lease with Chesapeake Exploration, L.L.C., for Twenty Four Properties (cont'd) (Agenda Item 7) • Piper Unit 0 8 properties 0 2.035 acres, more or less o $6,105.00 total bonus • Braylon Unit 0 4 tracts (denoted in pink) 0 2.035 acres, more or less o $6,105.00 total bonus Ms. Petr advised that based on the current market terms these were acceptable lease prices and recommended that the Corporation execute the leases. Vice President Scarth opened the floor for discussion on this issue. Director Burdette stated that it was his understanding that these properties were within designated drilling units already designated by Chesapeake and therefore no other drilling or gas companies would be interested in leasing these properties. Ms. Petr concurred and added that these were small tracts of land and therefore there was not a lot of competition. She added that Chesapeake was still forming some of these units that may not be filed with the Railroad Commission. There being no further discussion, Vice President Scarth opened the floor for a motion. MOTION: Upon a motion made by Director Moss and seconded by Director Burdette, the Board voted six (6) "ayes" and zero (0) "nays ", with President Hicks and Director Burns absent and with one abstention by Director Jordan , to approve Resolution No. FWHFC 2010 -17. The motion carried. Adopt Resolution to Hire John Shackleford as Legal Counsel for Low Income Housing Tax Credit Projects (Agenda Item 8) Mr. Jay Chapa, Assistant General Manager, addressed the Corporation regarding the proposed resolution. Mr. Chapa referred to the resolution that was distributed to the Corporation Board members that asked the Corporation to approve the hiring of Mr. Shackleford to serve as CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 8 Adopt Resolution to Hire John Shackleford as Legal Counsel for Low Income Housing Tax Credit Projects (Agenda Item 8) (cont'd) an outside attorney for low income housing tax credit projects. He stated that these tax credits had proven to be very intricate and extremely time consuming on the document preparation side and on the legal side. He added that staff worked with Senior Assistant City Attorney Vicki Ganske and Assistant City Attorney Leann Guzman to obtain outside help and this resolution would approve the hiring of Mr. Shackleford for $60,000.00 for each project to do the complete legal work associated with the contracts and partnerships with NRP and also with the state relative to the low income housing tax credits. He stated that the costs would be incurred by the Corporation and those dollars would be recouped through development fees associated with each project which was a good return on investment. He pointed out that the actual payment would not occur until the project closed. Vice President Scarth opened the floor for discussion on this issue. There being no discussion, Vice President Scarth opened the floor for a motion. MOTION: Upon a motion made by Director Moncrief and seconded by Director Burdette, the Board voted seven (7) "ayes" and zero (0) "nays ", with President Hicks and Director Burns absent, to approve Resolution No. FWHFC 2010 -18. The motion carried. Requests for Future Agenda Items (Agenda Item 9) Vice President Scarth opened the floor on requests for future agenda items. No requests were made by Board members. Adjourn (Agenda Item 10) With no further discussion, Vice President Scarth adjourned the called — special session of the Fort Worth Housing Finance Corporation Board at 1:15 p.m. on Tuesday, December 7, 2010. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED — SPECIAL SESSION TUESDAY, DECEMBER 7, 2010 PAGE 9 These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 4th day of January, 2011. APPROVED: Kathleen Hicks President ATTEST: Frank Moss Secretary Prepared and respectfully submitted by: R nald P. Gonzales, T C/ MC Assistant City Secretary