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HomeMy WebLinkAbout2004/11/30-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30,2004 Present: President Council Member Ralph McCloud—District 8 Treasurer Council Member Clyde Picht—District 6 Director Mayor Mike Moncrief Director Council Member Jim Lane—District 2 Director Council Member Chuck Silcox—District 3 Director Council Member Donavan Wheatfall—District 5 Director Council Member John Stevenson, District 7 Director Council Member Wendy Davis, District 9 Absent: Vice President Council Member Becky Haskin—District 4 City staff: Acting Assistant City Manager Dale Fisseler Assistant City Attorney Vicki Ganske City Secretary Marty Hendrix Finance Director Jim Keyes Director of Economic and Community Development Tom Higgins Director of Housing Jerome C. Walker Other City staff in attendance: City Manager Charles Boswell, Acting Assistant City Manager Richard Zavala, Assistant City Manager Joe Paniagua, Assistant City Attorney Cynthia Garcia, Director of Code Enforcement Carl Smart, Budget Director Bridgette Garrett, and Angela McFarland, Karen Meunier, and Donald Cager with the Housing Department Call to Order (Agenda Item 1) President McCloud called the meeting to order for the Board of Directors of the Fort Worth Housing Finance Corporation at 12:34 p.m. on Tuesday, November 30, 2004, in the Pre- Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton, Fort Worth, Texas. (Directors Lane and Silcox stepped out of the room.) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30, 2004 Page 2 Approval of Minutes of the January 27, 2004 Meeting (Agenda Item II) President McCloud opened the floor for a motion on the approval of the minutes of the Tuesday, January 27, 2004 meeting. MOTION: Upon a motion made by Director Wheatfall and seconded by Director Stevenson, the Board of Directors voted six (6) "ayes" and no (0) "nays" to approve the January 27, 2004 minutes as presented. The motion carried. President McCloud adjourned the called — special session of the Fort Worth Housing Finance Corporation Board of Directors into Executive Session in accordance with the requirements of the Texas Open Meetings Act at 12:34 p.m. (Council Members Lane and Silcox returned to their places at the meeting.) Executive Session (Agenda Item III) In accordance with Chapter 551 of the Texas Government Code, the Fort Worth Housing Finance Corporation Board of Directors convened into Executive Session at 12:34 p.m. on Tuesday,November 30, 2004, in the Pre-Council Chamber to discuss the following: a. Seek the advice of its attorneys concerning legal issues regarding any current agenda 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; b. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. C. Discuss or deliberate economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. The Executive Session was adjourned at 12:38 p.m. President McCloud reconvened the called — special session of the Fort Worth Housing Finance Corporation Board of Directors at 12:38 p.m. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30, 2004 Page 3 Election of Secretary of the Board of Directors to Replace Former Council Member Frank Moss (Agenda Item IV) MOTION: Upon a motion made by Director Silcox and seconded by Director Stevenson, the Board of Directors voted eight (8) "ayes" and no (0) "nays" to approve by resolution the appointment of Director Donavan Wheatfall as Secretary to the Fort Worth Housing Finance Corporation Board of Directors. The motion carried. Discussion and Consideration of a Resolution Appointing an Assistant Secretary of the Board of Directors (Agenda Item V) Acting Assistant City Manager Dale Fisseler advised the Board of Directors of the need for an additional person to act in the role of Secretary for the Board. He advised that the City staff's recommendation was to appoint City Secretary Marty Hendrix to this position. MOTION: Upon a motion made by Director Silcox and seconded by Director Moncrief, the Board voted eight (8) "ayes" and no (0) "nays" to approve by resolution the appointment of City Secretary Marty Hendrix as the Assistant Secretary to the Fort Worth Housing Finance Corporation Board of Directors. The motion carried. Discussion and Consideration of a Resolution Confirming Jerome C. Walker as Authorized Signatory Agent for the Corporation (Agenda Item VI) Senior Assistant City Attorney Vicki Ganske advised the Board of Directors of the need for action by the Board on the confirmation of Jerome C. Walker, Director of Housing, as an authorized signatory agent for the Corporation. MOTION: Upon a motion made by Director Lane and seconded by Director Stevenson, the Board of Directors voted eight (8) "ayes" and no (0) "nays" to approve the resolution that confirms Jerome C. Walker as its designated authorized signatory agent. The motion carried. Discussion and Consideration of a Resolution to Nullify the Resolution CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30,2004 Page 4 Adopted on January 27, 2004 Regarding an Agreement and Grant of HOME Funds with Vertex Asset Partners, L.P. for a Single- Family and Multi-Family Development (Agenda Item VII) City staff advised that on January 27, 2004, the Board of Directors approved a grant by the Fort Worth Housing Finance Corporation of$1,000,000 from HOME Investment Partnership Program funds allocated to the Fort Worth Housing Finance Fund to Vertex Asset Partners, L.P., for the purpose of acquiring a 29.79 acre tract and demolishing boarded-up structures situated on the tract in order to bring about the development of new construction single-family housing. City staff pointed out that the Fort Worth City Council and Vertex Asset Partners, L.P., are no longer pursuing a grant from the Fort Worth Housing Finance Corporation HOME Funds. City staff explained that the proposed resolution would rescind the authority passed on January 27, 2004, regarding Vertex Asset Partners, L.P.; and, make the agreement by the Fort Worth Housing Finance Corporation to grant $1,000,000 of its HOME Funds to Vertex Asset Partners, L.P., null and void. MOTION: Upon a motion made by Director Moncrief and seconded by Director Silcox, the Board of Directors voted 8 (eight) "ayes" and no (0) "nays" to approve the proposed resolution nullifying previous action authorizing an agreement with Vertex Asset Partners, L.P., for the Redevelopment of Trinity I & II and James Town Apartments into a single-family and multi-family development including a grant of$1,000,000 of Home Funds for the acquisition and demolition of multi- family structures for the single-family development. The motion carried. Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (Agenda Item VIII) Director of Housing Jerome C. Walker presented a PowerPoint Presentation of the Sierra Vista Development proposal (site formerly known as Trinity I & II and Jamestown). Using a site map, he reviewed the location of the project and pointed out that it was located in the Rolling CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY,NOVEMBER 30,2004 Page 5 Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (cont'd) (Agenda Item VIII) Hills Neighborhood Empowerment Zone. He indicated that there was a total of 6,986 housing units, with 39% of housing stock being owner-occupied; 69%of housing stock built before 1959; and 82.3% of owner-occupied single-family structures valued under $50,000. He then presented an aerial view of the project site. Mr. Walker showed several photographs of the current structures to be demolished, which represented 1,014 multi-family units. Mr. Walker explained that the key project partners were: Owner: Vertex Investments Demolition of current multi-family structures. Developer: American CityVista Acquisition of post-demolition property from owner and site infrastructure development Builder: Historymaker Homes Primary homebuilder Mr. Walker presented the proposed single-family development as follows: Site: 42.45 acres Density: 5.9 Project: 232 single-family homes 1,290 sq. ft. to 2,300 sq. ft. Price range: $80,000 to $120,000 Community Activity Facility Pocket parks maintained through PID CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30,2004 Page 6 Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (cont'd) (Agenda Item VIII) Mr. Walker advised of the estimated development costs as follows: Land Acquisition: $1,250,000 Demolition $1,100,000 Site Improvements $4,745,565 Home Construction $15,000,000 Total Est. Development Costs: $22,095,565 Mr. Walker presented the original proposed partnership summary as follows: Private Investment Land Acquisition $1,250,000 Demolition $1,100,000 Site Improvements $3,860,862 Home Construction $15,000,000 Total Private Investment $21,210,862 Gap $2,498,862 Requested City Investment $2,498,862 Mr. Walker presented the revised partnership summary as follows: Private Investment Land Acquisition $1,250,000 Demolition $1,100,000 Site Improvements $1,477,993 Home Construction $15,000,000 Total Private Investment $18,827,993 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30, 2004 Page 7 Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (cont'd) (Agenda Item VIII) Gap $3,267,572 Requested City Investment $3,267,572 Mr. Walker presented the city resources recommended: NEZ Fee Waivers: Sanitary Sewer Impact Fee $175,742 Water Impact Fee $144,146 Preliminary Plat Application Fee $1,500 CFA Fee $1,000 Platting Fee $4,000 TOTAL: $326,388 Mr. Walker pointed out the Fort Worth Housing Finance Corporation Endowment Fund as follows: (Current Balance is $5.2 million) $330,320 Endowment Fund to be reimbursed with proceeds from sales of City-owned property. Mr. Walker continued his presentation with the following information: Enhanced CFA and Bond Funds Street Paving and Drainage $1,359,724 Water & Sewer $1,252,140 TOTAL: $2,610,864 CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30,2004 Page 8 Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (cont'd) (Agenda Item VIII) Mr. Walker provided the following recap of recommended funds: Enhanced CFA and Bond Funds $2,610,864 Fee waivers $326,388 Endowment Fund $330,320 TOTAL: $3,267,572 Gap Amount $3,267,572 Remaining Gap $0, Mr. Walker opened the floor for questions from the Board on his presentation. The Board discussed the CFA funds and how the taxes collected in the Tax Increment Financing (TIF) zones are used to fund projects within those zones and if that same type of process can be used in this project for repayment of the loan. Acting Assistant City Manager Dale Fisseler clarified that the repayment of the loan would come from the direct sale of real property through the Fort Worth Local Finance Corporation. Director Stevenson requested clarification on the location of the property in question for sale. Mr. Fisseler pointed out that it was property located across the street from this area. Director Wheatfall expressed concerns about this development and the Rolling Hills Development. He explained that he wanted to know about the provisions of the agreement or placement of certain provisions in the agreement that will allow for the contractors in this process to be individuals that are part of this community, i.e., electricians, plumbers, laborers, etc. He also expressed his concern with restricting the use of surplus property in other locations of the City in order to generate the money needed for this project. There was further discussion on the property located across the street from this project. President McCloud explained the CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED—SPECIAL SESSION MINUTES TUESDAY,NOVEMBER 30,2004 Page 9 Discussion and Consideration of a Resolution Authorizing an Agreement with American CityVista for the Redevelopment of an approximately 42.5 Acre Tract Consisting of Trinity I & II and Jamestown Apartments into a Single-Family Development, Including a Grant from the Housing Finance Corporation Endowment Fund (cont'd) (Agenda Item VIII) reason this site had been selected. Director Wheatfall expressed his concerns with the unfair treatment of local contractors and other workers on other projects throughout the City. There was further deliberation by the Board Members on the merits of this project compared to other projects in the City. There was also clarification and discussion on the fact that this project is unique and that there is not another project like it in the City. There was also discussion on the fact that in the long term that this project will provide positives returns to the City in property values and property taxes. Board Member Davis pointed out that this project will be able to stand on its own and that the developer in this process will not be making large amounts of money on this development. Other points that were made were that this project would be a catalyst and a positive move for this area. MOTION: Upon a motion made by Director Lane and seconded by Director Moncrief, the Board of Directors voted eight (8) "ayes" and no (0) "nays" to approve the proposed resolution authorizing the agreement with Sierra Vista, L.P., for the redevelopment of an approximately 42.5 acre tract consisting of Trinity I & II and Jamestown Apartments into a single family development, including a grant from the Housing Finance Corporation Endowment Fund. The motion carried. Request for Future Agenda Items and/or Reports (Agenda Item IX) There were no future agenda items requested by the Board Members or reports given by the Board Members. Adiourn (Agenda Item X) With no further business before the Board, President McCloud adjourned the called — special session of the Fort Worth Housing Finance Corporation Board of Directors at 1:00 p.m. on Tuesday. November 30, 2004. CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION CALLED-SPECIAL SESSION MINUTES TUESDAY, NOVEMBER 30,2004 Page 10 These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the o12 day of r-ebr 14 Gtr�4 , 2005. APPRF�VEb: Ralph McCloud President AT T: D 7av�nWheatfall Secretary Prepared and respectfully submitted by: f\A ^ -L. (;�� - Marty Hendrix, C/CMC City Secretary