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Home My WebLink About2013/02/05-Minutes-HEDC CITY OF FORT WORTH,TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 5,2013 Present: Committee Member Joel Burns, Chairman Committee Member Salvador Espino Committee Member Kelly Allen Gray Committee Member Betsy Price (arrived at 1:09 pm) Committee Member W. B. "Zirn" Zimmerman Committee Member Danny Scarth Committee Member Jungus Jordan Corru-nittee Member Dennis Shingleton Committee Member Frank Moss City Staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Director of Housing & Economic Development Department Cynthia Garcia, Assistant Director, Housing & Economic Development Department Robert Sturns, Manager, Housing and Economic Development Department Other City Staff in Attendance: Tom Higgins, City Manager Vicki Ganske, Sr. Assistant City Attorney LeAnn Guzman, Sr. Asst. City Attorney 1.Call to Order-Joel Burns, Chair With a quorum of the committee members present, Chain-nan Joel Burns called the meeting of the Fort Worth Housing and Economic Development Committee to order at 1:03 p.m., on Tuesday, February 5, 2013, in the Pre-Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102. 2.Approval of Minutes from the Meeting Held on December 4, 2012 - Joel Bums, Chair Motion was made by Committee Member Shingleton and second by Committee Member Scarth to approve the minutes of the December 4, 2012, Fort Worth Housing and Economic Development Committee meeting noting that Committee Member Allen Gray was present. Motion passed 8-0. Committee member Price absent. Chairman Joel Bums adjourned the regular meeting of the Fort Worth Housing and Economic Development Committee into Executive Session at 1:05 p.m. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 05, 2013 Page 2oK4 3.|Kxocudve Session - The Housing and 2oouoruio 0evckonmuoot Committee will conduct u closed meeting to: u.Seek the advice of its attorneys concerning the following items that are exempt from public disclosure under Article ){, Section g of the Texas State Bar Rules, as uudzmizcd by section 551.071 of the Texas Government Code: legal issues related to any current agenda items; and b.Discuss the purnbuoo` ou|e. lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have detrimental effect on the position of the City in negotiations with a third party; and c.Discuss nc deliberate negotiations relating to any economic development negotiations, as nudzodzedby Section 55|.087of the Texas Government Code. Cboioouu Joel Bums adjourned the Executive Session at 1:19 p.m., on Tuesday, February 5, 2013. Chairman Joel Bums reconvened the regular session of the Housing and Economic Development Committee at l:ZUpm., noIuemday, February 5, 2013. 4.Written Reports-Jay Chapa, Director, Housing and Economic Development Department * Memo Regarding Universal Design |cuycovemoutx and AD/\ Design 1rupcovonocu\y * Tax lnorornnotFinunto Annual Report * Memo Regarding Job Creation from City-Funded Construction Projects * Memo Regarding an Amendment to the Enhanced Community Facility Agreement with Keystone Equity Partners 5.Presentation Regarding the Development nfm Major HwomcRepmirPrwgrmom- Jay [hupu, Director, Housing and Economic Development Department Mc Cbupuproseutod a report on what would bo required to ionp}cnnnot a Major Home Repair Program. Total cxpeumsm are estimated a1$2.37 million. Funding is not available from any non- federal funding sources. Another alternative would be to o)inoinutcoiber8()MB/CDBG funded programs tofund the Major Home Repair program. C000nd1eo cuerobuc Moss stated that the City needs to deal with deterioration in the inner city. Ue indicated that lie was not iu favor n[giving up the Down Payment Assistance program. Committee members Price, Bnyiuo and Allen Gray are interested iofiodingu target area to focus oo and looking for other alternative fivauciugoptions. Committee member Price was concerned about the labor intensity of the program. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 5,201.3 Page 3 of 4 6.Presentation on the Proposed Utilization of the Immigrant Investors Program (EB-5) - Jay Chapa, Director, Housing and Economic Development Department Mr. Chapa presented a report on the Immigrant Investors Program (EB-5). He explained that there are two categories of EB-5 Investment: Individual - which has a minimum investment of$1.0 M or $500,000 if the business is located in a Targeted Employment Area (TEA) where the unemployment rate is 150% of the national average. Investment must create 10 direct new FTE unless the business is a Regional Center where the jobs can be indirect. Investor and family receive two-year conditional or temporary green card. There are 2 types of individual investments 1) New Business Enterprise or 2)Troubled Business. Regional Center Investment — foreign investor must: demonstrate that a qualified investment is being made in a new commercial enterprise located within an approved Regional Center; invest at least $500,000 in qualifying TEAs, or $1.0 in all other areas; show that 10 or more jobs are created either directly or indirectly by the new enterprise; investment is in the form of a loan. Staff will study feasibility of 1) establishing a Regional Center in Fort Worth; 2) creating a partnership with the Chamber and a third party private sector entity to administer the Regional Center; 3) utilizing the Local Development Corporation as the potential entity to partner with the Chamber instead of the City. Project specific TEAS will be designated on a case-by-case basis until the Regional Center is established. 7.Presentation Regarding a Revised Economic Development Program Agreement with GE Transportation for Facilities Located Near the Intersection of SH 114 and SH 156 - Robert Sturns, Economic Development Manager, Housing and Economic Development Department Mr. Stums presented a report on a revised economic development program agreement with GE Transportation. In 2011 tax abatement agreements were approved with GE for 2 facilities. Tile agreements were for 10 years and provided 85% abatement on the incremental taxes generated. Plants were completed and began production in 2012. GE has hired almost 300 employees. The capital investment has substantially exceeded estimates, but employment projections have lowered due to updated sales projections. GE has approached the City with a request to revise the incentives packages provided. Recommendation is to terminate the tax abatement agreement with GE Transportation and enter into a 10 year Economic Development Program agreement providing for a maximum grant based on 55% of the incremental ad valorem taxes with provisions for bonus grant payments based on employment. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE FEBRUARY 05, 2013 Page 4 of 4 8.Requests for Future Agenda Items -Joel Bums, Chair Committee member Scarth requested a report on the Housing and Economic Development — Northeast Tarrant County Economic Development Summit. 9.Date of Next Regular Meeting- March 5, 2013 -Joel Burns, Chair 10.Adjourn -JoelBurns, Chair With no further presentations or discussions, Chairman Joel Bums adjourned the regular meeting of the Fort Worth Housing and Economic Development Committee at 1:55 p.m., on Tuesday, February 5, 2013. These minutes approved by the Fort Worth Housing and Economic Development Committee on the 2nd day of April, 2013. APPROVED: Jo K Burns, Chair Minutes Prepared-byynd Attest: V Mary J. Ka C S retary C