HomeMy WebLinkAbout2012/04/03-Minutes-Fort Worth Local Development Corporation (FWLDC)CITY OF FORT WORTH, TEXAS
FORT WORTH LOCAL DEVELOPMENT CORPOR.ATION
CALLED — SPECIAL S�SSION
TUESDAY, APRIL 3, 2012
Present:
Vice President Danny Scarth
Treasurer W. B. "Zim" Zimmerman
Trustee Betsy Price
Trustee Dennis Shingleton
Trustee ICathleen Hicks
Trustee Joel Burns
Absent�
President Frank Moss
Trustee Salvador Espino
Trustee Jungus Jordan
Ci staff:
Fernando Costa, Assistant City Manager
Peter Vaky, Deputy City Attorney
Ron Gonzales, Assistant City Secretary
Cynthia Garcia, Administrator
Other staff:
Tom Higgins, City Manager
Robert Sturns, Economic Development Manager, Housing & Economic Development Dept.
Robin Bentley, Cornmunity Development Manager, Housing & Economic Development Dept.
Henry Day, Senior Management Analyst, Housing & Economic Development Deparhnent
LeAnn Guzman, Senior Assistant City Attorney
1. Call to Order.
With a quorum present, Vice President Scarth called the meeting to order for the Board of
Directors of the Fort Worth Local Development Corporation (Corporation) at 2:13 p.tn, on
Tuesday, April 3, 2012, in the Pre-Council Chamber of the Foi�t Worth Municipal Building, 1000
Throckmoi�ton Street, Fort Worth, Texas, President Franlc Moss, and Trustees Salvador Espino
and Jungus Jordan absent.
2. Approval of Minutes of the March 6, 2012, Meeting.
Vice Presidant Scarth opened the floor for a motion on the approval of the minutes of the
Tuesday, March 6, 2012, meeting.
CITY OT rORT WORTH, TEXAS
FORT WORTH LOCAL DEV�LOPM�NT CORPORATION
CALLED - SP�CIAL SESSION
TUE5DAY, APRIL 3, 2012
PAGE3
5. Discussion and Consideration of Resolutiott to Authorize a Lease of the Retail Space in
the Houston Street Garage at 1100 Houston 5treet from the City of Fort Worth and
Authorize �mployment of Kelly, Hart, and Hallman for Preparation of Condominium
Documents in an Amount up to $8,000.00 for the Lease.
6. Discussion and Consideration of Resolution to Authorize Sublease of the Retail Space in
the I3ouston Street Garage at 1100 Houston Street with Lancaster Corridor
Redevelopment, LLC.
Ms. Garcia addressed the Coiporation regarding the proposed resolutions. Using a
PowerPoint presentation entitled "Lease of Retail Space in Houston Street Garage & Sublease to
Lancaster Corridor Redevelopment, LLC", Ms. Garcia displayed an aerial photo that reflected
the Houston Street Parking Garage, the Omni Hotel and the Fort Worth Convention Center, She
explained that the retail space in the garage was approximately 23,700 square feet and provided
the following background information:
In 2005 the City entered into an agreement with Omni Fort Worth Partnership,
L.P., (Omni) allowing Omni to lease the retail space on the City's behal£
o Omni's right to lease the retail space terminatad two (2) years after their
hotel opened,
o The hotel's grand opening was in January 2009, so the agreernent
terminated January 2011.
o During the term of the agreement, Omni did not lease any of the retail
space.
City has approached the Fort Worth Local Development Corporation (FWLDC)
to lease and manage the space.
Ms. Garcia advised the Corporation Board of the lease recommendation as follows:
• Lease the retail space from the City for the terms indicated.
o$10.00 per square foot for 5,000 square feet on Houston closest to the
Omni.
o Lease is "As is".
o No rent due during the first six (6) months.
o Triple Net — FWLDC would pay taxes, insurance and maintenance.
Sublease the retail space to the Lancaster Corridor Redevelopment, LLC, on
terms they negotiate with tenants.
Ms. Garcia's next slide, "Option to Purchase Recommendation", provided the below
information:
Upon entering lease with the City, study option of purchasing retail space from
City.
Steps to Purchase
CITY OI+' F'ORT WORTH, TEXAS
rORT WORTH LOCAL D�V�LOPM�IVT CORPORATION
CALLED - SPECIAL SES5ION
TU�SDAY, APRIL 3, 2012
PAG�4
o Obtain appraisal — City will sell for Fair Market Value.
o Payment Terms to be negotiated,
■ Terms to be presented to Corporation Board in May 2012.
o FWLDC pays all costs to condo the space,
■ Hire Kelly Hart and Hallman to condo the space.
• Benefits to FWLDC:
o FWLDC obtains an asset that compliments Lancaster Project.
Ms. Garcia advised of the next steps for this initiative as reflected below:
• Enter into lease with the City for the retail space.
• Enter into a sublease with the Lancaster Corridor Redevelopment, LLC, for the
terms negotiated with the tenant,
• Hire Kelly Hart and Hallman to prepare condo documents.
• Review appraisal to purchase retail space and negotiate tarms.
Vice President Scarth opened for 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 Burns and seconded by Director Price, the
Board voted unanimously 6 ayes and 0 nays, with President Moss and Trustees
Espino and Jordan absent, to approve Resolution Nos, FWLDC FWLDC-2012-04
and FWLDC-2012-05. The motion carried.
7. Requests for Future Agenda Items.
Vice President Scarth opened the floor on requests for future agenda items. No requests
were made by Board members,
8. Adjourn.
With no further discussion, Vice President Scarth adjourned the called — special session
of the Fort Worth Local Development Corporation Board at 2:18 p,m. on Tuesday, April 3, 2012,
These minutes approved by th
Directors on the Sth day of June, 2012.
� Board of
CITY OF rORT WORTH, T�XAS
TORT WORTH LOCAL D�V�LOPM�NT CORPORATION
CALL�D - SP�CIAL S�S5ION
TU�SDAY, APRIL 3, 2012
PAG� 5
ATTEST:
Dennis Shingleton
Secretary
Prepared and respectfully submitted by:
�. %� ��»
onald P. Gonzales, C/CMC
Assistant City Secretary