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Home My WebLink About2011/09/08-Minutes-Central City Local Government Corporation (CCLGC)CITY OF FORT WORTH, TEXAS FORT WORTH CENTRAL CI'�'Y LOCAL GOVERNIVIENT CORPORATION CALLED — SPECIAL SESSION IVIINUTES TUESDAY, SEPTEMBER 8, 20ll Present: President Kathleen Hicics Vice President Jungus Jordan Director Betsy Price Director Salvador Espino Director W. �. "Zim" Zimmei-�nan Director Danny Scarth Director Franlc Moss Director Dennis Shingleton Director Joel Burns Absent: Director Roy Brooks City staff: Susan Alanis, Assistant City Manager Deputy City Attorney Peter Valcy Ronald P. Gonzales, Assistant City Secretary Jay Chapa, Director, Housing & Economic Development Department Other Cit.y Staff in attendance included: Toin Higgins, Interim City Manager Cynthia Garcia, Assistant Director, Housing & Economic Development Depar-tinent LeAnn Guzman, Assistant City Attorney Robert Sturns, Econoinic Development Manager, Housing & Economic Development Dept. Henry Day, Senior Management Analyst, Housing & Econoinic Development Department Call to Order (Agenda Item 1) With a quorum of the Board Members present, President Hicks called the meeting to order for the Board of Directors of the Fort Worth Ceureal City Local Goveriunent Corporation at 9:07 a.m. on Thursday, September 18, 201 l, in the Pre-Council Chamber o� the Fort Woi�Yh Municipal Building, 1000 Tluocicmoi-ton Street, Fort Woi-th, Texas. CITY OF TORT WORTH, TEXAS rORT WORTH C�NTRAL CITY LOCAL GOVERNM�NT CORPORATION CALLED - SPECIAL SESSION THURSDAY, S�PTEMBER 8, 2011 PAG� 2 Approval of Minutes from Meeting Held on November 15, 2005 President Hicics opened the floor for a motion on the minutes. (Agenda Item 2) MOTION: Upon a motion made by Director Espino and seconded by Director Moss, the Corporation Board voted unaniinously nine (9) "ayes" and zero (0) "nays", with Director Broolcs absent, to approve the minutes of the November 15, 2005, meeting of the Central City Local Govermnent Corporation. The motion canied. Clection of Officers (Agenda Item 3) Ms. Susan Alanis, Assistant City Manager, advised that there were a few appointments that needed to be made and pointed out that the previous Treasurer was no longer an employee of the City. She aslced that the board accept nominations for President and Vice President and noted that the Secretary and Treasurer positions were custoinarily iilled by City Secretary Marty Hendrix and Financial Management Services Director Lena Ellis. President Hicks opened the floor for a discussion on this issue. There being no discussion, President Hicics opened the floor for a motion. MOTION: Upon a motion made by Director Burns and seconded by Director Espino, the Corporation Board voted unanimously nine (9) "ayes" and zero (0) "nays", with Director Broolcs absent, to appoint Kathleen Hicics as President, Jungus Jordan as Vice President, Marty Hendrix as Secretaiy and Lena Ellis as Treasurer for the Central City Local Government Corporation, effective September 8, 20ll. The motion carried. Overview of Purpose and Duties of the Central City Local Government Corporation (Agenda Item 4) Mr. Peter Valcy, Deputy City Attorney, presented the overview of the purpose and duties of the duties of the Central City Local Government Corporation (CCLGC). Using a PowerPoint presentation, Mr. Valcy advised of the following pertaining to local governinent corporations: • State authorizes the creation of local government corporations to aid and act on behalf of cities and counties. Mr. Valcy cic�i•ifiec� t1��at tlzis cof por�atio�r board slioarlcl not be co�zfi�secl with the Fo��t tiYorth Local De��elopment Co�poration. He advisec� that cz loc�al gove��nm�ent coi poration was an c�>>ailable tool for ��it�nicipczlities to �use in, ar�7.ong other things, the financing of'pa�blic f�cilities. • Benefits CITY Or I+ORT WORTH, T�XAS I+ORT WORTH C�NTRAL CITY LOCAL GOV�RNMENT CORPORATION CALLED - SPECIAL SESSION THURSDAY, SEPTEMBER 8, 2011 PAGE3 Overview of Purpose and Duties of the Central City Local Government Corporation (cont'd) (Agenda Item 4) o Can issue bonds or other financing instruments without City bacicing. o Liability protections. o Sovereign immunity (governmental function). Mr. Vaky transitioned to the next slide regarding the purpose of the CCLGC and advised that the City also had two other local government corporations: The Lone Star Local Government Corporation which was created to assist in the construction of public iinprovements and facilities at the Cabela's site in Far North Fort Worth and the Service Center Local Government Corporation which was used to issue bonds to help construct the Jaines Avenue Service Center, He stated that the purpose of the CCLGC was to assist the City in implementing the project plans for Tax Increinent Reinvestment Zones (TIFs) located in the Central City in order to promote, develop, encourage and maintain employment, commerce, economic development and public facility development in the Central City. He added that the specific catalyst for creation of the CCLGC was the desire of the Southside TIF to help finance the construction of a parlcing gaiage in the development at Alston Avenue and Magnolia lcnown as the Magnolia Green Parking Garage. He displayed a slide that depicted two inaps of Magnolia Village where the parking garage was located. He then displayed a slide that depicted a rendering of the parking garage as well as a photograph of the existing facility. He stated that the desire was to have a inulti-level parlcing �arage that would occupy a smaller footprint than a surface parking lot and allow that development to have a residential component. He added that this model was actually different than the Downtown TIF had followed as the Downtown TIF leased parlcing garages and the Magnolia Green Pariciilg Garage was owned by the public, by the CCLGC. He pointed out that once the loan that the CCLGC took out was satisfied, this asset would be owned by the CCLGC. He added that Jay Chapa, Director of the Housing and Economic Developinent Department would provide more details of the financing of the parking garage. Discussion and Consideration of First Amendment to Promissory Note with JP Morgan Chase Banlc, N.A., for the Magnolia P�rlcin� Gara�e Development (Agenda Item 5) Mr. Jay Chapa, Director, Housing and Economic Developinent Department, advised that the purpose of the presentation was to provide information on the refinancing the Magnolia Paricing Garage Development to provide some savings to the TIF in the overall financing of the project. He added that the proposal was brought to staff by Mr. Paul Paine the Administrator of the Southside TIF. Mr. Chapa began his PowerPoint Presentation by providing the following information regarding the Magnolia Green Parlcing Garage: CITY OF FORT WORTH, TEYAS I�'ORT WORTH C�NTRAL CITY LOCAL GOVERNMENT CORPORATION CALLED - SPECIAL SE55ION THURSDAY, SEPTEMBER 8, 2011 PAGE 4 Discussion and Consideration of First Amendment to Promissory Note with JP Morgan Chase Banlc, N.A., for the Magnolia Parkin� Gara�e Development (cont'd) (Agenda Item 5) • Central City Local Government Corporation owns the land and iinprovements. • Purchase of land and construction of the parking garage was financed through a $4 million loan from JPMorgan Chase Banlc. • Southside TIF pays all installinents and any other financial obligations under the loan. • Red Oalc Realty, LLC, manages garage under a contract with the CCLGC. Mr. Chapa's next slide contained a photograph of the existing garage which was followed by another slide containing information on the loan as reflected below: • $4 inillion • 10-year tei-�n • Payable in amlual installments each June 30 • Maturity Date: June 30, 2015 • Interest Rate: 6.12% He then advised the Corporation Board of the proposed financing as follows: • $1,375,843.00 Outstanding Principal Balance. • 2.50% Proposed Ainended Interest Rate. • Maturity Date: June 30, 2014 • Payable in Annual Installments each June 30. o $546,565.83 — June 30, 2012 o $546,565.83 — June 30, 2013 o TBD (Balance due on principal + interest) June 30, 2014 • $200,000.00 Approxiinate Savings. Mr. Chapa stated that the recommendation of staff was that the Corporation Boai•d adopt a resolution authorizing execution of the First Amendment to Promissoiy Note with JPMorgan Chase Banlc, N.A. President Hicics opened the floor for discussion on tlus issue. President Hicics stated that the Medical District Southside TIF unanimously approved this issue last weelc. She aslced Mr, Chapa if the parking garage was being used. CITY Or TORT WORTH, TEXAS I�'ORT WORTH C�NTRAL CITY LOCAL GOV�RNMENT CORPORATION CALL�D - SPECIAL S�SSION THURSDAY, S�PTEIVIB�R 8, 2011 PAG� 5 Discussion and Consideration of First Amendment to Promissory Note with JP Morgan Chase Bank, N.A., for the Magnolia Parlcin� Gara�e Development (cont'd) (Agenda Item 5) Mr. Chapa responded that the garage was especially used when there was various events held on Magnolia. He also noted that there were soine leased spaces to the actual businesses in the area that provided a revenue stream to the area. President Hicics commended Mr. Paul Paine for what he was doing in this area especially with the difficult economy. She added that they continued to do an extraordinary job which was demonstrated in all the items that were brought forward. There being no further discussion, President Hicics asiced Deputy City Attorney Valcy for clarification on the direction the Corporation Board needed to take at this point. Mr. Vaky advised that the Corporation Board needed to authorize execution of the amendinent to the promissory note and added that there was a resolution for consideration. MOTION: Upon a inotion made by Director Burns and seconded by Director Shingleton, the Corporation Board voted unanimously nine (9) "ayes" and zero (0) "nays", with Director Brooks absent, that Resolution No. CCLGG2011-01 be adopted. The motion carried. EYecutive Session (Agenda Item 6) President Hicics stated that she had been advised that an Executive Session was not necessary on the following items: A. Seek the advice of its attorneys concerning legal issues related to any current agenda items that are exempt from public disclosure under Articie X, Section 9, of the Texas State Bar Rules, as authorized by Section 551.071 of the TeYas Government Code; and B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Govermnent Code. Deliberation in an open meeting would have a detrimental effect on the position of the Board in negotiations with a third party; and C. Discuss or deliberate negotiations relatin� to any econoinic ilegotiations, as authorized by Section 551.087 of the Texas Government Code. This agenda itein was passed over. CITY OI' FORT WORTH, T�XAS I+ORT WORTH C�NTRAL CITY LOCAL GOVERNMENT CORPORATION CALLED - SPECIAL S�SSION THURSDAY, S�PT�IVIB�R 8, 2011 PAGE 6 Requests for Future A�enda Items (Agenda Item 7) President Hicics opened the floor on requests for future agenda items. No requests were made by Board members. Adiourn (Agenda Item 8) With no further business before the Board, President Hicics adjourned the called — special session of the Central City Local Government Corporation at 9:15 a.m. on Thursday, September 8, 2011. These minutes approved by the Central City Local Government Corporation on the 6`�' day of March, 2012. APPROVED: A ST: � _ ,; � � � �_ �; ,. �, r' � � � j�-�.� -, �� , � . _ onald P. Gonzales, S�ec etary n � �l � �,�� G'�--- Kathleen Hicks, President