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HomeMy WebLinkAboutIR 7284 -51 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7284 P.I ,,pp May 10, 1988 To the Mayor and Members of the City Council 0 0010- J 1, �QFFORr � P Subject: LAKE WORTH LEASE RECLAMATION PHASES II , III , AND IV 1871) Lakes are typically one of the most prized assets of a community . Many persons looking at a map of Fort Worth would probably make the assumption that Lake Worth is an attractive community feature. Persons visiting Lake Worth for the first time are surprised to see the deteriorated conditions and the lack of first-class public facilities. The City of Fort Worth needs to strike out in a new direction to bring Lake Worth back into prominence as well as to make it a valuable asset for recreational and tax purposes for the City of Fort Worth. Lake Worth should be an extremely valuable and attractive resource for the citizens of Fort Worth. It continues to be a critical element of our water supply. In past years, it was one of the major recreational areas of the City. Well known national entertainers performed at Casino Beach there, and the lake was an active city recreational area . Over the years , however , decisions have been made which have had the effect of making the body of water and its surroundings a private lake primarily for the use of indivi- duals with residential leases from the City. The privately managed recre- ational facilities have deteriorated over the years, and there are no longer first-class attractions appealing to a broad spectrum of the citizens of Fort Worth. Lake Worth tends to attract usage by persons living outside the City of Fort Worth in adjacent communities or in unincorporated areas. op" The decline of Lake Worth as a major City- asset has occurred over the years and has been caused by various factors. The issue that must be faced by the City now is whether or not steps will be taken to make Lake Worth an attractive City-wide resource which also has economic benefit. The lake has excellent advantage in terms of location and is well-served by the existing roadways and bridges. The City owns substantial amounts of land in the Lake Worth area as the result of the lake being part of our water supply. The basic long-term question before City Council is what can be done to improve the undesirable conditions in the Lake Worth area while respecing the various legal rights which have been granted to persons living there on City land. This brief status report is intended to highlight the essential problem and to recommend a change in direction. The City has been basing its decisions on a study done several years ago which may no longer have relevance to all of today's issues. New strategies need to be developed and implemented to create a more desirable situation at Lake Worth and to restore it to the importance and value that it should have. The essential first step in developing a new strategy is for the City to identify the areas of opportunity which should be examined for possible public-private partner- ships or for commercial redevelopments compatible with the overall land use and recreational objectives of Lake Worth. The discussion below recommends that the City not go forward with the purchases under Phase II at this time, unless there are compelling reasons to do so. It also suggests that the 0P11*1 focus should turn to better maintenance of existing City-managed properties and the preparation of Request for Proposals to find out whether there are desirable development opportunities on strategic pieces of Lake Worth land. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS i INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7284 0.2 �'p�rpfa May 10, 1988 U'rx To the Mayor and Members of the City Council Subject: LAKE WORTH LEASE RECLAMATION PHASES II , III , AND IV +07} FUTURE PLANS FOR LAKE WORTH The staff Lake Worth Management Group was asked to make a recommendation about the future of Lake Worth. More specifically, they were asked whether or not to recommend proceeding with the original Carter and Burgess Plan to turn more of the Lake Worth waterfront area into park by proceeding with the lease reclamation of Phases 2, 3 and 4. It is the Lake Worth Management Group' s recommendation that Phases 2, 3, and 4 not be pursued at this time, that lease reclamation stop where it is now, and that we consolidate the existing park sites and improve them. Leases in the three phases would be extended to coincide with the termination of other leases. Also, the City should develop RFPs to determine whether there are compatible commercial uses which can become attractive, revenue-producing properties. There are major reasons why the Lake Worth Management Group came to this conclusion. The remainder of this report is concerned with presenting the data considered, which I believe supports the recommendation. 1) Cost of Reclamation and Lease Revenue The total revenue generated by lease payments for 1986-87 was $429,920. The projected lease revenue for 1987-88 is $407,943. In 1988-89, this amount is expected to increase by about $50 ,000 due to the recently adopted higher commercial rates. The expected cost of the entire Lease Reclamation effort will be about $4,112,292. The table below reflects the breakdown: Phase 2 Phase 3 Phase 4 Partials Purchase of Improvements $1,687,500 $911,250 $761,250 $4001,000 Demolition 80,388 43,416 41,488 80,000 Appraisal & Closing 501,000 20,000 17,000 20,000 As the leases are reclaimed, revenues will decrease. Completing all four phases will result in a loss of at least $40,000 per year since 34 full leases and 32 partial leases would be removed from revenue generation. Another way to look at the lease reclamation effort is that it will require all of 10 full years of lease revenue to complete the acquisition of leases. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7284 p.3 To the Mayor and Members of the City Council MAY 10, 1988 X �fl�coRr�m 1873 Subject: LAKE WORTH LEASE RECLAMATION PHASES II , III , AND IV 2) The Cost and Quality of Maintenance The cost of maintenance for 1987-88 for Lake Worth will total $354 ,903 (includes park maintenance, park police, and lease agent) . The projected cost for 1988-89 is $372,849. As the amount of park land increases , the cost of maintenance will increase as well . It is certain that the park police force will have to be increased to cope with additional park area. The Park Department is doing everything possible to maintain the parks but the roads are falling apart; The dam requires maintenance as a result of off-road vehicle traffic. Complaints of dumping, sewage discharge, etc. are frequent, and police problems are reported continually . There is little doubt that in order to maintain the parks and the Lake Worth area at an acceptable level , staffing and maintenance funding must be increased . To increase the amount of park space in light of the City' s inability to adequately care for and protect what we already have would be foolhardy. 3) Expansion of Revenue Enhancement Efforts and Private Party Involvement The experience of commercial ventures at Lake Worth is somewhat erratic , The City's attempt to get a marina established under the bridge has not been successful , and foreclosure on the Castle property is imminent. One commer- cial lease, though, is doing quite well . A little more than two years ago, an entreprenuer approached the City asking to lease a large tract that had been an on-going illegal dumping problem. He developed a well-maintained , well-operated driving range that has become so successful that an 18-hole , par 3 golf course is being added. It is the judgment of the Management Group and my recommendation that the best way to enhance the lake and to increase its revenue potential is to encourage private sector investment, with some City assistance . To encourage the private sector to invest in the lake area, the City must demonstrate that it can maintain a clean, attractive area that will attract people. This will require a substantial investment, and some lease revenue should be utilized in that effort. The first step has been taken by the allocation of reclamation money to rehabilitate the house at 7601 Cahoba Drive. This facility will be a Park Police and Water Quality Headquarters and will officially establish a "City presence" at the Lake. The office will be staffed during working hours and radio communication with Park Officers will be available. This should make a significant difference in the policing effort at the Lake, and the dam will be better controlled with Water Department personnel on-site. But this is only a small first step. The City must enhance the maintenance of City- owned improvements as well as continue to preserve the environment. It also will be difficult to attract private investment if all of the prime sites are consumed by park land . Thus , we must leave enough desirable waterfront open to attract water-related recreational ventures. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS .0 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7284 p.4 MAY 10, 1988 To the Mayor and Members of the City Council Subject: LAKE WORTH LEASE RECLAMATION PHASES 11 , 111 , AND IV Another project that should contribute to the attraction of private interests is the dredging of the Lake. The recent contract awarded to the Corps of Engineers under the Clean Lakes Program grant will result in some preliminary information that will be helpful in determining the feasibility and potential costs of a major dredging effort. Also, $250,000 was included in the FY 88 Congressional budget for the Corps to complete such a study . Staff has been working with the City' s Washington representative to move the project forward. Depending on the results of the feasibility study , the next step would be to secure project dollars - probably 25 percent would have to be local funds. Staff welcomes the opportunity to discuss this issue with the Council at the Tuesday, May 10th, Pre-Council meeting. Because Lake Worth issues appear infrequently on any of our "crisis" lists, it is all to easy to lose sight of the Lake' s community-wide value in meeting our water needs as well as its potential as an attractive recreation resource for our citizens and a positive addition to our tax base. Jouy g'las Harman City M City Manager DH:kc/ncr ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS