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Home My WebLink About2013/11/05-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION TUESDAY, NOVEMBER 5, 2013 Present: President Salvador Espino Vice President Danny Scarth Director Betsy Price Director W. B. "Zim" Zimmerman Director Gyna Bivens Director Jungus Jordan Director Dennis Shingleton Director Kelly Allen Gray Director Joel Burns City staff: Fernando Costa, Assistant City Manager Vickie Ganske, Senior Assistant City Attorney Gerald Pruitt, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Assistant General Manager Cynthia Garcia, Administrator Jean Petr, Gas Lease Program Manager 1. Call to Order. With a quorum present, President Espino called the meeting to order for the Board of Directors of the Fort Worth Housing Finance Corporation (Corporation) at 11:45 a.m. on Tuesday, November 5, 2013, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throckmorton Street, Fort Worth, Texas. 2. Approval of Minutes of the August 6, 2013, Meeting. Motion was made by Director Burns and seconded by Director Price to approve the Tuesday, August 6, 2013, minutes of the Corporation as presented. The motion passed 9-0. 3. Election of Secretary: President Espino opened the floor for nominations for Secretary to the Fort Worth Housing Finance Corporation. Motion was made by Director Shingleton and second by Director Price that Gyna M. Bivens be elected as Secretary for the Fort Worth Housing Finance Corporation. The motion passed 9-0. CITY OF FORT WORTH,TEXAS FORT WORTH HOUSING FINANCE CORPORATION TUESDAY,NOVEMBER 5,2013 PAGE 2 4a. Written Reports: Fort Worth Housing Finance Corporation Financial Report through September 30, 201-3. President Espino referenced the Financial Report through September 30, 2013, and opened the floor for discussion on the report. There was no discussion or action on this agenda item. 5. Consider and Adopt Resolution Approving the Budget for the 2013-2014 Fiscal Year. Director Bums left his place at the table at 11:48 a.m. Mx. Jay Chapa, Assistant General Manager, advised the Board of the actual revenue for FY 2012-2013 ($181,015.35) and the projected revenue for FY 2013-2014 ($1,189,090.00) and pointed out that the increase was due to revenues associated with the partnerships that the FWHFC had entered into on various projects. He advised that on the expenditure side it was status quo and the increase was associated with salaries for oversight of HFC projects. Motion was made by Director Shingleton and seconded by Director Bivens to approve Resolution FWH.FC-2013-05. The motion passed 8-0, with Director Bums absent. 6. Consider and Adopt Resolution to Ratify a Natural Gas Lease with Vantage Energy for 1820 S. Cravens Road. Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, began her presentation by providing background information on the project. She stated that at the beginning of October, Vantage Fort Worth Energy, LLC sent letters to the City requesting the City voluntary pool. in the Rosedale North thiit. She added that the offer letter served as notice that a Mineral Interest Pooling Act (MIPA) would be invoked and that when the act was invoked there were time sensitive deadlines. She further stated that in this particular case the City received a letter dated October 1, 2013, which was shortly followed by a hearing notice from the Railroad Commission stating that the hearing would take place October 31, 2013 and November 1, 2013, thus leaving very little time for the city to make a decision. She advised that the MIPA letter provided options to lease the property, participate as working interest owner, or participate in a Farmout Agreement. She stated that the City had always chosen to lease because that way the City received payment instead of paying out, which was quite expensive. She pointed out that the City would receive $1,536.00 a total bonus for leasing the 0.512 acres; however, if the City chose the working interest option, the City would have to pay $32,313.00. Ms. Petr continued by stating that in closed session on October 15, 2013, staff recommended to execute a lease immediately and to ratify it in public session and that a $3,000.00 bonus was received with a 25 percent royalty, two-year term and no surface use. She also stated that all necessary actions were taken for protection of the Corporation's interest. She advised that staff recommended the Board ratify the natural gas lease for 1820 S. Cravens. CITY OF FORT WORTH,TEXAS FORT WORTH HOUSING FINANCE CORPORATION TUESDAY,NOVEMBER 5,2013 PAGE 3 Motion was made by Director Shingleton and seconded by Director Price to approve Resolution FWHFC-2013-06. The motion passed 8-0, with Director Bums absent. 7. Consider and Adopt Resolution to Hire John Shackleford as Legal Counsel for the Corporation and Decatur-Angle GP, LLC for the Decatur-Angle Housing Tax Credit Project. Director Bums returned to his place at the table at 11:56 a.m. Mr. Jay Chapa, Assistant General Manager, advised that on August 6, 2013, the Board approved, with the concurrence of the Law Department, the formation of Decatur-Angle GP, LLC. He stated that Mr. Shackleford's firm worked with the HFC on previous projects and the firm was experts in this area. He added that the master agreement, formation of Decatur-Angle GP, LLC and the application overall would be covered by Mr. Shackleford. He completed his presentation by advising staff recommended approval of the resolution to hire John C. Shackleford of Shackelford, Melton & McKinley, LLP, as legal counsel, in the arnount not to exceed $70,000.00 for the Corporation and Decatur-Angle GP, LLC in connection with the development of the Landings at Marine Creek Apartments, a Housing Tax Credit Development. Motion was made by Director Price and seconded by Director Zimmerman to approve Resolution FWHFC-2013-07, The motion passed 9-0. S. Consider and Adopt Resolution to Hire Ralph Duggins as Legal Counsel for the Corporation and The Villas of Eastwood Terrace, LLC to File Suit Against Chesapeake Operating, Inc., and Total E&P (USA) Inc., Over Lease Royalty Payments. Mr. Gerald Pruitt, Deputy City Attorney, advised that the City of Fort Worth has filed suit against Chesapeake Operating, Inc., and that this action would allow the Corporation to join in the lawsuit. Motion was made by Director Shingleton and seconded by Director Scafth to approve Resolution FWHFC-2013-08. The motion passed 9-0. 9. Executive Session. President Espino stated that he had been advised that an Executive Session was not necessary to discuss the following items: A. Seek the advice of its attorneys concerning the following 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 Goverment Code: (i) legal issues concerning any current agenda item; and CITY OF FORT WORTH, TEXAS FORT WORTH HOUSING FINANCE CORPORATION TUESDAY,NOVEMBER 5,201.3 PAGE 4 B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. 1.0. Requests for Future Agenda Items. President Espino opened the floor on requests for future agenda items. No requests were made by Board members. IL Adjourn. With no further discussion, President Espino adjourned the meeting of the Fort Worth Housing Finance Corporation Board at 11:58 a.m. on Tuesday, November 5, 2013, These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 28'h day of January, 2014. APPROVED: C3 Q Salvador Espino, President ................. Gyna M. Bivens Secretary ATTEST: ................ Mary J. Kay, City Secretary"'� CITY OF FORT WORTH,TEXAS FORT WORTH HOUSING FINANCE CORPORATION TUESDAY, NOVEMBER 5,2013 PAGE 4 B. Discuss the purchase, sale, lease or value of real property, as authorized by Section 551.072 of the Texas Government Code. Deliberation in an open meeting would have a detrimental effect on the position of the Corporation in negotiations with a third party; and C. Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. 10. Requests for Future Agenda Items. President Espino opened the floor on requests for future agenda items. No requests were made by Board members. 11. Adjourn. With no further discussion, President Espino adjourned the meeting of the Fort Worth Housing Finance Corporation Board at 11:58 a.m. on Tuesday, November 5, 2013. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 28`h day of January, 2014. APPROVED: Salvador Espino, AGyyna Bive�ns President Secretary ATTEST: )y J. K a City Secret 1,