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Home My WebLink About2013/11/05-Minutes-Fort Worth Local Development Corporation (FWLDC) CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION TUESDAY, NOVEMBER 5, 201.3 Present: President Danny Scarth Vice President Gyna Bivens Treasurer W. B. "Zim" Zimmerman Trustee Betsy Price Trustee Salvador Espino Trustee Jungus Jordan Trustee Dennis Shingleton Trustee Kelly Allen Gray Trustee Joel Bums City staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Gerald Pruitt, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Administrator Jean Petr, Gas Lease Program Manager 1. Call to Order. With a quorum present President Scarth called the meeting to order for the Board of Directors of the Fort Worth Local Development Corporation (Corporation) at 11:59 a.m. on Tuesday, November 5, 2013, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Throck-morton Street, Fort Worth, Texas. 2. Approval of Minutes of the August 6, 2013, Meeting. President Scarth opened the floor for a motion on the approval of the minutes of the Tuesday, August 6, 2013, meeting. MOTION: Upon a motion made by Trustee Bivens and seconded by Trustee Espino, the Board of Directors voted unanimously 9 ayes and 0 nays to approve the August 6, 2013, minutes of the Corporation as presented. The motion carried. 3a. Written Reports: Fort Worth Local Development Corporation Financial Report through September 30, 2013. President Scarth referenced the Financial Report through June 30, 2013, and opened the floor for discussion on the report. There was no action or discussion on this item. CITY OF FORT WORTH,TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION TUESDAY, NOVEMBER 5,2013 PAGE 2 3b. Written Reports: Memo on Financial Status of 4700 Blue Mound Road. President Scarth referenced the memo on Financial Status of 4700 Blue Mound Road, and opened the floor for discussion on the memo. There was no action or discussion on this item. 4. Consider and Adopt Resolution Approving the Budget for the 2013-2014 Fiscal Year. Mr. Jay Chapa, Administrator, provided a summary of the actual Corporation's FY-2012-2013 budget pertaining to revenue of$1,149,191.66. He pointed out that the majority of the revenue was derived from the property on Blue Mound Road. He stated that the expenditures overall the total costs of nearly $1 M in expenditures, the majority of which was associated with the property on Blue Mound Road ($698,729.14). He added that the FY 2013-2014 proposed budget on the revenue side was $760,919.90 and on the expenditures side there would be a reduction to $511,642.00 on the Blue Mound Road property. He further stated that there would be an excess of revenues over expenditures of$136,157.00 President Scarth expressed concern with the $511,642.00 figure for the Blue Mound Road property and asked staff to clarify the amount as it did not appear to add up and appeared to be short. Mr. Chapa stated that he was unsure what the difference in the calculation was and advised the Board that approval of the budget could be delayed until the next scheduled meeting. MOTION: Upon a motion made by Trustee Shingleton and seconded by Trustee Zimmerman, the Board voted unanimously 9 ayes and 0 nays, to delay voting on this item until the next scheduled FWLDC meeting. The motion carried. (See ,further consideration of this item on Page 3) 5. Consider and Adopt Resolution Authorizing Execution of a Natural Gas Lease with Vantage Fort Worth Energy, LLC for Property at 5425 E. Berry Street. Ms. Jean Petr, Gas Lease Program Manager, Planning and Development Department, provided the background by advising the Board that this lease would be at the Rosedale South Unit and that the Mineral Interest Pooling Act did not pertain to this property. She added that it would be leased for $3,000.00 per acre and that the property was 0.4304 mineral acres which would provide a $1,291.20 total bonus. She further stated the lease was for a 25 percent royalty, two- year term and that there was no surface use allowed. She displayed a map of the location and stated that the lease terms were above Current market value and standard use of the Corporation lease form, staff recommendation was that the Board authorize the execution of a natural gas lease for the property. MOTION: Upon a motion made by Trustee Shingleton and seconded by Trustee Zimmerman, the Board voted unanimously 9 ayes and 0 nays, to approve Resolution No. FWLDC-2013-06. The motion carried. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION TUESDAY, NOVEMBER 5,2013 PAGE 3 6. Consider and Adopt Resolution Authorizing the Retention of Ralph Duggins and Cantey Hanger LLP as Outside Legal Counsel to File Suit Against Chesapeake Operating, Inc., and Total E&P (USA, Inc., Over Lease Royalty Payments to the Corporation. There was no presentation or discussion on this item. MOTION: Upon a motion made by Trustee Price and seconded by Trustee Zimmerman, the Board voted unanimously 9 ayes and 0 nays, to approve Resolution No. FWLDC- 2013-07. The motion carried. Assistant City Manager Fernando Costa advised that staff had additional information pertaining to the 2013-2014 Local Development Corporation budget and asked that Item 4 on the agenda item be reconsidered. MOTION: Upon a motion made by 'Trustee Price and seconded by Trustee Zimmerman, the Board voted unanimously 9 ayes and 0 nays, to approve reconsider Item 4 on the agenda. The motion carried. 4. Consider and Adopt Resolution Approving the Budget for the 201.3-2014 Fiscal Year. Mr. Jay Chapa, Administrator, advised the Board that staff performed calculations and that the figures were correct. MOTION: Upon a motion made by Trustee Bums and seconded by Trustee Bivens, the Board voted unanimously 9 ayes and 0 nays, to approve Resolution No. FWI.DC- 2013-08. The motion carried. 7. Executive Session — President Scar-th 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 Government Code: (1) legal issues concerning any current agenda item; and 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 related to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. CITY OF FORT WORTH, TEXAS FORT WORTH LOCAL DEVELOPMENT CORPORATION TUESDAY, NOVEMBER 5,2013 PAGE 4 8. Requests for Future Agenda Items. President Scarth opened the floor on requests for future agenda items. No requests were made by Board members. 9. Adjourn. With no further discussion, President Scarth adjourned the meeting of the Fort Worth Local Development Corporation Board at 12:09 p.m. on Tuesday, November 5, 2013. These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on the 4th day of February 2014. PRO Danny Sca# President ATTE& Dennis S gleton Secret;ary * Prepared and respectfully subm�toted by: Mary J. Kayser,,°t�&C/CMO City Secretary