HomeMy WebLinkAbout2014/03/04-Minutes-Fort Worth Housing Finance Corporation (FWHFC) CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
TUESDAY, MARCH 4, 2014
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 Bums
City sta
Tom Higgins, City Manager
Fernando Costa, Assistant City Manager
Vickie Ganske, Senior Assistant City Attorney
Mary J. Kayser, City Secretary
Jay Chapa, Assistant General 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 3:03 p.m. on Tuesday, March 4,
2014, in the Pre-Council Chamber of the Fort Worth Municipal Building, 1000 Th-rocicmorton
Street, Fort Worth, Texas.
2. Approval of Minutes of the January 28, 2014, Meeting.
Motion was made by Director Jordan and second by Director Price to approve the Tuesday,
January 28, 2014, minutes of the Corporation as presented. The motion passed 9-0.
3a. Written Reports: Fort Worth Housing Finance Corporation Financial Report through
January 31, 2014.
President Espino referenced the Financial 'Report through January 31, 2014, and opened the floor
for discussion on the report. There was no discussion or action on this agenda item.
4. Consider and Adopt Resolution Accepting Assignment of Option from Cypress Equities,
LP to Purchase Land Located in the Evans and Rosedale Area from the City of Fort Worth
for $1,449,290.17
CITY OF FORT WORTH,TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
TUESDAY, MARCH 4,2014
PAGE 2
Mr. Jay Chapa, Assistant General Manager, provided a PowerPoint briefing entitled, "Evans-
Rosedale Project Property Acquisition." He provided the background for the project and then
displayed an aerial view of the project location that reflected the properties under option with
Cypress Equities, LP. He advised of the changed conditions of the project by stating that the
timeline for the creation of jobs through an identified project was approaching. He added that
there was interest in the property for a mix of uses which including housing and stated that the
acquisition of the property outright versus an option agreement allowed for the potential
elimination of the job creation requirements. He concluded his presentation with the staff
recommendation that the Fort Worth Housing Finance Corporation (FWHFC) Board approve the
assignment of the option agreement from Cypress Equities to the FWHFC if a project is not
secured by March 31, 2014, that will meet the required job creation requirements. Mr. Chapa
advised that if the project was assigned to the FWHFC, the FWHFC would expend
approximately $1.5 million for the acquisition of the property to allow for the removal of the job
requirement. He further advised that if acquired, the FWHFC would seed redevelopment
opportunities to either develop housing or recoup funds used to acquire the property. He noted
that the FWHFC is working with Cypress Equities, LP on a potential site that would meet the job
requirements.
There was no discussion by the Board on this item.
Motion was made by Director Shingleton and seconded by Director Allen Gray to approve
Resolution FWHFC-2014-03 Accepting Assignment of Option from Cypress Equities, LP to
Purchase Land Located in the Evans and Rosedale Area from the City of Fort Worth for
$1,449,290.17. The motion passed 9-0.
5. Consider and Adopt Resolution Authorizing an Amendment to the HOME Contract
with the City of Fort Worth for the Lee Townhomes Project, Entering into a CDBG
Contract with the City of Fort Worth for the Acquisition and Demolition or Removal of the
Building and Approval for Use of Up to $600.000.00 in FWHFC General Funds for the
Construction of Homes.
Mr. Jay Chapa, Assistant General Manager, provided a PowerPoint briefing entitled "Lee
Avenue Single Family Infill Project" and advised the Board that this presentation was an
amendment to the original project brought to the Board in 2011. He displayed an aerial view of
the project location then summarized issues associated with this project. Vle stated that the use of
HOME funds required a Section 106 review since federal funds were being used and therefore,
the project must be submitted to the Texas Historic Commission (THC) for review. He added
that T 1 determined that the demolition of the single-family structures and construction of
townhomes would create an adverse impact to historic resources since the area is eligible for
listing in the National Registered of Historic Places (Mr. Chapa noted that the area is not
currently listed). Mr. Chapa stated that mitigation of the adverse impact to be followed in order
to move forward with the proposed project was cost prohibitive and time wise was very lengthy.
CITY OF FORT WORTH, TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
TUESDAY, MARCH 4,2014
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Mr. Chapa advised of the revised project description broke the project into two separate projects.
He stated that using Community Development Block Grant (CDBG) funds, the FWHFC would
acquire 406 and 408 Central Avenue and 1402 Lee Avenue. Then demolition and asbestos
abatement would be performed on a substandard commercial building known as the "Hoover
Building", followed by the construction of two single-family homes to be available to
households earning at or below 80% of Area Median Income (AMI). He displayed pictures of
the project location and stated that the second project would not use federal funds and that the
FWHFC would acquire and demolish four single-family homes (located at 1402, 1404 and 1419
Lee Avenue) and then construct single-family homes on the sites. He added that the new homes
could be sold to households earning up to 120% AMI.
Mr. Chapa informed the Board that the original architectural renderings would be used and that
in October 2012, the FWHFC authorized hiring RPGA Design Group, Inc. to design houses for
the Terrell Heights neighborhood. He stated that staff met with the City's Historic Preservation
Officer and determined which designs were compatible with the Northside neighborhood. He
further stated that the designs were presented and endorsement by the Noi-thside Neighborhood
Association and then displayed four architectural renderings for the Board's review. He advised
that staff recommended the Board authorize the FWHFC to accept up to $300,000.00 of CDBG
funds to acquire and demolish the Hoover Building and amend the HOME contract with the City
to construct two single-family homes to sell to income eligible households. Further, that the
Board authorize the FWIIFC to use up to $600,000.00 in FWHFC General Funds to acquire,
demolish and cause the construction of four single-family homes and to engage a construction
contractor to construct the single-family homes. Mr. Chapa concluded his presentation by
providing the timelines for the Federal Funds Project and the FWHFC Funds Project.
There was no discussion by the Board on this item.
Motion was made by Director Shingleton and seconded by Director Price to approve Resolution
FWHFC-2014-04 Authorizing an Amendment to the HOME Contract with the City of Fort
Worth for the Lee Townhomes Project, Entering into a CDBG Contract with the City of Fort
Worth for the Acquisition and Demolition or Removal of the Building and Approval for Use of
Up to $600.000.00 in FWHFC General Funds for the Construction of Homes. The motion
passed 9-0.
6. 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 Government Code: (1) legal issues
concerning any current agenda item; and
CITY OF FORT WORTH,TEXAS
FORT WORTH HOUSING FINANCE CORPORATION
TUESDAY, MARCH 4,2014
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.
7. Requests for Future Agenda Items.
President Espino opened the floor on requests for future agenda items. No requests were made
by Board members.
S. Adjourn.
With no further discussion, President Espino adjourned the meeting of the Fort Worth Housing
Finance Corporation Board at 3:20 p.m. on Tuesday, March 4, 2014.
These minutes approved by the Fort Worth Housing Finance Corporation Board of Directors on
the I" day of April, 2014.
A P D
RROVED:
alvador Espino,
President
Gyna Nf. Bivens
Secretary
ATTEST:
Mary J. Kay
City Secreta