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Home My WebLink About2014/03/04-Minutes-HEDC CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE March 4, 2014 Present: Committee Member Joel Burns, Chairman Committee Member Danny Scarth, Vice Chairman Arrived at (2:34 pm) Committee Member Betsy Price (arrived at 2:35 pm) Committee Member Salvador Espino Committee Member Kelly Allen Gray (arrived at 2:38 pm) Committee Member W. B. "Zim" Zimmerman Committee Member Jungus Jordan Committee Member Dennis Shingleton Committee Member Gyna Bivens City Staff: Fernando Costa, Assistant City Manager Peter Vaky, Deputy City Attorney Mary J. Kayser, City Secretary Jay Chapa, Housing and Economic Development Director Cynthia Garcia, Assistant Director, Housing & Economic Development Department Other City Staff in Attendance: Tom Higgins, City Manager LeAnn Guzman, Sr. Assistant City Attorney 1. Call to Order—Joel Burns, Chair With a quorum of the committee members present, Chairman Joel Burns called the meeting of the Fort Worth Housing and Economic Development Committee to order at 2:32 pm, on Tuesday, March 4, 2014, in the Pre-Council Chamber of the Fort Worth City Hall, 1000 Throckmorton Street, Fort Worth, Texas 76102. 2. Approval of Minutes from the Meeting Held on February 4, 2014 — Joel Burns, Chair Motion was made by Committee Member Shingleton and second by Committee Member Bivens to approve the minutes of the February 4, 2014, Fort Worth Housing and Economic Development Committee meeting. Motion passed 6-0. (Scarth, Allen Gray, and Price absent) Chairman Joel Burns adjourned the regular meeting of the Fort Worth Housing and Economic Development Committee and convened into Executive Session at 2:34 pm. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE March 4, 2014 Page 2 of 4 3. Executive Session - The Housing and Economic Development Committee will conduct a closed meeting to: • 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: legal issues related to any current agenda items; and • 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 City in negotiations with a third party; and • Discuss or deliberate negotiations relating to any economic development negotiations, as authorized by Section 551.087 of the Texas Government Code. Chairman Joel Bums adjourned the Executive Session at 2: 47 pm, on Tuesday, March 4, 2014. Chairman Joel Bums reconvened the regular session of the Housing and Economic Development Committee at 2:47 pm, on Tuesday, February 4, 2014. 4. Written Reports—Jay Chapa, Director, Housing and Economic Development Department • Memo regarding the Use of Urban Development Action Grant Funds on the Redevelopment of 3900 Hemphill for Retail Use • Memo on FY 2014 Contract for Homeless Services-Directions Home Program Year VI There were no questions on the written reports. 5. Presentation on the Use of Urban Development Action Grant Funds and Tax Abatement for the Rehabilitation of a Commercial Building located at 1.212 E. Lancaster Avenue — Avis Chaisson, Community Development Manager, Housing and Economic Development Ms. Chaisson provided the following development overview of the property located at 1212 Lancaster Ave.: • Developer proposes renovation of the historic Parker Browne Building located at 1212 Lancaster Ave. into office space • Impact Promotional Services, LLC dba Gotcha Covered, Work Wear & Uniforms offices will move into building • Marketocracy, Inc, will relocate offices to Parker Browne building • BDD Enterprises, LLC dba Cheyenne Construction Co. will relocate from Keller to 1200 Lancaster Ave. (former Gotcha Covered location) • Establish ajoint skills training program for the homeless with Presbyterian Night Shelter CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE March 4, 2014 Page 3 of 4 The Developer commits to the following: • Invest a minimum of$2,100,000 in real property improvements by December 31, 2015 • Issuance of Certificate of Occupancy by March 31, 2016 • 20 new or relocated employees by the end of the loan term (5-years) • Complete and have in operation for at least I year the joint training program with Presbyterian Night Shelter by December 31, 2020 Recommended City Commitments: UDAG loan in amount not to exceed $350,000 with the following terms: • 5 Year forgivable loan (0% interest rate) • $250,000 to be provided two years after receipt of certificate of occupancy • Final $100,000 to be paid upon meeting the I-year training program requirement • Loan will be forgiven if all commitments met • If do not meet the commitments, then loan must be repaid within 24 months of the end of the loan term 5 Year tax abatement plus permit and fees waived under the NEZ program Next Steps: M&C for consideration of the UDAG Loan for the historic renovation of the Parker Browne building will be on the March 25, 2014 Council agenda. M&C for consideration on NEZ tax abatement/permit and fee waivers will be on the March 25, 2014 Council agenda. There was no action required on this item. 6. Presentation on Proposed Economic Development Incentive Agreement with MillerCoors, LLC for Expansion of the Facility located at 7001 South Freeway — Robert Sturris, Business Recruitment Manager Mr. Stums stated that the MillerCoors Fort Worth plant is seeking to expand operations by adding new investment in machinery and equipment to upgrade facility and increase efficiency. The proposed incentives are: • Incentive proposal is for 10 year Economic Development Program Agreement • Agreement would provide grants up to a maximum of 50% of the incremental business personal property taxes 40% grant with opportunity to earn 10% bonus on additional investment • Incentive value approximately $735,300 over the 10 year term for Phase I $2.7M over the 10-year term if Phase 11 and III are completed CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE March 4,2014 Page 4 of 4 The Company will commit the following: Capital Investment • $22.5M Real and Business Personal Property Investment ($1M RP and $21.5 BPP) by December 31, 2014 Job Retention • Retain a min. of 555 FTEs by December 31, 2014 Annual Supply and Service Spending • Greater of 30% or $750,000 with Fort Worth Companies • Greater of 25% or$625,000 with Fort Worth M/WBEs Additional Investment Local facility competes for capital investment opportunity across the organization, if awarded: Company will invest an additional $24.5M in BPP per year for a two year period Install $24.5M by December 31, 2015 (PH 11) Install $24.5M by December 31, 2016 (PHIII) Staff is recommending entering into a 10-year Economic Development Program Agreement to provide grants on up to 50% of the City's incremental taxes generated from the business personal property investment. An M&C to approve Economic Development Agreement will be on the March 25, 2014 Council agenda. There was no action required on this item. Requests for Future Agenda Items Update on commercial property valuations to be made to the Council. 7. Date of Next Regular Meeting: March 4,2014 8. Adjourn-Joel Bums, Chairman With no further presentations or discussions, Chairman Bums adjourned the regular meeting of the Z:� - Housing and Economic Development Committee at 3:03 pm, on Tuesday, March 4, 2014. These minutes approved by the Housing and Economic Development Committee on the I" day of April, 2014. APPROVED: Minutes Prepared b-y and Attest: el Bums, Chairman iary J. 1s r, C4 Secretary kJ