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HomeMy WebLinkAbout2014/04/01-Minutes-HEDC CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DFVELOPMENT COMMITTEE April 1, 2014 Present: Committee Member Joel Bums, Chairman Committee Member Danny Scarth, Vice Chairman Committee Member Betsy Price (arrived at 1:16 pm) Committee Member Salvador Espino Committee Member Kelly Allen Gray 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 1:03 pm, on Tuesday, April 1, 2014, in the Pre-Council Chamber of the Fort Worth City Hal], 1000 Throckmorton Street, Fort Worth, Texas 76102. 2. Approval of Minutes from the Meeting Held on March 4, 2014 — Joel Burns, Chair Motion was made by Committee Member Bivens and second by Committee Member Shingleton to approve the minutes of the March 4, 2014, Fort Worth Housing and Economic Development Committee meeting. Motion passed 8-0. (Price absent) Chairman Joel Bums adjourned the regular meeting of the Fort Worth Housing and Economic Development Committee and convened into Executive Session at 1:04 pm. CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE April 1, 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 Burns adjourned the Executive Session at 1:14 pm, on Tuesday, April 1, 2014. Chairman Joel Burris reconvened the regular session of the Housing and Economic Development Committee at 1:14 pm, on 'Tuesday, March 4, 2014. 4. Written Reports —Jay Chapa, Director, Housing and Economic Development Department • Memo Regarding the Extension of the Freeport Exemption for Aerospace Related Companies • Memo on Amending the Bell Enhanced Community Facilities Agreement to Extend the Deadline for Completion of the Reconstruction of Norwood Drive and Increase Project Budge There were no questions on the written reports. 5. Presentation on Proposed Amendments to Economic Development Incentives Policies in Regard to the Promotion of Affordable Housing—Jay Chapa, Director, Housing and Economic Development Department Mr. Chapa reviewed the recon-unendation previously presented to the Housing and Economic Development Committee: • Charge $200 per unit/per year for term of incentive agreement, to be paid directly by developer prior to receiving the annual abatement • Total annual amount deposited directly into the housing trust fund administered by the Fort Worth Housing Finance Corporation • Purpose of funds would be for FWHFC to fund projects that decrease disparity of affordable housing units as they exist in Fort Worth CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE April 1, 2014 Page 3 of 4 Mr. Chapa stated the issues with the current policy: • Policy applies a "cookie-cutter" approach to address workforce housing goals city wide • Using the current policy, but requiring lower income level housing units eliminates the City's ability to incent the project because of gap created by rent differential from market • City unable to more specifically target unit mix and makeup in various parts of the city to meet identified needs of housing He addressed the concerns with the recommendation: • Developers will always choose the alternative option so developments receiving incentives will never have workforce housing units • Alternative option will not allow for true mixed income developments to occur in areas of the City that need more mixed income residential Staff proposed 2 options: 1. Move forward with the M&C as drafted 2. Amend the M&C to provide the $200 per unit option as described, but require council consensus to utilize the payment option before finalizing the incentive terms (staff recommendation) The committee, by consensus, preferred Option 2. 6. Requests for Future Agenda Items Concern expressed about the erosion of the property tax base. Information on smaller units/garage apartments and how they could impact the need for housing units as expressed by the Homelessness Commission at the joint meeting. 7. Date of Next Regular Meeting: May 6, 2014 CITY OF FORT WORTH, TEXAS HOUSING AND ECONOMIC DEVELOPMENT COMMITTEE April 1, 2014 Page 4 of 4 8. Adjourn —Joel Bums, Chairman With no further presentations or discussions, Chairman Bums adjourned the regular meeting of the Housing and Economic Development Committee at 1:39 pm, on Tuesday, April 1, 2014. The minutes approved by the Housing and Economic Development Committee on the _? -day �e minu s I 2014. APPROVED: Minutes Prepared by and A-9 t: kel Bums, Chairman Mary J. er it SecrLiary