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HomeMy WebLinkAbout1995-01-04 EDC Minutes EULESS DEVELOPMENT CORPORATION BOARD OF DIRECTORS MINUTES JANUARY 4, 1995 The Board of Directors of the Euless Development Corporation met at 4:00 p.m., Wednesday, January 4, 1995, in the Downstairs Conference Room of Building A., Euless Municipal Complex, 201 North Ector Drive, Euless, Texas. Members present included: Mayor Mary Lib Saleh, Chairman of the Board of Directors Mayor Pro Tern Bobby Baker, Vice Chairman of the Board of Directors Councilman Henry Boatright Councilman Charles Miller Citizenmember Sonja Adams Citizenmember Edward Denari Citizenmember Letty Lynn Maloney City Manager Torn Hart, President Assistant City Manager Joe Hennig, Vice President Director of Economic Development Tom Cox, Second Vice President City Secretary Susan Crim, Secretary Members absent included: Director of Fiscal and Human Resources Debra Forte', Treasurer Other Council and staff present included: Councilman Glenn Walker Director of Community Services Rick Herold CALL TO ORDER The meeting was called to order at 4:00 p.m. by Chairman of the Board of Directors, Mary Lib Saleh. APPROVAL OF MINUTES OF OCTOBER 3, 1994 MEETING Upon motion by Ms. Adams and second by Mr. Baker, the Minutes of the October 3, 1994 meeting were approved as presented by unanimous vote. Ms. Saleh introduced Letty Lynn Maloney, a new member of the Euless Development Corporation. Ms. Maloney was appointed to complete the unexpired term of Miles Pritchard who is moving from the city and offered his resignation at the last meeting. EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 2 APPROVAL OF RESOLUTION NO. 04-95 Upon motion by Mr. Baker and second by Mr. Boatright, Resolution No. 04-95, relating to the public hearing being held on undertaking and expending funds for a recreational project involving the acquisition of land for potential athletic complex and golf course, was approved by unanimous vote. Mr. Hart reviewed Euless Development Corporation Long Range Plan as approved by the Euless Development Corporation on May 26, 1994, with regard to land acquisition and projects to be undertaken. BRIEFING ON LAND ACQUISITION Mr. Hart reported that the structure of the land purchase for the athletic complex allows the City to purchase the property at $15,000 an acre plus expenses (broker fees and rollback taxes estimated at under $2,500 per acre total), with a commitment to start a golf course within three years; or take the option of buying the athletic complex property at $25,000 an acre (approximately $860,000 more). Should we elect not to build the golf course, we will have the option of paying the additional $10,000 per acre or sell to them for $10 the 150- acre adjacent tract being purchased for the proposed golf course for which the City paid $750,000. This would fulfill our contract. It was staffs determination that the athletic complex land was a good purchase even at the higher price. If we build the golf course, then all the better. In effect, we will be getting our golf course land for under $400,000. Mr. Denari asked about repercussions of the facility being in another city and whether a feasibility study had been done. Mr. Hart explained that the City of Euless would go before the City of Fort Worth for zoning and other approval the same as any other business planning a site in the City of Fort Worth. He reviewed the feasibility study, indicating the results were very positive and showed a golf course would be an appropriate facility on this property and would most likely do well in that location. Ms. Maloney asked the benefits of the City of Euless having a golf course. Mr. Hart related the following: 1) economic development income stream; 2) clubhouse revenue stream; 3) some hotel-motel tax revenue can be used; 4) golf course revenue will pay for maintenance of the athletic complex. After lengthy and intense discussion, Mr. Denari stated that he was satisfied that the Euless Development Corporation had very thoroughly considered every aspect of the proposed combined athletic complex and golf course, taking into consideration the interest of the citizens as well as the best use of the half cent sales tax revenues. Mr. Hart distributed Sales Tax Fund Revised Projection through September 30, 1996. The original budgeted amount of $1,250,000 for the athletic complex would increase to $1,460,000 if the golf course is built in conjunction with the athletic complex. Should the golf course not be constructed, the budget for the athletic complex would increase to $2,350,000. EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 3 Mr. Hart reviewed the library design and construction schedule, including a possible opening in May 1996, which would mean operating funds would be needed sooner than was originally planned from half cent sales tax revenues. The library project is staying well within budget. Mr. Hart reported on increased sales tax revenue income. BRIEFING ON MALL Mr. Hart reported that the city is considering a $39 million incentive package which includes $29 from Tax Increment Financing (TIF) and $10 million from half cent sales tax revenue. Mr. Hart gave an update on the participation of taxing entities that will be required to participate in the TIF district. The Board continued their meeting in the Council Chambers at 7:00 p.m. to conduct a public hearing and for the consideration of other scheduled items. PUBLIC HEARING - LAND ACQUISITION In addition to the persons already listed as being present, the following were in attendance at the public hearing: Ray Saleh, Larry Baughman, Fred McDonald, Dave Scott, Wes Scott, Eric Owens, Richard McNeese, Leon Hogg and Mike Daniels. Ms. Saleh called the Public Hearing to order at 7:00 p.m. Mr. Hart outlined a proposal to acquire land for use as an athletic complex and golf course. He stated the City Council and staff have been negotiating the terms of the agreements for over a year, and they have been very surprised at the cost and unavailability of land. They did not find a tract of land large enough within the City of Euless that was comparable in cost to the site being proposed. He detailed the master plan being considered and stated that while City officials originally preferred the site be located within the City limits of Euless, they have since discovered there are benefits to the location being partially in the City of Fort Worth. There will not be a loss of value on the tax rolls and the lighting that is a part of a complex such as this will not be near neighborhoods in Euless. City staff members have begun discussions with the City of Fort Worth regarding annexation of the property. The athletic complex will have multiple ball fields, soccer fields and other activities for all members of the family. The golf course complex would have a meeting facility with an upstairs conference room that could be used for corporate meetings, banquets, etc. A large outdoor pavilion is also planned to be used in conjunction with tournaments, and a complete food service would be available for all facilities. It is hoped that the profits from the golf course will pay for a large part of the maintenance of the athletic complex. Three separate pieces of property totalling 270 acres are being considered at an approximate cost of $2.7 million. The staffs recommendation to the Euless Development Corporation is for authorization to proceed with the project. EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 4 Ms. Saleh called for any proponents in the audience who might like to speak. Mike Daniels with the Euless Baseball Association said that in his opinion the athletic complex could not get here soon enough. The Association has outgrown the current facilities and are probably going to have to turn away some people this year. Fred McDonald with the Euless Girls Softball Association said that they are all for the project. Wes Scott stated that he felt this is a good project being proposed and that the City should proceed with acquisition of the land before it goes any higher in price. He believes it is a good idea to bring the recreation activities to a centralized area and to get the traffic away from the neighborhoods. He said the project will be a real positive for the City. Richard McNeese said he has served on the Parks and Leisure Services Board for over 10 years and he is very proud to have been a citizen in Euless since 1968. A complex of this type has been a dream of many citizens for years, and it will help to showcase the City of Euless. Leon Hogg, Chairman of the Parks and Leisure Services Board, stated that the entire Board is extremely excited that the project has progressed to this point. It is in line with their master plan and they feel the time is now for the City to move forward with it. Mr. Hart pointed out that the way the agreement is structured, the City will be able to acquire the property for the athletic complex at a much less expensive price when the land for the golf course is purchased at the same time. The property owner has held onto this property for some time, but is willing to sell the land only because the golf course is a part of the entire project. Mr. Miller pointed out that the City will definitely do an athletic complex somewhere, and if it is not at this location where the golf course makes it less costly, it will be more expensive both to purchase and maintain. Eric Owens, member of the Parks and Leisure Services Board, stated that a very positive result of this project is that it will return our neighborhood parks to the residents. Ms. Saleh then asked if there were any opponents in the audience. There being none, the public hearing was closed at 7:25 p.m. AUTHORIZATION TO NEGOTIATE AND EXECUTE CONTRACTS FOR LAND ACQUISITION Mr. Denari stated that he wanted everyone to understand that this is quite a sizable undertaking for the Euless Development Corporation, and he wanted to assure the citizens that the Board of Directors have looked very deeply into the studies and analyses that were presented by the staff. There have been extensive studies made with regard to economic feasibility of golf course operations. The price of the land has been reviewed from the standpoint of this location, and it has been established why this is the most ideal location both from the standpoint of its utility as a community park as well as in today's market why EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 5 this is an extremely good price structure. He assured everyone that all of these things have been looked at and discussed in a very extensive manner. He also pointed out that this project, as well as the library and other projects, are being derived from the half cent sales tax. There are no plans at this time to include any general taxes to support this project. The Board of Directors take their responsibilities totally in the interest of the citizens of Euless. Mr. Hart asked Mr. Hennig if the results of the Phase I Environmental Study were complete. Mr. Hennig stated there was one structure that had asbestos siding on it, and there is some residential dumping, but they found no sign of anything to be concerned about. Mr. Baker moved that the president of the Euless Development Corporation be authorized to negotiate and execute contracts for land purchases to undertake a recreational project for a potential athletic complex and golf course facility in the approximate amount of $2.7 million. Ms. Maloney asked if there is a time frame for closure of these purchases. Mr. Hart replied that closure on two tracts would take place within the next 120 days, and the third tract will have an approximate 12 month closure. The staff will begin the planning immediately. Ms. Maloney asked if operational costs of these facilities will come from the half cent sales tax. Mr. Hart stated that some, and potentially all of the operational costs, will come out of the half cent sales tax. The City has the option for some of the operational costs to come from the general fund, but that has not been determined at this time. The golf course is proposed to have operation costs funded from the golf course revenues. The athletic complex will probably be a dual funding source. Mr. Denari seconded the motion and it was approved by a unanimous vote. Mr. Hart asked that the minutes reflect that the Euless Development Corporation budget had adequate money for the remainder of this fiscal year, but with the adoption of this land acquisition project tonight, there will need to be a budget amendment next August to reflect the final purchase of the last tract of land. ACCEPTANCE OF REPORT FROM AUDIT SUBCOMMITTEE Upon motion by Mr. Baker, Chairman of the Audit Subcommittee, to accept the report of the Audit Subcommittee as set forth in the minutes of their November 29, 1994, meeting, the motion was seconded by Mr. Boatright. Mr. Baker read the recommendations of the report as follows: The following recommendations were made by Mr. Denali and unanimously approved: EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 6 1. An annual report should be provided and include the following: A. A review of the fiscal year operations, a synopsis of what happened. B. A financial statement to include: Revenue and Income Statement Balance Sheet Cash Flow Analysis Audit Opinion List of Directors C. A letter to the citizens and City Council by the Chairman of the Board and the President. D. Note: This audit is to be a separate document from the City of Euless audit. E. There should be demonstrated assurance of compliance in the audit. 2. The selection of an audit firm should be made and the Euless Development Corporation Board agreed it would be cost effective to utilize the City Council's independent auditor. A separate document with an opinion to Euless Development Corporation is desirable and the only additional request. Debra Forte has visited with the audit firm and they are prepared to proceed. Mr. Baker stated that the Euless Development Corporation Board of Directors would meet with the auditor on January 24 to receive their report. Ms. Saleh stated that the funds of the half cent sales tax, which this Board manages, are a separate fund from the City's other funds. Mr. Miller stated that he believes this is an excellent practice that shows how the revenues are coming in as well as the balance sheet showing how the working capital is available to pay the debt as it becomes due. Mr. Baker stated that this Audit Subcommittee sets a pattern for future Directors of the Euless Development Corporation and that Mr. Denari's recommendation to establish it was a very good one. Mr. Boatright said he felt it was important for the citizens to understand there is no commingling of the funds between the half cent sales tax and the general fund. The motion then carried unanimously. EULESS DEVELOPMENT CORPORATION MINUTES JANUARY 4, 1995 PAGE 7 ADJOURN There being no further business before the Corporation, the meeting was adjourned at 7:35 p.m. ATTEST: APPROVED: _ cillat WL-1C1112.za, u an Cri , Secretary Mary Lib Saleh, Chairman