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HomeMy WebLinkAboutEDA 2007-10-01 MinutesCITY OF NORTH RICHLAND HILLS ECONOMIC DEVELOPMENT ADVISORY COMMITTEE CITY HALL PRE-COUNCIL ROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS 76180 MONDAY, OCTOBER 1, 2007 11:30 A.M. 1. Call Meeting to Order -Alan Young, Chairman 2. Approval of Minutes from May 14, 2007 Meeting 3. Discuss rail transit planning in North Richland Hills 4. Discuss Guidelines and Criteria for North Richland Hills' proposed Business Improvement and Growth (BIG) program 5. Receive Update Report on NRH Development Activity 6. Discuss Possible Topics and Ideas for Future Board Meetings 7. Adjourn City of North Richland Hills Economic Development Advisory Committee City Hall Pre-Council Room Monday, May 14, 2007 MINUTES Board Members Present: Mr. Alan Young, Alan Young Pontiac-Buick-GMC Trucks Mr. Jim Makens, The Makens Company Mr. Dan Ouinto, Roaring Brook Development Mr. John Hunter, HealthMarkets Mr. Vincent Lara, Super Wal-Mart Ms. Linda Timmons, Bates Container Ms. Janet Golightly, Golightly's Gallery Mr. Randy Moresi, North Hills Hospital Mr. Mike Rigby, Liberty Bank Ms. Cindy Brewington, Edward Jones Staff Present: Mr. Jim Starr, Interim Assistant City Manager, City of NRH Mr. Thad Chambers, Economic Development Director, City of NRH Ms. Elizabeth Leasure, Marketing and Research Coordinator, City of NRH Ms. Phyl Baloga, Administrative Secretary, City of NRH Chairman Young called the meeting to order at 11:53. The first order of business was to approve the minutes from the January 25th meeting. The minutes were approved unanimously at which time Mr. Chambers informed the Committee that Mr. Hunter is no longer sitting in for Mr. Garcia but is an official committee member. Mr. Chambers also introduced Mr. Lara, store manager, of the Super Wal-Mart located at North Tarrant Parkway. He represents large retail. Mrs. Brewington with Edward Jones represents small service. Her office is located at Boulevard 26 and Vance. Mr. Starr is currently acting as Interim Assistant City Manager filling in since the resignation Mr. Torres. Mr. Chambers asked the Committee members to go around the table and introduce themselves. Now that we have a complete committee of ten members this committee reflects a healthy cross section of businesses. At the last meeting we discussed updating the Economic Development Plan which was created in 2003. Upon mentioning all three strategies and listing the bullet points, Mr. Chambers asked the committee members if the primary or secondary strategies appeared to be valid to the plan. He believes it has set dormant for so long and needs to become a working document. STRATEGY ONE-Redeveloping and Reusing Vacant and Underutilized Properties Targeting Reuse of Vacant Retail (primary) • Update inventory of major retail centers This first bullet point was considered primary. Updating the inventory of major retail centers was created last year specifically to take to the ICSC (International Council of Shopping Centers) convention. Thad has been attending this convention for nine years because he believes it to be that important. It is the world's largest shopping center and mixed use trade show representing large developers and also smaller shopping center owners. These developers may have property in many locations even in foreign lands. Their objective is to make deals. This convention is a perfect opportunity to market our location and network. Update demographic information from 2000 census for areas surround major centers We use a service that is called ESRI. We have a budget item for these demographic reports which we provide for anyone interested in developing a center. We have current demographic numbers and brokers and developers rely on this information. • Conduct personal interviews with owners and leasing agents of retail centers We have constant contact with owners and leasing agents and are kept abreast of what is developing. • Develop specific target industry list for each major center We have a Retail Tenant Directory that we work out of targeting retailers looking to be in the Texas market. • Conduct marketing campaign to target industries This is done thru ICSC. Most of the contact is thru the Retail Tenant Directory where we know what property is available and find out what they need. Redevelop South Boulevard 26 (primary) Facilitate completion of Corridor Plan by Leland Consulting Group and HNTB Planning Firm • Stakeholder Involvement • Market Analysis ^ Community Consensus Building ^ Feasibility Study • Redevelop Plan Implement Corridor Plan and components The Corridor Plan was completed in 2004 and they took into account stakeholder involvement. The next stage is to implement this plan. This plan resides in the Planning and Development Dept. and we have limited influence on this now plus the funding still remains a concern. Currently there is no funding for the plan with the exception of the joint funding from Richland Hills and North Richland Hills for the two intersections. With both cities contributing close to half a million dollars just the intersections alone would be close to one million dollars. Mr. Moresi asked if we could look at other communities to see how they fund projects. Thad told the committee that having two cities work together is very unusual because it is such a complex process and there doesn't appear to be any history to review. Mr_ Quinto raised the question about using the money for aggregation of property and not the intersections. Mr. Chambers...they have discussed land banking and earmarked the money for the intersection and are in the design stage. Chairman Young asked who our link was with Richland Hills and Mr. Chambers told him John Pitstick is the contact. There is an Oversite Committee which was initially formed -2- with two council members from North Richland Hills and two council members from Richland Hills along with a business at large representative which happens to be Mr. Rigby with Liberty Bank. This Oversite Committee was designed so that every changed item does not have to go thru Council. Mrs. Brewington asked if TXDOT could come in and claim imminent domain and say okay this is what you are going to do and then use TIF dollars. Imminent domain has not been discussed and the State has slowed the process down somewhat because we have to get approval to spend any money on the State streets. Both cities would have to form a TIF and create consistent zoning so that a unified look would prevail. Our City has looked at drawing a TIF over the entire area regardless of what City it is in but it looks like both cities would have to create their own TIF. Mr. Moresi... any areas of agreement that we have with Richland Hills? They have really stepped up and have been 50/50 partners. Baker Blvd has the potential to be office and limited retail but Boulevard 26 continues to be the best spot for Richland Hills to see commercial retail development. The traffic counts are so much stronger there. Richland Hills is very interested in seeing this area redevelop however a funding mechanism needs to be created because if they keep using their 4B money it will eventually dry up. In order to continue with this project a Tax Increment Funding system or a Public Improvement District would have to be created. We may need to have further discussions and bring in the Planning Dept. Redevelop North Hills Mall (secondary) Update tax abatement sales tax rebate grants and infrastructure incentives for mall revitalization Mr. Chambers has reviewed the incentive policies and they need to be rewritten. There appear to be conflicts. He also mentioned he needs to review the tax abatement policy and the sales tax rebate grants. Basically one says if you get a sales tax rebate you shall not be eligible for any other incentives at all ever, but this would give the council the opportunity to say the mall is a little different and we the City will do everything to make this project work. Perform study of South Grapevine Highway to improve development surrounding the mall That plan has been done. The mall incentive agreement is null and void. We've agreed to pay half of the bridge for the medical office building and the hospital expansion because that was critical to the hospital to continue what they were planning on doing but the developer will not be able to meet the incentives timeline. The best way to look at this again would be to create a TIF and include the mall. When you are talking about $90 million dollars coming out of the TIF you can do those street improvements and do other public improvements. • Consider an "Entertainment District" designation for North Hills Mall that would allow for mass gatherings events and celebrations ...the mall is down, litigation continues and only a portion of the property is available for developing now. -3- Actively encourage current developers and seek out potential investors and family entertainment businesses to locate in North Hills Mall Potential investors are almost dormant now because of the litigation. They had Costco and Fry's lined up but the time line has expired. Chairman Young asked who the big loser is right now. Simply the City was Mr. Chamber's response. Burk Collins who is a local developer was general partner and Michael Kest out of California was the limited partner. Something happened between the two gentlemen in their business transaction and Burk was removed as general partner. Mr. Kest sued Burk Collins to remove him as general partner and then Burk Collins counter sued and that is where they have been for four years. There are dollars on both sides. The attorneys are winning, neither partner is and the City is most definitely not winning. We've seen Dick Sporting Goods go to Northeast Mall. They were just one of the businesses that signed on to be a part of North Hills Mall. We are however getting Burlington Coat Factory. The Burlington Coat factory will be located in the old Sac `N Save building and is in the Value 820 Value Center and is next to the 24 hour Fitness. They have bought the facility. Mr. Makens asked if there was a vehicle inside Economic Development to buy land. Currently we do not have any such plan. Economic Development gets a small amount of funding from the Hotel/Motel occupancy tax however how we can spend that is very limited. The money spent must be on promotion and events that increase overnight stays at our hotels/motels. The primary source is the general fund. We do get 5% from the 4B sales tax that goes to fund the Parks which amounts to $180 to $200 thousand dollars a year. That 5% that Economic Development receives just started three years ago. The first monies from that are designated for the intersection improvements on Boulevard 26. That money is earmarked for this current and next fiscal year. As far as incentives we have to look at TIF's or other avenues because we don't have that cash source to use. Mr. Makens asked if there was any money available for land banking or matching grants. This money is not available thru Economic Development but possibly thru the City Manager's office. There is a mechanism but not through this dept. Mr. Makens wondered if the City had considered buying North Hills Mall. Thad spoke that the year he has been with the City there has not been any discussion. The last asked price was $30 million dollars. Mr. Quinto brought up a possible alternative would be for the City to sue both parties to encourage them to resolve their differences and state it as damage to the City. Originally the partnership agreement was drawn up in the State of Texas but some of the California laws are overriding. What's happening is since our laws are different than California, it just goes round and round, and this has been happening for four years. The City's substandard building code is what got the mall to come down. We have not talked about the next step. Mr. Quinto asked if it would be possible to calculate the sales tax that the City lost thru these deals that fell thru -4- Absolutely was Mr. Chambers comment. Thad had not thought down that line before but agrees that would be worth further discussion. Both Burk Collins and Michael Kest have the financial capacity to sit there forever. One is not going to out wait the other. They need the pressure to get them to move. Mr. Kest is current on property tax and also current in demolition and it is our understanding the asbestos cost was part of the removal of the mall. We don't know if the asbestos was originally figured into the demolition price or increased the cost. There is nothing in writing for the mall to remove the fence. We are hoping they will. Mr. Makens mentioned he would keep the fence up for liability reasons alone. He also mentioned that $4 million dollars a year for the transportation would go a long way to buying the property. Mr. Makens recently spoke with Steve King and he is re-active in marketing the property which would appear to be the best sign that he is getting some direction somewhere. They have talked about phasing the property. Mr. Moresi has offered the MOB many leads but they have yet to get one deal signed because he believes they have priced themselves out of the market. Mr. Makens has said the cost is $8.35 sq. ft. and is too high considering what is available at other locations around the City. Kest purchased 30 acres separately along with Mervyn's and Foley's and paid a lot of money which he believes is generating the high price on the medical building. Another scenario Mr. Moresi mentioned he knows two doctors willing to buy the property SW of the mall and build, rent or develop it themselves but it appears that no one is willing to deal with them. Mr. Chambers mentioned that the litigation is not the only issue, it is the primary but there are some other issues. They have burned so much credibility that retailers have changed their strategy and are not going to go there. We are starting to see some interest in the Home Depot Expo the Sac `N Save and some of these other big box spaces which might not have been looked at because they were waiting on the mall but now are showing an interest. Redevelop Loop 820 Land Uses (secondary) • Establish a Loop 820 Task Force • Monitor the Widening of Loop 820 and provide staff input regarding design of roadway exit ramps final design and landscaping of project • Determine way to "dress up" medians along entry points to the city • Conduct Study to determine the highest and best use of frontage along 820 and transitional uses and buffers against existing neighborhoods Planning & Development is the department that will be implementing these plans. This plan is current because nothing has happened to Loop 820. They are updating the Master Land Use Plan and it includes going from industrial to mixed use thru the corridor. Mr. Makens asked the question if the City ever got paid for their condemned property. Mr. Chambers believes they did, but has not had direct confirmation on that. Until the legislature finally gets a signed law regarding a private funding toll road there is no way to fund the Loop 820 expansion unless to go up on the gas tax or find another -5- source. They are saying another five years out to find the money. The money keeps going away to other projects. The I-35 Coalition is very important to Perot and that group as well. The Regional Transportation Commission has gotten in with the I-35 Coalition and is trying to keep the focus on this area so that money does not slide away or see those funding sources evaporate. The latest Mr. Chambers has heard on the legislature was they were going to put the two year moratorium on the private toll roads but that excluded most of the projects in Tarrant County including this one so there may still be an opportunity to have managed lanes on the private toll road. Chairman Young asked about the 114 project and if it would begin before us or after us? Mr. Chambers said that because these projects are so politically charged, groups have gotten together to make sure the projects don't continue to move around. Per Mr. Makens, Cities contribution has a lot to do with the project as far as condemnation. Also, if other parties are willing to come forward and assist with the cost then the project will be pushed forward. The 114 project called the Funnel should move faster because of Grapevine's access to money. They have a lot of leverage because of their hotels and the airport. This is another reason we need the mall to be up and running which would give the City the tax revenue money to leverage that with the State and Federal money to get the job done. Mr. Chambers says the City has recovered and currently has a level sales tax which places us to where we were before the drop off in 2000 when the last part of the mall closed. The City is in a great position right now not having to cut programs and positions and it reinforces how important the mall is if we want to advance Boulevard 26 and Loop 820. • Prospecting for new businesses from the City's target industry list to fill-up vacant buildings and land The Sac `N Save building will become Burlington Coat Factory. Mr. Chambers has been working with the broker to help market the Home Depot Expo. Mr. Makens suggested a software subscription called Sales Force. You take a location, punch the demographics in for that location and it gives you back a list of users and contacts that fit that demographic profile. Redeveloping Existing Neighborhoods (secondary) • Continue implementation of Neighborhood Identify Program • Seek to register and build database on all neighborhood and homeowners groups in the C • Develop individual neighborhood needs assessment • Promote basic property maintenance and build peer support for encouraging higher standards in neighborhoods • Promote neighborhood programs and partnerships between City neighborhoods, businesses and volunteers • Establish recognition awards for neighborhoods businesses and volunteer groups The six points listed under redeveloping existing neighborhoods fall under the Neighborhood Services Group. Neighborhood Services works actively to stabilize those neighborhoods that were designed to last 30 years and now are 40 to 50 years old. -6- They have numerous programs, like the Looks Program, the Litter Not Program. All the programs are geared to keeping the City clean and neat. Mr. Makens suggested using this template and use it for the commercial properties along Boulevard 26. At least 47 commercial property owners along Boulevard 26 could create the same type of organization where they all work together to keep the City clean and maintain the highway. STRATEGY TWO-Promoting a Positive Business Climate Retention of Existing Businesses (primary) Develop formal program for visiting all major employers new businesses and troubled businesses Existing businesses are always important; we do have a formal program for visiting all major employers and all our new businesses. As we get our Certificates of Occupancy in we look at who actually has a physical location or store front and we go out and visit these businesses and let them know they have a point of contact if they run into any problems. Develop target industry list of businesses that provide products and services that support existing business in NRH We do have an industry list. We have a lot of medical coming into town now, but are still striving for more retail and we have a lot more of that coming in. We have talked about implementing a business round table group. This might be the cross-section where we have large retailers get together and talk about issues they may face with North Richland Hills or this area. Medical users may find a complete different set of circumstances. We need to focus to get to know our businesses better. • Implement redevelop plans for aging shopping centers Mr. Chambers has not seen this before but something to consider again. The City does have planners that could plan for aging centers. By making the process easier developers might not hesitate to participate in an aging center. • Host annual business appreciation luncheon We noticed attendance was dwindling because of the summer months and we took a survey which motivated us to move the luncheon to September. Congressman Burgess will be with us and we will be recognizing businesses that have been in the community a certain number of years. As always we will thank our businesses for locating in NRH. • Communicate with existing businesses through NRH UpClose newsletter The NRH Upclose Newsletter (the Economic Development newsletter) is no longer occurring because of the high cost. However the City does have a newsletter plus we have the NRH UpClose News Program that is on Citicable and there is a web feed. • Promote Buy NRH Program and local businesses doing business with each other This program has gone full circle however it's very important that our department heads and City staff realize how important the sales tax dollars are to our budget. • Promote NRH Businesses by encouraging active participation in the NE Chamber. -7- Of the 1,200 NRH Businesses only 200 NRH businesses are members of the NE Tarrant Chamber. We do continually promote activity with the Chamber but we are also trying to fill the gaps. We are contacting our businesses. Mr. Makens, what does the Chamber do for the City? The Northeast Tarrant Chamber is doing a really great job. Chamber of Commerce changed significally when City's got involved in Economic Development because that was a Chamber function. Cities got involved, created the 4B sales tax for Economic Development and basically took it away from the Chamber. Since chambers' didn't have a funding mechanism some adapted better than others. The Northeast Tarrant Chamber is closing in on 1,000 members businesses but only 200 of the City's 1,200 are members. Mr. Chambers is trying to find out if the Chamber is the mechanism that the City needs. The City pays in $8,000 dues to the Northeast Tarrant Chamber. Mr. Moresi said that it used to be a sleepy little Chamber. It is however become a good networking tool for businesses. Support Diversified Business Recruitment (primary) Support NE Tarrant "Quality of Life" Foundation-by marketing NRH, RH, Haltom City, Watauga, BISD, Keller ISD and the NE Chamber all together, the creation of a bigger community is accomplished and easier to market this larger area and it's assets. Watauga has dropped out of the Quad Cities as has Keller ISD. Mrs. Brewington mentioned that Watauga doesn't need to be part of Quad Cities because locally they have become so well know with Highway 377 and the retail there. Due to the time Mr. Chambers did speed up the remaining information and covered it briefly so as to not delay anyone from other engagements. • Update area-wide demographic data base-currently being done • Develop a target industry database-filling in of big box spaces is priority • Develop advertising and image campaign-requires more funds • Attend appropriate regional and state trade shows-currently being done • Send quarterly newsletters to brokers and prospective businesses-Mr. Chambers is constantly in touch with the brokers and prospective busrnesses • Look for ways to share business recruiting efforts-on going • Ensure accountability to all stake holders- cost/benefit analysis on all expenses, quarterly reports to all entities annual reassessment of goals and oblectrves. Facilitate Street Reconstruction Projects (secondary) • Provide construction updates to businesses before and during construction projects • Im lement coo erative marketin Ian to drive more customers to affected businesses • Make temporary changes to the sign ordinance during construction • Work with police and public works departments to decrease congestion and increase traffic flow Promote Hiqh Development Standards (primary) • Continue to review and update aesthetic ordinances and regulations as needed • Conduct annual survey of area cities to compare development standards This area would be thru the Planning Dept. • Implement city image study-the City has done a lot of work in this area and is ongoing -8- • Consider annual home and business improvement fair Promote Commuter Rail Service (primary) • Provide semi-annual status report to City Council • Organize local task force to monitor progress • Determine best station location The best possible rail location would be at 820 and Iron Horse Boulevard. A second location would be Davis and Main Street. Discussion on how to raise the funding for mall transit was brief due to timing. • Active participation and discussions with COG regarding future commuter rail service in NRH • Develop rail station plan to promote access and surrounding land use development Mr. Chambers would like to have Bo Bass address questions regarding this area STRATEGY THREE-Developing and Promoting an Attractive, Diversified and Thriving Community Enhance Davis Boulevard (primary) Establish a plan for Davis Boulevard which includes components relating to city image study and streetscape improvements The Parks Department is currently working on a new program called "Grow Davis". It involves landscaping to make Davis more aesthetically pleasing. The Parks Dept. has been getting in contact with the businesses between Maplewood Drive and Emerald Hills Drive. • Consider Overlay District for implementing specific development standards along Davis Boulevard This was addressed in the City Image Study and the Planning department is working on development standards while the Parks department is working on an Art Program. Support the City Image Study (primary) Update ordinances and development standards that promote the City image study This would be done in the Planning and Development department Assist in the implementation of a public art program The Parks department has an active art program and is expanding Promote the Smithfield Historical Area (secondary) • Complete Smithfield Study • Implement Smithfield Plan and components • Actively promote location for potential rail stop in Smithfield area Realistically speaking this project is seven years out. Promote Tourist and Entertainment Venues (secondary) Continue to promote existing NRH20 Iron Horse Blue Line Mountasia We have requested funds for a marketing campaign but don't know when that will happen. Mr. Makens and his partners recently bought the Blue Line Complex and he mentioned that Bfue Line is in the process of being repainted, retooled and repaired. There was -9- vandalism and damage to the complex which needed to be addressed first. The Fort Worth Brahmas will be making this complex their new home and Mr. Makens is saying the puck will drop in October. • Seek enhanced motel and convention facilities • Promote the redeveloped North Hills Mall as a family entertainment center • Create a marketinq campaign to promote family oriented visitors and entertainment service Right now there is no funding to further any marketing campaign. • Develop a travel brochure to distribute throughout D/FW and beyond • Place directional signs and attractive light pole banners along major corridors that promote events and entertainment venues. • Work with TX DOT to get signage at exits directing motorists to food lodging and entertainment venues. Actively Market to Improve the Image of NRH (secondary) • Review current marketinq initiatives • Conduct image survey of regional business leaders • Determine desired image based on community vision • Design image campaign • Begin implementation of image campaign Promote the HomeTown Development (secondary) • Work with brokers and developers to promote construction of commercial buildings in HomeTown • Facilitate construction of additional homes for the second phase of residential development Mr. Quinto informed the committee that they are currently in the 4~h phase of HomeTown. • Actively promote HomeTown concept and development through joint marketinq efforts and word of mouth at trade shows and community events • Facilitate opening of HomeTown Lakes Park and construction of library recreation center and conference/performing arts center The recreation center is planned for this fiscal year after the library. More information will be on the jump drive that will be sent out to each committee member. Mr. Chambers quickly mentioned just a few of the new businesses coming; Burlington Coat Factory, Ross Dress for Less, Harbor Freight, Rusty's BBQ, Bar-B-Cutie and FedEx Kinkos He then mentioned current development activity; Smithfield Summit, Tower Plaza, Fort Worth Christian expansion, Gateway Church, Former Blue Line Ice Complex/Brahmas And finally the other notable activity; North Tarrant Wal-Mart Remodel, Ambulatory Surgery Center (MOB), and Tarrant County Blue Thunder. Mr. Chambers asked the committee if they had an input on how often they would like to meet. After a brief discussion Chairman Young said the committee would take the summer off and rneet again in September, November, January, March and May. With no further business, Chairman Young asked for a motion for adjournment. Mr. Quinto moved for adjournment and Mr. Rigby seconded the motion. The motion passed unanimously. The meeting adjourned at 1:20 p.m. -10-