Travis County Commssioners Court
June 22, 2004
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Health Facilities Development Corporation
I would like to now call to order the Travis County health facilities development corporation. 1. Approve minutes of board of directors meeting of March 16, 2004.
>> move approval.
>> second.
>> moved and seconded we approve the minutes. Any further discussion? All those in favor? That passes unanimously. Show president Biscoe out for the duration of this meeting. 2. Consider and take appropriate action on request from Austin and Travis County law enforcement and prosecution officials to use the corporation's interest in the old vision village site (old travis state school) for children's protective services teams to serve Travis County children. And our district attorney, ronnie earle and others have joined us. Harvey, where are we? When we last met -- I think there was a conceptual approval, but we still had lots of other questions being asked.
>> right. April 27th, the board -- the board voted to -- to proceed with legal papers to -- to execute this release of lien on the vision village property, now called Austin ridge, and the -- and the concept was that the -- that the corporation was going to release the lien to the developer in exchange for the developer donating 4.5 acres to the center for child protection. And a 10,000 square foot building and in the -- then the center is going to -- the plan is to build a 28 to 30,000 square foot building, which will be -- would be available for -- for various projects, such as training of -- of e.m.s. Officers, fire department personnel, and with -- and [indiscernible] in the city and various parties that are involved in child abuse cases would be able to do their work in a more coordinated and better fashion. At that -- at the meeting on the 27th, the board was very clear in that they wanted to -- to release the lien, but they -- but they wanted assurances that in exchange for releasing the liens that -- that what was planned to be done was going to be done and -- and that they wanted to make sure that the corporation was legally protected, if something unfortunate happened. So -- so when -- when we discussed with the center about -- about how to release -- how to implement releasing the lien and still having the protections necessary for the corporation, in case the -- in case the project was -- the building was not able to be built for -- for whatever reason, the center expressed some concerns about their ability to -- to raise the money and to -- to proceed on with the project if there was a lien in place. And -- and so I -- if it's okay with you, director Sonleitner, I would like perhaps sandra martin, the executive director for the center, to go over some of their concerns on the release of land issue.
>> okay. Thank you so much for -- for allowing us to provide an update on this. The resource that I turned to was the website and the grant application for the kressky foundation, they are one of the leading national foundations that fund capital campaigns and are not unlike quite a few other foundations who consider this funding. The language in their application says, during their review, we may also ask for additional information about your organization, including an affidavit attesting certain details about your mission, operations, ownership and funding. Please be aware that the krestzky makes its grant directly to the organization holding title to or the long-term lease of the project, not to separate u.s. Based fundraising arms. So that is our big concern. That it will limit us in our ability to go forward and assure foundations that this has been done and that we do -- we do have all of the legal rights to the property. The other thing that i'd like to do before asking mike thompson who sits on our executive committee of our board, is to provide a little bit of an update to what's already been done on the site that we are talking to you about today. For the building that we talked about placing the cadets in, the interior -- all of the interior carpeting has been removed, the popcorn ceiling is all gone. The asbestos tile is gone, it's been cleared and is environmentally sound and then the next steps for us to do, so that that building can be occupied, by the cadets is to again a series of things such as we know that we need a new roof and a new air conditioner. And we need to seal, coat and stripe parking lots. And then do some -- some architectural measures to make sure that the older building is compatible with the new. In terms of moving forward, I think we are in the final stages of getting a contract with our architects. And feel as though we are very well on our way, I think the estimates a third to a half of the way in raising the funds that we need to be able to build our building.
>> thank you, Commissioners. Mike [indiscernible], I am a member of the board of directors of the center and serve on the executive committee. The primary legal issue that we have, that sort of causes the -- the tieup is that we have a transfer agreement with the developer who has -- who has generously agreed to donate both the 4.5 acres on which we intend to construct our new building and the existing building and all of the existing improvements on the property. One of the conditions to that charitable transfer we take the property without any liens. The center doesn't have the exailt to cover those -- the capability to cover those liens. It's very important that the closing of our ability to take that property, that this lien be cleared. That's how we came to that agreement in working with the -- the corporations and the city in trying to work on a memorandum of understanding. Hopefully at the end of the day, what we will provide is a significant benefit to the children of Travis County, the physically and sexually abused children of Travis County and being able to provide services to them because of having the -- the type of space that we have. At the same time being able to provide benefits to the county from being able to provide facilities to the cadets and certainly capturing all of those items that we had included in our memorandum of understanding with the county. And so -- so again we would -- we would urge you to take action to -- to release that lien and certainly hope that we are well on the way to having raised a significant amount of money. As -- as sandra pointed out, there are significant issues in trying to raise money from a capital campaign standpoint with foundations and donors to the extent that we wouldn't hold title to the property. So -- so this would be the last hurdle. We have gotten some matching grants, some significant contributions and as sandra says we are well on our way. This would be, I think, the final hurdle for us to really go out and make this happen and bring those benefits to the children of Travis County.
>> let me ask a question.
>> sure.
>> I guess this -- what I need to really get a grasp on, is -- is the timing mechanism on what's -- what's about to take place. I don't see any objections as far as what you all are requesting from us today that we can't go ahead and go forward with it. However, I知 concerned about the other players that may be a part of this, if the county does act on this today, what -- what position is the city in right as we sit here today, in maybe a similar request?
>> the city has agreed to release their lien on the property as well. And so we have gotten approval from the city council to go forward with the release of their lien. They are intending to lease property on the site for -- to -- to fund some of their -- to provide some of their services as well from the city's standpoint.
>> okay. So they are all in -- all in accordance with what you were requesting from us to do.
>> that's correct.
>> okay. Because I wanted to make sure of that and finally [indiscernible] spoke earlier as far as grant monies and stuff, [indiscernible] property must be actually lien free. I guess what I知 looking at as far as the understanding to continue to receive the type of attention and financially in other aspects of it needs to occur. For you to -- for you to go in a good, positive direction. As i've spoken with the folks in the area, this basically is located within precinct 1 of 969 and the residents in that area have not yet heard any opposition to what's being proposed here to -- to look at this -- at this center for -- for, you know, children for protection. So I just want to allude, let you all be aware that I have not heard any opposition. I don't know if you all have heard any feedback. If you have, have there been anybody opposing this particular project out there in precinct 1.
>> > not that I知 aware of. I think that -- that although we haven't been in the neighborhood actively, canvassing to find out about this, typically we know about it much earlier if someone objects. And I think that it's going to be a great asset to the children in that community as well as to the rest of Travis County. As we now have -- as we now have all of Travis County law enforcement signed on to our inner agency agreement.
>> yeah. I guess that's a point that sandra makes. I知 sure district attorney earle may echo that. We have been working as a board and as an organization for well over two years in trying to find a location the child allow us to have protection team that we strive to have between the center. The county. And -- and to the -- to the child protective services as well from the state level. So this -- this property gives us the opportunity toor that -- for that center.
>> I think lieutenant card cardenas is here from the sheriff's office. As I mentioned last time one of the advantages of having has co-location with Travis County and with the Austin police department is that it alabama allows both of -- it allows both of them to use the internet exploitation. Whereas if they are separated then access to that equipment is much more beset by obstacles.
>> okay. I think that -- I think what the board was looking at at the meeting on April 27th and -- or my concept of it, well, what if the worst case happens? We all have to -- we have to make some provision if the worst case happens and the center was not able to build the building and then so what happens if the corporation releases the lien and for the -- for the -- of course what we are talking about is just the lien on the 4.5 acres. I think the idea was that -- that since the developer is donating this land to -- to the center, then it would certainly be the appropriate time for the corporation to release the lien on the remaining acres because he has done his part. But what if the center was not able to build the building and so -- so nothing was done with the 4.5 acres. And the corporation has then released the lien and so they have no -- they have nothing to show for -- for that lien. And so the idea was, well, maybe we could have some sort of agreement that -- that said whether -- whether the lien stays on the 4.5-acres until such time as they begin to build the building. And perhaps if they -- once they spent $160,000, then we would be -- then the corporation would be contractually obligated to release the lien. So that we would -- so that the corporation would not have a choice but to -- but to release the lien at that point. Sort of similar to -- to when we make donations to people like meals on wheels where -- where the board made a commitment to give them a certain amount of money to help build their kitchen, but they weren't -- they didn't get the money until they actually started construction on it and they showed that -- showed the board receipts for -- you know that they had spent the money. Then at that time them the mope was released to them. The money was released to them.
>> the only questions that I have is that there are a number of, at least the copy that I have got, there are a number of exhibits that are not included in our backup. Now granted they are related to the city of Austin. But there's a relevant question to it. There is an exhibit a in storms of form of a lease agreement with the city of Austin. Exhibit b which is blank of a form of a trail system easement. Exhibit c, the approximate location of a trail system easement and restrictive covenant. And d, a restrictive covenant. E is the one that specifically relates to Travis County. My question is this: I don't see a signed document here yet from the city of Austin. And there are pieces of this that aren't here because the city of Austin is contractually asking for certain kind of things to occur and then they will indeed sign their lease. It seems like we also would have an interest in making sure, because we are kind of partners with this with the city of Austin, in making sure that everything has everybody is representing indeed comes to pass. My question is where are those other exhibits and when might you have a signed copy from the city of Austin around from mr. Barlynn because -- we are being asked to be the first sitting tores -- signatore normally we are the last or the city council is doing it the same week we are, it doesn't make any difference who goes first. Both getting done in the same week.
>> this is cliff blunt couple for the corporation. Counsel for the corporation. I spoke with the city attorney last week, I think the only holdup is the lease negotiations, although I don't have a final document, I think the trail easement is completed. We just need to get that. But there's still ongoing lease negotiations. Last week he estimated we would be done in two weeks. I知 assuming they are approximately a week away from finishing up and finalizing that document. Then it will -- they have fully approved this -- the council has fully approved it and staff has been authorized to sign that agreement. So as soon as that agreement from that lease is completed they will be ready to sign is my understanding from jim.
>> we also have a couple of places where there are some blanks. There's a title company name that needs to be filled in the blank. This is substantially completed but not a completed document, even if we want to sign today it's not ready to sign today even if we want to sign today.
>> that's correct. I think there are a few changes that need to be made. I believe we scheduled this meeting to talk about the lien issue that's been kind of holding off getting some of those things finalized.
>> so what was incorrect when the young man stated that the city of course that's why I posed the question, the city has agreed to release the lien I think [indiscernible] said that they have done. But as far as what we have here, it doesn't show the evidence of that.
>> that's correct.
>> is that correct? That's why I posed the question.
>> the city has agreed to release the lien, has authorized city staff and city attorney to execute an agreement in conformance with their authorization. As part of had agreement that forms this -- as part of this agreement that forms this memorandum of understanding, there's going to be a lease -- that is one of the agreements that is being finalized.
>> I think what I would ask the court today, if I understand this right, mike, I知 not you're kind of lawyer, i've done better in algebra, as it is, it worked out the way it is, what we are asking the court to do is basically the same thing that the city council has already done. Is to vote to release the lien. Subject to filling out the form, the city council, that the city staff is now in the process of doing. What we are here to ask the court to do, vote the release of lien, subject only to the filling out of the paperwork. The reason for that is so that we can get on about the business of raising money to build this facility. Because we are seriously ham strung in that effort as long as this effort is outstanding. It would be great if we can come in here and started construction. Isn't that evidence of our good faith, but we can't start construction until we raise the money, we can't raise the money until we get the lien released. We are talking about here, you know, kind of alfonse gaston, who goes first? The city started this ball rolling. I will say to you that the true beneficiaries of this action that we are asking you to take would be the children of Travis County. And the children of this city. That is who has been the primary beneficiary of the actions of the city for child protection. For the last 12 years. And this new concept of putting everybody in the same place that is -- that is -- that has as it's primary focus the clib abrasion and the -- collaboration and nurturing between the agencies and the nurturing of the victims of child abuse will pay dividends to the county that the county can never hope to come anywhere close to recouping through the existence of an empty land that's as totally worthless now. You talk about -- I mean it's worthless now. What we are proposing to you is to increase the value of that scpoan shallly --
>> here's the only minor problem with that, that is the city council will oftentimes will say staff get this thing fixed and it's ready to go whenever you say it's fixed. But they sign-off on it. We adopt do things like that here. One of the problems is that lien by the city of Austin is not released until all of the documents are indeed ready and they sign-off. Even if we sign-off today, it does not make this document a legally binding instrument. It just means that we have done our piece but until all parties sign-off on this, including mr. Barlynn, you are still going to be hamstrung in terms of being able to fill out that paperwork, sandra as you mentioned there. The reality is that we all need to get this work completed. I知 hopeful, cliff is saying this may be two weeks ago, that they will have all of their documents. I just have serious issues with signing off on a document that has four of five exhibits as blank pieces of paper. That's just not how we do business around here. It wouldn't be enforceable related to our lien until everybody signs, nothing is going to sign until all of these documents are put together. The catch is everybody getting their legal work completed so we can all sign-off on this thing.
>> I don't think it was ever the intention to deliver that release of lien until the property transfers occur, some type of simultaneous transactions from mr. Barlynn to the center occurred before that leasement I don't think that's going to happen until these documents are finalized, either. So -- so it is a little bit of a chicken and egg, we are trying to move everything along to the same place. But I certainly don't think that lien would be released until the transfer of the property occurred. I don't believe that's going to happen until this document is finalized.
>> we are being asked to sign-off on something where we don't even have exhibits to see what kinds of things are being locked down as agreements.
>> I guess what we are asking you to do today is to go ahead and move to release the lien subject to final approve and execution by the city of a memorandum of understanding that would release that lien and capture all of the exhibits that are in the current form.
>> it does -- I don't think that imperils the city's legal position at all, as long as the vote is subject to.
>> yes. I think the instructions that i. Like I got a couple of months ago, were that the lien could not be released until at least the building had started construction or something was more permanently done out there. And so in -- in talking with the folks from the center on several occasions, that was hampering their -- their fundraising efforts and some other problems. And so -- so I certainly wasn't comfortable going forward under the assumption that we were going to release the lien upon the transfer and the signing of these documents until I got further instruction from the board. That's I think that's one reason that we are here today. I contacted judge Biscoe about how to handle that. He suggested that we put it on the agenda to discuss. So at this point I guess I wasn't anticipating final approval of that document at this point because you're right it is not in shape to be finally approved. But I felt like harvey Davis and I needed a little bit more firm direction about how to proceed to get this accomplished.
>> to bring this to closure as quickly as possible, provided that the necessary information, necessary instrument and documentation is given for the signature by this board, what time frame are we looking at to really make sure what we do here has everyone at a comfort level that we can move forward? I understand what the city, what you basically said that the city done, of course we still have to work with tangibles, being in my mind the proper things that you have to have as far as documentation is concerned. Go ahead. Answer that question for me first.
>> my understanding is the only thing that's left is the final negotiation of that lease. That I assume was expected in the next week or so. I think everything else is done and finalized so it would just be a matter of bringing that final package or for a final approval in a couple of weeks.
>> the next question, thank you -- let me say this first of all. While -- foremost, I really do up front feel that this is very worthwhile program, I think it's something that's very, very necessary to kind of have things under one umbrella, centralize things a little bit. I want to applaud you for what you are doing. I know the fundraising efforts are going to continue. What I知 also hearing, is that critical two weeks, drop deadline, time line that two weeks will really just kill a deal or kill what you are trying to do? Or is two weeks some time that you can work with so that everyone will be at the same comfort level. It's not a deal killer, is it?
>> I think if we are able to accomplish this in two weeks, that's manageable.
>> okay.
>> I think our time line in terms of our transfer agreement with the developer, we have to get a shovel in the ground and get started on building our building. So our number one priority is trying to get out proposals and get them to foundations and of course this is one of the things that we are waiting for. But two weeks, you know, we can live with that. If we can come back with all of those documents, all signed and appropriately filled in.
>> okay.
>> I have said all along, I so applaud mr. Barlynn for everything that he's done on this. I do not want to stand in his way, to move on with his life, all of the good things happening on the property. Quite frankly if the corporation had not insisted when this project, the original project first got started a ka-zillion years ago on a lien of this property Travis County would have written off $200,000 and the city of Austin would have written off more than $2 million, they would have no claim. Because of that very painful lesson, we have asked similar things of similar organizations that are asking for the utilization of funds from this corporation or any of our corporations to give us assurances, even though we love you all dearly, we have to be accountable to the voters and to the taxpayers that we are being good stewards of this money. And, you know, related to where we can get, I知 now seeing clearly related to -- related to, I can understand the sensitivity about the lien. And under exhibit e, we actually would have some contractual agreements with your organization in terms of what we are going to get in terms of you must provide these things, that's not a lien, but it's certainly something to hangover your head, in terms of sandra, where's our classroom space, our exam room. Exactly, so it's kind of a through the back door, I will use the word leverage to make sure that you indeed do what you want to do. I am also heartened by the word that I have got related to what is going on with the fundraising effort. It's knot nice to say we are going to -- it's nice to say we are going to raise money, but what's happening. Are you allowed to talk about what's going on with them?
>> I can't talk about that yet. But I can say that I think we have a board that is strong and that's forging ahead and we by cautious estimates think that we are a third to a halfway there. And need to really formally announce that soon, so all of the machinery is in place and hopefully all of you will be there when we announce all of this.
>> is it fair to say in terms of major players within the fundraising community,.
>> absolutely.
>> conceptually signed off on to this.
>> yes.
>> and that it would give people great comfort to know that those people are indeed involved in this situation.
>> yes.
>> how can we get to a place where the city completes its work, everybody signs, we all move off with our lives.
>> I can call jim williams again this afternoon. Find out where they are. I think that I can get all of the exhibits final by e-mail today or tomorrow. As soon as they have the exhibit a the lease form, get that from jim and get it to you all for backup. We can schedule it for the next meeting after we did that is that we got four exhibits that we just don't have. It just -- its just one of those things of people saying are you all keeping an eye on what's going on. It's disturbing to see four empty exhibits that we don't know what is being signed off on here. It's just we have got to do our due diligence.
>> I understand.
>> can we get this done in a week or would it take two weeks.
>> I think we can get it done quickly depending on what jim williams says. But certainly from the center's standpoint if we can get those exhibits, I think some of them have been developed already as cliff says. So --
>> if we could carry over this item until next week, get things put it together and to you within a day or to [multiple voices] we might be able to deliver you an agreement that's signed by every other party other than the county.
>> that's really what we are needing. I can get to a place in terms of comfort related to exhibit e, that is my leverage/contractual relationship with you all in terms of what I expect for the reinvestment that this corporation has done. I can get there, but I have to see that all of the other exhibits are here and that they are all signed. I look forward to this not being on our agenda until the ribbon cutting occurs. So it's one week -- is one week realistic and make it go away in a week.
>> can I call the judge's office this afternoon and tell them whether or not we need to roll it over -- [multiple voices] is that we will put the notes on that we want to do it for next week. If that's not realistic, we have a desire to get this finalized. I think you all do, too. Is that agreeable to everybody on the board?
>> yes.
>> thank you.
>> great.
>> thank you awl.
>> we want this to be closed.
>> thank y'all.
>> move adjourn.
>> I will second that. Moved and seconded we adjourn the health facilities corporation. All in favor? Hat passes unanimously, we will e this on for the hopefully last time next week.
Last Modified: Wednesday, June 23, 2004 8:44 AM