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Contract 26440
CITY SECRETARY CONTRACT NO. , 24 LEASE AGREEMENT This LEASE AGREEMENT ("Lease") is made and entered into this day of 1)&c 2000, by and between the City of Fort Worth, a municipal corporation located in Tarrant County, Texas, by and through its duly authorized Assistant City Manager, Ramon Guajardo, ("Landlord"), and Latin Arts Association of Fort Worth, Inc., a Texas non- profit corporation, by and through its duly authorized president Robert Cortez hereinafter referred to as "Tenant". ARTICLE 1 USE, PREMISES ANDTERM Section 1.1. Utilization Of Leased Premises. The Landlord and Tenant agree that the primary use of the Leased Premises is to benefit low and moderate income citizens of Fort Worth. Tenant agrees to meet the National Objectives of activities benefiting low and moderate income individuals and to maintain full documentation supporting fulfillment of the National Objectives in its files. The National Objectives are promulgated by the United States Department of Housing and Urban Development (HUD) when awarding Community Block Development Grants (CBDG). These National Objectives and documentation/recordkeeping requirements are attached hereto as Exhibits"A" and`B". Section 1.2. Leased Premises. Landlord leases to Tenant and Tenant takes from Landlord the following property, collectively referred to as the "Leased Premises"; (a) The building known as the Roseland Theater and the real property located at 1440 North Main Street, Fort Worth, Texas and as more specifically described in the attached and incorporated Exhibit "C"; and (b) All the equipment, fixtures, furnishings, design, decor, decorations, installations appurtenances, and personal property which has been placed, installed, and erected in said space by Landlbrd; and Section 1.3. Commencement; Term. The term of this lease shall begin on I e- , 2000 (the "Commencement Date") and shall expire on � L, 6.e,, 1 1, 2005, subject to earlier termination as hereinafter provided (the "Term"). The Term may not be renewed unless Landlord and Tenant agree otherwise in writing before the expiration of Term. ARTICLE 2 LEASE PAYMENT Section 2.1. Annual Rent During Term. Tenant shall pay to Landlord, at the City Hall of Fort Worth, Texas an annual rent of ONE AND NO/100 DOLLAR (S 1.00). This amount shall be due and payable on each year following the lease Commencement Date. RC 1A, �__' G'JG��c ARTICLE 3 MAINTENANCE AND IMPROVEMENTS Section 3.1. Maintenance. Except where otherwise expressly provided herein, it is understood and agreed that the Leased Premises and all improvements thereon shall be operated and maintained at no expense to Landlord and that Tenant shall operate and maintain, at its sole expense, the Leased Premises, including buildings and improvements, in a condition at least equal to the condition of the Leased Premises at the commencement of the term of this lease. Specifically, Tenant shall be responsible for performance of all items of"Major Maintenance", as follows: (i) upkeep and repair (including replacement) of the roof, exterior walls, foundation, exterior canopies, gutters and water spouts, truck loading facilities and structural components of the Leased Premises, internal plumbing, electrical systems, utility services extending to the service connections within the Leased Premises, heating, ventilation and air conditioning systems, and Tenant shall promptly repair any damage to such improvements. Landlord shall continue to provide grounds maintenance services, including the irrigation system, at the level existing at the commencement of the Term of this Lease. Landlord shall also be responsible for maintaining the external plumbing extending from the structure to the service main. Tenant shall also at its sole cost perform such routine, operational, maintenance and housekeeping as is necessary to carry on Tenant's business, including but not limited to window glass replacement,janitorial service and regular servicing of mechanical and electrical systems. Section 3.2. Improvements By Tenant. Tenant may perform, at Tenant's expense, both non-structural and structural improvements ("Improvements") to the Leased Premises, "Non- structural improvements" include but are not necessarily limited to the following: interior painting, carpeting, and replacement of theater seating and lighting. "Structural Improvements" shall include but not necessarily be limited to the following: construction of additional structures on the Leased Premises or construction of additions to existing structures on the demised premises, and parking and vehicular access improvements. Section 3.3. Approval Required Before Certain Improvements by Tenant. No Major Maintenance or Structural Improvements in excess of$5,000 shall be performed by the Tenant unless and until the plans and specifications for same have been reviewed and approved in writing by Landlord, which approval will not be unreasonably withheld. All such plans and specifications, and the Structural Improvements constructed in connection therewith, must conform to all local, state and federal codes, laws, and regulations now in force or hereinafter prescribed by authority of law. Tenant agrees that at any time it undertakes any Major Maintenance or construction of any Structural or Non-Structural Improvements in excess of$25,000, it shall, at its own cost and expense, cause to be made and executed by the construction contractor two separate bonds, in accordance with Article 5160 of the Revised Civil Statutes of Texas as follows: (a) Prior to the date of commencement of construction, the contractor shall furnish a contract surety bond in a sum equal to the full amount of the construction contract awarded. Said bond shall guarantee the faithful performance of necessary construction and completion of improvements in accordance with approved final plans and detailed specifications, and shall guarantee the Tenant and Landlord against any losses and liability, damages, expenses, claims, and judgments caused by or resulting from any failure of the contractor to perform completely the work described as herein provided; and (b) Prior to the date of commencement of construction, a payment bond in a sum equal to the full amount of the construction contract awarded. Said bond shall guarantee payment by the contractor of all wages for labor and services engaged and of all bills for materials, supplies and equipment used in the construction of said Improvements. The bonds shall be joint obligee bonds, naming the City of Fort Worth and Latin Arts Association Inc. of Fort Worth. Tenant shall also require its contractors to carry construction insurance sufficient to insure against loss or destruction during the construction period. Section 3.4. Liens Tenant agrees that he shall have no power to perform any act or make any contract that may create a lien on the premises, structure or real property thereon and any contract or lien created shall be void. If any lien is created or filed against the premises, structure, or real property thereon, Tenant, at Tenant's sole expense, shall have the lien discharged within 10 days after the filing thereof, and Tenant's failure to discharge the lien shall constitute a breach of the Lease. Section 3.5 Reserve Funds For the Operation and Maintenance of the Leased Premises Tenant shall establish and maintain a reserve fund ("Fund") in the amount of$25,000 for the maintenance of the Leased Premises during the Term. In this regard, Tenant shall deposit $5,000 per year into the Fund from and after Commencement Date of the Lease, and continue the annual contribution until the Fund reaches the amount of $25,000. Thereafter, if Tenant withdraws money from the Fund for maintenance purposes, Tenant shall redeposit the amount withdrawn before the end of the second lease year from the date of the withdraw; provided that the minimum re-deposited amount shall be equal to the total amount withdrawn or $5,000, whichever is less; provided further that any remaining amount not redeposited shall be deposited into the Fund in the following lease year. Tenant may establish the Fund in an interest-bearing account and use the interest earned to offset its operation and maintenance costs. Tenant shall provide all documents to Landlord concerning the Fund, including but not limited to the balance and transaction history, upon Landlord's written request. If Landlord notifies Tenant in writing for termination of the Lease upon default according to Article 10 below, Tenant shall not withdraw any more money from the Fund and shall provide all bank statements regarding the Fund to the Landlord immediately. Further, Tenant shall immediately transfer the balance of the Fund to a specific account designated by Landlord. Thereafter, Landlord may use the remaining balance of the Fund for repair, reconstruction or maintenance of the Leased Premises. 3 MIT K—LO� °QY �� �[ a ARTICLE 4 USE; SIGNS; PARKING Section 4.1. Use. Tenant shall use and occupy the Leased Premises according to Section 1.1 as a recreational and entertainment facility for art entertainment, education, civic or cultural purposes, such purposes including but not limited to the presentation of plays, musicals, operas, operettas, concerts, films, ballet, folkloric ballet, dance, competitions or any other type of performance, the presentation of pictures, speeches and lectures, the conducting of meetings of any group and any similar use for which the building is suitable. Landlord warrants and represents that the Leased Premises may lawfully be used for said purposes during the Term. Upon termination of the Lease, Tenant shall surrender the Leased Premises to Landlord in the good and clean condition as received, normal wear and tear excepted. Section 4.2. Tenant's Inspection of Leased Premises. Tenant acknowledges that it has fully inspected the Leased Premises prior to the beginning of the Lease term and acknowledges that the Leased Premises are suitable for the intended use and purposes as specified in Section 4.1 above. Section 4.3. Name of Interior after Fort Worth Citizens. Tenant may name any interior facility after Fort Worth citizens without the approval of Landlord. However, Tenant shall not change the name of the theater or name the exterior of the Leased Premises. Section 4.4. Signs. Tenant shall have the privilege of placing on and in the Leased Premises such signs as Tenant deems necessary and proper in the conduct of Tenant's business; provided that all signage shall conform to the sign code of the City of Fort Worth. Section 4.5. No Hazardous or Toxic Substances Under no circumstances during the term of this Lease will tenant use or cause to be used in the business operated on the premises any hazardous or toxic substances or materials, or store or dispose of any such substances or materials on the premises. Section 4.6. Illegal Use Not Permitted Tenant may not use all or any part of the Leased Premises or any building situated on them for any use or purpose that violates any valid and applicable laws, regulation, or ordinance of the United States, the State of Texas, the County of Tarrant, or the City of Fort Worth, or other lawful authority with jurisdiction over the premises. ARTICLE 5 ASSIGNMENT AND SUBLETTING Section 5.1. Tenant shall have the right, without Landlord's consent, to grant concessions or licenses for sale of any or all of the merchandise, products, food, beverages, and items within the Leased Premises deemed necessary by Tenant for the presentation of musicals, HEW RX plays and other performances held in the Roseland Theater provided the grant of license or concessions comply with applicable laws. Section 5.2. Tenant shall have the right, with Landlord's consent, which will not be unreasonably withheld, to assign this Lease or sublet the Leased Premises or any part thereof. Section 5.3 Before Tenant sublets or rents the Leased Premises or any part thereof, Tenant agrees to develop a rental fee schedule. Tenant acknowledges and agrees that the fees charged must be reasonable and that excessive fees that have the effect of precluding low and moderate income persons from using the Leased Premises are not permitted. Tenant agrees that such fee schedule shall be subject to the Landlord's approval and shall not become effective until Landlord approves such schedule. Landlord shall not unreasonably withhold its approval. Section 5.3. If this Lease is assigned or if the Leased Premises or any part thereof is sublet, such assignment or subletting shall be upon and subject to all of the terms, covenants, and conditions contained in this Lease, and Tenant shall continue to remain liable thereunder. Upon any subsequent assignment or subletting, each subsequent assignee or sublessee shall continue to be and remain liable hereunder. Within thirty (30) days after the execution and delivery of any such assignment or sublease Tenant shall furnish to Landlord a duplicate original of the assignment or sublease which shall contain an assumption by the assignee or sublessee of all of the obligations of Tenant under this Lease. ARTICLE 6 BASIC UTILITY SERVICES AND TAX PAYMENTS Landlord warrants and represents that there is, or that Landlord shall supply, sufficient basic utility service lines and piping to the Leased Premises (including electricity, water, gas, and sanitary sewer) to service the electrical system and equipment, appliances, and fixtures currently installed in the Leased Premises for Tenant's requirements for lighting and for the operation of the Leased Premises for Tenant's uses and purposes. Tenant at its sole cost shall pay all taxes, insurance and utility services to the Leased Premises as they become due. ARTICLE 7 INDEMNITY AND INSURANCE Section 7.1 Indemnification Tenant covenants and agrees to and does hereby indemnify, hold harmless and defend, at its own expense, Landlord its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, occupation and use of the Leased Premises by Tenant, its officers, agents, employees, subcontractors, licensees or invitees, and caused by the alleged negligence of Tenant or the alleged concurrent negligence of Landlord and Tenant; provided that this indemnification does not cover claims suit or damages caused by the sole negligence of the officers, agents, servants or employees of Landlord; and said Tenant does hereby covenant and agree to assume all liability and responsibility of Landlord, its officers, agents, servants and employees for any and all claims or suits for property &A, uQD 57nu��1Jn����nPE11 PV loss or damage and/or personal injury, including death, to any and all person, of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, occupation and use of the Leased Premises by Tenant, its officers, agents, employees, subcontractors, licensees or invitees and caused by the alleged negligence of Tenant or the alleged concurrent negligence of Landlord and Tenant; provided that this indemnification does not cover claims, suits, damages or injury caused by the sole negligence of the officers, agents, servants or employees of Landlord. Tenant likewise covenants and agrees to, and does hereby, indemnify and hold harmless the Landlord from and against any and all injuries, damage, loss or destruction to property of the Landlord during the performance of any of the terms and conditions of this Lease and caused by the alleged negligence of Tenant or the alleged concurrent negligence of Landlord and Tenant; provided that this indemnification does not cover claims, suits, damages or injury caused by the sole negligence of the officers, agents, servants or employees of Landlord. Section 7.2. Workers' Compensation Insurance: For the construction of the improvements contemplated to be constructed by the Tenant, Tenant shall require its contractors to obtain and maintain during the life of the construction contract(s) and any extension period(s) thereof, statutory Workers' Compensation Insurance and automobile liability insurance on all employees to be engaged in construction work. Tenant further shall require its contractors to require its subcontractors thereto to obtain and maintain statutory Worker's Compensation Insurance and automobile liability insurance for the construction work. Section 7.3. Commercial General Liability Insurance. Tenant shall at all times during the term hereof, maintain a Commercial General Liability Policy of insurance with limits not less than $1,000,000 per occurrence, combined single limit for bodily injury or death and property damage, $2,000,000 aggregate. Said policy shall have the City of Fort Worth as an additional insured. Tenant shall furnish to Landlord a certificate of insurance verifying such coverage with a confirmation that such policy shall not be subject to cancellation except upon thirty (30) days' prior written notice to Landlord. Landlord may, at its option, also require Tenant to submit a copy of the policy or policies in effect as well as proof of payment of premiums. Section 7.4. Automobile Liability Insurance: The Tenant shall procure and maintain, during the life of this Lease and any extension period hereof, comprehensive automobile liability in an amount not less than $1,000,000 for each accident. This policy shall cover any automobile used in the course of and within the scope of this Lease. Such policy shall be endorsed to name the City as an additional insured. Section 7.5 Liquor Liability and Host Liability. If Tenant sells, gives, serves or allows alcoholic beverages to be sold, given or served, Tenant shall at all times during the term hereof maintain Liquor Liability coverage and Host Liability coverage with limits not less than $1,000,000 per occurrence, combined single limit for bodily injury or death and property damage, $2,000,000 aggregate. Section 7.6. Insurance Company Qualifications: Insurers of all lines of coverage specified and required shall be eligible to do business in the State of Texas and be of such financial strength and solvency so as to have a current A.M. Best Key Rating not less than A: 6 V7111 VII. The name of the agent or agents and the names of the insurers shall be set forth on all certificates of insurance. Tenant shall keep the required insurance in full force and effect at all times during the term of this Lease and any extension period thereof. Tenant shall furnish to City a certificate of insurance on a form approved by the City, evidencing that Tenant has obtained the required insurance coverage. All policies must provide that they may not be changed or canceled by the insurer in less than 30 days after the City had received written notice of such change or cancellation. Any failure on part of the Landlord to request certificates of insurance shall not be construed as a waiver of the insurance requirements specified in this agreement. Section 7.6. Insurance for Contents of Buildings. Tenant shall be responsible for maintaining any policy of insurance that will insure against loss of property owned by Tenant that is located on the Leased Premises. Section 7.7. Fire and Extended Coverage. Landlord shall maintain a policy of fire and extended insurance policy to cover the Roseland Theater Building and those structures immediately adjacent there to. Such insurance policy shall be for full replacement value. Section 7.8. Proper Use of Leased Premises. Tenant will not permit the Leased Premises to be used for any purpose which would render the insurance thereon void or the insurance risk more hazardous and will use its best efforts to use the Leased Premises and to store its property in such a manner as to minimize risk of loss by casualty, it being acknowledged that the use of the Leased Premises in the proper and ordinary conduct of Tenant's business for the purposes set forth herein shall not be considered in violation of this Section. ARTICLE 8 WAIVER OF SUBROGATION No party shall have any right or claim against the other party for any property damage (whether caused by negligence or other condition of the Leased Premises or any part thereof) by way of subrogation or assignment. Landlord and Tenant hereby waive and relinquish any subrogation right. To the extent Tenant is obligated to insure the Leased Premises, Tenant shall request its insurance carrier to endorse all applicable policies waiving the carrier's right of recovery under subrogation or otherwise in favor of the Landlord and provide Landlord a certificate of insurance verifying this waiver. ARTICLE 9 DAMAGE BY FIRE OR OTHER CASUALTY Section 9.1. Substantial Casualty. If the Leased Premises are materially damaged or rendered materially untenantable by fire or other casualty or if the Leased Premises are so damaged or so rendered untenantable by fire or other casualty that the repair, restoration, or rebuilding of the Leased Premises would require more than sixty (60) days for completion, Tenant will have the option, exercisable by written notice given to Landlord within ninety (90) days after the °))��IC� 7 occurrence of such fire or other casualty, to terminate this Lease upon a date specified in said notice, and in such event the term hereof shall expire in the same manner as if the date specified in said notice were the date herein originally specified for the expiration of the term. If Tenant does not give such notice, Landlord, at its sole discretion, may proceed to repair, restore, and rebuild the Leased Premises to its former condition within one hundred eighty (180) days from the date of such damage; provided, however, that Landlord will be under no obligation to expend any amount on rebuilding or repairing in excess of the amount of insurance proceeds actually received by Landlord. Tenant may pay for additional repairs in accordance with Article 3 of this Lease. The rent will abate from the date of such fire or other casualty, until the repairs, restoration, and rebuilding is completed. If Landlord chooses not to rebuild or restore the structure, the Lease will terminate and under no circumstances shall Tenant be entitled to any damages or recovery of any costs, except as provided herein. If this Lease is terminated pursuant to notice as hereinabove provided, no rent or additional rent shall be payable by Tenant for any period after the date of such fire or other casualty and the same shall be apportioned as of such date and any rent paid for any period beyond such date shall be repaid to Tenant. Section 9.2. Minor Casualty. If, the Leased Premises are damaged by fire or other casualty, where the damage can be repaired within a sixty(60) day period, Landlord will proceed with reasonable diligence to repair such damage; provided, however, that Landlord will be under no obligation to expend any amount on repairs in excess of the amount of insurance proceeds actually received by Landlord. Tenant may pay for additional repairs, in accordance with Article 3 of this Lease. If the Leased Premises are rendered untenantable by such damage, rent will be abated proportionally during the period during which repairs are being made. ARTICLE 10 DEFAULT - REMEDIES Section 10.1. Default, Notice, Termination. The occurrence of any one or more of the following events shall constitute an event of default("Event of Default")under this Lease: (a) Failure by Tenant to make any payment of rent or other payment required to be made by Tenant hereunder on the date that same is due, and such failure shall continue for a period of 10 days after notice from Landlord; (b) Tenant shall fail to comply with any term, condition or covenant of this Lease, other than the payment of rent or any other payment required to be made by Tenant hereunder, and shall not cure such failure within 30 days after written notice thereof is given to Tenant or commence to cure the default within the thirty day period if it is not immediately curable and diligently complete the repair in a timely manner; (c) Tenant or any guarantor of Tenant shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for the benefit of creditors; (d) Tenant or any guarantor of Tenant shall file a petition under any section or chapter of the United States Bankruptcy Code, as amended, or under any similar law or 8 statute of the United States or any state thereof, or an order for relief is entered against Tenant in connection with any involuntary bankruptcy proceeding filed against Tenant; (e) Abandonment by Tenant of any substantial portion of the Leased Premises or cessation of the use of the Leased Premises for the purpose as herein stated. Section 10.2. Remedies of Landlord. Upon the occurrence of any such Event of Default, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever: (a) Immediately reenter and remove all persons and property of Tenant from the Leased Premises, storing said property in a public warehouse or elsewhere at Tenant's expense without liability on the part of Landlord; (b) Should Landlord elect to reenter as herein provided, or should Landlord take possession pursuant to legal proceedings or pursuant to any notice provided for by law, Landlord may either terminate this Lease immediately upon written notice to Tenant; and/or (c) Collect by suit or otherwise, each installment of rent or other sum as it becomes due or enforce by suit or otherwise, any covenant, condition or term of this Lease required to be performed by Tenant. (d) All remedies herein provided to the Landlord shall be cumulative of all other remedies available to Landlord at law or in equity. Landlord agrees to mitigate its damages with good efforts including reletting or selling the Property. Section 10.3. Termination. Either party may terminate the Lease for good cause upon sixty-day written notice to the other. ARTICLE 11 CONTRACTING REQUIREMENTS Section 11.1. Minority and Women Business Enterprise Commitment. Tenant shall comply with the City of Fort Worth's competitive bidding procedures and the City's Ordinance No. 13471, as amended ("Ordinance"), concerning minority and women business enterprises in all of Tenant's contracts. Compliance by the Contractor with the goal and/or procedures outlined in the Ordinance is mandatory; failure by the Contractor to comply with such procedures shall constitute a breach of this contract and shall be grounds for termination by the City. Section 11.2. Contracting. Tenant shall manage the hiring, letting, contracting or franchising of any of the work necessary to fulfill any of its obligations or responsibilities under this Lease. All contracts must be in conformity with the terms and conditions of this Lease and applicable laws, rules, regulations and policies of the City of Fort Worth, including req»irements concerning competitive bidding for letting of contracts for improvements to public,pZ0_pe'_ 9 ARTICLE 12 NOTICES Section 12.1. Any notice, demand, request, or other communication hereunder given or made by either party to the other shall be in writing and shall be deemed to be duly given if hand-delivered or if mailed by registered or certified mail in a postpaid envelope addressed as follows: (a) If to Tenant: Secretary Latin Arts Association of Fort Worth, Inc. 1440 North Main Street Fort Worth, Texas 76106 (b) If to Landlord: City Manager City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 or at such other addresses as Tenant or Landlord, respectively, may designate in writing by notice pursuant to this Section. ARTICLE 13 QUIET ENJOYMENT Section 13.1. Quiet Enjoyment. Landlord covenants that if and so long as Tenant makes all payments required in this Lease and performs the terms, covenants, and conditions on Tenant's part to be performed, Tenant shall peaceably and quietly have, hold and enjoy the Leased Premises for the term of this lease, subject to the provisions of this Lease. Section 13.2. Title Warranty. Landlord warrants and represents that Landlord has good and marketable title to the real property of which the Leased Premises form a part, free and clear of all liens and encumbrances. ARTICLE 14 ADA COMPLIANCE Tenant shall make all improvements necessary to make the Leased Premises comply with the Americans With Disabilities Act of 1990 ("ADA"), 42 U.S.C. § 12101 et seq., and shall fully indemnify and hold Landlord harmless from and against any and all claims, losses, damages, suits, and liability of every kind, including all expenses of litigation, arising out of or in connection with the Leased Premises' compliance, or lack of compliance, with ADA. ARTICILE 15 NON-WAIVER ' ���. `fir I'u�G_� ?��UD r� SCS+ G?� Qy `_. trpr ` i' �Y�V"�i�L�litllle ��a 10 It is agreed that by the execution of this Lease, Landlord does not waive or surrender any governmental powers. ARTICLE 16 INDEPENDENT CONTRACTOR It is agreed that Tenant is an independent contractor and not an agent, representative, or employee of Landlord; that Tenant has exclusive right to control the details of his operations and shall be responsible for the acts and omissions of his agents, contractors, and subcontractors; that the doctrine of respondeat superior shall not apply to Landlord and Tenant, their agents, contractors and subcontractors; and that the Lease shall not be construed as creating a partnership or joint enterprise between Landlord and Tenant. ARTICLE 17 MISCELLANEOUS PROVISIONS Section 17.1. No Waiver of Breach. The failure of either party to insist on strict performance of any term, covenant, or condition hereof, or to exercise any option, herein contained shall not be construed as a waiver of such term, covenant, condition, or option in any other instance. Section 17.2. Written Modification. This lease may be amended from time to time only by an instrument in writing signed by both parties. Section 17.3. Access to Premises. Landlord may enter the Leased Premises at any reasonable time or upon reasonable notice to Tenant for the purpose of inspection and to repair the Leased Premises as required herein. Section 17.4. Adjacent Construction. Landlord must notify Tenant of plans to construct or repair improvements on adjacent property owned by Landlord and the scheduling thereof at least thirty (30) days prior to the commencement of the construction or repairs, except in the case of emergency repairs. Landlord acknowledges that Tenant's use of the Leased Premises is affected by heavy machinery and other aspects of such repair or construction and therefore agrees to provide Tenant with both (i) alternative routes of ingress and egress to the Leased Premises, (ii) substitute parking adjacent to the Leased Premises; both in a manner suitable for Tenant's use of the Leased Premises. Section 17.5. Relocation. Landlord shall not have the right to relocate Tenant or substitute space for the Leased Premises. Section 17.6. Warranty. Landlord warrants that the premises have been constructed in a good and workmanlike manner and that the premises are fit for their use as described in Section 4.1 of this lease. In the event that a defect in the premises is discovered during the first year of the lease term, Landlord agrees to use its best efforts to cause the contractor who performed the original work to fix such defect. Section 17.7 Best Efforts to Resolve Disputes. Landlord and Tenant agree to use their best efforts to resolve any disputes under the Lease and this is a condition precedent before the filing of any judicial proceeding, lawsuit, or complaint. Section 17.7. Captions. The captions in this lease are included for convenience only and shall not be taken into consideration in any construction or interpretation of this lease or any of its provisions. ARTICLE 18 VENUE Landlord and Tenant agree that venue of any action brought under this Lease shall be in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. ARTICLE 19 ENTIRE AGREEMENT AND SEVERABILITY This Lease constitutes the entire agreement of the Lessor and Tenant, and it supersedes any prior oral or written agreements about the Leased Premises. Further, If one or more of the provisions of this Lease is held invalid, unenforceable or illegal in any respect, the remainder of the Lease shall remain valid and in full force and effect. LANDLORD TENANT CITY OF FORT WORTH LATIN ARTS ASSOCIATION OF FORT WORTH,INC. Ramon Guajardo Robert Cortez Assistant City Manager President ATTEST: WITNESS CAA City, ecretary LettS APPR VED AS TO FORM AND LEGALITY: 7 'ontract Aut::ori--ation /U-02,41-CC City Atto ey - Date El EMU U 12 ,,�a U M �y CHAPTER 1 : OVERVIEW RF THE PROGRAM CHAPTER OVERVIEW This chapter provides a general overview of the Community Development Block Grant Program, including a brief synopsis of the history of the program, a summary of the objectives of the program, a list of eligible and ineligible activities and a description of the spending caps associated with the program. PROGRAM HISTORY ❑ The Community Development Block Grant(CDBG) Program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. ❑ CDBG grew out of the consolidation of eight categorical programs under which communities competed nationally for funds. The consolidated programs include: • Open Space; • Urban Renewal; • Neighborhood Development Program grants; • Historic Preservation grants; • Model Cities supplemental grants; • Public Facilities loans; • Neighborhood Facilities grants; and • Water and Sewer grants. PRIMARY CDBG OBJECTIVE (§ 570.2) ❑ The primary objective of Title I of the Housing and Community Development Act of 1974, as amended, is the development of viable urban communities. ❑ These viable communities are achieved by providing the following, principally for persons of low and moderate income: • Decent housing; -- • A suitable living environment; and (JlTi ` 1 • Expanded economic opportunities. r ur4�;rrn 1 ? ❑ To achieve these goals,the CDBG regulations outline eligible activities and the national objectives that each activity must meet. As recipients of CDBG funds, grantees are charged with ensuring that these requirements are met. ICF Consulting Page 1-1 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM 4 CDBG REGULATIONS ❑ The regulations implementing the CDBG Program are found at 24 CFR Part 570. ❑ The CDBG regulations were dramatically revised over the past several years, primarily to increase flexibility for grantees in carrying out funded activities, to reflect statutory changes, and to respond to audits of the program by the Inspector General. • January 5, 1995 (Effective February 6, 1995)—This rule established the guidelines for evaluating and selecting economic development projects and makes certain other changes to facilitate the use of CDBG funding for economic development, including microenterprise activities, Neighborhood Revitalization Strategies and Community Development Financial Institutions. • November 9, 1995 (Effective December 11,1995) —This consolidated rule updated the regulations to reflect significant statutory enhancements since 1987, corrected identified deficiencies, implemented relevant portions of the National Affordable Housing Act of 1990, amended the conflict of interest provisions, and provided criteria for performance reviews and timely expenditure of CDBG funding. • April 29,1996 (Retroactively effective December 11,1995)—This rule contained certain technical corrections to the rule published in November 1995. ❑ The January and November 1995 rules are provided in the Appendix to this manual (located behind the current regulations). The preambles to these rules contain important information and explanation for many of the changes made. ❑ The trend in many Federal programs, including CDBG, is toward greater flexibility. The recent regulation changes continued that trend by providing: • Greater flexibility regarding new construction; • Enhanced flexibility in the area of economic development;and • Increasingly manageable administrative requirements. ❑ These new flexibilities will be discussed throughout this manual and are summarized in memorandums from HUD located in the Appendix. KEY DEFINITIONS ❑ This section highlights key definitions that will be used throughout the coursebook. ❑ A more complete glossary of common CDBG terms is provided in the reference section of this manual. Entitlement Program ❑ The Entitlement Program is the portion of the CDBG Program that provides categorical block grants to loft-- metropolitan cities and urban counties. ICF Consulting Page 1-2 . asically CDBG Housing & Community Development Group 5eQtber 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM ❑ The Entitlement Program is the largest component of the CDBG Program receiving 70 percent of CDBG appropriations. ❑ Participating local governments automatically receive an annual allocation of CDBG funds. The grant amounts are determined by the higher of two formulas: • Data based on overcrowded housing, population and poverty; or • Data based on age of housing, population growth lag and poverty. State and Small Cities Program ❑ The State and Small Cities Program provides CDBG grants to state governments (except in the states of New York and Hawaii where HUD directly administers the program). ❑ Under this Program, State agencies then provide CDBG assistance to non-entitlement communities within their jurisdiction. ❑ This training manual focuses primarily on the regulations implementing the Entitlement Program. Although many of the rules for the State and Small Cities Program are very similar to the rules for the Entitlement Program, readers representing states or small cities are encouraged to consult the applicable regulations at 24 CFR Part 570, Subpart I and the statute for additional guidance. Y CDBG Recipient ❑ Local governments are known as recipients. As noted above, they participate in either the Entitlement Program (for cities over 50,000 in population, designated central cities of metropolitan statistical areas or urban counties with more than 200,000 people). ❑ Under the States and Small Cities Program (communities with populations of 50,000 or less), states receive funding directly from HUD and provide it to small cities (communities with populations of 50,000 or less), also referred to as units of general local government. Subrecipient ❑ An entity that assists the recipient to implement and administer its program. ❑ Subrecipients are generally nonprofit organizations that assist the recipient to undertake a series of activities, such as administer a home rehabilitation loan pool or manage a job training program. ❑ More,information on sub recipients is provided in Chapter 2 of this manual. Consolidated Plan ❑ The Consolidated Plan is prepared by the grantee in accordance with 24 CFR Part 91, which describes needs, resources, priorities and proposed activities to be undertaken with respect to HUD programs,,. � including CDBG. �� �'vRD KV Ry ICF Consulting Page 1-3 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM \ I J ❑ An approved Consolidated Plan is one which has been approved by HUD. The Consolidated Plan is discussed in Chapter 2. Low and Moderate Income ❑ Low and moderate income (also referred to in this manual as LMI) means.household annual income less than the Section 8 Low Income Limit, generally 80 percent of the area median income, as established by HUD. ❑ Below is a sample income chart indicating the low income limits as well as the 30% of median income and 50% of median income limits. Area: Baltimore, MD FY 1998 Median Family Income: $55,600 -------------------------------ADJUSTED INCOME LIMITS (by household size)------------------------------ 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8+ Persons 30% Limits .$11,700 $13,350 $15,000 $16,700 $18,000 $19,350 $20,700 $22,000 Very Low $19,450 $22,250 $25,000 $27,800 $30,000 $32,250 $34,450 $36,700 Income 50% Limits Low & $31,150 $35,600 $40,050 $44,500 $48,050 $51,600 $55,150 $58,700 Moderate Income 80%Limits ❑ Information on determining and documenting income can be found in Chapter 10: Program Performance. OVERVIEW OF ELIGIBLE ACTIVITIES AND NATIONAL OBJECTIVES ❑ As outlined in HUD's Guide to Eligible Activities and National Objectives (provided in the Appendix), grantees should take several key steps prior to funding any activity. These steps include: 1. Determine if the proposed activity is included in the listing of eligible activities; 2. Determine if the proposed activity falls within a category of explicitly ineligible activities; 3. Determine if the proposed activity can meet one of the national objectives; and 4. Ensure that carrying out the activity will help to meet the grantee's certification (of one to three years, as determined by the grantee) that 70% of its CDBG expenditures will be for activities that benefit low and moderate income persons. ❑ The remainder of this chapter briefly summarizes the eligible and inelii uities,and d s in detail the national objective and low and moderate income benefit certificatio ICF Consulting Page 1-4 Basically CDBG Housing &Community Development Group September 1998 L- . .. . CHAPTER 1 : OVERVIEW OF THE PROGRAM ELIGIBLE CDBG ACTIVITIES (§570201,570202,570203,570204,570205,570206) ❑ This section describes the range of activities eligible and ineligible under the CDBG Program. ❑ CDBG offers grantees a high level of flexibility in choosing program activities. Grantees are free to select those activities that best meet the needs of their communities, in accordance with the national objectives and requirements of the CDBG Program. ❑ The following is simply a representative overview of eligible CDBG activities. The activities have been loosely grouped in very general categories for the purposes of this manual. ❑ Please refer to the CDBG regulations for a more complete description of each of these eligible activities and for an overview of how and when each eligible activity may be undertaken. Activities Related to Real Prooerty ❑ Acquisition (§ 570.201(a)); ❑ Disposition (§ 570.201(b)); ❑ Public facilities and improvements (§ 570.201(c)), such as: • Acquisition, installation, construction and rehabilitation of infrastructure (e.g., water/sewer lines, streets and sidewalks); and . • Acquisition, construction or rehab of neighborhood facilities and facilities for persons with special needs (e.g., homeless shelters, group homes and halfway houses). ❑ Clearance and demolition (§ 570.201(d)); ❑ Interim assistance to arrest severe deterioration or alleviate emergency conditions (§ 570.201(f))—Note: this activity may include some specific types of services; please refer to the regulations for more information; ❑ Completion of urban renewal projects (§ 570.201(h))—Additional information about this activity may be found at § 570.800; ❑ Housing services in connection with Home Investment Partnerships (HOME) Program activities (§ 570.201(k)); ❑ Privately-owned utilities (§ 570.201(1)); ❑ Construction of housing assisted under Section 17 of the U.S. Housing Act of 1937 (§ 570.201(m)); ❑ Homeownership assistance (e.g., downpayment assistance, interest subsidies) (§ 570.201(n)); ti Dfl ICF Consulting Page 1-5 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM ❑ Rehabilitation activities (§ 570.202): • These activities are generally limited to buildings which are residential, low-income public housing, or publicly-or privately-owned commercial or industrial buildings. • The following types of rehabilitation activities may be undertaken: ✓ Acquisition for rehabilitation and rehabilitation for residential purposes; ✓ Labor, materials, etc.for rehabilitation of properties; ✓ Loans for refinancing existing secured indebtedness; ✓ Energy improvements; ✓ Water efficiency improvements; ✓ Connection to water and sewer lines; ✓ Some homeowner warranty, hazard and flood insurance premiums; ✓ Testing for and abatement of lead-based paint; ✓ Costs of acquiring tools to be lent for rehabilitation; ✓ Rehabilitation services; ✓ Assistance for the rehabilitation of housing under section 17 of the United States Housing Act of 1937; and ✓ Removal of material and architectural barriers. ❑ Code enforcement (§ 570.202(c)); ❑ Historic preservation (§ 570.202(d)); ❑ Renovation of closed buildings (§ 570.202(e)); and ❑ Lead-based paint testing and abatement (§ 570.202(f)). ❑ Additional information about these types of activities may be found in Chapter 3: Housing Activities and Chapter 5: Public Facilities. Activities Related to Economic Develooment ❑ The following economic development related activities are eligible under CDBR. • Microenter rise assistance § 570.201 o and 76 — C3 �-- • Special economic development activities (§ 570.203). Additional information about economic development activities maybe found in Cpe . ICF Consulting Page 1-6 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM - Activities Related to Public Services ❑ Public services are also generally eligible (§ 570.201(e)) -- NOTE: this list is not inclusive of all types of services that may be eligible under the CDBG Program: • Job training and employment services; • Health care and substance abuse services; • Child care; • Crime prevention; and • Fair Housing counseling. ❑ Additional information about the various types of public services is provided in Chapter 7. Assistance to Community Based Development Organizations ❑ CDBG recipients may also provide grants or loans to CBDOs to carry out the following types of projects (§ 570.204): • Neighborhood revitalization; • Community economic development; and • Energy conservation. ❑ Additional information about CBDOs maybe found in Chapter 2. Other Types of Activities ❑ Certain other types of activities are also eligible under CDBG, including: • Payment of non-Federal share of grants in connection with CDBG-assisted and -eligible activities (§ 570.201(g)); • Relocation assistance (§ 570.201(i)); • Loss of rental income (related to relocation) (§ 570.201(j)); • Technical assistance to public or nonprofit entities to increase the capacity of such entities to carry out eligible neighborhood revitalization or economic development activities (§ 570.201(p)); • Assistance to institutions of higher education with the capacity to carry out other eligible activities (§ 570.201(q)). 5�F7, ICF Consulting Page 1-7 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM Plannina and Administration ❑ It is also permissible to spend CDBG funds for planning activities (§ 570.205). Such activities might include: • Comprehensive plans; • Community development plans (including the Consolidated Plan); • Functional plans (for housing; land use and urban environmental design; economic development; open space and recreation; energy use and conservation; floodplain and wetlands management; transportation; utilities; historic preservation; etc.); • Other plans and studies (e.g., small area and neighborhood plans; capital improvements program plans; individual project plans; general environmental; urban environmental design; historic preservation studies; etc.); and • Policy-planning, management and capacity building activities. ❑ Finally, within certain caps and constraints, grantees may use CDBG funds for program administration activities (§ 570.206). Such activities might include: • General management, oversight and coordination; • Public information; • Fair Housing activities; • Indirect costs; • Submission of applications for Federal programs; and • Costs to pursue Section 17 of the United States Housing Act of 1937. ❑ Note that the provision in the regulations concerning administrative expenses to facilitate housing (§570.206(g)) is no longer valid. This part of the regulation refers to the eligibility of administrative expenses for the planning and financing of housing units identified in the grantee's Housing Assistance Plan (HAP). However, because the HAP no longer exists,this section has been nullified. ❑ Information concerning the limitation on planning and administration costs can be found later in this chapter. Ineligible Activities (§ 570.207) ❑ The general rule is that any activity not authorized under the CDBG regulations is ineligible to be assisted with CDBG funds. ICF Consulting Page 1-8 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM ❑ In addition, the regulations stipulate that the following activities may not be assisted with CDBG funds: • Buildings for the general conduct of government(e.g., city hall); • General government expenses; • Political activities; • New housing construction except under certain conditions or when carried out by a CBDO; and • Income payments. ❑ The following activities may not be assisted with CDBG funds unless authorized as a special economic development activity or when carried out by a CBDO: • Purchase of construction equipment or furnishings and personal property; and • Operating and maintenance expenses (of public facilities, improvements and services). ❑ NOTE: Specific exceptions to this general rule are operating and maintenance expenses associated with public service activities, interim assistance, and office space for program staff employed in carrying out the CDBG program. CONSTITUTIONAL PROHIBITION ❑ In accordance with the First Amendment concerning the separation of church and state, CDBG funds generally may not be used for religious activities or provided to primarily religious entities for activities. ❑ CDBG funds may not be used to acquire, construct or rehab properties used for primarily religious purposes or to promote religious interests regardless of the use of the property. However, CDBG funds may be provided for the rehabilitation of property owned by a religious organizations for a wholly secular purpose provided all of the following requirements are met: • The building that is to be improved with CDBG assistance has been leased to a new or existing wholly secular entity (e.g., a non-profit arm of the religious entity); • The CDBG funds are provided to the lessee (i.e., the secular entity) to make the improvements; • The property will be used exclusively for secular purposes and will be available to all persons regardless of religion; • The lease payments do not exceed the fair market rent for the property before the improvements were made; • The cost of improvements for portions of the building used for o1: s Tare and paid for by the religious entity (i.e., the property owner); and • The religious entity (i.e.,the property owner) enters into a legally binding agreement with the lessee (i.e., the secular entity) stating that the religious entity will pay(the grantee or subrecipient) for any ICF Consulting Page 1-9 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM a residual value of the improvements if the secular entity does not use the property for the useful life of the improvements. ❑ There are also limited circumstances under which CDBG may be provided to religious institutions for certain public service activities. Refer to Chapter 7: Public Services for detailed information. NATIONAL OBJECTIVES OF CDBG (§ 570.208) ❑ CDBG grantees are responsible for assuring that each eligible activity meets one of three national objectives: • Benefit to low- and moderate-income persons; • Aid in the prevention or elimination of slums or blight; and • Meet a need having a particular urgency (referred to as urgent need). ❑ The following sections outline each of the national objectives in more detail. NATIONAL OBJECTIVES LOW/MOD SLUM/BLIGHT URGENT NEED Area Limited Area Spot Benefit Clientele Basis Basis Housing Jobs Urban Renewal ICF Consulting Page 1-10 Basically CDBG Housing &Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM BENEFIT TO LOW- AND MODERATE-INCOME PERSONS (§ 570.208(a)) ❑ Under this objective, CDBG-assisted activities must benefit low and moderate-income persons using one of the following categories: • Area benefit activities; • Limited clientele activities; • Housing activities; or • Job creation or retention activities Area Benefit ❑ Area benefit is the most commonly used category for basic activities. It is an activity that benefits all residents in a particular area, where at least 51 percent of the residents are low- and moderate-income (LMI) persons. • The service area must be primarily residential and the activity must meet the identified needs of low- and moderate-income persons. ❑ An area is considered to meet the test of being low- and moderate-income if: • There is a sufficiently large percentage (51 percent) of low- and moderate-income persons residing in the service area by using the most recently available decennial Census information,together with the Section 8 income limits that would have applied at the time the income information was collected by the Census Bureau; or • If the recipient believes that the Census data do not reflect current relative income levels in an area, or where Census boundaries do not coincide sufficiently well with the service area of an activity, there is a sufficiently large percentage (51 percent) of low-and moderate-income persons residing in the service area as determined by a current survey of the residents of the service area. The survey results must meet statistical reliability standards and be approved by HUD. ❑ An exception to these requirements is permitted for metropolitan cities and urban counties. • A service area that contains less than 51 percent low-and moderate-income residents will be considered to meet the national objective if the proportion of low-and moderate-income persons in the area is within the highest quartile of all areas in the recipient's jurisdiction in terms of the degree of concentration of such persons. HUD will determine the lowest proportion a recipient may use to qualify an area for this purpose. ❑ Area benefit activity examples include: street improvements; water and sewer lines; neighborhood facilities; and facade improvements in neighborhood commercial districts. F1 U U C� Q UWQ U ICF Consulting Page 1-11 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM �, o0 Limited Clientele ❑ Limited clientele activities benefit a limited number of people as long as at least 51 percent of those served are LMI persons. These activities must: • Benefit a clientele that is generally presumed to be principally low- and moderate-income (abused children, battered spouses, elderly persons, severely disabled adults (see the box below), homeless persons, illiterate adults, persons living with AIDS and migrant farm workers); or • Require documentation on family size and income in order to show that at least 51 percent of the clientele are LMI; or • Have income eligibility requirements limiting the activity to LMI persons only; or • Be of such a nature and in such a location that it can be concluded that clients are primarily LMI. ❑ In addition, the following activities may qualify under the limited clientele national objective: • Removal of architectural barriers to mobility for elderly persons or the severely disabled (Notq: some restrictions do apply to these activities. See 24 CFR 570.208(a)(2)); • Microenterprise activities carried out in accordance with the HUD regulations when the person owning or developing the microenterprise is LMI; or • Activities that provide training and other employment support services when the percentage of persons assisted is less than 51 percent LMI may qualify if: the proportion of total cost borne by CDBG is no greater than the proportion of LMI persons assisted; and when the service assists businesses, CDBG is only used in the project to pay for the job training and/or supportive services. ❑ Examples of limited clientele activities include: construction of a senior center; public services for the homeless; meals on wheels for the elderly; and construction of job training facilities for the handicapped. Definition of Severely Disabled Persons are considered severely disabled if they: 1) use a wheelchair or another special aid for 6 months or longer; 2) are unable to perform one or more functional activities (seeing, hearing, having one's speech understood, lifting and carrying, walking up a flight of stairs and walking), needed assistance with activities of daily living (getting around inside the home, getting in or out of bed or a chair, bathing, dressing, eating and toileting) or instrumental activities or daily living (going outside the home, keeping track of money or bills, preparing meals, doing light housework and using the telephone); 3) are prevented from working at a job or doing housework; 4) have a selected condition including autism, cerebral palsy,Alzheimer's disease, senility or dementia or mental retardation; or 5) are under 65 years of age and are covered by Medicare or receive Supptemental-Sectt*-"e (SSI). ICF Consulting Page 1-12 Basi.ally CDBG Housing & Community Development Group °" ° Sanber 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM - f , -Mir, Housing Activities ❑ This is an eligible activity undertaken for the purpose of providing or improving permanent residential structures which, upon completion, will be occupied by low- and moderate-income persons. ❑ Structures with one unit must be occupied by low- and moderate-income persons. If the structure contains more than one unit, at least 51 percent must be LMI occupied. Two-unit structures must have at least one unit occupied by a low-and moderate-income household. • Rental buildings under common ownership and management which are located on the same or contiguous properties may be considered as a single structure. • For rental housing, occupancy by low-and moderate-income households must be at affordable rents, consistent with standards adopted and publicized by the grantee. ❑ Under the following limited circumstances, structures with less than 51 percent LMI occupants may be assisted: • Assistance is for an eligible activity that reduces the development cost of new construction of non- elderly, multi-family rental housing project; and • At least 20 percent of the units will be occupied by LMI households at an affordable rent; and • The proportion of cost bome by CDBG funds is no greater than the proportion to be occupied by LMI households. ❑ When housing activities are conducted by a community development financial institution (CDFI) or as part of an approved Neighborhood Revitalization Strategy, multiple units (e.g. scattered site housing) may be aggregated for the purposes of meeting the Low/mod national objective. • NOTE: This flexibility does not apply to activities under the Direct Homeownership Assistance eligibility category (570.201(n)). ❑ Examples of housing activities include: property acquisition or rehabilitation of property for permanent housing; conversion of non-residential structures into permanent housing; and new housing construction by a community-based development organization (CBDO). Job Creation or Retention Activities ❑ These are eligible activities designed to create or retain permanent jobs, at least 51 percent of which (computed on a full-time equivalent basis) will be made available to or held by low-and moderate-income persons. ❑ The following requirements must be met for jobs to be considered created or retained. • If grantees fund activities which create jobs, there must be documentation indicating that at least 51 percent of the jobs will be held by, or made available to, low- and moderate-income persons. -- ICF Consulting Page 1-13 Basically CDBG Housing & Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM • For funded activities which retainjobs,there must be sufficient information documenting that the jobs would have been lost without the CDBG assistance and that one or both of the following applies to at least 51 percent of the jobs: ✓ The job is held by a low- or moderate-income person; or ✓ The job can reasonably be expected to turn over within the following two years and steps will be taken to ensure that the job will be filled by, or made available to, a low- or moderate-income person. ❑ The following requirements apply for jobs to be considered available to or held by low and moderate income persons. • Created or retained jobs are only considered to be available to low-or moderate-income persons when: ✓ Special skills that can only be acquired with substantial training or work experience or education beyond high school are not a prerequisite to fill such jobs, or the business agrees to hire unqualified persons and provide training; and ✓ The recipient and the assisted business take actions to ensure that low-and moderate-income persons receive first consideration for filling such jobs. • Created or retained jobs are only considered to be he/d bylow- or moderate-income persons when the job is actually held by a low- and moderate-income person. ❑ For the purpose of determining if the preceding requirements are met, a person may be presumed to be low-and moderate-income if: • He/she resides in a Census tract/block numbering area that has a 20 percent poverty rate (30 percent poverty rate if the area includes the central business district); and the area evidences pervasive poverty and general distress; or • He/she lives in an area that is part of a Federally-designated Empowerment Zone (EZ) or Enterprise Community (EC); or • He/she resides in a Census tract/block numbering area where at least 70 percent of the residents are LMI. ❑ Jobs created or retained at assisted businesses may be presumed to be LMI if the job and business are located in an area that: • Has a 20 percent poverty rate (30 percent poverty rate if the area includes the central business district) and the area evidences pervasive poverty and general distress; or • Is part of a Federally-designated EZ or EC. ❑ See 24 CFR Part 570.208(a)(4) for a complete explanation of these presumptions. u��OC D PENN@ CON�";FCP'RAA P ICF Consulting Page 1-14 - Basically CDBG Hniming P. rnmmiinity Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM ❑ As a general rule, each assisted business shall be considered to be a separate activity for purposes of determining whether the activity qualifies. ❑ However, in certain cases, such as where CDBG funds are used to acquire, develop or improve a real property (e.g., a business incubator or an industrial park), the requirement may be met by measuring jobs in the aggregate for all the businesses which locate on the property, provided such businesses are not otherwise assisted by CDBG funds. ❑ Additionally, where CDBG funds are used to pay for the staff and overhead costs of a CBDO making loans to businesses from non-CDBG funds, this requirement may be met by aggregating the jobs created by all of the businesses receiving loans during any one-year period. ❑ Potentially eligible activities include: construction by the grantee of a business incubator designed to offer office space and support services to new firms to help them become viable small businesses; loans to pay for the expansion of a plant or factory; and assistance to a business to prevent closure and a resultant loss of jobs for low- and moderate-income persons. ELIMINATION OF SLUM AND BLIGHT (§ 570.208(b)) ❑ These are activities which help to prevent or eliminate slums and blighted conditions. ❑ The activities must meet the criteria of one of the three following categories: • Prevent or eliminate slums and blight on an area basis; • Prevent or eliminate slum and blight on a spot basis; or • Be in an urban renewal area. Area Basis ❑ These are activities that aid in the prevention or elimination of slums or blight in a designated area: • The delineated area in which the activity occurs must meet a definition of a slum, blighted, deteriorated or deteriorating area under state or local law; • In addition,there must be a substantial number of deteriorated or deteriorating buildings or public improvements in the area, and the activity must address one or more of the conditions which contributed to the deterioration of the area; and • Documentation must be maintained by the recipient on the boundaries of the area and the conditions that qualified the area at the time of its designation. ❑ Examples include: assistance to commercial or industrial businesses; public facilities or improvements; and code enforcement. ❑ NOTE: When undertaking residential rehab in a slum/blight area, the building must be considered substandard under local definition and all deficiencies making the building substandard must be eliminated, before less critical-work is undertaken. ICF Consulting Page 1-15 Basically B Housing &Community Development Group September 199 CHAPTER 1 : OVERVIEW OF THE PROGRAM V Spot Basis ❑ These are activities which eliminate specific conditions of blight or physical decay on a spot basis not located in a slum or blighted area: • Only acquisition, clearance, relocation, historic preservation and building rehabilitation activities qualify for this national objective; and • Rehabilitation is limited to the extent necessary to eliminate a specific condition detrimental to public health and safety. ❑ Examples include: elimination of faulty wiring,falling plaster, or other similar conditions which are detrimental to all potential occupants; historic preservation of a public facility; and demolition of a vacant, deteriorated building. Urban Renewal Area ❑ These are activities located within an Urban Renewal project area or Neighborhood Development Program (NDP) action area which are necessary to complete an Urban Renewal Plan. ❑ A copy of the Urban Renewal Plan in effect at the time the CDBG activity is carried out, including maps and supporting documentation, must be maintained for record keeping purposes. URGENT NEED (§ 570.208(c)) ❑ Use of this category is extremely rare. It is designed only for activities that alleviate emergency conditions. Urgent need activities must meet the following qualifying criteria: • The existing conditions must pose a serious and immediate threat to the health or welfare of the community; • The existing conditions are of recent origin or recently became urgent (generally, within the past 18 months); • The recipient is unable to finance the activity on its own; and • Other sources of funding are not available. ❑ Example: A coastal city is struck by a major hurricane within the last month and does not have any other resources to demolish severely damaged structures which pose a danger to occupants of neighboring structures. This activity would qualify under the Urgent Needs National Objective. LOW- AND MODERATE-INCOME BENEFIT EXPENDITURES Low/Mod Percentage ;i5,���J�;" �`,?E���iGsM© ���u ❑ The primary objective of the CDBG Program is the development of viable urban communities principally for low and moderate income (LMI) persons. ICF Consulting Page 1-16 Basically CDBG Housing &Community Development Group September 1998 CHAPTER 1 : OVERVIEW OF THE PROGRAM 0 To meet the primary objective, the CDBG regulations require that grantees expend not less than 70 percent of CDBG funds for activities which benefit LMI persons. • Planning and administrative costs are excluded from the low/mod benefit calculation. • Activities meeting this requirement are those which qualify under one of the four Low- and Moderate- Income Benefit National Objective categories: ✓ Area basis; ✓ Limited clientele; ✓ Housing activities; or ✓ Job creation or retention. • The percentage calculation is based on aggregate CDBG expenditures over a period specified by the grantee (up to three years) in a certification to HUD. The certification must be included in grantee's annual Consolidated Plan action plan submission. Low/Mod Calculation Example FTotalenttittlerment grant amount $1,000,000 Lessplanning and admin (20 percent) 200.000 Equals amount subject to Low/Mod calculation $800,000 Multiplied by 70 percent x 0.70 Equa/sminimum to benefit low/mod $560,000 Amount subject to low/mod calculation $800,000 Lesslow/mod minimum56( 0.000) Equals maximum slum/blight and urgent needs $240,000 * NOTE: This example is for illustrative purposes only. It does not demonstrate the calculation for grantees on a multi-year certification cycle, and does not take into account program income. 0 Due to the 70 percent LMI benefit standard, grantees must limit expenditures under the Slum/Blight and Urgent Needs National Objectives in order to meet the low/mod expenditure requirement. PUBLIC SERVICES CAP 0 The CDBG regulations limit the amount of funding that can be used for public service activities. The limit is based on obligations for public services and cannot exceed: • 15 percent of that program year's entitlement grant; plus , p • 15 percent of the preceding year's program income. ICF Consulting Page 1-17 Basically CDBG Housing & Community Development Group September 1998 ATTACHMENT I CITY OF FORT WORTH INTERGOVERNMENTAL AFFAIRS AND GRANTS MANAGEMENT CONTRACT MANAGEMENT DIVISION REQUEST FOR FUNDS AGENCY: PROGRAM NAME: CONTRACT NUMBER: CONTRACT AMOUNT: CONTRACT DATE: DATE OF REQUEST: SECTION I(AGENCY) CURRENT MONTH CUMULATIVE I. Reimbursement Request 1. Expenditures: $ $ 2. Income A. Program Income $ $ B. City of Fort Worth $ $ C. Interest Earned CDBG Funds $ $ 3. Reimbursement(1 minus 2) $ $ 11.Advance Pay Requests/Repayment $ $ III.Reporting Interest 1.Interest over$25 per quarter returned to City of Fort Worth $ $ SECTION II(CITY) I.MARS—Purchasing Request A. MARS INPUT:Vendor/PO Number/Requisition Number: B. Fund/Account/Center: GR76/539120/013206132040 C. Total Amount of this Request: $ SECTION III I. Verification A. Contract Manager (Name) (Signature) (Date) B. MARS—Purchasing (Name) (Signature) (Date) C. Accounting (Name) (Signature) (Date) II. Authorization A. Agency (Name) (Signature) (Date) B. Contract Compliance Deidra Emerson Supervisor (Name) (Signature) (Date) C. Assistant to the City Manager (Name) (Signature) (Date) DISTRIBUTION: White-Accounting Blue-IAGM Green-Agency ^� Ldo CITY OF FORT WORTH ATT INTERGOVERNMENTAL AFFAIRS AND GRANTS MANAGEMENT CONTRACT MANAGEMENT DIVISION DETAIL STATEMENT OF COSTS 444A� - AGENCY CONTRACT NO. DATE TO PROGRAM REPORT PERIOD PROGRAM MONTHLY CUMULATIVE COST CATEGORY ACCOUNT BUDGET E:PENDITURES TO DATE BALANCE PERSONAL SERVICES Salaries 516 010 FICA 518 010 Life Insurance 518 050 Health Insurance 518 060 Unemployment Tax-State 518 090 Worker's Comp 518 040 Retirement 518 070 SUPPLIES Office Supplies 521 010 Postage 521 020 Teaching Aids(Equipment) 522 030 Food Supplies 522 030 Other Operating Supplies 523 300 CONTRACTUAL SERVICES Telephone 535 040 Electric 535 020 Gas[Utility] 535 010 Water/Waste Disposal 535 030 Rent[Building] 537 010 Custodial Services 539 220 Office Equipment Rental 537 030 Printinq 533 030 Repairs 536 010 Fidelity Bond 538 210 Liability Insurance 534 020 Legal&Accounting 538 050 Private Auto Allowance-Local 532 130 Advertising 533 010 Conferences&Seminars 531 180 Contractual Services 539 120 CAPITAL OUTLAY Furniture, Fixtures 541 330 Office Equipment,Com uters 541 370 Other Equipment 541 320 TOTAL Contractors Certification: I certify that the costs incurred are taken from the books of account and that such costs are valid and consistent with the terms of NAME and TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE PREPARE ONE FORM FOR EACH SOURCE OF FUNDS DISTRIBUTION: White: Accounting Blue: IAGM Green: Agency IABGM FORM 96-03 h �I�GO Cu M 1 SII �lm--I llu Ua 0 ATTACHMENT III CITY OF FORT WORTH INTERGOVERNMENTAL AFFAIRS AND GRANTS MANAGEMENT v CONTRACT MANAGEMENT DIVISION EXPENDITURES WORKSHEET Contract Number Agency Month TO Program REPORT PERIOD NO DATE CHECK PAYEE DESCRIPTION ACCOUNT NO. AMOUNT NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26 TOTAL TITLE OF AUTHORIZED OFFICER SIGNATURE and DATE DISTRIB MON White:Acw mting Blue:IAGM ��(I(��L�Ir� Green: ^vv5N (I^_D G?M °ff 0 Agency u cg G1, WF5FYI HI VEX. ATTACHMENT IV CITY OF FORT WORTH INTERGOVERNMENTAL AFFAIRS AND GRANTS MANAGEMENT �Q CDBG XXVI Senior Citizens 1.NAME AND ADDRESS OF SUB-GRANTEE 2.PROJECT NAME: NSEAM-LIVING AT HOME BLOCK NURSE NSEAM 3.CONTRACT No: 25963 MONTH: 970 East Humbolt Fort Worth,Texas 76108 4.DATE OF REQUEST: MONTH&YEAR 5. PROGRAM SERVICES AND ACTIVITIES CURRENT MDNTH CUMULA= Number of New Households and/or Persons Served 6A. DIRECT BENEFIT DATA(New Household and/or Persons Served American Total White Black- Hispanic Asian Pacific Indian Female- Non- Non- Islander Alaskan Head- Hispanic Hispanic Native Of Household CURRENT MONTH CUMULATIVE 6B. DIRECT BENEFIT(CONTINUED) Low/Mod Low Income Beneficiaries Beneficiaries CURRENT MONTH CUMULATIVE 7. AGE 0_4 547 18-24 25-54 55-64 64+ CURRENT MONTH CUMULATIVE 8. CERTIFICATION: The undersigned hereby gives assurance that to the best of my knowledge and belief,the data included in this report is true and accurate, and if a non-profit agency, has been approved by the governing body of the organization prior to submission. Date: Submitted by: Phone Num: IAGM/IDIS-RPT FORM 3 ATTACHMENT IV(A) 40O CITY OF FORT WORTH0 . INTERGOVERNMENTAL AFFAIRS AND GRANTS MANAGEMENT 1.Name and Address of Sub-Grantee 2.Project Name: 3.Contract No: Month: Contract Amount: 4.Date of Request: MONTH&YEAR 5. PROGRAM SERVICES AND ACTIVITIES: CURRENT CUMULATIVE 6. SCOPE OF WORK NARRATIVE: 7. PROBLEMS ENCOUNTERED/SOLUTIONS PROPOSED: 8. ANTICIPATED ACTIVITY DURING THE NEXT MONTH: 9. CERTIFICATION: The undersigned hereby gives assurance that to the best of my knowledge and belief,the data included in this report is true and accurate,and if a non-profit agency,has been approved by the governing body of the organization prior to submission. Date: Submitted by: Phone Num: IAG -RPT FORM 7A AT-IVA.frm o) z o LL as CL ea z d CL O a t 4 a s S d N w v c o c O o R N � , w E N � y F t � w w d � w o V CL z R o az d CM N x CA aQ> O ° 0 &- �o r o Y d 3 zz w o E O aZ ,„ av W N vi u .4 = > E^ z v Z V Z c >. �V w W N �o m a F � •E ca d m � d c Im c a ¢ °Lo' R c C O cn w ¢ V] d z C. z ~ p � Z C O U c LL m N L ❑ Wu U U 19 GO R N Z O U LU LU w W D Z Y LU m 0 O O Q W w o Z Q o Z) _ Z Z U_ H Z Zo o ¢ W J a U w w LU U) Z W U Z Z W O O ^ �' IN Exhibit"C" Roseland Theater also known as the property located at 1440 North Main Street, legal description Lot 3 & N PT Lot 4, Block 58 of the Googins Subdivision of the City of Fort Worth, Tarrant County, Texas YEN. City of Fort Worth, Texas lMAyarr and Council Consmunicadon DATE REFERENCE NUMBER ILOGNAME PAGE 10/24/00 L-12930 12LATIN 1 of 1 SUBJECT AUTHORIZE LEASE AGREEMENT WITH THE LATIN ARTS ASSOCIATION OF FORT WORTH FOR MANAGEMENT SERVICES OF THE ROSELAND THEATER LOCATED AT 1440 NORTH MAIN STREET, FORT WORTH RECOMMENDATION: It is recommended that the City Council authorize the City Manager to negotiate and execute a lease agreement with the Latin Arts Association of Fort Worth for five years for management services of the Roseland Theater. DISCUSSION: The City received a Section 108 loan from the U.S. Department of Housing and Urban Development in 1998 for development of the Mercado de Fort Worth project in the 1400 Block of North Main Street. Part of the project is to renovate the Roseland Theater to be used as a cultural and community gathering place, and most of the reconstruction and renovation has been completed. The grand opening of the theater is scheduled for October 28, 2000. The Latin Arts Association of Fort Worth (LAA) is a non-profit organization established to promote Latin arts and culture in the City and to encourage the youth of the community to pursue a life in the arts. The proposed lease agreement with the LAA will be for five years. LAA will manage the Roseland Theater and oversee its operation and maintenance. In addition to paying rental of $1.00 per year to the City, the LAA will set up a reserve fund in the amount of $25,000.00 for the maintenance of the Roseland Theater. The lease provides for the LAA to be able to name interior rooms of the theater in honor of Fort Worth citizens. This proposed project is located in COUNCIL DISTRICT 2. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Engineering Department, Real Property Management Division will be responsible for the collection and deposit of the yearly rent. CB:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Charles Boswell 8511 CITY COUNCIL Originating Department Head: David Yett 7606 (from) OCT 24 2000 Additional Information Contact: � J City Soca-eta of tha David Pett 7606 City of Fort worA 7'sxa