HomeMy WebLinkAboutContract 47757-A2 a ,;; s :ro
CITY SECRETARY ;
ECF ''ONTRACT NO.
Cm'or,,o lg SECOND AMENDMENT TO CITY SECRETARY CONTRACT NO. 47757
c\,� ApV WHEREAS, the City of Fort Worth ("City") and North Texas Area Community Health
�4
Centers, Inc. ("Developer") made and entered into City Secretary Contract No. 47757 (the
"Contract");
WHEREAS, the Contract provided funding to Developer pursuant to a grant received by
the City from the United States Department of Housing and Urban Development("HUD")through
the Community Development Block Grant (CDBG) Program, Catalog of Federal Domestic
Assistance No. 14.218;
WHEREAS, a national objective of the CDBG Program is to benefit low and moderate
income families in accordance with CDBG Regulations at 24 CFR Parts 570.200 and 570.208;
WHEREAS, Developer is Tarrant County's only Federally Qualified Health Center and
provides comprehensive primary and preventative health services for primarily low and moderate
income children and adults in clinics that are located in service areas that are designated as
Medically Underserved Areas and Health Professional Shortage Areas;
WHEREAS, Developer proposes to use CDBG funds for an eligible project under the
CDBG Regulations whereby Developer will construct and operate a new community health center
on the north side of Fort Worth,which will also include office space for its staff and administrative
operations;
WHEREAS,Developer proposes to use New Markets Tax Credits available under Section
45D of the Internal Revenue Code of 1986, as amended (the "Code"), to provide a portion of the
capital financing for the project, and has received one or more letters of interest from Qualified
Community Development Entities (as defined in Section 45D of the Code) with respect to the
commitment of an allocation of these tax credits;
WHEREAS, the City agreed to loan Developer $300,000.00 of its CDBG Funds in the
form of a subordinate loan for a portion of costs of acquisition of property located at 4900 and
4920 Jacksboro Highway (now known as 2332 Beverly Hills Drive) and development soft costs
for the new community health center; and
WHEREAS, due to delays in funding and permitting, City and Developer wish to amend
the Contract to extend the Contract term and to change the dates of the completion of Phase II and
the Final Payment Phase;
NOW,THEREFORE, City and Developer hereby agree to amend the Contract as follows:
I.
The Parties acknowledge that the Contract is extended for(i) 1 year until May 31, 2019,
or(ii)the date that City determines in its sole discretion that the Required Improvements have
met the National Objective, unless earlier terminated as provided in the Contract.
F
FFICIAL RECORD
Amendment No.2 to CSC 47757 CITY SECRETARY
North Texas Area Community Health Centers,Inc. FT.WORTH,Tit Page 1
Northside Community Health Center
II.
Exhibit "C" — Construction and Reimbursement Schedule attached to the Contract is
hereby deleted in its entirety and replaced with Exhibit"C"—Construction and Reimbursement
Schedule Revised 5/2018,attached hereto this Second Amendment and incorporated into the
Contract.
III.
This amendment is effective as of the Effective Date of the Contract.
IV.
All terms and conditions of the Contract not amended herein remain unaffected and in full
force and effect, are binding on the Parties and are hereby ratified by the Parties. Terms not
specifically defined herein shall have the same meaning as in the Contract.
ACCEPTED AND AGREED:
CITY OF FORT WORTH
By: �v
Fernando Costa, Assistant City Manager
Date:
NORTH TEXAS AREA COMMUNITY HEALTH CENTERS, INC.
By:
Gerrie Whitaker, Chief Executive Of is
Date: 6 / I i I I y
Amendment No.2 to CSC 47757
North Texas Area Community Health Centers,Inc. Page 2
Northside Community Health Center
ADDITIONAL CITY SIGNATURES
APPROVED AS TO FORM AND LEGALITY:
By: `
Jessica Sangs , Senio ssist t City Attorney
ATTES : ?.a
T
pR
By: �;A
�4ar/Kayser, City Secreta
r;
M&C: C-27585 Date: 1/12/2016 v
M&C: C-27731 Date: 5/24/2016 �.
Form 1295: 2016-1159 TEXP
Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
Chad LaRoque
Housing Development and Grants Manager
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH$TX
Amendment No.2 to CSC 47757
North Texas Area Community Health Centers,Inc. Page 3
Northside Community Health Center
EXHIBIT "C"
CONSTRUCTION AND REIMBURSEMENT SCHEDULE REVISED 5/2018
NORTH TEXAS AREA COMMUNITY HEALTH CENTERS,INC.
Activity CDBG Funds
PHASE I Contract signed $0
ACTIVITIES:
■ Land Acquisition
PHASE I Contractor/subcontractor/vendor searches under the Federal
COMPLETED by: System for Award Management(www.sam.gov)must be $250,000.00
June 30,2016 submitted prig to any reimbursement under this Phase.
Pre-Development Soft Costs for Health Center Only
■ Pre-Construction Activities
■ Project Planning Activities
PHASE II ■ LegalFees
ACTIVITIES: ■ Architectural and Engineering Fees
■ Appraisal Fees
■ Loan Application Fees
PHASE H Contractor/subcontractor/vendor searches under the Federal
COMPLETED by: System for Award Management(www.sam.2ov)must be
August 31,2018 submitted prior to any reimbursement under this Phase. $30,000.00
FINAL Final Reimbursement of Development Soft Costs After:
PAYMENT ■ Punch List/Final Inspections by Neighborhood
PHASE Services Department Inspectors, if applicable
■ Construction Completed
FINAL PAYMENT
PHASE $20,000.00
COMPLETED by: Final Payment
December 31,2018
TOTAL CDBG
FUNDS $300,000.00
*NTACHC will be reimbursed for eligible expenses only. The amounts are estimates and are
subject to change.
**NTACHC must submit Reimbursement Requests and Complete Documentation to City
within 60 days from each of the deadlines above in order to be reimbursed. Failure to timely
submit Reimbursement Requests and Complete Documentation along with any required
reports shall be an event of default.
Amendment No.2 to CSC 47757
North Texas Area Community Health Centers,Inc. Page 4
Northside Community Health Center
M&C Review Page 1 of 3
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FOTH
COUNCIL ACTION: Approved on 1/12/2016
REFERENCE �,.,,C-27585 19NS
DATE: 1/12/2016 NO.: LOG NAME: CDBG_NORTHSIDECLINIC
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Change in Use and Expenditure in the Amount of$300,000.00 in Community
Development Block Grant Funds to North Texas Area Community Health Centers, Inc., in
the Form of a Subordinate Forgivable Loan for the Northside Community Health Center to
be Located at 4900 and 4920 Jacksboro Highway, Authorize Execution of Contract and a
Substantial Amendment to the City's 2011-2012 Action Plan (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a Substantial Amendment to the City's 2011-12 Action Plan;
2. Authorize a change in use and expenditure in the amount of$300,000.00 in Community
Development Block Grant funds to North Texas Area Community Health Centers, Inc., in the form of
a subordinate forgivable loan for the new Northside Community Health Center to be located at 4900
and 4920 Jacksboro Highway;
3. Authorize the City Manager or his designee to execute a contract and any related documents with
North Texas Area Community Health Centers, Inc., for a two-year term beginning on the date of
execution;
4. Authorize the City Manager or his designee to extend the contract term for an additional one-year
term if North Texas Area Community Health Centers, Inc., requests an extension and such extension
is necessary for completion of the project; and
5. Authorize the City Manager or his designee to amend the contract, if necessary, to achieve project
goals provided that the amendment is within the scope of the project and in compliance with City
policies and applicable laws and regulations governing the use of federal grant funds.
DISCUSSION:
North Texas Area Community Health Centers, Inc. (NTACHC), proposes building a new Northside
Community Health Center to meet increased community need because its current location on North
Main Street in the Vinnedge Building is at capacity. The first phase of the project consists of land
acquisition and the new construction of an approximately 30,650 square-foot health center, including
office space for NTACHC office staff as well as 155 parking spaces. The new health center will offer
a wide range of services, such as primary health care, pediatric care, integrated mental health,
comprehensive dental, pharmacy, medication management, vision, patient education and health
promotion. At full operational capacity, the proposed health center will house 15 full time providers
who will serve an estimated 24,000 unduplicated patients resulting in an estimated 60,000 patient
visits per year. NTACHC plans to construct a wellness facility adjacent to the new health care center
for the second phase that will contain a health education room, community kitchen and exercise
areas.
The budget for both phases of the project is approximately$17,000,000.00. NTACHC has received
an allocation of approximately $5,000,000.00 in New Market Tax Credits and will apply for a
commercial loan of$5,000,000.00 for the first phase of the project. It has also started a capital
http://apps.cfwnet.org/council_packet/mc review.asp?ID=21756&councildate=1/12/2016 6/21/2018
.M&C Review Page 2 of 3
campaign to raise $4,500,000.00 for the first phase and expects to raise approximately
$7,000,000.00 in total for the project. Both the tax credits and the commercial loan are contingent
upon NTACHC having a successful capital campaign for the first phase of the project in cash and
pledges.
CDBG Contract and Loan
The City will enter into a contract with NTACHC for$300,000.00 of City CDBG grant funds in the form
of a subordinate forgivable loan.
Staff recommends the following contract and loan terms:
1. Contract term of two years commencing on the date of execution with one one-year
extension;
2. CDBG funds will be used for a portion of the predevelopment soft costs and acquisition costs
for
the land for the health center;
3. The health center must be operational by spring of 2018 and operate for five years;
4. The health center must serve at least 8,000 unduplicated patients annually;
5. Fifty-one percent of the patients served must have incomes at or below 80 percent of Area
Median Income as set by the United States Department of Housing and Urban Development
(HUD);
6. NTACHC will use its best efforts to create at least 15 jobs by year five of operation of the
health
center;
7. Loan term will be five years commencing on the date the health center gets its final
Certificate of
Occupancy;
8. Performance of the loan, the CDBG requirements and contract terms will be secured by a
deed
of trust; and
9. Loan will be deferred and forgiven at the end of the five-year term provided all CDBG
requirements and contract terms are met.
Expenditure of CDBG funds is conditioned upon the following:
1. Receipt of grant funds from HUD;
2. Satisfactory completion of an environmental review pursuant to 24 CFR Part 58;
3. Authorization to use grant funds from HUD;
4. Tax credit and commercial financing for the health center acceptable to City;
5. Successful capital campaign and award of New Market Tax Credits; and
6. Closing of tax credit and all other financing and contributions sufficient for completion of the
health center.
Staff recommends the change in use and expenditure of$300,000.00 of CDBG funds to NTACFC for
the project which will benefit moderate, low and very low-income citizens. The Action Plan funding
years selected may vary and be substituted in order to expend the oldest grant funds first. A public
comment period on the change in use of these CDBG funds was held from November 12, 2015 to
December 14, 2015. Any comments are maintained by the Neighborhood Services Department, in
accordance with federal regulations.
The project is located in COUNCIL DISTRICT 2, Mapsco 61F.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
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„M&C Review Page 3 of 3
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID I ID I Year (Chartfield 2)
21001 0190463 5330201 G00051 991918 $300,000.0
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID I I I Year Chartfield 2)
210011 0190463 1 5330201 1 G00051 I 1 991999 1 1 1 $300,000.0
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Avis Chaisson (6342)
Bette Chapman (6125)
ATTACHMENTS
Form 1295(19NSCDBG NORTHSIDE).pdf
Northside Comm Health Ctr Map.pdf
http://apps.cfwnet.org/council packet/mc review.asp?ID=21756&councildate=1/12/2016 6/21/2018
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Fo; TH
COUNCIL ACTION: Approved on 5/24/2016
DATE: 5/24/2016NOFERENCE,k,kC-27731 LOG NAME: 19NORTHSIDECLINICCONTRACTAMEND
CODE: C TYPE: CONSENT PUBLIC NO
NO
SUBJECT: Amend Mayor and Council Communication C-27585 to Change the Terms of the
Community Development Block Grant Loan to North Texas Area Community Health
Centers, Inc., for the Northside Community Health Center to be Located at 4900 and
4920 Jacksboro Highway to Allow the City to Close on the CDBG Loan Prior to the
Closing of the Tax Credits (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council amend Mayor and Council Communication C-27585 to
change the terms of the Community Development Block Grant loan to North Texas Area Community
Health Centers, Inc., for the Northside Community Health Center to be located at 4900 and 4920
Jacksboro Highway to allow the City to close on the CDBG loan prior to the closing of the tax credits.
DISCUSSION:
On January 12, 2016, the City Council approved a change in use and expenditure of$300,000.00 in
Community Development Block Grant (CDBG) funds to North Texas Area Community Health
Centers, Inc., in the form of a subordinate, forgivable loan for the Northside Community Health Center
(Health Center) to be located at 4900 and 4920 Jacksboro Highway (M&C C-27585).
The original conditions for expenditure of the CDBG funds approved by City Council required a
successful capital campaign and award of New Market Tax Credits. Among other things, it also
required the closing on the tax credits and all other financing and contributions sufficient for
completion of the Health Center. The Health Center was awarded tax credits; however, the closing of
the tax credits will not happen until later this year. This Mayor and Council Communication seeks to
modify the loan terms to allow the City to close on the CDBG loan prior to the closing of the tax
credits.
Staff has reviewed the current financing for the Health Center and recommends City Council approve
amending the loan terms to allow the CDBG funds to be used prior to closing on the tax credits. The
CDBG funds will be used for a portion of the land acquisition costs for the Health Center. Closing on
the land is expected to happen in the near future, several months before the closing on the tax
credits. Additionally, using the CDBG for acquisition costs allows the City to meet the federal CDBG
expenditure deadlines.
The project is located in COUNCIL DISTRICT 2, Mapsco 061F.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are available in the current operating budget, as
appropriated, of the Grants Fund. This is a reimbursement grant.
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M&C Review Page 2 of 2
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year I (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I ID I I I Year Chartfield 2
210011 0190463 1 53302011 G00005 991999 $300,000.0
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Bette Chapman (6125)
Avis Chaisson (6342)
ATTACHMENTS
FORM 1295(Northside Clinic).pdf
Northside Comm Health Ctr Map.pdf
f
http://apps.cfwnet.org/council packet/mc review.asp?ID=22325&councildate=5/24/2016 6/21/2018