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HomeMy WebLinkAboutContract 27287 CITY $ECRETARY ,)q,�-1 fs CONTRACT No . STATE OF TEXAS § COUNTY OF TARRANT § Amendment to City Secretary Contract No. 24177 THIS contract is made and entered into by and between the City of Fort Worth ("City"), acting and through Charles Boswell, its duly authorized Assistant City Manager, and Fort Worth Economic Development Corporation. ("Contractor"), by and through Mr. Larry McNatt, its duly authorized Executive Director. Contractor's business address is 1150 South Freeway, Suite 215, Fort Worth, Texas 76104. WHEREAS, the City of Fort Worth received Section 108 Loan funds from the United States Department of Housing and Urban Development ("HUD"); and, WHEREAS, the primary purpose of the Section 108 Loan Program is to provide low interest loans to businesses which employ low and moderate income citizens of Fort Worth; and, WHEREAS, the citizens of Fort Worth, the Community Development Council, and the City Council of Fort Worth have determined that Economic Development Programs are needed by low and moderate income citizens of Fort Worth; and WHERAS, the City of Fort Worth and the Fort Worth Economic Development Corporation entered into City Secretary Contract No. 24177 ("Contract") in order to deliver loan origination services to business who create jobs for low and moderate income citizens of the City of Fort Worth, a copy of the Contract is attached hereto as Exhibit A and incorporated herein by reference as if set forth in full; and WHEREAS, the City of Fort Worth and the Fort Worth Economic Development Corporation would like to extend the Contract to May 31, 2002; NOW, IT IS THEREFORE AGREED THAT: I. That the Contract, City Secretary No Contract No. 24177 is extended to May 31, 2002. All other terms and conditions of the Contract remain unchanged and in full force Z7 and effect. Vie, W, S"!W A w- jgig iF 7""YN a 1 V1 91 IN WITNESS WHEREOF,the parties hereto havp executedthree copies of this contract in Fort Worth, A day ofr D. 20 Tarrant County,Texas,this CITY OF FORT WORTH Fort Worth Economic Development Corp. By: — By: i 1Y— -- Charles R. Boswell Larry m—c —t Assistant City Manager Executive Director APPROVED AS TO FORM AND LEGALITY- City Attornej Date Ti EST: -4 ity Secretary Contract Authorization Date ml IRA oz n P wu 15 fmv 2 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Charles Boswell, known to me to be the person whose name is subscribed to the foregoing instrument,and acknowledged to me that the same was the act of the City of Fort Worth and that ity of Fort Worth for the purposes and consideration therein he executed the same as the act of said C expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this k4 day of A.D. 20.LL. POSELLA BARNES 40TARY PUBLIC '3tate of Texas; Exp,03-31-200-5 Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME,the undersigned authority,a Notary Public in and for the State of Texas,on this day personally appeared Mr. Larry McNatt, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he\she executed the same for the purposes and consideration therein expressed, as the act and deed for Southeast Economic Development Corporation, Inc. and in the capacity therein stated as its duly authorized officer or representative. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 151k day of a.CA" �-D.20 C' 7 Notary lic i and for ota the State of Texas 3 8I7 �{ C ',' ' °C= PTARY P STATE OF TEXAS § COUNTY OF TARRANT § THIS contract is made and entered into by and between the City of Fort Worth("City"), acting and through Ramon Guajardo,its duly authorized Assistant City Manager, and FWEDC("Contractor"), by and through Danny Coleman,its duly authorized President. Contractor's business address is 100 East 15`' Street, Suite 500-136,Fort Worth, Texas 76102. WHEREAS, the City of Fort Worth has been notified that it will receive Section 108 Loan funds from the United States Department of Housing and Urban Development("HUD"); and, WHEREAS,the primary purpose of the Section 108 Loan Program is to provide low-interest loans to businesses which employ low and moderate income citizens of Fort Worth; and, WHEREAS,the citizens of Fort Worth,the Community Development Council,and the City Council of Fort Worth have determined that Economic Development Programs are needed by low and moderate income citizens of Fort Worth; NOW, THEREFORE, THIS AGREEMENT FURTHER WITNESSETH: THAT, the parties covenant and agree as follows: 1. SCOPE OF SERVICES a. Contractor will deliver loan origination services to citizens of the City of Fort Worth under the program name Mercado Fort Worth Program("Program"), from 1 July 1998 to 30 June 2001 in accordance with applicable laws and special conditions set forth in the contract for loan guarantee assistance between HUD and the city. b. Contractor will provide loan portfolio management services for a period equal to the life of the loans completed under this program and comply with the contract for loan guarantee assistance in Attachment IV. c. Contractor will perform job tracking services related to this program following job tracking procedures outlined in Attachment III. d. Contractor agrees to meet the National Objective of activities that will benefit low and moderate income individuals through job creation/retention or area benefit and to maintain full documentation supporting fulfillment of the National objective in its files. e. City will monitor the performance of the Contractor against the goals and performance standards required herein. Substandard performance as determined by City will constitute non-compliance with this Agreement, If action to correct such substandard performance is I not taken by Contractor within thirty (30) days after being notified in writing by City, contract suspension of termination procedures will be initiated. 2. PAYMENT a. The contractor is required to collect a$250.00 loan application fee from the borrower prior to consideration of loan application. b. City will reimburse Contractor for customary office costs, such as staff time, obtaining financial reports,and filing fees in an amount up to$10,000 on a$250.00 per loan application basis. Payment will be processed by City following receipt from Contractor of the Sub- Grantee's Request For Funds(Attachment I& 11). c. Contractor agrees to keep all Section 108 monies, received in the form of loan repayments, on hand in interest bearing accounts.All interest earned shall be reported to City on a monthly basis, at the same time as submission of monthly report following the end of the contract month during which the interest was earned. These amounts must be reported on the monthly financial statements filed pursuant to this contract. d. Repayment of Section 108 proceeds to the City shall be made on a quarterly basis. Contractor will not commingle Section 108 or CDBG monies with any other funds in any manner that would prevent City from readily identifying program expenditures for operation of the Program. e. The City acknowledges that the Contractor will assess a one and one-half percent(1.5%)loan processing fee and other fees such as appraisal,title insurance,etc.,to the borrower upon loan approval. This fee may be collected at the time of the closing or added to the total loan amount, at the option of the borrower. f. The Contractor will also assess a one-half percent (0.5%) loan servicing charge to all approved borrowers monthly,based on outstanding loan balances. 3. UNIFORM ADMINISTRATIVE REQUIREMENTS AND PROGRAM MANAGEMENT STANDARDS a. Financial Management i. Accounting Standards The contractor agrees to comply with OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. ii. Cost Principles Contractor shall administer the Program in conformance with OMB Circular A-122,"Cost Principles for Non-Profit Organizations"and attachments and revisions thereto,regarding principles for determining cost for the Program. b. Documentation and Record Keeping i. Requirement Contractor Shall maintain all records pertinent to the activities to be funded under this Agreement required by HUD regulations specified in 24 CFR 570.506. In addition, 2 Contractor agrees to keep records to fully document all expenditures charged to the Section 108 program. The documentation must support the amounts charged to Program and demonstrate that the expenditures were appropriate to the stated goals of the Program and allowable under applicable federal, state and City guidelines. ii. Retention (1) All records pertaining to Program shall be retained for five(5)years following the date of termination of this contract. Contractor may destroy Program records at the end of this five(5)year period if no outstanding audit finding exists. (2) Contractor will retain Program loan records until five (5)year after the expiration of the loan. iii. Property Records The Contractor shall maintain real property inventory records which clearly identify properties purchased,improved,or sold. Properties retained shall meet eligibility criteria and shall conform with 24 CFR 570.505. iv. Close Outs The Contractor's obligation to the City shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to City), and determining the custodianship of records. v. Audits and Inspections (1) City, HUD, and the United States Comptroller General, or their representatives, shall have access to any books, documents, records and papers relating to the operations of Contractor under this Agreement for the purpose of audit, examination, exception and exception at all reasonable hours at all offices of Contractor. (2) For all contracts in the amount of$300,000 or more,Contractor must submit to City an annual audit prepared in accordance with 24 CFR Sections 570.502 - 570.503 generally,with specific reference to OMB Circulars (with attachments) A-122 and A-133 as appropriate. The audit may cover either Contractor's fiscal year during which this contract is in force or cover the period of this contract. The audit must be prepared by an independent certified public accountant, be completed within twelve(12)months following the end of the period being audited and be submitted to City within thirty(30) days of its completion. (3) City reserves the right to perform an audit of Contractor's program operations and finances at any time during the term of this contract, if City determines that such audit is necessary for City's compliance with OMB Circular A-128. Contractor agrees to allow access to all pertinent materials. If such audit reveals a questioned practice or expenditure, such questions must be resolved within fifteen (15) days after notice to Contractor. If questions are not resolved within this period, City reserves the right to withhold further fimding under this and/or future contract(s). (4) If as a result of any audit it is determined that Contractor has misused, misapplied or misappropriated all or any part of the grant funds described herein, Contractor agrees to reimburse the City the amount of such monies so misused,misapplied aor misappropriated; plus the amount of any sanction, penalty or other charge levied against City because of such misuse,misapplication or misappropriation. 4. REPORTING PROCEDURES a. Program Income Contractor agrees that all program income from operation of the Program shall be reported to the City on a monthly basis and remitted to the City on at least a quarterly basis. b. Progress Reports i. Compliance The Contractor shall comply with City policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property, as defined by such policy,procured with funds provided herein. ii. OMB Standards The contractor shall procure all materials,property,or services in accordance with the requirements of OMB Circular A-114,Procurement Standards,and shall subsequently comply with Attachment N,Property Management Standards as modified by 24 CFR 570.502(b)(6), covering utilization and disposal of property. S. REVERSION OF ASSETS Contractor agrees to return to City any Section 108 funds remaining on hand at the end of the Contract. 6 APPLICABLE LAWS a. Federal Contractor agrees to comply with the following laws and the regulations issued thereunder as they are currently written or are hereafter amended during performance of this contract: • Title VI of the Civil Rights Act of 1964(42 USC 2000d et seq) • Title VIII of the Civil Rights Act of 1968 (42 USC 3601 et seq) * Executive Orders 11063, 11246, as amended by 11375 and as supplemented by Department of Labor regulations(41 CFR, Part 60) * Section 504 of the Rehabilitation Act of 1973 (29 USC 794) • The Immigration Reform and Control Act of 1986(Pub. L 99-603, 100 Stat. 3359, as ended.), specifically including the provisions requiring employer verification of the legal status of its employees • The Housing and Community Development Act of 1987 (Pub. L. 100-242, 101 Stat. 1815, as amended) * The Americans with Disabilities Act of 1990(42 USC 12101 et seq) b. Other Laws] 4 Contractor covenants and agrees that its officers,members, agents, employees,program participants and subcontractors shall abide by and comply with all other laws, federal, state and local,relevant to the performance of this contract,including all ordinances,rules and regulations of the City of Fort Worth and the Housing and Community Development Act of 1974(Pub. L. 93-383, 885 Stat. 633), as amended, and all regulations pertaining thereto. Contractor f rther promises and agrees that it has read, and is familiar with,terms and conditions of the Section 108 Loan Program under which funds are granted and that it will fully comply with same. It is agreed and under-stood that,if City calls the attention of Contractor to any-such violation of the part of Contract or any of its officers,members, agents, employees, program participants or subcontractors, then Contractor shall immediately desist from and correct such violations. 7. NONDISCRIMINATION a. Contractor, in the execution,performance or attempted performance of this contract and agreement,will not unlawfully discriminate against any person or persons because of sex, race, religion, age, disability, color or national origin, nor will contractor permit its offices,members agents, employees, subcontractors or program participants to engage in such discrimination. b. In accordance with the policy of the Executive branch of the federal government, Contractor covenants that neither it nor any of its officers, members, agents, employees, program participants or subcontractors,while engaged in performing this contract, shall, in connection with the employment, advancement or discharge of employees or in connection with the employment, advancement or discharge of employees or in connection with the terms, conditions or privileges of their employment, discriminate against persons because of their age except on the basis of bona fide occupational qualification, retirement plan or statutory requirement. c. Contractor further covenants that neither it nor its officers, members, agents, employees, subcontractors, program participants, or persons acting on their behalf, shall specify, in solicitations of advertisements employees to work on this contract, a maximum age limit for such employment unless the specified maximum age limit is based upon a bona fide occupational qualification,retirement plan or statutory requirement. d. In accordance with the provisions of the Americans With Disabilities Act of 1990 ("ADA"), Contractor wan-ants that it and any and all of its subcontractors will not unlawfully discriminate on the basis of disability in the provision of services to the ,general public, nor in the availability, terms and/or conditions of employment for applicants for employnient with Contractor, or employees of Contractor or any of its subcontractors. Contractor warrants it will fully comply with ADA's provisions and any other applicable federal state and local laws concerning disability and will defend, indemnify and hold City harmless against any claims or allegations asserted by third parties or subcontractors against City arising out of Contractor's alleged failure to comply with the above-referenced laws concerning disability discrimination in the performance of this agreement. e. This agreement is made and entered into with reference specifically to the ordinances 5 codified at Chapter 17, Article III, Division 3 ("Discrimination in Employment Practices"), of the City Code of the City of Fort Worth, and Contractor hereby covenants and agrees that Contractor,its officers,members, agents, employees and subcontractors, have fully complied with all provisions of same and that no employee, employee- applicant or program participant has been discriminated against by the terms of such ordinances by either the Contractor or its officers, members, agents, employees or subcontractors. 8. PROHIBITION AGAINST INTEREST a. No member, officer or employee of City or its designees or agents; no members of the governing body of the locality in which the Program is situated; and no other public official of such locality or localities,who exercises any functions or responsibilities with respect to the Program funded hereunder during his or her tenure of for one year thereafter, shall have any interest, direct or indirect,in any contract or subcontract, or the proceeds thereof, for work to be performed hereunder. Contractor shall incorporate, or cause to be incorporated, like language prohibiting such interest in all contracts and subcontracts hereunder. b. No member, officer, employee,or program participant of Contractor or its subcontractors shall have a financial interest,direct or indirect, in this contract or the monies transferred hereunder or be financially interested, directly or indirectly, in the sale to Contractor of any land,materials, supplies or services purchased with any funds transferred hereunder, except on behalf of Contractor, as an officer, employee,member or program participant. Any willful violation of the paragraph with the knowledge, expressed or implied, of Contractor or its subcontractors shall render this contract voidable by the City of Fort Worth. 9. MINORITYAND WOMEN BUSINESS ENTERPRISE COMMITMENT Contractor agrees to abide by the City of Fort Worth's policy to involve disadvantaged business enterprises(MIWBEs) in all phases its procurement practices and to provide them an equal opportunity to compete for contracts for construction provision of professional services,purchase of equipment and supplies and provision of other services required by City. 10. NON-ASSIGNMENT Contractor will not assign any or all of its rights or responsibilities under this contract without the prior written approval of City. Any purported assignment without such approval will be a breach of this contract and void in all respects. IL INDEPENDENT COA17 CTOR a. Contractor shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of City. Contractor shall have exclusive control of, and the exclusive right to control,the details of the work and services performed hereunder, and all persons perfortning same, and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program 6 participants, licensees or invitee. The doctrine of respondeat superior shall not apply as between City Contractor, its officer, members agents, servants, employees, subcontractors, program participants, licensees or invitees, and nothing herein shall be construed as creating a partnership or joint enterprise between City and Contractor. It is expressly understood and agreed that no officer,member,agent,employee, subcontractor, licensee,or invitee of the Contractor,nor any program participant hereunder,is in the paid service of City and that City does-not have the legal right to control the details of the task performed hereunder by Contractor, its officers, members, agents, employees, subcontractors,program participants, licensees or invitees. b. City shall in no way nor under any circumstances be responsible for any property belonging to Contractor, its officers, members, agents, employees, subcontractors, program participants, licensees or invitees,which may be lost, stolen,destroyed or in any way damaged; and Contractor hereby indemnifies and holds harmless City and its officers, agents, and employees from and against any and all claims or suites. 12. INSURANCE AND BONDING a. Contractor covenants and agrees to indemnify, hold harmless and defend, at its own expense, City and 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 kinds or character,whether real or asserted, arising out of or in connection with execution, performance, attempted performance or nonperformance of this contract and agreement and/or the operations, activities and services of the Program described herein,whether or not caused, in whole or in part,by alleged negligence of officers, agents, servants, employees,contractors or subcontractors of City; and Contractor hereby assumes all liability and responsibility of City and its officers, agents, servants, and employees for any and all claims or suits for property loss or damage and/or personal injury,including death, to any and all persons, of whatsoever kinds or character, whether real or asserted, arising out of or in connection with the execution,performance, attempted performance or non-performance of this contract and agreement and/of the operations,activities and services of the programs described herein, whether or not caused in whole- or in part, by alleged negligence of officers, agents, servants, employees, contractors, or subcontractors of City. Contractor likewise covenants and agrees to and does hereby indemnify and hold harmless City from and against any and all injury,damage or destruction of property of City, arising out of or in connection with all acts or omissions of Contractor, its officers, members, agents, employees, subcontractors, invitees, licensees, or prograin participants, or caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors or subcontrators of City. b. Contractor will maintain a blanket fidelity coverage in the form of an insurance bond in the amount of$100,000,to insure against loss from the fraud,theft or dishonesty of any of contractor's officers, agents trustees, directors or employees. The proceeds of such bond shall be used to reimburse City for any and all loss of Section 108 monies occasioned by such misconduct. To effecuate such reimbursement, such bond shall 7 include a rider stating that reimbursement for any loss or losses thereunder shall be made directly to City for the uses and benefit of Contractor. c. In the case of loan default(s)in this program on loans approved by the Contractor,neither the Contractor nor the Contractor's agents or officers shall be held financially responsible for losses sustained by the City in this program; unless the defaults are a result of willful misconduct or gross negligence on the part of the Contractor, its agents, officers, or employees. d. Contractor shall fimiish a certificate of insurance as proof that it has secured and paid for policies of public liability and automobile liability insurance covering risks incident to or in connection with the execution,performance,attempted performance or nonperformance of this contract and agreement. e. The amounts of such insurance shall not be less than the maximum liability which can be imposed on City under the laws of the State of Texas. Contractor understands and agrees that such insurance amounts may be revised upward at City's option and that Contractor shall revise such amounts within thirty (30)days following notice to Contractor of such requirements. f. Contractor will submit documentation to City that it has obtained insurance coverage and has executed bond as required in this contract within thirty(30) days of the executing of this contract and prior to payment of any monies hereunder. g. Contractor shall furnish proof that it has secured and paid for workers compensation insurance and commercial general liability insurance. Requirements under this section are subject to change upon thirty (30)day notice by the City. 13. WAIVER OF IMMUNITY If Contractor, as a charitable or nonprofit organization, has or claims an immunity or exemption(statutory or otherwise) from and against liability for damages or injury, including death, to persons or property; Contractor hereby expressly waivers its rights to plead defensively such immunity or exemption as against City. This section shall not be construed to affect a governmental entity's immunities under constitutional, statutory or common law. 14. TERMINATION a. In addition to, and not in substitution for, other provisions of this Agreement regarding the provision of public services with Section 108 funds,pursuant to Title I of the Housing and community Development Act of 1974, as amended, it is expressly understood and agreed by and between the parties hereto that this agreement is wholly conditioned upon the actual receipt by City of Federal Section 108 funds; that all monies distributed to contractor hereunder shall be exclusively from Federal monies received under said grant and not from any monies of City; and that if such funds under said grant are not timely forthcoming, in whole or in part City may, at its sole discretion, terminate this contract and agreement and City shall not be liable for payment for any work or services performed by Contractor under or in connection with this contract. b. City may tenninate this contract whenever such tennination is deterniined to be in the best interest of City, in event of Contractor's default, inability or failure to perfonn or to 8 comply with any of the terms herein, or for other good cause. The parties acknowledge that Section 108 funds paid hereunder are intended to provide only partial funding for Contractor's program operations. If non-CDBG funds included in the Operation Budget are not forthcoming to Contractor during the contract term, City may terminate this contract. c. Termination will be effected by written notice to Contractor, specifying the portions of the contract affected and the effective date of termination. Upon Contractor's receipt of such termination notice, Contractor will: • Stop work under the contract on the date and to the extent specified by City; • Cease expenditures of Section 108 monies, except as necessary for completion of the portions of the contract not terminated; and • Terminate all orders and contracts to the extent that they relate to terminated portions of the contract. d. Contractor will return to City any unused monies previously advanced to City under this contract within thirty (30) days of the effective date of contract termination. City will have not responsibility or liability for Contractor's expenditures or actions occurring after the effective date of contract termination. 15. CERTIFICATE REGARDING.LOBBYING a. The undersigned representative of Contractor hereby certifies,to the best of big or her her knowledge and belief,that:No federal appropriated funds have been paid of will be paid,by or on behalf of Contractor,to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement and the extension, contiutation, renewal, amendment, or modification of any federal of any federal contract, grant, loan or cooperative agreement. Contractor shall require that the language of this certification be included in all subcontracts or agreement involving the expenditure of federal funds. b. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant loan or cooperative agreement, Contractor shall complete and submit Standard Fo -LLL, "Disclosure Forin to Report Lobbying," in accordance with its instructions. 16, MISCELLANEO US PROVISIONS a. All terms of this contract shall apply to any and all subcontractors of Contractor who are in any way paid with Section 108 funds or who perform any work in connection with Contractor's program. b. The provisions of this agreement are severable, and, if for any reason a clause, sentence, paragTaph or other part of this agreement shall be determined to be invalid by a court or 9 federal or state agency,board of commission having jurisdiction over the subject matter thereof,such invalidity shall not affect other provisions which can be given effect without tile invalid provision. c. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of City's right to assert or rely upon any such term or right on any future occasion. d. Should any action,whether real or asserted, at law or in equity,arise out of the execution, performance, attempted performance or nonperformance of this contract and agreement, venue for said action shall lie in Tarrant County,Texas. e. This written instrument-and the exhibits attached hereto, which are incorporated by reference and made a part of this contract for all purposes,constitute the entire agreement between the parties hereto concerning the work and services to be performed hereunder, and any prior or contemporaneous,oral or written agreement which purports to vary from the terms hereof shall be void. Any amendments to the terms of this contract must be in writing and must be approved by each part to this contract. 10 IN WITNESS WHEREOF, the parties hereto have executed four copies this contra qt in Fort Worth,Tarrant County,Texas,this_ C day of ,� A. D. 1998. CITY OF FORT WORTH FORT WORTH ECONOMIC DEVELOPMENT CORPORATION Ramon Guajardo Danny C an Assistant City Manager President APPROVED S TO FOW AND LEGALITY: Assistant City Attorney Contract Authorization(M&C Number) AuC-u5f 2 4- t Cj 9 $ b — --q� Date Date ATTEST: City Secretary 11 STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Ramon Guajardo,know to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the City of Fort Worth and that he executed the same as the act of City of Fort For the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this '4"v\-- day of A. D. 1998. Z .CU'f I& Notary Public in*for the State of Texas SARAH JANE ODLE NOTARY PUBLIC •Of State of Texas Comm. Exp.01-29-2002 STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Mr. Danny Coleman, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, as the act and deed for Fort Worth Economic Development Corporation and in the capacity therein stated as its duly authorized officer or representative. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ,4 day of Ot A. D. 1998. --NATT P Up _Lj�� LARRY MCNATT Notary Publit in and for the State of Texas RRY PUBLkC. NOTAi T �_X" '7 ST All E QF TEXAS r 2-' Comm, Exp, Lit 12 City of Fort Worth, .Texas "agor**Noe cord cou"Cil 4:0MI"U"icatio" DATE — _ F�EFE���� 1�c��NAJME PA�� 6/2198 6807 02MERCADO 1 of 2 SUBJE CT AWAOAORIGINATION AND LOAN SERVICING CONTRACT TO THE FORT WORTH ECONOMIC DEVELOPMENT CORPORATION FOR THE MERCADO FORT WORTH PROJECT RECOMMENDATION: It is recommended that the City Council: I 1. Approve the transfer of $10,000 in Community Development Block Grant Year Sixteen (16) Funds to the Mercado Fort Worth Project; and 2. Authorize the City Manager to execute an agreement with the Fort Worth Economic Development Corporation for a fee not to exceed $10,000 for loan origination and loan servicing activities for the Mercado Fort Worth project. I DISCUSSION: On March 11, 1998, the U.S. Department of Housing and Urban Development (HUD) announced that the City has been approved for $5 million in Section 108 Loan Guarantees. The low-interest loan funds will be made available to eligible businesses in north Fort Worth which are a part of, or compliment, the Mercado Fort Worth project, located in the 1400 block of North Main Street. It is proposed that the Fort Worth Economic Development Corporation (FWEDC) process and review loan applications on behalf of the City based on underwriting criteria to be determined by the City. A processing fee of $500.00 will be charged for each application (112 to be paid by the City) to offset incidental costs, such as staff time, obtaining credit reports and title information. Prior to application, potential borrowers will have access to free or low-cost loan packaging assistance through the Fort Worth Business Assistance Center (BAC), and its affiliated agencies. The $10,000 appropriated by the City will be used to pay $250 per application processing fee for forty (40) clients. Successful loan applicants will be charged a 0.5% loan servicing fee, which will be assessed monthly for the life of the loans. Additional one-time fees due at loan closing are: Loan processing fee (1,5% of total loan amount) f Appraisal fee ($1,000 to $1,500) E Construction management fee 1$500 or I% of construction budget) Title and legal fees I At the borrower's option. these fees can be rolled into the loan balance and paid over time, l i City of Fort Worth, Texas "agor and Council communiclntion DATE 6/2/98 REFERENCE NUMBER C-1 6807 1 1-66 NAME 02MERCADO 2 of 2 --§-u—E3jEcT –AWARD OF LOAN ORIGINATION AND LOAN SERVICING CONTRACT TO THE FORT WORTH ECONOMIC DEVELOPMENT CORPORATION FOR THE MERCADO FORT WORTH PROJECT FISCAL INFORMATION/CERTIFICATION: The Director of the Department of Finance certifies that funds are available in the current operating budget, as appropriated, of the Grant Fund. MG.j A( Oj,'N�T CF-N4FR AMOUNT CITY SECRETARY Submitted for pity Manager's FUND ACICOUNT Office by: r J 170)GR76 539120 013206088940 1 $10,000. T Rarn6n Gulajardo 6 J1 UN Originating Department Head- JUN 2 Joe Pantagua 616 —(from) 76 -120 (1)GR 539 005206088990 1 $MOOOM �7 712—)(,-;P�TF —rJ,1F, 4T C Richard Tucker 09