HomeMy WebLinkAboutOrdinance 22540-12-2016 ORDINANCE NO.22540-12-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS FUND IN AN AMOUNT OF $500,000.00
SUBJECT TO RECEIPT OF GRANT FUNDS AND PROGRAM INCOME FROM
THE URBAN DEVELOPMENT ACTION GRANT, FOR THE PURPOSE OF
FUNDING CONSTRUCTION OF THE MCDONALD SOUTHEAST YMCA;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2016-2017 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Grants
Fund in of$500,000.00 subject to receipt of grant funds and program revenue from the Urban Development
Action Grant, for the purpose of funding construction of the McDonald Southeast YMCA.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be curnulative of Ordinance No. 22393-09-2016 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Leann Guzman,Assistafit City Attorney Mary J. r, ity ecretary
ADOPTED AND EFFECTIVE: December 13,2016
Ordinance No. 22540-12-2016
Page 1 of 1
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/13/2016 - Ordinance No. 22540-12-2016
DATE: Tuesday, December 13, 2016 REFERENCE NO.: **C-28031
LOG NAME: 19YMCA UDAG
SUBJECT:
Authorize Expenditure in the Amount of$500,000.00 of Urban Development Action Grant Miscellaneous
Revenue in the Form of a Deferred Forgivable Loan to the YMCA of Metropolitan Fort Worth for the
Construction of the New McDonald Southeast YMCA to be Located at Approximately 2701 Moresby Street,
Authorize Execution of a Loan Agreement and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an expenditure in the amount of$500,000.00 of Urban Development Action Grant
miscellaneous revenue in the form of a deferred forgivable loan to YMCA of Metropolitan Fort Worth for
the construction of the new McDonald Southeast YMCA center to be located at approximately 2701
Moresby Street;
2. Authorize the City Manager or his designee to execute a Loan Agreement and any related documents
with YMCA of Metropolitan Fort Worth for a five-year loan term beginning on the date of execution;
3. Authorize the City Manager or his designee to amend the Loan Agreement 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 funds; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Grants Fund in the amount of$500,000.00 from available funds.
DISCUSSION:
YMCA of Metropolitan Fort Worth (YMCA) proposes to construct a new McDonald Southeast YMCA
Center located at approximately 2701 Moresby Street. YMCA will offer programs and services from this
new location, such as wellness classes, gym and fitness facilities, child care, youth programs, summer
camps, etc. The total development cost will be approximately $13,000,000.00. On December 1, 2015,
Mayor and Council Communication (M&C) C-27548 authorized an expenditure in the amount of
$2,300,000.00 in the form of a forgivable loan to the YMCA for the construction of a new Enhanced
Neighborhood Family Aquatics Center (E-NFAC) at the new McDonald Southeast YMCA Center, as well
as authorizing a Support Agreement for an annual subsidy and long-term major maintenance reserve fund
for the E-NFAC, which M&C was amended on December 6, 2016 (M&C G-18890) to amend milestones in
the Support Agreement.
Staff now recommends providing a forgivable loan of $500,000.00 of UDAG Miscellaneous Revenue to
the YMCA for the portion of the facility that is not the E-NFAC. UDAG Miscellaneous Revenue funds are
rental revenues received from the lease of the City-owned parking garage under General Worth Square
(City Secretary Contract No. 11085 as amended and assigned). UDAG funds must be used for projects
Logname: 19YMCA UDAG Page 1 of 3
that meet certain Community Development Block Grant (CDBG) program requirements, including use in a
CDBG-eligible area, be a CDBG economic development project and include private investment. Annual
revenue from the parking garage is approximately $100,000.00 and after funding this loan, the parking
garage rental revenues account will have a remaining balance of approximately $300,000.00.
The forgivable loan would be on the following terms:
Developer Commitments:
1. Invest a minimum amount of$13,000,000.00 in the development of the project by May 31, 2018;
2. Obtain final Certificate of Occupancy (CO) by May 31, 2018;
3. Make reasonable efforts to create 20 new jobs for Central City residents by the end of the second
year loan term, with the following benchmarks:
• Make reasonable efforts to create 10 new jobs for Central City residents by the end of the first year
loan term, 5 of which will be seasonal;
• Make reasonable efforts to create an additional 10 new jobs for Central City residents by the end of
the second year loan term, 5 of which will be seasonal; and
• Award 50 households living in the Columbia at Renaissance Square developments 20% off monthly
membership fees.
City Commitments:
1. Five year loan at 0% interest evidenced by a note and secured by a deed of trust against the
property;
2. Payment of$400,000.00 of loan funds throughout construction; and
3. Payment of $100,000.00 of loan funds upon satisfactory evidence of meeting the one year
Developer Commitments.
The loan will be forgiven at the end of the five-year loan term as long as YMCA has met all the terms of
the Loan Agreement. The Deed of Trust will secure YMCA's performance of the loan conditions as well as
repayment of the loan funds if the loan terms are not met. If YMCA does not meet its commitments, it
must repay the loan within 24 months of the end of the loan term, which will be extended accordingly.
Staff has reviewed the project and has determined that it meets federal requirements for use of UDAG
Miscellaneous Revenue. This project will accomplish the public purpose of furthering the United States
Department of Housing and Urban Development's national objective of promoting activities that benefit
low- and moderate-income persons.
The project is located in COUNCIL DISTRICT 8, Mapsco 78W.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, and adoption of the
attached appropriations ordinance, funds will be available in the current operating budget, as
appropriated, of the Grants Fund. This is a reimbursement grant.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # �mountl
ID ID Year Chartfield 2
Logname: 19YMCA UDAG Page 2 of 3
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Alice Cruz (7322)
Additional Information Contact: Avis Chaisson (6342)
Logname: 19YMCA UDAG Page 3 of 3