HomeMy WebLinkAboutResolution 3761-07-2009A Resolution
NO 3761-07 2009
AUTHORIZING THE CITY ATTORNEY TO FILE A LAWSUIT
AGAINST NEAR SOUTHEAST COMMUNITY DEVELOPMENT CORPORATION
WHEREAS the City of Fort Worth (the City") through its City Attorney is
authorized to file and prosecute lawsuits on behalf of the City and
WHEREAS the Near Southeast Community Development Corporation
( NSECDC) contracted with the City to provide economic development and
affordable housing in the near southeast side and
WHEREAS the City provided HUD money to NSECDC to create economic
development and affordable housing in the near southeast side and
WHEREAS NSECDC has breached its contract with the City failing to deliver
economic development or affordable housing as it was obligated to do
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT
The City Attorney is authorized and directed to file suit against NSECDC for breach of
contract.
Adopted this 14th day of July 2009
ATTEST
By
Marty
ORT~VORT
APPR~OUEO
CITY COUNCIL
JUL 1 4 2009
~n~;~~
City Secretary of the
City of Fort Woxth, Texas
T
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7/14/2009 -Res. Noti 3761-,07-2009
...
DATE Tuesday July 14 2009
LOG NAME. 12NSECDC
REFERENCE NO G 16625
SUBJECT
Authorize the City Attorney to File a Lawsuit Against the Near Southeast Community Development
Corporation for Breach of Contract
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution allowing the City Attorney's office to
file a lawsuit against the Near Southeast Community Development Corporation for breach of contract.
DISCUSSION
The City contracted with the Near Southeast Community Development Corporation (NSECDC) in 1997 to
promote affordable housing and economic development in the near southeast side Under the contract
and its amendments the City administered Housing and Urban Development (HUD) money to NSECDC
to create jobs and affordable housing To date no jobs have been created and after an audit, HUD
demanded that the City repay $178 413 29 which represents the amount of funding for economic
development the City provided to NSECDC With regard to affordable housing NSECDC has acquired
approximately 29 lots and four single-family homes with funds provided by the City only one new home
has been constructed and sold NSECDC has breached its contract with the City by not delivering
economic development or providing affordable housing The City must now sue NSECDC to recover the
amount it has paid HUD and to acquire the property NSECDC purchased with City funding and for other
relief available at law and equity
Funding for the cost of the lawsuit will be provided by Housing and Economic Development Department.
FISCAL INFORMATION /CERTIFICATION
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated of the General Fund
FUND CENTERS
TO Fund/Account/Centers
FROM Fund/Account/Centers
GG01 539120 0171000 $50,000.00
CERTIFICATIONS
Submitted for City Manager's Office b~
Originating_Department Head.
Additional Information Contact:
Karen Montgomery (6222)
David Yett (7623)
Christopher B Mosley (7603)
Gerald Pruitt (7616)
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