HomeMy WebLinkAboutOrdinance 22760-06-2017 ORDINANCE NO. 22760-06-2017
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF UP TO
$572,299.00, SUBJECT TO RECEIPT OF THE GRANT, FOR THE PURPOSE OF
FUNDING THE RENOVATION OF THREE (3) STOREFRONT RETAIL SPACES
LOCATED AT 3012, 3014, 3016 EAST ROSEDALE STREET AND THE
CONSTRUCTION OF PARKING LOTS TO BE LOCATED AT 3000 AND 3016 EAST
ROSEDALE STREET; 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 the amount of $572,299.00, subject to receipt of the grant, for the purpose of funding the
Renovation of Three(3) Storefront Retail Spaces Located at 3012, 3014, 3016 East Rosedale Street and the
Construction of Parking Lots to be Located at 3000 and 3016 East Rosedale Street.
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 cumulative 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of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECR AR
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As is ant UithAttorney ary J. y e
ADOPTED AND EFFECTIVE: June 13,2017
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/13/2017 - Ordinance Nos. 22760-06-2017 & 22761-06-
2017
DATE: Tuesday, June 13, 2017 REFERENCE NO.: **C-28270
LOG NAME: 19TWUUDAG2
SUBJECT:
Authorize Expenditure in the Amount of$572,299.00 of Urban Development Action Grant Miscellaneous
Revenue in the Form of a Forgivable Loan to Texas Wesleyan University for the Renovation of Three
Storefront Retail Spaces Located at 3012, 3014, 3016 East Rosedale Street and the Construction of
Parking Lots to be Located at 3000 and 3016 East Rosedale 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$572,299.00 of Urban Development Action Grant
miscellaneous revenue in the form of a forgivable loan to Texas Wesleyan University for the renovation of
three storefront retail spaces located at 3012, 3014, 3016 East Rosedale Street and the construction of
two parking lots to be located at 3000 East Rosedale Street and 3016 East Rosedale Street.
2. Authorize the City Manager or his designee to execute a Loan Agreement and any related documents
with Texas Wesleyan University;
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 governing the use of federal funds; and
4. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the
Grants Operating Other Fund in the amount of$307,330.00 and appropriate $572,299.00 to this project.
DISCUSSION:
Texas Wesleyan University, a nonprofit higher education institution, is spearheading an economic
revitalization effort in the economically distressed area designated by the City of Fort Worth as the
Polytechnic/Wesleyan Village. The Polytechnic/Wesleyan Village is located in southeast Fort Worth along
East Rosedale Street between Collard Street and Conner Avenue in Council District 8.
Texas Wesleyan University is the lead entity in redeveloping this two block span of mostly vacant
storefronts to their former function as "main street" businesses that provide neighborhood retail outlets
and professional service firms. To date, Texas Wesleyan University has invested $3,379,905.00 in
University, philanthropic and HUD grant funds to purchase and develop the 3000 and 3100 blocks of
storefronts.
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The first phase of improvements occurred to the storefronts along the 3100 block of East Rosedale Street
and was completed between August 2014 and April 2017. Those storefronts are now home to Texas
Wesleyan University's Community Counseling Center and Business Accelerator, both of which serve the
Polytechnic Heights and contribute to the overall economic health of the community.
Texas Wesleyan University is now seeking assistance for the second phase of improvements in the
amount of$572,299.00 from the City of Fort Worth to develop the 3000 block of East Rosedale Street.
Texas Wesleyan University proposes to renovate three storefront retail spaces located at 3012, 3014 and
3016 East Rosedale Street. Renovations will approve the storefronts to "white box" condition. Texas
Wesleyan University also proposes to construct two parking lots to be located at 3000 East Rosedale
Avenue and 3016 East Rosedale Street respectively. The UDAG Loan Agreement will complement
$716,802.00 of investment by Texas Wesleyan University to date in the storefronts/lots located at 3000,
3012, 3014 and 3016 East Rosedale Street.
These improvements are an essential step towards attracting businesses and restoring economic vitality
to the Polytechnic/Wesleyan Village.
Additional Investment Commitments:
Texas Wesleyan University commits to the following:
• Provide additional investments in tenant improvements in the amount of$383,160.00 ($40.00
per square foot).
• Forego revenue from Lease Agreements with tenants by providing 12 months of rent free
occupancy to allow the businesses to establish and sustain a revenue base, as well as
secure capital to fulfill their tenant improvement needs/obligations, valued at a minimum
of$114,948.00; and
• Generate the equivalent of at least 10 full-time jobs at Polytechnic/Wesleyan Village for the
employment of Central City residents.
Any revenue, less maintenance and operation expenses, generated in subsequent years will be applied to
Texas Wesleyan University's debt obligation resulting from the 2014 financing required to purchase
storefronts within the 3000 and 3100 blocks. Initial projections suggest that rental revenue collected over a
span of 10 years will be sufficient to retire the debt. Subsequently, Texas Wesleyan University anticipates
the 3012, 3014 and 3016 storefronts will be revenue-neutral until 2027.
Loan Terms:
Staff recommends entering into a UDAG Loan Agreement with the following terms and conditions:
• 0 percent interest loan with a term of five years;
• Loan to be evidenced with a note and a deed of trust, which will be placed on the property to secure
performance, with a performance period that will run concurrently with the loan term (five years);
• In the event that TWU should sell these properties; then the UDAG funds loaned are repaid to the
City from the proceeds of the sale to be used for other conforming projects;
• Funds are to be provided on a reimbursement basis;
• TWU must employ the equivalent of at least 10 full-time positions for Central City residents; and
• Loan shall be forgiven if all terms and conditions are met.
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 that meet certain Community Development Block Grant
(CDBG) program requirements, including use in a CDBG-eligible area, qualification as a CDBG economic
development project and inclusion of private investment. Annual revenue from the parking garage is
Logname: 19TWUUDAG2 Page 2 of 3
approximately $100,000.00 and after funding this loan, the parking garage rental revenues account will
have a remaining balance of approximately $65,000.00.
Staff has reviewed the project and has determined that it meets the federal requirements for the use of
UDAG Miscellaneous Revenue. This project meets the economic development eligibility requirements of
the UDAG program.
This contract will be with a governmental entity, state agency or public institution of higher education:
(state name).
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon the approval of the above recommendations and adoption of
the attached appropriation ordinance, funds will be available in the current operating budget, as
appropriated, of the Grants Operating Other Fund.
FUND IDENTIFIERS (FIDs):
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ID ID Year Chartfia" 2
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)
Additional Information Contact: Carmella Kendry (6658)
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