HomeMy WebLinkAboutOrdinance 23687-06-2019 Ordinance No.23687-06-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN
THE HUD 108 LOAN FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF
$28,539,931.80, FOR THE PURPOSE OF CORRECTING FINANCIAL ACCOUNTS FOR
CERTAIN HUD PROJECTS; 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 2018-2019 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the HUD
108 Loan Fund in the amount of$28,539,931.80, from available funds, to provide funds for the purpose of
correcting financial accounts for certain HUD projects.
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 23392-09-2018 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said prior ordinances and appropriations are hereby expressly repealed.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 SECRETARY;
i
Assistant City Attorney A1a0y J. K y
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ADOPTED AND EFFECTIVE: June 11, 2019 :• .A�
TEXAS
SECTION 108 TABLE
Total Final
Current Appropriation Budget after
Adlustment Ate tIStTri@
B01000 MINYARD SECTION 108
Revenue - 8,811,256.73 8,811,256.73
Expense - 8,811,256.73 8,811,256.73
B02000 MERCADO SECTION 108
Revenue 660,000.00 7,525,315.28 8,185,315.28
Expense 1,360,000.00 6,825,315.28 8,185,315.28
B03000 TRINITY RIVER MASTER PLAN
Revenue - 2,404,908.33 2,404,908.33
Expense - 2,404,908.33 2,404,908.33
B06000 EVANS/ROSEDALE SECTION 108
Revenue 8,980,563.15 1,552,035.31 10,532,598.46
Expense 34,147.00 10,498,451.46 10,532,598.46
B06800 UCC BETHLEHEM
Revenue - 3,311,431.82 3,311,431.82
Expense 3,311,431.82 - 3,311,431.82
X106CL CLOSED PROJECTS FOR FUND R106:
SHAMBLEE LIBRARY
Revenue - 4,934,984.33 4,934,984.33
Expense 4,934,984.33 - 4,934,984.33
Total Revenue Appropriation 9,640,563.15 28,539,931.80 38,180,494.95
Total Expenditure Appropriation 9,640,563.15 28,539,931.80 38,180,494.95
6/12/2019 M&C-Council Agenda
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/11/2019 -Ordinance No. 23687-06-2019
DATE: Tuesday, June 11, 2019 REFERENCE NO.: **G-19551
LOG NAME: 19SECTION 108 LOAN FUND APPRORIATION CLEANUP/CONVERSION
SUBJECT:
Adopt Appropriation Ordinance Correcting Certain Financial Accounts by Increasing the Estimated Receipts
and Appropriations in the HUD Section 108 Loan Fund in the Amount of$28,539,931.80 (COUNCIL
DISTRICTS 2 and 8)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Appropriation Ordinance increasing the
estimated receipts and appropriations in the HUD Section 108 Loan Fund (30107) up to $28,539,931.80
for appropriations in a total amount of $38,180,494.95 consisting of up to $8,811,256.73 in the Minyard
Section 108 loan project, up to $2,404,908.33 in the Trinity River Master Plan, up to $7,525,315.28 in the
Mercado Section 108 loan project, up to $10,498,451.46 in the Evans/Rosedale Section 108 loan project,
up to $3,311,431.82 in the United Community Centers Bethlehem Center Section 108 project, and up to
$4,934,984.33 in the Shamblee Library Section 108 project.
DISCUSSION:
The Neighborhood Services Department is requesting that an appropriation ordinance be adopted in
various projects in the HUD Section 108 Loan Fund (30107) to properly record revenue received along
with interest earned or anticipated interest earned and future debt service payments related to various
projects funded by the United States Department of Housing and Urban Development (HUD). These
appropriations were not originally created in the MARS financial system and the corrections listed below
are needed to allow for future debt service transactions and to clean up the previous financial transactions
that were converted into the PeopleSoft Financial System. The corrections will allow four projects to be
closed and properly record appropriations in the active projects. This M&C does not approve any further
project expenditures with the exception of the Evans/Rosedale debt payments.
Section 108 of the Housing and Community Development Act of 1974 (Section 108) provides funds for
loan guarantees as part of HUD's Community Development Block Grant (CDBG) program. The Section
108 Loan Guarantee Program provides communities with a source of financing for economic
development, housing rehabilitation, public facilities, and other physical development projects including
improvements to increase a project's resilience against natural disasters. The funds can be used by a
designated public entity to undertake eligible projects or can loaned to a third party developer to undertake
eligible projects.
The adjustments in the Section 108 Loan Fund appropriations are shown in the attached table. The
history of each project is described below.
MINYARD SECTION 108 LOAN: B01000
On April 8, 1997, the City Council authorized an application to HUD for a Section 108 Loan Guarantee in
the amount of $6.6 million for the Southeast Center Minyard Development Project (M&C G-11856). On
August 19, 1997 and October 7, 1997, the City Council authorized contracts with Fort Worth Local
Development Corporation (LDC) for the Minyard project utilizing the Section 108 Loan Guarantee and
other permanent financing options. This project is located in Fort Worth Reinvestment Zone Number 28
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(M&C C-16239 and M&C C-16344).
The City has fulfilled its Section 108 obligations for this project and the appropriation request of
$8,811,256.73 will allow the project to be closed out in PeopleSoft. Actual revenue and expenditures are in
balance as these have been received and recorded.
TRINITY RIVER MASTER PLAN: B03000
On June 3, 2003, the City Council adopted the Trinity River Vision Master Plan (M&C G-13989). The
revenue and expenditures are in balance but this project did not have appropriations recorded in the MARS
financial system. This appropriation request of $2,404,908.33 will allow the project to be closed out in
PeopleSoft.
MERCADO SECTION 108 LOAN: B02000
On April 8, 1997, the City Council authorized an application to HUD for a Section 108 Loan Guarantee in
the amount of $5 million for the North Main Mercado project (M&C G-11857). On March 11, 1998, HUD
announced that it had approved the City's application. The Section 108 Loan Guarantee allowed low
interest loan funds to be made available to eligible owners of commercial property located in and around
the 1400 block of North Main Street for the Mercado project. On August 29, 2000, the City Council
authorized the expansion of the Mercado project to allow current property owners, nonprofits, and those
acquiring property in and around the 1400 block of North Main Street, to apply for funds to finance
acquisition, new construction and rehabilitation of existing buildings which could be used buildings for
commercial and economic development activities or nonprofit operations.
In September 2001, the City and Fort Worth Mercado 1, L.P. began discussion regarding the development
of a "Mercado" style building in the 1500 block of North Main Street. An agreement to construct the building
was finalized in August 2003, and work began in October 2003. In February 2004, the developer informed
the City that it was not able to secure a loan to complete the project. On August 31, 2004, the City Council
accepted an assignment of the developer's construction contract with Muckleroy & Falls for the
project. The LDC provided funding of $1.3 million to complete the 58,000 square foot building (M&C C-
20251).
On January 10, 2006, the City Council authorized the sale of the Mercado to 11211 Katy Freeway, L.P. for
$2.5 million (M& C L-14158). The sales proceeds were deposited into a Wells Fargo Bank account to use
for future debt service payments. The last debt service payment of $265,000 to HUD for the project was
made on July 31, 2017. The City has fulfilled its HUD Section 108 obligation and the remaining
$169,575.71 was returned to the City on March 22, 2018 as CDBG program income in accordance with
HUD regulations. This property is located in COUNCIL DISTRICT 2.
This appropriation request of$7,525,315.28 will allow the project to be closed out in PeopleSoft.
EVANS/ROSEDALE SECTION 108 LOAN: B06000
On July 21, 1998, the City Council, authorized an application to HUD for a Section 108 Loan Guarantee in
the amount of $7.5 million for the Evans Avenue/Rosedale Street Business and Cultural District project
(M&C C-16898). In November 2001, HUD announced that it had approved the City's application in
conjunction with a $1.5 million Economic Development Initiative (EDI) grant for use within the project
boundary of Evans Avenue, Rosedale Street, IH-35W and Leuda Street in the Near Southeast Community.
The Section 108 Loan Guarantee allowed low interest loan funds to be made available to a major
developer as an incentive for developing mixed-used anchor activity. Additionally, it allowed for Section
108 monies to be made available to new or existing businesses along Evans Avenue and Rosedale Street
to rehabilitate properties. The EDI funds could be used for infrastructure improvements, Section 108 loan
payments, property acquisition, or other uses or incentives to encourage redevelopment .
On November 18, 2003, the City Council authorized an expansion of the project to allow for the
construction/rehabilitation of a public facility or facilities to house a public use library/research center
and/or a public health center (M&C C-19859). In order to develop a catalyst project to spur development
within the project footprint, the City Council authorized an amendment to the Section 108 Loan Guarantee
application to redirect $6 million to construct the Shamblee Library, of which $4,934,984.33 was actually
spent (City Secretary Contract No. 32336). The project is located in Council District 8, Mapsco 77K.
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On February 17, 2005, the City Council adopted an appropriation ordinance for $7.5 million but did not fully
appropriate debt service payments, interest payments and income (M& C G-14681). This appropriation
request of $10,498,451.46 will allow appropriation conversion/cleanup and allow for future debt service
transactions to be processed. The last semi-annual payment will be due in August 2020.
The remaining available balance of$3,311.431.82 was reallocated to fund the United Community Centers
Bethlehem Center as explained below.
UCC BETHLEHEM CENTER: B06800
On December 13, 2011, the City Council authorized the change in use and expenditure of$4,965,947.92,
which consisted of $1,654,516.10 in HUD EDI grant funds and $3,311,431.82 of Section 108 Loan
Guarantee funds for the construction of a new community facility at the corner of Evans Avenue and East
Humbolt Street in the Evans-Rosedale Business and Cultural District. The Council also authorized a lease
of the facility to United Community Centers, Inc. (UCC) (M&C C-25368). UCC, a nonprofit agency founded
in 1909, provides social services including child care primarily to low and moderate income households.
On October 25, 2016, the City Council authorized the change in use and expenditure of $600,000.00 in
EDI grant funds and Section 108 Loan funds to UCC, in the form of a grant for eligible costs associated
with the finish-out of the community facility commonly known as the Bethlehem Community Center
located at 951 Evans Avenue (M&C C-27973). The project is located in Council District 8, Mapsco 77K.
The City has fulfilled its HUD Section 108 obligation for this project and this appropriation request of
$3,311,431.82 will allow the project to be closed out in PeopleSoft.
SHAMBLEE LIBRARY: X106CL
Prior to the conversion to PeopleSoft during FY 2015, the appropriations and actual expenditures for the
construction of the Shamblee Library were transferred from the Evans/Rosedale Section 108 Loan:
B06000 into a Closed Project for R106 Fund. The City has fulfilled its HUD Section 108 obligation for this
project and revenue appropriation request of $4,934,984.33 will allow the project to be closed out in
PeopleSoft.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation, adoption of the
attached appropriation ordinance, funds are available in the current operating budget of the HUD Section
108 Loan Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by. Fernando Costa (6122)
Originating Department Head: Sonia Singleton (5774)
Additional Information Contact: Rhonda Hinz (2573)
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