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HomeMy WebLinkAboutOrdinance 20263-07-2012Ordinance No. 20263 -07 -2012 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $100,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF URBAN DEVELOPMENT ACTION GRANT PROGRAM INCOME AS A FORGIVABLE LOAN TO CATHOLIC CHARITIES FORT WORTH FOR THE CONSTRUCTION OF A DENTAL CLINIC TO SERVE LOW AND MODERATE INCOME RESIDENTS; 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 2011 -2012 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants Fund in the amount of $100,000.00, from available funds, for the purpose of Urban Development Action Grant Program Income as a forgivable loan to Catholic Charities for the construction of a dental clinic to serve low and moderate income residents. 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.1 991 1 -09 -201 1 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Assistant City Attorney ADOPTED AND EFFECTIVE: July 10, 2012 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 711.0/2012 ©irdanance. No. 20263.07 -2012 DATE: Tuesday, July 10, 2012 REFERENCE NO.: * *C -25677 LOG NAME: 17UDAG CATHOLICCHARITIES 100K SUBJECT: Authorize Expenditure in the Amount of $100,000.00 of Urban Development Action Grant Program Income as a Forgivable Loan to Catholic Charities Fort Worth for the Construction of a Dental Clinic to Serve Low and Moderate Income Residents and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council: 1. Authorize expenditure in the amount of $100,000.00 of Urban Development Action Grant Program Income as a forgivable Loan to Catholic Charities Fort Worth for the construction of a dental clinic to serve low and moderate income residents in furtherance of and in accordance with the U.S. Department of Housing and Urban Development's national objectives of promoting activities that benefit low and moderate income persons, as outlined in Title 24 of the Code of Federal Regulations. 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund by the amount of $100,000.00 from available funds. DISCUSSION: Catholic Charities Fort Worth (Catholic Charities) approached the City requesting funds for the construction of a dental clinic at its office that would serve low and moderate income residents. The clinic will be located at 249 West Thornhill Drive in South Fort Worth and would serve individuals and households with incomes at or below 200 percent of the federal poverty level. The total cost of the clinic is approximately $756,000.00 and the operating costs will be funded by St. Joseph Health Care Trust Fund, dental services fees and Medicaid. On June 5, 2012, Staff presented a recommendation to the Housing and Economic Development Committee to provide $100,000.00 in Urban Development Action Grant (UDAG) Program Income as a forgivable loan to Catholic Charities for the construction of the dental clinic. UDAG Program Income funds are generated from lease payments of the Radisson Parking Garage which was funded under the federal grant. Federal rules require that the program income generated under the grant be used on projects that meet the following: • A Community Development Block Grant (CDBG) Economic Development project; • Must be used in a CDBG eligible area; and • The project must also include private investment. Staff has reviewed the dental clinic project and has determined that it meets federal requirements. Therefore, Staff recommends providing a forgivable loan to Catholic Charities with the following terms: Logname: 17UDAG CATHOLICCHARITIES_100K Page 1 of 2 . Term will expire two years after construction is complete; . Funds can only be used for construction costs; . Funds provided on a reimbursement basis; . Catholic Charities must submit quarterly reports for two years after the project is completed showing that the clinic is serving primarily low and moderate income residents; and . Loan will be forgiven at the end of the term so long as Catholic Charities has provided the reports showing that it served primarily low -and moderate - income individuals. A lien will be placed on the property to enforce this requirement. This project will accomplish the public purpose of furthering the U.S. Department of Housing and Urban Development's national objectives of promoting activities that benefit low and moderate income persons, as outlined in Title 24 of the Code of Federal Regulations. The dental clinic will be located in COUNCIL DISTRICT 9. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that upon 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 Fund. FUND CENTERS: TO Fund /Account/Centers FROM Fund /Account/Centers GR76 539120 005206948080 $100,000.00 GR76 539120 005206948080 GR76 442216 005206948000 $100,000.00 CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Fernando Costa (6122) Jay Chapa (5804) Cynthia Garcia (8187) Charletra Hurt (7536) $100,000.00 Logname: 17UDAG CATHOLICCHARITIES_100K Page 2 of 2