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HomeMy WebLinkAboutIR 8837INFORMAL REPORT TO CITY COUNCIL MEMBERS ,+/A To the Mayor and Members of the City Council No. 8837 April 24, 2007 Pagel of 2 SUBJECT: Use of Community Development Block Grant Funds to Assist in the Construction of a New Polytechnic Community Center The purpose of this Informal Report is to provide background information on the proposed use of $425,000 in Community Development Block Grant (CDBG) funds to assist United Community Centers, Inc., (UCC) to reconstruct a community facility. History In 1980 the City of Fort Worth purchased a 17,207 sq. ft. building located at 3101 Avenue J and leased the property to UCC for $1.00 per year. Under the original lease agreement UCC was to manage and operate the Polytechnic Community Center by providing programming and space for other community agencies. This agreement was authorized in lieu of the city building and operating a community center in the Polytechnic area. Since 1981 UCC has continued to lease this city - owned facility and has managed and operated it as a community multi - purpose center. UCC has invested an estimated $196,000 for capital improvements to the current facility. The current lease agreement, which was renewed for an additional five -year term in City Secretary Contract No. 32237, dated August 9, 2005 (M&C C- 20845), holds UCC responsible for all routine maintenance to the premise on an ongoing basis. It also allows UCC to request that the City replace or fund items such as repairs to the roof, structural systems and foundation, exterior walls and windows, the heating, ventilation, air conditioning systems and other major systems. The Board of Directors for UCC approached the City in December 2004 with an initial request of $250,000. This request was for the needed repairs and renovations to the building in order to meet City building codes and the Americans with Disability Act requirements. In May 2005, CDBG funds were approved to assist with the repairs and renovations. Upon receipt of this approval, UCC conducted a bidding process with the assistance of RPGA Design Group in August 2006. The lowest bid received exceeded the architects' original cost for renovation to the existing building. Additionally, it was determined to be more cost effective to construct a new building as opposed to renovation of the existing building. The Board subsequently, approached the city for an additional $175,000 in CDBG funds and requested an amendment for the use of the funds from repairs and renovation to the reconstruction of a new facility in the same location The additional $175,000 increases the total request to $425,000 of CDBG funds. The $425,000 will be used as matching funds, as UCC will conduct fundraising efforts for the remaining portion of the total $1.6 Million estimate needed to complete this project. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS The Agreement To the Mayor and Members of the City Council No. 8837 April 24, 2007 Page 2 of 2 SUBJECT: Use of Community Development Block Grant Funds to Assist in the Construction of a New Polytechnic Community Center In order to access any CDBG funds for this project, UCC must secure letters of commitment from other entities for the total amount required for construction, less the City's contribution. These commitments must be secured prior to the disbursement of any City funds. Upon completion and occupancy of the project, UCC will be required to adhere to the following conditions for a period of ten years: • Maintain the reconstructed site solely as a community multipurpose center. • Maintain a documented CDBG eligible activity, which will benefit low income persons regardless of the availability of CDBG funding. • Submit quarterly reports to the City that provide quantitative and qualitative information in accordance with the applicable HUD regulations on the programs and services provided at the site. • Continue to be responsible for routine maintenance as outlined in the Lease Agreement. Should UCC not adhere to these conditions, it will be required to repay the CDBG funds invested for the project. UCC has expressed the desire to own the property. Staff will offer recommendations on this matter once UCC has commitments in place for the total project costs. There will be a Mayor and Council Communication on the May 1, 2007, City Council agenda for your consideration. If you have any questions concerning this action item, please contact Jerome Walker, Housing Director, at 817 - 392 -7537. 1, .or Charles R. Boswell City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS