HomeMy WebLinkAboutIR 8710INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8710
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To the Mayor and Members of the City Council
August 23, 2005
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Amendment to the Economic and Community Development Agreement
and the Community Facilities Agreement for the South of Seventh
Project
On January 28, 2003, City Council approved M &C C -19453 and M &C C- 19454, authorizing the City
Manager to execute an Economic and Community Development Agreement (City Secretary Contract No.
31772) and an Enhanced Community Facility Agreement (City Secretary Contract No. 29230) for the
development of the South of Seventh project (the Project). Pursuant to the ECDA, the City agreed to
reimburse Developer a portion of the cost of construction of a road through the development and related
improvements equal to the lesser of ten percent (10%) of Developer's actual hard and soft costs incurred
for or directly related to the construction of Phase I of the Project, or $940,000 (the "Phase I
Reimbursement "). A portion of these improvements includes a concrete at -grade crossing and related
costs for the crossing of the Fort Worth and Western Railroad at Museum Way. Subsequently, on
November 2, 2004 the City and Developer amended the ECDA to allow the City to decrease from the
amount of the Phase I Reimbursement certain property acquisition expenses and attorneys' fees incurred
in the course of the eminent domain actions related to securing the railroad crossing.
In addition to the original ECDA, on January 28, 2003 the City Council approved M &C C -19455
approving execution of a Transportation -Land Use Joint Venture Grant Agreement with the State of
Texas Department of Transportation (TxDOT) qualifying the use of the Project and surrounding area for
the Transportation -Land Use Joint Venture Program (Grant). Through this program the City anticipates
receiving $3,221,639 through reimbursements of qualified public project expenditures in the Project and
surrounding areas. On December 16, 2003, the City Council approved and appropriated the full amount
of the Grant from TxDOT.
To date, the Developer has substantially completed the first phase of the Project, including construction
of townhomes, additional lots and the spine road (Museum Way). Staff is recommending that ECDA and
ECFA be amended to provide for cost allocation shifts so that quiet zone improvements at railroad
crossings at Museum Way and West Seventh Street may be included as a reimbursable cost under the
ECFA. This amendment will allow the quiet zone improvements to be reimbursed through the previously
approved Grant. The total cost of the quiet zone construction included city requested improvements
above and beyond construction of a standard quiet zone and because the quiet zone on West Seventh
Street provides off - development improvements that benefit the whole area through improved safe
mobility, use of the Grant funds are appropriate as a funding source. Consequently, $304,876 of the
previously appropriated Grant funds will be used as partial funding of the total $510,000 cost of the quiet
zone construction. The remainder of the cost will be deducted from the Developer's Phase I
Reimbursement funds for this project, with the full amount reimbursed from TxDOT to the City through
the grant.
THE CITY MANAGER FORT WORTH, TEXAS
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August 23, 2005
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Page 2 of 2
Amendment to the Economic and Community Development Agreement
and the Community Faces Agreement for the South of Seventh
Project
Additionally, staff is recommending that the ECDA be amended to allow the City to pay $145,410,
which would otherwise be reimbursed to the Developer, to the State as a portion of the local match to
enable full Grant funding. These funds were previously appropriated by the City Council as part of the
Phase I Reimbursement. The developer's initial contribution to the local match was $660,000, which
will now be increased to a total local match of $805,000.
An M&C C-20918 authorizing execution of the amendments to both the ECDA and ECFA as outlined
above are on the August 23, 2005 City Council agenda.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS