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HomeMy WebLinkAboutResolution 4033-10-2011A Resolution NO. 4033 -10 -2011 RESOLUTION STATING THE CONDITIONS OF THE CONVEYANCE OF 2604 STRONG AVENUE AND THE PUBLIC PURPOSE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE SECTION 272.001(i) WHEREAS, in September 1996, the Mitchell Boulevard Development Corporation ( "MBDC ") was awarded $1.2 million under the Model Blocks Neighborhood Revitalization Program of the City of Fort Worth ( "City "), which funding included Community Block Development Grant ( "CDBG ") funding from the United States Department of Housing and Urban Development ( "HUD "); and WHEREAS, the City entered into four contracts with Mitchell Boulevard Development Corporation ( "MBDC ") to, among other things, acquire and develop a neighborhood retail center located at 2909 Mitchell Blvd, Fort Worth, Texas (the "Property ") for the purpose of providing a benefit to low and moderate income families in the form of job creation or providing other services; and WHEREAS, Texas Community Development Corporation ( "Texas CDC "), the successor of MBDC, dissolved after using CDBG funds to acquire the Property, but before the fulfillment of its contractual obligations; and WHEREAS, prior to dissolution the Texas CDC conveyed the Property, including the 6,000 square foot commercial building thereon, to the City, as approved by the City Council on March 6, 2007 (M &C G- 15622); and WHEREAS, pursuant to Texas Local Government Code Section 272.001(i) and M &C L- 15099, the City sold the Property directly to the North Texas Area Community Health Centers, Inc. ( NTACHC), formerly known as the Fort Worth Northside Community Health Center, for the purpose of the development of a community health center to provide a benefit to the low and moderate income persons in the area (the "Project "); and WHEREAS, after the sale of the Property, NTACHC discovered the need to purchase property located at 2604 Strong Avenue ( "Adjacent Property "), which is adjacent to the Property, for use as a driveway to the community health center, and WHEREAS, pursuant to Texas Local Government Code Section 272.001(i), the City desires to sell the Adjacent Property directly to NTACHC to include the Adjacent Property in the Project. &E .WORT T Resolution No. 4033 -10 -2011 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. That the conditions and circumstances of the conveyance are as follows: a. The NTACHC plans to develop and operate a community health center to provide a benefit to the low and moderate income persons in the area; b. The Adjacent Property was appraised and the Adjacent Property will not add any additional contributory value to the Property, so nominal consideration in the amount of $100 will be paid to the City by NTACHC and as further consideration, NTACHC shall sign a deed of trust to secure performance of the following obligations: (1) By no later than December 31, 2013, open and operate a community health center to serve persons, 51% of whom are low- or moderate - income, as determined by then - current guidelines published by the United States Department of Housing and Urban Development ( "Eligible Persons "), with the community health center being fully staffed and open for operation no less than 40 hours per week; (2) Allow City to access NTACHC's records to verify the income - eligibility of persons served by NTACHC; and (3) Serve at least 50 Eligible Persons per quarter and submit quarterly reports for two years from the date in which the community health center begins operations verifying compliance with the above requirements. c. The City shall retain any mineral interest it may own in the Property; and d. NTACHC is responsible for all closing costs, including taxes owed, if any. 2. That the conveyance of the Property to NTACHC shall achieve the public purpose of providing community health care to low and moderate income citizens of the City of Fort Worth. Adopted this 18th day of October 2011. ATTEST: B Y Marty Hendrix, City Secretary ORT WORT APPROVED CITY COUNCIL OCT 18 2011 `tea,. I,\ City Secretary of the City of Fort Worth, Texas City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/18/2011 - Resolution No. 4033 DATE: Tuesday, October 18, 2011 REFERENCE NO.: * *L -15269 LOG NAME: 17COMMUNITYHEALTHCENTER SUBJECT: Approve Sale of 2604 Strong Avenue to the North Texas Area Community Health Centers, Inc., for the Amount of $100.00, Execute Deed of Trust to Secure Performance and Adopt Resolution Stating the Conditions of the Conveyance and the Public Purpose in Accordance with Texas Local Government Code Section 272.001(i) (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council: 1. Approve sale of City owned property comprised of Lots K2 and M2, Block 8 of the Wesleyan Hills Addition at 2604 Strong Avenue to the North Texas Area Community Health Centers, Inc. (NTACHC) in accordance with Local Government Code Section 272.001(i) in consideration of $100.00; 2. Authorize execution of deed of trust to secure performance for redevelopment of the property; and 3. Adopt the attached resolution stating the conditions of the conveyance, and the public purpose that will be achieved by the conveyance, which is the provision of health care service to low -to- moderate income persons. DISCUSSION: On November 16, 2010, City Council approved M &C L -15099 authorizing the direct sale of City owned commercial property located at 2909 Mitchell Boulevard to the North Texas Area Community Health Centers, Inc. (NTACHC), formerly known as the Fort Worth Northside Community Health Center, for the development of a Community Health Center. The NTACHC became aware that the property located at 2604 Strong Avenue was not included as part of the original sale and submitted a request to the City to purchase 2604 Strong Avenue, which is adjacent to 2909 Mitchell Boulevard, for use as a driveway. Staff had the additional property appraised and the property will not add any additional contributory value to the property located at 2909 Mitchell Boulevard, so nominal consideration in the amount of $100.00 will be paid to the City by NTACHC and as further consideration, NTACHC shall sign a deed of trust to secure performance of the following obligations: 1. By no later than December 31, 2013, open and operate a community health center to serve persons, 51 percent of whom are low or moderate income, as determined by then current guidelines published by the United States Department of Housing and Urban Development (Eligible Persons) with the community health center being fully staffed and open for operation no less than 40 hours per week; 2. Allow City to access NTACHC's records to verify the income eligibility of persons served by NTACHC; and 3. Serve at least 50 Eligible Persons per quarter and submit quarterly reports for two years from the date Logname: 17COMMUNITYHEALTHCENTER Page I of 2 in which the community health center begins operations verifying compliance with the above requirements. The City will retain the mineral interest it may own on this property. In addition, the NTACHC is responsible for all closing costs, including taxes owed, if any. This project is located in COUNCIL DISTRICT 8. F%SCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that the Housing and Economic Development Department is responsible for the collection and deposit of funds due to the City. FUND CENTERS: TO Fund /Account/Centers GC10 444583 030023002000 CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: 100.00 FROM F u nd/Accou nt/C enters Fernando Costa (6122) Jay Chapa (5804) Fabiola Y Suarez (6811) Cynthia Garcia (8187) Logname: 17COMMUNITYHEALTHCENTER Page 2 of 2