HomeMy WebLinkAbout(0006) IR 21-10679 - Proposed Contract w.CDFI Friendly America to Develop Minority Business EnterpriseINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10679
PRTFA
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To the Mayor and Members of the City Council
September 28, 2021
Page 1 of 2
SUBJECT: PROPOSED CONTRACT WITH CDFI FRIENDLY AMERICA, LLC TO
DEVELOP A BUSINESS EQUITY FIRM CAPACITY BUILDING PROGRAM
In March 2021, the President signed the American Rescue Plan Act (ARPA), providing aid and
relief to various sectors of the United States economy. The City of Fort Worth's allocation from
these funds totals $173,745,090.00 of which a first tranche (50%), in the amount of
$86,872,545.00 was received on May 19, 2021. Subsequently, Mayor and Council
Communication (M&C) 21-0445 was adopted on June 22, 2021, establishing a framework for the
use of ARPA funding to include funding allocated to enter into a contract with CDFI Friendly
America, LLC to bring financing from one or more community development financial institutions
("CDFIs") to the City.
The proposed contract would engage the consultant to provide consulting services in assessing
the potential roles of CDFI financing in the community, organizing potential CDFI Friendly
strategies, developing an actionable CDFI Friendly business plan, and providing the City with
consultative capacity -building support for the implementation of that business plan in
collaboration with the Economic Development Department and the Department of Diversity &
Inclusion.
A general outline of the scope of work to be provided includes:
• Inform and create a CDFI Friendly strategy to significantly increase CDFI financing in Fort
Worth with a priority on financing for communities of color, people of color, and others that
have long been denied full access to essential financing on reasonable and appropriate
terms;
• Help the client build the Fort Worth community's capacity by establishing an independent,
permanent CDFI Friendly entity ("CDFI Friendly Fort Worth") with appropriate local Board
and staff to manage and execute the community's CDFI Friendly strategy;
• Research in quantitative and qualitative ways past community development efforts in Fort
Worth, local market conditions, significant market trends and/or opportunities, and other
elements that might affect the community's decisions;
• Work with the coalition to identify credit gaps that CDFI financing might fill and prioritize
them to inform the CDFI Friendly business strategy; and
• Prepare —in collaboration with the working coalition —a business plan that clarifies and
illuminates key findings, assumptions, resource needs, market priorities, and projected
outcomes of a CDFI Friendly strategy for Fort Worth.
The initial term of the engagement would start on October 1, 2021, and continue until March 31,
2023. At the end of the Initial Term, any additional work shall be performed on a time -and -
expense basis at the applicable rate(s) outlined in the contract. The proposed contract would
utilize $2.0 million of ARPA funding to launch and help capitalize the CDFI Friendly Fort Worth
Enhancement Fund so that the consultant is able to leverage that pledge with philanthropic and
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10679
PRTFA
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To the Mayor and Members of the City Council
September 28, 2021
Page 2 of 2
SUBJECT: PROPOSED CONTRACT WITH CDFI FRIENDLY AMERICA, LLC TO
DEVELOP A BUSINESS EQUITY FIRM CAPACITY BUILDING PROGRAM
financial institutions. The City would also utilize an additional amount of ARPA funds to provide a
pool of grant funding not to exceed $2.5 million that the consultant might use to incent CDFI
engagement in Fort Worth during FY 2022 while CDFI Friendly Fort Worth is ramping up its
operations and outreach.
A M&C will be placed on the September 28, 2021 agenda for City Council consideration with the
recommendation to enter into a contract with CDFI Friendly America, LLC to begin
implementation of the strategy.
For further questions, please contact Robert Sturns, Director of the Economic Development
Department, at 817-392-2663.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS