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Home My WebLink AboutOrdinance 20761-05-2013 Ordinance No. 20761-05-2013 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $25,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF A FORGIVABLE LOAN TO UNPJ HOLDING COMPANY, LTD., FOR BUILDING IMPROVEMENTS AT ITS MANUFACTURING FACILITY; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMTJLATIVE 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 2012-2013 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Grants Fund in the amount of $25,000.00, from available funds, for the purpose of a forgivable loan to UNPJ Holding Company, Ltd., for building improvements at its manufacturing facility. 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. 20411-09-2012 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Vicki Ganske, Assistant City Attorney ADOPTED AND EFFECTIVE:May 21,2013 w� �mr fir, y�,: �// �"? +uu,.:, � 'nM;�"' nv,1w�, l!�✓w!ur � �� r,,�l � � '„� �� I �w� �� f"p 'M�',�„Xµ�l%r ��q�,�m ,�� fl /N a ow y 1�or �M i r 0I YAP”, �%/ ' / icu r ji It army I�//,✓/a"ip� tm�oniry y ,�a w � � m�,r~^/� �l1 /'7" �� ,,. i � �°� �,� F'r°�� r �� r✓di�nio ��”" QUU ""m"1M,�91Wn .' '"� ,� oimm� r " vuUlluumm��.�„,�.;�")J//6ii�i/��i"rr h � t ,.m.,� � � 1 n�� vw fl r �i/✓ M YMII'� 1RM'IYIO ,. ', _ !� ��I,//� �� i �., N. �„iom.rr, �M�'✓, f %rte( I'' p )l4 i I r MCI�) �.� I m� rri� y� � � �� I • ! �l4 ,��rm//l/rrr 1 /� M� f l%//! j /ir uu ;,,.r City of Fort Worth, Texas Mayor and Council Communication �'l N'%NYV6'(l'eM111;'JNINJNN!?IfiW,YI@ h004P,@ IIPUfPWIW/WmliMmWVIVnM.i(IMWM1`IIdINPIIIY?JP/NRd'MdIIIPIUMAJfl NIRrtfiYlVumM,GtllllG60IXG"f.Ndfl Mrs1n'attme wm!W41NNIGWAnmtlmV(iwm[u mmnino!.?a1nvMUM1VIYtYWPMWA ntufa a,rvd !f„rtN1Vi!fNiN f N W4'M'.1M1M(OmYIYNFWilYt@ dttiEldlfHtOWM+d'41W!m,P11YY90Yd!WINNNN'YWIO@911m0if:wwPWWNuaoltl 4!MW.MimO no�WWVp COUNCIL.ACTIOW Approved on 5/21/2013 ,Ordinance Nca 20761'45 401x, aipA 1 0010110 WWWWNUV04.IN'NMYN'AMWV.MOFMOYOOM OUNOMANNiOF1'tltlNPo 4M0nNJIW1101U'IMdfffH,1 MAN O�eIW0.'Un"AAW&MtlIfiNMxiN'n'.0'IIINI@!WG'M%AflP+wNMeVIRPd'5AMtl/u3iR NV,MWIttLfIIII�PiR&M1i8Nl H�Uif 11tYANiWWID WIVtlANWN01pISIWWItlVIWtlfdAP;Y➢I1gM1WMfifiMNWWV M6l%1NpIVY31\bfL9WQIW&VNVIL'ID01'0W'YlI0tl01WM1WW1WiWIdWY�01ttMMP lNIXXY91pkMIOMfWWN4WtdMfYN iM1l14U"NbWAO'MYA11 fIIm MW^,w'M"M',�'IM,HIiMtliIP IiIMA'kWWW DATE: Tuesday, May 21, 2013 REFERENCE NO.: C-26271 LOG NAME: 17081MUDAG SUBJECT: Authorize Expenditure in the Amount of$25,000.00 of Urban Development Action Grant Program Income in the Form of a Forgivable Loan to UNPJ Holding Company, Ltd., for Building Improvements to its Manufacturing Facility Located at 715 East Ninth Street, Authorize Execution of a Loan Agreement and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council: 1. Authorize expenditure in the amount of$25,000.00 of Urban Development Action Grant program income in the form of a forgivable loan to UNPJ Holding Company, Ltd., for building improvements to its manufacturing facility located at 715 East Ninth Street; 2. Authorize the City Manager or his designee to execute a loan Agreement and any related documents with UNPJ Holding Company, Ltd., for the loan for a term beginning on the date of execution and ending two years after completion of the improvements; 3. Authorize the City Manager or his designee to amend the loan Agreement if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal funds; and 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Fund in the amount of$25,000.00 from available funds. DISCUSSION: UNPJ Holding Company, Ltd., is proposing expanding and modernizing its 180,000 square-foot warehouse/manufacturing center to serve as a processing center to cut fresh cut fruit. UNPJ Holding Company, Ltd., approached the City requesting financial assistance to help cover the cost of building improvements to expand and modify their existing manufacturing facility located at 715 East Ninth street in downtown Fort Worth. The total cost of the improvements will be approximately $250,000.00 and the company will also invest $50,000.00 in new taxable business personal property improvements (as determined by the Tarrant Appraisal District's official tax rolls) by December 31, 2013. On May 14, 2013, Staff presented a recommendation to Pre-Council to provide $25,000.00 in Urban Development Action Grant(UDAG) program income as a forgivable loan to UNPJ Holding Company, Ltd., for a portion of the cost of the building improvements. UDAG Program Income funds are rental revenues received from the lease of the City-owned parking garage under General Worth Square (City Secretary Contract No. 11085 as amended and assigned). The construction of the parking garage, originally known as the Radisson Parking Garage project, was funded with UDAG funds and rental revenues from the lease are deemed Grant Revenues under the UDAG Grant Agreement (City Secretary Contract No. Logname: 170BIMUDAG Pagel of 3 106010\ The Grant Revenues from what is now known as the Hilton Parking Garage project rnustbm used for projects that meet the requirements ofthe Community Development Block Grant (COBG) program, including use in a CDBG-eligible area and also must include private investment. Annual revenue from the parking garage is approximately$1OO.00O.00 and the project uoonunthosaremeining balance of approximately $35U.0OU.00. Staff has reviewed the project and has determined that it meets federal requirements for o CDBG economic development project. Tharafora. Staff recommends providing a forgivable loan of$25,000.00 of U[}&G program income to UNPJ Holding Company. Ltd., on the following terms: The company will invest a minimum of$250`0OO.00in real property improvements, nf which the greater of $125.0OO.O0Or5O percent will be with Fort Worth contractors. The company will also spend the greater of $62'500.00 or 25 percent with contractors that are Fort Worth Certified K8/VVBE companies. The company will employ e minimum of75 full-time employees /FTEa\ by December 31. 2O13. [)f the total number of FTEs, 90 percent will be Fort Worth residents and 30 percent will be Fort Worth Central City residents. The company must submit annual employment reports for two years after the project has been completed hu show compliance with the employment goals. The term of the loan Agreement will commence upon execution and will expire two years after the completion of the improvements. The loan will be provided on a reimbursement basis upon verification of the improvements and investment at the site by the completion deadline. The company will be required to submit a completion report no later than thirty days following the completion deadline in order for the City to determine compliance with the loan Agreement. The loan will bm forgiven at the end of the term so long as the company has provided the required reports and met all the other terms of the loan Agreement. A lien will ba placed on the real property 10 secure the company's performance of the loan conditions and repayment of the loan funds if the loan terms are not met, This project vviUocconnp|iohthepub|icpurpoaeoffurthehnOtheUnited3bahasOapartmentofHouoingmnd Urban Development's national objective of promoting activities that benefit low and moderate income persons. The project ia located in COUNCIL DISTRICT 9. CERTIFICATION:FISCAL INFORMATION / The Financial Management Services Director certifies that upon approval of the above recommendations, and adoption of the attached appropriations ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Fund. FUND CENTERS:TO Fund/AccounVCenters FROM Fund/AccounMenters GR76 442216 005206948000 �5,000.00 GR76 539120 017206948110 $25,80.01 GR76 539120 017206948110 ��000.00 CERTIFICATIONS:Submitted for City Manager's Office by: Fernando Costa (0122) Originatinc-1 Department Head: Cynthia B. Garcia (8187) RobartS0urns (8003) Additional Information Contact: Ana Alvarado (2661) Logname: 170BIMUDAG Page 3 of 3