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HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2022-07RESOLUTION NO. FWLDC-2022-07 FORT WORTH LOCAL DEVELOPMENT CORPORATION RESOLUTION OF THE BOARD OF TRUSTEES Authorizing the Selection oflnnoi,nn Neighborhoods, LLC and Legacy Construction Solutions, Inc. as De►,elopers of 5401 and 5425 E. Berry Street, Fort Worth, Texas, Contingent on Certain Requirements WHEREAS, Fort Worth Housing Finance Corporation, a Texas housing finance corporation ("FWHFC"), purchased 5401 E. Berry, Fort Worth, Texas in 2004 for $15,180.60 from the City of Fort Worth, on its own behalf and as trustee for various other taxing entities for a potential development for affordable housing, which development did not occur; WHEREAS, the City of Fort Worth, on its own behalf and as trustee for other taxing entities (collectively, "Taxing Entities"), received 5425 E. Berry, Fort Worth, Texas, when it was struck off to the City of Fort Worth following an unsuccessful Constable's sale; WHEREAS, consistent with the economic development objectives of the Fort Worth Local Development Corporation ("Corporation"), the Corporation purchased 5401 E. Berry, Fort Worth, Texas from the FWHFC and 5425 E. Berry, Fort Worth Texas from the Taxing Entities in 2013 (collectively, the "Property"); WHEREAS, the Property is approximately 3.7 acres of vacant land (and is the site of a former Dairy Queen), and is located in a Neighborhood Empowerment Zone, an Enterprise Zone, the Lake Arl ington/B erry/Stal cup Urban Village, and an area eligible for (i) Community Development Block Grant (CDBG) funds from the United States Department of Housing and Urban Development (HUD) and (ii) New Market Tax Credits; WHEREAS, on March 6, 2018, the Board of Trustees of the Corporation ("Board") approved a development agreement with Housing Channel, a certified 501(c)(3) housing nonprofit organization and a Community Housing Development Organization (CHDO), as defined by HUD, to develop a mixed -use project on the Property; WHEREAS, Housing Channel performed certain due diligence on the Property but eventually declined to proceed with the project and on February 18, 2020, the Board authorized a reimbursement to Housing Channel for expenditures made by Housing Channel to obtain a Letter of Map Revision for the Property to remove portions of the Property from the Federal Emergency Management Agency flood plain maps; WHEREAS, on January 4, 2021, the Corporation issued a Request for Expressions of Interest for the development of the Property ("RFEI") and following public input in May, 2021, selected two finalists, Innovan Neighborhoods, LLC ("Innovan") and Legacy Construction Solutions, Inc. ("Legacy"); Resolution — FWLDC-2022-07 Page 2 of 3 WHEREAS, on September 21, 2021, following further public input and meetings of stakeholder groups, a selection committee and a decision committee who reviewed and scored the proposals, staff recommended to the Board that the development be performed by a partnership between Innovan and Legacy, and the Board agreed, provided that Innovan and Legacy could come to agreement on how to proceed with the development; WHEREAS, Innovan and Legacy have expressed to the Corporation their willingness to proceed together as developers of a mixed -use development on the Property and the Corporation desires to confirm its intention to engage Innovan and Legacy as developers of a project on the Property (Innovan and Legacy to be referred to collectively herein as "Developer"), subject to certain conditions; WHEREAS, upon the fulfillment of the conditions set forth in this Resolution, the Board will consider entering into an agreement with the entity formed by Developer for the development of a project on the Property. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE FORT WORTH LOCAL DEVELOPMENT CORPORATION: 1. That Developer is hereby selected as the developer for a project on the Property, subject to the following: a. By 90 days after the date of the adoption of this Resolution, Developer will provide to the Corporation a final project scope consistent with the following parameters: a catalytic mixed -use environment characterized by small business attraction and urban housing concepts, maximizing the available land and creating the critical mass necessary to inspire ongoing investment; b. By 60 days after the date of the submission of a final project scope that meets all required parameters, Developer shall provide the Corporation a detailed development budget for the project and shall identify in writing to the Corporation all proposed financing sources and amounts from each source for the full financing of the project, including any necessary gap financing; and c. Before the Corporation proceeds with any agreement with Developer for the project, Developer together will form a single purpose entity for the purpose of entering an agreement with the Corporation for the acquisition of the Property and the development of the project, provided that such agreements will be subject to Board approval. Resolution — FWLDC-2022-07 Page 3 of 3 2. That this Resolution takes effect from the date of its adoption. Adopted this 26th day of April, 2022. :By: Gyn Bivens President Attest: Jannette Goodall Corporate Secretary