HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2013-03RESOLUTION NO. FWLDC-2013-03
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing the Development of the Lancaster Place Apartments Project
by the Lancaster Corridor Redevelopment, LLC
WHEREAS, the Fort Worth Local Development Corporation ("Corporation") desires to
be an active party to the development of a proposed mixed use development located along
Lancaster Avenue between Throckmorton Street and Jennings Street, and between Jennings
Street and Monroe Street in order to promote revitalization of the area and to benefit the citizens
of Fort Worth by creating affordable housing, retail, jobs and commercial opportunities in an
area in need of revitalization;
WHEREAS, the project plan originally consisted of multiple buildings with
approximately one hundred thirty residential units with a mix of market and affordable rents,
73,000 square feet of office space, 33,000 square feet of retail space, and a parking garage
("Original Project Plan");
WHEREAS, on June 7, 2011, the Corporation approved various actions and agreements
related to the development, including the lease and option to purchase of vacant City -owned
property on Lancaster Avenue between Throckmorton Street and Monroe Street; a development
management agreement with L2L-Lancaster, LLC for an amount up to $535,000 for preliminary
costs associated with the development; the hiring of Kelly Hart & Hallman as outside counsel;
and the execution of a conditional commitment, contract and related documents with the City of
Fort Worth for $2,000,000 in HOME Funds;
WHEREAS, on June 14, 2011 (M&C C-24976), the City of Fort Worth ("City")
approved the expenditure of $2,000,000.00 in HOME Investment Partnership Program Grant
Funds for the project (as amended by M&C C-25460 on March 6, 2012 to increase the number of
housing units in the project), and on June 24, 2011, the Corporation entered into a conditional
commitment from the City of Fort Worth for the HOME funds (a HOME contract has not yet
been executed);
WHEREAS, on August 2, 2011, the Corporation approved the certificate of formation of
Lancaster Corridor Redevelopment, LLC for purposes of owning and operating a portion of the
development and the Corporation created the Lancaster Corridor Redevelopment, LLC on
November 4, 2011, for the purpose of ownership and development of the project;
WHEREAS, on October 4, 2011, the Corporation approved the purchase of property
located within the boundaries of Lancaster Street, Monroe Street, 13"' Street and Throckmorton
Street for the project, including (i) the outright purchase of vacant City -owned property on
Lancaster Avenue rather than a lease with option to purchase as contemplated in the June 7, 2011
approval, and (ii) the payment of $25,000 in earnest money for any parcel owned by any owner
RESOLUTION NO. FWLDC-2013-03
PAGE 2
in the boundaries of the project, and on January 11, 2012, the Corporation entered into an Option
and Contract of Sale and Purchase with the City (City Secretary Contract No. 42813) for the
purchase of City -owned property along Lancaster Avenue, and said contract has been amended
to expire in December of 2013;
WHEREAS, on November 1, 2011, the Corporation approved (i) a Tax Increment
Financing Development Agreement with Board of Directors of Tax Increment Reinvestment
Zone Number Eight, City of Fort Worth, Texas (Lancaster TIF) for construction of the Lancaster
Avenue Parking Garage, and (ii) assignment of the Tax Increment Financing Development
Agreement to a local government corporation;
WHEREAS, on June 5, 2012, the Corporation approved the assignment of all
agreements related to the Lancaster project to the Lancaster Corridor Redevelopment, LLC;
WHEREAS, in June 2012, the Original Project Plan was cancelled due to the withdrawal
from the plan of a key office development tenant, and staff began working to reduce the scope of
the first phase of the development;
WHEREAS, the current scope of the first phase of the development is the construction
of (i) a 150,000 square foot mixed -use development with approximately 120 residential units
(including approximately 20% workforce housing), and approximately 25,000 square foot retail
space, and (ii) a parking garage with approximately 450 spaces;
WHEREAS, the Lancaster Corridor Redevelopment, LLC acquired the property upon
which the parking garage will be sited in January of 2013; and
WHEREAS, on May 23, 2013, the Lancaster Place Apartments project received an
invitation from the United States Department of Housing and Urban Affairs to submit a pre -
application for a HUD 221(d)(4) loan for the project by August 23, 2013, which pre -application
requires certain submittals including architectural design drawings, market studies, surveys, civil
engineering, and the payment of a pre -application fee.
NOW, THEREFORE, BE IT RESOLVED that the Corporation is authorized to submit
a pre -application and execute a firm commitment for a HUD 221(d)(4) loan to the United States
Department of Housing and Urban Affairs, including execution of relevant documents and the
completion of contracts as required;
FURTHER RESOLVED that the Corporation is authorized to expend up to
$108,000.00 of Corporation funds previously approved by the Board for the project on June 7,
2011, for any and all costs related to the completion and submittal of the pre -application for a
HUD 221(d)(4) loan to the United States Department of Housing and Urban Affairs; and
RESOLUTION NO. FWLDC-2013-03
PAGE 3
FURTHER RESOLVED, that the Secretary or any Assistant Secretary of the
Corporation is hereby authorized and directed to certify the adoption of this Resolution.
Adopted this 4"' day of June, 2013.
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Dennis,,Shinglqt6n Secretary