HomeMy WebLinkAboutResolution Central City Local Government Corporation (CCLGC) FWCCLGC-2021-03RESOLUTION NO. FWCCLGC-2021-03
CENTRAL CITY LOCAL GOVERNMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorize A Resolution to Execute a Development Agreement with Tax
Increment Financing District Number 4 for the Funding in an Amount lip to
$6,500,000 for the Acquisition of a Transferable Easement Agreement for the
Parking Garage in the Evans & Rosedale Development
WHEREAS, the Central City Local Government Corporation (the
"Corporation") was incorporated on May 3, 2005 under the provisions of Subchapter
D, Chapter 431 of the Texas Transportation Code and Chapter 394 of the Texas
Local Government Code and organized for the benefit of the City of Fort Worth (the
"City"), specifically for the purpose of aiding, assisting, and acting on behalf of the
City of Fort Worth in the exercise of its powers to accomplish any governmental
purpose of the City and in the promotion of the common good and general welfare
of the City; and
WHEREAS, the Terrell Heights neighborhood and the area in and around the
intersections of Evans Avenue and Rosedale Street played a vital role in Fort
Worth's African -American community and the city as a whole during the first half
of the twentieth century; and
WHEREAS, over time, commercial patterns changed, more affluent
individuals left the area in favor of new suburban developments, and the area began
to suffer a severe economic decline; and
WHEREAS, the City of Fort Worth ("City") has long sought to redevelop the
area in a way that is sensitive to its historic roots and that takes into account its
importance to the community; and
WHEREAS, as early as 1998 the City undertook efforts to revitalize the area
by applying for a $7.5 million Section 108 Loan Guarantee from the Department of
Housing and Urban Development (M&C C-16898), which was awarded and later
modified to support the development of a new public health/code compliance
facility and library in the area (M&C C-19859; CSC 32336); and
WHEREAS, other progress toward redevelopment includes the creation of a
new plaza and streetscape as called for in the area's October 2000 Vision Plan,
designation of the area as an urban village, and establishment of the Evans &
Rosedale Urban Village Master Plan; and
WHEREAS, in concert with the revitalization efforts over the years, the City, the Fort Worth
Housing Finance Corporation ("HFC"), and the Fort Worth Local Development Corporation
("LDC") have collectively amassed a total of thirty-six parcels of real property in
RESOLUTION NO. FWCCLGC-2021-03
Page 2
the area ("Property"), undertaken environmental assessment and remediation, and
rezoned land in an effort to facilitate redevelopment; and
WHEREAS, a few small-scale private development and redevelopment
projects have been successfully undertaken in the area, but larger redevelopment
projects have failed to come to fruition due to a variety of factors, including cyclical
economic downturns and lack of support from the neighborhood; and
WHEREAS, in December of 2018 the City, in concert with the HFC and
LDC, issued a Request for Expressions of Interest (RFEI) seeking a Master
Developer arrangement for the Property and the area in and near the historic Evans
& Rosedale Urban Village; and
WHEREAS, after a lengthy review and negotiation process that included
extensive stakeholder and community input but that was substantially prolonged due
to the negative impacts of the COVID-19 pandemic, the City, HFC, and LDC and
the board of directors of Fort Worth Tax Increment Reinvestment Zone No. 4
("TIF") all took action to move forward with Hoque Global Properties, LLC
("Hoque") as developer for an Evans and Rosedale Redevelopment and Affordable
Housing Project, consisting of a parking structure; commercial and retail space; a
cultural square, parks, and other public spaces; and housing consisting of
approximately 292 multifamily units, 20 townhomes, and 28 live -work units, with
at least 20% of the total number of housing units being affordable (collectively the
"Project"); and
WHEREAS, the Project will be completed in phases, with the first phase
consisting generally of the construction of (i) 292 multifamily units and 28
live/work units, (ii) 27,000 square feet of retail or office space, (iii) the Parking
Garage, and (iv) enhancements to include the cultural square, linear parks,
interactive square, and other public spaces (collectively, "Phase I") and the second
phase consisting of the construction of 20 townhomes ("Phase II"); and
WHEREAS, as part of the Project, the City allocated $4,245,533.42 from the
American Rescue Plan Act, Subtitle M (Coronavirus State and Local Fiscal
Recovery Funds) to pay fair market value for thirty-six parcels, consisting of thirty
Fort Worth Housing Finance Corporation ("FWHFC") properties ($3,595,977.13),
five (5) Fort Worth Local Development Corporation ("LDC") properties
($235,950.00), and one (1) City property ($112,500.00) (M&C 21-0810); and
WHEREAS, the City agreed to convey all of the Property to Hoque for the
Project in exchange for nominal monetary consideration of $1.00 per property plus
the granting of deeds of trust covering all property to ensure the property is used
for the development and continued operation of affordable housing for a period of
at least fifteen (15) years from the date of issuance of the certificate of occupancy;
and
WHEREAS, in further support of the Project, the City also authorized an
economic development program agreement with Hoque, with the aggregate value of
all grant payments capped at a gross amount of $9,000,000.00 and the amount of
RESOLUTION NO. FWCCLGC-2021-03
Page 3
grant payments to actually be awarded being made contingent on Hoque meeting
certain specifically identified investment, development, and employment criteria;
and
WHEREAS, the TIF agreed to provide funding to the Corporation through a
development agreement in an amount up to $6,500,000,00 to fund an easement for
public parking spaces in Hoque's parking garage ("Parking Garage"), which
easement will be owned by the Corporation and leased to Hoque to benefit the
Project; and
WHEREAS, the TIF also agreed to provide funding to Hoque in an amount
not to exceed $500,000.00 for sidewalks and walkways, streetscape improvements,
street lights and landscaping within public rights -of -way and other publicly
accessible spaces, and enhancements to plaza and park spaces in and around Evans
Avenue Plaza, all of which are improvements that will benefit the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE CENTRAL CITY LOCAL GOVERNMENT
CORPORATION:
That any authorized signatory for the Corporation is hereby authorized to execute a
development agreement with the TIF in an amount up to $6,500,000.00 to fund a
transferable easement agreement for public parking spaces in the Parking Garage,
which easement will be (i) for the entirety of the Parking Garage, (ii) owned by the
Corporation, and (iii) leased to Hoque or an affiliate or assignee to benefit the
Project;
Adopted this 30th day of November, 2021.
ATTEST:
B- —� ------
Jann to Goodall
Corp rate Secretary