Loading...
HomeMy WebLinkAboutIR 6987 [!FORMAL REPORT TO CITY COUNCIL MEMBERS No. 6987 December 4, 1984 ORTy� To the Mayor and Members of the City Council Subject: PROVISION OF FOOD AT JAIL aX� The City of Fort Worth has a contract with the Fort Worth Rehabilitation Farm, Inc., to provide room and board for indigent alcoholics and to provide food for inmates at the City jail. This contract expires December 31, 1984, and had the provision for an extension on a month-to-month basis until the opening of the new Fort Worth Police Administration and Jail Building. The Board of the Fort Worth Rehabilitation Farm, Inc. , through its President, Robert C raft, and Executive Director, Reverend Henry F. Cooper, has notified the City that it is unwilling to renew the contract past its December 31, 1984, expiration date. This is due to the illness of Reverend Henry Cooper, the Farm's Executive Director. Please see attached letter to Vernell Sturns. In order to meet the food service needs at the present jail until the new facility opens, staff proposes to take bids on a month-to-month food contract that would be effective January 1, 1985. The operation at the Rehabilitation Farm will cease by December 31, 1984, at which time the Park and Recreation Department will take steps to secure the facility. If more information is required; it will be submitted upon request. Vernell Sturns Acting City Manager VS:jcnn Attachment ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS —�-� INFORMAL REPORT TO CI it COUNCIL MEMBERS No. 6987 - gage 2 �o�soer�p To the Mayor and Members of the City Council November 20, 1984 %rE"ay Subject: RENOVATION AND OPERATION OF THE NORTHSIDE COLISEUM 1073 Private Financing Triad Corporation proposes to inject $11.5 million into the various projects. An additional $6.5 million is proposed from other sources, such as EDA, Texas Longhorn Breeders Association, leasehold improve- ments, and working capital investments. PREVIOUS CITY COUNCIL ACTION On October 23, 1984, Informal Report No. 6977 was presented to the City Council outlining the basic proposal from Triad and providing additional information that was requested in the Pre-Council meeting on October 16. The following general conditions were also outlined: 1. Receipt of a waiver from IDA to allow the City to enter into a long term lease of the Coliseum. 2. Negotiation of an acceptable lease agreement. 3. Provision of firm financial-ecrmitments for projects other than the Coliseum and Commerce Street. 4. Agreement that the City's participation would not exceed $3,017,860. M&C G-6144 was also presented to the City Council on October 23, 1984. The concept for renovation and operation of the Coliseum was approved and staff was directed to develop a detailed plan for City Council con- sideration. PROJECT STATUS Economic Development Administration Waiver When the City accepted grants from IDA in 1974 and 1975, an agreement was signed that basically stated that the Coliseum would remain avail- able for public use and that it would not be leased or sold for 40 years. Violation of the lease requires repayment to EDA an amount equal to the fair market value of the iriprovements that were funded. On October 16, 1984, the Austin Regional Office of IDA formally requested that the Assistant Secretary for Economic Development waive the property management agreement which would then allow the City to enter into a long-term lease agreement. We have received verbal con- firmation that the waiver has been granted, however, aMORTH. notification has not been received. RID worm ISSUED BY THE CITY MANAGER AS INFORMAL REPORT TO Cf. COUNCIL MEMBERS AM,,` *87 - Page 3 A[O f0;?,. To the Mayor and Members of the City Council November 20, 1984 . p v � s •rExPy. Vubject: RENOVATION AND OPERATION OF THE NORTHSIDE COLISEUM eTa Lease Negotiations Caipletion of the lease is awaiting formal approval of the waiver by EDA. However, the basic terms agreed to by both parties are outlined below: 1. The initial term of the lease will be for 20 years with options to extend the lease for two successive periods of five years each; 2. Upon execution of the lease and until a certificate of occupancy is obtained, lessee agrees to pay rental of $200 per month; 3. After issuance of a certificate of occupancy, lessee agrees to pay the greater of: a. A minimm rental adequate to amortize, over a 15 year period, $1 million in certificates of obligation. The specific amount will be determined by the City's bond counsel. b. A percentage of gross revenue frau the sale of food and bever- age based on the schedule below: 1986 through 1990 - 5% 1991 through 1995 - 8% 1996 through 2005 - 10% 4. As additional rental, lessee agrees to pay 3% of all gross reve- nues in excess of $4 million beginning in 1986. a. The gross revenue floor ($4,000,000) will increase each year by the same percentage that the consumer price index increases. b. At no time will the additional rental under this provision exceed 25% of lessee's taxable income frau operation of the Coliseum. 5. Lessee will pay for normal maintenance, repairs, clear-up, secu- rity, and utilities; 6. Lessee also agrees to pay for all insurance required on the Coli- seum; 7. The lease will not be reassigned without the prior written a val of the City. %j%% 8. The building will continue to be used for public purposes. C11� TW" ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS JINFORMAL REPORT TO CI. COUNCIL MEMBERS �` No. 619R7 _ p� , �oE40 er�p To the Mayor and Members of the City Council November 20, 1984 x rexPy. Subject: NATION AND OPERATION OF THE NORTHSIDE COLISEUM 1075 Firm Financial Commitments The developers have provided staff with evidence of firm financial ccnr- mitments in a form and format that has been reviewed by the City's fin- ancial advisor. 1. There is a cash equity commitment of $7.5 million frau individual investors, along with a certifying letter frau their bank that the funds are on hand. 2. A bank has committed to purchase $2 million in industrial development bonds for construction of the parking lot. 3. Letters of commitment from two banks have been provided in the amount of $7.5 million. In addition to the above, the Texas Longhorn Breeders Association has provided information documenting that the value of their investment for the bronze sculpture that will be located outside of the museum and their land acquisition costs amount to about $2 million. Construction of the office and museum will amount to an additional $1.2 million. The total financial commitment from Triad is $17 million and that frau the Texas Longhorn Breeders Association is $2 million for a grand total of $19 million. The proposal called for a non-public investment of $18 million, including EDA grant money. Industrial Develcpment Bonds Triad has a commitment from a bank to purchase $2 million in industrial development bonds for construction of the parking lot. The next step in the process involves a meeting of the Stockyards Improvement Authority, Inc. to pass an inducement resolution authorizing the issuance of the bonds. All costs associated with the sale will be paid for from the bond proposals, so there will be no cost or financial responsibility to the City. Certificates of Obligation In order to issue certificates of obligation, the City Council has to formally indicate its intent to sell. M&C 6-6172 has been placed on the City Council agenda for the meeting on November 20, 1984, requesting this action. If the M&C is approved, the intent to sell will be adver- tised for a minimum of fourteen days. During that time, a rate will be .4m, negotiated with a bank and on December 11, 1984, the Council will tp asked to authorize the actual sale. � � REC01M CITY SECRUAR `WORTH, Tal ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS �- INFORMAL REPORT TO Ci. , COUNCIL MEMBERS No. 6987 - p.5 M,PTigfa �ofE4T��jA To the Mayor and Members of the City Council November 20, 1984 TexAy. Subject: RIIUVATION AND OPERATION OF THE NORTHSIDE COLISEUM /.T] Construction Schedule Below is the proposed construction schedule for the Stockyards project: Start Complete Site Grading/Clean-Up March 1, 1985 December 15, 1985 Exhibits Building March 1, 1985 December 15, 1985 Restaurant May 1, 1985 December 15, 1985 Parking Lot June 1, 1985 December 15, 1985 Billy Bob's Texas October 1, 1985 December 15, 1985 Ooliseum Improvements October 1, 1985 February 15, 1986 Commerce Street December 8, 1984 December 8, 1985 Expansion of Rodeo Drive Project During design of the Commerce Street project, it became evident that the scope, as envisioned by the consulting engineers and the developers, would exceed. the $817,860 available in the approved EDA grant. During the past few weeks, discussions have taken place with EDA about a second grant to complete additional work on Commerce. The developers under- stand that since the City's participation will not exceed the amount outlined in the proposal, a second grant would require them to provide the match. EDA has requested that the City submit a project profile on the work that would be accomplished with an additional grant. This is neither a pre-application nor an application, merely an information package to determine whether or not the project is eligible for funding. If IDA is interested, the City will be invited to submit a formal grant applica- tion. If a grant is awarded, construction would have to begin within 90 days and it must be completed within one year. City Council approval would be required to apply for and accept the grant. Based on preliminary estimates, the total project cost for Phase II of Commerce Street would be $857,000. ERA's portion would be $600,000 and Triad's match would be $257,100. The match would be made in the form of an irrevocable letter of credit from Triad made payable to the City. If the City applies for and receives the grant, there will be a short time frame to design the project and have it underway within 90 days of the grant offer. The developers have proposed that they provide the City with a letter of credit in the amount of the architectural/ engineering fee at this time so that work can begin. If a grant is received, the A/E fees will be an eligible cost. If there is no grant offer, the work done by the consultants will be paid from the letter of credit. In any event, the City will not be out of any funds l� ny work on a Phase II grant. offic p� R�COG Oily SECRETARY ISSUED BY THE CITY MANAGER Wim! TEXAS INFORMAL REPORT TO Ch f COUNCIL MEMBERS No. 6987 - Page 6 Q November 20, 1984 To the Mayor and Members of the City Council Subject• RENOVATION AND OPERATION OF THE NORTHSIDE COLISEUM 73 SunTm ._i_ Triad has supplied firm financial commitments for the private sector portion of the overall Stockyards project. The only significant missing elements are: the formal waiver frau EDA on the Coliseum; a lease agreement, an inducement resolution for the industrial developnent bonds; and authorization to sell certificates of obligation for Coliseum improvements. Staff received a telephone call from the Regional office on Friday noti- fying the City that the waiver has been granted subject to the approval of a lease agreement by the Regional EDA office and the Regional Coun- sel. A written notification is expected during the week of November 19, 1984. The basic terms of a lease agreement has been agreed to and a lease will be submitted to the City Council for approval prior to, or in conjunc- tion with, authorization to sell the certificates of obligation. Triad has a bank purchaser for the industrial development bonds and they can be sold as soon as an inducement resolution is passed by the Stock- yards Improvement Authority, Inc. If M&C 6-6172 is approved, the process for issuance of certificates of obligation will begin. If the certificates of obligation are sold, pre- sent plans call for a simultaneous closing of public and private funding on or about January 10, 1985. If additional information is needed, it will be supplied upon request. I F�bert L. Herchert� City Manager RLH:jcrm ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS