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HomeMy WebLinkAboutOrdinance 16375-04-2005Ordinance No. ~~~~ ~ -O~ ~c~-DU 5 AN ORDINANCE INCREASING ESTIMATEb RECEIPTS AND APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $872,000, SUBJECT TO RECEIPT OF THE BROWNFIELD ECONOMIC DEVELOPMENT INITIATIVE GRANT FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FOR THE PURPOSE OF FUNDING THE TEXAS AND PACIFIC WAREHOUSE PROJECT; MAKING TH1S ORDINANCE CUMULATIVE OF PRIOR ORDINANCE5 IN CONFLICT HEREWITH; AND PROVIDING AN EI=FECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECT[ON 1. That in addition to these amounts allocated to the various City departments for Fiscal Year 2004-2005 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants Fund in the amount of $872,000, subject to receipt of the Brownfield Economic Development Initiative grant from the U.S. Department of Housing and Urban Development, for the purpose of funding the Texas and Pacific Warehouse Project. SECTION 2. That should any portion, section ar 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. 16081 and all other ordinances and appropriations amending the same except in these instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting previsions of said prior ordinances and appropriations are hereby expressly repealed.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: '~ ~ Assistant City Attorney ADOPTED AND EFFECTIVE: ~ ~ ~ ~ 1 O5 Mayor and Council Communication COUNCIL .ACTION: Approved on 4/19/2005 -Res. #3189-04-2005, Ord. #16375-04-2005 & 16376-04-2005 CONTINUED FROM A PREVIOUS 11VEEK DATE: Tuesday, April 12, 2005 LOG NAME: 17BEDITPWHS REFERENCE NO.: G-74747 SUBJECT: Adapt Resolution and Authorize Submission of Amended Brownfield Economic Development Initiative Grant Application and Application for Section 108 Loan Guarantee to the United States Department of Housing and Urban Development for the Texas and Pacific Warehouse Project FtECOMMEN©AT30N: It is recommended that the City Council: 1. Adopt the Resolution amending the Community Development Program to include the Texas and Pacific Warehouse Project in accordance with Chapter 373 of the Texas Local Government Code; Z. Authorize the City Manager to submit an amended $872,000 Brownfield Economic Development Initiative (BEDi} Grant to the U.S. Department of Housing and Urban Development (HUD}; 3. Authorize the City Manager to submit ari application to HUD for a commitment of $5,670,Oflfl in Section 108 loan guarantees for the Texas and Pacific Warehouse Project; 4. Accept, if offered, the BEDI grant and Section 108 loan funds; 5. Authorize the City Manager to enter into a contract with HUD for the receipt and payment of the Section 108 Ioan; 6. Adopt the appropriation ordinance increasing estimate receipts and appropriations by $872,Ofl0 in the Grants Fund subject to receipt of the grant; and 7. Adapt the appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Local Development Corporation Fund by $5,670,000 subject to receipt of the loan guarantee. ©15CUSSlON: The adoption of the attached Resolution is required in order to comply with Chapter 373 of the Texas Local Government Code. By previous Mayor and Council Communications (M&C), the City Council has identified the target areas where federal funds are to be used, has identified specific Community Development Program areas, such as Model Blacks and Target Area Plans, has identified a citizen participation plan which solicits public comment on the expenditure of federal funds and has developed, in the form of the Consolidated Action Plan process, a Community Development Program. The attached Resolution readopts the previous adoption actions to comply with State law. Additionally, the Resnlufiian adopts the Texas and Pacific Warehouse Project and establishes its boundaries as fellows: West Lancaster to the north, Jennings Street to the east, I-3fl to the south, and Taylor Street to the west. Lagr~ame: 17BEDITPWHS pa,~c I of 3 In May 2001, the City, in partnership with a developer, submitted a request for $2,000,000 BEDI grant funds and accompanying $13,OOO,pOp Section 108 loan guarantees to renovate the former Montgomery Ward site. in September 2001, the Department of Hauling and Urban Development (HUD) awarded the City the BEDI grant for the site and the proposed development opportunity. The Montgomery Ward redevelopment project won the national competition based on its strength slang five key factors. Since that time, the BEDI grant became a redevelopment foal that would not be appropriate for that site. On July 13, 2004 the City Council's Central City Revitalization and Economic Development (CCRED) Gommittee directed Staff to solicit project proposals from the Fort Worth development community for a suitable alternative site for the use of the BEDI grant and Section 108 loan funds. Wth permission and input from HUD, the City has undertaken an extensive search for a meritorious project that would meet federal requirements,. greatly benefit from the BEDI grant and Section 108 loan funds and serve as a catalyst far revitalization. On February 8, 2005, the CCRED Committee selected the Texas and Pacific Warehouse Project through acity-wide competition as the appropriate project to request reallocation of the funds. The deadline to submit an amended BEDI grant and formal Section 108 application for a new site is April 29, 2pp5. The City seeks permission from HUD to utilize $872,000 in BEDI Grant funds and $5,670,000 in Section 108 loan proceeds to leverage the $r;0 million renovation of the historic Texas & Pacific Warehouse located at 401 West Lancaster Avenue in Fort Worth's Downtown. The City's participation in the project will be part of an overall redevelopment program undertaken by a joint venture of Cleopatra, Inc. in a limited partnership with a Historic Preservation tax credit investor. The BEDI Grant and Section 108 loan proceeds will address the structural hazards of this now decaying architectural treasure. Immediately correcting decades of neglect will cure the property of eminent hazards to public health and safety and in the process bring the property back to, productive use as 300 units of apartments, 52,000 square feet of neighborhood supporting retail, and a parking structure to accommodate public occupants and patrons. The City seeks the use of the BEDI Grant and Section 108 loan far the T&P Warehouse under the National Objective of eradicating slum and blight on a spot basis. On March 18, 2p05, in accordance with HUD regulations, the proposed application aanterkts were published in the Commercial Recorder, a publication of general circulation, to afFord the public an opportunity to examine the application and to provide comments an the proposed application. The publication opens the public comment period far 80 days. The comment period allows for citizen comments on the proposal to change the City's 2004 Consolidated Plan and the state Gammunity ©eveiapment Program to include the activities and funding proposed by the Texas and Pacific Warehouse project. Additionally, two public hearings are scheduled for April 12, 2005 and April 19, 2005 during the regular City Council meeting. The public cort~ment period will end April 17, 2005 and the City Gauncil may take action to adopt the recommendations contained herein as early as April 19, 2005. Upon approval of this M&C, it is the intent of the City staff to submit the application forms required far receipt of this BEDI grant. Submission of the application, or the actual receipt by the City of an award notice of the BED) funds, would not compel the City tv apply far ar to borrow HUD Section 108 loan funds. Authorization from the City Council #o apply for or to borrow HUD 108 financing would be requested separately at a future date and upon receiving HUD approval. Based on the information now available, the submission of this application will not have fiscal impact on the City's General Fund. This BEDI grant does oat require a local match. If the application is awarded by HUD, Lognaane: 17BEDITPWHS Page 2 of 3 staff wiq present to the City Cauncii a proposed loan agreement and ecanomie development agreement for the project. The project is located in COUNCIL ©ISTRICT 9. FISCAL INFORMATIONIC~RTIFICATION: The Finance Director certifies that upon approval of the above recommendations, adoption of the apprnpriatian ordinances and receipt of the grant and loan, funds wilt be avaiiable in the current operating budget, as appropriated, in the Grants Fund and the Fort Worth Local Development Carporatian Fund. TO Fundl_A_ ccour#tlCer~ters FROM FundlAccauntlCenters GR76 451727 017208018000 $872.000.OD GR76 5 AR10tlS 017208018010 ~872.OOD.00 R1D6 451727 017106006000 $5,670.OOD.00 8108 5 ARIQUS 0171060D6000. ~5670,Q00.00 Submitted for C,tX,.Manager's Office by Dale Fisseier (6140) Ori inatiR De artment Head: Tam Higgins (8192) Addi`tiataal Infortnatiar~ Car tact: Christine Maguire (8187) L©gnarne: l7BEDITPWHS Page 3 of 3