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HomeMy WebLinkAboutOrdinance 16376-04-2005Ordinance No. (~J1 ~ ~. D~ `c1~~J AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE FORT WORTH LOCAL DEVELOPMENT CORPORATION FUND IN THE AMOUNT OF $5,670,000, SUBJECT TO RECEIPT OF THE SECTION 108 LOAN GUARANTEE FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FOR THE PURPOSE OF FUNDING THE TEXAS AND PACIFIC WAREHOUSE PROJECT; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1 That in addition to those amounts allocated to the various City departments far Fiscal Year 2004-2005 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Fort Worth Local Development Corporation Fund in the amount of $5,670,000, subject to receipt of the Section 108 loan guarantee form 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 or 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, ar parts of sections of this ordinance, which said remaining provisions shall be and remain in full farce and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 16061 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGAI"ITY: 5 1 ~'~+ ~ tt n ADOPTEb AND EFFECTIVE: ~ ~ City e~f F®rt 1iVo~t~i, ~'ea~~~ Mayor and Council Communication SUBJECT: Adapt Resolution and Authorize Submission of Amended Brownfield Economic Development initiative Grant Application and Application for Section ~ O8 Loan Guarantee to the United States Department of Housing and Urban Development for the Texas and Pacific Warehouse Project RECOMMENDATION: It is recommended that the City Council: 1. Adapt 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; 2. 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 an application to HUD for a commitment of $O,fi70,000 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. Au#horize the City Manager to enter into a contract with HUD for the receipt and payment of the Section 108 loan; 6. Adopt the appropriation ordinance increasing estimate receipts. and appropriations by $872,000 in the Grants Fund subject to receipt of the grant; and 7. Adopt the appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth I..ocai Development Corporation Fund by $x,670,000 subject to receipt of the loan guarantee. DISCUSSION: The adoption of the attached Resolution is required in order to comply with Chapter 373 of the Texas Loca! Government Code. By previous Mayor and Council Communications (M&C), the Gity 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 an 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 Resolution adopts the Texas and Pacific Warehouse Project and establishes its boundaries as follows: West Lancaster to the north, Jennings Street to the east, I-30 to the south, and Taylor Street to the west. Lognarne; I'7BEDTTPWHS Page 1 of 3 In May 2DD1, the City, in partnership with a developer, submitted a request far $2,DDD,DDD BEDI grant funds and accompanying $13,DDD,DDD Section 1 D8 ban guarantees to renovate the former Montgomery Ward site. In September 20D1, the Department of Housing and Urban Development (HUD) awarded the City tt~e BEDI grant far the site and the proposed development opportunity. The Montgomery Ward redevelopment project won the national competition based on its strength along five key factors. Since that time, the BEDI grant became a redevelopment tool that would oat be appropriate for that site. On July 13, 2D44 the City Council's Central Gity Revitalization and Economic Development (CGRED) Committee 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 1 DS ban funds. nth permission and input from HU©, the City has undertaken an extensive search for a meritorious project that would meet federal requirements, greatly benefit from the BEDI grant and Section 1 DS loan funds and serve as a catalyst for revitalization. On February 8, 2D05, the CCRED Committee selected the Texas and Pacific Warehouse Project through achy-wide competition as the appropriate project to request reallocation of the funds. The deadline to submit an amended BEDI grant and formal Section 1 D8 application for a new site is April 29, 2DD5. The City seeks permission from HUD to utilize $872,DDD in BED! Grant funds and $5,67D,flDD in Section 1 D8 loan proceeds to leverage the $6D million renovation of the historic Texas & Pacific Warehouse located at 4D1 West Lancaster Avenue in 1=ort 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, loc. in a limited partnership with a Historic Preservation tax credit investor. The BEDI Grant and Section 1 D8 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 3DD units a# apartments, 52,DD0 square feet of neighborhood supporting retail, and a parking structure to accommodate public occupants and patrons. The City seeks the use of the BED! Grant and Section 1 D8 loan for the T&P Warehouse under the National Objective of eradicating slum and blight on a spot basis. On March 18, 2DD5, in accordance with HUD regulations, the proposed application contents 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 for 3D days. The comment period allows for citizen comments on the proposal to change the City's 2DD4 Consolidated Plan and the state Community Development Program to include the activities and funding proposed by the Texas and Pacific Warehouse project. Additionally, two public hearings are scheduled far April 12, 2DD5 and April 19, 2DD5 during the regular City Council meeting. The public comment period will end April 17, 2DD5 and the City Council may take action to adopt the recommendations contained herein as early as April 19, 2DD5. Upon approval of this M&C, it is the intent of the City staff to submit the application farms required for receipt of this BEDI grant. Submission of the application, ar the actual receipt by the City of an award notice of the BEDI funds, would not compel the City to apply for or to borrow HUD Section 1 D8 loan funds. Authorization from the City Council to apply far ar to borrow HUD 1 D8 financing would be requested separately at a future date and upon receiving HUD approval. Based an the information now available, the submission of this application will not have fiscal impact on the City's General Fund. This BEDI grant does not require a local match. lfi the application is awarded by HUD, Log,name: 17BEDTTPWHS Pale 2 of 3 staff wi11 present to the City Council a proposed loan agreement and economic development agreement for the project. The project is located in COUNCIL D15TRICT 9. FISCAL INFORMATIONICERTIFICATION: The Finance Director certifies that upon approval of the above recommends#ivns, adnptian of the appropriation ordinances and receipt of the grant and loan, funds will be available in the current operating .budget, as appropriated, in the Grants Fund and the Fort Worth Local ©evelapment Corporation Fund. TO FundlAccountlCenters 1=ROIV1 FundlAccountlCenters GR76 451727 0172D6018000 ~s72.D0o.o0 GR76 5 ARiQUS 017206018010 872 000.00 R1D6 451727 D171D6006000 $5.670.0OO.OD 8906 SNARlOUS~ D171060060D0 $5.67DAOO.OD Submitted for Ci 11~ana er'a ®ffice b Dale 1=isseler (814A} Oriciinatin_.g ©epartment Head: Tam Higgins (6192} Additional Information Contact: Christine Maguire (8187) La~name: 17BEDITPWHS I?a~e 3 of 3