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HomeMy WebLinkAboutContract 45858-A3CITY OF FORT WORTH CSC No. 45858-A3 AMENDMENT NO.3 TO FUNDING AGREEMENT Near Southside Medical District Street Repair & Reconstruction Program PARTNERS: City of Fort Worth, Tax Increment Reinvestment Zone #4 (Southside TIF) & Fort Worth South, Inc. This AMENDMENT NO. 3 to the City Secretary #45858 (the "Funding Agreement"), between the City of Fort Worth, ("City") and Fort Worth South, Inc., ("FWSI") for the Near Southside Medical District Street Repair and Reconstruction Program ("Program"). WHEREAS, On August 5, 2014, (M&C C-26906) the City Council adopted Resolution No. 4342-08-2014 authorizing a Funding Agreement with Fort Worth South, Inc., in the amount of $10,000,000.00 for Council District 9 Street Repair and Reconstruction Program; WHEREAS, On December 3, 2019 (M&C 19-0347), the City Council adopted Resolution No. 5151-12-2019 authorizing the execution of Amendment No. 1 to the Funding Agreement in the amount of $3,000,000 for the Street Repair and Reconstruction Program for a revised amount of $13,000,000.00; WHEREAS, on February 28, 2023 (M&C 23-0156) the City Council adopted Resolution No. 5701-02-2023 authorizing execution of Amendment No. 2 to the Funding Agreement to increase the Tax Increment Reinvestment Zone No. 4 (Southside TIF) participation in this program in the amount of $3,000,000.00; and WHEREAS, it has become necessary to execute Amendment No. 3 to the Funding Agreement to increase the Tax Increment Reinvestment Zone No. 4 (Southside TIF) participation in the Program in the amount of $2,000,000.00. NOW, THEREFORE, it is agreed by the CITY and FWSI as follows: Article I The Funding Agreement is hereby amended to add up to $2,000,000 in additional funds, sourced as described above, for the completion of the Program and for additional streets as those funds may allow. Article IV TOTAL PROJECT FUNDING City of Fort Worth $ 6.5 million Southside TIF $ 11.5 million TOTAL $18.0 million There are no other changes to the ORIGINAL AGREEMENT. Amendment No. 3 to Funding Agreement CS#45858 Page 1 of 2 Fort Worth South, Inc. [Executed effective as of the date signed by the Assistant City Manager below.] / [ACCEPTED AND AGREED:] City: Fort Worth South, Inc.: Bv: William .Johnson (A g30, 202412:08 CDT) Bv: Name: William Johnson Name: Mike Brennan Title: Assistant City Manager Title: President / Date: Aug 30, 2024 Date: 5-/ ' S-/Z / CITY OF FORT WORTH INTERNAL ROUTING PROCESS: Approved as to Form and Legality: �� By: Name: Taylor C. Paris Title: Assistant City Attorney Contract Authorization: M&C: N/A Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Name: Mary Hanna Title: Engineering Manager City Secretary: By: Name: Jannette S. Goodall Title: City Secretary Amendment No. 3 to Funding Agreement CS#45858 Page 2 of 2 Fort Worth South, Inc. Resolution: TIF4-2024-03 Date: May 1, 2024 RESOLUTION Board of Directors Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas (Southside TIF) AMENDING A TAX INCREMENT FINANCING (TIF) FUNDING AGREEMENT BETWEEN THE BOARD OFDIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR AND THE CITY OF FORT WORTH TO INCREASE FUNDING BY S2,000, 000.00 FOR THE NEAR SOUTHSIDE STREET REPAIR PROGRAM JOINTLY FUNDED BY TIF #4 AND THE CITY WHEREAS, the Board of Directors ("Board") of Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas ("TIF District") desires to promote the development and redevelopment of the Southside Development District area as authorized by the Fort Worth City Council and state law; WHEREAS, on August 30, 1999, the Board adopted a Project and Financing Plan ("Plan") for the TIF District, which was approved by the City Council by ordinance and in accordance with Section 311.011 of the Texas Tax Code, and which was subsequently updated by the Board on November 1, 2012, and approved by City Council on December 11, 2012; WHEREAS, in accordance with Section 311.010 of the Texas Tax Code, the Board may use TIF revenue only for the types and kinds of projects set forth in the Plan; WHEREAS, the Plan identifies public improvements that benefit the general public and facilitate development of the TIF District as an eligible expense; WHEREAS, the Board authorized a TIF Funding Agreement with the City of Fort Worth ("City") on November 6, 2013 and, subsequently, approved additional funding on June 5, 2019, f'or a total amount up to $6,500,000 in TIF funds to be matched by funds from the City's 2014 Capital Improvement Program ("CIP"), specific to public street and streetscape improvements within the TIF (aka, Near Southside Street Repair Program) ("Project"); WHEREAS, in August 2014, the City and Fort Worth Southside Development District, Inc. d/b/a Near Southside, Inc. ("Near Southside") entered into City Secretary Contract Number 45858, a funding agreement outlining the roles and responsibilities for the Project, and in January 2020 the City entered into TIF Funding Agreement with the TIF District (City Secretary Contract Number 53365) ("TIF Agreement"), reflecting the funding obligations of the TIF and the City for the Near Southside Street Repair Program, as described above; WHEREAS, on December 7, 2022, in response to a proposal to add a fifth round to the Program and to address increases in construction costs, the Board approved up to $3,000,000.00 in additional funding from the TIF District (Resolution No. 2022-04-11-A 1); WHEREAS, as the previously secured funding is supporting five rounds of successful design and construction, City and Near Southside staff have continued to study eligible street segments for improvement and repair, and propose an additional sixth round to address needed repairs to important streets not previously included; Page ] of 2 Resolution: 2024- Date: May 1, 2024 WHEREAS, a proposed increase of $2,000,000.00 should cover design and construction costs associated with the new street segments; and WHEREAS, the purpose of this Resolution is to authorize amendment to the TIF Funding Agreement to increase funding for the Project by $2,000,000.00. NOW, THEREFORE, BE IT RESOLVED: Section 1. That the Board hereby authorizes amendment to the Tax Increment Financing Funding Agreement with the City of Fort Worth to increase funding for the Project in an amount not to exceed $2,000,000.00 in accordance with the Recitals set forth above ("Agreement"). Section 2. That the Project is underway and shall be completed no later than December 31, 2026, with the option to allow the City Manager or a designated Assistant City Manager of the City of Fort Worth to extend the deadline up to an additional six (6) months if the Project is substantially complete. Section 3. That the Chairperson of the Board is authorized to sign this Resolution on the Board's behalf and execute all necessary agreements and related documents in accordance with this Resolution. Section 4. That this Resolution shall take effect immediately from and after its passage. Approved: KnA _ Elizabeth Beck, Chair Page 2 of 2 M&C Review City Council Agenda Create New From This M&C DATE: 2/28/2023 REFERENCE **M&C LOG 2020CD9 STREET REPAIR AND NO.: 23-0156 NAME: RECONSTRUCTION AMENDMENT#2 CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 9 / Future CD 9) Adopt Resolution Authorizing Execution of Amendment Number Two to the Funding Agreement with Fort Worth South, Inc. dba Near Southside, Inc. in the Amount of $3,000,000.00 for the Street Repair and Reconstruction Program for a Revised Amount of $16,000,000.00, Authorize Acceptance of Funds in an Amount Up to $3,000,000.00 from Tax Increment Reinvestment Zone No. 4., Adopt Appropriation Ordinance; and Amend the Fiscal Year 2023-2027 Capital Improvement Program RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached resolution authorizing execution of Amendment Number Two to the Funding Agreement with Fort Worth South, Inc. dba Near Southside, Inc. (City Secretary Contract 45858), in the amount of $3,000,000.00 for the Street Repair and Reconstruction Program for a revised amount of $16,000,000.00; 2. Authorize acceptance of funds in the amount up to $3,000,000.00 from Tax Increment Reinvestment Zone Number 4; 3. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the Tax Increment Reinvestment Zone (TIRZ) - General Capital Fund in the amount up to $3,000,000.00, transferred from the Tax Increment Reinvestment Zone (TIRZ) #4 - Southside Medical District Fund, for the purpose of funding the Round 5-Council District 9 Street Repair and Reconstruction Program project (City Project No. 103969); and 4. Amend Fiscal Year 2023-2027 Capital Improvement Program. DISCUSSION: On August 5, 2014, Mayor and Council Communication (M&C) C-26906, the City Council authorized Resolution No. 4342-08-2014 authorizing a Funding Agreement with Near Southside, Inc. Contract No. 45858, in the amount of $10,000,000.00 for Council District 9 Street Repair and Reconstruction Program. Over four years, the program leveraged funding in an amount up to $5,000,000.00 from the Tax Increment Reinvestment Zone No. 4 (Southside TIF). The City of Fort Worth matched the funds in an amount up to $5,000,000.00 using 2014 Bond Program -Grant Matches Funds. The program included 50 street segments to be constructed in four sequential projects. On December 3, 2019 (M&C 19-0347), the City Council authorized Resolution No. 5151-12-2019 authorizing execution of Amendment Number 1 to the Funding Agreement with Near Southside, Inc., in the amount of $3,000,000.00 for the Street Repair and Reconstruction Program for a revised amount of $13,000,000.00 to complete the original scope of the program. Funding for this amendment was split equally between Southside TIF and the City of Fort Worth at an amount of $1,500,000.00 each. This M&C will increase the Tax Increment Reinvestment Zone No. 4 ("Southside TIF") participation in this program in the amount of $3,000,000.00. These additional funds will help in closing the funding gap file:///T/... 2-TIFs/TIF%204%20(Southside)/Projects%20and%20Admin/Streets%20Repair%20Program/TIF4_MC23-0156_StreetRepair.html[8/21/2024 1:52:11 PM] M&C Review due to City and Southside TIF adding street segments to the program, as well as due to increased costs resulting from the complexity of urban street reconstruction and coordination with dozens of private developments. This amendment will also include the funding needed to construct a new street connection between Henderson and Adams Streets at the I-30 ramp (Rami Trail) as part of this program. These additional funds will be allocated on a 60/40 participation (Southside TIF/City of Fort Worth, respectively) increasing the commitment for a total of up to $9,500,000.00. The City participation will not change for a total amount of $6,500,000.00 Funding for the Round 5 of the program project was not included in the Fiscal Year (FY) 2023- 2027 Capital Improvement Program due to insufficient funding to complete the original scope. The action in this M&C will amend the FY2023- 2027 Capital Improvement Program. This program is located in COUNCIL DISTRICT 9 / Future COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the TIRZ #4 - Southside Med Dist Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the TIRZ - General Capital Fund for the Round 5-CD9 Street Repair Prog project. Prior to an expenditure being incurred, the Transportation & Public Works Department has the responsibility of verifying the availability of funds. TO Fund Department Account Project ProgramActivity Budget Reference # Amount ID ID Year (Chartfield 2) I N:Z0 LI I Fund Department Account Project ProgramActivityBudget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Mana er' ffke by: William Johnson (5806) Originating Department Head: Lauren Prieur (6035) Additional Information Contact: Monty Hall (8662) ATTACHMENTS 20 CD9 REPAIR AND RECONSTRUCTION PROGRAM Map.pdf (Public) 2020CD9 STREET REPAIR AND RECONSTRUCTION AMENDMENT#2 funds availability.pdf (CFW Internal) 2020CD9 STREET REPAIR AND RECONSTRUCTION AMENDMENT#2 Updated FID.xlsx (CFW Internal) Form 1295 2022 Street Repair NSI.pdf (CFW Internal) ORD#2_30286 (r-�).docx (Public) Resolution_2nd_AMENDMENT_-_FWSI_Street_Repair_Procram(2.09.23).docx (Public) file:///T/... 2-TIFs/TIF%204%20(Southside)/Projects%20and%20Admin/Streets%20Repair%20Program/TIF4_MC23-0156_StreetRepair.html[8/21/2024 1:52:11 PM]