HomeMy WebLinkAboutOrdinance 27106-08-2024Ordinance No. 2710Lr6rq--2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS OPERATING FEDERAL FUND IN THE
AMOUNT OF $528,533.99, FOR THE PURPOSE OF FUNDING BROWNFIELDS
REVOLVING LOAN FUND CAPITAL PROJECT (CITY PROJECT NO. G00071);
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWPfH; 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 for Fiscal Year 2023-2024 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Grants
Operating Federal Fund, in the amount of $528,533.99, for the purpose of funding the Brownfields
Revolving Loan Fund capital project (City Project No. G00071).
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, 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 26453-09-2023 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said prior ordinances and appropriations are hereby expressly repealed.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 LEGALITY:
-- A4fLiF-
Assistant City Attorney
ADOPTED AND EFFECTIVE: August 27, 2024
CITY SECRETARY
.Jannette S. Goodall
u
Ordinance No lgz190
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GRANTS FUND IN THE AMOUNT OF $1,000,000 SUBJECT TO THE RECEIPT OF THE FUNDS
FROM THE ENVIRONMENTAL PROTECTION AGENCY FOR THE PURPOSE OF FUNDING THE
BROWNFIELDS ECONOMIC REDEVELOPMENT PROGRAM, MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL 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 I
That in addition to those amounts allocated to the various City departments for the Fiscal Year 2000-0I and in the Budget of
the City Manager, there shall also be increased estimated receipts and appropriations in Grants Fund in the amount of
$1,000,000 subject to the receipt of the funds from the Environmental Protection Agency for the purpose of funding the
BrownfieIds Economic Redevelopment Program.
SECTION 2,
Should any portion, section or part of a section of this ordmance 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 renLn;ng 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 ordnance shall be cumulative of Ordinance No 14286 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 and be in full force after the date of its passage, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY
Assistant City Attorw
Date
-4-0/
Adopted
/~/7-01
Effective
City of Fort Worth, Texas
4vagor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
1/16/01 **G-13129 52BCRLF 1 of 2
SUBJECT GRANT APPLICATION TO ENVIRONMENTAL PROTECTION AGENCY FOR
FUNDING OF BROWNFIELDS CLEANUP REVOLVING LOAN FUND
RECOMMENDATION
It is. recommended that the City Council
1 Authorize the City Manager to submit an application to the Environmental Protection Agency for the
purpose of funding a Brownfields Cleanup Revolving Loan Fund (BCRLF), and
2. Authorize the City Manager to accept and execute the BCRLF Cooperative Agreement, if awarded,
and
3 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations up to
$1,000,000 in the Grants Fund subject to receipt of the funds.
DISCUSSION
The City's Brownfields Economic Redevelopment Program promotes cleanup and redevelopment of
qualifying brownfields sites through identification and assessment of real or perceived contamination
The program covers all of Fort Worth but focuses on Council. Districts 2, 5, and 8 In the first year of the
City's brownfields program, 223 potential candidates for redevelopment were identified More than 70%
of the identified sites are located in the targeted council districts
The BCRLF will take the program to the next level by providing the financial assistance for brownfields
property owners to proceed with the cleanup prior to redevelopment. The funds received under this
grant will be used to capitalize a loan fund through which brownfields property owners can apply for
low/no-interest loans The funds will also be used to offset general administrative costs in managing
the program and fund costs incurred by the lead agency
Upon selection for the BCRLF, the City will contract with a third party with experience in structuring loan
agreements, collateral agreements, loan disbursement, tracking and repayment instruments to act as
fund manager
The Intergovernmental Affairs and Grants Management Division will provide financial oversight
City of Fort Worth, Texas
"avow and coun"R Communication
2 of 2
FISCAL IN FORMATIONICERTIFICATION
The Finance Director certifies that upon approval of the above recommendations, adoption of the
attached appropriation ordinance, and receipt of the grant, funds will be available in the current
operating budget, as appropriated, of the Grants Fund
CB k
Submitted for City Manager's
Office by:
Charles Boswell 8511
FUND ACCOUNT CENTER AMOUNT
CITY SECRETARY
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JAN 16 2VOI
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461314
052214680000
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539120
052214680010
$1,000,000 CO
Originating Department Head:
Brian Boemer 8079
(from)
Additional Information Contact:
Brian Boerner 8079
Adapted Ordinance No. l y 90
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/27/24 M&C FILE NUMBER: M&C 24-0757
LOG NAME: 22AWARD BROWNFIELDS REVOLVING LOAN FUND GRANT
SUBJECT
(CD 9) Authorize the Award of Up to $1,340,000.00 of the Brownfields Cleanup Revolving Loan Fund to 1'15 W 7th, LLC for Brownfield
Remediation and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
Authorize the award and execution of an agreement with 115 W 7th, LLC, allowing it to borrow an amount up to $1,340,000.00 from the
City's Brownfields Cleanup Revolving Loan Fund to make corrective actions, environmental cleanup, and repairs to the property located at
115 W 7th Street, Fort Worth, Texas, 76102, an acknowledged brownfield; and
Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Grants Operating Federal Fund in the
amount of $528,533.99 for the purpose of funding the Brownfields Cleanup Revolving Loan Fund Capital Project (City Project No. G00071).
DISCUSSION:
The purpose of this Mayor and Council Communlcation .(M&C) is to seek council authority to award and authorize the execution of an agreement
with 115 W 7th, LLC to allow for environmental cleanup, repairs and improvements to the property; adopt an appropriation ordinance; and amend
the budget for the Brownfields Cleanup Revolving Loan Fund (BCRLF) capital project.
The City applied for and was awarded a U.S. Environmental Protection Agency BCRLF grant for $1,000,000.00 in 2001 (M&C G-13129). These
grant funds were provided to support the physical recovery of contaminated buildings and land, known as brownfields, by loaning grant funds to
qualified borrowers for the remediation of brownfields within Fort Worth. The City placed this grant in an interest -bearing account when it received
these grant funds. As of August 8, 2024, the interest accrued on this loan was $528,533.99.
In 2007, the City successfully awarded a BCRLF loan for $800,000.00, with a 15-year term and a 2% interest rate (M&C C-21938). The loan was
repaid in three years, resulting in more than $30,000.00 earned in interest. In 2021, City Council authorized a BCRLF loan to Crescent Real Estate
LLC., however, the developer ultimately did not utilize the loan during development (M&C 21-0142).
In January 2024, 115 W 7th, LLC applied for a BCRLF loan in an amount up to $1,340,000.00 for the discovery and abatement of asbestos, lead,
hazardous materials, and mold in the former Oncor Building located at 115 W 7th Street, Fort Worth, Texas, 76102. After abatement and
upgrades, the applicant plans to transform the vacant upper floors into 330 studio, one -bedroom and two -bedroom apartments.
To provide the $1,340,000.00 loan to 115 W 7th, LLC and to account for department changes since receipt of funds; adjustments to internal
account balances are necessary. Once adjusted, the amount noted will he loaned to 115 W 7th, LLC at 1.5% interest over the 20-year term of the
loan. A summary of the adjustments is below.
G00071 Brownfields Cleanup Rev
Loan
Adopted
Budget
Budget
Increase
Revised
Budget
REVENUES
4310007 Intrgv Rev - EPA
$ 867,125.61
0.00
$ 867,125.61
4611010 Interest Earnings
$ 31,579.26
$ 528,533.99
$ 560,113.25
4611017 Interest On Loans
$ 800,000.00
0.00
$ 800,000.00
Total Revenue Budget
$ 1,698,704.87
$528,533.99
$2,227,238.86
EXPENDITURES
0200410 - TPW Dept General
Government*
$ 1,698,704.87
$ (827,252.28)
$ 871,452.59
0230424 - Code Compl Prot Inspection
0.00
$ 7,231.75
$ 7,231.75
0220424 - ENV Grants and Capital
0.00
$ 1,348,554.52
$ 1,348,554.52
Total Operating Budget
$ 1,698,704.87
$528,533.99
$ 2,227,238.86
*Grant received by Transportation and Public Works Environmental Management division in 2001.
The property at 115 W 7th Street is located in Council District 9.
FISCAL INFORMATION 1 QERT FICAT ON:
The Director of Finance certifies that funds are currently available in the Brownfields Cleanup Rev Loan project within the Grants Operating Federal
Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the
Grants Operating Federal Fund for the Brownfieids Cleanup Rev Loan project to support the above recommendations and award of the
agreement. The Environmental Services Department (and Financial Management Services) will be responsible for the collection and deposit of
funds due to the City.
Submitted for City Manager's Office by: Valerie Washington 6199
griginating Business [snit Head: Cody Whittenburg 5465
Additional Information Contact: Wyndie Turpen 6982
Nixalis Benitez 8570