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HomeMy WebLinkAboutIR 8462 ^ INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8462 To the Mayor and Members of the City Council January 28, 2003 Page 1 of 2 SUBJECT: Update on the Mercado Project and the Theatre Annex At the City Council meeting on January 14, 2003, Councilmember Jim Lane asked for the staff to prepare an update on the Mercado project and the Theatre Annex. This Informal Report is submitted to City Council to respond to Mr. Lane's request. In December 1997, the City received an Economic Development Initiative (EDI) grant in the amount of $1,000,000 as part of a larger request to fluid improvements in and around the 1400 block of North Main to create a Mercado or a Mexican therned marketplace. The EDI grant was contingent on the City applying for and receiving approval of$5,000,000 in Section 108 Loan Guarantee funds, which the City received approval for in March 1998. Additionally, other funds including Economic Development Administration (EDA) ftinds in the amount of$300,000, and Economic Development Initiative — Special Project Award funds of $257,432 were dedicated to the project, with the latter amount dedicated to the Roseland/Marine Theatre project. Other gap funding for the larger Mercado project was allocated through Community Development Block Grant (CDBG) funds. Through the use of Economic Development Initiative (EDI) funds, and Economic Development Administration (EDA) funds, several components of the "Mercado de Fort Worth" are complete, such as the construction of a pedestrian walkway, an outdoor plaza, and the renovation of the Roseland/Marine Theater. EDI funds in the amount of$1,000,000 were used to purchase and renovate the Roseland/Marine Theater. EDA fimds in the amount of $300,000 combined with CDBG ftinds were used to construct the pedestrian walkway and outdoor plaza. The Section 108 funds in the amount of$5,000,000 were utilized to provide low interest loans to property owners located in the target area to purchase and rehab buildings in and around the 1400 block of North Main. The largest loan of over $3,000,000 dollars was recently completed to construct a 3-story retail and office building on the 1500 block of North Main or the city block just north of the original Mercado footprint. Construction is slated to begin in early spring, 2003. The completely renovated Roseland/Marine Theater opened on October 28, 2000, and is operated under a lease and contract with the City by a community organization, the Latin Arts Association. The Theatre serves as a cultural center, where a wide range of entertainment and cultural art activities showcase the heritage of the Northside community. The renovation of the theatre included the installation of seating, dressing rooms and ADA restrooms, acoustical wall panels, sound, lighting and curtain systems. To expand the functionality of the Theatre as well as to develop the cultural center component of this facility, additional space is needed. Funding in the amount of $110,000 was allocated out of CDBG for the purchase of the building located at 1442 and 1444 North Main just north of the Roseland/Marine Tlieatre to incorporate this building as part of the Theatre. It was anticipated that the EDI-Special Project Award of $257,432 that was appropriated by Congress (through the efforts of Congresswoman Kay Granger) for the Theatre project would be utilized to renovate the building to house the dressing room areas, practice rooms, activity rooms,and administrative offices. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS , INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8462 pork, To the Mayor and Members of the City Council January 28, 2003 Page 2 of 2 SUBJECT: Update on the Mercado Project and the Theatre Annex The City Council authorized the purchase of the property located at 1442 and 1444 North Main on May 21, 2002. Preliminary assessments of the building prior to the completion of the sale indicated that the building was structurally sound to rehab. A recent assessment of the building by a structural engineering firm found that the current condition of the building is vastly becoming structurally unsalvageable. It has been determined that the most cost effective solution is to demolish the structure and construct a new one story facility. It is proposed that a new 4,000 square foot building be constructed at 1442 and 1444 North Main to be used to provide for storage of theatrical supplies for perfon-nances at the Theatre as well as administrative, meeting, and rehearsal space. The proposed building is to be connected to the Roseland/Marine Theatre to provide access to the stage and lobby areas. It is anticipated that the demolition of the building at 1442 and 1444 North Main will be handled through the Environmental Management Department in order to remove existing materials containing asbestos. The City Council recently approved M&C C-19427 on January 14, 2003, authorizing an architectural design agreement with Arthur Weinman, Architects to prepare the design and construction documents for the proposed building. This will be funded in part using the EDI—Special Project Award funds. Inordertoc'onstruct the building, it is anticipated that the remaining EDI-Special Project Award funds will be utilized. During the next CDBG budget deliberations, additional CDBG funds may need to be allocated to help complete the project, it is the intent of the staff to bring for-ward an M&C to fund the demolition of the building. In the coming months, other actions will be required to authorize the construction of a new building (Theatre Annex) at the site. Assuming that the City Council authorizes the construction of the Theatre Annex, the Mercado project at the 1400 block of North Main will have included: the renovation of five buildings; the construction of a 3-story 58,000 square foot mixed-use facility; the purchase and rehab of two office buildings; the financing and construction of a manufacturing facility, the construction of a plaza area; and the construction of a pedestrian walkway all in and around the target area. After the construction of the Theatre Annex, only three of the original 12 buildings at the main project site will have gone without any renovation or use during the project timeline. While the Mercado cannot yet be considered a success, the infrastructure is being put in place to make the area more attractive for retail and entertainment Should ou e any questions or need additional information,please let me know. Ci Manage ISSUED BY THE CITY MANAGER FORT WOUH, TEXAS