HomeMy WebLinkAboutIR 8466 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8466
To the Mayor and Members of the City Council February 18, 2003
SUBJECT: LOCAL PROJECT ADVANCED FUNDING AGREEMENT
ISIS FOR THE MAGNOLIA GREEN LAND USE-TRANSPORTATION
JOINT VENTURE GRANT PROJECT
The following summarizes the milestones related to securing the Land Use-Transportation Joint Venture Grant
for the Magnolia Green Development project.
The Magnolia Green Development (the Development) is a mixed-use transit oriented development project
situated on the southwest comer of Rosedale Street and Hemphill Street. Located in the Magnolia Green
Urban Village, it is within a designated Neighborhood Empowerment Zone (NEZ). The Development calls for
110 units residential, 18,700 square feet of retail, 178,500 square feet of commercial, structured parking,public
green space and a transit stop. The project brings $54 million in new private sector investment and over 100
new permanent jobs to the Central City and Medical District. To support the development of the project, the
City sought and secured grant funding.
On October 11, 2001, the Regional Transportation Commission of the North Central Texas Council of
Governments (NCTCOG) nominated the City to receive $1,233,688 in federal grant funds to support the
development of the Magnolia Green Project.ect. The Joint Venture Grant Program was established to encourage
the development of mixed-use transit oriented development projects through innovative public-private
partnerships. In return for federal funding, a local developer would provide the 20% local match for the grant
"funds, develop a mixed-use project and comply with any other requirements of the grant. The Texas
Department of Transportation (TxDOT) will administer the federal grant funds for the Project.
To secure the grant funds, NCTCOG requires that Council take two courses of action: 1) pass a resolution to
place the project in the State Transportation Improvement Plan (STIP); and 2) authorize the City Manager to
execute a Local Project Advanced Funding Agreement (LPAFA) with TxDOT. NCTCOG will assess the
status of the Joint Venture projects that the Regional Transportation Commission has awarded funding.
NCTCOG has stipulated that STIP Projects lacking an executed LPAFA between the City and TxDOT by
February 21, 2003 could be in jeopardy of loosing TxDOT funds.
In fulfillment of the STIP requirement, on July 16, 2002, City Council adopted Resolution No. 2853 requesting
that the project be placed in the STIP. Additionally, the Council affirmed that the developer has rezoned the
property to mixed-use, pledges to dedicate land with a minimum value of$308,422 for the 20% local match
and to abide by all other preconditions for the grant.
To fulfill the LPAFA requirement, Council is being asked to consider a resolution authorizing the City
Manager to execute a LPAFA. The developer will assume all obligations the City has under the LPAFA with
TxDOT through a future Economic Development Agreement. Additionally, the Developer will reimburse the
City the $10,000 administration fee charged by TxDOT under the terms of the LPAFA. Any work performed
or costs incurred before the execution of an Economic Development Agreement will not be subject to
reimbursement fi-om the Joint Venture Grant.
Gary W.Jackson
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS