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HomeMy WebLinkAboutFWHFC-2025-23 - Fort Worth Housing Finance Corporation (FWHFC) - Resolution RESOLUTION NO. FWHFC-2025-23 FORT WORTH HOUSING FINANCE CORPORATION A RESOLUTION AUTHORIZING THE CORPORATION OR AN AFFILIATE TO ACT AS GENERAL CONTRACTOR OR PARTCIPATE IN A JOINT VENTURE FOR A MIXED-USE DEVELOPMENT PROJECT IN THE EVANS AND ROSEDALE NEIGHBORHOOD WHEREAS, the City Council created the Fort Worth Housing Finance Corporation (the "Corporation") in 1979 pursuant to the Texas Housing Finance Corporations Act, Chapter 394 of the Texas Local Government Code, to facilitate neighborhood revitalization and housing initiatives in the City, including but not limited to issuing tax exempt bonds; developing, rehabilitating and promoting housing; and assisting low to moderate income City residents in acquiring quality, accessible, affordable housing through lending and construction activities; WHEREAS,the Corporation seeks to promote neighborhood revitalization and foster the development of affordable quality housing throughout the City by developing partnerships among the City,the Corporation, local governments, lenders,private industry and neighborhood- based nonprofit housing organizations; WHEREAS, Royal Capital, LLC ("Royal"), a Wisconsin limited liability company, is a developer of affordable and mixed-use housing; WHEREAS, the Board of the Corporation (the "Board") has been asked to approve an agreement with Royal to develop a mixed-use urban development including approximately 181 units of multifamily housing in located in the Evans and Rosedale neighborhood (the"Project"); WHEREAS, the Board has also been asked to authorize the hiring of Scott Marks with Duane Morris law firm, as legal counsel to assist the Corporation and a Corporation owned entity with the negotiation of terms and to assist with Housing Tax Credit and multifamily housing revenue bond applications for the Project and the documents necessary for the development, financing, construction and management of the Project; WHEREAS, Royal will apply for Non-Competitive (4%) Housing Tax Credits and multifamily revenue bonds from the Texas Department of Housing and Community Affairs ("TDHCA")to finance a portion of the costs of the Project; WHEREAS, the Corporation has been asked to participate in the Project by forming a single purpose entity to serve as managing member of Evans and Rosedale Texas, LLC, or an affiliate (the "Company"), an entity created by Royal to own the Project; WHEREAS, the Corporation has been asked to approve various actions relating to the operation of the Company and its managing member, and other actions necessary for the development of the Project; WHEREAS, Royal has requested that the Corporation, which shall for all purposes of this resolution include the Corporation or a duly created affiliate, serve as the Project's General Contractor (or Joint Venturer if necessary) in order to take advantage of the state sales tax RESOLUTION NO. FWHFC-2025-23 PAGE 2 exemption available to the Corporation during construction in order to assist the Project, and agrees to enter into a construction contract relating to the Project ("Construction Contract"), as well as an agreement with the Corporation and a Master Subcontractor which will assume all of the General Contractor's obligations under the Construction Contract ("Master Subcontract Agreement"); WHEREAS, the Master Subcontractor (and other to-be-determined entities as needed) will indemnify and hold harmless the Corporation for any acts or omissions of the Master Subcontractor or any subcontractor and any acts or omissions of the Corporation except for the Corporation's own gross negligence and intentional acts, and the Corporation will also be indemnified and held harmless for any obligations it incurs under the Construction Contract; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION: 1. THAT the Board authorizes the Corporation to act as General Contractor (or Joint Venturer) for the Project, and authorizes the negotiation, execution and delivery of the Construction Contract and Master Subcontract Agreement for the Project. 2. THAT Dana Burghdoff, General Manager of the Corporation, or Kacey Thomas, Assistant General Manager of the Corporation, or their duly appointed successors, are each authorized to negotiate, execute and deliver the Construction Contract and the Master Subcontract Agreement for and on behalf of the Corporation along with any related documents necessary to implement the Construction Contract or the Master Subcontract Agreement, and each is authorized to extend, modify and amend the Construction Contract or the Master Subcontract Agreement, provided any such extensions, modifications and amendments are within the scope of the Project, and in conformance with the goals and purposes of the Corporation, as amended from time to time. 3. THAT this Resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. Adopted October 28, 2025 FORT WORTH HOUSING FINANCE CORPORATION By: Elizabeth Beck President Attest: Jannette S. Goodall