HomeMy WebLinkAbout26-6380 - City Council - ResolutionA Resolution
RESOLUTION 26-6380
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT
WITH ROYAL CAPITAL GROUP, LLC, OR AN AFFILIATE FOR A
SUBORDINATE FORGIVABLE LOAN IN THE AMOUNT OF ONE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($1,500,000.00) AND EXECUTE
ANY RELATED NECESSARY DOCUMENTS AND TAKE ACTIONS TO
PROVIDE FUNDING FOR THE EVANS AND ROSEDALE
REDEVELOPMENT PROJECT, USING AVAILABLE INTEREST PROCEEDS
APPROPRIATED BY THE CITY COUNCIL
WHEREAS, the Historic Southside neighborhood and the area in and around the
intersections of Evans Avenue and Rosedale Street are integral to the community of the City of
Fort Worth ("City"), and the City has long sought to redevelop the area in a way that reflects its
storied history and importance to the community; and
WHEREAS, the City, the Fort Worth Housing Finance Corporation ("HFC"), and the Fort
Worth Local Development Corporation ("LDC") have collectively amassed a total of thirty-six
parcels of real property in the area having a fair market value of $4,245,553.00 (the "Land"),
undertaken environmental assessment and certain remediation, and pursued rezoning in an effort
to facilitate revitalization and redevelopment; and
WHEREAS, after a lengthy search for a private entity to serve as lead in redeveloping and
revitalizing the area in a respectful manner that is reflective of its history and takes into account
concerns of the area's community and stakeholders and a Request for Expressions of Interest in
2024, Royal Capital Group, LLC ("RCG") was selected as master developer for the Land and
certain other area in and near the historic Evans & Rosedale Urban Village; and
WHEREAS, RCG plans to build a mixed -use development, including affordable housing
financed through utilization of low-income housing tax credits and proceeds of tax-exempt bonds
issued by the Tarrant County Housing Finance Corporation (the "EvRo Project"); and
WHEREAS, the City Council and governing bodies of the corporate entities owning the
Land previously approved sale of the property for the EvRo Project and authorized other actions
in support thereof (M&Cs 24-0934, and 25-0421; LDC Resolution FWLDC-25-08; HFC
Resolutions 2025-04, 2025-20, 2025-21, 2025-22, and 2025-23), including the City authorizing a
forgivable loan of up to $2,500,000.00 from a Pathways to Reducing Obstacles to Housing (PRO
Housing) Grant from the U.S. Department of Housing and Urban Development (M&C 25-1012);
and
WHEREAS, based on the most recent costs estimates from its contractors, RCG has
advised that inclusion of the PRO Housing dollars causes a substantial increase to the project costs
due to the expenses associated with meeting certain federal requirements; and
WHEREAS, at its meeting on August 25, 2026, the City Council was presented with
Informal Report 26-0101 that proposed use of $1,500,000.00 of unrestricted interest revenue from
the City's general fund to provide a forgivable loan to the EvRo Project and at its meeting on
September 15, 2026, appropriated interest funds for that purpose; and
WHEREAS, it is recommended that City Council formally authorize a loan agreement and
related document on comparable terms to the PRO Housing loan with respect to duration, priority,
etc.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS THAT:
1. The City Manager, or his designee, is hereby authorized to execute a loan
agreement with RCG, or an affiliate, to effectuate a subordinate loan made by the City in the
amount of $1,500,000.00 for the EvRo Project, subject to the following terms and conditions: (i)
a loan repayment term of thirty (30) years, (ii) simple interest at a rate of up to six percent (6.0%)
as agreed between the City, RGC (or affiliate), and its lenders and investors, (iii) all interest and
principal payments being payable at maturity, (iv) assignable to the construction lender with prior
consent of the City, (v) forgivable at maturity in the City's discretion; and (vi) assignable to a
subsequent purchaser of the EvRo Project with City consent; and
2. The City Manager, or his designee, is hereby authorized to execute any other
documentation deemed advisable, necessary, desirable, or required to implement the financing
contemplated herein to further the completion of the EvRo Project, including, but not limited to,
authorizing reasonable extensions or similar adjustments, as deemed appropriate in the City
Manager's discretion, to effectuate the intent of the loan and further successful completion of the
EvRo Project; and
This resolution shall be effective from and after its passage by the City Council.
Adopted this September 15, 2026.
ATTEST:
By: v �4,o o•1�d
Jannette S. Goodall, City Secretary 0 v o 0 2 d
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