HomeMy WebLinkAboutOrdinance 21179-03-2014 Ordinance No.2 1 1 79-03-2014
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GRANTS FUND IN THE AMOUNT OF $350,000.00,
FROM AVAILABLE FUNDS, FOR THE PURPOSE OF A FORGIVABLE LOAN TO
PRECISION PROJECTS INTERNATIONAL, LLC FOR THE RENOVATION OF THE
HISTORIC PARKER BROWNE BUILDING LOCATED AT 1212 EAST LANCASTER
AVENUE; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; 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 2013-2014 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in.the Grants
Fund in the amount of$350,000.00, from available funds, for the purpose a forgivable loan to Precision
Projects International, LLC for the renovation of the historic Parker Browne building located at 1212 East
Lancaster Avenue.
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 No. 201952-09-2013 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of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
Assistant City Attorney �AaryvJ. a 6/
ADOPTED AND EFFECTIVE: March 25,2014
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1212 East Lancaster Avenue - COUNCIL DISTRICT 8
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City of Fort Worth, Texas
Mayor and Council Communication
uf,I1N,11111 Y ,
COUNCIL ACTION: Approved on 3/2512014 Ordinance No 21179-03-2014
11 111TWAMM-NION I IWO
DATE: Tuesday, March 25, 2014 REFERENCE NO.: **C-26726
LOG NAME: 17 PARKE RBROWN EU DAG
SUBJECT:
Authorize Expenditure in the Amount of$350,000.00 of Urban Development Action Grant Program Income
in the Form of a Forgivable Loan to Precision Projects International, LLC for the Renovation of the Historic
Parker Browne Building Located at 1212 East Lancaster Avenue, Authorize Execution of a Loan
Agreement and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize an expenditure in the amount of $350,000.00 of Urban Development Action Grant program
income in the form of a forgivable loan to Precision Projects International, LLC for the renovation of the
historic Parker Browne building located at 1212 East Lancaster Avenue;
2. Authorize the City Manager or his designee to execute a Loan Agreement and any related documents
with Precision Projects International, LLC for a five-year loan term beginning on the date of execution,-
3. Authorize the City Manager or his designee to amend the Loan Agreement if necessary to achieve
project goals provided that the amendment is within the scope of the project and in compliance with City
policies and applicable laws and regulations governing the use of federal funds; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Grants Fund in the amount of $350,000.00 from available funds.
DISCUSSION:
Precision Projects International, LLC (PPI) proposes to renovate the historic Parker Browne building
located at 1212 East Lancaster Avenue in the Near Eastside Urban Village for office and retail space, Got
You Covered Workwear and Uniforms which is currently located at 1200 East Lancaster Avenue will
relocate its retail operations to the Parker Browne building along with Marketocracy, Inc., an investment
firm. Cheyenne Construction Company will relocate its offices to the former Got You Covered
workspace, In addition to the renovation, PPI will collaborate with the Presbyterian Night Shelter to
operate a training program for the homeless. The total development cost will be approximately
$2,864,192.00.
On March 4, 2014, Staff presented a recommendation to the Housing and Economic Development
Committee to provide $350,000.00 in Urban Development Action Grant (UDAG) program income in the
form of a forgivable loan to PPI for the renovation. UDAG program income funds are rental revenues
received from the lease of the City-owned parking garage under General Worth Square (City Secretary
Contract No. 11085 as amended and assigned). UDAG funds must be used for projects that meet certain
Community Development Block Grant (CDBG) program requirements, including use in a CDBG-eligible
area, be a CDBG economic development project and include private investment. Annual revenue from
Logname: 17PARKERBROViNEUDAG Pagel of
the parking garage is approximately $100,000.00 and after funding this loan, the parking garage rental
revenues account will have a remaining balance of approximately $150,000.00. Staff has reviewed the
project and has determined that it meets federal requirements for use of UDAG program income.
Staff recommends providing a forgivable loan of $350,000.00 of UDAG program income to the Developer
on the following terms:
Developer Commitments:
1. Invest a minimum amount of$2,100,000.00 in real property improvements by December 31, 2015;
2. Obtain final Certificate of Occupancy (CO) by March 31, 2016;
3. Make reasonable efforts create 20 new jobs by the end of the five year loan term', and
4. Operate a joint training program for the homeless for a minimum of one year.
City Commitments:
1. Five year loan at zero percent interest evidenced by a note and secured by a deed of trust against
the property;
2. Payment of$250,000.00 of loan funds two years after receipt of CO; and
3. Payment of $100,000.00 of loan funds upon satisfactory evidence of meeting the one year training
program requirement.
The loan will be forgiven at the end of the five year loan term as long as PPI has met all the terms of the
Loan Agreement. The Deed of Trust will secure PPI's performance of the loan conditions as well as
repayment of the loan funds if the loan terms are not met. If PPI does not meet its commitments, it must
repay the loan within 24 months of the end of the loan term, which will be extended accordingly.
This project will accomplish the public purpose of furthering the United States Department of Housing and
Urban Development's national objective of promoting activities that benefit low- and moderate-income
persons.
The project is located in COUNCIL DISTRICT 8, Mapsco 778.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations,
and adoption of the attached appropriations ordinance, funds will be available in the current operating
budget, as appropriated, of the Grants Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
GR76 442216 005206948000 $350,000.00 GR76 539120 005206948010 $121,856.78
GR76 539120 017206948120 $350,000.00 GR76 536010 005206948010 $5,240.51
GR76 539120 017206948120 $222,902.71
CERTIFICATIONS:
Submitted for City Mananer's Office by: Fernando Costa (6122)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Avis F. Chaisson (6342)
Logname: 17PAR-KERBROWNEI.JDAG Page 2 of 3
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