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FUNDING AGREEMENT
Near Southside Medical District Street Repair & Reconstruction Program
PARTNERS:
City of Fort Worth, Tax Increment Reinvestment Zone #4 (Southside TIF) &
Fort Worth South, Inc.
This Funding Agreement ("Agreement") outlines terms for the Near Southside Medical District Street Repair
and Reconstruction Program ("Program") and the project partners. The multiyear Program is to be jointly
funded through the City of Fort Worth's 2014 Capital Improvement Program ("CIP") and an authorized
contribution from Tax Increment Reinvestment Zone #4. Program administration will be managed by the City
of Fort Worth's Transportation & Public Works Department in close collaboration with Fort Worth South, Inc.,
administrator of the Southside TIF. Roles and responsibilities are defined within this Agreement.
I. PROJECT BACKGROUND
Fort Worth's Near Southside Medical District serves as the city's second largest employment center, with
approximately 30,000 workers and an estimated $5.5 billion annual economic impact to Tarrant County and
$4.2 billion to Fort Worth. The district is home to Fort Worth's five major hospitals, dozens of additional
healthcare facilities and clinics, and a wide range of other major businesses, including Dannon, Justin Brands,
Williamson-Dickie, Vandervoorts, Rahr & Sons, and more.
Fort Worth South, Inc. ("FWSI") is the non-profit redevelopment corporation working since 1995 to revitalize the
Near Southside and its Medical District. By the mid-1990s, the area had suffered decades of disinvestment,
leading to blighted conditions in many parts of the district. A collaborative effort among community leaders, the
City of Fort Worth, and the major hospitals led to FWSI's creation. FWSI works closely with the City and many
other partners to implement projects and programs that improve conditions within the Near Southside.
Tax Increment Reinvestment Zone #4 ("Southside TIF") is the most significant mechanism for promoting new
investment and economic development in the district. In 1997, the City worked with the other taxing entities to
create the Southside TIF as a way to fund public infrastructure improvements that help foster private
redevelopment. FWSI administers the Southside TIF through a contract with the City. The Southside TIF has
been a primary factor in the district's dramatic turnaround over recent years. Completed TIF-funded projects
are responsible for much of the visible transformation seen throughout the district.
Despite this progress, significant infrastructure challenges remain, and poor street conditions rank as the
highest priority to be addressed so that the redevelopment momentum may continue. The effects of deferred
street maintenance are visible throughout the district, and those poor street conditions impede private
investment.
The City's 2014 Capital Improvement Program (CIP) includes funding for street repair and reconstruction within
older areas, but street repair needs far exceed CIP funding ability. In response, the City and FWSI explored an
approach to leverage CIP funds for greater impact. The recommended funding scenario splits Program funding
50/50 between the City's CIP and the Southside TIF. In addition to the funding partnership, a management
and implementation partnership between the City and FWSI will allow for a tailored and efficient approach to
these street projects.
The Program will continue a successful City/FWSI partnership. Over the past seven years, the partners have
collaborated to design and construct context -sensitive "complete street" projects that work well for all users
while also supporting mixed -use, pedestrian -oriented redevelopment projects. The Near Southside
Development Standards & Guidelines include context -sensitive street standards that will advance the goals of
an efficient circulation network and a walkable urban environment. The street repair and reconstruction
program provides a major opportunity to advance this redevelopment vision and maximize the effectiveness of
Near Southside streets.
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II. SCOPE OF WORK
The Program scope of work includes:
• Identifying street projects and finalizing boundaries and general scope of repair/reconstruction
• Finalizing cost estimates and prioritized schedule of completion
• Procuring design services
• Managing the design of street repair and reconstruction projects
• Managing the bid process for construction
• Construction management
• Inspection
111. ESTIMATED PROJECT COST BY FY
FY14 $ 0.2 million
FY15 $ 2.8 million
FY16 $ 3.0 million
FY17 $ 2.0 million
FY18 $ 2.0 million
TOTAL: $10.0 million
IV. TOTAL PROJECT FUNDING
City of Fort Worth (2014 Transportation Grant Matches) $ 4.0 million
City of Fort Worth (2014 Street Improvements: CD 9) $ 1.0 million
Southside TIF $ 5.0 million
TOTAL $10.0 million
V. IMPLEMENTATION ROLES AND RESPONSIBILITIES
The Program will be jointly implemented by the City of Fort Worth and Fort Worth South, Inc., working in close
collaboration and in accordance with the following outline of roles and responsibilities. Throughout the
Program, the City and FWSI shall maintain regular communications regarding all aspects so as to complete
projects on schedule and consistent with circulation and urban design goals.
Task 1: Identifying street projects and finalizing boundaries and general scope of
repair/reconstruction
• FWSI submits proposed list and map of projects to City. Proposed list is based on field
survey, review of City's assessment of pavement conditions, economic development
impacts, and preliminary cost estimates.
• City and FWSI meet to review project list in detail. The partners identify those projects
requiring standard repair (rehabilitation projects) and those that require a more tailored
approach to design and improvements (reconstruction projects).
• City and FWSI identify streets suitable for on-street parking, bicycle facilities (in accordance
with the Bike Fort Worth plan) and context-sensitive pedestrian treatments.
• City reviews boundaries and cost estimates of proposed projects.
• Partners review and agree upon any changes to list and map.
Task 2: Finalizing cost estimates and prioritized schedule of completion
• City produces final list of projects and cost estimates, categorized into rehabilitation and
reconstruction projects.
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• FWSI reviews both lists and recommends prioritized schedule for completion of projects
over the four-year life of the Program.
• City and FWSI agree upon final lists and schedules.
• The Partners reserve the ability to add projects from a contingency list agreed upon by the
Partners for design or construction within the $10M Program.
Task 3: Procuring design services
• For rehabilitation projects, the City shall complete design work in house or shall utilize
outside consultants as needed to supplement in house resources.
• For reconstruction projects, FWSI shall procure an outside design consultant after working in
close partnership with the City to evaluate consultants. Selected consultants shall be well
qualified and experienced on context-sensitive urban street projects.
• For design and engineering work, FWSI shall invoice the Southside TIF for funds to pay
consultant invoices and shall manage all design contract accounting.
• For survey work outside of contract design services, the City may use an in-house surveyor
or an outside surveyor as necessary to coordinate between adjacent developer projects and
projects within this Program over the life of this four year Program.
Task 4: Managing the design of street repair and reconstruction projects
• The City shall manage any required design work for rehabilitation projects, and shall work
with FWSI on any issues related to design, schedule, or budget.
• For reconstruction projects, FWSI and the City shall establish a small project management
committee that includes the City's director of capital projects, a designated program
manager, FWSI's Planning Director, and any other staff members and/or stakeholders
needed to address pertinent design issues.
• For reconstruction projects, FWSI and the City shall explore all design elements, such as
streetscape and traffic calming features, that could contribute to the most appropriate
context-sensitive design solution for that street.
• The City shall manage the public outreach and public meetings in accordance with their CIP
public involvement process.
• FWSI shall assist in helping publicize public meetings, and shall also help facilitate
discussions with individual stakeholders and property owners as necessary to address
pertinent design issues.
Task 5: Managing the bid process for construction
• The City shall manage the bid process for construction, upon agreement with FWSI on the
appropriate procurement strategy.
• If there are benefits to an alternative approach, such as construction manager at-risk, the
City and FWSI shall evaluate any advantages and shall reach agreement on an approach
most likely to lead to the successful and timely completion of a project or projects.
• The City shall invoice the Southside TIF for the lump sum total of the TIF's share of a
construction contract upon the City Council's authorization to execute those contracts. The
City shall then manage the accounting for all construction contracts.
Task 6: Construction management
• The City shall manage the construction for all projects, and shall keep FWSI updated on
construction progress and any unanticipated issues.
• The City shall manage the accounting for all construction contracts.
Task 7: Inspection
• The City shall inspect all projects and shall keep FWSI updated on any unanticipated issues.
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VI. PRELIMINARY PROJECT SCHEDULE
The general timeframe for the design and construction of all Program streets is 2014-2018. The City and
FWSI have developed an annualized schedule of projects, based on a review of development activity,
pavement conditions, project grouping by area, annual funding availability, and other relevant factors. The
proposed construction plan and schedule is as follows:
GROUP A (FY14-15)
ROAD LIMITS Technique
College Ave W. Vickery— Pennsylvania Ave. 1- Reconstruction
Jarvis College Ave. — Lipscomb St. 1- Reconstruction
Jennings Ave. Rosedale St. — Magnolia Ave. 2- Rehabilitation
Oleander St.* Jennings Ave. —Grainger St. 2- Rehabilitation
Leuda St.* Main St. — St. Louis Ave. 2- Rehabilitation
Galveston Ave. Cannon St. —Terrell Ave. 2- Rehabilitation
Vickery Blvd. Galveston St. — S. Main St. 2- Rehabilitation
Lipscomb St. Jarvis St. — Pennsylvania Ave. 2- Rehabilitation
May St. Magnolia Ave. — Feliks Gwozdz PI. 2- Rehabilitation
Petersmith St. Fulton St. — Hemphill St. 2- Rehabilitation
GROUP B (FY16)
ROAD LIMITS Technique
Alston Ave. Magnolia Ave. — Morphy St. 2- Rehabilitation
College Ave. Magnolia Ave. — Morphy St. 2- Rehabilitation
Vickery Blvd. S. Main St. — IH35W SB Frontage Road 2- Rehabilitation
Bryan St. Vickery Blvd. — Broadway Ave. 2- Rehabilitation
Broadway Ave. S. Main St. — Calhoun St. 1- Reconstruction
Daggett Ave S. Main St. —Calhoun St. 1- Reconstruction
Calhoun St. Vickery Blvd. — Broadway Ave. 2- Rehabilitation
Washington Ave. Rosedale St. — Magnolia Ave. 1- Reconstruction
May St. Cannon St. — Dead End 50' north of Hattie St. 2- Rehabilitation
Hattie St. May St. —Jennings Ave. 2- Rehabilitation
Daggett Ave. Henderson St. — Hemphill St. 2- Rehabilitation
Broadway Ave. Henderson St. — Hemphill St. 2- Rehabilitation
Leuda St.* Jennings Ave. — Hemphill St. 2- Rehabilitation
Grainger St.* Pennsylvania Ave. - Leuda St. 2- Rehabilitation
Cannon St. Jennings Ave. — Hemphill St. 2- Rehabilitation
Tucker St. College Ave. — Lipscomb St. 2- Rehabilitation
Rami Trail Henderson St. —Adam St. 1- Design Only Phase
GROUP C (FY17)
ROAD LIMITS Technique
Daggett Ave. * S. Main St. —Jennings Ave. 2- Rehabilitation
Henderson St.* Myrtle St. —Allen Ave. 2- Rehabilitation
Oleander St.* St. Louis Ave. —S. Main St. 2- Rehabilitation
St. Louis Ave. Rosedale St. — Magnolia Ave. 2- Rehabilitation
Oak Grove St. Rosedale St. — Magnolia Ave. 2- Rehabilitation
Broadway Ave. Hemphill St. —Jennings Ave. 2- Rehabilitation
Petersmith St. Hemphill St. —Jennings Ave. 2- Rehabilitation
Adams St. Rosedale St. — Dashwood St. 2- Rehabilitation
Washington Ave. Rosedale St. — Dashwood St. 2- Rehabilitation
Cannon St. Hemphill St. — Lipscomb St. 2- Rehabilitation
May St. Rosedale St. — Oleander St. 2- Rehabilitation
Oleander St.* 8th Ave. —9"Ave. 2- Rehabilitation
4
Hurley
GROUP D (FY18)
ROAD
Enderly
9th Ave.
Annie St
Bryan Ave.
Calhoun St
Cannon St
Crawford St.
Dashwood St.
Leuda St
Petersmith St
Petersmith St
Tucker St
Rosedale St. — Magnolia Ave.
LIMITS
Allen Ave. — Myrtle
P ennsylvania Ave. — Cooper St
S Main St — Calhoun St
Broadway Ave. — Rosedale St.
P etersmith St — Cul-de-Sac south of Annie St
S. Main St — Crawford St
P etersmith St — Hattie St
S Main St. — Crawford St
S Main St — Crawford St
S Main St — Bryan Ave.
Crawford St — Calhoun St
S Main St — Calhoun St
* 2014 CIP — Identified Street Improvement Projects
2- Rehabilitation
Technique
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
2- Rehabilitation
This agreement authorizes the City and FWSI to work together to adjust and modify the list and schedules of
projects in response to changing conditions or factors, provided that both entities agree to those modifications.
VII. SIGNATURES
CITY OF FORT WORTH
cni,24,4144LA
Fernando Costa
Assistant City Manager
Date: 8/! SA4
ATTEST:
Mary J. Kayser
City Secretary
APPROVAL RECOMMENDED BY:
•
CA,
Douglas 1/\/1 Wiersig, P.E.
Director
Transportation & Public Works Department
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APPROVED AS TO FORM & LEGALITY
Douglas W. Black
Assistant City Attorney
FORT WORTH SOUTH, INC.
Paul Paine
President
Date: OkAil
Q-120(‘-s‘4,-;30 A/EL: 2_ - cqs
M&C No. C. 61,96
Date:
fFFICI - REcnwil
SECL 11 cW
5
City of Fort Worth, Texas
Mayor and Council Communication
..........
COUNCIL ACTION: Approved on 8/5/2014 Resoltuion No. 4342-08-2014 & Ordiance No.
21364-08-2014
DATE: Tuesday, August 05, 2014 REFERENCE NO.: C-26906
LOG NAME: 20CD9 STREET REPAIR AND RECONSTRUCTION PROGRAM
SUBJECT:
Adopt Resolution Authorizing Execution of a Funding Agreement with Fort Worth South, Inc., in the Amount
of$10,000,000.00 for Street Repair and Reconstruction Program, Authorize Acceptance of Funds in an
Amount Up to $5,000,000.00 from Tax Increment Reinvestment Zone No. 4 to be Matched by Funds in an
Amount Up to $5,000,000.00 from the 2014 Bond Program and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution authorizing the execution of a Funding Agreement with Fort Worth South,
Inc., in the amount of$10,000,000.00 for Street Repair and Reconstruction Program;
2. Authorize acceptance in the amount up to $5,000,000.00 from Tax Increment Reinvestment Zone No.
4; and
3. Adopt the attached Appropriation Ordinance increasing the estimated receipts and appropriations in
the Specially Funded Capital Projects Fund in the amount up to $5,000,000.00, upon receipt of funds, for
Council District 9 Street Repair and Reconstruction Program.
DISCUSSION:
The attached draft Funding Agreement with Fort Worth South, Inc., summarizes the background, roles,
responsibilities and financial contributions of Fort Worth South, Inc., and the City of Fort Worth for Council
District 9 Street Repair and Reconstruction Program (Program). The Program leverages funding in the
amount up to $5,000,000.00 from the Tax Increment Reinvestment Zone No. 4 (Southside TIF) over the
next four years. The City will commit up to $5,000,000.00 as an equal funding match. The Program
provides a major opportunity to leverage funds under a 50/50 funding partnership that will address needed
street improvements by doubling the amount of street repairs and improvements and facilitate
redevelopment and revitalization in identified areas of the Near Southside District.
The City of Fort Worth will match funds in an amount up to $5,000,000.00. The 2014 Bond Program
includes Street Improvements Funds for street construction, reconstruction and rehabilitation within
Council District 9. Multiple streets in Council District 9 are identified in the 2014 Bond Program and listed
in the draft Funding Agreement for improvements in the amount of$1,000,000.00. The remaining City
funding amount, up to $4,000,000.00, is from the $6.4 million included in the 2014 Bond Program for
transportation grant matches. Upon approval of this M&C, $2.4 million will remain in the 2014 Bond
Program for other transportation grant matches.
E
Logname: 20CD9 STREET REPAIR AND RECONSTRUCTION PROGRAM Page I of 2
Some of the expenses associated with these projects are included in the 2014 Bond Program. Available
resources within the General Fund will be used to provide interim financing for the expenditures
associated with this project until debt is issued. Once debt associated with the projects is sold, bond
proceeds will reimburse the General Fund, in accordance with the statement expressing official intent to
reimburse that was adopted as part of the ordinance canvassing the bond election (Ordinance 21241-05-
2014).
This program is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the General Fund to pay
expenses which will be incurred on this contract until reimbursement can occur from the issuance of public
securities and that upon approval of the above recommendations and adoption of the attached
appropriation ordinance, funds will be available in the current capital budget, as appropriated, of the
Specially Funded Capital Projects Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
3) C291 488100 209210237583 $1.500.000.00 2) GS87 539120 002704097000 $5.000.000.00
3) C291 488100 209210238783 $1.500.000.00
3) C291 488100 209210238883 $1,000,000.00
3) C291 488100 209210238983 $1,000,000.00
3) C291 541200 209210237583 $1,500,000.00
3) C291 541200 209210238783 $1.500.000.00
3) C291 541200 209210238883 $1,000.000.00
3) C291 541200 209210238983 $1,000.000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Douglas W. Wiersig (7801)
Additional Information Contact: Jim Walker (8009)
ATTACHMENTS
1. CD9 STREET PROGRAM AO(Rev7 31 14)3.doc (Public)
2. Funding Agreement Street Repair Reconstruction.pdf (CFW Internal)
3. Map Council District 9.pdf (Public)
4. Resolution Council District 9 2014 Street Repair Program(Revised 7 31 14).docx (Public)
Logname: 20CD9 STREET REPAIR AND RECONSTRUCTION PROGRAM Page 2 of 2
i
A Resolution +
NO. 4342-08-2014
AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT
WITH FORT WORTH SOUTH INC. IN THE AMOUNT OF $10,000,000.00 i
FOR COUNCIL DISTRICT 9 STREET REPAIR AND
RECONSTRUCTION PROGRAM
WHEREAS, the Fort Worth South Near Southside Medical District serves as the city's second j
largest employment center, with approximately 30,000 workers and an estimated $5.5 billion annual
economic impact to Tarrant County and$4.2 billion to Fort Worth; and
WHEREAS, Fort Worth South, Inc. ("FWSI") is the non-profit redevelopment corporation
working since 1995 to revitalize the Near Southside and its Medical District; and
WHEREAS, FWSI administers the Tax Increment Reinvestment Zone No. 4 ("Southside TIF") j
to promote new investment and economic development in the Southside TIF district through a
contract with the City; and
WHEREAS,the City of Fort Worth desires to enter into a funding agreement with FWSI in the
amount-of $10,000,000.00 to implement a Street Repair and Reconstruction Program ("Program")
within the district; and
WHEREAS, the Program leverages funding in an amount up to $5,000,000.00 from the
Southside TIF; and
WHEREAS,the City will commit up to $5,000,000.00 as an equal match from the 2014 Capital
Improvement Program("2014 CIP"); and
WHEREAS, the 2014 CIP includes $1,000,000.00 in Street Improvement Funds for Council
District 9 street construction, reconstruction and rehabilitation of streets, and $4,000,000.00 in
Transportation Improvement Funds - Transportation Grant Matches for an amount of$5,000.000.00;
and I�
WHEREAS, the Street Repair and Reconstruction Program leverages funding in an amount up
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to $5,000,000.00 under a 50/50 partnership that will address deteriorating streets through construction,
reconstruction and rehabilitation improvements that will facilitate redevelopment and revitalization in
Fort Worth's Near Southside District;
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ORT�W4 T� �
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Resolution No.4342-08-2014
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE l
CITY OF FORT WORTH, TEXAS:
The City Manager is hereby authorized to execute a Funding Agreement with Fort Worth I
South, Inc. in the amount of$10,000,000.00 to implement a Street Repair and Reconstruction Program
in Council District 9
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Adopted this 5th day of August, 2012.
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ATTEST: part 0 0,0*
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By: _ _ — —
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Mary Kayse ^ity Secretary
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Copyright 2014 City of Fort Worth. Unauthorized reproduction is a violation of appkcable laws. This product is for informational
purposes and may not have been prepared for or be suitable for legal, engineering, or surveying purposes. It does not represent
an on -the -ground survey and represents only the approxirnate relative location of property boundaries.
The Cty of Fort INorth assumes no responsbirty for the accuracy of said data.
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