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Home My WebLink AboutContract 44670-A1 CITY SECRETAW CONTRACT NO. u4le-1 D ^ Ak FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 44670 WHEREAS, on July 30, 2013 the City of Fort Worth ("City") and North Texas Area Community Health Centers, Inc. ("Developer") made and entered into City Secretary Contract No. 44670 (the "Contract) as authorized by the City Council in M&C C-24766 and C-26220 adopted on March 8, 2011 and May 7, 2013 respectively; WHEREAS,City receives grant monies from the United States Department of Housing and Urban Development through the Community Development Block Grant("CDBG")Program, Catalog of Federal Domestic Assistance No. 14.218; WHEREAS, a national objective of the CDBG Program is to benefit low and moderate income families in accordance with 24 CFR Part 570.200 (a)(2); WHEREAS,the purpose of the Contract was to provide CDBG Funds in the form of a subordinate forgivable loan to the Developer for the finish out of the building located at 2909 Mitchell Boulevard as the permanent location of the Southeast Community Health Center which will benefit low- and very low- income City citizens; WHEREAS, the Contract inadvertently provided $170,226.00 of funding, but the combined funding of M&C C-24766 ($67,605.00) and M&C C-26220 ($102,626.00) totals $170,231.00 and the amount of funding in the Contract should be amended to reflect the amount appropriated in the M&Cs; WHEREAS, Developer also requested an amendment to allow for additional Client Documentation and to include new provisions regarding the federal regulations concerning the protected health information of the clinic's patients; and WHEREAS, it is the mutual desire of City and Developer to amend the Contract to meet Contract objectives. NOW, THEREFORE, City and Developer hereby agree to amend the Contract as follows: I. Section 2. DEFINITIONS is amended to be and read as follows by substituting the following definitions: `CDBG Eligible Client means a client whose annual income adjusted for family size does not exceed 80% of AMI using the most current HUD Income Guidelines and Technical Guidance for Determining Income and Allowances verified by Client Documentation." "Client Documentation means any documentation allowed under the definition of annual income in 24 CFR Part 5.609 sufficient to show that a client is a CDBG Eligible Client. Client Documentation may include but is not limited to pay check stubs, Social Security statements, W- 2 forms,payments in lieu of earnings(unemployment) and/or th Form of Income Self-Certification." OFFICIAL RECORD CITY SECRETARY Amendment No 1 to CSC No.44670 FT.WORTH,TX Page 1 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health rs, nc. 2909 Mitchell Boulevard Rev.08/15/2014 RECEIVED SEP 19 Y014 II. Section 4.1 Provide CDBG Funds is amended to be and read as follows" "4.1 Provide CDBG Funds. City shall provide up to One Hundred Seventy Thousand Two Hundred Thirty One and No/100 Dollars ($170,231.00) of CDBG Funds in the form of a forgivable deferred payment loan to Developer to complete the construction of the Required Improvements under the terms and conditions described herein ("Loan")." Section 7.1.1 is amended to be and read as follows by adding the following first sentence: "Developer must verify new client's income eligibility with Client Documentation." Section 8.3 Monitorinp-is amended to be and read as follows by adding the following new Sections: "8.3.4 City acknowledges that Developer is subject to the Administrative Simplification requirements of the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") and the regulations promulgated thereunder, including the Standards for Privacy of Individually Identifiable Health Information ("Privacy Regulations") and the Security Standards for Electronic Protected Health Information ("Security Regulations"), 45 CFR Parts 160, 162 and 164 (together, the"Privacy and Security Regulations"), and by the provisions of Title XIII of the American Recovery and Reinvestment Act of 2009 (the "HITECH Act"). To the extent that City's monitoring requires the disclosure of any patient information that might be protected health information under HIPAA, the Privacy and Security Regulations or the Act, including but not limited to information required in Exhibit G — Client Demographic Data Report that identifies an individual or could identify an individual, City agrees that it shall only use such information to the extent necessary or appropriate to perform its monitoring and review responsibilities under the CDBG Regulations or City auditing requirements in Section 9.4.2. City further agrees that (i) it shall not release, transfer, provide access to or divulge any such information outside of City's internal operations to any individuals other than its employees or HUD auditors as required by CDBG Regulations or otherwise required by law; (ii) it shall implement and maintain appropriate safeguards to prevent the use or disclosure of any such information not in compliance with HIPAA, the Privacy and Security Regulations and the HITECH Act; and (iii) it shall report to Developer any non-permitted use or security incident regarding such information within 10 business days of the date City becomes aware of such unauthorized use. 8.3.5 City agrees to execute a separate Protected Health Information Disclosure Agreement in accordance with HIPAA requirements to memorialize its handling of protected health information in the course of City's monitoring." Amendment No 1 to CSC No.44670 Page 2 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 III. This Amendment shall be effectives as of July 30, 2013, the Effective Date of the Contract. IV. Exhibit "A-1" — 2013 HUD Income Limits, Exhibit "B" — Budget and Exhibit "C" — Construction Schedule attached to the Contract are deleted and replaced with the attached Exhibit"A- 199 - 2014 HUD Income Limits Revised 08/2014, Exhibit "B"—Budget Revised 08/2014 and Exhibit "C"—Construction Schedule Revised 08/2014, all of which are incorporated therein for all purposes. The attached Exhibit "J" - Form of Income Self-Certification is added to the Contract and incorporated therein for all purposes. The list of Exhibits attached to the Contract (which was inadvertently left off of the official City Secretary Contract) is deleted and replaced with the attached list of Exhibits Revised 08/2014 and incorporated therein for all purposes. V. All terms and conditions of the Contract not amended herein remain unaffected and in full force and effect, are binding on the Parties and are hereby ratified by the Parties. Capitalized terms not defined herein shall have meanings assigned to them in the Contract. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Amendment No 1 to CSC No.44670 Page 3 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 ACCEPTED AND AGREED:. ATTEST: CITY OF FORT WORTH �441YT�0%,' BY � City Secretary y Fernando Costa Assistant City Manager M&C: C-24766 Date: 3/8/2011 i oO M&C: C-26220 Date: 5/7/2013 APPROVED AS TO FORM AN LEGALITY: Wig° t�0 O OQ4 Vicki S. Ganske, Senior Assistant City Attorney ° °°°°� rEX A DEVELOPER: NORTH TEXAS AREA COMMUNITY HEALTH CENTER, INC. By: -1 Dr. Elizabeth trevino, CEO STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me o /� , 2014 by Fernando Costa, Assistant City Manager of the City of Fort Wo h, on behalf th City of ort Worth. EvoNln DANIELS Notary Public, State of Texas Notary Public,State o f Texas My commission Expires �: +P JUDY 10, 2017 �''9repFia: �'rnnna�. STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on 4t , -� �� , 2014 by Dr. Elizabeth Trevino, the Chief Executive Officer of North Texas Area qmmunity Health Centers, Inc., a Texas non- profit corporation, on behalf of said corporation. WCHELLE J HILBERT 14 pn My Cmlulon E10" Notary Pub i , S of Texas Date: June S.2016 rg sm Nwv.08/15/2014 Amendment No 1 to CSC No.44670 Page 4 CDBG CONSTRUCTION CONTRACT-North Texas Area Community Hea 2909 Mitchell Boulevard EXHIBITS REVISED 08/2014: EXHIBIT "A" -PROJECT SUMMARY EXHIBIT "A-1" -2014 HUD INCOME LIMITS EXHIBIT "A-2" - ENVIRONMENTAL MITIGATION ACTION EXHIBIT "B" -BUDGET EXHIBIT "C" -CONSTRUCTION SCHEDULE EXHIBIT "D" -AUDIT REQUIREMENTS EXHIBIT "E" -LOAN DOCUMENTS EXHIBIT "F" -REIMBURSEMENT FORMS EXHIBIT "G" -CLIENT DEMOGRAPHIC REPORT EXHIBIT "H" -FEDERAL LABOR STANDARDS PROVISIONS /DAVIS-BACON REQUIREMENTS EXHIBIT "I" -SECTION 3 REPORTING FORMS EXHIBIT "J" -FORM OF INCOME SELF-CERTIFICATION Amendment No 1 to CSC No.44670 Page 5 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 EXHIBIT "A-1" 2014 HUD Income Limits Revised 08/2014 2014 Median Family Income- Fort Worth/Arlington, TX* 1 Person 2 Persons 3 Persons 4 Persons 5 Persons 6 Persons 7 Persons 8 Persons 30%AMI $13,850 $15,800 $19,790 $23,850 $27,910 $31,970 $36,030 $40,090 50%AMI $23,050 $26,350 $29,650 $32,900 $35,550 $38,200 $40,800 $43,450 800/,AMI $36,900 1 $42,150 1 $47,400 1 $52,650 1 $56,900 1 $61,100 $65,300 1 $69,500 * Income Limits are established and published at least annually by HUD Amendment No 1 to CSC No.44670 Page 6 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 EXHIBIT "B" BUDGET Revised 08/2014 NORTH TEXAS AREA COMMUNITY HEALTH CENTERS, INC. SOURCES AND USES Development Name: Southeast Communi Health Center Permanent Priority Construction or Rehab. Loan Stage Financing Source# Funding Description of Lien Loan Stage Amt. Amount Participants 1 Conventional Loan 2 Conventional Loan/FHA Conventional Loan/Letter of 3 Credit 4 HOME 5 Housing Trust Fund 6 CDBG 7 Mortgage Revenue Bonds Historic Tax Credit 8 Syndication Proceeds 9 USDA/TXRD Loan(s) 10 Other Federal Loan or Grant 11 Other State Loan or Grant Local Government Loan or City of Fort 12 Grant 1 $170,231.00 Worth 13 Private Loan or Grant Capital 14 Cash Equity $306,590.00 Contributions In-Kind Equity/Deferred 15 Developer Fee TOTAL SOURCES OF FUNDS TOTAL USES OF FUNDS $478,816.00 CDBG Funds Budget Flooring/Mechanical/Trim $50,000.00 Sheet Rock/Interior Trim/Paint $100,231.00 Final Punch List $20,000.00 TOTAL $170,231.00 Amendment No 1 to CSC No.44670 Page 7 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 EXHIBIT "C" CONSTRUCTION SCHEDULE Revised 08/2014 NORTH TEXAS AREA COMMUNITY HEALTH CENTERS, INC. Activity CDBG Funds PHASE I ACTIVITIES: Contract signed $0 Pre-Development Soft Costs ■ Pre-Construction Activities ■ Project Planning Activities ■ Legal Fees ■ Architectural and Engineering Fees ■ Appraisal Fees ■ Loan Application Fees PHASE I COMPLETE by:July 31,2013 ■ Sheetrock PHASE II ACTIVITIES: Electrical $100,231.00 Interior Trim/Paint ■ Interior Finishes Contractor/subcontractor/vendor searches under the Federal System for Award PHASE II COMPLETE by: Management(www.sam.Eov)must be submitted November 15,2013 prior to any reimbursement under this Phase. $100,231.00 First Payment" Hard Construction Costs PHASE III ACTIVITIES: ■ Flooring $25,000.00 • Mechanical • Final Trim and Fixtures $25,000.00 Contractor/subcontractor/vendor searches under the PHASE III COMPLETED by: Federal System for Award Management(www.sam.aov) must be submitted prior to any reimbursement under this Decemberl,2013 Phase. $50,000.00* Second Payment" • Punch List/Final Inspections by HED FINAL PAYMENT PHASE Inspectors $20,000.00* • Construction Completed FINAL PAYMENT PHASE COMPLETED Final Payment** $20,000.00* By:December 31 2013 TOTAL CDBG FUNDS $170,231.00* *Developer will be reimbursed for eligible expenses only. All amounts are estimates and are subject to change. **Developer must submit Reimbursement Requests and Complete Documentation to City within 60 days from the deadlines above in order to be reimbursed. Failure to timely submit Reimbursement Requests and Complete Documentation along with any required reports shall be an event of default. Amendment No 1 to CSC No.44670 Page 8 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 EXHIBIT "J" FORM OF INCOME SELF-CERTIFICATION NORTH TEXAS AREA COMMUNITY HEALTH CENTERS, INC. North Texas Area Conanaity Health Centers,Inc. CERTFICATION OF INCOME STATEIrIENT Patient Name: Cored Address: Phone City and Zip: List ALL Hom told '-kieuiLm and hrcame (zrWmE, Patient aura Fzst Age lklondiy Somce of Income SS TONAL NL WM CF FAMMY atoms spouse,chit.elcy Total Crass Aural HomeboH Inca®e: (Chadmemadhgen This 1chnnm im 6$egoffed.fff Faded Rtpats Pu uses 1 a MAIE b. WMTE [1 BLACXAFRX"AMMWAN Q BLACTIAI�BICAAASQ G1Nd<R�PE ❑FEMALE ❑"EMCA DMUNtALAW"NATIVE ❑ASUN ❑"EKWANIA IAMALASKANNAII EARHT£ ❑AMAN&%WTE ❑NATIVE ELAWALLANOTHERpACDTCISLANDER ❑BALANCEOTHEIL ❑AMBLICANIN-DLANr ALASKANNATNE&BLkCXAFRICANAMERrAN c E[ED A Y i TABLED c 5�BMOFROD�DAFEN[ALP �❑Nw4T1wmw ❑NO ❑No Ca fi5cation: I oetdy that to mix=tion I an pwudmg z tnr and could be srbject to tiemkation at my t mw by a dwd party- I also aclmvuu k* that fie paowmn of fik iu5rmatioa cold lem me abject ID the of Fedeal, State mrd bcal lase. S*ahze of Pa*WLeaal tuardim Date WARN[NG, TnU 18,SWMN 1001 OF EE U.S.COARSTAIMS 71 IT A PSSON a GMXV OFA MONY FOR KK0Vjp(GLY AND REZPIGLY uA11%G FALSE ORFBAMULEfr STA EMEWTS TOMW DEPAl TIMiT OFTIK OMM STATES GOVERNMENT. For use by agawy staff. Household Size: Gma Aural hwmw. HamehoH hz=w Ikit- Medical Record Number Is the P36W Ober Ioca®e° Yes No Peron M *De a dmtion_ FOIE_.Address,irrmw ammntr and wwrees for AU household ambers are required Amendment No 1 to CSC No.44670 Page 9 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 North Texas Area Community Health Centers,Inc. CERTIFICACbN DE DECUMACION DE INGRESOS Nombw del Pacieate: Dire n de Atbuabb& Tewhoo: CwAnd y Codgp Postal- Apelhdo Nombre Edad Ingreso Ongen de InVesm biensual •TOTAL NOD DE SUEMERM DEL HOGAR amdoaaa UML lSpa K91 ARM et) Total Affial de Ingreum del hogar: *'D1t RMAC16N PE LSONAL:(Sdea O@ tim m aaa i-]-. Eau adx=3in a repaWap *I C-obm o hdml.) ❑MASCMN0 b-❑BLANW ❑NEGWAFRXAM AMMCAM ❑❑NFX'sMAFFJ CANO A�➢CAtiO A BLANCO ❑F�IISO ❑D M ANOMKANGWATIV70 DE ALASKA ❑ASIATICO ❑DOIO AMEMANGWAn O DE ALASKA a BLANCD ❑ASIATLOD a BLANCO ❑NATIV*O HAWAMNOOM DE LAS ISIAS PACNICAS ❑BaIANCE-azaD ❑DMro AMEUCAVO KAMO DE ALASKA a NTAMO-AMCANO AMOWAM c EIHNKMAD d DVAPACMADO a LACAIMEE.HOURNK11W ❑BLSPAND 89 st ❑NO-HISPAND NO M C Yo oertifico que L qoe yo estay props ocu mdo es verdaden y puedo set sujeto a%vnficaci6n a cuabecueta hma Par tm a parts- Yo tambaen reconozoo qm)z pamsicn de ndbucadbn Enka poede dejarme sojeto a peaalidn&%Fakn %.F.statalm y a ky local- Finn del Padesh-Il"utar Legal Fecha ADVERTENCIA T IT-L018,SECCIda 1001 DEL CODIGO BE LOS ESTADOS UM OS MICA QUX UNA PERSOYA ES CULPABLE DE UN DELITO POR SABER Y VOLUNTARIAWNTE RACER DHCLARAC10NES FALS05 O MUDULF.L?AS A CUALQUIER DEPARTA1tE.*fTO DE GOSIERNO DE LOS FSTADOS LNMM. Para use de nWleas de la agwid: d De Miembros de Familia bwwo Annsl L mute de Ingrso: Nizwo,de Regisim Medico: 4Esti el pacieate sobr+e mesas? Si No Peasona hacienda b deterinaci(m: , FC&L. .Vote: la dirw66n de la rasa y lax ingresos(y 5=orige )Para todos ■"Mbrox del hDaw zn Xwu%uduafkmZ5.2Q14 Amendment No 1 to CSC No.44670 Page 10 CDBG CONSTRUCTION CONTRACT—North Texas Area Community Health Centers,Inc. 2909 Mitchell Boulevard Rev.08/15/2014 9/3/2014 M&C Review Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FORT WORTH COUNCIL ACTION: Approved on 3/8/2011 - Ordinance No. 19580-03-2011 DATE: 3/8/2011 REFERENCE**C-24766 NAME: 17SOUTHEASTCOMMUNITYHEALTHCENTER CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Contract with the North Texas Area Community Health Center, Inc. for the Development of the Southside Community Health Center to be Located at 2909 Mitchell Boulevard in the Amount of$67,605.00 of Community Development Block Grant Funds, Authorize a Substantial Amendment to the City's 2009-2010 Action Plan and Authorize a Transfer of Funds and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council: 1. Authorize a Substantial Amendment to the City's 2009-2010 Action Plans; 2. Authorize the Transfer of$67,605.00 from the Community Development Block Grant Revolving Loan Fund to the Grants Fund for the development of the Southside Community Health Center to be located at 2909 Mitchell Boulevard; 3. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Grants Fund by $67,605.00 from available funds; 4. Authorize the City Manager or his designee, to execute a Contract with the North Texas Area Community Health Center, Inc., for a one-year term beginning on the date of execution of the Contract; 5. Authorize the City Manager or his designee, to extend or renew the Contract for up to one year if the North Texas Area Community Health Center, Inc. requests a written extension and if such extension is necessary for the completion of the project; and 6. Authorize the City Manager or his designee, to amend the Contract if necessary to achieve project goals and completion 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 grant funds. DISCUSSION: On November 16, 2010, City Council approved M&C L-15099 authorizing the sale of City owned commercial property located at 2909 Mitchell to the Fort Worth Northside Community Health Center, Inc. now known as the North Texas Area Community Health Center, Inc. (NTACHC) in the amount of $67,600.00. NTACHC shall use the property for the development of a Community Health Center to provide the benefit of healthcare services to the low and moderate income persons in the area. NTACHC presently operates two clinics within City of Fort Worth, the Albert Galvan Health Clinic located at 2106 North Main Street and the Southeast Community Health Center currently located at 3212 Miller Avenue. These clinics provide high quality, low cost health care services to the communities in the Northside and Southside of Fort Worth. NTACHC was awarded a grant provided by the Health Resources and Services Administration (HRSA) to develop the Southeast Community Health Center. This grant is part of the new American Recovery and Reinvestment Act (ARRA) as part of HRSA's Community Health Centers program. The clinic will employ approximately 20 full time http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14908&councildate=3/8/2011 112 • 9/3/2014 M&C Review employees and once it's fully operational, will be able to serve a total of 16,600 patient visits per year. Pursudnt to federal regulations, the proceeds of the sale to NTACHC received by the City in the amount of$67,505.00 plus the option fee received from NTACHC in the amount of$100.00 are co'hsidered program income. Program income must be expended by the City prior to the expenditure of any other CDBG funds. Staff recommends a reallocation of up to $67,605.00 of CDBG program income funds from 2009- 2010 Action Plan for the renovation of the Southside Community Health Center to be located at 2909 Mitchell Boulevard. A public comment period concerning the reallocation of these funds was held from January 11, 2011 to February 11, 2011. Any comments are maintained by the Housing and Economic Development Department in accordance with federal regulations. The expenditure of the CDBG funds is conditioned upon the satisfactory completion of the environmental review per 24 CFR Part 58 and the authorization to use grant funds from the U.S. Department of Housing and Urban Development (HUD). This project is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 005206122720 $67.605.00 GR91 538040 005206066000 $67.605.00 GR76 476091 005206122720 $67.605.00 Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Jay Chapa (5804) Additional Information Contact: Fabiola Y Suarez (6811) Cynthia Garcia (8187) ATTACHMENTS 17SOUTHEASTCOMMUNITYHEALTHCENTER Aon REVISED.doc http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14908&councildate=3/8/2011 2/2 9,312d 14 M&C Review Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRTWoRm COUNCIL ACTION: Approved on 5/7/2013 DATE: 517/2013 REFERENCE NO.: **C-26220 LOG NAME: 17CDBG_2909M ITCH ELL CODE: C TYPE: CONSENT PUBLIC HEARING: NO SUBJECT: Authorize Change in Use and Expenditure in the Amount of$102,626.00 in Community Development Block Grant Funds to North Texas Area Community Health Centers, Inc., in the Form of a Forgivable Loan for the Southeast Community Health Center to be Located at 2909 Mitchell Boulevard, Authorize Execution of Contract and a Substantial Amendment to the City's 2011-2012 Action Plan (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council: 1. Authorize a Substantial Amendment to the City's 2011-2012 Action Plan; 2. Authorize a change in use and expenditure in the amount of $102,626.00 in Community Development Block Grant funds to North Texas Area Community Health Centers, Inc., in the form of a forgivable loan to finish out the interior of the building for the Southeast Community Health Center to be located at 2909 Mitchell Boulevard; 3. Authorize the City Manager or his designee to execute a contract and any related documents with North Texas Area Community Health Centers, Inc., for a term beginning on the date of execution and ending five years after the center is operational; and 4. Authorize the City Manager or his designee to amend the contract, 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 grant funds. DISCUSSION: In 2000, the Mitchell Boulevard Development Corporation acquired the property at 2909 Mitchell and built a commercial building intended as a neighborhood retail center using $350,000.00 in Community Development Block Grant (CDBG) funds as part of a Model Blocks Neighborhood Revitalization Program. The interior of the building was never finished out. The Corporation, which had changed its name to the Texas Community Development Corporation, dissolved in 2007 and deeded its properties to the City, in lieu of repayment of the federal funds (M&C G-15622). On November 16, 2010, the City Council approved the sale of the property to the North Texas Area Community Health Centers, Inc. (NTACHC), for $67,600.00 for the development of a community health center to serve low and moderate income persons (M&C L-15099). On March 8, 2011, the City Council approved an award of$67,600.00 of CDBG funds to NTACHC for part of the cost of finishing out the building for the Southeast Community Health Center (M&C C-24766). On October 18, 2011, the City Council approved the sale of an adjacent properly located at 2604 Strong Avenue to the NTHCHC for use as a driveway for the health center (M&C L-15269). Currently, the Southeast Community Health Center operates at a temporary location at 3212 Miller Avenue but NTACHC intends to move it to 2909 Mitchell Boulevard once the interior of the building is finished out. The estimated total cost to finish out Phase 1 of the health center is $478,816.00. NTACHC has raised approximately $308,590.00 in cash gifts and pledges in addition to the City's CDBG grant of$67,600.00. This leaves a funding gap of approximately $102,626.00. http://apps.cf6vnet.org/council_packetlmc_review.asp?I D=18343&councildate=5/7/2013 1/2 9,3/2014 M&C Review Staff recommends the following loam terms: 1. The clinic must be operational by December 31, 2013 and operate for five years; 2. The clinic must serve at least 50 persons per quarter; 3. 51 percent of the people served must have incomes at or below 80 percent of Area Median Income, as established by the United States Department of Housing and Urban Development (HUD); 4. The clinic will use its best efforts to create at least 10 jobs by Year 5 of clinic operation;. 5. NTACHC's performance of these conditions and repayment of CDBG funds, if the conditions are not fulfilled, will be secured by a deed of trust; and 6. In Year 5, the loan of the CDBG funds shall be forgiven, if the contract terms are met. Staff recommends the change in use and expenditure of$102,626.00 of additional CDBG funds for the finish out of the building located at 2909 Mitchell Boulevard for the Southeast Community Health Center which will benefit low and very low income citizens. The Action Plan funding years selected may vary and be substituted based on the Principle of First In, First Out, in order to expend the oldest grant funds first. A public comment period on the change in use of these CDBG funds was held from April 6, 2013 to May 7, 2013. Any comments are maintained by the Housing and Economic Development Department, in accordance with federal regulations. The project is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/Account/Centers FROM F u nd/Accou nt/C enters GR76 539120 017206530720 $102.626.00 GR91 538040 005206066010 $102.626.00 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Jay Chapa (5804) Additional Information Contact: Cynthia Garcia (8187) Leticia Rodriguez (7319) ATTACHMENTS 2909 Mitchell and 2604 Strong Ave Location Final.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18343&councildate=5/7/2013 2/2