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HomeMy WebLinkAboutOrdinance 15274Ordinance No. ~ V ~~ AN ORDINANCE INCREASING ESTIMATED RECEII'TS AND APPROPRIATIONS IN THE RENTAL REHABILITATION PROGRAM FUND IN THE AMOUNT OF $80,000 FROM AVAILABLE FUNDS, FOR THE PURPOSE OF EXECUTING A CONTRACT WITH FORT WORTH SOUTH, INC. FOR THE OLEANDER WALK NEIGHBORHOOD (OWN) DEVELOPMENT PROJECT, MAKING THIS ORDINANCE CUMULATNE OF PRIOR ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTNE 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 2002-2003 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Rental Rehabilitation Program Fund in the amount of $80,000 from available funds, for the purpose of executing a contract with Fort Worth South, Inc. for the Oleander Walk Neighborhood (OWN) Development Project. 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. 15184 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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. AP ROVED A TO RM AND LEGALITY r Assis t City A ey '~1~~~~ ADOPTED AND EFFECTNE. ~'ity of Fo~'t Worth, Texas Mayor and Council Communication DATE 10/8/02 **G-13756 LOG NAME 050WN PAGE 1 of 2 SUBJECT TRANSFER FROM RENTAL REHABILITATION PROGRAM FUND TO THE FORT WORTH HOUSING FINANCE CORPORATION FUND FOR THE OLEANDER WALK NEIGHBORHOOD DEVELOPMENT PROJECT RECOMMENDATION It is recommended that the City Council 1 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Rental Rehabilitation Program Fund by $80,000 from available funds, and 2 Authorize the transfer and use of $80,000 in rental rehabilitation funds from the Rental Rehabilitation Program Fund to the Fort Worth Housing Finance Corporation Fund in order to execute a contract with Fort Worth South, Inc for the Oleander Walk Neighborhood .(OWN) Project. DISCUSSION The City Council has designated Magnolia Village as one of the ten key mixed-use growth areas or "villages" in the City, which is eligible for designation as a Neighborhood Empowerment Zone, once the village core is rezoned mixed-use The development of urban villages is a critical element in the revitalization of the Central City, one of the City Council's strategic goals for 2002 thru 2006 Magnolia Village is at the intersection of Hemphill Street and Magnolia Avenue, and extends several blocks west on Magnolia Avenue and north to West Rosedale Street. Oleander Street is located in the western section of Magnolia Village It is centrally located to other employment centers in the south Fort Worth area and is ideally suited for residential redevelopment. With funding provided by the Fort Worth Housing Finance Corporation (FVVHFC) and a private foundation, Fort Worth South, lnc. commissioned the development of a unified master plan for the area along Oleander Street -the OWN Concept Plan Fort Worth South, Inc. is anon-profit organization promoting business and residential investment in the Medical District, which encompasses Magnolia Village The OWN Concept Plan is the basis for an implementation strategy that will initiate the OWN Development Program The goals of this program are • To re-establish the vitality of this pre-World War 11 residentia! neighborhood, and • To return vacant land within the neighborhood to a higher and more productive use, and • Compatibly refill the existing lots with residential structures that serve a wide range of family types and a diversity of income levels, while providing potential housing options for the 30,000 individuals working in the Fort Worth South District, as well as the Central City at large, and • Use Oleander Walk, a narrow, lane-like street, as the armature for reconfiguring additional residential in-hll Bungalows, row houses, stacked flats and duplex dwellings will be employed, anti • Compliment the proposed commercial developments of Gateway Village and Magnolia Green City of Fort North, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 10/8/02 **G-13756 050WN 2 of 2 SUBJECT TRANSFER FROM RENTAL REHABILITATION PROGRAM FUND TO THE FORT WORTH HOUSING FINANCE CORPORATION FUND FOR THE OLEANDER WALK NEIGHBORHOOD DEVELOPMENT PROJECT In order to begin a quality residential redevelopment on Oleander Walk, Fort Worth South, Inc. has requested gap financing of $500,000 to partly fund predevefopment costs and land acquisition Phase I will consist of fourteen housing units. Construction could start as early as 2003 Phase II is a mixed. commercial/residential project that would include eight homes The estimated total development cost of Phases I and II is $8 3 million, indicating a leveraging ratio of City dollars of $1 to $17 Two private banks and Fort Worth South, Inc. will provide the balance of the development cost. The Housing Department recommended granting Fort Worth South, Inc. a loan of $500,000, of which $80,000 will be funded out of rental rehab program income, as proposed in this Mayor and Council Communication, and $420,000 out of FWHFC's interest earnings on its endowment fund The interest rate on the loan will be 2%, and the loan will be repaid as homes are sold Sale of Phase I homes is projected to commence in 2004, and Phase II homes are expected to be sold by 2008 On September 10, 2002, the Economic and Community Development Committee endorsed these recommendations to the FWHFC and the City Council FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon approval of the above recommendation and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Fort Worth Housing Finance Corporation Fund RR.n Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) 2)R109 472092 005109005000 $80,000.00 Reid Rector 6140 1) GR92 441112 005206078000 $80,000 00 Originating Department Head: 1) GR92 538070 005206078030 $80,000.00 , Jerome Walker 7537 (from) APPROVED 10/08!02 2) GR92 538070 005206078030 $80,000.00 ORD.# 15274 Additional Information Contact: Jerome Walker 7537