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HomeMy WebLinkAboutOrdinance 14602v" ORDINANCE /~(f~D1~ AUTHORIZING PROMISSORY NOTE IN THE AGGREGATE PRINCIPAL AMOUNT OF $7,500,000 TOGETHER WITH THE CONTRACT FOR LOAN GUARANTEE ASSISTANCE UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED, 42 U S C , SECTION 5308, IN CONNECTION THEREWITH THE STATE OF TEXAS COUNTIES OF TARRANT AND DENTON CITY OF FORT WORTH WHEREAS, the City of Fort Worth ("City") has entered into a community development project in accordance with Chapter 373 of the Local Government Code, and the City is desirous of issuing a note (the "Note") pursuant to Section 373 005 of the Local Government Code, to implement the program for the acquisition, construction and improvement or rehabilitation of buildings (the "Project") and other improvements in an approved community development program that the City has determined to be a public program and is also the recipient of federal funds which may be used for these purposes in accordance with the Housing and Community Development Act of 1974 as managed by the United States Department of Housing and Urban Development; and WHEREAS, the City deems it advisable to authorize, issue and sell the Note in an aggregate principal amount of $7,500,000 for those purposes, which Note is non-recourse NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH 1 That the Note is hereby authorized to be executed and delivered by the City in accordance with the terms as provided in such Note, a copy of which is attached hereto as Exhibit A. 2 That the Contract for Loan Guarantee Assistance between the City, as the Borrower, and the Secretary of Housing and Urban Development, as the Guarantor, in reference to the payment of such Note, is hereby authorized to be executed by the City Manager or any Assistant City Manager on behalf of the City, in accordance with the terms as provided in the Contract for Loan Guarantee Assistance, attached hereto as Exhibit B 3 That the City Manager or any Assistant City Manager is hereby authorized to execute any other documents necessary in connection with this transaction and the officers and employees of the City are hereby directed to do any and all things necessary in order to accomplish the issuance of the Note and securing of same all in accordance with the Contract for Loan Guarantee Assistance under Section 108 of the Housing and Community Development Act of 1974 4 That the findings and recitals set forth in the preamble to this ordinance are .hereby incorporated in and made a part of this ordinance PASSED ON this 1st day of May, 2001 City Secr ry APPROV AS TO FORM AND LEGALITY Assistant ty Attorney .Date ADOPTED '~~ _ / ~a~ Mayor EFFECTIVE ~'ity of Fort Worth, Texas M,~A~or and Council Cvmmun~cAtivn DATE REFERENCE NUMBER LOG NAME PAGE 5/1/01 **G-13216 13HERITAGE 1 of 2 suB~ECT ADOPTION OF ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROMISSORY NOTE IN THE PRINCIPAL AMOUNT OF $7,500,000 TOGETHER WITH A CONTRACT FOR LOAN GUARANTEE ASSISTANCE WITH HUD FOR THE HERITAGE CENTER PROJECT RECOMMENDATION It is recommended that the City Council adopt the attached ordinance which authorizes the City Manager to execute a promissory note together with a contract for loan guarantee assistance with the United States Department of Housing and Urban Development (HUD) through the Section 108 loan program for the Heritage Center project. DISCUSSION On July 21, 1998 (M&C C-16898), the City Council authorized the application for an Economic Development Initiative (EDI) grant in the amount of .$1,500,000 from HUD for the development of the Heritage Center On December 21, 1998, HUD awarded the City the EDI grant subject to the approval of Section 108 loan guarantees in the amount of not less than $7,500,000 On September 7, 1999 (M&C G-12650), the City Council authorized the City Manager to apply for a HUD Section 108 loan for the Heritage Center project. The City Council, in the same Mayor and Council Communication, also approved and authorized the City Manager to execute the Section 10'8 loan program contract with HUD to provide funding for the Heritage Center project. On April 24, 2001, the City Council adopted a resolution that reestablished the Fort Worth Development Program under Chapter 373 of the Texas Local Government Code The Heritage Center project is part of this community development program The HUD Section 108 program requires the City to execute a promissory note and a contract for loan guarantee assistance in order to fund this project. f `x1l City of Fort Worth, Texas A ar And aunc~l ~a~»n~un~cAt~ian ~~ ~ C DATE 5/1/01 REFERENCE NUMBER **G-13216 LOG NAME 13HER1TAGE PAGE 2 of 2 SUBJECT ADOPTION OF ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROMISSORY NOTE IN THE PRINCIPAL AMOUNT OF $7,500,000 TOGETHER WITH A CONTRACT FOR LOAN GUARANTEE ASSISTANCE WITH HUD FOR THE HERITAGE CENTER PROJECT FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that upon notification from HUD, the Section 108 funds will be available to finance the Heritage Center project. CB k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (tO) D ^{~''APPROVE Charles Boswell 8511 p t/~ \jl 1 Y GaUiV,~1I~„ Originating Department Head: MAY 1 2001 Joe Paniagua 6168 (from) ~ ~ ) Additional Information Contact: City Seoretasy of tha City of Foat Worth, `>"oxas Deidra Emerson 7563 AdQp4ed ©rdinanc~ No. ~~ Z