HomeMy WebLinkAboutOrdinance 12956_, .,
Ordinance No `~~~
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
GRANTS FUND IN THE AMOUNT OF $7,260,000 00 SUBJECT TO RECEIPT OF THE GRANT FOR
THE PURPOSE OF FUNDING A GROCERY STORE RETAIL CENTER IN THE WEED AND SEED
TARGET AREA THROUGH A GRANT FROM THE U S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT, PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR
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 m addition to those amounts allocated to the vanous City departments for the Fiscal Year 1996-97 and in the Budget of
the City Manager, there shall also be increased estimated receipts and appropriations in the Grants Fund in the amount of
$7,260,000 00 upon receipt of the grant for the purpose of funding a grocery store retail center m the Weed and Seed target
area through a grant from the U S. Department of Housing and Urban Development.
SECTION 2.
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, opimon or judgement 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 Orduiance No. 12629 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repealed.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 and be m full force and effect and after the date of its passage, and it is so ordained.
AS TO FORM AND LEGALITY
Assistan~t/City Attorney
"T ~ t~ ~ 97
Date
~~ ~~ ~~
Adopted
Effective
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DATE REFERENCE NUMBER LOG NAME PAGE
04/08/97 G-11856 13LOAN 1 of 2
SUBJECT ADOPT APPROPRIATION ORDINANCE AND AUTHORIZE SECTION 108 LOAN AND
ECONOMIC DEVELOPMENT INITIATIVE GRANT APPLICATION FOR MINYARD FOOD
STORE DEVELOPMENT PROJECT
RECOMMENDATION
It is recommended that the City Council
1 Authorize the City Manager to apply for, by amendment of the U S Department of
Housing and Urban Development (HUD) grant B-94-MC-48-0010and accept, if offered,
a $6,600,000 Economic Development Initiative (EDI) grant from HUD,
2 Adopt an appropriations ordinance increasing estimated receipts and appropriations in
the Grants Fund in an amount up to 56,600,000 for Section 108 funds and 5660,000
in EDI funds subject to the receipt o~f the grant/loan
3 Authorize the City Manager to enter into a contract with HUD for the receipt and
payment of the Section 108 loan
DISCUSSION
In September, of 1994, the City of Fort Worth applied for and received an Economic
Development Initiative grant in the amount of 5660,000 conditioned upon the City applying
for a Section 108 loan in the amount of 56,600,000 The funds were to be used to encourage
the development of a modular housing manufacturing facility in the Weed and Seed target
area Because of the financial risks that wE:re later identified with that project, the project was
delayed indefinitely
In January, 1997, the City of Fort Worth submitted an amended application to HUD requesting
that the EDI grant and the Section 108 loan be made available for a project involving the
development of a grocery store retail center At the same time, HUD was asked to give the
City more time to consummate an agreennent with a grocery chain The project would be
located in the Weed and Seed target area
In February, 1997, an announcement was made that Minyard Food Stores would locate and
construct; a?retail development at the corner of Miller Avenue and East Berry Street In
discussions ;with Minyard, the City offered the use of EDI and Section 108 HUD funds as
,.. ~ . ,~
financial capital for the project The project, which is anticipated to have a total cost of over
510 million, would be partially financed with 57,260,000 in federal funds
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Printed on Regded Paper
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City of Fort Worth Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
04/08/97 G-11856 13LOAN 2 of 2
SUBJECT ADOPT APPROPRIATION ORDINANCE AND AUTHORIZE SECTION 108 LOAN AND
ECONOMIC DEVELOPMENT INITIATIVE GRANT APPLICATION FOR MINYARD FOOD
STORE DEVELOPMENT PROJECT
A major component of this project involves the creation of jobs in an area that is in need of
economic development activity Minyard proposes to create 150 jobs through the
construction of a 52,000 square foot grocery store An additional 50 jobs will be created with
the construction of 15,000 to 20,000 square feet of other retail space As in developments
such as this, other businesses will most likely locate in the area
The proposal calls for the City to borrow funds from HUD and to loan Minyard $6,600,000
in Section 108 loan funds at a rate above treasury rates The actual rate will be determined
at the time of closing of the loan between HUD and the City Payment of the loan will be from
revenue generated by Minyard Minyard will repay the City in yearly payments and the City
will repay HUD in yearly payments until the loan is paid in full Minyard will pledge the
development as collateral The City, as required by HUD will pledge future CDBG allocations
in the event of a default Under the terms of the loan, the amount of CDBG funds pledged
would not exceed the yearly required payment
The grant funds will be used for relocation costs, some administration costs, infrastructure
support, training costs, and debt reserve
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that upon approval of the above recommendations and
adoption of the attached appropriations ordinance and receipt of the grant/loan, funds will be
available in the current operating budget, as appropriated, of the Grants Fund
CBf
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
(2)GR76 451727 013206120000 $6,600,000.00
Charles Boswell 6183 (2)GR76 539120 013206120010 $6,600,000.00 APPROVED
Originating Department Head: (3)GR76 45].727 013206119000 $6,600,000 00 CITY CQU{VCIL
(2)GR76 516010 013206119010 $6,600,000 00
Jim Keys 8517 (from) AF1~ g 197
For Additional Information QLts,4J
Contact: City i5scr~tary of the
City OI FOit Worth, Texet
Joe Paniagua 6168
>~ Printed on Regded Paper Atlopietl Ordinance No. ~~~~"~~