YMCA of Metropolitan Fort Worth (YMCA) proposes to construct a new McDonald Southeast YMCA Center located at approximately 2701 Moresby Street. YMCA will offer programs and services from this new location, such as wellness classes, gym and fitness facilities, child care, youth programs, summer camps, etc. The total development cost will be approximately $13,000,000.00. On December 1, 2015, Mayor and Council Communication (M&C) C-27548 authorized an expenditure in the amount of $2,300,000.00 in the form of a forgivable loan to the YMCA for the construction of a new Enhanced Neighborhood Family Aquatics Center (E-NFAC) at the new McDonald Southeast YMCA Center, as well as authorizing a Support Agreement for an annual subsidy and long-term major maintenance reserve fund for the E-NFAC, which M&C was amended on December 6, 2016 (M&C G-18890) to amend milestones in the Support Agreement.
Staff now recommends providing a forgivable loan of $500,000.00 of UDAG Miscellaneous Revenue to the YMCA for the portion of the facility that is not the E-NFAC. UDAG Miscellaneous Revenue funds are rental revenues received from the lease of the City-owned parking garage under General Worth Square (City Secretary Contract No. 11085 as amended and assigned). UDAG funds must be used for projects that meet certain Community Development Block Grant (CDBG) program requirements, including use in a CDBG-eligible area, be a CDBG economic development project and include private investment. Annual revenue from the parking garage is approximately $100,000.00 and after funding this loan, the parking garage rental revenues account will have a remaining balance of approximately $300,000.00.
The forgivable loan would be on the following terms:
Invest a minimum amount of $13,000,000.00 in the development of the project by May 31, 2018;
Obtain final Certificate of Occupancy (CO) by May 31, 2018;
Make reasonable efforts to create 20 new jobs for Central City residents by the end of the second year loan term, with the following benchmarks:
Make reasonable efforts to create 10 new jobs for Central City residents by the end of the first year loan term, 5 of which will be seasonal;
Make reasonable efforts to create an additional 10 new jobs for Central City residents by the end of the second year loan term, 5 of which will be seasonal; and
Award 50 households living in the Columbia at Renaissance Square developments 20% off monthly membership fees.
Five year loan at 0% interest evidenced by a note and secured by a deed of trust against the property;
Payment of $400,000.00 of loan funds throughout construction; and
Payment of $100,000.00 of loan funds upon satisfactory evidence of meeting the one year Developer Commitments.
The loan will be forgiven at the end of the five-year loan term as long as YMCA has met all the terms of the Loan Agreement. The Deed of Trust will secure YMCA's performance of the loan conditions as well as repayment of the loan funds if the loan terms are not met. If YMCA does not meet its commitments, it must repay the loan within 24 months of the end of the loan term, which will be extended accordingly.
Staff has reviewed the project and has determined that it meets federal requirements for use of UDAG Miscellaneous Revenue. This project will accomplish the public purpose of furthering the United States Department of Housing and Urban Development's national objective of promoting activities that benefit low- and moderate-income persons.
The project is located in COUNCIL DISTRICT 8, Mapsco 78W.