It is recommended that the City Council authorize execution of a Construction Manager-Agent Agreement with Commerce Construction Co., L.P. with a fee of six percent of construction costs, in an amount not to exceed $447,170.00 to provide construction management services for the Community Facilities Agreements with Fort Worth Heritage Development, LLC for construction of streetscape improvements along E. Exchange Avenue and waste water utilities in the vicinity of Mule Alley.

On November 15, 2016, through M&C C-27995, the City Council authorized the following actions:

(1) Execution of an Economic Develpment Program Agreement (EDPA) with Rural Media Group, LLC, for the relocation of its corporate headquarters and broadcasting operations to the Fort Worth Stockyards;
(2) Execution of a Community Facilities Agreement (CFA) with Fort Worth Heritage Development, LLC, for streetscape improvements to E. Exchange Avenue and waste water improvements in the vicinity of Mule Alley
(3) Amendment of the EDPA with Fort Worth Heritage Development, LLC (Heritage), City Secretary Contract No. 46495, to Secure Performance Obligations Under the EDPA and CFA;
(4) Execution of a Tax Increment Financing (TIF) Development Agreement with the Board of Directors of Tax Increment Reinvestment Zone No. 15 for Reimbursement to the City for Costs of Those Public Improvements,
(5) Advance Funding by the City for the Public Improvements from TIF Revenues Collected Through the Remaining Life of the Zone as the Receivable Estimated at $7,900,000.00; and
(6) Adoption of Related Appropriation Ordinances.

The City will execute separate CFAs for the streetscape improvements and the waste water improvements. The purpose of this M&C is to authorize execution of a Construction Manager-Agent Agreement with Commerce Construction Co., L.P. (Commerce) to provide construction management services for the CFAs. The City will pay Commerce a fee in the amount of six percent of the construction costs for the two CFAs, with the total fee not to exceed $447,170.00. The total amount the City will pay for the two CFAs and the Construction Manager-Agent Agreement is $7,900,000.00. The City will be reimbursed for these costs from future tax increment revenues received from properties in Tax Increment Reinvestment Zone No. 15 (Stockyards/Northside TIF), as provided in a Tax Increment Financing (TIF) Development Agreement between the City and the TIF's board of directors.

City staff has determined that Commerce is the most highly qualified provider of the Construction Manager-Agent services based on demonstrated competence and qualifications.

The estimated costs of the two CFAs and the Construction Manager-Agent Agreement exceed $7,900,000.00. Heritage will be responsible for the costs that exceed that amount. Failure of Rural Media Group to meet its commitments will enable the City to be reimbursed up to $5,000,000.00 for funds expended on the CFAs and Construction Manager-Agent Agreement that have not been reimbursed by the TIF.

This project is located in COUNCIL DISTRICT 2.