M&C Review


COUNCIL ACTION:  Approved on 8/14/2018 

DATE: 8/14/2018 REFERENCE NO.: **C-28791 LOG NAME: 19FORT WORTH HEALTHY FOOD FINANCING INITIATIVE
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of a Contract with PeopleFund in the Amount of $50,000.00 of Urban Development Action Grant Miscellaneous Revenue for a Pilot Project to Establish the Fort Worth Healthy Food Financing Initiative, Authorize a One-Year Extension, and Authorize Execution of Related Contracts (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council:

1.  Authorize expenditure in the amount of $50,000.00 of Urban Development Action Grant miscellaneous revenue in the form of a Contract with PeopleFund for a Pilot Project to Establish the Fort Worth Healthy Food Financing Initiative;

2.  Authorize the City Manager or his designee to execute a Contract and any related documents with PeopleFund for a one-year term beginning on the date of execution;

3.  Authorize the City Manager or his designee to extend the Contract for one year if such extension is necessary for completion of the project; and

4. Authorize the City Manager or his designee to amend the Contract if necessary to achieve project goals provided that the amendment is within the scope of the project and in compliance with City policies and applicable laws and regulations governing the use of federal funds.

 
DISCUSSION:

The Fort Worth Healthy Food Financing Initiative (FWHFFI) is an innovative approach aimed at increasing fresh food options and providing job opportunities in underserved communities in the City of Fort Worth. It is a partnership between the City of Fort Worth and PeopleFund, which is a Community Development Financial Institution (CDFI) and nonprofit organization that improves underserved communities by providing small business loans as well as business assistance and education to people with otherwise limited access to such resources. The FWHFFI will provide forgivable and low interest rate loans to support grocery development in areas of the City with low supermarket density or below average grocery sales and where at least 51% of the households are low- to moderate-income. The City will provide an initial investment of $50,000.00 in public funds to serve as an interest rate buy down for $500,000.00 in privately financed loans that PeopleFund will provide. The City's grant funds will reduce the average interest rate on an FWHFFI loan by 2.5%, which will save borrowers in the program a total of over $105,000.00 in interest.

Funds will be used to support the creation, rehabilitation, or expansion of grocery or convenience stores, farmer's markets or other food retailers that can demonstrate that a significant amount of the applicant's shelf space will be dedicated to the sale of fresh fruit and vegetables. Additional eligible uses for the loan funds include pre-development, site assembly and infrastructure improvement, the purchase and installation of equipment and interior furnishings; staff training, security, and inventory and working capital for initial start-up costs.

The funding source for this grant will be lease revenues received by the City under its lease to the downtown Hilton Fort Worth Hotel (City Secretary Contract No. 11085, as amended and assigned) of the adjacent underground parking garage, which is owned by the City and was constructed using UDAG funds received from the United States Department of Housing and Urban Development (HUD), pursuant to a 1979 Grant Agreement (City Secretary Contract No. 10610). The UDAG Grant is closed out and therefore these funds are considered to be "miscellaneous revenue". The project sites will be located in Community Development Block Grant-eligible census tracts, which qualifies the project for the use of UDAG miscellaneous revenue.

Staff has reviewed the project and has determined that it meets federal requirements for use of UDAG miscellaneous revenue. Staff recommends executing a $50,000.00 contract with PeopleFund, on the following terms:

        • Term of the Contract will be one year with one one-year extension;
        • Funds may only be used to support the creation, rehabilitation, or expansion of grocery or
          convenience stores, farmer's markets, mobile markets, or other food retailers in areas of the City
          with low supermarket density or below average grocery sales and where at least 51% of the
          households are low- to moderate-income;
        • Funds may only be used to support grocers or other food retailers that can demonstrate that
          a significant amount of the applicant's shelf space will be dedicated to the sale of fresh fruit
          and vegetables;
        • PeopleFund will coordinate with Councilmembers in target areas to identify opportunities
          for investment/assistance and market the assistance that can be provided; and
        • PeopleFund will provide a comprehensive outreach and marketing plan that will
          detail strategies for reaching out to various constituencies including neighborhood
          organizations, business advocacy organizations (e.g., Fort Worth Black Chamber,
          Hispanic Chamber, etc.) and other population segments and potential clientele that would
          benefit from the program within 30 days of contract finalization.

The project loan funds will be offered city-wide.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund.  Prior to an expenditure being made, the participating department has the responsibility to validate the availability of funds.

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FROM
    Fund Department
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Account Project
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Program Activity Budget
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Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aubrey Thagard (8187)
Additional Information Contact:
Chad LaRoque (2661)

 
 
ATTACHMENTS
  Fort Worth Healthy Food Financing Initiative (FWHFFI) Target Areas.pdf
  PF Form 1295.pdf