M&C Review


COUNCIL ACTION:  Approved on 12/4/2018 - Ordinance No. 23484-12-2018

DATE: 12/4/2018 REFERENCE NO.: **C-28938 LOG NAME: 19MAMA E BBQ AND HOME STYLE COOKING EXTERIOR IMPROVEMENTS
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Expenditure in the Amount of $53,000.00 of Urban Development Action Grant Miscellaneous Revenue in the Form of a Forgivable, Deferred Payment Loan for Storefront and Parking Improvements to Mama E's BBQ and Home Style Cooking Located at 818 East Rosedale Street in the Historic Southside Area, Authorize Execution of a Loan Agreement, and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8)


RECOMMENDATION:

It is recommended that the City Council:  

1.  Authorize expenditure in the amount of $53,000.00 of Urban Development Action Grant miscellaneous revenue in the form of a forgivable, deferred payment loan for storefront and parking improvements to Mama E's BBQ and Home Style Cooking located at 818 East Rosedale Street in the Historic Southside Area;

2.  Authorize the City Manager or his designee to execute a Loan Agreement, and any related documents with Mama E's BBQ and Home Style Cooking for a five-year term;

3.  Authorize the City Manager or his designee to extend the Loan Agreement for one six-month period if such extension is necessary for completion of the project;

4.  Authorize the City Manager or his designee to amend the Loan Agreement 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; and,

5.  Adopt the attached appropriation ordinance increasing the actual receipts and total appropriations in the Grants Operating Fund by $289,196.12.

 
DISCUSSION:

Mama E's BBQ and Home Style Cooking (Mama E's) is an existing fast casual restaurant in operation since 2006 located at the southwest corner of Missouri Avenue and East Rosedale Street in the Historic Southside Area.  Mama E's has employed over 25 employees since its opening, many of whom were referred by the Texas Workforce Commission.

On October 30, 2018, Staff briefed the Housing and Neighborhood Services Committee on Mama E's request for a five-year forgivable, deferred payment loan in the amount of $53,000.00.  MaMa E's is requesting the loan in order to make exterior improvements to the restaurant including repairing the parking lot and adding Americans with Disabilities (ADA) accessibility features; cleaning, repairing and updating the storefront; installing fencing, an outdoor seating area, and wall light features; and replacing existing business signage with a sign that incorporates Historic Southside logo design elements.

The funding source for this grant will be lease revenues received by the City under its lease to the downtown Hilton Fort Worth Hotel of the adjacent underground parking garage (City Secretary Contract No. 11085, as amended and assigned), which was constructed using Urban Development Action Grant (UDAG) funds received by the City 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 to the City is closed out and therefore the lease payments are considered by HUD to be "miscellaneous revenue."  Mama E's is located in a Community Development Block Grant-eligible census tract, 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 Loan Agreement for $53,000.00 with Mama E's, on the following terms:  

  • Five-year forgivable, deferred payment loan;
  • City's loan will be in first lien position;
  • Loan secured by a Deed of Trust with Due on Sale Clause to prevent the sale or transfer of the property for the five-year term without City permission. City will release its lien at the end of the five-year term;
  • City must receive and approve an executed contract between owner and general contractor prior to construction start;
  • Certificate of Occupancy must be issued within 90 days of the construction start date;
  • Funds will be paid on a reimbursement basis after completion of construction and City's final inspection; and
  • A minimum of two of MaMa E's employees must reside in the Historic Southside or Evans Rosedale Development area.

This project will benefit low and moderate income persons and accomplish the public purpose of aiding in the revitalization of the Historic Southside area by renovating the exterior of an anchor business.

Total lease revenues in the amount of $289,196.12 received over the last two years have not been appropriated by the City Council.  Staff recommends appropriating the revenue and allocating $53,000.00 of it to this project.  The balance of appropriated Grants Operating funds will be used for future eligible projects.

The project is located in COUNCIL DISTRICT 8.

 
FISCAL INFORMATION/CERTIFICATION:

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

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Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Aubrey Thagard (8187)
Sydnee Freeman (7556)
Additional Information Contact:
Chad LaRoque (2661)

 
 
ATTACHMENTS
  19MAMA E'S B-BARBEQUE AND HOME COOKING EXTERIOR IMPROVEMENTS_21003_AO19 (1).docx
  MamaEs-1295.pdf
  MamaEsMap-818ERosedaleSt.pdf