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HomeMy WebLinkAbout025639 RES - 01/20/2004A RESOLUTION APPROVING THE EXECUTION OF AN AFFORDABLE HOUSING PROJECT AGREEMENT BETVVEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ("CORPORATION") AND THE NUECES COUNTY COMMUNITY ACTION AGENCY ("NCCAA") TO ALLOW T HE CORPORATION T O G RANT T O T HE N CCAA $ 225,000 TOWARD LAND ACQUISITION FOR AN AFFORDABLE HOUSING PROJECT. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes ("Development Corporation Act of 1979") empowered local com- munities with the ability to adopt an optional local sales and use tax as a means of im- proving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and ex- panded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Af- fordable Housing, which authorized the use of a portion of the sales and use tax ap- proved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allo- cated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, Section 21 of the Development Corporation Act of 1979 requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the Board issued a Request for Proposals for affordable housing projects; WHEREAS, the NCC,aA submitted a proposal to the Board to request funding for an af- fordable housing project that will consist of purchasing a 20-acre parcel of land, located at Holly and Martin Streets, in southwest Corpus Christi ("Land Acquisition Project"), a project that is suitable for the promotion and development of affordable housing within the City; and WHEREAS, the City Council has determined that it is in the best interests of the Cor- poration and the citizens of Corpus Christi, Texas, that the proposed Land Acquisition Project and its associated expenditure be approved. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Council approves the execution of an affordable housing project agreement ("Project Agreement") between the Corporation and the NCCAA to allow the Corporation to grant to the NCCAA $225,000 toward land acquisition for an affordable housing project. A copy of the Project Agreement is attached as Exhibit A. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Mayor Assis(~f~t City Attorney for the City Attorney ,2004 Corpus Christi, Te~as ,2004 The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Melody Cooper Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott H \LEG DIR/OlgaR\ELIZABETHI138 res wpd AFFORDABLE HOUSING PROJECT AGREEMENT FOR LAND ACQUISITION PROGRAM This Affordable Housing Project Agreement ("Project Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the Nueces County Community Action Agency ("NCCAA"), a non-profit corporation organized under the statutes of the State of Texas. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one-eighth of one percent to be imposed for 15 years; WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable Housing, which authorized the use of a portion of the sales and use tax approved under Proposition 2 for affordable housing, up to $500,000 annually, so long as there are projects for which the amount can reasonably be used; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated under Proposition 2B for affordable housing was subsequently enacted by the City's City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a Request for Proposals for affordable housing projects; WHEREAS, the NCCAA submitted a proposal to the Board to request funding for an affordable housing program that will consist of purchasing a 20-acre parcel of land, located at Holly and Martin Streets, in southwest Corpus Christi ("Land Acquisition Program"), a program that is suitable for the promotion and development of affordable housing within the City; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the corporation; WHEREAS, the City Council approved the Corporation's affordable housing program and selection of the NCCAA as a recipient of affordable housing funds on January 20, 2004; and WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, that the NCCAA be awarded affordable housing funds, NCCAA Affordable Housing Proj Agmt.doc Page I of 5 execution of this Project Agreement, to promote and develop the affordable housing program stated in the NCCAA's response to the Board's Request for Proposals. In consideration of the covenants, promises, and conditions stated in this Project Agreement, the Corporation and the NCCAA agree as follows: 1. Project Agreement to Implement Affordable Housing Program. This Project Agreement between the Corporation and the NCCAA is executed to implement the promotion and development of an affordable housing program proposed by the NCCAA in the NCCAA's response ("Response") to the Board's Request for Proposals. The Response submitted by the NCCAA is incorporated in this Project Agreement by reference. 2. Effective Date. The effective date of this Project Agreement is the latest date that either party executes this Project Agreement. 3. Term. The term of this Project Agreement runs one year from the date of execution. 4. Services to be Provided by Corporation. a. The City Manager or the City Manager's designee ("City Manager") shall administer funding on behalf of the Corporation. b. The City Manager shall perform contract administration responsibilities, as outlined in this Project Agreement, for the Corporation. 5. Services to be Provided by NCCAA. a. The NCCAA shall implement and provide the affordable housing services stated in the Response. The NCCAA shall acquire, in NCCAA's name only, a 20-acre parcel of land, located at Holly and Martin Streets, in southwest Corpus Christi. In no event may the funds provided under this Project Agreement be utilized to purchase any other parcel of land without the NCCAA obtaining the prior written approval of the Corporation. b. The NCCAA covenants to purchase the land for the development of 100 single-family residential lots of affordable housing, as the term is defined in 42 United States Code § 12745, in accordance with the requirement in the Texas Development Corporation Act of 1979, and provide one additional commercial lot, the commercial lot to be dedicated to use by the City Police Department or the Nueces County Sheriff's Department for a police substation or placement of a mobile law enforcement unit. NCCAA Affordable Housing Proj Agmt doc Page 2 of 5 6. Payment of Funds. a. The Corporation shall pay to the NCCAA a grant in the amount of $225,000. b. Any payments by the Corporation under the provisions of this Agreement are subject to the receipt of sales taxes, by the City, from the Office of the Comptroller of the State of Texas and payment of the sales taxes to the Corporation by the City. c. The NCCAA shall deposit the funds in a non-interest bearing account until the funds are required to be paid to the seller(s) of the land. d. In the event that the purchase price of the land is less than the total funding amount, the NCCAA is obligated to remit the remainder of funds to the Corporation at the conclusion of the purchase of the land or at the expiration of this Project Agreement, whichever event occurs earliest. 7. Documentation and Reports. a. The NCCAA shall maintain all documentation relating to the receipt and expenditure of the funds provided under this Project Agreement for a period of three years following the expiration of this Project Agreement. b. The NCCAA shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Project Agreement, during regular business hours for the purpose of inspection and copying by the City Manager. Furthermore, the NCCAA shall provide to the City Manager any information pertinent to this Project Agreement, as may be requested during the term of this Project Agreement. c. The NCCAA shall submit a performance report ("Report") to the Corporation within 30 days of the expiration of this Project Agreement. The Report must contain all relevant details pertaining to the land purchase and include any supporting documentation required to substantiate the written narrative contained in the Report. 8. Amendments or Modifications. No amendments or modifications to this Project Agreement may be made, nor any prevision waived, unless the amendment or modify- cation in made in writing and signed by persons duly authorized to sign agreements on behalf of each party. 9. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Agreement or the application of this Project Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Agreement, or the NCCAA Affordable Housing Proj Agmt.doc Page 3 of 5 application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Agreement that every section, paragraph, subdivision, clause, provision, phrase, and word of this Project Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Agreement, then the remainder of this Project Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause o r provision, a s similar i n terms t o t he i Ilegal, invalid, o r unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Agreement automatically. 10. Compliance with Laws. The NCCAA shall comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to the NCCAA's performance under this Project Agreement. 11. Jurisdiction and Venue. a. This Project Agreement will be governed by and construed in accordance with the laws of the State of Texas. b. All actions brought to enforce compliance with this Project Agreement must be brought in Nueces County, Texas, where this Project Agreement was entered into and must be performed. 12. Acknowledgment and Construction of Ambiguities. The parties expressly agree that they have each independently read and understood this Project Agreement. By the NCCAA's execution of this Project Agreement, the NCCAA agrees to be bound by the terms, covenants, and conditions contained in this Project Agreement. Any ambiguities in this Project Agreement may not be construed against the drafter. 13. Captions. The captions in this Project Agreement are for convenience only and are not a part of this Project Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Agreement. 14. Entire Agreement. This Project Agreement and the referenced and incorporated documents constitute the entire agreement between the Corporation and the NCCAA for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Project Agreement, unless contained in this Project Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Project Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the NCCAA's performance under this Project Agreement. NCCAA Affordable Housing Proj Agmt.doc Page 4 of 5 Corpus Christi Business & Nueces County Community Job Development Corporation Action Agency Date: Signature Printed Name Title Date NCCAA Affordable Housing Proj Agmt doc Page 5 of 5 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: 1/20/04 Agenda Item: Resolution authorizing the execution of an execution of an Affordable Housing Project Agreement between the Corpus Christi Business and Job Development Corporation and the Nueces County Community Action Agency (NCCAA). This agreement provides NCCAA a grant in the amount of $225,000 to acquire a 20 acre parcel of land at Holly and Martin Streets to build Affordable Housing. Amount Required: $225,000.00 Fund Name Fund No. Org. No. Account No. Project No. Amount Business & Job Development 1140 15000 530000 $225,000.00 Total $ 225~000.00 Fund 1140 is a 4-A Corporation. Fundin is contingent upon receipt of sales tax revenue. [~ Certification Not Required Director of Fina¢cial ~ervi.ces Date: