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HomeMy WebLinkAbout025640 RES - 01/20/2004A RESOLUTION AUTHORIZING THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO EXECUTE AN AFFORDABLE HOUSING PROGRAM AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ("CORPORATION") AND THE CITY OF CORPUS CHRISTI ("CITY") TO ALLOW THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO ADMINISTER FUNDING ON BEHALF OF THE CORPORATION, PERFORM CONTRACT ADMINISTRATION RESPONSIBILITIES ASSOCIATED WITH AFFORDABLE HOUSING PROJECT AGREEMENTS, AND TO SPECIFICALLY ADMINISTER A SEPARATE AGREEMENT BETWEEN THE CORPORATION AND THE NUECES COUNTY COMMUNITY ACTION AGENCY. 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 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, 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 desires to initiate an affordable housing program and issued a Request for Proposals for affordable housing projects; WHEREAS, the Board selected a proposal submitted by the Nueces County Commun- ity Action Agency for land acquisition, a project suitable for the promotion and develop- ment of affordable housing within the City; WHEREAS, the Board desires to contract with the City to allow the City to administer funding on behalf of the Corporation, perform contract administration responsibilities associated with affordable housing project agreements, and to specifically administer a separate agreement between the Corporation and the Nueces County Community Action Agency; and WHEREAS, the City Council has determined that it is in the best interests of the citi- zens of Corpus Christi, Texas, that the City Manager or the City Manager's designee be authorized to execute an agreement with the Corporation for the purpose stated. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Council authorizes the City Manager or the City Manager's de- signee to execute an affordable housing program agreement ("Program Agreement") between the Corpus Christi Business and Job Development Corporation and the City to allow the City Manager or the City Manager's designee to administer funding on behalf of the Corporation, perform contract administration responsibilities associated with af- fordable housing project agreements, and to specifically administer a separate agree- ment between the Corporation and the Nueces County Community Action Agency ("Project Agreement"), Copies of the Program and Project Agreements are attached as Exhibits A and B, respectively. ATTEST: Arman~ City Secreta~ CITY OF CORPUS CHRISTI Mayor Eliza~)~h R. Hundley AssiStant City Attorney for the City Attorney ,2004 Corpus Christi, Te,~s ,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/L EG-DIR/OlgaRIELIZABETHI139 res w~d AFFORDABLE HOUSING PROGRAM AGREEMENT This Affordable Housing Program Agreement ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the City of Corpus Christi, Texas ("City") 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 ("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 City Council approved the Corporation's affordable housing program on January 20, 2004; WHEREAS, the Board requested and obtained affordable housing program proposals and has selected a recipient to receive affordable housing program funds; WHEREAS, the Corporation has executed a separate agreement with the Nueces County Community Action Agency ("NCCAA") for land acquisition ("Land Acquisition Program"); and WHEREAS, the Board desires to contract with the City to implement and administer the selected affordable housing program agreement on behalf of the Corporation. In consideration of the covenants, promises, and conditions stated in this Agreement, the Corporation and the City agree as follows: AffordabLe Housing Program Agreement doc Page I of 4 1. Agreement to Implement Affordable Housing Agreements. This Agreement between the City and the Corporation is executed to implement the Land Acquisition Program Project Agreement, which has been separately executed by and between the Corporation and the NCCAA. The Land Acquisition Program Project Agreement is incorporated by reference into this Agreement. 2. Effective Date. The effective date of this Agreement is the latest date that either party executes this Agreement. 3. Term. The term of this Agreement runs concurrently with the earliest effective date of the Land Acquisition Program Project Agreement and continues in force until the expiration date of the Land Acquisition Program Project Agreement. 4. Services to be Provided by City. 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 the contract administration responsibilities outlined in the Land Acquisition Program Project Agreement. 5. Payment and Administration of Funds. a. The Corporation shall pay to the City a total amount of $500,000 annually in order to fund the Corporation's affordable housing programs. b. The City shall separately account for the receipt of all funds from the Corporation and for the expenditure of all funds disbursed in administering the Land Acquisition Program Project Agreement. c. The City shall only disburse funds to affordable housing program recipients that have executed a valid agreement with the Corporation. 6. Amendments or Modifications. No amendments or modifications to this Agree- ment may be made, nor any provision waived, unless made in writing and signed by persons duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this 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 Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforce- able, will not be affected by the law or judgment, for it is the definite intent of the Affordable Housing Program Agreement doc Page 2 of 4 parties to this Agreement that every section, paragraph, subdivision, clause, pro- vision, phrase, or word of this Agreement be given full force and effect for its pur- pose. b. To the extent that any clause or provision is held illegal, invalid, or unenforce- able under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 8. Compliance with Laws. The City shall comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to the City's performance under this Agreement. 9. Jurisdiction and Venue. a. This 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 Agreement must be brought in Nueces County, Texas, where this Agreement was entered into and must be performed. 10. Acknowledgment and Construction of Ambiguities. The parties expressly agree that they have each independently read and understood this Agreement. By the City's execution of this Agreement, the City agrees to be bound by the terms, covenants, and conditions contained in this Agreement. Any ambiguities in this Agreement may not be construed against the drafter. 11. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 12. Entire Agreement. This Agreement and the referenced and incorporated docu- ments constitute the entire agreement between the Corporation and the City for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Agreement, unless con- tained in this Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the City's performance under this Agreement. (EXECUTION PAGE FOLLOWS) Affordable Housing Program Agreement doc Page 3 of 4 Corpus Christi Business & The City of Corpus Christi Job Development Corporation Date: George K. Noe City Manager Date: Attest: Armando Chapa City Secretary Approved as to form: Mary Kay Fischer City Attorney Affordable Housing Program Agreement doc Page 4 of 4