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MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("MOU") is by and between the City of Corpus Christi,
Texas (the "City"), as the agent of the Corpus Christi Tax Increment Reinvestment Zone #3 ("TIRZ
#3"), and Corpus Christi PATCH, Inc. (the "Developer"). The City and the Developer shall be referred
to herein collectively as the "Parties."
The Parties agree that any reference to "City" or"City Staff," is entirely in agency capacity for
TIRZ#3, and, further, that the City as a home-rule municipal corporation is not a party to this MOU.
This MOU will guide the relationship of the Parties with respect to the preliminary planning phase of
the Development, as defined below.
1. Definition. The "Development" is the proposed renovation of the Ritz Theatre located within
the geographical boundaries of the Tax Increment Reinvestment Zone (the "Zone") at 715 N.
Chaparral Street. Phase 1 of the Development will bring the Ritz Theatre into compliance with
all required building ordinances in order to ensure the comfort and safety of the patrons. The
focus of Phase 1 is to ensure needed standards are met in order to place the theatre in
service. The work to be done in Phase 1 includes roof repairs, repairs to the HVAC, plumbing
and electrical repair, repair of the signage, a wall mural, and any other work needed to obtain a
Certificate of Occupancy from the City's Development Services Department.
2. City's Responsibilities.
a. The City shall set aside $100,000 from the Chaparral Street Property Improvement
Program. It is the intent of the City and the TIRZ#3 Board of Directors (the "Board") to
commit the funds to the Developer for Phase 1 of the Development upon execution of a
subsequent, more detailed contractual agreement between the Parties if such an
agreement can be reached. Funds shall not be paid before a Certificate of Occupancy
has been obtained for the Development.
b. The City shall hold such funds until the termination of this MOU and shall not expend
any of the funds on other projects until the termination of this MOU.
3. Developer's Responsibilities.
a. Developer shall seek to obtain the additional funding required for the Development.
During the term of this MOU, the Developer shall obtain, at a minimum, $100,000 in
matching funds for the Development.
b. Developer shall apply for the Texas Historical Commission's Town Square Initiative and
seek a partnership and resources to assist in the Development, including Historic
Rehabilitation Tax Credits. A copy of the application for this program is attached as
Exhibit A. The Town Square Initiative's Theater Feasibility Study includes:
i. Establishment of a detailed business plan discussing the various phases of the
Development and the intended use of the Development upon completion of the
renovation. It is the understanding of the City and the Board that the
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Corpus Christi PATCH Inc.
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Development will become a public facility providing cultural experiences to the
Zone including art and music.
ii. Creation of visual representations of the planned work in Phase 1, evidencing an
intention to maintain the historical and cultural integrity of the Ritz Theatre.
c. Developer shall also provide economic impact models showing the expected impact that
the Development will have on the Zone.
4. Term. This MOU shall be effective upon the date last signed and executed by the duly
authorized representatives of the Parties to this MOU and shall remain in full force and effect for
one year following that date, unless terminated earlier.
5. Agreement. The Parties agree that once the Developer has complied with all of the requirements
of Section 3 of this MOU, the parties shall attempt to negotiate a more detailed contractual
agreement, which will replace this MOU once agreed to and executed by the parties. If the
Developer does not comply with all of the requirements of Section 3 within the term of this MOU,
this MOU shall automatically terminate. In the event that this MOU is terminated, automatically or
otherwise, and not replaced by a new contractual agreement, the City shall immediately release
the hold on the funds and such funds shall be available for other projects under the Chaparral
Street Property Improvement Program.
6. Amendments or Modifications. No amendments or modifications to this MOU may be made,
nor any provision waived, unless the amendment or modification is made in writing and signed by
persons duly authorized to sign agreements on behalf of both Parties.
7. Notices.
a. Any required written notices shall be sent, certified mail, return receipt requested,
addressed as follows:
If to City:
City of Corpus Christi
Attn.: City Manager's Office
Tax Increment Reinvestment Zone#3
P.O. Box 9277
Corpus Christi, Texas 78469-9277
If to Developer:
Corpus Christi PATCH, Inc.
Attn: Monica M. Sawyer
402 Peoples Street, Suite 1A
Corpus Christi, Texas 78401
c. Notice is effective upon deposit in the United States mail in the manner provided above.
Page 2 of 4
8. Third Party Beneficiary Rights. The Parties do not intend to create in any other entity or
individual the status of a third party beneficiary, and this MOU shall not be construed to create
such status. The rights, duties, and obligations contained in this MOU shall operate only between
the Parties, and shall inure solely to the benefit of the Parties. The.provisions of this WOU are
intended only to assist the Parties in determining and performing their obligations under this
MOU. The Parties intend and expressly agree that only they shall have legal or equitable rights to
enforce this MOU or to seek any remedy arising out of either party's performance orfailure to
perform under this MOU.
9. Captions. The captions in this MOU are for convenience only and are not a part of this MOU. The
captions do not in any way limit or amplify the terms and provisions of this MOU.
10. Termination. The Parties may, by written agreement, terminate this MOU at any time. Either
Party may, with 30-days written notice, request that the MOU terminate. If the other Party does
not object within the 30 days, the MOU shall terminate immediately. If the other Party does object
within 30 days, the MOU shall continue until the end of the term unless otherwise terminated
earlier.
11. Assignment. The Developer may not assign all or any part of its rights, privileges, or duties
under this MOU without the prior written approval of the Board.
12. Severability. If any provision of this MOU is determined to be illegal or unenforceable, such
provision shall be fully severable, and the remainder of this MOU shall continue in full force and
effect.
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CITY OF CORPUS CHRISTI,
AS AGENT FOR IRZ :3
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City Manage lesigne-
Date: 573/V
ATTEST: CORPUS CHRISTI PATCH, INC.
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Reb cca Huerta nica M. Saw er
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City Secretary
Title: President
Date: g/3 it g Date: 7/10/18
APPROVED AS TO FORM:
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Aimee Alcorn-Reed
Assistant City
Attorney
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Page 4 of 4
TEXAS HISTORICAL COMMISSION
Town Square Initiative
Feasibility Study Application
The Town Square Initiative (TSI) provides specialized services for vacant and underutilized properties in
communities that are participating in one or more of the Texas Historical Commission's programs. These services
include a feasibility study to assist property owners and public officials in evaluating the redevelopment potential of
the property. The study typically includes a review of local development barriers and market conditions, a re-use
plan with renderings, an operating pro-forma and gap financing recommendations.
In order for a vacant or underutilized property to be considered for this specialized assistance, a property owner
must be able to establish in their request that there is sufficient local capacity to move a project forward. A
strong application will demonstrate an existing preservation ethic, a potential market to warrant a new use and
support from public officials for the redevelopment of the property. Applications are accepted on an ongoing
basis and endangered properties may receive priority.
Overview of the Town Square Initiative
The Town Square Initiative (TSI) is an effort by the Texas Historical Commission to proactively address the
challenge of vacant and underutilized buildings in historic downtowns. TSI operates as an affiliate of the Texas
Main Street Program, a preservation-based downtown revitalization effort with a 35-year track record. It is TSI's
objective to spur preservation-based projects so that local, small-scale and high-quality real estate development
becomes more achievable in historic Texas downtowns. Staff provides specialized project assistance for vacant and
underutilized properties with a focus on: .
• Conceptual design and financial feasibility studies analyzing redevelopment potential;
• Coordinated downtown planning strategies to address development barriers;
• Increasing and influencing the market exposure of available properties;and,
• Providing information, education, and resources on best practices that have had a positive impact on local
policy and decision-making.
Contact Us:
Town Square Initiative
Main Phone: 512-463-6092
Planning: Emily Koller- emily.koller(2i thc.state.tx.us
Economic Development: Brian O'Connor- brian.oconnor(a,thc.state.tx.us
Architecture: Riley Triggs -riley.triggsAthc.state.tx.us
Completed applications are to be emailed to all of the above addresses or mailed to:
Texas Historical Commission
Town Square Initiative
P.O. Box 12276
Austin,Texas 78711-2276
www.thc.state.tx.us/preserve/projects-and-programs/town-square-initiative
SECTION 1: BUILDING AND APPLICANT INFORMATION
To qualify for TSI services, applications must be for a property that is located in a community participating in one
or more of the agency programs (Certified Local Government,Main Street,Texas Historic Courthouse Preservation
Program, etc.). The subject property must be at least 50 years old, located within a historic commercial district and
should be industrial, commercial or mixed-use in nature. Applications for infill development on vacant land will be
considered on a case by case basis. Applications shall be jointly completed and signed by the individual property
owner and the Main Street manager or local government designee.
Property Owner Information
Last Name: First Name:
Phone: Email:
Classification of Applicant: ❑Individual ❑ Not-For-Profit❑For-Profit
Is the property owner also the project contact?❑Yes ❑No
If not,please provide the project contact information:
Last Name: First Name:
Phone: Email:
Project Information
Property Address:
Date of Construction: Building Square Footage:
Number of Floors:
Status: 0 Occupied ❑Vacant (Building) EAbandoned ❑Condemned ❑Vacant (Lot)
Building Designation (check all that apply):
❑Local Historic (Individual or District) ['National Register (Individual or Contributing to a District)
❑Recorded Texas Historic Landmark(RTHL) ❑State Archeological Landmark (SAL)
❑Other
Building Use (please describe historic and present use):
Local Government Designee
Last Name: First Name:
Phone: Email:
Name of City and County:
Title:
Participation in THC Programs (check all that apply): •
['Texas Main Street Program
0 Certified Local Government
❑Texas Historic Courthouse Preservation Program
0 Other
SECTION 2: PROJECT NARRATIVE
The property owner and Main Street manager or local government designee are to complete the following
questions. Please attach additional pages as necessary.
1. Project and Vision
Please describe what the property owner and/or the city would like to see for the project. What is the desired scale
and use? Why do you think a conceptual design and financial feasibility study can help achieve this project vision?
2. Photographs and Floor Plans-15 pts.
Please provide both historic and current photographs of the property. The historic photographs should show
the building in its original condition. The applicant should also provide approximately 10 photographs that reflect
current conditions at eye level and include both exterior and interior perspectives as well as a viewpoint from the
public right-of-way that includes adjacent properties. Photographs should include a brief narrative of modifications
over time and the applicant should specify what measures will be taken to preserve and protect the architectural
elements of the building. Also, this section should specify if floor plans are available. If so,please attach.
3. Building Condition-30 pts.
Please describe the current condition of the property and identify any previous structural studies, cost estimates,
etc. that have been completed.
4. Owner's Potential Financial Commitment-10 pts.
Explain the anticipated level of owner financial participation.
5. Public's Potential Financial Support- 15 pts.
Identify the types of possible public financial participation and how they may be used to support the project.
6. The Project's Sense of Urgency- 15 pts.
Please describe why the property is now ready for redevelopment and rehabilitation. For example, is there new
ownership, are you seeing increased interest in downtown residential, or is there a new zoning code that supports a
mix of uses?
7. Community Impact-15 pts.
Describe the anticipated impact the property's rehabilitation will mean for the downtown. Do you believe this
project can catalyze development around it?
SECTION 3: POLICIES, INCENTIVES AND DEMOGRAPHIC DATA
Has the city grown in population over the last five to ten years?❑Yes ❑No
City population current: City population 2010:
County population current: County population 2010:
Does the city have a master plan for downtown? ❑Yes ❑No
If yes,when was it adopted?
Has the downtown been part of a streetscape enhancement project? ['Yes ❑No
If yes,when and what was the public investment level?
Does the city have a historic preservation ordinance in place? ❑ Yes 0 No
Is there a designated historic district which requires design review in downtown? ❑Yes ❑No
What other overlays or regulatory requirements are in place downtown?
What is the average commercial rental rate (per sq ft) in downtown?
In the rest of the city?
What is the average residential rental rate (per sq ft) in downtown?
In the rest of the city?
What public funding sources are available to assist with downtown projects (check all that apply)?
❑ Hotel Occupancy Tax
❑ TIF or TIRZ
❑ Type A/B EDC Funds
❑ CDBG
0 Other (ident )
What financial incentives are available for downtown projects (check all that apply)?
❑ Façade grants
❑ Building improvement grants
❑ Sign grants
0 Development agreements
Waiver of permit fees
Low interest loans
Tax abatement
Other (ident )
Has the city or other partner completed a retail market analysis for downtown? ❑Yes 0 No
If yes,when and by whom?
Has the city or other partner completed a residential market analysis for downtown?❑Yes ❑No
If yes,when and by whom?
Do you feel there are regulatory barriers or other policy challenges that are deterring downtown
investment?❑Yes 0 No
If yes,please describe.
SECTION 4:APPLICANT PLEDGES
The property owner asserts the following with respect to the application:
• The property owner possesses the authority to allow TSI personnel access to the property for purposes of
providing Town Square Initiative services.
• To the best of the property owner's knowledge, the subject property is structurally sound and does not contain
any known hazardous materials or conditions.
• The property owner is prepared to commit financial resources to implement some or all of the
recommendations;or,may consider alternatives to redevelopment, such as sale of the property.
• The property owner will operate and maintain the facility in accordance with the local minimum building
standards as prescribed by the applicable federal, state, and local agencies for the maintenance and operation of
the property.
• It is the intention of TSI to determine a project's feasibility and to utilize any and all available resources as a
source of project financing. The property owner understands that this analysis will include: an evaluation of
project costs; recommendations that utilize any and all available sources of public funding; and,
recommendations that promote highest and best use of the property while preserving its historic character.
I understand that the information provided will be used to determine eligibility for the Texas Historical Commissions Town Square
Initiative and that any final reports or findings become the property of the Texas Historical Commission and may be used to promote the
services of the Town Square Initiative.
Signature of Property Owner/Joint Applicant Date
Signature of Local Government Designee /Joint Applicant Date
"Texas Historical Commission
P.O. Box 12276
Austin,TX 78711-2276
512.463.6100
TEXAS HISTORICAL COMMISSION
fax 512.475.4872 real places telling real stories
thc(dthc.state.tx.us
www.thc.state.tx.us