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HomeMy WebLinkAboutPACKET FEB 21 2012 shot wra oa~�v�eIIMt�z T $ * Z * A B REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS FEBRUARY 21,2012 1:30 P.M. CONSENT AGENDA * Approval of minutes—February 7,2012 * Confirmation of committee appointments Allen Perkins would be reappointed to the Convention and Tourism Advisory Board. The current term would expire October 8,2013. (Councilmember W. L. Pate,Jr.) Larue Smith would be reappointed to the Library Commission. The current term would expire February 15,2014. (Mayor Pro Tem Jamie D. Smith) Lauren Williams-Mason would be reappointed to the Community Development Advisory Committee. The current term would expire February 1,2014. (Councilmember Alan B. Coleman) Vick Nelson would be appointed to the Community Development Advisory Committee. The term would commence February 21,2012 and expire February 20,2014. (Councilmember Mike Getz) Lynn DeCordova would be appointed to the Community Development Advisory Committee. The term would commence February 21,2012 and expire February 20,2014. (Councilmember Mike Getz) A) Authorize the settlement of the lawsuit styled City of Beaumont v. Clifford Teasley;No. 09-10-00193-CV L RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the following appointments be made: Appointment Commission 112Wnning 9WIration of Ten of Term Vick Nelson Community Development Advisory Committee 02121/12 02/20/14 Lynn DeCordova Community Development Advisory Committee 02/21/12 02/20/14 THAT the following reappointments be made: Reay"nt meet Commission ftgimning 9Mrstion Of Term of T rm Allen Perkins Convention and Tourism Advisory Board 02/21/12 10/08/13 Larue Smith Library Commission 02/21/12 02/15/14 Lauren Williams-Mason Community Development Advisory Committee 02/21/12 02/01/14 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - A RICH WITS OPPORTUNITY BE.A1U-M,,0N'* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attomejet MEETING DATE: February 21, 2012 REQUESTED ACTION: Consider a resolution authorizing the settlement of the lawsuit styled City of Beaumont v. Clifford Teasley;No. 09-10-00193-CV. RECOMMENDATION Administration recommends approval of a resolution authorizing the settlement of a lawsuit styled City of Beaumont v. Clifford Teasley in the amount of$145,000. BACKGROUND This matter was most recently presented and discussed in Executive Session held on February 7, 2012. The City Attorney is requesting authority to settle this suit. BUDGETARYIMPACT There are sufficient funds in the General Fund to pay the settlement amount. RESOLUTION NO. WHEREAS, the lawsuit styled City of Beaumont v. Clifford Teasley, Cause No. 09- 10-00193-CV, was discussed in Executive Session properly called and held Tuesday, February 7, 2012; and, WHEREAS, the Council desires to authorize the settlement of the lawsuit styled City of Beaumont v. Clifford Teasley, Cause No. 09-10-00193-CV; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Attorney be, and he is hereby, authorized to settle the lawsuit styled Cily of Beaumont v. Clifford Teasley, Cause No. 09-10-00193-CV, for the sum of One Hundred Forty-Five Thousand Five Hundred Dollars ($145,000); and, BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute all documents related to settlement of the lawsuit. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - Oak#&V�m A a nu i T * 9 X A 0 0 REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS FEBRUARY 21,2012 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-5/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider approving a contract for the purchase of asphaltic concrete for use by the Streets and Drainage Division 2. Consider authorizing the City Manager to amend an Interlocal Agreement with Jefferson County Drainage District No. 6 3. Consider approving a contract for the purchase of cement slurry for use by the Streets and Drainage Division 4. Consider authorizing ITEX Property Management,LLC to submit an application to the Texas Department of Housing and Community Affairs for the proposed Beaumont Place of Grace,a proposed Low Income Housing Tax Credit project and offering preliminary support for the project 5. Consider authorizing MGroup Holdings, Inc. to submit an application to the Texas Department of Housing and Community Affairs for the proposed Briarbend,a proposed Low Income Housing Tax Credit project and offering preliminary support for the project WORKSESSION * Review and discuss Historic and Overlay Districts r COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment(Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: James Mathews v. City of Beaumont, Texas * Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Code, to wit: 625 Orleans Street—Hotel Beaumont Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. 1 February 21,2012 Consider approving a contract for the purchase of asphaltic concrete for use by the Streets and Drainage Division RICH WITH orroRTUNITY k T • Z • g • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager Q PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: February 21, 2012 REQUESTED ACTION: Council consider authorizing the award of a contract for asphaltic concrete. RECOMMENDATION The administration recommends the award of a six (6) month contract to APAC-Texas, Inc., of Beaumont, with an estimated total expenditure of$872,775. BACKGROUND Bids were requested for a six(6)month contract for asphaltic concrete to be used by the Streets and Drainage Division. Cold laid asphaltic concrete is used for repairing potholes and small sections of street, while hot laid asphaltic concrete is used for repairs to larger street sections. It is estimated that approximately 12,000 tons of hot laid asphaltic concrete and 600 tons of cold laid asphaltic concrete will be used during the term of the contract. Four(4) vendors were notified with only APAC-Texas responding with a bid as reflected below. Specifications requested pricing for both plant pickup by City personnel and job site delivery by the vendor. The bidder met all product requirements specified and has previously held the contract satisfactorily. Six Month Contract for Asphaltic Concrete February 21, 2012 Page 2 The contract provides for the vendor to furnish asphaltic concrete at the following fixed unit prices: Hot Laid Concrete $65.55/ton $72.00/ton Cold Laid Concrete $76.75/ton $81.50/ton BUDGETARYIMPACT Funds for the cold laid concrete are available in the Streets and Drainage Division's operating budget. Funds are available in the Capital Program for the hot laid concrete which is used for street rehabilitation. AMU %W11 r, CITY OF BEAUMONT - PURCHASING DIVISION BEAUMR.J. Hollar - Buyer 11 _. ....,,,.. T S i • A - S 409-880-3758 rhollarCci.beaumonUx.us BID TABULATION: Six(6) Month Contract for Road Materials - Asphaltic Concrete BID No. RF01 12-1 1 OPENING DATE: Thursday, February 9, 2012 Vendor APAC- EXAS City / State BEAUMONT ITEM Qty Unit PrIZe Total (Tons) arlt c up .5 10elivered Pa n"tc $76.75 0 Delivered 300 $81.501 $24,450.00 TOTAL HOT MIX/COILD LAID $47,475.001 ITOTAL BID , RESOLUTION NO. WHEREAS, bids were solicited for a six (6) month contract for the purchase of asphaltic concrete for use by the Public Works Department, Streets and Drainage Division; and, WHEREAS, APAC-Texas, Inc, of Beaumont, Texas, submitted a bid in the estimated amount of$872,775 in the unit amounts shown below: DESCRIPTION PLANT PICKUP JOB SITE DELIVERY Hot Laid Concrete $65.551ton $72.00/ton Cold Laid Concrete $76.75/ton $81.50/ton and, WHEREAS, City Council is of the opinion that the bid submitted by APAC-Texas, Inc., should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by APAC-Texas, Inc., for a six (6) month contract for the purchase of asphaltic concrete for the Public Works Department, Streets and Drainage Division, in the estimated amount of$872,775 pursuant to the unit amounts shown above be accepted by the City of Beaumont. BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with APAC-Texas, Inc. for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - 2 February 21,2012 Consider authorizing the City Manager to amend an Interlocal Agreement with Jefferson County Drainage District No. 6 RICH WITH OPPORTUNITY REAUMON* T 0 Z • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart,Public Works Director MEETING DATE: February 21, 2012 REQUESTED ACTION: Council consider authorizing the City Manager to amend an Interlocal Agreement with Jefferson County Drainage District No. 6. RECOMMENDATION Administration recommends approval. BACKGROUND Drainage District No. 6 recently completed a drainage project in the Woodland Acres area located north of Highway 69 between Helbig and Plant Roads. The $4,667,300 project was created by a grant on a(75 0/o/25%)reimbursement basis with FEMA. During the construction process,damage was done to portions of Donna, and Margaret Lanes, Comstock, and Garner Roads. The proposed Amendment is designed to formalize the cost sharing of these street repairs. The City will design the necessary repairs,utilize City and Contractor manpower and equipment, and purchase the materials to complete the repairs. BUDGETARYIMPACT Drainage District No. 6 will reimburse the City for seventy-five (75%) of the total cost of the street repairs, which are estimated at $285,587. The City's share is available in the Public Works Streets and Drainage Division's annual budget and the Street Rehabilitation Program, which is funded in the Capital Program. RESOLUTION NO. WHEREAS, on July 14, 2009, the City Council passed Resolution No. 09-300 authorizing the City Manager to execute an Interlocal Agreement with Jefferson County Drainage District No. 6 for the Downtown Event Center and Lake Park Project, and, WHEREAS, Item No. 14 of the Interlocal Agreement allowed the City to grant an easement to Jefferson County Drainage District No. 6 of approximately 17.7 acres of land for the purpose of a drainage project to help relieve flooding in the Woodland Oaks, Woodland Acres, and Woodland Estates subdivisions; and, WHEREAS, during the construction of the drainage project, damage occurred to portions of streets owned and maintained by the City of Beaumont; and, WHEREAS, the estimated cost of repairs is $285,587.00; and, WHEREAS, Jefferson County Drainage District No. 6 will reimburse the City of Beaumont in the estimated amount of$214,190.00, which is 75% of the total cost of the repairs, WHEREAS, an amendment to the Interlocal Agreement with Jefferson County Drainage District No. 6 is required to formalize the cost sharing of street repairs on Donna Lane, Margaret Lane, Comstock Road and Garner Road, as described in Exhibit "A," attached hereto and made a part hereof for all purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and THAT the City Manager be and he is hereby authorized to execute an amendment to the Interlocal Agreement with Jefferson County Drainage District No. 6 to formalize the cost sharing of street repairs on Donna Lane, Margaret Lane, Comstock Road and Garner Road as described in Exhibit'A,"attached hereto and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames- INTERLOCAL AGREEMENT (WOODLAND ACRES DETENTION PROJECT) AMENDMENT STATE OF TEXAS COUNTY OF JEFFERSON This agreement is made in addition to Items 1-14 on the previous Interlocal Agreement dated July 22, 2009, and attached hereto for reference, by and between the City of Beaumont, a home rule City of the State of Texas (hereinafter called"City") and Jefferson County Drainage District No. 6, a special district of the State of Texas (hereinafter called "District') under authority of the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code. The City and the District agree as follows: WITNESSETH 15. During the course of constructing drainage infrastructure and hauling material excavated from the Woodland Acres Detention Project, damage occurred to portions of streets owned and maintained by the City of Beaumont; 16. In order to repair damage to portions of Margaret Lane,Donna Lane, Garner Road, and Comstock Road, this Interlocal Agreement is hereby amended to formalize the cost sharing of these street repairs. The lengths and limits of these repairs are shown on the attached Street Rehabilitation Sheet. 17. The City will design the necessary repairs, utilize City manpower and equipment, purchase the materials, and hire and pay contractors to make the repairs; 18. Upon completion of the repairs to sections of the agreed upon streets, the City will invoice the District for one hundred percent (100%)of the costs of the repairs up to $285,587.00. The invoice will include all back-up documentation that justifies the invoice amount, such as material invoices, equipment use costs, labor costs, and contractor invoices. The District will then reimburse the City for seventy-five percent (75%) of the total costs invoiced. The City will be responsible for the twenty-five percent (25%) local share match. The twenty-five percent (25%) can be in-kind, or by EXHIBIT "A" INTERLOCAL AGREEMENT Woodland Acres Detention Project—Amendment No.2 City of Beaumont and Jefferson County Drainage District No.6 Page 2 purchase of material. All documentation for expenses must be in a format accepted by the Texas Water Development Board (TWDB) as the administrator of this grant for FEMA. Any amount reimbursed to the City by the District and later disallowed by TWDB/FEMA, or as a result audit will be the sole responsibility of the City; and 19. The total reimbursement amount to be paid to the City by the District shall not exceed $214,190.00, which is 75% of the estimated total, as shown on the attached Street Rehabilitation Sheet. Executed this day of ,2012. ATTEST: CITY OF BEAUMONT By: By: City Clerk City Manager ATTEST: Jefferson County Drainage District No.6 By: By: Vice President/Secretary President Estimated Cost for Street Rehabilitation for Woodland Acres Comstock Garner Helbig 5100 20 11333 $116,875 $11,220 $39,780 $26,067 $193,942 Garner Concord Comstock 875 20 1944 $20,052 $1,925 $6,825 $4,472 $33,274 Margaret Curve Donna/DE 330 18 660 $6,806 $653 $2,317 $1,518 $11,294 Donna Rose Avie 683 17 1290 $13,304 $1,277 $4,528 $2,967 $22,077 City Labor& Equipment Estimated Cost $25,000 75% $214,190 25% $71,397 / INTERLOCAL AGREEMENT AMENDMENT STATE OF TEXAS COUNTY OF JEFFERSON This agreement is made by and between the City of Beaumont, a home rule City of the State of Texas (hereinafter called "City") and Jefferson County Drainage District No. 6, a special district of the State of Texas (hereinafter called "District") under authority of the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code. The City and the District agree as follows: WITNESSETH 1. The City and the District have agreed to construct the Downtown Event Center Lake and have further agreed to share the workload of this project on the following basis: 2. The District agrees to furnish labor and equipment to grub trtes and brush from the area determined by the City of Beaumont to be the Downtown Event Center Lake. 3. The District agrees to furnish labor and equipment to remove stumps from the area and load such on City's trucks. 4. The District agrees to excavate the lake to the City's design. S. The District agrees to make a "one call" due to the fact that the Drainage District No. 6 will be doing the excavation work 6. The District agrees to furnish 2 each 40 ton articulating off-road trucks and labor to relocate fill to adjacent designated area. 7. The District agrees to install all pipes and culverts with the City providing said pipes, culverts and, and backfill materials. INTERLOCAL AGREEMENT—ADMENDMENT Page 2 .� 8. The City will be responsible for preparation of engineering plans and specifications for the project. 9. The City will be responsible for any necessary permitting and published notifications of road closures and traffic detours. 10. The City will be responsible for providing labor and equipment necessary to cut down trees from the project area. 11. The City will be responsible for providing labor and trucks to haul all brush offsite. 12. The City will be responsible for relocating all utilities. 13. The City will be responsible for furnishing any pipe and culverts necessary for this project and will be responsible for furnishing all backfill material to cover installed pipes and culverts. 14. In exchange for the excavation of the Downtown Event Center Lake, the City agrees to grant an easement of approximately 6.39 acres to the District for Ditch No. 900, which the District has been maintaining. The City agrees to grant an easement of approximately 17.7 acres from the land donated by M.L. Lefler, in connection with the Woodland Acres Detention Project, to help relieve flooding in the Woodland Oaks,Woodland Acres, and Woodland Estates subdivisions. Executed this _ day ofv ,, , 2009 A CITY OF BEAUMONT By. By. City Clerk City Manager ATTEST: Jefferson County Drainage District No. 6 By: IA4WA B . Vice President/Sicritar§ President 3 February 21,2012 Consider approving a contract for the purchase of cement slurry for use by the Streets and Drainage Division RICH WITH OPPORTUNITY BEAUMON* T • R • X * A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: February 21, 2012 REQUESTED ACTION: Council consider authorizing the award of a contract for cement slurry. RECOMMENDATION The administration recommends the award of an annual contract to Southern Cement Slurry, Inc. of Porter, Texas, in an estimated total amount of$179,000. BACKGROUND Bids were requested for an annual contract for cement slurry to be used by the Streets and Drainage Division. Cement slurry is used to stabilize soil in road repair and construction prior to the laying of asphalt. The present method involves the manual application of 75 lb. bags of cement over an area then applying water. Cement slurry is applied by distributor truck in liquid form. The cost of cement presently used is approximately$8.00 per bag or$213 per ton. The use of pre-mixed slurry will reduce material costs approximately $34,000 per year. Four(4)vendors were notified with only Southern Cement Slurry, Inc., responding. The bidder meets all product requirements specified, and provides materials to TxDOT for highway construction. BUDGETARY IMPACT Funds are available in the Capital Program for street rehabilitation. s"M WSW I arsessswxws BERJ.Aollar-ftwrH T , s x . s , s 409-880-3758 dylaradbenumoreLbLus BID TABUGA77ON:Amod Cw*wdfair Ca wW Mu iy BID No. BPOI12-10 OPENING DATE:Tkwsdity, Fly 9,2012 Vendor Southern Cement Slurry Ci /State iln&nOO Total Cement Shm,Do k- yenV 1000 No Response:APAC, TransitMix, Knife River RESOLUTION NO. WHEREAS, bids were solicited for an annual contract for the purchase of cement slurry for use by the Public Works Department, Streets and Drainage Division; and, WHEREAS, Southern Cement Slurry, Inc, of Porter, Texas, submitted a bid in the amount of$179 per ton for an estimated cost of$179.000; and, WHEREAS, City Council is of the opinion that the bid submitted by Southern Cement Slurry, Inc., of Porter, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the bid submitted by Southern Cement Slurry, Inc., of Porter, Texas, for an annual contract for the purchase of cement slurry for use by the Public Works Department, Streets and Drainage Division, in the amount of $179 per ton for an estimated cost of $179,000 be accepted by the City of Beaumont. BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby authorized to execute a contract with Southern Cement Slurry, Inc. for the purposes described herein. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - 4 February 21,2012 Consider authorizing ITEX Property Management, LLC to submit an application to the Texas Department of Housing and Community Affairs for the proposed Beaumont Place of Grace, a proposed Low Income Housing Tax Credit project and offering preliminary support for the project RICH WITH OPPORTUNITY BEAUW* T g . X 8 City Council Agenda Item TO: City Council FROM: Kyle Hayes,City Manager PREPARED BY: Chris Boone,Community Development Director MEETING DATE: February 21,2012 REQUESTED ACTION: Council consider a resolution authorizing ITEX Property Management, LLC to submit an application to the Texas Department of Housing and Community Affairs (TDHCA) for the proposed Beaumont Place of Grace,a proposed Low Income Housing Tax Credit (LIHTC) project and offering preliminary support for this project. RECOMMENDATION The Administration recommends approval. BACKGROUND ITEX Property Management,LLC is requesting authorization to submit an application to the Texas Department of Housing and Community Affairs(TDHCA)for use of LIHTC funds for the construction of a eighty(80)unit senior housing development at 4400 Warren Street. Currently, the area of the proposed development has more than twice the state average of subsidized housing units per capita. As such,additional subsidized units would not be allowed in this area unless the proposed development and the allocation of tax credits is supported by the City Council. Approval of this resolution would allow TDHCA to consider funding Beaumont Place of Chace,as required by§50.8(2)(A)of the Texas Administrative Code. In addition,IM Property Management,LLC has submitted a request for a$160,000 loan from the HOME program allocation,providing for local participation. This request may be submitted to City Council for consideration at a future date. BUDGETARY EWPACT None at this time,but use of HOME funds may be considered at a future date. BEAUMONT GRACE SENIOR MOUSING, LP PO BOX 1363,NEDERLAND,TEXAS 77627 409-72440201 409-721-6603(F) February 10,2012 Christopher S. Boone,AICP Community Development Director City of Beaumont 801 Main,Suite 201 Beaumont,Texas 77701 (409)880-3100 (409)SW3133 Fax cboone@ci.beaumont.tx.us RE: Beaumont Place of Grace HOME Funds Application Request Beaumont Grace Senior Housing,LP is requesting permanent HOME funds from the City of Beaumont in the amount of$160,000. The teens will be for 25 years at a rate at or below the Applicable Federal Rate(AFR)payable from surplus cash as determined by the U.S.Department of HUD at thb time of closing. This source of funds will be used to pay cotistcuction hard costs for the new construction of eighty(80)units at the elderly designated Place of Grace Apartments located at 4400 Warren Street. If we are awarded Housing Tax Credits from TDHCA,then we will complete the necessary environmental clearances for the project. Next,we will close on our construction,financing in December 1,2012 and begin construction immediately. Your permanent source of funds would be expected to be disbursed at the closing of the permanent financing in February of 2012. In order to meet the necessary requirement to the Texas Department of Housing and Community Affairs(TDHCA),we request that you review provide us a letter in return confirming that the application has been received and will be processed. In addition,you must confirm the terms that we are requesting and that the funds have not been previously provided to the City of Beaumont by the applicant or an affiliate. Sincerely, Christopher A.Akbari Authorized Representative. v � a Fes : '8 r u = ► 9 WT R < w w. ii! t .y M1. � a�. p _, x RESOLUTION NO. WHEREAS, the City Council of the City of Beaumont(the"City")has been apprised of the pending application for tax credits (the "Application") filed for the new construction of Beaumont Place of Grace (the "Development"), a proposed one hundred twenty-eight (128) unit senior housing development located at 4400 Warren Street, a Low Income Housing Tax Credit (LIHTC) project through the Texas Department of Housing and Community Affairs ("TDHCA"); and, WHEREAS, the City is a municipality that has more than twice the state average of residential units per capita supported by tax credits or private activity bonds at the time the 2012 Application Round begins,and therefore, pursuant to Section 50.8(2)(A)of the Texas Administrative Code, the TDHCA requires the express prior support of the governing body of the City and a written statement of support of the allocation of Housing Tax Credits in order for the Applicant to be awarded an allocation of Housing Tax Credits by TDHCA; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT THAT: SECTION 1. The statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted. SECTION 2. This resolution in no way commits the City of Beaumont to provide any funding for the proposed project. SECTION 3. This project is still subject to any and all zoning, construction and all applicable regulations of the City of Beaumont and will be required to comply with same. SECTION 4. The governing body of the City hereby offers preliminary support for the construction of the Development within the City. SECTION 5. The governing body of the City hereby supports the allocation of Housing Tax Credits for the Development. SECTION 6. The governing body of the City hereby acknowledges that this resolution shall constitute a written statement of support for the construction of the Development as required by Section 50.8(2)(A) of the Texas Administrative Code. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - 5 February 21,2012 Consider authorizing MCrroup Holdings, Inc. to submit an application to the Texas Department of Housing and Community Affairs for the proposed Briarbend, a proposed Low Income Housing Tax Credit project and offering preliminary support for the project RICH WITH OPPORTUNITY B",E' T • Z . z • A s City Ccn� Ada Its TO: City Council FROM: Kyle Hayes,City Manager G)� PREPARED BY: Chris Boone,Community Development Director MEETING DATE: February 21,2012 REQUESTED ACTION: Council consider a resolution authorizing MGroup Holdings, Inc. to submit an application to the Texas Department of Housing and Community Affairs(TDHCA)for the proposed Briarbend, a proposed Low Income Housing Tax Credit (LIHTC) project and offering preliminary support for this project. RECOMMENDATION The Administration recommends approval. BACKGROUND MGroup Holdings,Inc. is requesting authorization to submit an application to the Texas Department of Housing and Community Affairs(TDHCA)for use of LIHTC funds for the construction of a forty(40)single-family housing unit development as part of the Sienna.Trails community,located off of Concord. Currently,the area of the proposed development has more than twice the state average of subsidized housing units per capita. As such,additional subsidized units would not be allowed in this area unless the proposed development and the allocation of tax credits is supported by the City Council. Approval of this resolution would allow TDHCA to consider funding Briarbend,as required by §50.8(2XA)of the Texas Administrative Code. In addition,Mgroup Holdings,Inc.has submitted a request for an$88,000 loan from the HOME program allocation,providing for local participation. This request may be submitted to City Council for consideration at a future date. BUDGETARY IMPACT None at this time,but use of HOME funds may be considered at a future date. MGROUP January 17,2012 Mr.Christopher Boone,AICP Community Development Director City of Beaumont 801 Main,Suite 201 Beaumont,Texas 77701 RE: City Support Resolution&Authorization to Make Application For Housing Tax Credits Proposed Briarbend Single Family Rental Community 6500 block Sienna Trails Dr.,Beaumont,Texas Dear Mr.Boone, In accordance with the 2012-2013 QAP for Housing Tax Credits as administered by the Texas Department of Housing&Community Affairs,we hereby request the support of the City in our efforts to build(40) new single family houses as part of our Sienna Trails master development plan.This new phase will offer the citizens of Beaumont the unique opportunity to live in high quality rental housing in a high opportunity area.Briarbend would be the fourth phase in the Sienna development and would represent over 40 million dollars of economic activity at Sienna. To qualify for support under the QAP,we must have a resolution of support from the City Council that also acknowledges the twice the state average rule,and that MGroup Holdings is authorized to submit an application for housing tax credits.I have attached an example of an acceptable resolution template from TDHCA for your use and consideration.Please note that the resolution is required before March 1,2012. On behalf of MGroup,I want to thank you again for all of the assistance and support the City has given us over the years as we develop the Sienna project.We are anxious to see the Concord Road alignment begin!Your staff and the building department have been a pleasure to work with and we look forward to working together again on Briarbend. Sincerely, MGROUP H C. Mark D.Musemeche MDM/oe cc: Mayor Becky Ames Council Member Alan B.Coleman MGROUP+ARCHITECTS.INC MGROUP HOLDINGS,INC MGROUP,LLC 1013 Van Buren,Houston,Texas 77019 • 713.522.4141 • 713.522.9775(F) mgroupincC&sbcglobal.net MGROUP January 17,2012 Mr.Christopher Boone,AICP Community Development Director City of Beaumont 801 Main,Suite 201 Beaumont,Texas 77701 RE: Proposed Briarbend Single Family Rental Community 6500 block Sienna Trails Dr., Beaumont,Texas Dear Mr. Boone, MGroup Holdings,Inc.is requesting from the City of Beaumont a HOME Loan in the amount of$88,000 with a term of at least 3 years and at an interest rate of 2%. The interest rate cannot exceed 100 basis points below market,which we estimate to be 7.5%. The HOME funds will be used to pay for construction costs in connection with 40 single family affordable rental homes whose rents will qualify under the HOME Program. This new rental development will also include housing tax credits which require confirmation of the HOME loan commitment on or before August 1,2012. Actual funding of the HOME loan proceeds is requested before the end of this year,but can also be funded up through June of 2013. In order for us to meet this necessary application requirement of TDHCA,we request that you provide us with a letter confirming that the application for HOME funds has been received and that the City expects to have HOME funds available until the cycle ends and that awards will be announced by August 1St of the current program year. TDHCA also requires that the City confirm in the response letter that the HOME funds, if awarded,were not first provided to the City by the applicant,developer,consultant, related party or individual or entity acting on behalf of the proposed application. Sincerely, MG/ROUP HO S,INC. L Mark D.Musemeche MDM/oe MGROUP+ARCHITECTS,INC MGROUP HOLDINGS,INC MGROUP.LLC 1013 Van Buren,Houston,Texas 77019 • 713.522.4141 • 713.522.9775(F) • mgroupinc @sbcglobal.net RESOLUTION NO. WHEREAS, the City Council of the City of Beaumont(the"City")has been apprised of the pending application for tax credits (the "Application") filed for the new construction of Briarbend (the "Development"), a proposed forty (40) single-family housing unit development located at the 6500 block of Sienna Trails Drive, a Low Income Housing Tax Credit (LIHTC) project through the Texas Department of Housing and Community Affairs ("TDHCA"); and, WHEREAS, the City is a municipality that has more than twice the state average of residential units per capita supported by tax credits or private activity bonds at the time the 2012 Application Round begins,and therefore, pursuant to Section 50.8(2)(A)of the Texas Administrative Code, the TDHCA requires the express prior support of the governing body of the City and a written statement of support of the allocation of Housing Tax Credits in order for the Applicant to be awarded an allocation of Housing Tax Credits by TDHCA; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT THAT: SECTION 1. The statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted. SECTION 2. This resolution in no way commits the City of Beaumont to provide any funding for the proposed project. SECTION 3. This project is still subject to any and all zoning, construction and all applicable regulations of the City of Beaumont and will be required to comply with same. SECTION 4. The governing body of the City hereby offers preliminary support for the construction of the Development within the City. SECTION 5. The governing body of the City hereby supports the allocation of Housing Tax Credits for the Development. SECTION 6. The governing body of the City hereby acknowledges that this resolution shall constitute a written statement of support for the construction of the Development as required by Section 50.8(2)(A) of the Texas Administrative Code. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 21st day of February, 2012. - Mayor Becky Ames - y + �r -n3°mi t 3 �g t E Amw VV it y ,