DEPARTMENT: Center City Development and Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: District 2
SUBJECT:
Authorizing Good Samaritan Veterans Outreach and Transition Center Funding
SUMMARY:
This ordinance authorizes a 2nd amendment to the Funding Agreement with the Alamo Community College District to increase funding up to $5,070,426; authorizes the execution of a TIRZ agreement in the amount of $950,000 from the Inner City TIRZ; authorizes the acceptance of a Greehey Family Foundation Grant in the amount of $500,000; and authorizes acceptance and execution of a Tri-Party agreement with San Antonio Housing Agency and the Alamo Community College District for $600,000 in HUD Choice funds for the reconstruction of the Good Samaritan Veterans Outreach and Transition Center located on the 1600 block of Dakota Street in Council District 2.
BACKGROUND INFORMATION:
In December 2011, City Council approved a partnership with Alamo Community College District to renovate the underutilized historic Good Samaritan Hospital building to provide veteran services to the community. Per the agreement, the City would acquire and provide funding to renovate the historic building. St. Philip's College will manage the construction and lease the property from the City to operate the Veterans Outreach and Transition Center facility, providing services to veterans in the region.
The City authorized $2,000,000 in FY 2010 Certificates of Obligation, $1,000,000 in Section 108 funds, and $167,679 in the City’s Inner City Incentive Fund to acquire the parcels, demolish ancillary structures, and renovate the facility. The project received additional contributions from Citibank in the amount of $15,000 and the San Antonio Conservation Society in the amount of $12,500 for a total of approximately $3.2 million. In 2013, Alamo Colleges issued and received bids for renovation of the facility. The lowest most responsive bid brought the total cost of the project to $4,336,890. Since funds were not identified to move forward the prime contractor released their interest.
ISSUE:
In October 2015, Alamo Colleges again released an invitation to bid. They accepted a lowest most responsive bid from SPAW Glass Construction for $6,256,000 including contingency which brings the total project cost to $7,497,179 for acquisition, construction and renovation, contingency and furniture fixtures and equipment.
The City has worked with Alamo Colleges to commit resources necessary to begin renovations including securing a $1,000,000 earmark from the State of Texas, $950,000 Resolution from the Inner City TIRZ Board, $500,000 in FY 2016 Certificates of Obligation, $500,000 grant from the Greehey Family Foundation, and $450,000 from St. Philips College for furniture fixtures and equipment.
In addition to securing funds, Alamo Colleges received a preliminary commitment of $600,000 from the Choice Implementation Grant from the San Antonio Housing Authority. The Choice funds are conditional upon final approval from the U.S. Department of Housing and Urban Development.
To fully fund the remaining gap, staff recommends utilizing $302,747 in available Inner City Incentive Funds (ICIF). In the event the $600,000 in U.S. Department of Housing and Urban Development funds are not approved, the City will utilize up to $902,747 in ICIF funds primarily for construction contingency. If contingency funding is not utilized, ICIF funding shall be released back to the City.
To secure funding resources, this ordinance shall provide for a 2nd Amendment to the existing funding agreement between the City and Alamo Colleges to include the $500,000 previously allocated in FY 2016 Certificates of Obligation, $500,000 grant from the Greehey Family Foundation, and up to $902,747 in ICIF funds. Additionally, this action shall authorize the City enter into a separate Inner City TIRZ agreement in the amount of $950,000. Finally the City will enter into a Tri-party Interlocal agreement with Alamo Colleges and the San Antonio Housing Authority upon final approval from the U.S. Department of Housing and Urban Development for the $600,000 in Choice funding.
ALTERNATIVES:
City Council can elect not to approve the Funding Agreement 2nd Amendment, TIRZ agreement, and/or Tri-Party Agreement. Without this funding, the VOTC will be required to find additional funding and incentives to complete the project and will jeopardize additional identified funding for the project which would delay or cancel construction of the project.
FISCAL IMPACT:
This ordinance will authorize an amendment to the Funding Agreement and execution of a separate Inner City TIRZ agreement where the City will provide up to $6,020,426 for the construction of the VOTC. Funding for this agreement is described in Attachment I. The ordinance will authorizing execution of a Tri-Party agreement with San Antonio Housing Agency and the Alamo Community College District for $600,000 in HUD Choice funds for the reconstruction of the Good Samaritan Veterans Outreach and Transition Center located on the 1600 block of Dakota Street in Council District 2.
RECOMMENDATION:
Staff recommends authorizing a 2nd amendment to the Funding Agreement with the Alamo Community College District to increase funding up to $5,070,426; authorizing the acceptance of a Greehey Family Foundation Grant in the amount of $500,000; authorizing an ordinance for execution of a TIRZ agreement in the amount of $950,000 from the Inner City TIRZ; and authorizing execution of a Tri-Party agreement with San Antonio Housing Agency and the Alamo Community College District for $600,000 in HUD Choice funds for the reconstruction of the Good Samaritan Veterans Outreach and Transition Center located on the 1600 block of Dakota Street in Council District 2.