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Agenda - City of Dallas

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Exhibit A<br />

Downtown Connection TIF District<br />

FY 2011 Annual Report<br />

• On June 22, 2011, <strong>City</strong> Council approved Resolution No. 11-1748, authorizing<br />

(1) a development agreement with Ricchi 1954 Development Group, LLC, to<br />

dedicate future TIF revenues for eligible project costs related to environmental<br />

remediation and demolition, façade restoration, street and utility improvements<br />

and an Economic Development TIF Grant to provide funding for the<br />

redevelopment <strong>of</strong> 1954 Commerce Street (Former <strong>Dallas</strong> Public Library building)<br />

located in Tax Increment Financing Reinvestment Zone Eleven (Downtown<br />

Connection TIF District); and (2) the Downtown Connection TIF District Board <strong>of</strong><br />

Directors to dedicate an amount not to exceed $3,020,350 from future Downtown<br />

Connection TIF District revenues, a portion in the form <strong>of</strong> a TIF Economic<br />

Development Grant, in accordance with the development agreement - Not to<br />

exceed $3,020,350.<br />

• On June 22, 2011, <strong>City</strong> Council approved Resolution No. 11-1749, authorizing a<br />

resolution declaring the intent <strong>of</strong> Tax Increment Financing District Reinvestment<br />

Zone Number Eleven (Downtown Connection TIF District) to reimburse Ricchi<br />

1954 Development Group, LLC up to $3,020,350, for TIF-eligible project costs<br />

pursuant to the development agreement with Ricchi 1954 Development Group,<br />

LLC.<br />

• On June 22, 2011, <strong>City</strong> Council approved Resolution No. 11-1756, authorizing<br />

(1) the acceptance <strong>of</strong> $7,600,000 <strong>of</strong> Community Development Block Grant<br />

Section 108 Guaranteed Loan Program Funds (Section 108 Loan Funds) from<br />

the U.S. Department <strong>of</strong> Housing and Urban Development (HUD) for the<br />

Continental Building downtown commercial building conversion project; (2) a loan<br />

agreement with FC <strong>Dallas</strong> TIF, LLC (the Section 108 Borrower) in the amount <strong>of</strong><br />

$7,600,000 <strong>of</strong> Section 108 Loan Funds for the Continental Building project (the<br />

Section 108 Borrower Loan) including conversion <strong>of</strong> the vacant commercial<br />

building at 1810 Commerce Street into 199 apartment units with 40 units for<br />

individuals and families with incomes at 80% or less <strong>of</strong> Area Median Family<br />

Income as established by HUD, and a loan interest reserve; (3) the <strong>City</strong><br />

Manager, to enter into all necessary agreements with HUD including a Funding<br />

approval/Agreement, a Fiscal Agency Agreement, a promissory Note, up to two<br />

letters <strong>of</strong> agreement, for establishment <strong>of</strong> a custodial account, documents<br />

relating to additional security if required by HUD, and a letter requesting advance<br />

funds for interim financing; (4) amendments to Resolution No. 10-0372,<br />

previously approved on January 27, 2010, to modify the loan terms <strong>of</strong> the<br />

$2,000,000 Downtown Connection Tax Increment Financing (TIF) District<br />

Affordable Housing Loan (the TIF Borrower Loan) with FC Continental Landlord,<br />

LLC by extending the maturity date <strong>of</strong> such loan to be coterminous with the<br />

senior project loan (described below) and by changing the payment terms to<br />

coincide with the new maturity date and to agree to limited rights <strong>of</strong> enforcement<br />

in addition to subordination <strong>of</strong> the <strong>City</strong>’s lien to the senior loan with Forest <strong>City</strong><br />

Capital Corporation, insured by HUD under the 221(d)(4) insurance program (the<br />

Senior Loan); (5) a loan agreement with FC Continental Landlord, LLC in the<br />

amount <strong>of</strong> $2,000,000 from Downtown Connection TIF District Funds; (6) the <strong>City</strong><br />

17

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