Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 8-14-2023
Requesting Agency:
Division:
Subject Matter Expert Name: Doug Selbee
Email Address: doug.selbee@denvergov.org <mailto:doug.selbee@denvergov.org>
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Performance Loan Agreement with Inner City Health Center to finance the renovation of the existing health care facility located at 3800 North York Street, in Council District 9.
Approves a performance loan with Inner City Health Center for $790,000 and ending 6-30-2024 to finance the renovation of their existing healthcare facility located at 3800 North York Street, in Council District 9 (OEDEV-202263936). The last regularly scheduled Council meeting within the 30-day review period is on 9-18-2023. The Committee approved filing this item at its meeting on 8-16-2023.
body
Affected Council District(s) or citywide?
Council District 9
Contract Control Number:
OEDEV-202263936
Vendor/Contractor Name (including any “DBA”):
Inner City Health Center
Type and Scope of services to be performed:
Funds will be used to finance the renovation of Inner City Health Center’s existing healthcare facility located at 3800 N. York Street in Denver’s Clayton Neighborhood. $790k in CDBG-CV funds will be used for construction hard costs which includes:
$250k - Foundation
$100k - Reinforcing, Steel/Structural Concrete
$250k - Framing/Building Walls
$140k - Electrical
$50k - Plumbing (internal and external plumbing)
EXECUTIVE SUMMARY
The purpose of this contract agreement is to provide a Community Development Block Grant - CARES Act funding (CDBG-CV) for $790,000 through Denver Economic Development & Opportunity’s (DEDO) Division of Neighborhood Equity and Stabilization. These funds will be provided to Inner City Health Center (ICHC) to finance the renovation of their current health center located at 3800 N. York Street in Denver’s Clayton neighborhood. The $790k will be used for the following hard costs: $250k Foundation, $100k Reinforcing, Steel/Structural Concrete, $250k Framing/Building Walls, $140k Electrical and $50k Plumbing (internal and external plumbing). These Housing and Urban Development CDBG-CV funds will specifically focus on providing accessibility to COVID-19 related services for clients and patients in the priority Low- and Moderate-Income Area.
ICHC is a local health care center that is committed to reducing the inequity of health and wellness access and delivery in underserved populations of Denver. Founded in 1983, Inner City Health offers comprehensive medical care, from maternity through pediatrics, adult care, and geriatrics, as well as dental care and behavioral health counseling on a sliding scale serving all patients, regardless of ability to pay, with dignity and with high-quality care focused on their needs. As a direct consequence of the COVID-19 Pandemic, ICHC has experienced rapid growth and expanding the health center will significantly increase capacity to meet the demand for healthcare services, as individuals and families utilizing these services in this LMA neighborhood have been disproportionately affected by the COVID-19 pandemic.
Inner City Health is seeking a total investment from DEDO of $1.19 million in CDBG and CDBG-CV funding. This includes $790k in CDBG-CV funds and $400k in CDBG funds to renovate their current health center. Once the expansion is complete, the project will provide over 5,200 sq. ft. of new space and feature an expanded dental clinic with new dental operatories (to increase to ten) and increase capacity to provide oral health care by 67%, remodeled medical clinic, new parking lot including EV stations, new entry with one singular front desk, behavioral health & counseling suite, and fitness center.
This $790,000 “forgivable” loan to be funded by CDBG-CV funds will have a performance period of seven years from the date of the promissory note and will be secured by a Deed of Trust and promissory note (registered against the property with the Clerk and Recorder’s Office) on the real property. The performance loan period requires that the vendor continues to use the property for public use for seven (7) years. After seven (7) years from the date of the promissory note and, if all other contractual requirements are met, the promissory note will be cancelled, and the Deed of Trust released.
DEDO is supporting the development with $500,000 of regular CDBG funds and $790,000 of CDBG-CV funds for a total DEDO investment of $1.19 million:
PROJECT FUNDING
|
Helen K. & Arthur E. Johnson Foundation Grant Award |
$100,000 |
|
Caring For Colorado Foundation Grant Award |
$50,000 |
|
Colorado Health Foundation |
$500,000 |
|
Denver Foundation Grant Award |
$200,000 |
|
Inner City Health Center Designated Spending |
$100,000 |
|
Anschutz Foundation - Contingent Grant Award |
$500,000 |
|
This DEDO Loan Contract: CDBG-CV |
$790,000 |
|
Separate DEDO Loan Contract: DEDO - CDBG |
$400,000 |
|
Total |
$2,640,000 |
Location (if applicable):
3800 North York Street
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
N/A
Are WBE/MBE/DBE goals met (if applicable)?
N/A
Is the contract new/a renewal/extension or amendment?
New
Was this contractor selected by competitive process or sole source?
N/A
For New contracts
Term of initial contract:
6/01/25023 - 6/30/2024
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term:
$790,000
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)