Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 9-7-21
Requesting Agency: Denver Economic Development and Opportunity
Division:
Subject Matter Expert Name:
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Name: Susan Liehe 720-480-3481 (m) |
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Email: susan.liehe@denvergov.org |
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
Approves a contract with Tepeyac QALICB, Inc. for $500,000 and through 12-31-21 using U.S. Housing and Urban Development (HUD) Community Development Block Grant funds to support the development of the Vina Project at 4725 High Street in Council District 9 (OEDEV-202159172).
body
Affected Council District(s) or citywide? Council District 9
Contract Control Number: OEDEV-202159172
Vendor/Contractor Name (including any “DBA”): Tepeyac QALICB, Inc.
Type and Scope of services to be performed:
This funding contract relates to the affordable mixed-use development at Viña, located at 4725 High St. (48th and Race), an exciting first phase of a six-acre development that will deliver affordable housing, fresh food, and expanded healthcare to the Globeville and Elyria-Swansea neighborhoods. Nonprofit health provider Cliníca Tepeyac will be the ground-level commercial space.
In 2016 DEDO granted Tepeyac Community Health Center (TCHC) a $1,050,000 fifteen-year forgivable loan with CDBG funds that supported the acquisition of the ground-level portion of 4725 High St. Now as the project has secured its funding stack as shown below, DEDO is supporting design and development costs with $500,000 of regular CDBG funds as well as $500,000 of regular CDBG-CV funds (in a separate contract).
Tepeyac QALICB, Inc. is an affiliate of Cliníca Tepeyac, Inc. formed in 2020 as Tepeyac Qualified Active Low-Income Community Business, Inc.
FUNDING STACK
|
Northern Trust (Investor) |
$4,566,493 |
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Capital Impact Fund (Senior Lender) |
$5,800,000 |
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Gary Community Investment PRI |
$1,000,000 |
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Colo. Growth & Revitalization Loan |
$920,000 |
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Capital Campaign Cash (Internal) |
$3,774,840 |
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This contract: DEDO - CDBG |
$500,000 |
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Separate contract: DEDO - CDBG CV |
$500,000 |
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TOTAL |
$17,061,333 |
Capital Impact Partners and Colo. Growth & Revitalization Fund are being funded via New Market Tax Credit mechanisms within the Tepeyac Qualified Active Low-Income Community Business. The city will cover the closing fees and professional services fees incurred during the loan occurring in October 2021. The CDBG funding of $500,000 will be repayable with a 20-year Promissory Note, while the CV funding of $500,000 will be performance-based and is forgivable after seven years of the project remaining active and delivering services as intended.
Location (if applicable):
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
Are WBE/MBE/DBE goals met (if applicable)?
Is the contract new/a renewal/extension or amendment?
Was this contractor selected by competitive process or sole source?
For New contracts
Term of initial contract: 7/1/2021 - 12/31/2021
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: $500,000
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.)