06-E BTW Community Ctr FundsDRAFT
J:\Attorney\LISA\Resolutions\CiJRRENT\Razzmatazz Grant App.wpd
December 5, 2001
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AUTHORIZING THE EXECUTION OF AN APPLICATION
FORA SPECIAL COMMUNITY DEVELOPMENT BLOCK GRANT FROM
THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
(HUD); ACCEPTING SAID GRANT AWARD UPON NOTICE THEREOF;
AUTHORIZING THE EXECUTION OF ANY AND ALL DOCUMENTS
NECESSARY FOR ACCEPTANCE AND IMPLEMENTATION OF SAID
GRANT UPON NOTICE THEREOF; AUTHORIZING THE CITY TO
WITHDRAW FROM THE PROJECT IN THE EVENT GRANT FUNDS
MADE AVAILABLE DO NOT COVERALL EXPENSES; MAKING OTHER
FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the Department of Housing and Urban Development (HUD) has requested
assistance from the City of Paris in meeting HUD's obligations under the Young v. Martinez
lawsuit, and in particular, HUD has requested the City of Paris apply for grant funding to
purchase and demolish the Razzmatazz Club and construct a new community center for the
Booker T. Washington Homes; and,
WHEREAS, HUD has informed the City that $200,000.00 in grant funds would be made
available by HUD for said project, and that HUD would also provide $38,000.00 in funds to the
Housing Authority of the City of Paris as the Authority's matching cash contribution to the
proj ect; and,
WHEREAS, the City has expressed its concern to HUD that the amount of funding
provided may not be sufficient to purchase the property in the event eminent domain
proceedings are required to complete the proj ect, and HUD has assured the City that the City
may withdraw or rescind eminent domain proceedings if the award to the property owner is
excessive and will result in a lack of funds to complete the proj ect; and,
WHEREAS, HUD has further assured the City that HUD will, in accordance with 49
CFR 24.107 and Texas Property Code, Section 21.019, allow reasonable expenses incurred by
the City and the owner of the property in the eminent domain proceedings to be paid from the
grant funds, even if such proceedings are not completed, thereby resulting in no cost to the City;
and,
WHEREAS, acceptance of said grant shall be further conditioned upon formal agreement
by the Board of Commissioners of the Housing Authority of the City of Paris on behalf of said
Authority to forever be responsible for the repair, maintenance, and upkeep of said facility
without contribution from the City of Paris; and,
WHEREAS, based on these conditions and assurances provided by the Department of
Housing and Urban Development (HUD) and to be provided by the Housing Authority of the
City of Paris, the City Council of the City of Paris is desirous of processing a grant application
for the "Booker T. Washington Community Center Project," at atotal cost of $238,000.00, with
$200,000.00 to be provided by grant and $38,000.00 to be provided by the Housing Authority
of the City of Paris in the form of matching funds, with the City of Paris providing no matching
contributions; and,
WHEREAS, the City Council desires to authorize the Mayor, City Manager, and
appropriate City staff to accept and implement said grant (if same is received) without further
action of City Council; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That an application be made to the Texas Department of Housing and
Community Affairs for a Community Development Block Grant in the amount of $200,000.00
for the "Booker T. Washington Homes Community Center Proj ect," with the Housing Authority
of the City of Paris providing $38,000.00 in matching funds and the City of Paris providing no
matching contributions.
Section 3. That the application described in Section 2 hereof shall be contingent upon
the assurances by the Department of Housing and Urban Development that the City of Paris may
withdraw from the proj ect in the event the funds provided by the grant and the matching
contribution from the Housing Authority are not sufficient to cover the entire cost of the proj ect,
including the cost of eminent domain, if any, and that any costs incurred in eminent domain
proceedings, if necessary, will be paid from the proceeds of the grant, even if the property is not
acquired.
Section 4. That acceptance of said grant shall be and is hereby conditioned upon formal
agreement by the Board of Commissioners of the Housing Authority of the City of Paris on
behalf of said Authority to forever be responsible for the repair, maintenance, and upkeep of said
facility without contribution by the City of Paris.
Section 5. That the City Manager be, and he is hereby, appointed as the Authorized
Official of said proj ect and is authorized and directed to execute, on behalf of the City of Paris,
the application for grant under the terms and conditions and in the form approved by the City
Attorney.
Section 6. That the Proj ect Director, Thomas E. Haynes, be, and he is hereby, appointed
as Project Director and is hereby authorized to execute and deliver, on behalf of the City of
Paris, all reports, communications, assurances, and documents necessary for the completion of
said proj ect.
Section 7. That the Director of Finance be, and he is hereby, authorized and directed to
serve as the Financial Officer for said project and to receive and distribute funds for purposes
of the "Booker T. Washington Homes Community Center Project."
Section 8. That the Mayor, City Manager, Project Director, and Finance Director be
authorized and directed to execute, on behalf of the City of Paris, any and all documents
necessary for acceptance and implementation of said grant upon notice of award thereof by the
Texas Department of Housing and Community Affairs, under the terms and conditions as set
out herein and in the forms approved by the City Attorney, and to proceed with use of said funds
upon receipt thereof for the purposes stated herein and in accordance with the grant conditions.
Section 9. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this l Oth day of December, 2001.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
Lisa Wright
From: Larry W Schenk
Sent: Wednesday, November 07, 2001 5:44 PM
To: Alice Pinalto; Lisa Wright
Subject: FW: Paris Property Acqusition Question
>From: Michael E Malone
>Sent: Wednesday, November 07, 2001 5:43:59 PM
>To: Larry W Schenk; Alice Pinalto
>Subject: FW: Paris Property Acqusition Question
>Auto forwarded by a Rule
>
-----Original Message-----
From: J._Arturo Zavala@HUD.GOV [mailto:J._Arturo_Zavala@HUD.GOV]
Sent: Tuesday, November 06, 2001 1:40 PM
To: memalone@1starnet.com; thaynes@1starnet.com
Subject: Paris Property Acqusition Question
This will follow-up on our meeting last Tuesday, October 30, 2001. For
your information, I am forwarding the e-mail I sent to John Davis, our
Real
Estate/Relocation Officer whose expertise is the Uniform Act. I posed
the
question we discussed regarding the city's option to withdraw from the
project if acquisition costs become prohibitive. Mr. Davis has
provided
me his response which I am forwarding to you separately. Thanks.
Art Zavala
Forwarded by J. Arturo Zavala/CPD/FTW/HUD on 11/06/01 11:20 AM
J. Arturo
Zavala To: John F.
Davis/CPD/FTW/HUD@HUD
11/02/01 cc: (bcc: J. Arturo
11:05 AM Zavala/CPD/FTW/HUD)
Subject: Paris Property
Acqusition Question
John: This is a follow-up question to our discussion earlier this week
regarding a property acquisition issue (Razzmatazz Club) in Paris,
Texas.
The property in question, as you know, is located adjacent to an
existing
PHA site. Following our meeting, I traveled to Paris to discuss this
project with city and PHA officials. One of the issues we discussed was
the overall budget of $200,000 which may or may not be sufficient for
acquisition, demolition, and new construction. This depends on the cost
to
acquire which city officials fear could be very high.
Anyway, the city is concerned that if acquisition eventually ends up
through the eminent domain process, and the court determines that the
value
of the property is such that it exceeds the grant funds available, could
the city opt to not follow through with the acquisition and drop the
project? Once the city is engaged in the condemnation proceedings, does
this mean that the city is locked in to acquire at whatever cost the
court
determines?
If you could provide some guidance on these questions, I will respond to
the city. City officials appear very willing to move on this project
but
because they have no idea what the value of the property is, officials
want
to be aware of their options if the project cannot be done totally with
CDBG funds. The city will not make local funds available for this
project. Thanks.
Art Zavala
Lisa Wright
From: Larry W Schenk
Sent: Wednesday, November 07, 2001 5:44 PM
To: Alice Pinalto; Lisa Wright
Subject: FW: Response to Property Acquisition Question
>From: Michael E Malone
>Sent: Wednesday, November 07, 2001 5:43:34 PM
>To: Larry W Schenk; Alice Pinalto
>Subject: FW: Response to Property Acquisition Question
>Auto forwarded by a Rule
>
-----Original Message-----
From: J._Arturo Zavala@HUD.GOV [mailto:J._Arturo_Zavala@HUD.GOV]
Sent: Tuesday, November 06, 2001 1:42 PM
To: memalone@1starnet.com; thaynes@1starnet.com
Subject: Response to Property Acquisition Question
Here is John Davis' response to the question we discussed at our meeting
last week.You should note that Mr. Davis raises another question in the
last paragraph of his message, which I have discussed with the State of
Texas. If the city were to withdraw from the project because it did not
become feasible, the state would terminate the contract but would allow
reasonable expenses incurred by the owner to be paid with the CDBG
grant.
Because of the extenuating circumstances in connection with the East
Texas
law suit, HUD would not disallow the costs. This would be considered a
valid attempt to remedy a neighborhood equalization issue. Thanks.
Art Zavala
Forwarded by J. Arturo Zavala/CPD/FTW/HUD on 11/06/01 11:36 AM
John F. Davis
To: J. Arturo
11/02/0112:35 Zavala/CPD/FTW/HUD@HUD
PM cc:
Subject: Re: Paris Property
Acquisition Question(Document
link: J. Arturo Zavala)
Art,
The Uniform Act regulations at 49 CFR Party 24 and the Texas Property
Code
establish the actions that must occur if a State agency withdraws or
seeks
dismissal of an eminent domain action.
The Uniform Act regulations at 49 CFR Section 24.107, which would apply
to
any acquisition action under Federal funding or assistance, as in the
instant case, requires the owner of real property to be reimbursed for
"any
reasonable expenses, including reasonable attorney, appraisal, and
engineering fees, which the owner actually incurred because of a
condemnation proceeding, if:
(a). .
(b) The condemnation proceeding is abandoned by the Agency other than
under an agreed-upon settlement;...."
The Texas Property Code contains somewhat similar requirements at
Section
21.019, "Dismissal of Condemnation Proceedings." This section states
that,
(1) a party that files a condemnation petition may move to dismiss the
proceedings, and the court shall conduct a hearing on the motion; and
(2) a
court that hears and grants a condemnation dismissal motion under this
section of the Code "shall make allowance to the property owner for
reasonable and necessary fees for attorneys, appraisers, and
photographers
and for the other expenses incurred by the property owner to the date of
the hearing."
Thus, the Uniform Act regulations require an acquiring agency to
reimburse
a property owner for the described reasonable expenses if the owner
actually incurred them, and the Texas Property Code requires the court
hearing a dismissal motion to "make allowance" for such similar
expenses.
I am sure that "make allowance" means that the court would dismiss the
condemnation suit and it would require the acquiring agency to pay the
expenses outlined. In answer to your question, therefore, the cited
regulations and code allow for withdrawals from eminent domain taking
actions, but require the acquiring agency to pay certain expenses the
property owner incurred in defending the action.
An additional interesting question would be: If the City withdrew from
its effort to take the property because the Court's award was too high,
where would the money come from to pay the required expenses?
John Davis
11 /2/2001
12:42 PM CST
TX PROPERTY § 21.019
V.T.C.A., Property Code § 21.019
VERNON'S TEXAS STATU'PES AND CODES ANNOTATED
TITLE 4. ACTIONS AND REMEDIES
CHAPTER 21. EMINENT DOMAIN
SUBCHAPTER B. PROCEDURE
Copr. O Wes[ Group 2001. All rights reserved.
Current through End of 1999 Reg. Sess.
& 21.019. Dismissal of Condemnation Proceedines
Page 2
(a) A party [ha[ files a condemnation pe[ition may move to dismiss [he proceedings, and the court shall conduct a
hearing on the motion. However, after the special commissioners have made an award, in an effort to obtain a
lower award a condemnor may not dismiss the condemnation proceedings merely to institute new proceedings that
involve substantially the same condemnation against the same property owner.
(b) A court that hears and grants a motion [o dismiss a condemna[ion proceeding made by a condemnor under
Subsection (a) shall make an allowance to the property owner for reasonable and necessary fees For attomeys,
appraisers, and pho[ographers and for the other expenses incurre<l by the property owner to the date of the hearing.
(c) A court that hears and grants a motion ro dismiss a condemnation proceeding made by a property owner seeking
a judicial denial of the right to condemn or that otherwise renders a judgment denying the right to condemn may
make an allowance to the property ownet for reasonable and necessary fees for attomeys, appraisers, and
photographers and for the other expenses incurred by the property owner to [he date of the hearing or judgmen[.
CREDIT(S)
1984 Main Volume
Acts 1983, 68th Leg., p. 3501, ch. 576, § 1, eff. Jan. 1, 1984.
2001 Electronic Update
Amended by Acts 1987, 70th I.eg., ch. 483, § 1, ef£ Aug. 31, 1987.
¢General Materials (GN) - References, Mnotaflons, or Tables>
HISTORICAL AND STATUTORY NOTES
2001 Electronic Update
1987 Legislation
The 1987 amendment in subsea (b) inserted "and granu" and "made by a condemnor under Subsection (a); and
added subsec. (c).
Copr. (D West 2001 No Claim to Orig. U.S. GovL Works
§24.106
the tenant-ownefs dght, ti[le, and in-
terest in the improvement; and
(2) The owner of the real property on
which the improvement is located dis-
claims all interest In the improvement;
and
(3) The payment does not result Sn
the duplication oF any compensation
otherwise authorized by law.
(e) A[ternatlve campensatlan. Nothing
in [hts subpar[ shall be consirued to
deprive the cenant-owner of any dght
to reJect payment under this subpart
and to obtain payment for such prop-
erty Interestsin accordance with other
applicable law.
[54 FR 8928, Mar. 2, 1989; 54 FR 24712, June 9,
1989, as amended at 64 FR 7132, Feb. 12, 19%]
§24.106 Ezpenaee incidental to trane-
fer o[ titie to the Agency.
(a) The owner of the real property
shall be reimbursed for all reasonable
expenses the owner necessarlly in-
curred far:
(l) Recording fees, transfer taxes,
documentary stamps, evidence of title,
boundary surveys, legal descriptions of
the real property, and similar expenses
inciden[al [o conveying the real prop-
crty [o the Agency. However. the Agen-
cy is no[ required to pay costs solely
requlred to perfect the owner's title to
the real property; and
(2) Penalty costs and other chazges
for prepayment of any preexisting re-
corded mortgage entered into in good
faith encumbering the real property;
and
(3) The pro rata portion of any pre-
paid real property taxes which are allo-
cable to the perlod after the Agency
obtains title to the property or effec-
tive possesslon of St, whichever is ear-
lier.
(b) 4Vhenever feazible, the Agency
shall pay these costs directly so that
the owner will not have to pay such
costs and then seek relmbursement
from [he Agency.
424.107 Certaia litigation erzpenaee.
The owner of the real property shall
be reimbursed for any reasonab(e ex-
penses, induding reasonable altorney,
appralsal, and engineering fees, which
the owner actually incurred because of
a condemna2ion proceeding, 1f:
49 CFR SubtRle A(10-1-00 Editton)
(a) The finaljudgment of the court is
that the Agency cannot acquire the
real property by condemnation; or
(b) The condemnation proceeding is
abandoned by the Agency other [han
under an agreed-upon settlement; or
(c) The court having furisdlction ren-
ders a Judgment in favor of the owner
In an lnverse condemnatlon proceeding
or the Agency effects a settlement of
such proceeding.
§24.308 Donatione.
An owner whose real property is
being acquired may, after being fully
informed by the Agency of the right to
recelve Just compensation for such
property, donate such property or any
part thereof, any interest therein, or
any compensaHon paid therefor, to the
Agency as such owner shall determine.
The Agency is responsible for assuring
that an appraisal of the real property
is obtafned unless the owner releases
the Agency from such obligation, ex-
cept as provided In 524.302(c)(2).
Subpart C--General Relocation
Requirements
§24.201 Purpoee.
This subpart prescribes general re-
quirements governing the provision of
relocaHOn paymen[s and other reloca-
tion ass{stance 1n this part.
¢24.202 Applicability.
These requtrements apply to the relo-
cation of any displaced person as de-
ftned at § 24.2.
[54 FR 8928, Mar. Z, 1989, as amelMed at 64 FR
7132, Fe6. 12, 1999]
$24.203 Ralceationnoticee.
(a) Ceneral informatlon notice. As soon
as £easlble, a person scheduled to be
displaced shall be furnlshed with a gen-
eral wdtten descdptlon of the dis-
placing agency's relocatfon program
which does at least the following:
(I) Informs [he person that he or she
may be displaced for the project and
generally describes the relocatlon pay-
ment(s) for which the person may be el-
igible, the basic conditions of eligl-
billty, and the procedures for obtaining
the payment(s).
220
HOUSING AUTHORITY OF'l,HE CI'1'Y OF PARIS
POST OPF'ICE BOX 688
PARIS, TEXAS 75461
903 784 - 6651
Septenilber 14, 2001
N1ike iVtaloue
City11auiager
CitV Of Paris, "l'exas
Dear. 'Mr. Maloue:
It is our understanding that the Young vs. Vlartinez Pund money has been sct aside b~tlle State for the possi6le purchase of tlie Rarz NIa 1'azz club site.
X1'e are conhdene Lhe City of Paris will mal:e a successful applica[ion For lliese t'unds.
Thc Housinh Authority of the City of Paris otl'ers our wholehearted support for tiiis
un<lerLal:ing.
Por iuany ycars this establishment has created a concern for the sat'ety ancl wc;ll-beiu;;
of our residents at Booker '1'. Washington Homes. Many resi(lents have conLacted the
:luthority roicing eheir concertts and fears. l:specially those who reside directly across
the sh-cet lrom the club. Activities at the Razr vIa "1'azz club soinetimes last until carl}moniing, hours. Maiiy of the patruns are in the parl:ing lot, sidewall:s, and c\en thc
Cront yaucis ot'our residents. "1'hese activities continue long after dle club is closal.
"l,he Housing Authoriry and the residents of 13ooker "1'. Washington offer the city their
support and any assistance necessary to eliminate this public nuisance, and potentially
dail;;erous environment for public housiiig.
RECEiVED
llenny 1Z.Head
SEP 17 2001
C[TY MANACER
PARiF. -rexAS