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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 7/5/2017
District I
Item Creation Date: 3/20/2017
HCD17-37 SER-Jobs for Progress of the Texas Gulf Coast Inc.
Agenda Item#: 6.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing first amendment to grant agreement between the City of Houston and SER-JOBS FOR PROGRESS OF THE TEXAS GULF COAST, INC to consent to lease transactions and subordination of the City’s lien in order to accommodate commercially funded New Market Tax Credit Financing, whose proceeds will supplement the previously approved City grant for the acquisition and renovation of a facility, located in the vicinity of 1710 Telephone Road in Houston, Texas, for use as a Workforce Opportunity Center benefiting low-income individuals and families - DISTRICT I - GALLEGOS |
| | | | | | | | Background:
The Housing and Community Development Department requests that Council amend the contract between the City and SER-Jobs for Progress of the Texas Gulf Coast Inc. to allow the use of New Market Tax Credits (NMTC) in financing the renovation of a 22,000-square-foot building. In April 2016, Council allocated $5,300,000 in federal Community Development Block Grant (CDBG) funds for the acquisition and renovation of the SER-Jobs building. The proceeds from the NMTC will supplement the funds needed by the developer to complete the project.
The renovated building at 1710 Telephone Road will be SER-Jobs’ future site of a new Workforce Opportunity Center, which will serve up to 4,000 low-income individuals annually. The facility will feature a Career Café, educational workshops, occupational training and youth services. The center will enable SER-Jobs to increase its capacity by 9% annually to serve Houston residents, expand its classroom and service delivery space, and create a hub for the community to access services and resources to achieve career goals. By 2020, SER-Jobs anticipates doubling its capacity by serving 8,000 persons annually.
| Sources |
Amount |
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Uses |
Amount
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| COH HCDD |
5,300,000 |
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Acquisition |
1,786,860 |
| Harris County CDBG |
2,000,000 |
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A&E |
798,783 |
| NMTC |
3,119,157 |
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Renovations |
6,195,401 |
| Bank Loan |
13,343 |
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FF&E/Capital Costs |
840,166 |
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NMTC Costs |
811,290 |
| Total |
10,432,500 |
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Total |
10,432,500 |
SER-Jobs is a 50-year-old non-profit organization serving as a leader in non-traditional vocational education. It is an equal partner with high school districts and community colleges, establishing a solid reputation for service to high-risk, hard-to-serve populations. No new funds are being requested for this project.
This item was reviewed by the Housing and Community Affairs Committee on April 18, 2017. |
| | | | | | | | Prior Council Action:
04/15/2017 (O) 2016-0255
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| | | | | | | | Contact Information:
Roxanne Lawson
Phone: 832.394.6307 |
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