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AI# 14372
Regular City Council Meeting
5.18.
06/23/2026:
Information
Agenda Item
Resolution - City Manager:
Consider a resolution authorizing the Mayor to execute Amendment No. 3 to Contract 16514, with MBE 3, LLC, for revisions to the Meadowbrook Estates payout schedule.
Item Summary
On April 26, 2022, the City Council approved an American Rescue Plan Act (ARPA) Funding Agreement with MBE3, LLC, for construction of infrastructure to serve an affordable housing development. Amendments were then executed changing the bank of record (Amendment No. 1) and the payout method to disburse the allocated dollars (Amendment No. 2).
Mr. Lal Williams is the owner/representative of MBE3, LLC and serves as the builder and developer for the project. The development is located directly to the north of Estacado High School. The boundaries for the development are as follows:
• On the north: East Municipal Drive;
• On the south: East Erskine Street;
• On the east: North Magnolia Drive; and
• On the west: North Ivory Avenue.
The recently constructed infrastructure, upon completion and full build-out, would serve sixty-six (66) newly constructed affordable housing units.
The original allocation for the project totaled $1,250,000.00. Since the beginning of the project, $792,165.35 has been disbursed, and Amendment No. 3 would change the method of disbursement for the remaining funding balance.
The remaining amount in the project is $457,830.35. Mr. Williams is requesting that the remaining dollar amount be disbursed in the form of one lump sum payment.
The following reasons have been provided for this request:
• The entire amount of the allocation of ARPA funding must be disbursed prior to December 31, 2026.
• If the full $1,250,000.00 is not spent by this deadline, the City would be required to return any remaining funds to the federal government. The City would lose the economic impact of those funds in our local economy.
• The housing market continues to be slow to rebound in the current economy, and interest rates continue to be high.
• The remaining amount will allow MBE3 to continue to receive financing for future housing units in the housing development.
• MBE3 installed infrastructure for the development before the houses could be built. That infrastructure has been inspected, and the streets accepted by the City.
• The cost of the infrastructure totaled at or above the $1,250,000.00 that the City reimbursed for the construction of said infrastructure.
• MBE3, LLC, will continue to work toward complete build-out of the development.
Fiscal Impact
Funding for this affordable-housing project was appropriated through the American Rescue Plan Act (ARPA). No new funding is required for this project.
Staff/Board Recommending
Bill Howerton, Deputy City Manager
Attachments
MBE3...Reso for Amendment #3
MBE3...Amendment #3
MBE3...Original Agreement
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