HomeMy WebLinkAboutOlde Town Properties
Augusta Richmond GA
DOCUMENT NAME: Olde1Own V~~-(tS
DOCUMENT TYPE: 0.. ~ 'lU ytVU1 ~
YEAR: ) 995'
BOX NUMBER: I
FILE NUMBER:
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NUMBER OF PAGES:
AUGUST.A-RICHMOND COUNTY
PLANNING .COMMISSION
GEORGE A. PATTY
EXECUTIVE DIRECTOR
E. L. DICKERSON
CHAIRMAN
525 TELFAlR STREET
AUGUSTA, GEORGIA 30901
PHONE: (706) 821-1796
FAX: (706) 821-1806
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~ Honorable Charles A. DeVaney
Mayor of Augusta
City-County Municipal Building
530 Greene Street
Augusta, GA 30911
April 12, 1995
Dear Mayor DeVaney:
Enclosed you will find a proposed agreement between Sherman and
Hemstreet and the City with regard to management of the Olde Town Properties
that the City now owns. In previous correspondence I told you that Lane
Company, which had managed these properties for the previous owner, had
informed us at the eleventh hour prior to the first foreclosure that they would not
continue to manage the properties, and that Sherman and Hemstreet was the only
company of the four or five certified property managers that I contacted who
would step in and manage the properties. The agreement, which was prepared by
Paul Dunbar, provides for a reasonable rate of compensation considering the
challenge of managing dispersed low income properties. I hope that Council will
approve it because Sherman and Hemstreet was willing to help the City in a crisis
when nobody else that I contacted would.
Please place this item on the appropriate committee and Council agendas.
My feeling is that this is not a CD item since managing these properties after the
foreclosure really doesn't involve CD. If you have any questions, don't hesitate to
contact me.
~erz~~
Ge~rge A. p:Z
Executive Director
GAP/dgk
Enclosure
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:APR 07 1995
PAUL H. DUNBAR, III
City Attorney
AprilS, 1995
Mr. George A. Patty
Executive Director of
Augusta-Richmond County
Planning Commission
525 Telfair Street
Augusta, Georgia 30901
Dear George:
I have reviewed the proposed Management Agreement to be
entered into between The City Council of Augusta and Sherman &
Hemstreet with regard to aIde Town Properties which you forwarded to
me with your letter of March 31, 1995, and I have prepared the
necessary resolution to have this matter placed on the Council
agenda after consideration of the appropriate committees. I am
forwarding to you enclosed herewith both the original resolution and
the copy of the Management Agreement which you sent to me with your
letter of March 31, 1995 in order that it might be placed on the
appropriate agendas for consideration at such time as you and the
Mayor decide to do so. .
With all best wishes, I remain,
Very truly yours,
YzHi
Paul H. Dunbar, III
PHD,III/tls
Enclosures
FIFTEENTH FLOOR, FIRST UNION BANK BUI LDING, AUGUSTA, GEORGIA 30910-2599
TELEPHONE:. (706) 722-7542 FAX: (706) 724-7776
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STATE OF GEORGIA
MANAGEMENT AGREEMENT
RICHMOND COUNTY
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THIS AGREEMENT, made and entered into as of January ~
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199': as to properties described on "EXhibit A", and as of the 7#
day of ....k b
, 1995, as to properties described on "Exhibit B",
by and between THE CITY COUNCIL OF AUGUSTA hereinafter referred to as
"Owner" and SHERMAN & HEMSTREET, INC., a corporation under the laws of
Georgia, hereinafter referred to as "Agent".
WIT N E SSE T H:
That the said parties, for and in consideration of the
undertakings and their mutual promises hereinafter expressed, hereby
agree:
1. That the Agent shall have, is hereby granted, and, on
the terms and conditions hereinafter described, hereby accepts, the
exclusive management of the property of the Owner known as Olde Town
Properties located in Augusta, Richmond County, Georgia, and in
operation and consisting of J.iL apartment units, and 2 commercial
spaces and identified on Attachments A and B hereto attached, and
hereinafter referred to as the apartments, for a period commencing,
as to units and spaces described on "Exhibit A", at 8:00 a.m. on the
1st day of January, .1995, .and continuing until midnight on the 31st day
December, 1995, and being automatically renewed and extended from said
last stated dates for tonsecuti ve annual periods, occurring next
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thereafter for an indefinite time period; proviqed, however, this
agreement may be canceled without cause by either the Owner or the
Agent, effective upon the completion of the then-current annual period,
by the giving by one party to the other of written notice thereof to
be delivered at least thirty (30) cC?nsecuti ve days prior to the
expiration of said then-~urrent period; provided, further, however,
that this agreement may be canceled for cause by the Owner at any time
during this or any subsequent period' of its existence; cause being
hereby defined as being any act of the Agent that shall amount to the
commission of fraud by the Agent, w{thin the legal meaning of suc~
word, or other omission, act or acts of the Agent directly resulting
in substantial and material detriment to the financial interest of the
Owner in the. apartments, in which event such cancellation of this
agreement shall be effected by the giving by the Owner to the Agent of
written notice of cancellation which shall be effective immediately.
2. That in the event of the expiration or termination of
this agreement, for any reason whatsoever, the Agent shall, with
reasonable promptness, render to the Owner a full and complete
accounting of the financial condition of the apartments as the same
shall relate to the management thereof and shall also deliver to the
Owner all related lease .applications, leases, records I books of account
and other similar data, and shall pay over to the Owner all sums of
money, including the rents and security deposits, net of proper
eXpenses and commissions, to which the Owner shall be entitled in
consequence of such termination and accounting.
3. That the Agent shall at all times:
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(a) Use its be~:.. :.ifoI'';;" to keep each apQ~t;:-;<::::t. :i.L..i~ l..:nt.ed
on such terms and conditions and for suchientals as the Owner may
herein or from time to time otherwise determine, but Agent hereby or
otherwise makes no guaranty or assurance as to the number of apartment
units that shall be rented a~ any particular time.
Units shall be
rented in accordance with guidelines established by Georgia Housing
& Finance Authority, Low Income Housing Credit Program.
(b) Provide supervision over the physical c'ondi-::ion of the
apartments and provide for the maintenance, repair and up:~eep ~
same at the expense ~ t:he Owner in an amount not to exceed .)ne -Hundred>
1"" 11 (.$fo~~C)A) fP 'd'" 1 . h f
~O ars' . or any ln lVldua expense ltem; t e exp~nse 0 any
items and maintenance, upkeep or' repair in excess the:ceof to be
incurred only with express prior consent of the Owner; and the Owner
shall have the exclusive right to change the :-:;~':"..1..;d.inten",nce amount
~t ~ny time and from time to time by written nc~ice to the AgeD~.
(-c)
Use; its best efforts to. collect all due and
.'.ble
rents accruing for the.rent:al of the apartments and, to file suit or
lke other legal action that may be reasonably necessary in the opinion
.,' .~.:rer..t and the City Attorney for the collection of any p~.5'c. -due and
~: ;..'::..s and to undertake the same in the name of the Owner; t.he
,;x;.:e.nSE:: of such litigation to be paid from th? funds of the Owner.
(d) Rent each apart:nent unit by and through tLe u.se of a
.~t.ed lease, t.he form and cont:ent or. which .;hall have ~.ccei ved the
..:.or approval .of the Owner, and to deliver the same to the lessee
thereunder on behalf of the Owner as its agent . Agent shall screen and
., '.':;'.. ...:)':.::1ve or approve each prospective lessee. i?nd in doing ::'0 the Agent
shal~ ~0t unlawfully discriminat:e.
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(e) On or before the 15th day of each month, furnish the
Owner with a clear and complete written statement of all income and
expenses for the preceding month in connection with the management of
the apartments and to remit therewith the income, less the amount of
operating and other related expenses. and the Agent's commission
provided herein. A copy of said monthly reports shall be delivered to
the Comptroller of The City Council of Augusta.
(f) The properties described on "Exhibit A" are subject
outstanding deeds to secure debt and should Owner request Agent to do
so,' Agent shall pay when due from gross rentals from all properties
whether described on "Exhibit A" or "Exhibit B-" the amounts due the
holders of said deeds to secure debt.
(g) At the termination of this contract, the Manager shall
furnish the Owner with a written list of all rental prospects (waiting
list) .
4. That the Owner shall:
(a) .pay the Agent each month for its services to be
performed under the terms of this agreement an amount equal to ten
percent (10 %) of collected monthly gross income prior to all expenses.
(b) Furnish to the Agent in adequate quantity, within a
time sufficient to provide for the Agent's proper assumption of the
management of said property, applications for leases, forms of lease,
brochures, and all records and other data appropriate to management of
the apartments,.. and the employees and tenants, so as to insure their
efficient management and operation; and to cause a timely accounting
of all such data and a~l funds related to the management of the
apartments by the ~gent's predecessor in management so as to provide
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for and insure an orderly, accurate and complete transition in
management.
5. That the expense of sign boards, newspaper and other
advertising and promotional devices and activities, including those
related to the cost of designing and printing such items as rental
brochures, shall be borne by the Owner, as shall the salary and related
expense
hich said salary and
related expense shall not exc ed
oo~
All costs
of labor and materials used in the
nance and upkeep of
the premises shall be borne by Owner.
The Agent shall confer with
the Owner in establishing advertising and promotional programs and
shall supervise such programs as well as to confer with the Owner on
other matters or problems reasonably related to the leasing and
management .of the apartments.
6. That Notice given hereunder shall be in writing, and may
be deli veredpersonally or by mail. The time of delivery shall be the
date of actual delivery to the addressee personally or the time of
deposit of such notice in the United States mail, postage prepaid,
correctly addressed, if to the Agent at 123 Eighth Street, Augusta,
Georgia 3090~, and if to the Owner, to The City Council of Augusta in
care of its Community Development Department, George A. Patty,
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Executive Director, One ~Oth Street, Sui,te 430, Augusta, Georgia 30901,
or such other addresses as they may hereafter designate by notice in
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the manner herein provided.
7. That wherever in this agreement the approval of a party
hereto is called for, whether expressly or by fair implication of the
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meaning of one or more of its provisions, such approval shall not be
unreasonably withheld by the party from whom requested.
B. That this agreement shall not be assigned by a party
hereto unless the same shall have been previously approved in writing
by the other party.
9. That the corporate officers of Sherman & Hemstreet,
Inc., and The City Council of Augusta, who execute and deliver this
agreement on behalf of, respectively, . Sherman & Hemstreet, Inc., and
the Owner, hereby represent that the undertakings herein of their
respective entities fall within the power and authority thereof and
. that they are 'duly authorized to execute and deliver this agreement so
as to bind their respective entities fully to the pr9visions hereof.
10. that this instrument contains the entire agreement of
the parties hereto wi th reference to the management of the apartments.
No oral representation has been made and none shall such be binding on
either party, unless contained herein.
10. That this agreement shall be construed according to the
laws of the State of Georgia.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement in an original and two counterparts, the day and year first
hereinabove set forth as the date of this agreement.
OWNER:
THE CITY
By, ~... Q~
.Ma.. , City of
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Attest:
AGENT:
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