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HomeMy WebLinkAboutOlde Town Properties Augusta Richmond GA DOCUMENT NAME: Olde1Own V~~-(tS DOCUMENT TYPE: 0.. ~ 'lU ytVU1 ~ YEAR: ) 995' BOX NUMBER: I FILE NUMBER: / :2 jgs 1 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 ) } ~ ill, ~.1) ~ 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 ,.' :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 -..' . " II if-nr Or+-- II II STATE OF GEORGIA MANAGEMENT AGREEMENT RICHMOND COUNTY ~ THIS AGREEMENT, made and entered into as of January ~ ~ . .. . 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 " J 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: 2 (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. 3 ., . (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 4 j 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, - Executive Director, One ~Oth Street, Sui,te 430, Augusta, Georgia 30901, or such other addresses as they may hereafter designate by notice in . ).;~ 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 5 .. . ' , 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 j.." ). Attest: AGENT: 6 ,. . . . .- . ;- ;'"1 SHE 7