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HomeMy WebLinkAboutOlde Towne Associates L.P. Augusta Richmond GA DOCUMENT NAME: o\6e DOCUMENT TYPE: DBX' eeD1CT\-\- YEAR: ql BOX NUMBER: D~ FILE NUMBER: \ 'S \ l\ ~ NUMBER OF PAGES: (5JCJ 'to" ~- .' AGREEMENT THIS AGREEMENT is made by and between the Augusta-Richmond County Commission (hereinafter referred to as "Seller"), and Olde Town Associates, L.P., a Georgia limited partnership (hereinafter referred to as "Purchaser"), whose sole general partners are The Richman Group of Georgia, Inc., a Georgia corporation, and White Oak Real Estate Development Corp., a Georgia corporation. WIT N E SSE T H: In consideration of the mutual promises and the sum of $5,000 paid to Seller, hereinafter set forth, Seller and Purchaser mutually agree as follows: 1. PURCHASE AND SALE. The Seller agrees to sell and convey, and the Purchaser agrees to purchase, those certain parcels of land, and the improvements thereon, consisting of fifty (50) buildings, located in the Olde Towne Neighborhood of Augusta, Richmond County, Georgia, as more particularly described in Exhibit "A" j~. ~: (hereinafter described as the "Property"). 2. PURCHASE PRICE. The total purchase price (''Total Purchase Price") which Purchaser agrees to pay, and Seller agrees to accept, for the Property shall be a price 'i;.: equal to the sum of all outstanding indebtedness secured by the Property, as of the date of Closing, including principal and interest, and including the existing U.S. Department of Housing and Urban Development's Section 108 loan, plus the amount of all principal and interest payments made by Seller thereunder between the date of this Agreement and the date of Closing. The Total Purchase Price shall be payable as follows: Y I (a) Purchaser has delivered to Richmond County (Agent"), the sum of Five Thousand Dollars ($5,000) by check, as consideration for this Agreement. (b) On the Closing Date, Purchaser shall pay to Seller the balance of the Total Purchase Price, subject to the adjustments herein provided, by Cashier's Check or by wire transfer of Federal funds. 3. INVESTIGATION PERIOD. Seller hereby grants to Purchaser a period of ninety (90) days from the Effective Date of this Agreement (the "Investigation Period") to make whatever investigations Purchaser deems necessary with respect to the Property. (a) During the Investigation Period Seller agrees to allow Purchaser access to the Property and to all documents in his possession or under his control in the possession of others pertaining to the Property and the proposed development thereof. (b) The Purchaser assumes liability for all acts of its agents who enter onto the Property and agrees to indemnify and hold harmless the Seller from any loss, damage, cost or expense incurred by Seller as a result of such acts of Purchaser and its agents that cause injury to persons or damage to the Property, including Seller's reasonable attorney's fees and costs. (c) After such investigations, (i) if Purchaser for any reason decides not to consummate this Agreement, Purchaser shall give written notice thereof to Seller on or before the end of the Investigation Period, in which event this Agreement shall be terminated and Seller shall retain the sum of $5,000 paid as consideration for this Agreement as full consideration for Seller granting Purchaser the right to purchase the Property, as set forth herein. Seller's retention of said $5,000 shall not be considered a -2- ! i penalty and the parties acknowledge that said amount is a reasonable value for holding said property off the market. 4. "AS-IS" PURCHASE. Seller makes no covenant, representation or warranty as to the suitability of the Property or as to the physical condition thereof for any purpose whatsoever. The property is being sold "as is." 5. SELLER COOPERATION. Seller shall cooperate with Purchaser in attempting to obtain reductions in the principal and other sums owed under the existing loans in favor of Knox Mortgage Company which are secured by the Property. Seller shall also reasonably cooperate with the efforts of Purchaser to obtain financing for the acquisition and renovation of the Property. 6. INSURANCE. If any part of the Property suffers a casualty, or is condemned or under condemnation pursuant to a notice of taking by appropriate authority, prior to the Closing Date, Seller shall promptly notify Purchaser of such fact in writing and Purchaser, by notice given to Seller within fifteen (15) days following Seller's written notice, may elect to either (a) terminate this Agreement or (b) continue this Agreement in full force and effect and be assigned the right to all proceeds and awards. In the event Purchaser fails to timely make such election, Purchaser shall be deemed to have made the election provided in SubseGtion (b) of this Paragraph. The Closing Date shall be delayed, if necessary, for that period of time necessary to give Purchaser said fifteen (15) day period within which to make the aforesaid election. 7. TITLE INSURANCE/SURVEY. Within ninety (90) days following the Effective Date, Seller shall deliver to Purchaser's attorney an AL TA marketable title insurance -3- commitment (the "Commitment") from a title insurer reasonably acceptable to Purchaser, with fee owner's title policy premium to be paid by Purchaser at Closing showing the fee simple title of the Property as good, marketable and insurable. (a) Purchaser shall examine the Commitment and notify Seller of its written objections to title within thirty (30) days of receipt of the Commitment. If such objection is made, Seller shall have ninety (90) days after receipt of such objections to cure title defects and the Closing and all time periods herein shall be postponed for such period, if necessary; if Seller is unable to cure defects, Purchaser may elect to (i) take title as it is, or (ii) terminate this Agreement and be returned the Deposit with all interest thereon returned. (b) Purchaser, within the time allowed for delivery of the title insurance commitment, may have the Property surveyed at Purchaser's expense by a Georgia registered surveyor. If the survey shows any encroachment on the Property or that any improvement on the Property encroaches on the lands of others, the same shall be treated as a title defect hereunder if raised within the time and in the manner provided for title objections in this Paragraph. -4- 8. CLOSING DOCUMENTS. The Closing documents shall be provided by the parties as set forth below: (a) At Closing Seller shall deliver to Purchaser: (i) Limited Warranty Deed. A Limited Warranty Deed conveying to Purchaser good, marketable and insurable fee simple absolute title to the Property, subject to any outstanding liens and easements. (ii) Affidavit. An Affidavit in the customary form, satisfactory to cause Purchaser's title insurer to delete the standard printed exceptions in Purchaser's title policy for unrecorded liens, assessments and easements. (iii) Assignment of Contracts. Leases and Licenses. An executed Assignment of Contracts, Leases and Licenses, in form reasonably satisfactory to Purchaser's counsel, which shall include an indemnification in favor of Purchaser as to all matters occurring thereunder prior to Closing. (iv) Bill of Sale. An executed Bill of Sale transferring to Purchaser all of Seller's right, title and interest in all of the personal property constituting a part of the Property. (v) Delivery of Leases. The Seller's executed counterparts of all Leases and related documents, or, if the Seller is unable to produce the same, a copy of any such lease or related document certified by the Seller, to the best of Seller's knowledge and belief, to be true and correct. (vi) Rent Records. Copies of all Rent Records and related documents in the possession or under the control of the Seller together with the. security deposits (and any interest required thereon under the leases or under applicable law), key deposits and advance rental payments held by Seller or its agents ("Tenant Deposits") and other amounts (unless credited against the Purchase Price). (vi) Licenses. Copies of any and all licenses used in connection with the Property and originals of any licenses in the possession or control of Seller or its agents. -5- (vii) Notice Letters. A sufficient quantity of original letters to tenants under the leases, in the forms to be provided by Purchaser to Seller prior to Closing, advising such persons of the transfer of ownership to Purchaser and of the address to which further notices and rental payments are to be made. (viii) Tenant Deposits. The Tenant Deposits, in the amounts required under the tenant leases, shall be transferred or credited to Purchaser. (ix) Rent Roll. A rent roll setting forth the name of each tenant, the date of each lease, and the amount of rent and security deposit, and including, among other things, the name of ~ach tenant and corresponding unit number, the date of, and the monthly rent due under, each lease and the security deposit required to be held thereunder. (x) Evidence of Authority. All evidence of authority reasonably requested by Purchaser. (xi) Other Documents. Any other document (i) required by this Agreement to be delivered by Seller or (ii) otherwise reasonably necessary to consummate the transactions contemplated hereby and in form reasonably acceptable to Purchaser and Purchaser's counsel on, at or before the Closing; provided, however, that any request hereunder shall be made on a timely basis so that Seller shall have a reasonable period of time to satisfy such request. Purchaser shall provide to Seller such other documents as may be customary and necessary to consummate the transactions contemplated hereby. 9. CLOSING/CLOSING EXPENSES. Except as otherwise provided herein, the Closing of title shall take place 120 days from the date of this Agreement (the "Closing Date") at the office of Seller's counsel. Notwithstanding anything in this Agreement to the contrary, Purchaser shall have the right to extend the Closing (as the same may be postponed pursuant to this Agreement) for one (1) period of ninety (90) days (the "Extension Period") on payment to Seller of TWENTY THOUSAND DOLLARS AND -6- NO/100 ($20,000.00) ("Extension Fee") for the Extension Period. The Extension Fee shall not be in addition to and shall be applied against the Purchase Price. This shall be considered additional earnest money and shall be retained by Seller. Seller's retention of said $20,000 shall not be considered a penalty, and the parties acknowledge that said amount is a reasonable value for holding said property off the market for said additional period of time. (a) At Closing, Seller shall pay for the cost of all transfer taxes on the Warranty Deed and for the recording of all title corrective instruments. (b) At Closing, Purchaser shall pay the per page recording fee for recording the Warranty Deed, the costs of the survey of the Property ordered by Purchaser and the title insurance policy premium. 10. PRORATIONS. Assessments, real, and personal property taxes shall be adjusted, apportioned, and allowed as of the Closing Date. (a) Special Assessment Liens. If, at the Closing Date, the Property or any part thereof shall be or shall have been affected by any certified, confirmed, and ratified special assessment liens, same shall be paid and discharged by Seller. Pending liens shall be assumed by Purchaser. (b) Other Income. All rents and receipts for the Property, including, without limitation, all rents and receipts urider the Leases whether collected by Seller or reflected in the Seller's records as an account or tenant receivable (other than account or tenant receivables that have been outstanding for more than 60 days), all other -7- payments by tenants, licensees, concessionaires, and other persons using or occupying the Property or any portion thereof shall be prorated as of the date of Closing. (c) The provisions of this Article 10 shall survive the Closing. 11 . BROKER. Each of the parties hereto represents to the other that they have incurred no obligations for brokerage in connection with this Agreement and agrees that they will hold the other party hereto harmless from and against any expenses, claims or demands with respect to any other broker's fees claimed or demanded by anyone in connection with this Agreement insofar as such claim is based upon any agreement or alleged agreement with the indemnifying party. The provisions of this Article 11 shall survive the Closing. 12. DEFAULT. In the event that Purchaser shall fail to perform its obligations hereunder and such failure is through no fault or failure of Seller to comply with its obligations hereunder, Seller may, at its option, terminate this Agreement and retain, as full and completed agreed upon liquidated damages, all earnest money paid by Purchaser. If Seller shall refuse to close, despite its obligation to close hereunder, or any of the representations, warranties and covenants of Seller shall be found to be false, Purchaser may, at its option: (i) terminate this Agreement or (ii) Purchaser may seek specific performance hereof and relief for damages caused by Seller's default. 13. NOTICE. All notices, consents, approvals, waivers and elections which any party shall be required or shall desire to make or give under this Agreement shall be in writing and shall be sufficiently made or given only when delivered in person, or sent by facsimile with the original simultaneously sent by U.S. First Class Mail to: -8- (a) to Purchaser, 222 Clematis Street, Suite 207, West Palm Beach, Florida 33401, with a copy to Larry Walker, Esquire, Walker, Hubert, Gray & Byrd, 909 Ball Street, Perry, Georgia 31069 and Leon J. Wolfe, Esq., Berman Wolfe & Rennert, International Place, 35th Floor, 100 S.E. 2nd Street, Miami, Florida 33131. (b) to Seller, Charles R. Oliver, 801 Municipal Building, 530 Greene Street, Augusta Georgia, 30901, or to such other address as any party hereto shall designate by like notice given to the other parties hereto. Notices, consents, approvals, waivers and elections given or made as aforesaid shall be deemed to have been dated, given and received on the date of actual receipt. 14. ASSIGNMENT. Purchaser shall not be entitled to assign Purchaser's rights and obligations under this Agreement without the prior approval of the Seller. 15. COMMISSION RESOLUTION. Notwithstanding anything in this Agreement to the contrary, the obligations of Seller hereunder are subject to and conditioned upon, the terms and conditions of that certain Resolution adopted by the Augusta - Richmond County Commission on April 15, 1997, a copy of which is attached as Exhibit "B". 16. GENERAL PROVISIONS. The following general terms and conditions apply to this Agreement: (a) TITLES. Headings in this Agreement are for convenience only. (b) CHOICE OF LAW. This Agreement shall be interpreted according to the law~ of the state of Georgia. (c) L1TIGATIONNENUE. The venue of any litigation arising out of this Agreement shall be Richmond County, Georgia. -9- (d) TIME OF ACCEPTANCE. This Agreement must be fully executed by all parties hereto on or before 5:00 P.M. April 21, 1997, or this Agreement, and any offer contained herein, shall be considered rejected and null and void and the said $5,000 delivered pursuant to Section 2(a) of this Agreement shall be refunded to Purchaser. When fully executed, the date of last executed shall be deemed to be the "Effective Date" of this Agreement. Execution by Seller is subject to the terms and conditions of said Resolution adopted by the Commission attached as Exhibit B. 17. ENTIRE AGREEMENT. This Agreement integrates and supersedes all . other agreements and understandings of every character of the parties and comprises the entire agreement between them. This Agreement may not be changed, except in writing signed by the parties. No waiver of any rights or obligations hereunder shall be deemed to have occurred unless in writing signed by the party against whom such waiver is asserted and no waiver shall be deemed a waiver of any other or subsequent right or obligations. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals upon the dates indicated hereinbelow, and the parties executing this Agreement hereby represent to the other that they have full and complete authority to execute the same on behalf of the entities for which they sign, subject to the terms of the Resolution of Seller attached as Exhibit B. Signed, sealed and delivered in the presence of: PURCHASER: OlOE TOWN ASSOCIATES, L.P., a Georgia limited partnership -10- As to PURCHASER ~<!....) cF ~ ~r ~/ ~~ ary > ~})"}))))))}I}I))))))}I})}I)))))))IlNllm")))~ . ) ,-v PI/. ~ U:-J!l\)lI~ _: . · Execute e. IC~~rida9 ,7, by PURCHASER ~ ~ ~ Commission No. CC 342780 : . ) ~oFf\.()~My Commission Expires 01/29/98.: ), . ) Boodtd TIuouSb Fla. Notary Service & BODding Co.. .' ~ ~""""""""""""""""""""""""",\",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,""""'''''''''''''''''''i' Signed, sealed and delivered in the presence of: SELLER As to SELLER AUGUSTA-RICHMOND COMMISSION COUNTY ~cv&..... 1< _ ~~ Wit ~~ 'ro-C--S f) '1/,K ATTEST: ~- -: /~-A ....a- - ~ ~---- .. - : -,......... -..': -- -.. .-- ...: ..- Executed"the ~1?r~ -f\., 19 - day of April, 1997, by SELLER 1 C:\OFFICE\WPWIN\WPOOCS\FlUR&SA-4.WPO -11- EXHIBIT A PROPERTY DESCRIPTION -12- L " -' N , ,...,...,... ,... M - , M N ....... ~..- ..-..... N ~ '5 ~ '''''''''~N ,...,...,...,... N ,...N "",...N N,... ,... N ~ N .. ~ ~ 4( I _ .e ~ ~~ NNN N~NN N ,... NN ,... ~N ,...N,...N .&AI a ... o a= ,... &AI ! ~ ~~~~NN""""""N~N~""~""NNNNNNN~NN""N~NNN =I:: w~ Q) l-a ~ b-a _ ~ ~4( 00 0 0 0 0 0~n ~ ~~ ~~~~= = = = =~~ 0 ~~ - - - - --_C ~ ~~ CCCcw W W w W~~~~m~~~ ~~~~ 00000 0 0 00000000~ ~~ ~>> ~~~~8=====~=~=""========Na~~e~e>> ~~~~""WWWWWNWNW~WWWWwwwW~""~~mNm~N ~~O~~I"'-""N~~~N.~m~~~O~M~~~~~""M~~~~ ~~~~OO""OOO,...,...,...,...,... N~~~O""NNOOOM""Nvo NNNN""""""NNNNNNNN NNNN~~~~""~""""NN""N . QI ~~ ""N~~~~~~~O""N~~~~~~~O""N~~~~~~~O""N ~ """"""""""""""""""""NNNNNNNNNN~~~ .. ,... ~ C) ~ a. C\I CI) OJ cu Q.. , ',. . . .. EXHIBIT B RESOLUTION -13- ..J.-"'.-.;~"':" ~. .. ': ~ , ~. ~ Resolution WHEREAS, an affordable housing project was undertaken in 1989 in the Olde Towne neighborhood of Augusta, Georgia, by a Limited Partnership consisting of the National Housing Partnership and the Upton Management Company; and WHEREAS, the City of Augusta approved this project and participated by providing mortgage financ~g through the U. S. Department of Housing and Urban Development's Section 108 program; and -- - - ---WHEREAS;-this:project was consistent with~an<i-implemerited toe- City' s 'adopted policy of providing -- - -- affordable housing and rehabilitation of the housing stock of the neighborhood as a targeted revitalization area; and WHEREAS, the City of Augusta foreclosed on the project in December 1994 and February 1995 due to the failure of the Limited Partnership to comply with the repayment provisions of the Section l08 loan; and WHEREAS, the City has continued. to own and manage the property during this interim period while the options available to them were analyzed; and WHEREAS, the City of Augusta contracted with Tigan Consulting and De:velopment, Inc. to perform an analysis and potential workout for the project; and WHEREAS, the City has determined, based upon the analysis of the consultant, that the most feasible option would be to find a single buyer that can capitalize on the unused or new tax credits available on the project, maintain affordable housing and by either assuming or defeasing the Section 108 debt allow the City to avoid future reductions in its Community Development Block Grant entitlements which includes a $l ,056,712 balloon note in the year 2005 ; and WHEREAS, the City of Augusta has been actively seeking a developer to assume ownership of this project who would continue to provide affordable housing for the residents of the neighborhood and meet the conditions as outlined above; and WHEREAS, the City has experienced difficulty finding a qualified developer due to the complexity of the project which involves the existence of Low Income Housing Tax Credits under Section 42 of the Internal Service Revenue Code, an outstanding first mortgage, HUD Section 108 financing, substantial deferred maintenance on the buildings and the uncertainty of Low Income Housing Tax Credit compliance during the period following foreclosure; and ~ WHEREAS, the City of Augusta has determined that The White Oak Real Estate Development Corp. has.the experience and qualifications necessary to undertake a workout of the property which would satisfY the public interest and investment, return it to the tax rolls and maintain housing affordability. - - NOW THEREFORE BE IT RESOLVED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION that The White Oak Real EState Development Corp. be granted an exclusive option to purchase the property identified as Olde Towne Properties, consisting of approximately one- hundred nineteen (119) units in fifty (50) structures, located within the Olde Towne Neighborhood of Augusta, Georgia; and that for and in consideration of the sum of five thousand dollars ($5,000.00), the exclusive option shall be for a period of one-hundred twenty (120) days following approval of this Resolution by the Commission; and . . BE IT FURTHER RESOLVED that time is ofthf.essence for this project since the deadline for submission of an applica!ion for new tax credits to ~he Georgia Department of Community Affairs for projects of this typeis April 21, 1997. ,/' ./. / //' , .J.1III.!I"....... .. ...: . -;:; ':-'" ~ -: BE IT FURTHER RESOL VED that in recognition of the previously mentioned deadline, the City Attorney, City Administrator and Executive Director of the Augusta-Richmond County Planning Commission be authorized to negotiate the tenns and conditions of the option agreement and present said option to the Mayor and Commission for approval. BE IT FURTHER RESOL VED that Augusta-Richmond County Commission endorses the following in support of this project and process: · The Olde Towne Neighborhood was designated as a National Register Historic District on March 6, 1980. · The Olde Towne Neighborhood is a targeted revitalization area and such designation includes the development of rental 'housing affordable by families and individuals with -- '., . _H_ - _.- ---'~in-comes=at=or below-60-percent -6f-tfi-e--area '-meClian itic(Yme'~~ '. .. --- - -~-.... ~n · The Olde Town Neighborhood is a target area for the city's Community Development Block Program. · The Olde Towne Neighborhood Plan, dated December 1995, as prepared and approved by the Augusta-Richmond County Planning Commission, incorporates the community goals and objectives contained in the Augusta-Richmond County Comprehensive Plan as adopted by the City Council of Augusta and the Richmond County Commission in September 1992. BE IT FURTHER RESOL VED that the Mayor, City Attorney, City Administrator and Executive Director of the Augusta-Richmond;County Planning be authorized to submit the necessary letters and supporting documentation as may be required in support of the application by The White Oak Real Estate Development Corp. to the Georgia Department of Community Affairs for this proposed redevelopment project in the Olde Towne Neighborhood. Approved by the Augusta-Richmond County Commission this 15th day of April, 1997. ATTEST: I, Lena Bonner, Clerk.ofCommission, do hereby certify that the foregoing resolution was approved . by Au sta-Richmon~ C unty Commission at its regularly called meeting on April 15, 1997. J ~ ~~. ) ;\' .,. ~. .. / - ... APPROVED Resolution JAPR 1 5 1997 (AUGUSTA-RICHMOND COUNTY COMMISSION) . . . _ I: WHEREAS, an affordable housing project was undertaken in 1989 in the Olde Towne neighborhood of Augusta, Georgia, by a Limited Partnership consisting of the National Housing Partnership and the Upton Management Company; and WHEREAS, the City of Augusta approved this project and participated by providing mortgage financing through the US. Department of Housing and Urban Development's Section 108 program; and WHEREAS, this project was consistent with and implemented the City's adopted policy of providing affordable housing and rehabilitation of the housing stock of the neighborhood as a targeted revitalization area; and WHEREAS, the City of Au~,'usta foreclosed on the project in December 1994 and February 1995 due to the failure of the Limited Partnership to comply with the repayment provisions of the Section 108 loan; and WHEREAS, the City has continued to own and manage the property during this interim period while the options available to them were analyzed; and WHEREAS, the City of Augusta contracted with Tigan Consulting and Development, Inc. to perform an analysis and potential workout for the project; and WHEREAS, the City has detennined, based upon the analysis of the consultant, that the most feasible option would be to find a single buyer that can capitalize on the unused or new tax credits available on the project, maintain affordable housing and by either assuming or defeasing the Section 108 debt allow the City to avoid future reductions in its Community Development Block Grant entitlements which includes a $1,056,712 balloon note in the year 2005; and WHEREAS, the City of Augusta has been actively seeking a developer to assume ownership of this project who would continue to provide affordable housing for the residents of the neighborhood and meet the conditions as outlined above; and WHEREAS, the City has experienced difficulty finding a qualified developer due to the complexity of the project which involves the existence of Low Income Housing Tax Credits under Section 42 of the Internal Service Revenue Code, an outstanding first mortgage, HUD Section 108 financing, substantial deferred maintenance on the buildings and the uncertainty of Low Income Housing Tax Credit compliance during the period following foreclosure; and WHEREAS, the City of Augusta has detennined that The White Oak Real Estate Development Corp. has the experience and qualifications necessary to undertake a workout of the property which would satisfY the public interest and investment, return it to the tax rolls and maintain housing affordability. NOW THEREFORE BE IT RESOLVED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION that The White Oak Real Estate Development Corp. be granted an exclusive option to purchase the property identified as Olde Towne Properties, consisting of approximately one- hundred nineteen (119) units in fifty (50) structures, located within the Olde Towne Neighborhood of Augusta, Georgia; and that for and in consideration of the sum of five thousand dollars ($5,000.00), the exclusive option shall be for a period of one-hundred twenty (120) days following approval of this Resolution by the Commission; and BE IT FURTHER RESOLVED that time is of the essence for this project since the deadline for submission of an application for new tax credits to the Georgia Department of Community Affairs for projects of this type is April 21, 1997. ~. . : BE IT FURTHER RESOLVED that in recognition of the previously mentioned deadline, the City Attorney, City Administrator and Executive Director of the Augusta-Richmond County Planning Commission be authorized to negotiate the terms and conditions of the option agreement and present said option to the Mayor and Commission for approval. BE IT FURTHER RESOLVED that Augusta-Richmond County Commission endorses the following in support of this project and process: The Olde Towne Neighborhood was designated as a National Register Historic District on March 6, 1980. The Olde Towne Neighborhood is a targeted revitalization area and such designation includes the development of rental housing affordable by families and individuals with incomes at or below 60 percent of the area median income. The Olde Town Neighborhood is a target area for the city's Community Development Block Program. The Olde Towne Neighborhood Plan, dated December 1995, as prepared and approved by the Augusta-Richmond County Planning Commission, incorporates the community goals and objectives contained in the Augusta-Richmond County Comprehensive Plan as adopted by the City Council of Augusta and the Richmond County Commission in September 1992. BE IT FURTHER RESOLVED that the Mayor, City Attorney, City Administrator and Executive Director ofthe Augusta-Richmond County Planning be authorized to submit the necessary letters and supporting documentation as may be required in support of the application by The White Oak Real Estate Development Corp. to the Georgia Department of Community Affairs for this proposed redevelopment project in the Olde Towne Neighborhood. ATTEST: I, Lena Bonner, Clerk of Commission, do hereby certifY that the foregoing resolution was approved by gusta-. ond nty Commission at its regularly called meeting on April 15, 1997. Resolution WHEREAS, an affordable housing project was undertaken in 1989 in the Olde Towne neighborhood of Augusta, Georgia, by a Limited Partnership consisting of the National Housing Partnership and the Upton Management Company; and WHEREAS, the City of Augusta approved this project and participated by. providing mortgage financing through the U. S. Department of Housing and Urban Development's Section 108 program; and WHEREAS, this project was consistent with and implemented the City's adopted policy of providing affordable housing and rehabilitation of the housing stock of the neighborhood as a targeted revitalization area; and WHEREAS, the City of Augusta foreclosed on the project in December 1994 and February 1995 due to the failure of the Limited Partnership to comply with the repayment provisions of the Section 108 loan; and WHEREAS, the City has continued to own and manage the property during this interim period while the options available to them were analyzed; and WHEREAS, the City of Augusta contracted with Tigan Consulting and Development, Inc. to perform an analysis and potential workout for the project; and WHEREAS, the City has determined, based upon the analysis of the consultant, that the most feasible option would be to find a single buyer that can capitalize on the unused or new tax credits available on the project, maintain affordable housing and by either assuming or defeasing the Section 108 debt allow the City to avoid future reductions in its Community Development Block Grant entitlements which includes a $1,056,712 balloon note in the year 2005 ; and WHEREAS, the City of Augusta has been actively seeking a developer to assume ownership of this project who would continue to provide affordable housing for the residents of the neighborhood and meet the conditions as outlined above; and WHEREAS, the City has experienced difficulty finding a qualified developer due to the complexity of the project which involves the existence of Low Income Housing Tax Credits under Section 42 of the Internal Service Revenue Code, an outstanding first mortgage, HUD Section 108 financing, substantial deferred maintenance on the buildings and the uncertainty of Low Income Housing Tax Credit compliance during the period following foreclosure; and WHEREAS, the City of Augusta has determined that The White Oak Real Estate Development Corp. has the experience and qualifications necessary to undertake a workout of the property which would satisfY the public interest and investment, return it to the tax rolls and maintain housing affordability. NOW THEREFORE BE IT RESOLVED BY THE AUGUSTA-RICHMOND COUNTY COMMISSION that The White Oak Real Estate Development Corp. be granted an exclusive option to purchase the property identified as Olde Towne Properties, consisting of approximately one- hundred nineteen (119) units in fifty (50) structures, located within the Olde Towne Neighborhood of Augusta, Georgia; and that for and in consideration of the sum of five thousand dollars ($5,000.00), the exclusive option shall be for a period of one-hundred twenty (120) days following approval of this Resolution by the Commission; and BE IT FURTHER RESOL VED that time is of th~,essence for this project since the deadline for submission of an applic~!ion for new tax credits to ,he Georgia Department of Community Affairs for projects of this type is April 21, 1997. // ,/ BE IT FURTHER RESOL VED that in recognition of the previously mentioned deadline, the City Attorney, City Administrator and Executive Director of the Augusta-Richmond County Planning Commission be authorized to negotiate the terms and conditions of the option agreement and present said option to the Mayor and Commission for approval. BE IT FURTHER RESOLVED that Augusta-Richmond County Commission endorses the following in support of this project and process: · The Olde Towne Neighborhood was designated as a National Register Historic District on March 6, 1980. · The Olde Towne Neighborhood is a targeted revitalization area and such designation includes the development of rental housing affordable by families and individuals with incomes at or below 60 percent of the area median income. · The Olde Town Neighborhood is a target area for the city's Community Development Block Program. · The Olde Towne Neighborhood Plan, dated December 1995, as prepared and approved by the Augusta-Richmond County Planning Commission, incorporates the community goals and objectives contained in the Augusta-Richmond County Comprehensive Plan as adopted by the City Council of Augusta and the Richmond County Commission in September 1992. BE IT FURTHER RESOLVED that the Mayor, City Attorney, City Administrator and Executive Director of the Augusta-Richmond County Planning be authorized to submit the necessary letters and supporting documentation as may be required in support of the application by The White Oak Real Estate Development Corp. to the Georgia Department of Community Affairs for this proposed redevelopment project in the Olde Towne Neighborhood. Approved by the Augusta-Richmond County Commission this 15th day of April, 1997. ATTEST: I, Lena Bonner, Clerk of Commission, do hereby certify that the foregoing resolution was approved by Au sta-Richmond C unty Commission at its regularly called meeting on April 15, 1997. ,it