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
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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"
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(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
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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:
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(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
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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
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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.
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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.
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(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
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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
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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:
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(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.
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(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
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As to PURCHASER
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Signed, sealed and delivered
in the presence of:
SELLER
As to SELLER
AUGUSTA-RICHMOND
COMMISSION
COUNTY
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Executed"the
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19 - day of April, 1997, by SELLER
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EXHIBIT A
PROPERTY DESCRIPTION
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EXHIBIT B
RESOLUTION
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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
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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.
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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.
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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.
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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.
~.
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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.
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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.
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