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HomeMy WebLinkAboutMEMORANDUM OF UNDERSTANDING LAND BANK AUTHORITYMEMORANDUM OF UNDERSTANDING THIS CONTRACT and AGREEMENT (hereinafter referred to as "Agreement ") is made and entered as of the 24 day of February 2010 by and between Augusta, Georgia (hereinafter referred to as "AUGUSTA "), a political subdivision of the State of Georgia, and the Augusta Georgia Land Bank Authority (hereinafter referred to as "LAND BANK"). WHEREAS, the General Assembly saw the necessity in returning tax delinquent, non revenue producing or non tax producing properties to an effective utilization status in order to provide housing, new industry, and jobs for the citizens of the county and enacted the LAND BANK Authority Act (hereinafter "The Act "); and WHEREAS, AUGUSTA, pursuant to the Act, on July 16, 1997 created the Augusta Georgia Land Bank Authority, granting the LAND BANK with the powers provided by Georgia Code as well as such powers as necessary and incidental to the exercise of such powers, including but not limited to the power to contract, all in furtherance of its purpose to acquire tax delinquent, non revenue or non tax producing properties and return such property to a status which can provide housing, new industry, and jobs for the citizens of the county; and WHEREAS, AUGUSTA has previously determined and resolved that several historic neighborhoods located within the boundaries of old city limits are in need of rehabilitation, conservation, or redevelopment and that AUGUSTA'S initial efforts would be concentrated in the historic Laney Walker and Bethlehem neighborhoods which contain a large number of historic residential and commercial properties (the "Project Area "); WHEREAS, AUGUSTA is in the process of creating an Urban Redevelopment Agency (the "URA ") pursuant to O.C.G.A. 36 -61 -18 for the purpose of rehabilitation, conservation, or redevelopment of properties with the Project Area; and WHEREAS, the LAND BANK has previously and continues to acquire properties in the Project Area in furtherance of this stated purpose of acquiring tax delinquent, non revenue or non tax producing properties and return such property to a status which can provide housing, new industry, and jobs for the citizens of the county; and WHEREAS, the LAND BANK is willing to and is desirous of cooperating and coordinating with AUGUSTA and the URA the acquisition of properties in the Project Area; and WHEREAS, to facilitate the acquisition of the property, AUGUSTA desires to make available to the LAND BANK and the LAND BANK desires that AUGUSTA make available to the LAND BANK $1,000,000.00 for the purchasing of property in the Project Area, provided that if and upon the sale of such acquired property the LAND BANK shall refund to AUGUSTA funds advanced for such acquisition. � J . NOW, THEREFORE, in consideration of their mutual covenants and within the limitations of this Agreement, AUGUSTA and the LAND BANK covenant and agree as follows: SECTION 1 1.1 AUGUSTA covenants and agrees to advance up to One Million Dollars ($1,000,000.00), at zero percent (0 %) interest per annum, to the LAND BANK to purchase property in the Project Area and to pay such capitalizable costs associated with the acquisition of the property, such advances to be made in conformance with the request and authorization process currently utilized between AUGUSTA'S Housing and Community Development department and the LAND BANK. 1.2 The LAND BANK covenants and agrees that any properties acquired with funds advanced pursuant to this Agreement (the "Acquired Property ") shall be made available for purchase by the URA for the purpose of rehabilitating, conserving and redeveloping such properties. 1.3 The LAND BANK covenants and agrees that the sales price of the Acquired Property shall be equal to or greater than the amount of the LAND BANK's adjusted cost basis (acquisition cost plus capitalizable costs). 1.4 The LAND BANK covenants and agrees that it will use the revenue derived from the sale of Acquired Property to reimburse AUGUSTA for all monies advanced to the LAND BANK for the purpose of purchasing such property. SECTION II 2.1 DURATION. This Agreement shall commence on the date the funds becomes available to the LAND BANK, and shall be in effect until July 1, 2010. 2.2 FUNDING SOURCE. AUGUSTA shall advance funds to the LAND BANK from funds derived from its general fund or other funds lawfully available to it for such purposes to provide monies sufficient to fulfill its obligation. 2.3 SECURITY INTEREST. In order to assure that the AUGUSTA will be reimbursed funds advanced for the purchase of the Acquired Property, AUGUSTA shall have the right, but not the obligation, to evidence it's security interest by recording a Security Deed in the Office of the Clerk of the Superior Court and the LAND BANK shall cooperate with AUGUSTA if it elects to record such security instrument. 2.4 LEGISLATIVE MODIFICATION. Notwithstanding any other provision of this Agreement to the contrary, in the event that any federal, state or local law, rule, regulation, or interpretation thereof, restricts, prohibits, or in any way materially changes the rights or obligations of either party, then this Agreement shall, to the extent permitted by the laws of Georgia, be deemed amended by the parties in a manner consistent with any such probation, restriction or limitation. ti 2.5 TERMINATION FOR CAUSE. Should AUGUSTA in its sole discretion, determine that the LAND BANK is failing to substantially comply with the terms and conditions of this Agreement, AUGUSTA may terminate this Agreement upon three (3) calendar day's written notice to the LAND BANK and have no further obligation to make additional advances for the purchase of property. Upon termination the LAND BANK shall refund to AUGUSTA the previously advanced but unexpended monies. 2.6 TERMINATION FOR CONVENIENCE. Either party may terminate this Agreement by providing thirty (30) days written notice to non terminating party. The LAND BANK shall refund to AUGUSTA the previously advanced but unexpended monies. 2.7 AGENCY. Neither Party becomes the agent of the other under this Agreement, and each will continue to perform its statutory functions and the functions transferred or retained under this Agreement at its own, sole cost and responsibility, independently of the other. Neither party will be responsible for the contracts, nor other obligations of the other except as specifically stated and transferred hereinabove. 2.8 SEVERABILITY. If any term or provision in this Agreement shall be deemed illegal or unenforceable; notwithstanding the offending terms or provisions, this Agreement shall remain in full force in effect and such terms or provisions shall be deemed stricken. 2.9 ASSIGNMENT. Neither party may assign its respective obligations arising out of this agreement without the prior written consent of the other party. 2.10 WAIVER. The waiver by either party of any breach of any provision contained in the Agreement shall not be deemed to be a waiver of such provision on any subsequent breach of the same or any other provision contained in this Agreement. 2.11 GOVERNING LAW. This Agreement shall be construed in accordance with and governed by, the laws of the State of Georgia, and jurisdiction shall lie in the Superior Court of Richmond County. 2.12 COMPLETE AGREEMENT. This agreement sets forth all provisions and understandings between the parties. There are no provisions, understandings, representations, or inducements, either oral or written, between the parties other than those hereinabove set forth. It is further understood and agreed that no subsequent alteration, amendment, modification, change or addition to this Agreement shall be binding upon the parties hereto unless the same is reduced to writing and signed by the parties to this Agreement. IN WITNESS WHEREOF, this Agreement is executed as the date first written above. Augusta - Richmond County �� U - ,4 By: Its: Mayor A Atte:k commission ,s Augusta Land Bank Authority By: Its: Attes ts: Secretary CALLED MEETING CONMSSION CHAMBER December 7, 2009 The Augusta Richmond County Commission convened at 11:30 a.m., Monday, December 07, 2009, the Honorable Alvin Mason, Mayor Pro Tem, presiding. PRESENT: Hons. Smith, Grantham, Hatney, Beard, Johnson, Jackson, Bowles and Brigham, members of Augusta Richmond County Commission. ABSENT: Hons. Deke Copenhaver, Mayor; Holland, member of Augusta Richmond County Commission. Also Present: Fred Russell, Administrator; Chiquita Johnson, General Counsel; Nancy Morawski, Deputy Clerk of Commission. 1. Discuss /approve finance and project /development plans for the TEE Center/Laney- Walker Bethlehem Projects. Mr. Grantham: Motion to approve the recommendation of the TEE Center/Laney Walker - Bethlehem Subcommittee regarding the funding with the addendum to increase the original funding to Transit up to $400,000 once $1.5 million is collected and the amount over $1.5 million would be split between Transit at 60% and a revitalization fund for all eight districts at 40 %. Mr, Hatney: Second. Mr. Russell: If you could, you need to incorporate that motion and second to include the verbage in the documents that are relevant. The entire motion needs to include the relevant document that's attached. [Motion to approve the following actions regarding the TEE Center, Laney Walker — Bethlehem Project and the Transportation Fee. As to the TEE Center Project: (1) proceed with the TVSdesign for the TEE Center and the design and construction of a parking deck consistent with the TVSdesign parking study, at a total cost of $48,000,000 for the parking deck and TEE Center. Funding for the projects to come for the following sources: $20,000,000 from SPLOST V, a net amount of $19,000,000 from the issuance of tax exempt bonds, $1,500,000 from cost savings from the Judicial Center Project, $5,000,000 from additional SPLOST V collections and $2,500,000 from SPLOST V interest earnings. Sources of funds for the repayment of the bonds will be $1,000,000 from the Hotel/Motel tax and $425,000 from the car rental franchise fee. (2) Approve the execution by the Mayor and Clerk of Commission the TEE Center Management and Catering Agreement and TEE Center CORE Agreement with a provision that the parking lot and deck is to be operated by the TEE Center operator. Such agreement to be subject to review and approval by bond and tax counsel. (3) Authorize the Administrator to proceed with the necessary RFQ/RFP for a construction r manager at risk for the construction of the parking deck and the TEE Center. (4) Authorize the Administrator to acquire the necessary land for the construction of the TEE Center and parking deck and to undertake such action as necessary to begin construction of the parking deck and TEE Center. (5) Authorize the Administrator to engage bond counsel for the issuance of bonds for the construction of the projects and to obtain the Coliseum Authority's consent to issue the bonds for the projects. As to the Laney Walker— Bethlehem Project: (1) Approve the issuance of $8,000,000 of taxable bonds to continue the Laney Walker- Bethlehem Project, with the bonds being amortized of 30 year with a 5 year maturity. The bonds will be repaid from a portion of the Transportation Fee designated for the Laney Walker — Bethlehem Project. (2) Authorize the Administrator to develop programmatic requirements for use of funds for land acquisition, developer loans and down payment assistance. (3) Advance $1,000,000 from the general fund to continue the project, such advance to be repaid from the bond proceeds. (4) Authorize the Administrator to take such action as necessary to form a Urban Redevelopment Agency for the issuance of the bonds. (5) Obtain bond counsel's approval that the use of the bonds funds will not violate bond covenants or law. (6) Authorize the Administrator to engage bond counsel to issue the bonds. As to the Transportation Fee: Amend the ordinance to provide that the $350,000 of the initial collections of $1,500,000 shall go to TEE Center project for operational and capital expenditures; $750,000 of the initial collections of $1,500,000 shall to the Bethlehem - Laney Walker Project for payment of bond costs and pay as you go projects; $400,000 of the initial collections of $1,500,000 shall go to Transportation; and that collections over $1,500,000 shall be split 60% to Transportation and the remaining 40% to county wide urban revitalization.] Mr. Mason votes No. Ms. Beard abstains. Motion carries 7 -1 -1. [MEETING ADJOURNED] Nancy W. Morawski Deputy Clerk of Commission