HomeMy WebLinkAboutINTERGOVERNMENTAL CONTRACT (LANEY-WALKER AND BETHLEHEM PROJECT)INTERGOVERNMENTAL CONTRACT
(LANEY - WALKER AND BETHLEHEM PROJECT)
THIS INTERGOVERNMENTAL CONTRACT (this "Intergovernmental Contract "),
made and entered into as of the 1 day of June, 2010, by and between the AUGUSTA,
GEORGIA, a consolidated government and political subdivision of the State of Georgia
( "Augusta "), and the URBAN REDEVELOPMENT AGENCY OF AUGUSTA, a body
corporate and politic and a political subdivision of the State of Georgia (the "Agency ").
"... any county, municipality, school district, or other political
subdivision of the state may contract for any period not exceeding 50
years with each other or with any other public agency, public
corporation, or public authority for joint services, for the provision of
services, or for the joint or separate use of facilities or equipment; but
such contracts must deal with activities, services, or facilities which the
contracting parties are authorized by law to undertake or provide "; and
WHEREAS, under the 1983 Constitution of the State of Georgia, Article IX, Section II,
Paragraph III, Augusta has the power to provide public transportation, street and road
construction and maintenance, including curbs, sidewalks, street lights and devices to control the
flow of traffic on such streets and roads, and to provide parks, recreational areas, programs and
facilities; and under the Act, Augusta has the power to achieve the redevelopment or
revitalization of areas designed as "urban redevelopment areas" by undertaking projects and
implementing initiatives and programs consistent with the Act and as provided in the "urban
redevelopment plan" adopted in connection with such redevelopment or revitalization initiatives;
WITNESSETH:
WHEREAS, Augusta is a duly formed and validly existing consolidated government and
political subdivision of the State of Georgia; and
WHEREAS, the Agency has been created pursuant to the provisions of the Urban
Redevelopment Law, O.C.G.A. § 36 -61 -1, et seq. (the "Act "), and an activating resolution of the
Board of Commissioners of Augusta, duly adopted on April 1, 2010, and is now existing and
operating as a public body corporate and politic; and
WHEREAS, the Agency was created for the purpose, inter alia, of exercising Augusta's
"urban redevelopment project powers" under the Act, and in furtherance of the public purpose
for which it was created; and
•
WHEREAS, the 1983 Constitution of the State of Georgia, Article IX, Section III,
Paragraph 1(a), provides that:
and
WHEREAS, pursuant to the Act, particularly O.C.G.A. § 36 -61 -6 thereof, Augusta is,
among other things, permitted to formulate a "workable program for utilizing appropriate private
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and public resources to eliminate and prevent the development or spread of slums, to encourage
needed urban rehabilitation, to provide for the redevelopment of slum areas, or to undertake such
of the aforesaid activities or such other feasible municipal or county activities as may be suitably
employed to achieve the objectives of such workable program ... [which] workable program
may include, without limitation, rehabilitation or conservation of slum areas or portions thereof
by ... providing parks, playgrounds, and other public improvements, encouraging voluntary
rehabilitation ... "; and
WHEREAS, pursuant to the Act, particularly O.C.G.A. § 36 -61 -8 (6) thereof, Augusta
and the Agency are, among other things, authorized to make or have made all plans necessary to
the carrying out of the purposes of [the Act] and to contract with any person, public or private, in
making or carrying out such plans .. ." ; and
WHEREAS, pursuant to the Act, particularly O.C.G.A. §§ 36 -61 -8 (8) and 36 -61 -16 (c)
thereof, Augusta may (i) "appropriate such funds and make such expenditures as may be
necessary to carry out the purposes of the Act and to levy taxes and assessments for such
purposes ... ," (ii) "enter into agreements, under Code Section 36- 61 -17, with [the Agency],
which agreements may extend for up to 50 years respecting action to be taken ...pursuant to any
of the powers granted by the [Act]," and (iii) "do and perform any or all of the actions or things
which, by subsection (a) of [Code Section 36- 61 -16], a public body is authorized to do or
perform, including the furnishing of financial and other assistance "; and
WHEREAS, in order to encourage the redevelopment and revitalization of the below
described Laney - Walker Bethlehem Urban Redevelopment Area, and combat the conditions of
blight and deterioration therein, the Board of Commissioners of Augusta, (i) by Resolution
adopted on March 22, 2010, among other matters, designated the area within Augusta generally
described as set forth in Exhibit "A" attached hereto as the "Laney- Walker and Bethlehem
Area," (ii) by Resolution adopted on April 1, 2010, approved the "Laney- Walker and Bethlehem
Urban Redevelopment Plan, and (iii) by Resolution adopted on April 1, 2010, designated the
Agency as Augusta's urban redevelopment agency for purposes of exercising the urban
redevelopment powers under the Act; including, without limitation, implementing the urban
redevelopment initiatives set forth in the Laney - Walker and Bethlehem Urban Redevelopment
Plan; and
WHEREAS, the Laney - Walker Bethlehem Urban Redevelopment Plan, together with
the Programmatic Guidelines (as further described and defined below), serves as the Augusta's
"workable program" for redeveloping the Laney - Walker and Bethlehem Urban Redevelopment
Area, and, together with the other provisions of this Intergovernmental Contract, serves as the
guide for Augusta and the Agency to cooperate in the implementation of the urban
redevelopment projects and initiatives contemplated in the Laney - Walker and Bethlehem Urban
Redevelopment Plan and to encourage private enterprise to participate in the rehabilitation or
redevelopment of the Laney - Walker and Bethlehem Urban Redevelopment Area as contemplated
in the Act (particularly, O.C.G.A. § 36 -61 -4) ; and
WHEREAS, the Laney - Walker and Bethlehem Urban Redevelopment Area is also
included within a redevelopment area and tax allocation district located within Augusta, which
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redevelopment area and tax allocation district was duly created by Augusta pursuant to its
redevelopment powers under O.C.G.A. § 36 -44 -1, et seq. (the "Redevelopment Powers Law ");
and,
WHEREAS, pursuant to the Redevelopment Powers Law (O.C.G.A. § 36 -44 -3 (5)),
Augusta is permitted to engage in "Redevelopment" (as defined in the Redevelopment Powers
Law), including, among other activities, engaging in "any activity, project, or service necessary
or incidental to achieving the development or revitalization" of the Laney - Walker and Bethlehem
Urban Redevelopment Area included within the redevelopment area and tax allocation district,
which redevelopment may include "[t]he construction, reconstruction, renovation, rehabilitation,
remodeling, repair, demolition, alteration, or expansion of public or private housing ... "; and
WHEREAS, pursuant to the Redevelopment Powers Law (O.C.G.A. § 36 -44 -5 (7)),
Augusta is permitted to "enter into and execute any contracts, leases, mortgages, or other
agreements ... determined by [the Board of Commissioners of Augusta] to be necessary or
convenient to implement the provisions and effectuate the purposes of redevelopment plans ";
and
WHEREAS, the parties now desire to contract with each other, pursuant to, among
others, the 1983 Constitution of the State of Georgia, Article IX, Section III, Paragraph 1(a) and
O.C.G.A. §§ 36 -61 -8 and 36 -61 -16 of the Act, to further or cause the implementation of portions
of the Laney- Walker Bethlehem Urban Redevelopment Plan, including the performance of
certain organizational and administrative services associated with the implementation of the
Laney- Walker and Bethlehem Urban Redevelopment Plan, as set forth on Exhibit "B" attached
hereto (collectively, the "Approved Laney- Walker and Bethlehem Projects "), for the benefit of
Augusta and its citizens; and
WHEREAS, the Agency and Augusta intend that a significant portion of the funds and
revenues derived from the payments made in respect of this Intergovernmental Contract will be
applied to the purchase of land, the funding of capitalizable construction and/or development
costs, and the installation of public improvements necessary or appropriate to the revitalization in
the Laney- Walker and Bethlehem Urban Redevelopment Area, which area is vital to the creation
and development of tourism, economic development opportunities and continued growth of the
downtown area of Augusta; and
WHEREAS, the Agency and Augusta propose to enter into this Intergovernmental
Contract, pursuant to which the Agency will agree to provide for the implementation of the
Approved Laney- Walker and Bethlehem Projects, and Augusta will agree to make payments to
the Agency in the amounts and at such times as provided for on Exhibit "C" hereto, to cover all
or a portion of the costs of acquisition, construction, equipping, development and
implementation of the Approved Laney - Walker and Bethlehem Projects; and
WHEREAS, pursuant to the Constitution and laws of the State of Georgia, including,
without limitation, the Act, Augusta is authorized to contract with the Agency for any of the
undertakings therein authorized;
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NOW, THEREFORE, for and in consideration of the premises and undertakings as
hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Augusta and the Agency DO HEREBY AGREE, as follows:
1
Effective Date; Term
This Intergovernmental Contract shall become effective upon the date of execution and
delivery of this Intergovernmental Contract by both parties and shall continue thereafter, unless
earlier terminated as provided herein, until all obligations of the parties have been performed (the
"Term "). In no event shall the Term of this Intergovernmental Contract extend for more than
fifty (50) years.
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2.
Agency as Urban Redevelopment Agency
The Agency agrees as follows:
(a) The Agency agrees to serve as Augusta's Urban Redevelopment Agency for the
Approved Laney- Walker and Bethlehem Projects which constitute a part of the Laney -
Walker and Bethlehem Urban Redevelopment Plan (as may be amended from time to
time).
(b) The Agency will take all steps necessary to implement the urban redevelopment
initiatives contemplated in the Laney - Walker and Bethlehem Urban Redevelopment Plan,
including, without limitation, the Approved Laney- Walker and Bethlehem Projects, and
shall, as requested by Augusta and/or required under the Act, provide periodic written
reports on the completed components of the Approved Laney- Walker and Bethlehem
Projects and the other undertakings and activities of the Agency.
(c) The Agency agrees to cause the title of any property acquired in the Laney -
Walker Bethlehem Urban Redevelopment Area acquired with the payments received
hereunder (including the repayment of or interest or other earnings on such payments) to
be held in the name of Augusta or the Augusta Land Bank Authority. To the extent any
property is so titled in the name of the Augusta Land Bank Authority, the Agency shall
require, in writing, that such property (and any net proceeds from the sale or other
disposition of same) be used exclusively for or in furtherance of the urban redevelopment
projects contemplated in this Intergovernmental Contract.
3.
Payment Obligations
Augusta agrees as follows:
(a) Augusta shall make payments to the Agency in amounts and on the dates
corresponding to the costs of implementing the Approved Laney - Walker and Bethlehem
Projects to the Agency as set forth on Exhibit "C" attached hereto, subject to the
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Implementation Cost Limit (as defined herein). The referenced payments made by
Augusta to the Agency are and shall, for all purposes of the Act, be deemed revenues and
funds derived from or held in connection with the undertaking and carrying out of the
Approved Laney - Walker and Bethlehem Projects. For purposes of clarification, the
payments contemplated hereby shall include payments of reasonable fees and reasonable
expenses required to be made to the custodians and depositories (and their successors and
assigns) and to the paying agent, bond registrar and authenticating agent (and to their
respective successors and assigns) from time to time appointed in accordance with and as
compensation for services rendered pursuant to any bond resolution or trust indenture
entered into by the Agency in respect of financings relating to the Approved Laney -
Walker and Bethlehem Project, as the same are due and payable. For purposes of
administrative convenience, Augusta agrees to make the payments set forth in
Exhibit C three (3) business days before the due dates indicated in such Exhibit C.
(b) Augusta, during the Term of this Intergovernmental Contract and in order to make
such funds available for such purpose, will, in its general revenue, appropriation, and
budgetary measures, whereby its tax funds or revenues and the allocation thereof are
controlled or provided, include sums sufficient to satisfy payments required to be made
under this Intergovernmental Contract. Nothing herein shall be construed as limiting the
right of Augusta to make the payments required by this Intergovernmental Contract out
of its general funds or from other sources lawfully available to Augusta for such purpose.
(c) Augusta's obligation to make the payments required by Sections 3(a) of this
Intergovernmental Contract shall constitute a general obligation of Augusta and Augusta
pledges its full faith and credit and taxing power for such payment and performance;
provided, however, that Augusta's payment obligations under this Intergovernmental
Contract shall not exceed an aggregate amount of $10,968,333.33 (the "Implementation
Cost Limit "). In order to make funds available for such payments in each fiscal year
Augusta will, in its general revenue, appropriation, and budgetary measures, whereby its
tax funds or revenues and the allocation thereof are controlled or provided, include sums
sufficient to satisfy payments required to be made under this Intergovernmental Contract.
Augusta shall levy and collect on all property, including real property, located within
Augusta, subject to taxation for such purpose, such ad valorem taxes, at such rate or rates,
within the mill limitation prescribed by applicable law (currently 17.925 mills) or within
such greater millage limitation as may later be provided, as may be necessary to make the
payments required under this Intergovernmental Contract; provided, Augusta's duty to
levy such taxes shall abate to the extent that its revenues from other sources are used to
make such payments. Augusta's obligation to make the payments required by Section
3(a) of this Intergovernmental Contract shall be absolute and unconditional and shall not
be subject to any defense or any right of setoff, counterclaim or recoupment arising out of
any breach by the Agency of any obligation to Augusta or out of any other indebtedness
or liability at any time owing to Augusta by the Agency so long as this Intergovernmental
Contract is in effect.
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4.
Implementation of Approved Laney - Walker and Bethlehem Projects
The Agency and Augusta agree as follows:
(a) The Agency hereby accepts the designation by Augusta as its Urban
Redevelopment Agency for the Approved Laney- Walker and Bethlehem Projects and
agrees to act and do all things on behalf of Augusta (subject to the limitations set forth in
the Act and in the Activating Resolution), and to bring any actions or proceedings against
any person which Augusta might bring with respect thereto as the Agency shall deem
proper, exclusive of condemnation actions or proceedings which shall remain subject to
the absolute and sole discretion of Augusta. This appointment of the Agency to act as
Urban Redevelopment Agency and all authority hereby conferred or granted is conferred
and granted irrevocably until the later to occur of (i) thirty (30) years, at which time all
activities in connection with the implementation of the Approved Laney- Walker and
Bethlehem Projects shall be deemed to have been completed, or (ii) this
Intergovernmental Contract is terminated pursuant to Section 7 hereof.
(b) The Agency agrees to enter into all contracts and do all things necessary to
implement the Approved Laney - Walker and Bethlehem Projects, provided, however, that
the Agency hereby agrees that the implementation of the urban redevelopment projects
and the undertaking of the related activities hereunder shall be managed and supervised
by Augusta (in such capacity, the "Project Manager ") for the purpose of facilitating and
coordinating the effective and efficient implementation of the Approved Laney- Walker
and Bethlehem Projects; provided that no such contract shall obligate the Agency for the
expenditure of funds except to the extent of amounts provided by Augusta hereunder.
For purposes of implementing the management and supervision responsibilities set forth
above, Augusta shall have the right to negotiate, execute and deliver any and all
contracts, agreements, documents, certificates and instruments necessary or appropriate
to the implementation of the urban redevelopment projects and the related activities
contemplated hereby, as agent for the Agency. Augusta shall have the right to approve
contracts with parties who are selected to replace it in its role as Project Manager.
(c) The parties agree that the Agency will pursue or cause the Project Manager to so
pursue the completion of the Approved Laney - Walker and Bethlehem Projects with all
reasonable dispatch and use its best efforts to cause the Approved Laney - Walker and
Bethlehem Projects to be completed as soon as practicable, subject to the limitations set
forth herein. Notwithstanding the foregoing, the parties hereby acknowledge and agree
that all urban redevelopment projects and activities undertaken pursuant to this
Intergovernmental Contract shall be consistent with the Programmatic Guidelines
attached hereto as Exhibit "D" and by this reference made a part hereof; which
Programmatic Guidelines shall not be revised without the written consent of Augusta (or
a proper designee of Augusta communicated to the Agency in writing). In addition, other
than in respect of payment of debt service on bonds or other indebtedness of the Agency,
the Agency shall not expend or permit to be expended any funds, revenues or other
amounts without the approval and execution of a Requisition in the form of Exhibit "E"
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6.
Place of Payments
The payments required to be made by Augusta to the Agency pursuant to Section 3(a) of
this Intergovernmental Contract shall be made in accordance with the written directions of the
Agency to an individual account of or designated by the Agency on the dates and in the amounts
specified in Exhibit "C" hereto, as the case may be. Any optional prepayments made pursuant
to Section 7 of this Intergovernmental Contract shall also be made to an individual account of or
designated by the Agency.
attached hereto and by this reference made a part hereof, which Requisitions shall be
executed by one representative of Augusta and one representative of the Agency as
provided below:
For purposes of executing Requisitions and making other decisions on behalf of the
parties, the persons holding the office of Mayor, Administrator or Chief Financial Officer
shall be deemed representatives of Augusta and the persons holding the office of
Chairperson, Vice Chairperson, Treasurer or Secretary shall be deemed representatives of
the Agency.
(d) The Agency does not make any warranty, either express or implied, that the
payments will be sufficient to pay all of the costs of the Approved Laney - Walker and
Bethlehem Proj ects.
5.
Pursuit of Remedies Against Developers, Contractors and Other Project Beneficiaries
The Agency will promptly proceed, either separately or in conjunction with others, to
exhaust the remedies of the Agency and Augusta against any defaulting developer, partner,
supplier, grant recipient, borrower, contractor, subcontractor or any other project beneficiary
whatever, and against any guarantor or surety therefor (collectively, the "Project Counterparties"
and individually, each a "Project Counterparty"), for the performance of any contract made in
connection with the Approved Laney- Walker and Bethlehem Projects. Augusta may, in its own
name or in the name of the Agency, prosecute or defend any action or proceeding or take any
other action involving any such Project Counterparty which Augusta deems reasonably
necessary, and in such event the Agency agrees to cooperate fully with Augusta and to take all
action necessary, to the extent it might lawfully do so, to effect the substitution of Augusta for
the Agency in any such action or proceeding. Any moneys recovered by way of damages,
refunds, adjustments or otherwise in connection with the foregoing prior to the completion date
shall be deemed funds or revenues of the Approved Laney - Walker and Bethlehem Projects under
the Act and utilized to cover the costs of implementing the Approved Laney- Walker and
Bethlehem Projects or repaying bonds or other obligations in respect thereof and, after the
completion date, shall be deposited at the direction of Augusta.
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7.
Options to Terminate
Neither party shall have the right to terminate this Intergovernmental Contract unless and
until the payment in full of all scheduled payments required in Exhibit "C "; provided, however,
that Augusta reserves the absolute and unfettered right, at its option, to make all or any portion of
such payments in advance of the scheduled payment dates; including, without limitation, the
right to make payments for the purpose of causing the defeasance of all or a portion of any bonds
or other obligations issued by the Agency to the extent such are secured by the payments
contemplated hereunder. Any such optional or early repayments as provided under this Section
7 shall be made in the manner provided in Section 6 above or otherwise in the same manner as
payments required to be made under Section 3(a) hereof.
If to City:
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With a copy to:
If to Agency:
8.
Notices
Augusta, Georgia
Office of the Administrator
530 Greene Street
Augusta, Georgia 30901 -4480
Attn: Administrator
Facsimile: (706) 821 -1835
Law Department
Augusta, Georgia
701 Greene Street, Suite 302
Augusta, Georgia 30901 -2383
Attn: General Counsel
Facsimile: (706) 842 -5556
Urban Redevelopment Agency of Augusta
c/o of the Administrator
530 Greene Street
Augusta, Georgia 30901 -4480
Attn: Chairperson
Facsimile: (706) 821 -1835
9.
Miscellaneous
(a) Should any phrase, clause, sentence or paragraph herein contained be held invalid
or unconstitutional, it shall in no way affect the remaining provisions of this
Intergovernmental Contract, which provisions shall remain in full force and effect.
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(b) This Intergovernmental Contract may be executed in several counterparts, each of
which shall be an original but all of which shall constitute one and the same instrument.
(c) This Intergovernmental Contract shall be construed and enforced in accordance
with the laws of the State of Georgia.
(d) This Intergovernmental Contract may not be effectively amended, changed,
modified or altered to reduce the amount and/or the dates of payments required to be
made by Augusta hereunder except as provided herein.
(e) The Agency reserves the right to pursue any remedies available to it, whether at
law or in equity, in order to cause Augusta to timely make the payments due to the
Agency, in the amounts and at the times, set forth in this Intergovernmental Contract, or
to otherwise enforce its rights under this Intergovernmental Contract.
(SIGNATURES ON FOLLOWING PAGES)
9
IN WITNESS WHEREOF, the parties hereto, acting by and through their duly
authorized officers, have caused this Intergovernmental Contract to be executed in multiple
counterparts, under seals, as of the day and year first above written.
lerk of Co *ission
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AUGUSTA, GEORGIA
B V�
Mayor
[Signature Page of Intergovernmental Contract between
Augusta and the Urban Redevelopment Agency of Augusta , dated as of June 1, 2010]
Attest:
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URBAN REDEVELOPMENT AGENCY OF
AUGUSTA
By:
[Signature Page of Intergovernmental Contract between
Augusta and the Urban Redevelopment Agency of Augusta , dated as of June 1, 2010]
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EXHIBIT "A"
The geographic area including all land lying and being within the boundaries of the Laney -
Walker /Bethlehem Urban Redevelopment Area located in Augusta, Georgia ( "Augusta ") as
described in Map 2 located in the Laney Walker /Bethlehem Blight Findings Report a copy of
which is on file in the official records of Augusta; and as more particularly described as all land
which is located in the eastern portion of Augusta, south of the downtown area, which area is
generally defined by Walton Way to the north, Gordon Highway, Old Savannah Road and
Twiggs Street to the east, the existing railroad line to the northwest and R.A. Dent Boulevard to
the west.
Exhibit A
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EXHIBIT "B"
Approved Laney- Walker and Bethlehem Projects
Right -of -Way, Parks, Greenspace, Open space, Development
Site, Redevelopment Property and Other Property Acquisitions
within the Laney- Walker and Bethlehem Urban Redevelopment
Area (including ordinary and customary pre- acquisition and pre -
development costs relating thereto);
Payment of Site Development Costs, Appraisals, and
Environmental Clean up Costs; Payment of costs and expenses
relating to Planning and/or Engineering Studies, including, among
others, studies for land use, transportation, park master planning,
civil engineering, environmental impact studies, and other plans
all in connection with the implementation of the Laney - Walker
and Bethlehem Urban Redevelopment Plan;
Development Loans to Private Developers and /or Other
Investments made in or to Private Developers or Public - Private
Partnerships (as the case may be) to catalyze development
consistent with the Laney - Walker and Bethlehem Urban
Redevelopment Plan;
Development Incentives to ensure development consistent with
the Laney - Walker and Bethlehem Urban Redevelopment Plan;
Grants, Subsidies and Senior or Subordinated Loans to
Homeowners consistent with the Laney - Walker and Bethlehem
Urban Redevelopment Plan; and
Organizational and Administrative Costs incurred in connection
with the implementation of the Laney- Walker and Bethlehem
Urban Redevelopment Plan.
Exhibit B
*Final payment.
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EXHIBIT "C"
Payment Schedule
Date Payment Amount
10 /01 /10 $59,372.66
04/01/11 .1.16
1 0/01/11 431,163.90
1 4
10101/12 434
X 4/01/13 111,651 88.
4 36
04/01/14 108,
10 /01 /14 438;2710:5,"" 2
,).,#.,.9: 4 104,00500 '
*10/0111 $6,814,00
Exhibit C
Note: Payments shall be made by Augusta three (3) business days before the applicable due date
listed on the schedule above for purposes of administrative convenience.
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EXHIBIT "D"
Programmatic Guidelines
Laney - Walker and Bethlehem Urban Redevelopment
Project Bonds - Project Implgmentation Guidelines
In April 2010, Augusta adopted the Laney - Walker and Bethlehem Urban Redevelopment Plan in an effort to
catalyze the much needed reinvestment in and revitalization of the Laney - Walker and Bethlehem neighborhoods.
Underpinning the planned redevelopment efforts in these neighborhoods is the firm belief that they are critical to
the economic life, growth and vitality of downtown Augusta. To assist in accomplishing redevelopment of this
effort In a manner sensitive to the historic significance of the people and places in this area, Augusta and the
newly formed Urban Redevelopment Agency of Augusta (the "Agency ") have partnered together to implement a
new $100 million redevelopment initiative. The initiative is designed to attract private development and
investment in this area and to provide housing assistance to current and future residents, with a view toward the
long -term return of this area as a vibrant mixed -use, live, work and play community. The first series of bonds
closed in June, 2010 in an amount of $8 million. These proceeds will be used to fund a range of initiatives, and
are expected to attract over $70 million in private investment. Program initiatives may include:
• Residential and Retail Facade Loans
• Single Family Mortgage Assistance Program
• Single Family /Owner- Occupied Rehabilitation Loans
• Rental Rehabilitation Loans
• Direct Land Assemblage
• Multifamily and Mixed -Use Developer Second Mortgage Loans
• Single Family Builder Loans
• Community Housing Development Organization (CHDO) Loans
Augusta will begin implementing the Single Family Mortgage Assistance Program, the Single Family /Owner
Occupied Rehabilitation Loan program, and the Direct Land Assemblage Program commencing in July /August of
2010. The remaining components will be implemented in phases starting with the Multifamily and Mixed -Use
Developer Second Mortgage Loans program, the Single Family Builder Loans program, Residential and Retail
Facade Loans, Rental Rehabilitation Loans, and CHDO Loans program. The Augusta Department of Housing and
Community Development ( "ADHCD ") will develop implementing procedures and policies to supplement the
guidelines set forth herein. Information on the program will be available on Augusta's website.
The staff at ADHCD will also conduct periodic information sessions with residents, builders, developers, non-
profits and CHDO's as we continue to work toward refining the program guidelines, underwriting criteria and an
application process. A program will be implemented to notify these persons about the sessions and informational
flyers and website content will be developed to properly notify prospective beneficiaries about programmatic roll-
out and processes.
Below follows a summary of the guidelines for certain of the programs identified above.
Exhibit D
Single Family Mortgage Assistance Program
The single family mortgage assistance program will be structured to provide "soft" second mortgage loans used
as "gap financing" for targeted residents. These loans will be provided directly to qualified home purchasers who
will reside in owner - occupied dwellings within the Laney - Walker and Bethlehem Urban Redevelopment Area until
there is a change of ownership, transfer of title, or death of the property owner. The loan amount will not exceed
the lesser of $40,000 per home or twenty percent (20 %) of the first mortgage amount. The loans will be
available to qualified persons meeting homeownership criteria standards established by Augusta. Applicant
income level restrictions will only be applicable In cases where Single Family Mortgage Assistance Programs are
assisted with HOME or Community Development Block Grant funding.
The funds may be used in conjunction with conventional financing, grants or other funding available to the
recipients.
Eligibility Criteria
Eligible Applicants Must:
• Must have income at or below 80% of AMI (adjusted for family size only if HOME funds are invested in
the property. Commit to residing In the residence as owner occupants for the term of the loan or until
such time as the property is sold or the ownership is transferred.
Demonstrate the ability to attain conventional financing based on the underwriting criteria established
by lenders approved to participate in the program
Meet underwriting criteria established by the Augusta Housing and Community Development
Department for the Single Family Mortgage Assistance Program.
Eligible Residences Must:
• Be located within the Laney - Walker and Bethlehem Urban Redevelopment Area. Augusta reserves the
right to target these loans in projects which are located in the key development nodes identified in the
Laney - Walker and Bethlehem Urban Redevelopment Plan.
• Be newly constructed, acquisition /rehabilitations or conversions and may be marketed, affordable or
workforce housing, but may be marketed in a manner that will attract moderate to middle income
families.
Eligible Loans:
• Will serve as gap /bridge loans only; loan cannot exceed the lesser of $40,000 per home or twenty
percent (20 %) of the first mortgage amount whichever is the least.
• Will be funded at closing on the remaining of the financing, which must take place within 12 months of
receipt of a commitment.
• Will be subject to repayment with a 0% interest rate upon sale, refinancing or failure of the owner to
occupy the unit within the term of the first mortgage period.
Implementation:
Qualified applicants will apply for loans through the Agency's application process which will be administered by
Augusta. Borrowers must meet the underwriting criteria established for the program and demonstrate
creditworthiness. Upon approval of the first mortgage lender loans will be submitted to AHCDD for final
approval and funding.
The underwriting criteria and guidelines shall be developed by ADHCD staff and the Finance Department, and will
be posted on its website as soon as they have been duly approved.
Exhibit D
Single - Family /Owner - Occupied
Rehabilitation Loan Program
The single - family /owner - occupied rehabilitation loan program will be structured to provide loans to current
residents with owner - occupied residences in need of rehabilitation. These loans will be provided directly to
qualified home owners who will continue to reside in the benefited dwellings within the Laney - Walker and
Bethlehem Urban Redevelopment Area for at least 10 years. The loan amount will not exceed $40,000. The
loans will be available to applicants who have income levels at or below 80% of AMI (adjusted for family size).
The funds may be used in conjunction with conventional financing, grants or other funding available to the
recipients.
Eligibility Criteria
Eligible Applicants Must:
• Have Income at or below 80% of AMI (adjusted for family size).
• The loan will be due and payable when the ownership of the house is transferred through the sale of
the property or death of the owner.
• Meet standard underwriting criteria and provide satisfactory evidence of financing or otherwise having
available the remaining balance of the rehabilitation costs for the home.
Eligible Residences Must:
• Be located within the Laney - Walker and Bethlehem Urban Redevelopment Area.
Eligible Loans:
• loan cannot exceed $40,000 based on the certified rehabilitation cost.
• Will be funded at closing on the remaining of the financing, which must also take place at closing .
• Will have a 0% interest rate, with the principal balance subject to compliance with all program
requirements.
• Will not have principal or interest repayment requirements, subject to the below provisions.
• Will be subject to immediate repayment upon refinancing, or failure of the owner to occupy the unit .
Implementation:
Qualified applicants will apply for loans through the Agency's application process which will be administered by
Augusta. Borrowers must meet the underwriting criteria established for the program and demonstrate
creditworthiness. Upon approval by ADHCD, loans will receive be submitted For final underwriting and funding
The underwriting criteria and guidelines shall be developed by ADHCD staff and the Finance Department and will
be posted on its website as soon as they have been duly approved.
Exhibit D
Direct Land Assemblage
Attracting quality private development back to the Laney - Walker and Bethlehem Urban Redevelopment Area has
become an increasingly daunting challenge, largely due to the deterioration and disinvestment that this area has
suffered. Augusta is committed to jump- starting this process by spending up to $10 million to assemble land in
this area for the purpose of making same available for development. The assembled land will be transferred to
and serve as an investment in public - private partnership developments (subject to applicable laws, rules and
regulations) and /or serve as the basis for non - profit and for profit developers attracting private capital to future
development within the Laney - Walker and Bethlehem Urban Redevelopment Area.
Financing may be applied to hire land acquisition agents, acquire land and pay the costs of demolishing
improvements, and otherwise clearing such land.
Eligibility Criteria
Eligible Applicants:
• Non - profit developers
• For profit developers (Including those working in partnership with non - profit organizations)
Eligible Properties Must:
• Be located in the Laney - Walker and Bethlehem Urban Redevelopment Area.
• Serve a population at or below 80% of AMI for rental projects.
• Serve a mixed income population of affordable, work force, moderate, and middle income households
• Provide for long -term affordability provisions equal to the term of the first mortgage for rental and
upon sale for homeownership.
Eligible Loans:
• Will finance the acquisition of land, land assemblage and related predevelopment and carrying costs
associated with preparing the site for office, commercial, residential or mixed -use development.
• May be used for rental or homeownership development and will have first or second lien mortgages as
collateral.
• Will only be made to pre - selected developers /borrowers identified through a competitive procurement
process conducted by ADHCD.
• Development plans must meet the established affordability standards.
• May finance the following:
o Land acquisition
o Purchase option on contract deposit
o Capitalized interest
o Appraisals
o Architectural and engineering fees
o Legal Fees
o Zoning and title work
o Surveys
o Environmental assessments
o Market analyses
o Tax credit applications and other financing fees
• Must provide for loan principal to be repaid from the proceeds of construction financing [or be rolled into
the permanent financing structure with an appropriate participating interest shared by the Agency].
• Will generally be made with terms of up to 12 to 18 months.
• Will have an interest rate between 0% and 3% fixed for the loan term.
• Will be fully recourse to the borrower(s).
Implementation
The loans will be received, underwritten, approved and serviced by Augusta, as Program Manager.
All project loans will be underwritten using underwriting guidelines and policies developed by ADHCD staff and
the Finance Department.
Exhibit D
The multifamily loans will be structured as second mortgage loans used as "gap financing ". These loans will be
provided to non -profit and for profit multifamily developers offering rental housing units across various price
points. The loan amount will not exceed the lesser of $50,000 per unit or twenty percent (30 %) of the capital
expenditures whichever is least (excluding fees paid to a developer or its Affiliates).
Funds may be used in conjunction with conventional financing, bond financing or other private /public financing to
construct and /or rehab multifamily residential housing, finance predevelopment and site development costs.
Eligibility Criteria
Multifamily and Mixed -Use Developer
Second Mortgage Loans
Eligible Applicants Must:
• Be a 501(c)3 non -profit or for profit developer in good standing.
• Demonstrate the capacity to construct and develop a residential development project.
• Demonstrate success in leveraging additional funds from both public and private sources.
• Have experience commensurate with the scope and size of the proposed project.
• Exhibit financial strength to undertake the project and show a successful track record of property
management.
Eligible Projects Must:
• Be located within the Laney - Walker and Bethlehem Urban Redevelopment Area. Augusta reserves the
right to target these loans in projects which are located in the key development nodes Identified in the
Laney - Walker and Bethlehem Urban Redevelopment Plan.
•
• Include market rate units and affordable housing units of the same or similar quality (affordable units
must serve a population at or below 80% of AMI with a minimum of 20% percent of the units set aside
for this population).
• Provide for long -term affordability provisions of 15 years or more.
• Be newly constructed, acquisition /rehabllitations or conversions.
• Have a fully funded budget, including appropriate cost and based on conservative assumptions.
Eligible Loans:
• Will serve as gap /bridge loans only; loan cannot exceed the lesser of $50,000 per unit or twenty
percent (30 %) of the capital expenditures (excluding fees paid to a developer or its affiliates).
• Have full recourse loans to the borrower and /or sponsor.
• Will have a below market interest rate.
• Will be underwritten based on need.
Implementation:
Qualified applicants will apply for loans through the Agency's application process which will be administered by
Augusta, as the Agency's Program Manager. Borrowers must meet the underwriting criteria established for the
program and demonstrate creditworthiness. Upon approval by ADHCD, loans will receive final underwriting and
approval.
The underwriting criteria and guidelines shall be developed by ADHCD staff and the Finance Department and will
be posted on its website as soon as they have been duly approved.
Exhibit D
Eligibility Criteria
Single Family Builder Loans
The single family builder incentive loans will provide construction financing to non - profit and for - profit developers to
finance the acquisition, construction, or renovation of single family residential units to be sold to affordable homebuyers.
These funds must be leveraged with additional funds secured by the developer from both public and private sources. These
funds cannot be the sole source of project financing and cannot exceed 25% of the total approved development cost.
Eligible uses of the funds include cost associated with acquisition, constructing and equipping the development.
Projects involving a combination of nonprofit organizations with for profit partners and investors, which are located in the
key development nodes identified in the Laney - Walker and Bethlehem Urban Redevelopment Plan may be given top
priority.
Eligible Applicants Must:
• Be a 501(c)3 non - profit or for profit developer in good standing.
• Demonstrate the capacity to construct and develop a residential development project.
• Demonstrate success in leveraging additional funds from both public and private sources.
• Have experience commensurate with the scope and size of the proposed project.
Eligible Projects:
• Condominiums, town homes, and or single family detached developments.
• Must be located within the Laney - Walker and Bethlehem Urban Redevelopment Area.
• Market and sale the "for- sale" units to a mix of household incomes to include affordable, workforce, moderate,
and middle
Eligible Loans:
• May finance, in part, the acquisition, construction, or renovation of single family housing for low, moderate, and
middle income families.
• May be used for homeownership development and will not be made or unconditionally committed to be made
unless secure funding sources for the balance of the total project cost of the housing project.
• Will be evidenced by a promissory note and shall be secured by a deed to secure debt.
• Will have a below market interest rate fixed for the loan term.
Implementation
Qualified applicants will apply for loans through the Agency's application process which will be administered by Augusta, as
the Agency's Program Manager. Borrowers must meet the underwriting criteria established for the program and
demonstrate creditworthiness. Upon approval by ADHCD, loans will bereceive writing and approval.
The underwriting criteria and guidelines will be developed by ADHCD staff and the Finance Department and will be posted
on the website as soon as they have been duly approved.
Exhibit D
Financing provided to Community Housing Development Organizations ( CHDOs) as they seek to participate in the
acquisition, construction, or renovation of multifamily and single family housing for low and moderate income families. The
total amount of the loan may not exceed 25% of the total costs of the housing project financed by such loan. CHDOs must
obtain, through a firm commitment, a secure funding source for the balance of the total costs of the project.
Eligibility Criteria:
Eligible Applicants Must
• Be Organizations designated by Augusta as a community housing development organizations (CHDO) as of
January 1 of the year in which the CHDO loan is made.
• Be a CHDO who acts as owner, developer, or sponsor of an affordable housing project.
Eligible Properties Must:
• Be located within the Laney - Walker and Bethlehem Urban Redevelopment Area. The Agency and Augusta may
encourage developers to plan /develop projects that are located in priority corridors, as designated from time to
time.
• Serve a population at or below 50% of AMI for rental housing projects, with a minimum of twenty percent (20 %)
of the units set aside for this population;
• Serve a population at or below 120% of AMI for families of two or less and 115% of AMI or below for families of
three or more for homeownership projects.
• Provide for long -term affordability provisions of equal to the term of the first mortgage or more and upon sale for
single family.
Eligible Loans:
• May finance, in part, the acquisition, construction, or renovation of multifamily and single family housing for low
and moderate Income families.
• May not exceed 25% of the total capital expenditures (excluding fees paid to a CHDO or its Affiliates).
• May be used for rental or homeownership development and will not be made or unconditionally committed to be
made unless secure funding sources for the balance of the total project cost of the housing project.
• Will be evidenced by a promissory note and shall be secured by a deed to secure debt.
• Will have a below market interest rate fixed for the loan term.
Implementation
CHDO Loans
Qualified applicants will apply for loans through the Agency's application process which will be administered by Augusta, as
the Agency's Program Manager. Borrowers must meet the underwriting criteria established for the program and
demonstrate creditworthiness. Upon approval by ADHCD, loans receive underwriting and final approval for funding.
The underwriting criteria and guidelines will be developed by ADHCD staff and the Finance Department and will be posted
on the website as soon as they have been duly approved, and will include, among others, requirements for third party
independent appraisals and environmental phase one reports.
Exhibit D
[ADDRESSED TO THE PROJECT FUND CUSTODIAN]
Re: Direction to Make Disbursement from the Project Fund created pursuant to the
hereinafter defined Bond Resolution
Ladies and Gentlemen:
EXHIBIT "E"
FORM OF REQUISITION
, 20_
Pursuant to the Bond Resolution adopted by the Urban Redevelopment Agency of
Augusta (the "Agency ") on May 13, 2010, as supplemented by that certain Pricing Resolution
adopted by the Agency on June 17, 2010 (collectively, the "Bond Resolution "), you are hereby
directed to disburse from the Series 2010 Account established within the Urban Redevelopment
Agency of Augusta Taxable Revenue Bonds (Laney - Walker and Bethlehem Project) Project
Fund (the "Project Fund ") the amount set forth below in accordance with the instructions set
forth below:
ATL 17498710v10
1. This requisition should be paid from the Series 2010 Account of the Project Fund.
2. This is requisition number from said Series 2010 Account of the Project Fund.
3. The name and address of the person, entity, firm or corporation (the "Payee ") to
whom the disbursement is due or shall be payable (as the case may be) is as follows:
[INSERT NAME OF PAYEE]
4. The amount to be disbursed is $ , and is to [fund /reimburse /pay]
the below described cost, expense, investment or obligation in respect of [INSERT
NAME OF THE URBAN REDEVELOPMENT PROJECT/LOAN OR GRANT
PROGRAM], as part of [Payee's acquisition, construction, development and
equipping of the Project][Payee's participation in
Loan Program] [Payee's acquisition of eligible property].
Exhibit E
5. Such obligation (i) has been incurred as part of the implementation of the Series 2010
Project, (ii) is a proper charge against the Project Fund, as contemplated in the Bond
Resolution and the Contract (as defined in the Bond Resolution), and (iii) has not
been the basis for a prior requisition that has been paid. The payment of such
obligation is consistent with the guidelines imposed upon the Series 2010 Project.
COUNTERSIGNED:
URBAN REDEVELOPMENT AGENCY OF AUGUSTA
By:
Title:
AUGUSTA, GEORGIA
By:
Title:
ATL 17498710v10
ATL 17498710v10
Exhibit E