Fort Walton Beach Council agenda — 02-12-13--cra — reading text

goals and polices of the CRA Redevelopment Plan, on March 23, 2010, the City Council of Fort Walton Beach adopted Resolution 2010 -12 that approved the use of up to $ 2, 500, 000 in Community Redevelopment Revenue Special Trust Funds for site demolition, site infrastructure improvements, site restoration, and other costs for the Sound Side Apartments Planned Unit Development. C. The Project is a Planned Unit Development that will redevelop Germany Terrace, a 50 -unit public housing development on property which lies along Carson Drive SE and Third Street SE, which is owned at the time of execution of this Agreement by the FWBHA and which lies within the limits of the Fort Walton Beach Community Redevelopment Area ( the " Property'), to a 200 -unit affordable housing development. d. FWBHA shall transfer the Property to Sound Side on or before the closing of the Senior Loan ( as defined below), and Sound Side shall develop the Project. e. The Project will be financed via a loan ( the " Senior Loan ") and related conventional mortgage insured by the United States Department of Housing and Urban Development ( "HUD ") and bonds issued by FWBHA under the Build America Bond Program. Packet Pg. 4T  71 . 6/ 3/ 10 f. This Agreement sets forth the terms and conditions of the agreement between the parties to provide in -kind services and funding for site demolition, site infrastructure improvements, site restoration, and other qualifying costs associated with the Project. 2. Authority This Agreement is entered into pursuant to all applicable provisions of the Florida Constitution, and Florida law, including but not limited to Chapters 163, 166, 170, 189, and 421 of the Florida Statutes a. Section 170. 01, F. S., authorizes the City to make certain improvements and levy and collect a special assessment against property benefited by such improvements. A special assessment may be levied and collected for: 1. the construction, reconstruction, repair, renovation, excavation, grading, stabilization, and upgrading of greenbelts, swales, culverts, sanitary sewers, storm sewers, outfalls, canals, primary, secondary, and tertiary drains, water bodies, marshlands, and natural areas, all or part of a comprehensive stormwater management system, including the necessary appurtenances and structures thereto and including, but not limited lo, dams, weirs, and pumps; 0 2. the construction or reconstruction of water mains, water laterals, alternative water supply systems, including, but not limited lo, reclaimed water, aquifer storage and recovery, and desalination systems, and other water distribution facilities, including the necessary appurtenances thereto; 3. the relocation of utilities, including the placement underground of electrical, telephone, and cable television services, pursuant to voluntary agreement with the utility, but nothing contained in this paragraph shall affect a utility' s right to locate or relocate its facilities on its own initiative at its own expense; and 4. the drainage and reclamation of wet, low, or overflowed lands. b. With regard to the special assessment made pursuant to Section 170. 09, F. S., for improvements associated with the Project, the special assessment rate shall be based on the special benefit accruing to the Property from such improvements which is different in type or degree from benefits provided to the community as a whole. Pursuant to Section 170. 09, F. S., the special assessment is considered and remains a lien coequal with the lien of all state, county, district, and municipal taxes, and superior in dignity to all other liens, titles, and claims, until paid ( other than as set forth in this Agreement). The special assessment shall bear interest at a rate not to exceed eight percent ( 8 %) per year, and may be payable in equal installments over a period not to Packet Pg. 48  F711. 6/ 3/ 10 exceed thirty (30) years, or paid without interest at any time within thirty (30) days after the improvement is completed and accepted by the City. Notwithstanding the provisions set forth above, in the event that Sound Side has insufficient funds to pay both the special assessment and the debt service payments under the Senior Loan in any calendar year, then the Senior Loan shall be senior to the special assessment in terns of priority of payment in any such calendar year and the special assessment, upon approval by City Council, shall be partially paid and the remaining balance of the annual payment deferred and accrue until paid in subsequent calendar years. C. Pursuant to Section 163.370, F. S., the CRA has authority to use Revenue Special Trust Funds to make, or contract with any person to make, all surveys, studies, and other plans necessary to carry out the Community Redevelopment Plan (' Plan "). The CRA may appropriate and make expenditures as are necessary to carry out the purposes of the Plan and to enter into this Agreement. Pursuant to Section 163. 400, F. S., the CRA and the City may incur the entire expense of any public improvements, do any and all things necessary to aid in the carrying out of a community redevelopment plan and related activities, contribute funds, cause public facilities to be furnished, and enter into agreements, which may extend over any period notwithstanding any provision or rule of law to the contrary, with any public body to carry out community redevelopment activities. Section 163. 378(6xg), F. S., permits the use of Revenue Special Trust Funds for the development of affordable housing within the community redevelopment area. d. The City and CRA recognize and agree that redevelopment projects constitute an essential element and aspect of the CRA's Redevelopment Plan. ( Section 7( b) of the Interlocal Agreement between the City and CRA). By authority of Section 6( a) of the Inte local Agreement between the City and the CRA, the City is responsible for the administration and management of the redevelopment program contemplated by the Redevelopment Plan. The City, and CRA acknowledge that the Project is of the kind contemplated by the Redevelopment Plan and is an authorized expenditure of the CRA Revenue Special Trust Funds. 3. Responsibilities of the Parties a. Sound Side shall construct and develop the Project, except for the infrastructure that will be constructed by the City pursuant to the terms of this Agreement, in accordance with all applicable State, local and federal permits and approvals. b. Upon completion of construction and issuance of a certificate of occupancy, Sound Side shall maintain the Project as affordable housing in accordance with the applicable permits, development orders, other approvals, and documents of conveyance for the property of the Project. Packet Pg. 49  7. 1. e 6/ 3/ 10 C. The City shall construct and maintain necessary infrastructure improvements to facilitate the Project consistent with the terms of this Agreement. d. The CRA shall contribute up to $ 2, 500,000 in Community Redevelopment Revenue Special Trust Funds for site demolition, infrastructure improvements, restoration, and other qualifying costs for the Project in accordance with the terms of this Agreement. 4. Qualifying Costs a. Qualifying costs shall include costs associated with the surveys, studies, plans and other costs necessary to assist in getting financing for the Project and for the construction of the infrastructure improvements and site preparation, including demolition and restoration, necessary for the completion of the Project, for which the CRA may legally expend funds from the Redevelopment Trust Fund. At all times, the City shall maintain records of accounting as to the expenditure of the CRA funds for qualifying costs, which records shall be submitted to the CRA for information on a monthly basis. b. Within eighteen months, or at such other time as agreed by the parties, the CRA shall distribute funds to the City and the City shall distribute the funds as set forth below necessary to cover the qualifying costs of the Project in accordance with the following schedule: i. $ 500, 000 shall be distributed to Sound Side, upon execution of this Agreement by all parties, to cover the qualifying costs for pre -closing expenses and fees, including, without limitation, the anticipated qualifying costs set forth in Exhibit " A" which is attached to this Agreement and incorporated by reference; and ii. $ 200,000 shall be distributed to the City, upon written approval from HUD to move forward with demolition in relation to HUD's mortgage insurance program, to cover the demolition of the existing structures on the Property; and iii. $ 1, 800,000 shall be distributed to the City, upon dosing of the Senior Loan, including the HUD mortgage insurance and the issuance of the Build America Bonds ( the " Closing "), to cover the construction of infrastructure, which includes the potable water system, fire service, sanitary sewer system, stonnwater management system, sidewalks, curb and gutter, asphalt paving, and site preparation and restoration expenditures. 5. Construction of Infrastructure Improvements a. The City will make infrastructure improvements to the property at 26, 28, 30, 32, 36, 38, 40, 42, & 44 Carson Drive SE, Fort Walton Beach, Florida, ( the Properly") as specified in the Sound Side Apartment Homes civil drawings and specifications prepared, and as amended, by Jenkins Engineering, Inc., a copy of which Packet Pg. 50  F71. 6/ 3/ 10 is attached as Exhibit " B" and incorporated by reference. The City will have full management and control of the construction of such improvements and may hire professionals and subcontractors as necessary to assist in the completion of the improvements. The City will use its best efforts to complete the improvements within nine to twelve months from Closing. The City will coordinate with the contractor responsible for the building construction to