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

the Trigger Date "). The ___ _ l __....__ t.. shall be payable He late_ than ne. Feh 31 of each calendar year following the Trigger Date until paid :., full Such payments shall only come from available surplus cash two times a year. annually and semi -annually, when the surplus cash calculation is completed in accordance with that certain Regulatory Agreement related to the Protect. There will be no penalty for early payment of the special assessment. Upon repayment to the City pursuant to this paragraph, the funds shall be repaid to the CRA and deposited in the Redevelopment Revenue Special Trust Fund. 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 assessments in terms of priority of payment in any such calendar year and the special assessment, upon approval by City Council, shall be partially paid to the extent of available sumlus cash and the remaining balance of the annual payment shall be deferred and accrue aefwied until paid in subsequent calendar years. ". 2. 2. Two other documents were also required by HUD: 2. 2. 1. Subordination Agreement to allow the City to place a subordinate loan and lien on the Sound Side property, and 2. 2. 2. Surplus Cash Note stating that the City' s loan will be repaid using surplus cash from the development. This document does not require signature from the City. 2. 3. The maturity date of the primary mortgage and all other documents has been revised to coincide with July 1, 2054. The primary mortgage has a payback period of 40 years. 3. FINANCIAL INFORMATION: 3. 1. The amended Sound Side Interlocal Agreement addresses all of HUD' s comments and limits the City' s contribution to no more than $ 700K from the CRA Fund. 4. 4. 1. Staff respectfully requests CRA Board of Commissioners recommendation and City Council authorization for the CRA Chairperson and Mayor to execute the Second Amendment to the Interlocal Agreement with the FWBHA and Sound Side Apartments, LLC for the Sound Side Apartments development and any accompanying documents associated with the Interlocal Agreement, including the Subordination Page 2 of 3 Packet Pg. 13  F-7 .1 Agreement. ATTACHMENTS: Sound Side Second Amendment to Interlocal Agreement ( DOC) Sound Side Subordination Agreement ( DOC) Sound Side Surplus Cash Note ( DOC) Sound Side tst Amendment to Interlocal Agreement- 09 - 11 - 2012 ( PDF) Sound Side Interlocal Executed 06- 25- 2010 ( PDF) SIGNATURE BLOCK: Finance Completed 02/ 05/ 2013 7: 32 AM City Attorney Completed 02/ 05/ 2013 4: 41 PM City Manager Completed 02/ 05/ 2013 4: 45 PM Community Redevelopment Agency Pending City Council Pending Page 3 of 3 Packel.Pg. 14  7. 1. a SECOND AMENDMENT TO INTERLOCAL AGREEMENT AMONG THE CITY OF FORT WALTON BEACH, FLORIDA, FORT WALTON BEACH COMMUNITY REDEVELOPMENT AGENCY FORT WALTON BEACH HOUSING AUTHORITY & SOUND SIDE APARTMENTS, LLC, REGARDING INFRASTRUCTURE IMPROVEMENTS AT SOUND SIDE APARTMENTS, A PLANNED UNIT DEVELOPMENT THIS SECOND AMENDMENT TO INTERLOCAL AGREEMENT ( the ` Second Amendment') is made and executed this day of , 2013, among the City of Fort Walton Beach ( " City"), a Florida municipality, Fort Walton Beach Community Redevelopment Agency ( " CRA "), a Florida special district, Fort Walton Beach Housing Authority ( "FW13HA" ), a body corporate and politic organized under Chapter 421 of the Florida Statutes, and Sound Side Apartments, LLC ( "Sound Side "), a Florida limited liability company collectively known hereinafter as the " Panics "). RECITALS A. The Parties entered into that certain Interlocal Agreement dated June 25, 2010 the " Original Agreement'), as amended by that certain First Amendment to Interlocal Agreement dated September 11, 2012 ( the " First Amendment', together with the Original Agreement, the " Agreement'). B. The Parties now desire to amend certain provisions of the Agreement, on the terms and conditions set forth herein. IN CONSIDERATION OF the foregoing facts and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: I. Recitals. The above Recitals are one and correct and by this reference are incorporated as if fully set forth herein. 2. Amendment of Section 1( f) of the Aereement Section 1( f) of the Agreement is hereby deleted in its entirety and replaced with the following: f. FWBHA wishes to only borrow up to $ 700,000 in Community Redevelopment Revenue Special Trust Funds for the Sound Side Apartments Planned Unit Development" 3. Amendment of Section 1 of the Agreement. Section 1 of the Agreement is hereby amended by adding the following as Section 1( g) of the Agreement: g. This Agreement sets forth the terms and conditions of the agreement between the parties to provide in -kind services and funding for Packet P9. 75  F71. qualifying costs associated with the Project and site demolition." 4. Amendment of Section 6( a) of the Agreement. Section 6( a) of the Agreement is hereby deleted in its entirety and replaced with the following: a. The City will adopt a special assessment pursuant to chapter 170 of the Florida Statutes to recover the expenditure of all qualifying costs associated with the Project and the cost of site demolition that will be initially paid from Revenue Special Trust Funds of the CRA. The total special assessment will be charged against the Property at 26, 28, 30, 32, 36, 38, 40, 42, & 44 Carson Drive SE, Fort Walton Beach, Florida, and shall, until paid in full, remain a lien, coequal with the liens of all state, county, and municipal taxes and superior in dignity to all other liens, titles, and claims, other than as set forth in this Agreement. The panics acknowledge that the total estimated qualifying costs and site demolition will not exceed $ 700,000. The total amount shall be repaid by the Property owner to the City at no more than $ 52, 142. 41 per year at one and one- half percent ( 1. 5 %) interest, and shall be payable no sooner than three years after the Closing ( the " Trigger Date "). Such payments shall only come from available surplus cash two times a year, annually and semi- annually, when the surplus cash calculation is completed in accordance with that certain Regulatory Agreement related to the Project. There will be no penalty for early payment of the special assessment. Upon repayment to the City pursuant to this paragraph, the funds shall be repaid to the CRA and deposited in the Redevelopment Revenue Special Trust Fund. 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 assessments in terns of priority of payment in any such calendar year and the special assessment shall be partially paid to the extent of available surplus cash and the remaining balance of the annual payment shall be deferred and accrued until paid in subsequent calendar years. 5. Amendment of Section 8 of the Agreement. Section 8 of the Agreement is hereby amended by the addition of the following as Sections 8( e) and ( f) of the Agreement: e. The parties hereto acknowledge that public housing assets ( i. e., funds provided to FWBHA pursuant to Section 9 of the Housing Act, including public housing rents and improvements subject to a HUD Declaration of Restrictive Covenants) are not available to FWBHA or Sound Side to satisfy any of the obligations in this Agreement. Accordingly, the City and the CRA acknowledge that public housing operating subsidies, or other receipts generated by FWBHA' s public housing units, may not be used to make any payments hereunder and, furthermore, that the City and the CRA have no legal right of recourse under this Agreement against: 1) any of FWBHA' s public housing projects; 2- Packet Pg. 16  7. 1. a ii) any of FWBHA' s operating receipts ( as the term " operating receipts" is defined in the Consolidated Annual Contributions Contract between HUD and FWBHA, as amended from time to time ( "ACC")); iii) any of FWBHA' s Housing Choice Voucher receipts; iv) any of FWBHA' s Capital Funds; or any of FWBHA' s public housing operating reserve v) reflected in FWBHA' s annual operating budget and required under the ACC. f In no event shall HUD be required to indemnify anyone pursuant to this Agreement' 6. Amendment of Section 9 of the Agreement. Section 9 of the Agreement is hereby amended by the addition of the following as Section 9( c) of the Agreement: c. Notwithstanding anything herein to the contrary, no default may be declared under this Agreement without HUD' s prior approval." Z