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HomeMy WebLinkAboutCouncil Actions 04-23-01 SpMtgROANOKE CITY CO UNCIL SPECIAL SESSION APRIL 23, 2001 IMMEDIA TEL Y FOLL 0 WING AD JO URNMENT OF THE 7:00 P.M. SESSION OF COUNCIL ROANOKE CIVIC CENTER EXHIBIT HALL AGENDA FOR THE COUNCIL 1. Call to Order. 2. Roll Call. e Statement of Purpose. Mayor Smith. Public hearing on the proposed real property tax rate for fiscal year 2001-02. 5. Adjournment. 0 ® 0 ROANOKE CITY CO UNCIL SPECIAL SESSION APRIL 23, 2001 7:00 P.M. ROANOKE CIVIC CENTER EXHIBIT HALL AGENDA FOR THE COUNCIL Call to Order. Roll Call. Invocation. Council Member William D. Bestpitch. Pledge of Allegiance to the Flag of the United States of America. Statement of Purpose. Public Hearings: Mayor Smith HUD Recommended budget. 2001-02 proposed City budget. Proposed increase in cigarette tax rate. Proposed increase in transient occupancy tax rate. Proposed revisions to the structure and rates of septic tank disposal fees and City water rates and related charges for services. 7. Other Business: ae A communication from the City Manager with regard to an agreement for the Shenandoah Crossing project. A Resolution changing the time of commencement of the May 7, 2001 City Council meeting from 2:00 p.m., to 3:15 p.m., in the City Council Chamber. 8. Adjournment. CITY OF ROANOKE Office of the City Clerk Mary F. Parker, CMC City Clerk Stephanie M. Moon Deputy City Clerk April 23, 2001 File #178 Darlene L. Burcham City Manager Roanoke, Virginia Dear Ms. Burcham: I am attaching copy of Resolution No. 35296-042301 authorizing execution of a proposed Agreement among the City of Roanoke, the City of Roanoke Redevelopment and Housing Authority, Highland Mortgage Company, Shenandoah Crossings, L. P., and the Secretary of Housing and Urban Development, to provide for implementation of certain aspects of the Redevelopment Plan for the Gainsboro Community area, specifically regarding conversion of the former Norfolk and Western GOB South into market rate apartments, such Agreement to provide assistance in securing financing and effectuating the project. The above-referenced measure was adopted by the Council of the City of Roanoke at a special meeting which was held on Monday, April 23, 2001. Sincerely,~[, ~ ;:~' ~~ Mary F. Parker, CMC City Clerk MFP:ssh Enclosure pc: John P. Baker, Executive Director, City of Roanoke Redevelopment and Housing Authority, 2624 Salem Turnpike, N. W., Roanoke, Virginia 24017 James D. Grisso, Director of Finance HSAgendas 2001\Corresp April 23, 2001 .wpd IN' THE COU2qCIL OF THE CITY OF ROANOKE, VIRGINIA, The 23rd day of April, 2001. No. 35296-042301. A RESOLUTION authorizing execution of an Agreement among the City of Roanoke, the City of Roanoke Redevelopment and Housing Authority (Authority), Highland Mortgage Company (Highland), Shenandoah Crossings, L.P., (Borrower), and the Secretary of Housing and Urban Development (HUD) to provide for implementation of certain aspects of the Redevelopment Plan for the Gainsboro Community Program Area, specifically regarding the conversion of the former Norfolk and Western GOB South into market rate apartments, such Agreement to provide assistance in securing financing and effectuating the project. WHEREAS, by Resolution No. 34969-071700, adopted on July 17, 2000, City Council authorized the execution by the City of the Shenandoah Crossing Cooperation and Parking Agreement, dated July 20, 2000, with the City of Roanoke Redevelopment and Housing Authority; WHEREAS, in order to facilitate funding approval by HUD, a five-party agreement relating to the Project is necessary at this time. THEREFORE, BE IT RESOLVED by the Council of the City of Roanoke as follows: 1. The City Manager and the City Clerk are authorized to execute and attest, respectively, the proposed Agreement among the City, the City of Roanoke Redevelopment and Housing Authority (Authority), Highland Mortgage Company (Highland), Shenandoah Crossings, L.P. (Borrower), and the Secretary of Housing and Urban Development (HUD), in accordance with the recommendations contained in the letter of the Cg3t Manager to City Council dated April 23, 2001, for the purpose of assisting in securing financing for the Project. 2. The Agreement shall be in substantially the same form as that which is attached to the aforementioned City Manager's report, and shall be approved as to form by the City Attorney. ATTEST: City Clerk. Office of the City Manager April 23, 2001 The Honorable Ralph K. Smith, Mayor The Honorable William H. Carder, Vice Mayor The Honorable William D. Bestpitch, Council Member The Honorable C. Nelson Harris, Council Member The Honorable W. Alvin Hudson, Jr., Council Member The Honorable William White, Sr., Council Member The Honorable Linda F. Wyatt, Council Member Dear Mayor Smith and Members of City Council: Resolution No. 34969 was adopted on July 17, 2000 by Roanoke City Council, authorizing City officials to execute the Shenandoah Crossing Cooperation and Parking Agreement between the City of Roanoke and the Roanoke Redevelopment and Housing Authority (RRHA). Through this project, RRHA will convert the former Norfolk and Western GOB South into market rate apartments. A budget ordinance adopted at the same council meeting provided funding of $1.2 million to the RRHA to assist in the financing of the renovation and conversion. Other sources of funding for the project include syndication proceeds and mortgage funds insured by the United States Department of Housing and Urban Development (HUD). To more properly formalize arrangements for the financing of the entire Shenandoah Crossing Project, HUD has advised the City to execute an agreement which appropriately involves all parties to the project. These parties include the City, RRHA, Shenandoah Crossings, LP, Highland Mortgage Company, and HUD. An agreement is attached which accomplishes this goal. We recommend that Council adopt the attached resolution which authorizes execution of this five-party agreement. Room 364 Municipal South 215 Church Avenue, S.W. Roanoke, Virginia 24011-1591 (540) 853-2333 FAX (540) 853-1138 CityWeb:www. ci,roanoke.va.us Honorable Mayor and Members of City Council April 23, 2001 Page 2 Sincerely, Darlene L. Burcham City Manager Director of Finance JDG/JSY/pac Attachments C~ William M. Hackworth, City Attorney Mary F. Parker, City Clerk John P. Baker, Executive Director, RRHA AGREEMENT THIS AGREEMENT is made as of the __. day of April, 2001, among the CITY OF ROANOKE, VIRGINIA, a municipal corporation of the Commonwealth of Virginia (the "City"), the CITY OF ROANOKE REDEVELOPMENT AND HOUSING AUTHORITY, a political subdivision of the Commonwealth of Virginia (the "Authority"), HIGHLAND MORTGAGE COMPANY, an Alabama corporation ("Highland"), SHENANDOAH CROSSINGS, L.P., a Virginia limited partnership (the "Borrower") and the SECRETARY OF HOUSING AND URBAN DEVELOPMENT ("HUD"). RECITALS The Borrower is proposing to convert a vacant office building located at 8 Jefferson Street in the City of Roanoke, Virginia into 87 units of market rate housing (the "Project") and has received a commitment from Highland for a $5,405,100 loan (the "Highland Loan"). HUD has issued a commitment to Highland to insure the Highland Loan (the "HUD Commitment"). In the HUD Commitment, HUD has required that the Borrower deposit with Highland $4,078,670 to complete the Project (the "Front Money Escrow"), provided, however, that the Front Money Escrow may be reduced by up to $1,200,000 representing grant/loan funds placed in an escrow account acceptable to HUD. The City has entered into an agreement with the Authority dated July 20, 2000 (the "City Agreement"), a copy of which is attached hereto as Exhibit A to provide the Authority $1,200,000 (the "City Funds"), which the Authority, pursuant to this Agreement, will loan to the Borrower. The parties are entering into this Agreement to (i) address the requirements of the HUD Commitment and (ii) provide the terms upon which the Authority will loan the City Funds to the Borrower (the "$1,200,000 Authority Loan"). AGREEMENT FOR and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. The City agrees to provide the City Funds to the Authority in accordance with the provisions of the City Agreement. The City agrees to disburse the City Funds to the Authority in accordance with the provisions of Section I of the City Agreement. 2. The Authority agrees to make advances to the Borrower to fund the $1,200,000 Authority Loan immediately upon its receipt of the funds from the City pursuant to Section I of this Agreement. 3. The $1,200,000 Authority Loan will be evidenced by the promissory note attached hereto as Exhibit B (the "$1,200,000 Note"). The $1,200,000 Note and that certain $ note made by the Borrower payable to the Authority (the "Additional Note") will be secured by a deed of trust (the "Deed of Trust"), the form of which is attached hereto as Exhibit C. 4. Highland consents to the execution and recordation of the Deed of Trust and agrees that its existence does not constitute a basis for default under the Loan. 5. The parties agree that: (a) Notwithstanding the provisions of Section 2, the Authority will only disburse (the "Authority Disbursement") proceeds of $1,200,000 Authority Loan to the Borrower upon receipt of confirmation from Highland indicating (i) that HUD has approved an Application for Insurance of Advances of Mortgage Proceeds, Form HUD-92403 (the "Approved Advance"), and (ii) the amount of money to be disbursed to the Borrower. (b) HUD shall have the sole authority to resolve differences in the inspection process and the disbursement of $1,200,000 Authority Loan proceeds from the Authority to the Borrower. (c) Highland shall send the Authority a copy of each Approved Advance and Form HUD'92448, Contractor's Requisition. (d) The Authority shall process the Authority Disbursement promptly and without adjustment. (e) The Authority shall notify HUD if there is a need to make any adjustment in a succeeding month. -2- (f) The Authority agrees to assume the risk for any $1,200,000 Authority Loan proceeds disbursed to the Borrower in excess of the amount approved by HUD (an "Excess Disbursement") and agrees to replenish the Excess Disbursement within 10 working days of notification by HUD. (g) Ifa default under the Highland Loan occurs before completion of construction, the City and the Authority agree to disburse the remaining funds in the City Funds and the $1,200,000 Authority Loan, respectively, in accordance with the provisions of this Agreement so long as each request for funds is comprised of 40% Highland Loan proceeds or funds to complete provided by Highland and 60% Front Money Escrow proceeds. 6. This Agreement may be executed in several counterparts, all of which together shall constitute one and the same instrument. 7. This Agreement shall be binding on the parties and their respective successors and assigns. WITNESS the following signatures: CITY: CITY OF ROANOKE, VIRGINIA By: Its: AUTHORITY: CITY OF ROANOKE REDEVELOPMENT AND HOUSING AUTHORITY By: Its: HIGHLAND: HIGHLAND MORTGAGE COMPANY By: Its: Senior Vice President '3- BORROWER: SHENANDOAH CROSSINGS, L.P. By: Shenandoah Crossings, Inc., General Partner By: Its: President HUD: SECRETARY OF HOUSING AND URBAN DEVELOPMENT By: Its: Authorized Agent APPROVED AS TO FORM: City Attorney APPROVED AS TO EXECUTION: City Attorney -4- SHE2qANDOAH CROSSING COOPERATION AND PARKING AGREEMENT THIS SHENANDOAH CROSSING COOPERATION AND PARKING AGREEMENT is made as of this ~0~ day of J'uly, 2000, by and between the CITY OF ROANOKE, a municipal corporation of the Commonwenlth of Virginia (the "City") and the ROANOKE REDEVELOPMENT AND HOUSING AUTHORITY, a political subdivision of the Commonwealth of Virginia ("RRHA"). RECITALS: WHEREAS, the Norfolk and Western General Office Building South ("C-OB-South") is located in a section of the City which contains blighted areas which impair economic values and -tax revenues, cause an increase in and spread of disease and crime, and constitute a menace to the health, safety, morals and welfare of the residents of the City; and WHEREAS, within said area of the City the condition of title, diverse ownership of the land to be assembled, street or lot layouts or other conditions have prevented proper development of the land; and WHEREAS, on Sanuary 10, 1972, the City Council approved the Redevelopment Plan/'or the Gainsboro Community Program Area (the "Plan") which Plan was subsequently approved by RRHA's Board of Commissioners and has since been amended by the City Council and RRHA's Board of Commissioners on several occasions since 19'/2; and WHEREAS, RRHA wishes to convert the GOB-South Build/nE into market rate apartments to enhance the continued improvement within the Plan area (the "Project"); and EXHIBIT A WHEREAS, RRHA has formed Shenandoah Crossing, L.P., a limited partnership into which flinch will be transferred by RRHA and Shenandoah Crossing, Inc., a Virginia Corporation to serve as the general partner of Shenandoah Crossing, L.P.; and WHEREAS, by the execution hereof the City does ratify, approve and confirm the formation of such legal entities pursuant to S~tion 36-19(12) of the 1950 Code of Virginia, as amended; and WHEREAS, the City intends to grant to the Project $1.2 Million Dollars to be used to renovate, improve and construct market rate apartments in the Project with the understanding that said City funds will be used with other sources of fuming for the Project including syndication proceeds and mortgage funds insured by the United States Department of Housing and Urban Development ("HUD."); and WHEREAS, the City and Authority wish to work together to accomplish the successful completion of the Project and the general revitalization ofthat part of the City known as the Csalnsboro Community. NOW, THEREFORE, in consideration of the benefits to accrue to the City and its citizens from the iml~lement~tion ofth~ Proj~, and of the mutual covenant~ her~in~er set forth, the City and RRHA agr~ u follows: 1. The m~inmm oblisation of the City pursuant to this Agreement will be $1.2 1Vlilllon. Such lunch *llocated to the Project will be maintained by the City in an account to be identitied by the City and approved by HUD. 2. During the construction phase of the Project, the City shall tran~er such funds to RRHA for further disbur~ment into the Project, in a maximum of five installments. The first such transfer will be in an amount not to exceed $200,000 at the date of the execution by RRHA ora Construction Contract to construct the Project. The four subsequent transfers will be based upon an analysis of cash needs during the construction process and will not exceed $500,000 each. The sum of $100,000 will be withheld by the City from the final such funds transfer until the Project is 75% complete as determined by the architect's Progress Certificate. RRHA will notify the City of the amount of each transfer and the City shall make such transfer to RRI-IA within five (5) business days of the date of the City's receipt of such notice. 3. Said funds shall be disbursed by RRHA in accordance with a formula to be determined by RRHA, the City, and HUD based upon an analysis of the syndication proceeds, mortgage proceeds and other equity flowing into the Project. 4. RRHA will use its best efforts to obtain residual equity cash flow from the Project and to use such residual equity cash flow to make annual contributions, as soon as such cash flow is available, to the City in a total amount not to exceed $!.2 M~llion. Each such annual cash contribution shall be paid to the City. 5. RRI-IA agrees to implement the Project and to provide and make available 87 market rate apartments located in the Project. 6. For a period of five (5) years, said period to begin twelve (12) months following the issuance ora F'tnal Certiti~ of Occupancy for the Project, the City will provide up to 87 parking spar, el to RRHA for use by tenants in the Proje~, as they are needed by tenants, at a ratio of one parking space per apartment. These parking spaces will be located in the parking structure to be constructed and maintained by the City immediately adjacent to the Project. Funding for the parking will be provided by the City upon completion of the parking structure, subject to annual appropriation, by the transfer by the City to the City's Transportation Fund of funds, as determined appropriate by the City, said amount being based upon the number of'occupied apartments in the Project. 7. During the fifth year following the issuance of the Final Certificate of Occupancy, the City and RRHA will evaluate the Project's ability to pay for parking at the beginning of the sixth year, and the City's continued provision of' such funding for parking. $. Any notices required to be given under this Agreement shall be sufficient if in writing and sent by first class, registered or certified mail, return receipt requested; if to RRHA, to the Executive Director, P.O. Box 6359, Roanoke, Virginia 24017-0359; or if to the City, to the City Manager, 215 Church Avenue, SW, Room 364, Roanoke, Virginia 24011. Either party may change it~ ~ldre~ for purposes of notice by giving notice to the other in accordance with this paragraph. 9. This Agreement shall bo binding upon and shall inure to the benefit of the successor~ snd permitted ~ssigns of the'parties hereto; provided, however, that in no event may this Agreement or any of the rights, benefits, duties or obligations of the parties hereto, be assigned, transferred or otherwis~ disposed of without the prior written consent of the other, which consent neither p~'ty slufll bo obligated to give. 10. It i~ unde~tood between the parties that no third party rights are created by this Agreement. ROANOKE REDEVELOPMENT AND HOUSING AUTHORITY ~_~Exeeuti4e Directo~ ~~ Approved as to Financing: Approved as to Form: City Attorney ?. & 4~A ~ Approved as to Execution: city Atrophy t~ ~ BORROWER: SHENANDOAH CROSSINGS, L.P. By: Shenandoah Crossings, Inc., General Partner By: Its: President HUD: SECRETARY OF HOUSING AND URBAN DEVELOPMENT By: Its: Authorized Agent -4- IN THE COUNCIL OF THE CITY OF ROANOKE, VIRGINIA, The 23rd day of April, 2001. No. 35297-042301. A RESOLUTION changing the time of commencement of the regular meeting of City Council scheduled to be held at 2:00 p.m., on Monday, May 7, 2001. BE IT RESOLVED by the Council of the City of Roanoke that: 1. The time of commencement of the meeting of City Council scheduled to be held at 2:00 p.m., on Monday, May 7, 2001, in the Council Chamber of the Noel C. Taylor Municipal Building, at 215 Church Avenue, S. W., in the City of Roanoke, is hereby changed to commence at 3:15 p.m. on that date. 2. Resolution No. 34905-070300, adopted July 3, 2000, is hereby amended to the extent it is inconsistent with this resolution. 3. The City Clerk is directed to cause a copy of this resolution to be posted adjacent to the doors of the Council Chambers and inserted in a newspaper having general circulation in the City at least seven days prior to May 7, 2001. ATTEST: City Clerk.