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untanglingwebs
El Supremo
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Tue Jun 02, 2015 4:17 pm |
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untanglingwebs
El Supremo
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EM SUBMISSION NO.:Ft44 ‘4/R2oI
RESOLUTION
PRESENTED:
ADOPTED:
RESOLUTION TO FORGIVE THE REPAYMENT OF $545,500.49 in HOME PARTNERSHIP
FUNDS BY FIRST STREET LOFTS, LLC FOR THE FIRST STREET LOFTS PROJECT
BY THE EMERGENCY MANAGER
In Resolution Number 063515 dated July 24, 2006, the City of Flint awarded First Street Lofts, LLC. $545,500.49 in federal funding from the HOME Investment Partnerships (“HOME”) program. These funds were made available for permanent financing of the First Street Lofts
Project.
The funds were provided for the construction of four affordable units within the 16 unit restoration project. The First Street Loft apartments are fully occupied but the developers have not been able to replace a commercial tenant and have been operating at a loss
First Street Lofts, LLC is requesting the City to convert the HOME Partnerships funds awarded in the contract to a forgivable loan. First Street Lofts will continue to maintain the four units supported with HOME funds as affordable units until the end of the fifteen year HOME
Affordability period, September 27, 2021.
IT IS RESOLVED, the Emergency Manager authorizes the appropriate City of Flint officials to do all things necessary to execute an amended development agreement with First Street Lofts LLC to forgive the $545,500.49 HOME loan associated with the 16 unit, First Street Lofts development located in the City of Flint.
ENACT A 4 FAIL___
GJaId Ambrose, Emergency Manager
DATED
APPROVED AS FORM:
EDPI
nistralor
RESOLUTION STAFF REVIEW FORM
DATE: April24, 2015
AEenda Item Title:
RESOLUTION TO FORGWE THE REPAYMENT OF $545,500.49 in HOME PARTNERSHIP
FUNDS BY FIRST STREET LOFTS LLC FOR THE FIRST STREET LOFTS PROJECT
Prepared By:
Author: Tracy B. Atkinson
Requestor: Community and Economic Development (CED)
Backeround/Summany of Proposed Action:
The City of Flint awarded First Street Lofts, LLC. $545,500.49 in federal funding from the HOME Investment Partnerships (“HOME”) program. These fUnds were made available for permanent financing
of the First Street Lofts Project.
The funds were provided for the construction of four affordable units within the 16 unit restoration project. The First Street Loft apartments are fUlly occupied but the developers have not been able to replace a commercial tenant and have been operating at a loss
First Street Lofts, LLC is requesting the City to convert the HOME Partnerships funds awarded in the contract to a forgivable loan. First Street Lofts will continue to maintain the four units supported with HOME funds as affordable units until the end of the fifteen year affordability period, September 27, 2021.
Forgiveness of this loan will allow First Street Lofts, LLC to restructure their debt in order to make physical improvements to the commercial space formerly occupied by a bank and make it more attractive
for potential tenants.
Financial Implcatjons: The City will not receive the annual $69,431.00 in Program Income for the 10 year period of the loan agreement. The borrower would have began making payments in 2027.
Budgeted Expenditure: Yes X No— Please explain, if no:
Reviewed and approved by C. Dotson _____________
Pre-eiicumbered: Yes— No— Requisition #
Other Implications: There are no known implications
S i mend i n: Staff recommends approval of this resolution.
AP OVAL
S
Tracy B. A nson, ef Officer, CED |
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Tue Jun 02, 2015 4:22 pm |
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untanglingwebs
El Supremo
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Searched for: FIRST STREET LOFTS, LLC
ID Num: B0056Q
Name:FIRST STREET LOFTS, LLC
Type: Domestic Limited Liability Company
Resident Agent: TROY FARAH
Registered Office Address: 503 S SAGINAW STE 804 FLINT MI 48502
Mailing/Office Address: P.O. Box 3597 FLINT MI 48502
Formation/Qualification Date:3-3-2004
Jurisdiction of Origin:MICHIGAN
Managed by: Managers
Status: ACTIVE Date: Present |
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Tue Jun 02, 2015 4:25 pm |
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untanglingwebs
El Supremo
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Searched for: FIRST STREET LOFTS TENANT, LLC
ID Num: B0737Y
Name:FIRST STREET LOFTS TENANT, LLC
Type: Domestic Limited Liability Company
Resident Agent: TROY FARAH
Registered Office Address: 503 S SAGINAW STE 804 FLINT MI 48502
Mailing/Office Address: 503 SOUTH SAGINAW STREET SUITE 1500 FLINT MI 48502
Formation/Qualification Date:6-29-2005
Jurisdiction of Origin:MICHIGAN
Managed by: Managers
Status: ACTIVE Date: Present |
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Tue Jun 02, 2015 4:30 pm |
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untanglingwebs
El Supremo
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Searched for: FIRST STREET LOFTS MANAGER, LLC
ID Num: B6372W
Name:FIRST STREET LOFTS MANAGER, LLC
Type: Domestic Limited Liability Company
Resident Agent: TROY FARAH
Registered Office Address: 503 S SAGINAW STE 1500 FLINT MI 48502
Mailing/Office Address:
Formation/Qualification Date:5-16-2005
Jurisdiction of Origin:MICHIGAN
Managed by: Members
Status: ACTIVE Date: Present |
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Tue Jun 02, 2015 4:31 pm |
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untanglingwebs
El Supremo
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Uptown Developments | Residential
Stunning 2 bedroom loft apartments in the heart of Downtown Flint. ... Great views
of the Historic Capital Theater or Saginaw Street. ... First Street Lofts. .
http://www.uptowndevelopments.com/#!residential/c20x9 - 146k - Cached - Similar
Uptown Developments
Downtown Lofts, Apartments, Commercial and Residential Real Estate, Rental,
Lease, Build to Suit, Flint Michigan. ... Now open 2 bedroom 2 bathroom in First
Street Lofts $1200/mo. Call Today ...
http://www.uptowndevelopments.com/ - 9k - Cached - Similar Pages
Uptown Developments, LLC | Facebook
Main office located at: 503 South Saginaw Street, Suite 1500 Flint, MI 48502 ...
We currently have a beautiful 2 bed, 2 bath unit open in the First Street Lofts ...
https://www.facebook.com/Uptowndevelopments - 443k - Cached - Similar Pages
Look inside downtown Flint's trendy new lofts in MSU building ...
Sep 16, 2014 ... The former Flint Journal building is getting new life and new tenants. ... A first look
at the Uptown Reinvestment Corporation lofts in the new Michigan ... 22, leaving
an empty space just down the street from both establishments.
http://www.mlive.com/news/flint/index.ssf/2014/09/look_inside_downtown_flints_tr.html - 161k - Cached - Similar Pages |
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Tue Jun 02, 2015 4:35 pm |
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untanglingwebs
El Supremo
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First Street Lofts
Beautiful affordable units in a georgous historic building. Just across the street from University of Michigan-Flint and a short jog to Hurley, McLaren, Mott Kettering and the Cultural Center. Real big city living in the heart of downtown in spacious luxurious lofts.
Features include, tall ceilings, light hardwood floors, large closets, basements storage, Washer and Dryer in-unit, Individual forced air furnace/air and water heater, larger windows, ambient can lighting in living spaces, Gourmet kitchen with stainless steel appliances and granite counter tops, secure building access and adjacent parking included with rent.
16 units ranging from 790-1454 sq ft. 4 units are rent controlled low income units.
100% Occupied
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Tue Jun 02, 2015 4:38 pm |
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untanglingwebs
El Supremo
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| And now they want more tax breaks! |
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Tue Jun 02, 2015 4:38 pm |
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untanglingwebs
El Supremo
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Tue Jun 02, 2015 4:44 pm |
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untanglingwebs
El Supremo
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Tue Jun 02, 2015 4:59 pm |
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untanglingwebs
El Supremo
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Only days before the debts were restructured
http://www.mlive.com/news/flint/index.ssf/2015/04/flints_landmark_capitol_theatr.html
Uptown group plans $21-million rehab of iconic Capitol Theatre in Flint
Ron Fonger | rfonger1@mlive.com By Ron Fonger | rfonger1@mlive.com
on April 17, 2015 at 11:15 AM, updated April 22, 2015 at 8:23 AM
Key players in the push to redevelop downtown's Capitol Theatre say they are on the verge of securing $500,000 for exterior repairs to the historic building.
FLINT, MI --A subsidiary of Uptown Reinvestment Corp. has signed a deal to buy the Capitol Theatre, a cornerstone downtown property, and aims to spend an estimated $21 million to redevelop and reopen the landmark building.
The Flint & Genesee Chamber of Commerce said in a news release today, April 17, that the Friends of the Capitol Theatre, an arm of the nonprofit Uptown group, has signed a purchase agreement with the Farah family, which has owned the Capitol for 38 years.
Officials declined to release terms of the purchase, but a statement from the chamber says the venue "could be ready for a grand reopening in the next 18-24 months," operating as a "first-class music and performing arts venue" for concerts, plays and other performances.
Tim Herman, URC president and chief executive officer of the chamber, called the potential redevelopment project "a major step forward" and a potential "tipping point for downtown Flint's resurgence."
•RELATED: Help pick Michigan's favorite historic theater
"Downtown Flint continues to show steady growth," Herman said in a statement. "The revitalization has been on the upswing for a decade now with buildings being renovated, loft and other residential living made available, and great restaurants and nightlife. Now we're primed to add the Capitol to this wonderful mix."
Herman said the purchase agreement allows the Friends to perform due diligence and put together the financial structure for the project. Local, state and federal grants as well as tax credits could figure into the mix, he said.
Troy Farah of Capitol Theatre Building LLC, which owns the theater, called the purchase agreement "a very bittersweet transaction for us."
"We had no interest, no desire in selling the property," Farah said, "but it became apparent the only way to raise the funds needed would be under a nonprofit structure."
Today's announcement comes a month after Farah and other key players in the push to redevelop the Capitol said they were on the verge of securing a $500,000 grant from the state of Michigan for exterior repairs to the ornate building.
In recent years, officials for the city, Uptown and the Charles Stewart Mott Foundation have expressed interest in redeveloping the Capitol, which opened in 1928 and operated as a Butterfield movie theater for 50 years.
The building also hosted a a mishmash of live concert performances, including AC/DC, Ray Charles, John Mellencamp and Mel Tillis from the late 1970s until the theater portion of the building closed about 20 years ago.
Farah said the Friends of the Capitol Theatre will be in a position to begin a full renovation quickly because of recent work by his family, including architectural and engineering drawings, asbestos abatement and selective demolition. The Farah family has invested more than $1 million in the Capitol in recent years, he said.
Farah said the Capitol is one of the best-preserved but unrestored theaters in the country.
Built in Italian Renaissance style, one ceiling was designed after the outer vestibule of St. Peter's cathedral in Rome, according to Flint Journal files, and interior walls recreate views of buildings that evoke old Italy.
Today's news release says that in addition to the 2,000-seat theater, the renovation plan includes 25,000 square feet of attached office and retail space.
City officials have highlighted the building as an important asset in Flint's first new master plan in 50 years, and Mayor Dayne Walling and emergency manager Jerry Ambrose supported grant applications to the state earlier this year.
Farah said his father, George Farah, fell in love with the Capitol when he purchased it in 1977 and realized the importance of the property to Flint.
"It's a legacy to our father. He really had the vision of what the Capitol could be to downtown," he said
Post Sun May 31, 2015 8:02 am
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Tue Jun 02, 2015 5:02 pm |
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untanglingwebs
El Supremo
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http://www.mlive.com/entertainment/flint/index.ssf/2015/04/reopening_of_capitol_theatre_w.html _
Scott Atkinson | satkins1@mlive.com
Email the author
on April 21, 2015 at 6:00 PM, updated April 22, 2015 at 8:29 AM
Key players in the push to redevelop downtown's Capitol Theatre say they are on the verge of securing $500,000 for exterior repairs to the historic building.
FLINT, MI -- Gerard Burnash was as surprised as anyone.
As the head of the Flint Downtown Development Authority, it was only natural that his eyes would return again and again to one of Flint's most beautiful buildings, an Italian Renaissance-style structure that sits on the corner of Second Street and Harrison Street in downtown Flint.
"I'd made countless calls, reached out, trying to find funds for it. Troy (Farah, current Capitol owner), he exhausted every avenue also," Burnash said of the Capitol Theatre, which has sat empty and in need of renovations since it closed about 20 years ago.
Before it closed, it was a place that drew large acts such as AC/DC, Rage Against the Machine, Ray Charles, Cypress Hill, and Gallagher.
It seemed that every few years there would be news of a possible sale, some forward movement, on the old theater -- hope that those days might return -- before those whispers faded away and the Capitol continued to sit unused.
Then on April 17, it was announced that it was happening -- really happening. There was a purchase agreement between a subsidiary company of Uptown Reinvestment Corp. and Capitol Theatre owner Troy Farah that would secure $21 million in grant funding to not only restore the building, but do it quickly, within two years, maybe sooner.
The building so many had given up on now had a new birthday.
"This is truly a game-changer. It's the most exciting that happened since I've been down here," Burnash said.
Over the past several years, downtown Flint has seen a resurgence in local businesses, with coffee shops and restaurants opening up and down the main downtown artery of Saginaw Street. Burnash said the reopening of the Capitol won't just mean more people and the money they spend downtown, it means that downtown itself will expand.
Downtown business is concentrated along Saginaw and this will get people straying further down side streets, Burnash said.
"It's another one of those dominoes. That side of town, the east side of Saginaw ... to develop that and make that the entertainment section of town, it's just a very positive development," he said.
People expressed similar sentiments when the Flint Farmers' Market relocated to downtown Flint on First Street, noting that it's an area that previously didn't get much foot traffic.
When the city of Flint updated its master plan in 2013, there was a heavy emphasis on working the arts into the plan, and Mayor Dayne Walling said the reopening of the Capitol fits right in with what is included in the plan.
"A healthy and diverse downtown business district is essential to the long-term sustainability of of the Flint economy, and the redevelopment of the Capitol Theatre is one of the top outstanding opportunities," he said. "A large arts and cultural performance space is the missing link in the downtown fabric, so it is critical to get the doors of the Capitol Theatre open again."
Joel Rash has been putting on concerts in the Flint area for the last two decades, mostly through the all-ages venue, The Flint Local 432, and hosted some shows at the Capitol.
With more businesses downtown now, he said he thinks the Capitol and the area around it have a better chance of success than they had when they closed.
"What was lacking was a downtown Flint that could accommodate 1,500 concert-goers with a place to get a bite to eat beforehand, or grab a drink afterwards. The last decade has seen quite a bit of new food and drink options downtown: Table & Tap, Cork, 501, Blackstones, Tenacity, etc. The economic impact of a restored and active Capitol Theatre is going to be tremendous," he said.
In a statement, Tim Herman, URC President and CEO of the Flint & Genesee Chamber of Commerce, said the Capitol will play host to a variety of acts.
"This is a major step forward and could be the tipping point for taking downtown Flint's resurgence to the next level," he said. "We envision restoring this community gem back to its historic glory and creating a modern entertainment venue for concerts, stage plays, comedy shows and other performance arts."
Farah has called the sale of the theater "bittersweet."
He said he didn't want to let the building go, but said he realized the only way for it to get the funding it needed was to have it under the control of a nonprofit.
He said he's excited at what he thinks the theater will bring to downtown, once it's operational again.
"When the theater operated from 1987-1995, which were the most recent years, we were pretty active, downtown was active at that time, but it was more of a bar scene," he said. "I think today the difference is downtown isn't as much of a bar scene. It's more of a restaurant scene. ... The traffic that the theater will generate -- maybe a couple thousand people a week, that's what's estimated -- will really be incredible for the foot traffic downtown, especially to the restaurants."
It's not the only theater around. Just on the other side of I-475 is the Flint Cultural Center campus, which is home, among other institutions, to The Whiting Auditorium.
Jarret M. Haynes, The Whiting's executive director, said he doesn't see the Capitol as competition but rather a positive development for Flint -- even for The Whiting.
"I'm a big believer in the rising-tide theory," he said. "If you're familiar with The Whiting and the Capitol, they are complimentary venues. It's going to attract a wider audience from the region."
The restoration of historic theaters is nothing new to Haynes, who before coming to Flint was the head of the arm of a nonprofit responsible for restoring nine historic theaters in New York City along the famed 42nd Street.
He said he's been through the Capitol and excited to see it restored as well.
"The thing about those old theaters, and you could take this all the way back to the ancient Greeks, is the way the angles work. There's not a bad seat in the house."
Haynes said he's had some informal talks with people involved in the restoration, and that he is happy to offer whatever insight he can.
"To the extent that we can be helpful, we're certainly willing to be," he said.
Rash, who still oversees The Flint Local 432, said he also thinks having another venue downtown will be a boost for his not just his own organization, but local performers.
"A huge benefit of big shows at the Capitol is the opportunity for local bands to open for national acts. In the '80s and '90s, Troy Farah worked hard to make sure Flint-area bands got a chance to play on the Capitol stage. It was good for ticket sales, but also great exposure for a band that normally played the 432 or local bars," he said.
Post Sun May 31, 2015 8:57 am
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Tue Jun 02, 2015 5:04 pm |
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untanglingwebs
El Supremo
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EM SUBMISSION NO.:FMfI~J23 2..OI~
PRESENTED: 2 9~ I~5’
ADOPTED: e-paq—is
BY THE EMERGENCY MANAGER:
RESOLUTION APPROVING A HOME REGULATORY AGREEMENT AND
DISCHARGE OF MORTGAGE (HOME LOAN) BETWEEN THE CITY OF FLINT
AND FIRST STREET LOFTS, LLC
After review of the financial analysis, operating proformas, and the development agreement of Uptown Development, LLC and its First Street Lofts development, the City recognizes the diminished financial performance of this development due to the loss of a long term tenant; and
Based upon the City’s review, the City will now move forward to convert the HOME loan into a HOME grant pursuant to the covenants contained within the attached Home Regulatory Agreement and Discharge of Mortgage (HOME loan), in order to assist in the stabilization of this development.
IT IS RESOLVED that the Emergency Manager approves the attached Home Regulatory Agreement and Discharge of Mortgage (HOME loan) between the City of Flint and First Street Lofts, LLC, in order to convert the HOME loan into a HOME grant pursuant to the mutually agreed upon covenants contained in the Agreement.
APPROVED AS TO FORM:
P,j≥Bade,~W’ctorney
EM DISPOSITION
FAIL_________ DATED
eraki Ambrose, Emergency Manager
ENACTr
5: P. Bade\EM2015\Resolutions First Street Lofts LLC Reso 04.29.15.docx
HOME REGULATORY AGREEMENT
THIS Agreement, made this 1st day of January, 2007 between First Street Lofts, LLC
(the “Owner”), whose address is 503 South Saginaw Street, Suite 1500, Flint, Michigan 48502, and the City of Flint, Michigan (the “City”), whose address is 1101 South Saginaw Street, Flint,
Michigan 48502.
WITNESSETH:
WHEREAS, the City of Flint, a local Participating Jurisdiction for HOME Investment
Partnership Program (“HOME”), administers HOME funds made available by the U.S.
Department of Housing and Urban Development (“HUD”) subject to the requirements of Section 24, Part 92 of the Code of Federal Regulations (24 CFR 92.1 et seq.); and
WHEREAS, First Street Lofts, LLC, (the “Developer”) has applied for a HOME loan for
the financing of the redevelopment of four housing units located in the First Street Lofts Building at 460 South Saginaw Street, Flint Ml 48502 in the City of Flint, Genesee County, Michigan, which is more fully described in Exhibit A which is hereby incorporated by reference (the “Property”); and
WHEREAS, the Developer is justly indebted to the City in the principal sum of Five-
Hundred and Forty-Five Thousand and Five-Hundred and 49/lOOths dollars ($545,500.49) (the “City HOME Loan”) as evidenced by a certain HOME Development and Loan Agreement dated September of 2006 and a HOME Mortgage Note dated August 27,2006; and
WHEREAS, the City as a Participating Jurisdiction under the HOME program is willing to finance the eligible project costs associated with the rehabilitation and construction of four one bedroom housing units on the Property, subject to terms and conditions set forth in the Development and Loan Agreement, the HOME Mortgage Note, and this Regulatory Agreement;
and
WHEREAS, the Owner is willing to allow the City to encumber the Property with this
Regulatory Agreement as a way to secure the HOME restrictions on the Property.
NOW, THEREFORE, it is hereby agreed by and between the parties hereto as follows:
1. The Owner represents and warrants to the City as follows:
a. The Property and all activities related to the rehabilitation, and/or leasing
thereof shall be eligible activities under the HOME Program.
b. The Owner shall comply with all the requirements of Title II of the
Cranston-Gonzalez National Affordable Housing Act, the HOME program,
and the regulations appearing at Section 24, Part 92 of the Code of Federal
Regulations (24 CFR 92 et ~g.).
c. The Owner shall comply with such further statutory, regulatory, and
contractual requirement as may be applicable to the receipt and expenditure
of HOME Program funds, as administered by the U.S. Department of Housing
and Urban Development and the City.
d. The Owner’s application for HOME funds is true and correct in all respects.
e. The Owner has obtained adequate financing in the form of a HOME Loan
from the City and other sources for the portion of the Property that will not be
financed by HOME funds.
f. The Owner agrees that the provisions of the HOME Development and Loan
Agreement executed by and between the City of Flint and the Developer, to
fund eligible project costs associated with the rehabilitation and construction
of four (4) one-bedroom housing units on the Property, dated September of
2006 (“Development and Loan Agreement”), shall be incorporated by
reference into this regulatory agreement.
?~ The Owner shall assure that the HOME assisted units comply with the affordability requirements for the HOME Program as set forth in 24 CFR 92.252.
These requirements are as follows:
a. Qualification of HOME Assisted Housing Units As Affordable Housing (24
CFR 92.252). The Owner agrees to comply with HOME affordability require
ments and consequent HOME Program Rents for the Affordability Period, as
defined in 4.a., below, by maintaining the monthly rents to be paid by the
tenants of all four (4) one bedroom HOME-Assisted units at no more than the
lesser of (i) existing Section 8 Fair Market Rents for comparable units in the
area as established by HUD under 24 CFR 888.111, less monthly utility
allowances, or (N) one-twelfth (1/12) of thirty percent (30%) of the adjusted
income of a family whose annual income equals 60% of area median gross
income, as determined by HUD, adjusted for family size. Pursuant to 24 CFR
92.252(i)(2), existing tenants who no longer qualify as low-income families
must pay as rent not less than thirty percent (30%) of the family’s adjusted
monthly income, as recertified annually, but not to exceed, however, the
market rent for comparable, unassisted units in the neighborhood. This
requirement shall be enforceable against any successor and assignee of the
Owner by means of a covenant running with the property. The Owner shall
be required to annually certify to the City that the rents for the HOME assisted
units fall within the requisite limits.
b. Income Limits for HOME Assisted Housing Units (24 CFR 92.216) The
Owner agrees to comply with HOME Tenant Income Limit requirements for
the Affordability Period by restricting occupancy (initial tenants in all HOME
assisted units) in four (4) one-bedroom HOME-assisted units to tenants
whose annual household income does not exceed 60 percent of area median
income, (adjusted for family size), as determined by HUD. In furtherance of
this requirement the Owner shall annually certify the household income of
tenants residing in the HOME assisted units.
c. HOME units designated as “floating” units. Per 24 CFR 92.252(j) the HOMEassisted
units may be designated as floating units. The HOME-assisted units
are to be identified at initial occupancy, per the requirements of 24 CFR
92.504(c)(3)(ii)(A). Floating units may be changed maintain conformity with
the requirements of 24 CFR 92.252 during the period of affordability so that
the total number of housing units meeting the requirements of this section
remains the same; each substituted unit will be comparable in terms of size,
features, and number of bedrooms to the originally designated HOMEassisted
unit. As part of its reporting, the Owner will provide the City with
information regarding unit substitution and filling vacancies so that the project
remains in compliance with HOME rental occupancy requirements.
d. Lease Terms and Tenant Selection (24 CFR 92.253) The Owner shall
assure that its Lease does not contain prohibited lease provisions as set forth
in 24 CFR 92.253 and as defined in the City’s HOME guidelines. The Owner
shall also comply with the terms and conditions of this regulation as
implemented by the City with respect to termination of tenancy, maintenance
of the HOME assisted units and the selection of tenants.
3. In addition to the requirements in Section 2, above, for so long as this Regulatory
Agreement is in effect or the Mortgage Note is outstanding the Owner agrees that:
a. 100% of the Property’s HOME-assisted units must be occupied by
households with incomes at or below 80% of area median gross income,
adjusted for family size. Household income shall be determined pursuant to
regulations to be issued by the Secretary of the Treasury, in a manner
consistent with determinations of lower income families and area median
gross income under Section 8 of the U.S. Housing Act of 1937, as amended
(the “Section 8 Program”); and, if the Section 8 Program is terminated, under
the Section 8 Program regulations as in effect immediately before
termination. Until the Secretary of the Treasury publishes these regulations,
the income of individuals shall be determined in accordance with the Section
8 Program regulations. The CPD Income Eligibility Calculator at:
https://www.onecpd.info/incomecalculator/ may be used to make these
eligibility determinations.
b. Per 24 CFR 92.252, HUD provides the following maximum HOME rent limits.
The maximum HOME rents are the lesser of:
• The fair market rent for existing housing for comparable units in the
area as established by HUD under 24 CFR 888.111; or
• A rent that does not exceed 30 percent of the adjusted income of a
family whose annual income equals 65 percent of the median income
for the area, as determined by HUD, with adjustments for number of
bedrooms in the unit. The HOME rent limits provided by HUD will
include average occupancy per unit and adjusted income assumptions.
Applicable HOME rents are available at https://onecpd.infolresource
librarvlhome-rent-limi SI. Fair Market Rents are established by HUD each
year for the Section 8 Program. For more information about the annual
calculation of Fair Market Rents, see huduser.orq, the website for HUD’s
Office of Policy Development and Research.
c. Subsequent rents during the affordability period. The maximum HOME rent
limits are recalculated on a periodic basis after HUD determines fair market
rents and median incomes. HUD then provides the new maximum HOME
rent limits to participating jurisdictions. Regardless of changes in fair market
rents and in median income over time, the HOME rents for a project are not
required to be lower than the HOME rent limits for the project in effect at the
time of project commitment. The City will provide Owner with information on
updated HOME rent limits so that rents may be adjusted (not to exceed the
maximum HOME rent limits in paragraph 3.b. above). The Owner must
annually provide the City with information on rents and occupancy of HOMEassisted
units to demonstrate compliance with this section. The City will
review rents for compliance and approve or disapprove them every year. Any
increase in rents for HOME-assisted units is subject to the provisions of
outstanding leases, and in any event, the Owner must provide tenants of
those units not less than 30 days prior written notice before implementing any
increase in rents.
d. Property Standards. The Owner agrees to maintain all HOME-assisted units
in a manner consistent with the HOME property standards at 24 CFR 92.251
throughout the affordability period.
4. The Owner agrees that its covenants restricting the use and occupancy of the
Property set forth in the Section 2 are essential to the making of the HOME Loan, and that the
enforcement of these covenants is necessary to preserve the HOME Program benefits.
Therefore, the Owner further agrees as follows:
a. Covenants Running With the Land. It is the intent of the Owner and the City
that the use and occupancy restrictions contained in this Agreement shall be
covenants that run with the land, pursuant to the Act 346 of the Public Acts of
1966, as amended (the “Act”) for a period of fifteen (15) years after project
completion as defined by 24 CFR 92.2 and determined by the City (the
“Affordability Period”), and therefore binding on all the successors and
assigns of the Owner and the City. These covenants shall survive a sale,
transfer, or other disposition of the Property by the Owner, or the repayment
of the Mortgage Note, but shall cease to apply to the Property in the event of
involuntary noncompliance caused by fire, seizure, requisition, foreclosure,
transfer of title by deed in lieu of foreclosure, change in federal law or an
action of a federal agency after the date of this HOME Regulatory
Agreement. The covenants of the Owner, however, shall survive a
foreclosure, transfer of title by deed in lieu of foreclosure or similar event if at
any time during the Period of Affordability the Owner or a related person
thereafter obtains an ownership interest in the Property.
b. Inspections. In order to enable the City to monitor the Owner’s compliance
with these use and occupancy restrictions, the Owner covenants and agrees
that the City and its agents or employees shall be allowed access to the
Property and leasing or business offices during normal business hours to
inspect and audit all books and records pertaining to the Property.
c. Status Reports. The Owner covenants and agrees to complete and send to
the City an annual, or at any greater frequency that may be requested by an
Authorized Officer of the City, status report(s) in form and content acceptable
to the City, which status report(s) shall demonstrate ongoing compliance with
these use and occupancy restrictions, including tenant incomes, rents, lease
requirements and property standards. In addition, during the period of
affordability, the City will examine regularly, and at least annually, the
financial condition of the project to determine the continued financial viability
of the housing, per 24 CFR 92.504(d)(2). Mayor or his designee, the
Economic and Community Development Director or his designee, or the
Corporation counsel or her designee. The term “Authorized Officer of the
City” refers to the foregoing employees of the City when acting within the
scope of their City.
d. Transferees Bound. The Owner covenants and agrees that in the event it
sells or otherwise transfers ownership of the Property, it will enter into such
agreements with the purchaser or transferee as may be prescribed by the
City which have the effect of causing such purchaser or transferee to be
bound by these use and occupancy restrictions, as they may be amended or
supplemented.
e. Necessary Actions. The Owner agrees to evict any tenant or take such other
corrective action as is determined necessary by an Authorized Officer of the
City necessary to comply with the covenants contained in this Agreement.
The City shall also have the right to take any and all action which it deems
appropriate in order to enforce compliance with the covenants of this
Agreement.
f. Annual Certification. The Owner will submit an annual certification
evidencing compliance with the requirements of this Section.
5. The Owner shall maintain and operate the Property so as to provide decent, safe,
and sanitary housing and shall provide all services, maintenance and utilities according to standards as required by the City and in accordance with state and local codes and ordinances.
6. The Property and all plans, offices, equipment, books, contracts, records,
documents, and other papers relating thereto, shall at all times be maintained in reasonable condition for proper audit and shall be subject to examination and inspection at any reasonable time by the City or its authorized agent at the Property site or any other location acceptable to the City. The Owner shall retain copies of all documents relating to the Property for at least fifteen years, all or any of which may be subject to inspection and examination by the City or its authorized agents.
7. The books and records of the operations of the Property shall be kept in
accordance with the policies, General Rules and requirements of the City. Within three (3) business days of the City’s written request, the Owner shall furnish copies of or make available for review by the City or its authorized agents at the Property site or any other location acceptable to the City, all books, records, papers, and documents relating to the Property and the Owner, including all contracts and records of the Owner relating to the Property and income from the Property, that may be required by the City from time to time to assure itself of compliance with its policies, General Rules and requirements.
8. Within 120 days following the end of each calendar year of operation, the City
shall be furnished with a financial statement for the Property audited by an Independent Certified Public Accountant in a form approved by the City. This report shall be certified to by the Owner.
9. The Owner shall furnish occupancy reports and financial reports relating to the
operation of the Property in accordance with a City-approved reporting format, and within established City time-frames. At the request of the City, its agents, employees, or attorneys, the Owner shall promptly answer with specificity all questions upon which information is desired from time to time relative to the income, assets, liabilities, contracts, operation, and condition of the Property, its tenants and status of the Mortgage Note.
10. All tenants shall be required to execute a lease in a form approved by the City.
The Owner shall assure that its lease for all HOME-Assisted Units does not contain any of the “prohibited lease terms” set forth in 24 CFR 92.253. The Owner shall also comply with the terms and conditions of this regulation as implemented by the City with respect to termination of tenancy, maintenance of the HOME-Assisted Units and the selection of tenants.
11. In selecting tenants the Owner shall not discriminate against any tenant or family
because any of its members are children.
12. The Owner agrees that it shall not, without the prior written approval of an
Authorized Officer of the City:
a. Convey, transfer, or encumber any of the Property, or permit the conveyance,
transfer or encumbrance of all or any portion of the Property, except as
provided in the Mortgage Note.
b. Assign, transfer, dispose of, or encumber any personal property of the
Property, including the Receipts, or pay out any funds, except as permitted in
Section 18 above and subparagraph d of this Section.
c. Convey, assign, or transfer the interest of any general partner in the Owner, or
any right to manage or receive Receipts or any other form of income from the
Property.
d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract
from any real or personal property of the Property in excess of $15,000.00.
e. Engage in any other business activity, including the operation of any other
rental housing property, or incur any liability or obligation not in connection
with the Property.
f. Require, as a condition of occupancy or leasing of any unit in the Property,
any consideration or deposit other than the prepayment of the first month’s
rent and a security deposit as allowed under the laws of the State of Michigan.
Any funds collected as a security deposit shall be kept separate and apart
from all other funds of the Property, in an interest bearing trust account with a
bank or other regulated financial institution located within the State of
Michigan, whose deposits are insured by an agency of the United States
Government. The amount of funds in this account shall at all times be equal
to or exceed the aggregate of all security deposits held for current and former
tenants, unless the Owner elects to provide a bond which complies with
Michigan law to guarantee payment of the security deposits. The use of a
tenant’s security deposit shall be governed by the Management Agreement
and Michigan law.
g. Pay any compensation, directly or indirectly, including wages or salaries, or
incur any obligations to any of the Owner’s officers, directors, stockholders,
members, trustees, partners, beneficiaries under a trust, or to any of their
nominees.
h. Enter into any contract or contracts for supervisory or managerial services to
the extent compensation paid under the contract(s) is to be paid from Property
Receipts.
i. Transfer, assign, or pledge any right or interest in, or title to, any funds
deposited by the Owner with the City or reserved by the City for the Owner.
As used in this instrument, the term “City” shall be deemed to include any
persons to whom the Mortgage Note referred to above shall be assigned.
13. The Owner shall not, in the selection of families, in the provision of services, or in any other manner, discriminate against any person on the grounds of race, color, creed, religion, height, weight, sex, age (except for a Property specifically designed for elderly occupants), national origin, handicap, or marital or familial status except as provided by law.
The Owner shall comply with all requirements imposed by Title VIII of the Civil Rights Act of 1968 (as amended by the Fair Housing Amendments Act of 1988), the Americans with Disabilities Act, the Elliott-Larsen Civil Rights Act, and the Michigan Handicappers Civil Rights Act.
14. The Owner shall conduct the marketing of all units and the selection of families in accordance with the City-approved Affirmative Fair Marketing Plan, all regulations or rules relating to fair housing advertising, applicable HOME Program Affirmative Fair Marketing requirements (as to the HOME-Assisted Units), and the applicable minimum set-aside requirements of the Code, including any regulations published pursuant thereto, for very low income persons.
15. The violation of any provision of this Agreement by the Owner, including any
violation of the provisions of the development agreements between the City and the Owner cited in Section 1 .f. above, shall be a default under this Agreement and the Mortgage Note. The City may give written notice of such default to the Owner, by registered or certified mail, addressed to the address stated in this Agreement, or such other address as may subsequently, upon appropriate written notice thereof to the City, be designated by the Owner as its legal business address. If the default is not corrected to the satisfaction of an Authorized Officer of the City within 30 days after the day such notice is mailed or within such further time as an Authorized Officer of the City reasonably determines is necessary to correct the default, without further notice the City may avail itself of any remedy provided in the Mortgage Note or other document executed in connection with the Mortgage Note, or any other remedy it may have at law or in equity in the event of such a default. The City’s remedies shall include the right to apply to any court, State or Federal, for the specific performance of the covenants and agreements contained in this Agreement; for an injunction against any violation of such covenants and agreements; for the appointment of a receiver to take over and operate the Property; or for such other relief as may be appropriate, since the injury to the City arising from any default under this
Agreement would be irreparable and the amount of damage difficult to ascertain. Despite anything in the foregoing to the contrary, the City may take possession of the Property, bring any action necessary to enforce the rights of the Owner growing out of the Property’s operation, and collect the rents and operate the Property in accordance with the terms of this Agreement until such time as the City in its discretion, determines that the Owner is again in a position to operate the Property in accordance with the terms of this Agreement and in compliance with the requirements of the Mortgage Note. The City’s election to pursue any one or more of the above remedies shall not be construed to preclude or be a waiver of the City’s right to pursue any of the other remedies with respect to the default for which such remedy was pursued or with respect to any default prior or subsequent to such remedy.
16. The Owner agrees that it will obtain and keep in force such insurance coverage
as required by the Development and Loan Agreement.
17. Noncompliance with HOME requirements described in this Agreement, failure to
meet HOME regulations, use of funds for something other than the stated purpose, or material breach of the terms and conditions of HOME funding will result in a default of this Agreement.
The City will be allowed to intervene in the Property’s management when a default occurs or when the Property is in danger of defaulting prior to the end of the Affordability Period. The City will notify the Owner of a potential default and provide the Owner an opportunity to takecorrective actions to cure the default.
18. No Amendment or modification of this Agreement, and no waiver by any party
hereto of any representation, or condition of this Agreement shall be valid unless in writing and
signed by all the parties to this Agreement.
19. The invalidity of any clause, part or provision of this Agreement shall not affect
the validity of the remaining portions of this Agreement.
20. This Agreement may not be assigned without the written consent of the City.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.
First Street Lofts. LLC - Owner
By:
Gary Hurand
Its: Manager
STATE OF MICHIGAN)
ss
COUNTY OF GENESEE)
8
On this day of _________, Gary Hurand, Manager of First Street Lofts, LLC
before me personally appeared to me known to be the person(s) described in and who executed the foregoing instrument and acknowledged that he/she/they executed the same as his/her/their free and act deed in the capacity above designated.
Notary Public, _______________________County, Ml
Acting in the County of _______________________
My Commission Expires:
CITY OF FLINT
City
By: / /2
STATE OF MICHIGAN
ss
COUNTY OF GENESEE)
On this _____ day of ___________________, before me personally appeared
Jerry Ambrose to me known to be the person(s) described in and who executed the foregoing instrument and acknowledged that he/she/they executed the same as his/her/their free and act deed in the capacity above designated.
Notary Public, _______________________County, Ml
:
WHEN RECORDED RETURN TO:
Gary Hurand
First Street Lofts, LLC
503 South Saginaw Street, Suite 1500
Flint, Ml 48503
EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
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Tue Jun 02, 2015 5:25 pm |
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untanglingwebs
El Supremo
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http://www.mlive.com/opinion/flint/index.ssf/2015/06/editorial_opra_tax_incentives.html
Flint City Council needs to reconsider tax break for redevelopment
MLive/Flint Journal opinion By MLive/Flint Journal opinion
on June 07, 2015 at 9:00 AM, updated June 07, 2015 at 9:05 AM
FLINT, MI -- There's no shortage of vacant property in Flint, and it stands to reason that the tax incentives created under the state's Obsolete Property Rehabilitation Act would be a useful tool in the city's ongoing battle against blight.
Sadly, in a severely short-sighted vote, the majority of the Flint City Council rejected granting these OPRA tax incentives for Uptown Reinvestment Corp. to redevelop a vacant building.
Uptown is seeking to freeze property taxes for 12 years at the current level for 600 S. Saginaw St., a former Perry drug store that it plans to turn into eight new storefronts with individual entrances for small businesses. The tax breaks would allow the owner to keep rent lower for its business tenants.
We have a hard time understanding why the council voted "no" on the tax incentive for this building. Why do anything to potentially derail the revitalization of an ugly, empty property at a highly visible intersection?
The property owner would continue to pay the current local tax rate -- the same amount the city is receiving now -- until the incentive expires and the taxes go up. And local and state education taxes would actually increase along with the post-renovation value of the building. In other words, it's likely that schools would get more tax revenue if this plan moves forward than if the project doesn't come to fruition.
Right now, the building is sitting empty. Freezing part of the tax rate for 12 years is not asking too much for a developer to invest millions in a project that will bring more jobs to workers who will pay city income taxes and bring customers who will pay more sales taxes.
There aren't developers beating down the door to invest their money in Flint.
As much as downtown Flint has undergone a renaissance in the past decade or so, let's face it: There aren't developers beating down the door to invest their money in Flint.
Here is a group that has the resources and desire to redevelop this vacant building right now, and has a proven track record of success in downtown Flint.
A "no" vote on these incentives is an impediment to progress. There isn't another developer waiting in the wings itching to redevelop this property.
Detractors say not enough has been done to redevelop Flint outside of downtown – but a "no" vote on this particular project doesn't mean it will be relocated elsewhere in the city.
City council should think about what downtown Flint looked like 12 years ago compared to the bustling city center it is today. Then, think about what it could be another 12 years into the future.
We call on the city council to reconsider its ill-advised rejection of these tax incentives, and demonstrate that they support the revitalization of Flint. |
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Mon Jun 08, 2015 6:01 am |
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untanglingwebs
El Supremo
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Terry Bankert
20 hrs · Edited ·
.
These tax breaks are a federal and state problem in the end the City will have little choice but to grant unless the law is changed. Are you listening Kildee. Mlive you can get off your high horse too. What the Flint City Council is negotiating on behalf of all of the Citizens of Flint is pressure for a neighborhood agenda. For too long we have just said yes . Are you listening " Downtown Yes Man Walling". |
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Mon Jun 08, 2015 6:11 am |
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