HomeMy WebLinkAboutECHDA14-017 USDA Rural Development Funding Commitment LetterI OFFICE OF THE JILL H. RYAN BOARD OF COMMISSIONERS SARA J. FISHER 970-328-8605 KATHY CHANDLER-HENRY FAX:970-328-8629 eacileadmin@eaqlecountv.us www.eaglecountv.us EAGLE COUNTY December 16, 2014 Mr. David Carter Rural Development Specialist United States Department of Agriculture 690 Industrial Boulevard Delta,CO 81416 Re: Castle Peak Senior Care Dear Mr. Carter: On February 4, 2013,the Board of Commissioners of the Eagle County Housing and Development Authority ("ECHDA") committed to a$4,355,000 loan to Castle Peak Senior Care LLC. The ECHDA has also committed,through the various project documents,to the contribution of the 3 acre parcel of land upon which the Castle Peak Senior Care Community will be built. We would like to take this opportunity to reiterate our support of this very necessary and important community project. We believe that we need to provide this care to our county residents to make our community whole. ECHDA has been working closely with Augustana Care over the past 4.5 years to make this project a reality, and the funding has come together through commitments from USDA, the community,ECHDA, and Augustana Care. During this time,the construction market has also changed dramatically,the result of which is a higher than expected cost to construct the project. We firmly believe that it will take additional commitments from all funding sources to close the remaining financial gap, which is currently estimated to be approximately$1,500,000. ECHDA is prepared to increase its subordinated debt to the project by$500,000 to$4,855,000 upon receipt of an acceptable guaranteed maximum price contract by Castle Peak Senior Care LLC. Although the project does not yet have a guaranteed maximum price contract,we are hopeful that the value engineering completed by the design team and contractor will allow the contractor to offer a guaranteed maximum price contract that will fit within the project's budget. ECHDA hopes that its land donation and commitment to provide a subordinated loan, along with increased commitments from other project sources, is sufficient to fill any financial gap in the project. However, it understands that until firm pricing is received from the contractor, a project budget cannot be finalized. ECHDA is committed to seeing this project through and continues to plan for a spring 2015 groundbreaking. Sincerely, if4- Ili 4, , 4 Eagle County�u • g and Development Authority Commissioners 7-7 4 Jill H. Ryan Sara J.Fisher Kathyiandler-Henry Chairman Commissioner Commissioner Eagle County Building,500 Broadway,P.O.Box 850, Eagle,Colorado 81631-0850 0,e A 1j- ---c-3--