No preview available
HomeMy WebLinkAboutR19-032 Spring Creek Gypsum, LLLP Partnership with ECHDA Commissioner 5 0-A4-4-A1-44-- moved adoption of the following Resolution: EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY EAGLE COUNTY, STATE OF COLORADO RESOLUTION NO 2019- 031r RESOLUTION AUTHORIZING EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY TO ACT AS A LIMITED PARTNER WITH SPRING CREEK GYPSUM LLLP; AUTHORIZING THE PROVISION OF A SUBORDINATE LOAN TO SPRING CREEK GYPSUM, LLLP; AND AUTHORIZING ANY OF ITS COMMISSIONERS TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE AND DOCUMENT ITS ROLE AS A LIMITED PARTNER AND TO EFFECTUATE AND DOCUMENT THE SUBORDINATE LOAN WHEREAS, Spring Creek Gypsum LLLP (the "Owner")has received a low income housing tax credit allocation("LIHTC") from the Colorado Housing and Finance Authority ("CHFA") for the new construction of a multi-family rental project known as Spring Creek Apartments, which will be targeted to persons of low income living in Eagle County(the "Project"); and WHEREAS, in order to effectuate a real property tax exemption for the Project, the Owner has requested that the Eagle County Housing and Development Authority("ECHDA") join the Owner as a Class A limited partner in a limited partnership formed to construct and own Phase I of the Project, and as a Class A limited partner in a limited partnership formed to construct and own Phase II of the Project; and WHEREAS, Phase I of the Project shall have 150 units with rent and income restrictions targeted to persons of low income, including 142 units designated for occupancy by households at or below 60% or less of Area Median Income ("AMI") as determined and published by the Secretary of Housing and Urban Development, 4 units at 50%AMI, and 4 units at 30%AMI (the "LIHTC levels'). At the expiration of the initial LIHTC 15-year compliance period,the rental restrictions on the 150 Phase I units shall increase from the LIHTC levels to 60%AMI on all 150 units; and WHEREAS, Phase II of the Project shall have 132 units, 66 units of which will have rent and income restrictions targeted to persons of low income and will be designated for occupancy by households at or below 80%AMI, and 66 units of which will have rent restrictions and will be designated for occupancy by households at or below 120%AMI; and WHEREAS, Owner has requested that the ECHDA provide a subordinate loan to the Owner in the amount of$500,000 to assist in the financing of the Project,with a loan term to coincide with the maturity date of the Fannie Mae insured senior permanent loan for the Project (the "Subordinate Loan'); and WHEREAS, at the request of the Owner, Eagle County has assigned to CHFA its Colorado Private Activity Bond Ceiling allocation for multiple years to assist in the financing of the Project; and WHEREAS, numerous documents must be executed by the ECHDA in order to document the role of ECHDA as special limited partner in the limited partnerships formed to own Phase I and Phase II of the Project and to document the Subordinate Loan for the Project. It is therefore important to ensure that any of the County Commissioners have the authority to execute any and all such necessary documents, instruments, papers or forms associated with the limited partnerships and the Subordinate Loan. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY: THAT, ECHDA hereby approves the provision of a loan in the amount of$500,000 to the Owner to assist in the financing of the Project, on the terms set forth in the ECHDA Discussion Term Sheet for the Subordinate Loan, dated May 21, 2019, and scheduled for execution by the ECHDA on May 28, 2019. THAT, the ECHDA hereby authorizes ECHDA to act as a special limited partner with Spring Creek Gypsum LLLP to effectuate a real property tax exemption for the Project on the terms set forth in the Eagle County Housing and Development Authority Outline of Special Limited Partnership Terms, dated May 21, 2019, scheduled for execution by the ECHDA on May 28, 2019. THAT, ECHDA hereby authorizes any of its Commissioners to execute on its behalf any and all necessary documents,instruments,papers or other forms necessary to document the ECHDA's Subordinate Loan to the Owner, and the role of ECHDA as special limited partner in the limited partnerships formed to construct and own Phase I and Phase II of the Project, subject to review and approval by the Eagle County Attorney's Office. Such documents may include, but shall not be limited to, the Subordinate Loan Promissory Note, Loan Agreement, Deed of Trust, Rental and Occupancy Covenant, Subordinate Agreements, Special Limited Partnership Addendum to Limited Partnership Agreement, Right of First Offer Agreement, Memorandum of Right of First Offer Agreement, Guaranty Agreement, as well as any other necessary documents which in the opinion of staff are required or desirable. THAT, the ECHDA finds, determines and declares that this Resolution is necessary for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado. MOVED, READ AND ADOPTED by the Board of Commissioners of the Eagle County Housing and Development Authority, at its meeting held this til1itday of M '-j, 2019. EAGLE COUNTY HOUSING AND o``*/ % DEVELOPMENT AUTHORITY ATTEST: te-ALI 4-41A- 0 ieD COLoglibl' By: ri/Ylc OU.A.,e,A4j Clerk to the Board of e McQueeney County Commissioners 'ri et Ka Ch��, er-Henry Commissioner Matt Scherr Commissioner Commissioner e 1)Vru4- - seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner McQueeney 4-14 Commissioner Chandler-Henry Commissioner Schen- +4-4 This resolution passed by D vote of the Board of Eagle County Housing and Development Authority, State of Colorado.