HomeMy WebLinkAbout1999 10 25 Consent Item B
COMMISSION AGENDA
ITEM B
Consent X
Informational
Pu blic Hearing
Regular
October 25. 1999
Meeting
Mgr.(i)J.J'\ / Dept.
v....u. A-dthorization
REQUEST: The City Manager requests the Commission authorize the City Manager to
advance funds under the Moss Cove Project contract in the amount of $17,100.00
to the Wyman Fields Foundation.
PURPOSE: The purpose of this agenda item is to request the Commission approve the release
of $17,100.00 from contracted project delivery fee funds to the Wyman Fields
Foundation as a repayable loan, for the Moss Cove Project. These funds will
replenish the Foundation's operational funds, which have been expended on
behalf of the Moss Cove Project. The $17,100.00 will be repaid to the City upon
the Moss Cove acquisition loan closing anticipated to be on or before November
30, 1999.
APPLICABLE LAW AND PUBLIC POLICY:
The provisions of 420.9072(1)(a) F.S. which states in part: "In addition to the legislative
findings set forth in 420.6015 F.S., the Legislature finds that affordable housing is most
effectively provided by combining available public and private resources to conserve and
improve existing housing and provide new housing for very-low income persons, low-
income persons, and moderate income persons. The Legislature intends to encourage
partnerships in order to secure the benefits of cooperation by the public and private
sectors and to reduce the cost of housing for the target group by effectively combining all
available resources and cost-saving measures. The Legislature further intends that local
governments achieve this combination of resources by encouraging active partnerships
between government, lenders, developers, and community groups to produce affordable
housing and pride related services."
CONSIDERATIONS:
CDD/October 20,1999/5:09 PM
OCTOBER 25, 1999
CONSENT AGENDA ITEM B
Page 2
· The City executed a contract on June 28, 1999 with the Wyman J~ields Foundation
to provide rehabilitation dollars for the Moss Cove Project.
· The Foundation has proceeded through underwriting to receive approval from
Fannie Mae for the acquisition of 70 units on and around Moss Road. Acquisition
loan closing is anticipated to be November lOtI\ 1999.
· The Foundation entered into "Sale and Purchase" contracts with seven different
owners, with closing dates not more than 60 days.
· Moss Cove acquisition loan closing delays have required additional "good faith"
escrow deposits and other expenditures, in order to keep the current owners under
contract. These funds were not budgeted or anticipated as part of the project costs
and has greatly reduced the Foundations general revenue dollars (cash flow)
otherwise utilized for operational funds.
FUNDING:
City funding of $ 869,071 is proposed In the Bond Issue recommended to the
Commission to be issued this year.
SCHEDULE:
February 1999:
July 1999:
October 14, 1999:
November 10, 1999:
December 1999:
September 2000:
July 2001:
Approve Contracts
Complete Acquisitions of Units
Ground Breaking Ceremony
Closing on 70 units Scheduled
Complete Design and Construction Documents
Complete Rehabilitation of Units
Complete Sale of Units
STAFF RECOMMENDATION:
City Manager recommends that the Commission authorize the release of advance funds
In the amount of$17,100.00 to the Wyman Fields Foundation to be repaid to the City on
or before November 30, 1999.
ATTACHMENTS:
A. Wyman Fields Letter of Request
B. Advance Agreement
C. Original Agreement between City of Winter Springs and Wyman Fields
COMMISSION ACTION:
CDD/October 20, 1999/5:09 PM
October 18, 1999
Ron Mclemore, City Manager
City of Winter Springs
1126 East S.R. 434
Winter Springs, FL 32708
Dear Mr. Mclemore,
The Foundation is requesting a loan in the amount of$17, 100, (the amount of project delivery fees
remaining under the agreement) to replenish unbudgeted operating funds expended on behalf of the
Moss Cove Project. The loan will be repaid to the City upon acquisition loan closing (November 10,
1999) from the distribution offunds due the Foundation.
The Acquisition loan process through Fannie Mae has been quite lengthy and unanticipated. The
"Sale and/or Purchase" contracts between the Foundation and the owners of the 52. units were
executed with 60 day loan closing clauses. Since the acquisition loan has taken so long, two
extensions with the current owners have been negotiated. These extensions have. required larger
"good faith deposits" from the Foundation ~hat were not part of the overall anticipated project
budget. Due to the length of the delay good faith deposits and other expenditures have contributed
to the depletion of our general operating funds.
Fannie Mae is quite sensitive to relocation ancllor displacement of current residents. The acquisition
loan was delayed.up to 45 days until such time as the Foundation, provided assurances to the lender
of our relocation plan. The acquisition loan from Fannie Mae has been in the underwriting process
over 120 days. The length of time spent so far in underwriting was not anticipated.
On June 28, 1999 The City Commission approved and executed an "Agreement Relating to Creation
of Affordable Housing" with the Wyman Fields Foundation. Since that time, the Foundation has
performed various activities towards the acquisition and rehabilitation of 70 units (phase I) on
Rhoden Lane, Kristi Ann Court, and Lori Ann Lane, in Winter Springs. Activities have included;
Acquisition: American Communities Fund a division of Fannie Mae, has completed the underwriting
of the Foundation for a below market 100% acquisition loan in the amount of $7,436,292. The
average price for aU properties in the Moss Road redevelopment area are averaging $155,600 per
quadraplex. '
Phase I Acquisition dollars for 70 units in the amount of$3,050,589.
Closing scheduled for November 10, 1999(phase I consist of 20 units on Rhoden
Ave, 32 units on Kristi Ann Court, and 18 units on Lori Ann Lane.)
Phase II Acquisition dollars for 90 units in the amount of$3,718,146.
Closing scheduled for February 28, 2000
207 Moss Road No~ Suite 105 Winter Springs, Florida 32708 Telepholle(407) 327-0408
Fax (407) 327-0308 Email birle({4mpinet.net.
Rehabilitation: The Foundation let formal construction bids for the rehabilitation activities for Phase
I (52 units) on August 23rd, 1999. The firm. of Trovillion and Daugherty General Contractors were
awarded the contract on September 16th, 1999. All construction plans and specifications are complete
and will be submitted for permitting to the City of Winter Springs on Thursday, October 21 S\ 1999.
Once permits have been issued and the acquisition loan has been closed, rehabilitation will begin.
Anticipated rehabilitation start date is December 1, 1999.
In addition to the activities that relate to acquisition and rehabilitation of the units, staff has provided
housing counseling to most of the current residents in order to begin relocation and the pre-
qualification process of home ownership of the units when completed.
I appreciate your time and effort in this matter, and look forward to a successful long term
partnership with the City as it proceeds in the revitalization effort in and around Moss Road.
Sincerely,
~~~.
Candace A. Birle
CEO
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July 1, 1999
RECEIVED
JUl 07 1999
trt"t' OF WNTERSPRlNGS
. Finance Department
Wyman Fields Foundation, Inc.
125 Coastline Rd, Suite 1400
Sanford, Florida 32771
Job: Project Delivery Fee Pursuant to
Contract for Moss Cove affordable housing
project.
Total Project Delivery Fee'
$87,000
I
80% of Project Delivery Fee Due
$69,900
Total Due
$69,900
Due and payable
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125 Coastline Rd Suite 1400 Sanford, Florida 32771 Telephone (407~3n 0003
, Fax (407) 328-9394 Email arts(G),magicnet.net 321.... D t.f o~
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AGREEMENT RELATING TO
CREATION OF AFFORDABLE HOUSING
RECEIVED
JUl 07 1999
CtTYOf ~NTERSPRINGS
Finance Department
THIS AGREEMENT dated this 28th day of June. 1999 is by and between the City of
Winter Springs, Florida, a municipal corporation, hereinafter called "City" and the
Wyman Fields Foundation hereafter called ""Wyman Fields" and is based on the
following premises:
WHEREAS, the City and Wyman Fields have identified up to 158 units as potentially
needing the acquisition rehabilitation and resale efforts contemplated in this agreement;
and
WHEREAS, the City and Wyman Fields entered into an agreement that contemplated two
(2) major categories of service, namely (1) the Due Diligence Phase wherein certain
architectural, environmental, site, general contractor assessment, and economic feasibility
studies were undertaken; and (2) the implementation of the project, if the Due Diligence
fmdings support moving forward; and
WHEREAS, Phase 1, Due Diligence has been completed and determined the, project
feasible;
THEREFORE, it is the purpose of this agreement to specifically provide for the Phase
Two acquisition, rehabilitation, and resale of the housing unit's phase. -
THE FOLLOWING PROJECT IMPLEMENTATION SERVICES WILL BE
PROVIDED BY WYMAN FIELDS FOUNDATION:
ACQUISITION:
1. Acquisition of 52 units, and common areas; 20 units located on Rhoden Lane, :md 32
units located on Kristi Ann Lane, Winter Springs.
2. Generation of a first lenders mortgage for the ownership of the said buildings and
units held by the Foundation until which time as the units will be sold through
condominium documentation to homeowners.
3. Ownership and maintenance of common areas and any common buildings for a
period of at least twenty years, through the Foundation and a legally formed
Homeowners Association.
REHABILITATION:
4. Inspect eligible housing units to determine deficiencies and prepare work
specifications and architectural plans for permitting purposes, code compliance issues,
and City of Winter Springs Land Development Regulations.
5. Request and accept bids from eligible contractors to complete the work according to
work specifications, and architectural plans. Require that all contractors and
subcontractors cany workmen compensation insurance in accordance with State law
Page 1 of 4
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and public liability insurance in the minimum amount of $500,000.00 per occurreltECEI V e D
6. Execute construction contracts with conb:actors.
7. Under Seminole COWlty'S assistance and direction, provide for the relocation of
eligible tenants during rehabilitation, utilizing funds other than City fUnds.
JUl 07 1993
CITY Of 'MNTERSPRINGS
Finance Department
8. Inspect, and monitor progress and assure the completion of specified work as it
relates to the rehabilitation of the exterior and interior of 52 units.
9. Inspect, and monitor progress and assure the completion of specified work including
but not limited to common areas, parking lots, street scape, landscaping, irrigation,
lighting, and signage of each complex.
SALE OF UNITS:
10. Request, aggressively advertise, receive and process applications from potential home
owners for the purchase of 52 units described in Section I herein, assuring
non-discrimination on the basis of race, origin, nationality and gender.
MISCELLANEOUS PROVISIONS:
11. Prepare and submit to the City by the 15th of each month, monthly status reports.
12. Upon completion, submit to the City, Certification from the project architect that the
project is 100% complete in accordance with the approved plans and specifications
and is in compliance with all local zoning and building codes.
13. Upon completion, submit to the City, Certification that all units have Certificates of
Occupancy.
14. Maintain and make available appropriate records, project files and fmancial records in
accordance with City's requirements. Said records to be maintained/or seven years
from date of executed agreement.
IS. Indemnify and hold City harmless from any and all claims whether in tort or contact,
be solely responsible for the obligations it incurs with private contractors, shaH carry
public liability insurance naming the City as additional insured for claims arising
Wlder this agreement in the minimum aggregate amount of$I,OOO,OOO.OO. per
occurrence.
16. Carry workers compensation insurance on its employees in the minimwn amoWlt
required by State law. No employees of Wyman Fields shall be considered an
employer of City.
17. Provide Construction Bond for the amount of the construction contracts with a surety
authorized to do business in the State of Florida acceptable to the City of Winter
Springs.
Page 2 of 4
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CITY FINANCIAL PARTICIPATION:
Itl:-CI:'''I:-t
JUl 01
Cl1YOF~ 1999
Finan "'tE:R .~l'l_
eeDefJa,;;;::tfGS
The City of Winter Springs will provide to Wyman Fields the availability and
accessibility to loan proceeds in the amount of $869,071 for those activities outlined
above, and agree to provide 10% of the loan proceeds to Wyman Fields as project
delivery fees, rounded to the nearest one dollar ($87,000) in the implementation of all
provisions outlined in this agreement, Project delivery fees and services to include but not
be limited to; assisting home owners, contractors and other entities, participating or
seeking to Participate in this project.
Loan Provisions:
BORROWER (S): The Wyman Fields Foundation is a 501 (c) (3) non profit
organization incorporated in the State of Florida in good standing at the time of
closing of the loan.
KEY PRINCIPALS: The President and Secretary of the Board of Directors (Key
Principals) of the borrowing entity will be required to sign the loan documents.
MAXIMUM LOAN AMOUNT: $782,07 1. This amount is based upon pro
forma estimates of work activities as provided by the Borrower, less the project
delivery fees. City generally intends that such funds are allocated to the overall
project on a per unit basis.
INTEREST RATE: Estimated to be Zero percent as of the date of this Agreement
based upon the BOND rate as of the date hereof.
LOAN TERM: Twenty-four (24) months interest-only construction period (which
may be extended for one six (6) month period at the City's option), followed by
the repayment of any outstanding principal amount not to exceed $782,07 L
MORTGAGE: City reserves the tight to place a second mortgage on each unit
acquired, rehabbed or sold, prior to the sale of said unit to an eligible homeowner.
L Project Delivery fees will be due and payable as follows;
./ 80% within seven (7) days of execution of this agreement.
./ 10% within seven (7) days of Certificate of Occupancy on twenty units
(Rhoden Lane)
./ % within seven (7) days of Certificate of Occupancy on thirty two units
(KristiAnn Lane)
TERMlDELlVERABLEIP A YMENTS TO WYMAN FIELDS:
2. Loan proceeds averaging $18,000 per unit/20 units (including an agreed upon
pro-rata share of common area costs allocated per unit) on Rhoden Lane, in
an amount not to exceed $360,000 based upon actual cost, shall be due and
payable within seven (7) days of an approv.ed draw request as outlined in
Attachment "A".
Page 3 of 4
3. Loan proceeds averaging $18,000 per unit/32 units (including au agreed "I:CI:'''I:I>>
upon pro-rata share of common area costs allocated per unit) on KristiAnn . J U l 0 1 1.
Lane, in an amount not to exceed $576,000 based upon actual cost, shall bCryOF/.14 '999
due and payable within seven (7) days of an approved draw request as FiI'lB11oew:,: SPRING
outlined in Attachment "A". rtnJent S
4. Not withstanding the provisions of the preceding paragraphs 2 and 3, the total
amount due from City at any given time under this agreement shall not
exceed $782,071,00 per Attachment "B". Repayment ofloan proceeds to the
City of Winter Springs will be subject to the approved repayment schedule
outlined in Attachment "B".
5. All tasks shall be completed on or before January 1, 2001.
6. The City shall not be liable to any third party for any fees or costs incurred
under this agreement.
7. Funds payable hereunder from the City of Winter Springs may be withheld
for failure by Wyman Fields to comply with the provisions of this agreement.
WYMAN FIELDS shall, in fulfillment of this Agreement, comply with HUD
regulations regarding lead-based paint, the site-specific environmental clearances and the
rules mandated by Section 104 (d) of the Housing and Community Development Act of
1974, set forth in 24 CPR Part 570.496 (a) and 24 CFR Part 570,606, as amended.
IN WITNESS WHEREOF the parties have set their hands and seals on the date
frrst written above to this three page Agreement.
~A~r[ELDs,rtryNDA TION, INe.
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-Anthony,lierrone, President, Board of Directors
Date )", "''" ~) 1'(<; c;
Date -J" """-- )D. I 'i 7 Y
A TIEST:
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[nterim City Clerk:
Andrea Lorenzo-Luaces
Date June 28, 1999
Date Junp 28, 1999
Page 4 of 4
..:
Attachment "A"
Wyman Fields - City of Winter Springs Agreement
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F;fIAft..~R SP.
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~ Draw requests will be based upon the approved plans prepared by the
architect/engineer as appropriate to work.
~ The architect/engineer shall sign off on draw requests.
~ Draw requests shall be for actual costs incurred for rehabilitation set forth
in this Attachment "A" including the cost of common area improvements
approved in advance by the City, allocated on a per unit basis.
~ City shall pay against draw requests submitted by Wyman Fields
supported by:
a) sign off on each request by the Wyman Fields project director, the
contractor certifying completion of the work or installation of the
building components for which draw request is sought; and, the
architect/engineer as appropriate; and
b) delivery of any warranties, bills of sale, releases of lien for any
applicable building components or construction; and
c) a contractor's affidavit in accordance with Chapter 713, Florida
Statutes, and other applicable law, certifying that all labor, material or
other construction contractor's have been released or a construction
bond for the amount of any such draw; and
d) Review of work by a City representative designated by the City
Manager, and initially to be the City Building Official.
e) City may reject a draw request in writing, to require any of the
foregoing or for additional information relating to compliance of work
with approved plans, contracts or relevant building codes or
development standards.
FROM
PHONE t-lO. :
Oct. 26 1999 12:50AM P2
OCT-25-1'33'3 12:03
CITY OF WIHTER SPRINGS
407 327 4753
P.01/01
CITY 011: WI NTER SPRINGS, FLORIDA
n28 l:!^-'ST sum: ROAD 434
WlrrrER SPRiNGS. FLORIDA ~
ToLllpMl\ft (A(7) ~-'llOO
RmaJd W. ),(d I'ITInno
Cily ~
LETTER AGREEMENT
This letter is to advise you that the Winter Sptings CIty Commission l1as
apprnved your advance utili:zation of $17,100 of funds provided 10 the tMss Cove
HoU9ing project a9 provided in 1110 contract betINoon Wyman Fields BOO the City,
provided tn9t the funds are repaid to the project on or before November 30,
1999.
Agreed this the ~ h d3y of ~ ~ . 1999 by and b<tl.ween 1tle
\Nyman Flekfll FoundBfion and tho City mVVinter Springs. Flork:f8.
c~~
Chief Executive Direc1X>r
Wyman Fields; Foundation
~u~~
ontlld W. Mc1...emore
City Manag8r'
City of Winter Springs, Florida
TOTAL P.01
OCT-26-1999 12:41
96>;
P.02
FROf1
PHONE tn
Dc t. 26 1'39'3 12: 51Af1 P3
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OOINVOICEOO
October 26, 1999
Wyman Fields Foundation, Inc. Job: Advance Loan of Project Delivery Fees
207 N. Moss Rd, Suite 105
Winter Springs, FL 32708
1. Total Project Delivery Fee $87,000
2. Less First Draw $69,900
3. Less Second Draw $17,100
T otaI Due $ 1 7, 1 00
C~W3->&lao
JCT-25-1'399 12:41
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P.03