HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2016-23RESOLUTION NO. FWHFC-2016-23
FORT WORTH HOUSING FINANCE CORPORATION
RESOLUTIONS APPROVING ACTIONS OF THE CORPORATION AS SOLE
MEMBER OF RIVERSIDE SENIOR DEVELOPMENT GP, LLC, THE GENERAL
PARTNER OF RIVERSIDE SENIOR INVESTMENTS, LP, APPROVING ALL
ACTIONS NECESSARY FOR THE FINANCING, DEVELOPMENT AND OPERATION
OF THE SPHINX AT SIERRA VISTA SENIOR VILLAS
WHEREAS, the City Council of the City of Fort Worth ("City") created the Fort Worth
Housing Finance Corporation (the "Corporation") in 1979 pursuant to the Texas Housing
Finance Corporations Act, to facilitate housing initiatives in the City, including but not limited to
issuing tax exempt bonds, developing, rehabilitating, and promoting housing, and assisting low
to moderate income City citizens in acquiring quality, accessible, affordable housing through
lending and construction activities;
WHEREAS, the Board of the Corporation has approved an agreement with Sphinx
Development Corporation ("Sphinx"), a Texas corporation, to develop The Sphinx at Sierra
Vista Senior Villas, an approximately 272-unit multifamily senior housing development to be
located at 2942 S. Riverside Drive (the "project"). Sphinx will apply for 2016 Non -Competitive
(4%) Housing Tax Credits from the Texas Department of Housing and Community Affairs
("TDHCA") as well as multifamily housing revenue bonds from Tarrant County Housing
Finance Corporation (the "Tarrant County HFC") to finance a portion of the costs of the
proj ect;
WHEREAS, the project will include units affordable to seniors age 62 or older making
at or below 60% of area median income;
WHEREAS, the Corporation has agreed to participate in the project by becoming the
sole member of the single purpose entity that will serve as general partner of the partnership that
will develop, own and operate the project, and the Board has also approved various actions
relating to the creation and operation of the general partner and other actions necessary for the
development of the project;
WHEREAS, the Corporation will become the sole member of Riverside Senior
Development GP, LLC, a Texas limited liability company (the "GP"), the general partner of
Riverside Senior Investments, LP, a Texas limited partnership (the "Partnership"), which has
been organized to acquire, construct, develop, improve, operate, control and maintain and own
the project;
WHEREAS, an affiliate of Sphinx will contract to acquire approximately 8.80 acres of
land, more or less (the "Land"), on which the project will be constructed and operated and will
assign said contract to the Corporation;
RESOLUTION NO. FWHFC-2016-23
PAGE 2
WHEREAS, the Partnership desires to enter into a Ground Lease with the Corporation
whereby the Partnership shall have a tenant's leasehold estate in the Land;
WHEREAS, the Partnership desires to enter into various agreements, including a
Development Fee Agreement, for the development of the project with Sphinx, a Sphinx affiliate
and the Corporation;
WHEREAS, Tarrant County HFC passed a resolution approving an application to the
Texas Bond Review Board requesting an allocation for qualified residential rental housing bonds
in the amount of $23,000,000.00 (the "Bonds") for the purpose of obtaining funds to finance the
project;
WHEREAS, in order to provide debt financing for the development, construction, and
operation of the project, the Partnership desires to negotiate the terms of and to enter into, (i)
construction and permanent loans in an amount up to $21,400,000.00 for construction financing
and up to $21,400,000.00 in permanent financing, (ii) a bridge or supplemental loan, if deemed
necessary for the completion of the project, and (iii) any other additional loans necessary to
provide further debt financing for the project (collectively, the "Mortgage Loans");
WHEREAS, the GP desires to admit to the Partnership: (i) Riverside Senior Investments,
LP or an affiliate as Class B Special Limited Partner; (ii) an Investor Limited Partner through the
use of Housing Tax Credits awarded by the TDHCA as an equity funding source for the project;
and (iii) other limited partners as may be necessary to facilitate other funding sources for the
project (collectively, the "Limited Partners"); and the GP desires to amend and restate the
Agreement of Limited Partnership in order to admit the Limited Partners;
WHEREAS, the Board of the Corporation adopts the following resolutions, as the
resolutions of the Corporation acting on behalf of the GP in its own capacity, and in its capacity
as the General Partner of the Partnership:
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
GROUND LEASE
RESOLVED, that the Partnership is authorized to lease the Land from the Corporation;
FURTHER RESOLVED, that the Partnership, as tenant, is authorized to negotiate,
execute and deliver a Ground Lease by which the Land shall be leased by the Corporation as
landlord, to the Partnership for a period of up to 99 years, and a Memorandum of Lease, and
further, to negotiate, execute and deliver all other documentation of every nature whatsoever as
the Corporation, acting on behalf of the GP and the Partnership, may deem advisable, necessary,
desirable, or required for such lease (collectively, the "Lease Documents"); and that the Lease
Documents in each and every respect are approved and authorized;
RESOLUTION NO. FWHFC-2016-23
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DEVELOPMENT AGREEMENTS
RESOLVED, that the Corporation and the Partnership are hereby authorized to enter
into a Development Fee Agreement for the Project with Sphinx or an affiliate of Sphinx and the
Corporation as developer or co -developers;
FURTHER RESOLVED, that the Partnership, as project owner, is authorized to
negotiate, execute and deliver the Development Fee Agreement along with any other
documentation of every nature whatsoever as the Corporation, acting on behalf of the GP and the
Partnership, may deem advisable, necessary, desirable, or required for the development of the
project (collectively, the "Development Documents"); and that the Development Documents in
each and every respect are approved, authorized, ratified and confirmed;
MORTGAGE LOANS
RESOLVED, that the Partnership is hereby authorized to enter into mortgage loans for
construction and permanent debt financing for the project (the "Mortgage Loans");
FURTHER RESOLVED, that the Partnership and the GP, in connection with the
Mortgage Loans and related transactions contemplated thereby, are each authorized to negotiate,
execute and deliver all loan documents including loan agreements, letters of credit, promissory
notes, deeds of trust and security agreements, and any other related affidavits, security
instruments, notes, assignments, agreements, financing statements, documents, instruments,
intercreditor agreements, subordination agreements (if any), indemnities, and all affidavits,
documents, instruments, certifications, consents, and other writings of every nature whatsoever
(collectively, the "Mortgage Loan Documents") as the Corporation, acting on behalf of the GP
and the Partnership, may deem advisable, necessary, desirable, or required for any necessary
financing of the project (i) in the original principal amount of up to $21,400,000.00 in
construction and permanent financing (ii) a bridge or supplemental loan, if deemed necessary for
the development of the project, and (iii) any other additional loans necessary for the development
of the project; and that the Mortgage Loan Documents in each and every respect are approved
and authorized;
PARTNERSHIP AGREEMENT
RESOLVED, that the GP and the Partnership are hereby authorized to admit the Limited
Partners to the Partnership, pursuant to the terms and conditions as set forth in the proposed
Amended and Restated Limited Partnership Agreement for the Partnership;
RESOLUTION NO. FWHFC-2016-23
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FURTHER RESOLVED, that the GP is authorized to negotiate, execute and deliver an
Amended and Restated Limited Partnership Agreement for the Partnership, by which, among
other things, the Limited Partners are admitted into the Partnership and to negotiate, execute and
deliver all other documents, instruments, certificates, ancillary equity agreements, consents,
statements, and various other writings and documentation of every nature whatsoever as the
Corporation, acting on behalf of the GP and the Partnership, may deem advisable, necessary, or
desirable to carry into effect the intent of these resolutions (collectively, the "Equity
Documents"); and that the Equity Documents are hereby approved and authorized;
ALL CLOSING DOCUMENTS AND AUTHORITY
RESOLVED, that the Corporation, acting in its own capacity and in its capacity as the
Sole Member of the GP, the General Partner of the Partnership, in connection with all actions
authorized in these resolutions, and related transactions contemplated thereby, is authorized to
negotiate, approve, execute, and deliver the Lease Documents, the Development Documents, the
Mortgage Loan Documents, the Equity Documents and all such agreements, affidavits, security
instruments, notes, deeds of trust, assignments, financing statements, documents, instruments,
consents, applications, certifications, and other writings of every nature whatsoever as the
Corporation deems necessary to consummate the closing of the transactions contemplated by
these resolutions (collectively, the "Closing Documents"), and that the Closing Documents in
each and every respect are hereby authorized, ratified, and confirmed;
FURTHER RESOLVED, that Fernando Costa, the General Manager of the
Corporation, or Aubrey Thagard, the Assistant General Manager of the Corporation, or their duly
appointed successors, or in the absence of such officer, any other duly elected officer of the
Corporation (each, the "Executing Officer"), are hereby fully authorized to negotiate and
approve the terms of and to execute and deliver the Closing Documents and other documents for
and on behalf of the Corporation, the GP, or the Partnership, as applicable;
FURTHER RESOLVED, that the Executing Officer is hereby authorized and directed
for and on behalf of, and as the act and deed of, the Corporation to take such other action in the
consummation of the transactions herein contemplated and to do any and all other acts and things
necessary or proper in furtherance of the transactions contemplated by these resolutions, as the
Executing Officer shall deem to be necessary or desirable, and all acts heretofore taken by the
Executing Officer to such end are hereby expressly ratified and confirmed as the acts and deeds
of the Corporation;
FURTHER RESOLVED, that all of the actions, documents, correspondences,
recordings, instruments, or other writings that are necessary, advisable, or desirable in order to
carry out the foregoing resolutions, and for the conveyance and leasing of the Land, and the
development and financing of the project, for and on behalf of the Corporation, the GP, or the
Partnership, as applicable, their approval of each to be conclusively evidenced by their execution
thereof, are hereby approved;
RESOLUTION NO. FWHFC-2016-23
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FURTHER RESOLVED, that, to the extent any of the actions authorized by these
resolutions have already been taken by the GP, the Partnership, the Corporation, Fernando Costa
or Aubrey Thagard, such actions are hereby ratified and confirmed as the valid actions of the
Corporation, GP, and Partnership, as applicable, effective as of the date such actions were taken.
These resolutions shall take effect on the date of their adoption.
AND IT IS SO RESOLVED.
ADOPTED September 27, 2016.
FORT W TH HOUSING FINANCE CORPORATION
n
By.
Ronald P. Gonz Ole Assistant Secretary