HomeMy WebLinkAboutContract 41906-A1 (2)Execution Copy
KH 200326.8
RIDER TO
First Amendment to
City Secretary Contract No. 41906
oIlY SECRETARY
HOME LOAN DOCUMENTS CONTRACT Na
A k
THIS RIDER TO HOME LOAN DOCUMENTS (this "Rider") is made as of they - tit'
day of August 2011, by and between THE CITY OF FORT WORTH, TEXAS, a municipal
corporation, organized and validly existing under the laws of the State of Texas (the "City");
PRINCE HALL GARDENS ASSOCIATES, LP, a Texas limited partnership (the
"Borrower"), and ITEX DEVELOPERS, LLC, a Texas limited liability company ("Itex"),
KYOOMARS T. AKBARI and CHRISTOPHER A. AKBARI, individually, (collectively,
with Itex, the "Guarantors").
WITNES SETH:
WHEREAS, in connection with the construction and rehabilitation of a 100-unit
residential rental development known as Prince Hall Gardens Apartments (the "Project"), the
City has made a loan to the Borrower in the original principal amount of $555,000 (the "HOME
Loan"), which HOME Loan is guaranteed by the Guarantors; and
WHEREAS, in connection with the HOME Loan, the Borrower, the City and the
Guarantors entered into the following documents (collectively, the "Loan Documents") all of
which are dated June 23, 2011, except as noted: (a) Promissory Note between the Borrower and
the City (the "Note"); (b) Deed of Trust, Security Agreement -Financing Statement, between the
Borrower and trustees for the benefit of the City, recorded under Instrument No. D21150222 in
the Official Public Records of Tarrant County, Texas; (c) Guaranty Agreement between the
Guarantors and the City; (d) City Secretary Contract No. 41906 between the City and the
Borrower (the "Contract"); and (e) Conditional Commitment dated September 28, 2010; and
WHEREAS, in connection with other financing necessary for the development of the
Project, the parties hereto have agreed to modify certain conditions of the HOME Loan and the
Loan Documents, as set forth herein.
NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
irrevocably and unconditionally promise, covenant, and agree as follows:
1. Definitions: Any capitalized terms used but not defined herein shall have the
meaning set forth in the Loan Documents.
2. Entire Agreement; No Default: The parties hereto represent and warrant
that as of the date -hereof (i) they are the sole parties to the Loan Documents; (ii) the Loan
OFFICIAL RECORD 1
CITY ei;RET,ARY
FTC WORTH, TX 09-07-1 '1 PO4 : 4 8 OUT
1
Documents remain in full force and effect; (iii) there has occurred no default, or any
occurrence which but for the passage of time, would constitute a default under the Loan
Documents; and (iv) the Loan Documents constitute all agreements between the parties
hereto in connection with the HOME Loan.
3. Term of HOME Loan: As a further clarification of the language set forth in
the Loan Documents with respect to the Maturity Date of the HOME Loan, the parties
agree that the Maturity Date of the HOME Loan shall be ninety (90) days after the
Maturity Date of the Senior Debt.
4. Surplus Cash: Notwithstanding anything to the contrary in the Loan
Documents, the term "Surplus Cash' shall mean any cash remaining at the end of each
fiscal year of the Borrower after (i) payment of all sums due or currently required to be
paid under the terms of any mortgage loan ("Senior Debt") senior to the Loan; (ii) all
amounts required to be deposited in the reserve for replacements or any other reserve
required by the holder of the Senior Debt; (iii) all other obligations of the Project other
than the Senior Debt, including obligations set forth in Section 4.02 (i) — (iv) of the
Amended and Restated Agreement of Limited Partnership of the Borrower (the
"Partnership Agreement"), unless funds for payment are set aside or deferment of
payment has been approved the holder of the Senior Debt or is permitted in the
Partnership Agreement; and (iv) all tenant security deposits have been segregated from
the Project's funds.
5. Terms of Payment: On page 2 of the Note the first paragraph under the
heading "Terms of Payment" is hereby deleted in its entirety and the following is inserted
in lieu thereof:
"Interest on the outstanding principal amount of this Note (the "Principal
Amount") is due and payable in annual installments beginning on the
date that the Project occupancy rate has reached ninety percent (90%) for
three (3) consecutive months or in any event, not later than 120 days
after receipt of a Certificate of Occupancy for the Project as issued by
the City s Planning and Development Depaitment and continuing on the
same date on an annual basis until the Maturity Date. On the Maturity
Date, the Principal Amount and accrued, unpaid interest shall be payable
in full. Payments will be applied first to accrued interest and the
remainder to reduction of the Principal Amount. Provided however, the
Principal Amount and interest are only payable from Surplus Cash until
the Maturity Date, at which time, the Principal Amount and any unpaid
interest shall be payable out of any of Borrower's funds. To the extent
not paid from Surplus Cash, interest shall accumulate from year to year
until paid, provided that any such unpaid interest shall not be added to
the Principal Amount and shall not accrue interest. Interest will be
calculated based on a 360 day per year factor applied to the actual days
on which there exists an unpaid principal balance."
KH 200326.8 2
6. Deferred Developer Fee: The Deferred Developer Fee is hereby revised to
$196,821.
7. Flex Subsidy Loan: The Flex Subsidy loan referenced in the Loan
Documents is no longer part of the financing transaction for the Project.
8. Construction Schedule: Exhibit C to the Contract is hereby replaced in its
entirety with Exhibit C attached hereto.
9. Notice to Investor Limited Partner: The parties hereto each agree to
send copies of any and all notices required or sent pursuant in the Loan Documents to
Wachovia Affordable Housing Community Development Corporation (the "Investor
Limited Partner") at the following address. Any such notices shall be sent in the manner
and at the times required in the Loan Documents.
Wachovia Affordable Housing Community Development Corporation
301 South College Street
MAC D1053-170
Charlotte, NC 28288
Attention: Director of Tax Credit Asset Management
With a copy to:
Judy Crosby
Klein Hornig, LLP
145 Tremont Street, Suite 400
Boston, Mass. 02111
10. Right to Cure: The parties hereto agree that the Investor Limited Partner
shall have the right, but not the obligation, to cure any default by or complete any
obligation of the Borrower or the Guarantors under the Loan Documents during the cure
period or completion period provided therein and the parties hereto agree to accept any
such cure or completion tendered by the Investor Limited Partner.
11. Severability If any provision of this Rider is determined to be
unenforceable for any reason, it shall be adjusted rather than voided, if possible, to
achieve the intent of the parties hereto. In any event, all other provisions of this Rider
shall be deemed valid and enforceable to the greatest possible extent.
12. Counterparts. This Rider may be executed in several counterparts, and
all so executed shall constitute one agreement, binding on all the parties hereto. Any
counterpart of this Rider, which has attached to it separate signature pages which together
contain the signatures of all parties or is executed by an attorney -in -fact on behalf of
some or all of the parties, shall for all purposes be deemed a fully executed instrument.
[signatures begin on the following page]
KH 200326.8 3
IN WITNESS WHEREOF, the parties hereto have caused this Rider to be duly executed
as of the day and year first written above.
ATTEST:
THE CITY:
THE CITY OF FORT WORTH,
corporation
,Atr:t*C01 sits' ir-nis4t
n- * 0000o00,. 4,e4 A
uootb Yo*
4 Y
a cc:\ By:
A"""° o ,` R o Nan
QcWberj,1O , 201 e' ¥d Title: Assistant City Manager
Q4yr
°°t (Q0 o .
C.;,
APPROVED AS TO FORM AND LEGALITY:
y
M&C: C-24517
City Secret
Date:
Assistant City Attorney
WITNESS:
BORROWER:
a municipal
PRINCE HALL GARDENS
ASSOCIATES, LP, a Texas limited
partnership
By: Prince Hall Gardens GP, LLC,
a Texas limited liability company, its
General Partner
By: Nautical Affordable Housing, Inc.
a Texas non-profit corporation, its Sole
member
By:
Name: Donald R. Ball ete ar
Title: Executive Director
Or:
CITY SECRETARY
Ft WORTH, TX
•t1 Zr'.:,.
.J 1..--3
•
KH 200326.7 4
WITNESS:
KH 2O0326.8
GUARANTORS:
ITEX DEVELOPERS, LLC, a Texas
liability company
By: The ITEX Group, LLC, a Texas
liability compa y, i . o le member
By:
K. T. Akbari
Member and Manger
Kyoomars . `Pik ari, individually
Christopher A.'Akbari, individually
limited
limited
OFFICIAL RECORD
CITY SECRETARY
FT, WORTH, TX
5
Exhibit C
Construction Schedule
To be provided after closing subject to approval by the City of Fort Worth in its sole
discretion.
KH 200326.8 6
JD
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Task Name
!Prince Hall Gardens
i
Prince Hall Gardens
Phase 1
Abatement
9 Buildings / Clubhouse
Demo
Complete demo of clubhouse
Demo 9 Buildings
Demo sideways / curbs / paving
Remove underground utilites
Earthwork
Build retaining wall
Fill area to meet flood zone req
Prepare pads for buildings
Rebuild Phase 1 - Buildings - 32 units and Clubhouse
Form and pour new slabs
Start Framing
Install new doors / windows/ siding
Roofing
Install new plumbing supply & drain lines
Install new electrical wiring, coaxisal cable, phone data
Install HVAC units
Insulate
Install 5/8" sheetrock / tile backer- tape, float, texture
Install int doors / trim
Paint interior / exterior
Install all tile (bath/floor)
Install vinyl flooring
install appliances
Install landscaping
Get CO & move in tenant
Phase 2
Abatement
Project: Prince Hall Gardens Schedul€
Date: Mon 8/1/11
Task
Split
Progress
Milestone
Summary
1
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
•
Page 1
Duration
267 days
112 days
10 days
10 days
10 days
5 days
10 days
10 days
10 days
35 days
25 days
25 days
10 days
57 days
5 days
10 days
10 days
10 days
5 days
5 days
4 days
2 days
10 days
4 days
5 days
4 days
4 days
1 day
3 days
2 days
Start
Mon 8/8/11
Mon 8/8/11
Mon 8/8/11
Mon 8/8/11
Mon 8/22/11
Mon 8/22/11
Mon 8/22/11
Mon 8/22/11
Mon 8/22/11
Mon 9/5/11
Mon 9/5/11
Mon 9/5/11
Mon 10/10/11
Mon 10/24/11
Mon 10/24/11
Mon 10/31/11
Mon 10/31/11
Mon 10/31/11
Mon 11/14/11
Mon 11/21/11
Mon 11/28/11
Fri 12/2/11
Tue 12/6/11
Tue 12/20/11
Mon 12/26/11
Mon 1/2/12
Mon 1/2/12
Fri 1/6/12
Mon 12/26/11
Mon 1/9/12
83 days
8 days
Project Summary
External Tasks
External Milestone
Deadline
Wed 1/11/12
Wed 1/11/12
Finish
Tue 8/14/12
Tue 1/10/12
Fri 8/19/11
Fri 8/19/11
Fri 9/2/11
Fri 8/26/11
Fri 9/2/11
Fri 9/2/11
Fri 9/2/11
Fri 10/21/11
Fri 10/7/11
Fri 10/7/11
Fri 10/21/11
Tue 1/10/12
Fri 10/28/11
Fri 11/11/11
Fri 11/11/11
Fri 11/11/11
Fri 11/18/11
Fri 11/25/11
Thu 12/1/11
Mon 12/5/11
Mon 12/19/11
Fri 12/23/11
Fri 12/30/11
Thu 1/5/12
Thu 1/5/12
Fri 1/6/12
Wed 12/28/11
Tue 1/10/12
v
Fri 5/4/12
Fri 1/20/12
ID
42
43
44
45
46
47
48
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ge
EC
82 H
Task Name
32 Units
Prince Hall Gardens
Demo
Demo interiors
Remove all exsiting gas lines
Remove all existing water & sewer line
Remove all existing electrical wiring/ phone/ data
Rebuild Phase 2 n Buildings
Install new stud walls per plan
Install new doors / windows/ siding
Roofing
Install new doors / windows/ siding
Install new plumbing supply & drain lines
Install new electrical wiring, coaxisal cable, phone data
Install HVAC units
Insulate
Install 5/8" sheetrock / tile backer- tape, float, texture
Install int doors / trim
Paint interior / exterior
Install all tile (bath/floor)
Install vinyl flooring
install appliances
Install landscaping
Get CO & move in tenant
Phase 3
Abatement
36 Units
Demo
Demo interiors
Remove all exsiting gas lines
Remove all existing water & sewer line
Remove all existing electrical wiring/ phone/ data
Rebuild Phase 3 - Buildings
Install new stud walls per plan
Install new doors / windows/ siding
Project: Prince Hall Gardens SchedulE
Date: Mon 8/1/11
Task
S plit
P rogress
Milestone
S ummary
1
1
111111111111111111111111111111111111111
•
111r11•11•11M.
Page 2
1
Duration
8 days
5 days
5 days
5 days
5 days
5 days
70 days
6 days
6 days
6 days
6 days
7 days
7 days
4 days
2 days
6 days
3 days
7 days
6 days
6 days
1 day
2 days
2 days
72 days
8 days l
8 days
5 days
5 days
5 days
5 days
5 days
59 days
7 days
7 days 1
Project Summary
External Tasks
External Milestone
Deadline
Start
Wed 1 /11 /12
Mon 1/23/12
Mon 1/23/12
Mon 1/23/12
Mon 1/23/12
Mon 1/23/12
Mon 1/30/12
Mon 1/30/12
Mon 1/30/12
Mon 1/30/12
Mon 1/30/12
Wed 3/14/12
Mon 3/19/12
Mon 3/19/12
Wed 3/28/12
Fri 3/30/12
Mon 4/9/12
Thu 4/12/12
Mon 4/23/12
Mon 4/23/12
Tue 5/1/12
Tue 5/1/12
Thu 5/3/12
Mon 5/7/12
Mon 5/7/12
Mon 5/7/12
Thu 5/17/12
Thu 5/17/12
Thu 5/17/12
Thu 5/17/12
Thu 5/17/12
Thu 5/24/12
Thu 5/24/12
Thu 5/24/12
Finish
Fri 1/20/12
Fri 1/27/12
Fri 1/27/12
Fri 1/27/12
Fri 1/27/12
Fri 1/27/12
Fri 5/4/12
Mon 2/6/12
Mon 2/6/12
Mon 2/6/12
Mon 2/6/12
Thu 3/22/12
Tue 3/27/12
Thu 3/22/12
Thu 3/29/12
Fri 4/6/12
Wed 4/11/12
Fri 4/20/12
Mon 4/30/12
Mon 4/30/12
Tue 5/1/12
Wed 5/2/12
Fri 5/4/12
Tue 8/14/12
Wed 5/16/12
Wed 5/16/12
Wed 5/23/12
Wed 5/23/12
Wed 5/23/12
Wed 5/23/12
Wed 5/23/12
Tue 8/14/12
Fri 6/1/12
Fri 6/1/12
ID
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Task Name
'Prince Hall Gardens
Roofing
Install new plumbing supply & drain lines
Install new electrical wiring, coaxisal cable, phone data
Install HVAC units
Insulate
Install 5/8" sheetrock / tile backer- tape, float, texture
Install int doors / trim
Paint interior / exterior
Install all tile (bath/floor)
Install vinyl flooring
install appliances
Install landscaping
Get CO & move in tenant
Project: Prince Hall Gardens Schedule
Date: Mon 8/1/11
Task
Split
Progress
Milestone
Summary
1
1
IIIIIIIIIII111I111111111IIIIIIII1111111
•
.1•111.1
Page 3
Duration
7 days
8 days
8 days
4 days
2 days
6 days
4 days
6 days
6 days
6 days
2 days
2 days
2 days
Project Summary
External Tasks
External Milestone
Deadline
Start
Thu 5/24/12
Mon 6/4/12
Mon 7/2/12
Mon 7/2/12
Fri 7/6/12
Tue 7/10/12
Wed 7/18/12
Tue 7/24/12
Wed 8/1/12
Wed 8/1/12
Thu 8/9/12
Thu 8/9/12
Mon 8/13/12
U
Finish
Fri 6/1/12
Wed 6/13/12
Wed 7/11/12
Thu 7/5/12
Mon 7/9/12
Tue 7/17/12
Mon 7/23/12
Tue 7/31/12
Wed 8/8/12
Wed 8/8/12
Fri 8/10/12
Fri 8/10/12
Tue 8/14/12
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/5/2010
111 1111 !HMI I I II I hill II III II !id!! III I I II II. hill! II hill! III !HIM!! II Mill I III I Ill! I II I II I I II II
DATE: Tuesday, October 05, 2010 REFERENCE NO.: C-24517
LOG NAME: 17PRINCEHALLGARDENSAPTS
SUBJECT:
Authorize a Change in Use and Expenditure of $555,000.00 of HOME Investment Partnerships Program
Grant Funds to Prince Hall Gardens Associates, LP, in the Form of a Subordinate Interim Loan for the
Acquisition and Rehabilitation of the Prince Hall Gardens Apartments Located at 1800 East Robert Street,
Authorize the Execution of Conditional Commitment and Contract, and Authorize a Substantial Amendment
to the City's 1994-1995, 1995-1996, 1997-1998, 1999-2000, 2000-2001, 2002-2003 2003-2004,
2005-2006 and 2006-2007 Action Plans (COUNCIL DISTRICT 8)
RECOMMENDATION:
1995-
20Q
Ho
ex
prior year,
to PrziceH
nuerii `..
Gai
conditi:
for two
fundzng% among 0
regiureuie itSp
5. Authmt
contract
protect
the tannic
prided
a.su
997 : ,199% t , 2ti l Oti li l
}5-2 6ri Ut3 .A t i tt ;
s atici etditi Q 5
^i? 1�+lariger, cais`desin�o axe
PzncHal Gams sT.
Year teatg
Auttioxrz the Katy Manager nr d sr n , ito ;extend r retie
the coi irtional co#rrnirtmenk-Qr f ► con c loa upA; piie era€
Pru`tc $I UI i thS Associates LP r t st e �%aattii� and sii3
extenstou is nlecessary fe
ipleti
the pr+
7. Audiaori a the City M*nager, :or his deesignee
conditional coin itn ens ar tit contract if Aecess;
projeet goals p
dtma is
the project -an to compliance tv1t City ptshc
laws and ,sgulatton 'gave r ing the 'use of fed
DISCUSSION.
subov
Pruice
Joe
apt
thrbt
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rehab
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re
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fo
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iv.
ci
ory Co xlplettort f tits vrrcituriuntat rev
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ii Ai:
1v 'Re+
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$s*S €I0€ .oO
funds frc i
2U10 =201
and very low income citizens -by p ovidhiig tree
housing A: public calomept per od ou the change 'hi-
HOME fluids was:field .iron, September- ; 2010-to Octolei
Any comp er is ar*::ma intaitied b the Httisung sail loon
Developttetenc,p4p ce,withfed t tt re ula
piojeci
FISCAL INFORMATION:
The Financial:l arragem- --
are avaiiable.:in the'curren.c
Gram Fund
FUND CENTERS:
TO Fund/Account/Centera
GR76
GR76
GR76
GR76
GR76
GR76
GR76
GR76
GR76
GR76
GR76
539120
539120
539120
539120
539120
539120
539120
539120
539120
539120
539120
005206103XXX
005206104XXX
005206113XXX
005206128XXX
005206133XXX
005206772XXX
005206846XXX
005206846XXX
005206006XXX
005206006XXX
005206141XXX
bzdable
ese
FROM Fund/A ccount/Centers,
$865.68 GR76 539120
$254.707.81 GR76 539120
$94.634.00 GR76 539120
$350.00 GR76 539120
$113.588.02 GR76 539120
$35.569.00 GR76 539120
$826.53 GR76 539120
$6.510.45 GR76 539120
$314.92 GR76 539120
$33.393.05 GR76 539120
$14.240.54 GR76 539120
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
005206103420
005206104510
005206113600
005206128110
00520613307Q
005206772100
005206846110
005206846120
005206006090
005206006990
005206141100
Thomas Higgins (6192)
Jay Chapa (5804)
Cynthia Garcia (8187)
Fabiola Y. Suarez (6811)
1. Available Funds 17PRINCEHALLGARDENSAPTS.doc
2. Available Funds-206006
$865.68
$254.707.81
$94.634.00
$350.00
$113.588.02
$35.569.00
$826.5'1
$6.510.45
$31492
$33.393.05
$14 240 54