Item J5
LAND AUTHORITY GOVERNING BOARD
AGENDA ITEM SUMMARY
Meeting Date: May 18, 2005
Division: Land Authority
Bulk Item: Yes No l
Staff Contact Person: Mark Rosch
Agenda Item Wording: Approval of a resolution authorizing the subordination of the Land Authority's
mortgage loan for Meridian West Apartments.
Item Background: The Carlisle Group proposes to refinance its debt for Meridian West Apartments
on Stock Island. More specifically, Carlisle proposes to increase the $3,120,000 first position mortgage
loan held by Neighborhood Lending Partners by up to $680,000. This proposal will require the
approval of the junior lien holders, which include Florida Housing Finance Corporation (FHFC) and the
Land Authority.
The Land Authority holds a $1,500,000 zero-interest, fifty-year mortgage loan in third position on the
property, behind FHFC's $2,000,000 SAIL loan. The proposed resolution will authorize subordination
to up to $680,000 of additional debt, provided FHFC also agrees to subordinate. The attached table
summarizes how the project's debt structure has changed over time.
The increased debt should not pose a significant risk to Carlisle's ability to repay the Land Authority's
loan, since the repayment of all senior debt is due 20 years prior to the Land Authority loan. The
increased debt will allow Carlisle to receive its FHFC-approved developer fees sooner.
Advisory Committee Action: On April 27,2005 the Committee voted 3/1 to approve this item.
Previous Governing Board Action: 3/20102 initial funding resolution for $1.5 M loan approved;
6/19/02 donation of 25 ROGO allocations and 6 nutrient credits to project approved; 6/18/03
disbursement of loan proceeds prior to SAIL loan closing approved; 9/25/03 revised financing schedule
approved; 2/18/04 subordination to additional SAIL loan approved
Contract/Agreement Changes: Increase amount of senior debt by up to $680,000 if FHFC concurs.
Staff Recommendation: Approval.
Total Cost: N/A
Budgeted: Yes _ No
Cost to Land Authority: N/A
Source of Funds: N/A
Approved By: Attorney -L County Land Steward
Executive Director Approval:
N[ , ~~SCh
Documentation: Included: X
To Follow:
Not Required:
Disposition:
Agenda Item
RESOLUTION NO.
A RESOLUTION OF THE MONROE COUNTY
COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING
SUBORDINATION OF THE LAND AUTHORITY'S MORTGAGE
LOAN FOR THE MERIDIAN WEST AFFORDABLE HOUSING
DEVELOPMENT.
WHEREAS, section 380.0666(3), Florida Statutes (FS) and section 9.3-2, Monroe County
Code, empower the Monroe County Comprehensive Plan Land Authority (hereinafter "Land
Authority") to acquire an interest in real property for the purpose of providing affordable housing
to very low, low, or moderate income persons as defined in section 420.0004, FS, where said
acquisitions are consistent with a comprehensive plan adopted pursuant to Chapter 380, FS;
and
WHEREAS, in accordance with Resolutions 01-2002, 04-2003, 09-2003, and 01-2004, the
Land Authority holds a 50-year, zero-interest non-recourse mortgage loan executed by Meridian
West, Ltd. in the amount of $1,500,000 to offset the land cost in providing 102 units of
affordable housing known as Meridian West Apartments on Stock Island to provide rental
housing for persons of very low and low incomes; and
WHEREAS, in accordance with Resolution 01-2004, the debt senior to the Land Authority's
mortgage currently totals $5,120,000 and consists of a $3,120,000 first mortgage and a
$2,000,000 SAIL loan; and;
WHEREAS, Meridian West, Ltd. requests that the Land Authority subordinate its mortgage to
allow the first mortgage to increase by up to $680,000; and
WHEREAS, the Land Authority Advisory Committee considered this request on April 27, 2005
and voted 3/1 to recommend approval; NOW, THEREFORE,
BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY
that the Governing Board Chairman is hereby authorized to execute documents subordinating
the Land Authority's $1,500,000 mortgage to up to $680,000 of additional debt as indicated
below.
Section 1. The Land Authority's mortgage may be subordinated to no more than $5,800,000 of
debt consisting of a first mortgage in an amount not to exceed $3,800,000 in favor of
Neighborhood Lending Partners of South Florida, Inc. and a $2,000,000 SAIL loan in favor
Florida Housing Finance Corporation (FHFC).
Page 1 of 2
Section 2. The authorization granted by this resolution is contingent upon FHFC's approval to
subordinate its SAIL loan to the above refinancing and shall be null and void in the event FHFC
denies the subordination request.
PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a
regular meeting on this day of 2005.
(Seal)
ATTEST:
MONROE COUNTY COMPREHENSIVE
PLAN LAND AUTHORITY
Mark J. Rosch
Executive Director
David P. Rice
Chairman
Approved for Legal Form
Larry R. Erskine
Page 2 of 2
Meridian West Debt Structure Table
Debt at CIOSing~ 1st Amendment 2nd Amendment
Lien Position Lender Resolution 09-200 esolution 01-2004 Requested 4/2005
1 st Position Neighborhood Lending Partners $3,450,00 $3,120,000 up to $3,800,000
2nd Position FHFC SAIL Loan $1,000,000 $2,000,000 $2,000,000
3rd Position Land Authoritv $1,500,000 $1,500,000 $1,500,000
4th Position CDFI Loan $330,000 $330,000 $330,000
5th Position NLP/CDFI Loan $100,000 $100,000 $100,000
6th Position SHIP Loan $75,000 $75,000 $75,000
Total Debt
$6,455,000
$7,125,000
$7,805,000
[~ C RLISLE
-,
C\I<L1SIJ: 1'1<OPFIHY ;'11,\ "',\ld:01J:0:T. I:\e.
C.\I<L1SLI: !)J:\'I:LOI'01F~T l;I<()\ 11'. LU'
C .\RLlSLF Co:'\s'lm '( 'TIO~, LLC
I: \
April 14, 2005
Mark Rosch
Monroe County Land Authority
1200 Truman Avenue
Key West, Florida 33040
Re: Meridian West
Dear Mark,
Attached is our most up-to-date pro fonna for Meridian West. It shows that due to the recent
increase in maximum allowable rents for Monroe County and efficient operating numbers after several
months of operations, we are able to increase our senior debt by up to $680,000. The State is currently
underwriting an increase in our first mortgage amount from the original amount of $3, 120,000 to an
amount up to $3,800,000. I have also attached a copy of the commitment letter from Neighborhood
Lending Partners (our first mortgage provider) for your review.
We are currently getting approvals from the Florida Housing Finance Corporation and each of our
lenders for this new first mortgage amount. I am contacting you to request that the Monroe County Land
Authority Board approve the subordination of its mortgage on Meridian West to up to $680,000 in
additional debt.
When the State originally underwrote this development, we were forced to defer the majority of
our allowable developer fee in order to make this project feasible. An increase to the first mortgage allows
us to realize more of these developer fees. These fees are the lifeblood of our company; they allow us to
pay overhead and they provide the incentive to build more developments like Meridian West in Monroe
County.
Please contact Ken Naylor or me with any
..
Cc: Mayor Dixie Spehar, Monroe County
Ed Swift, Historic Tours of America
John Sorensen, The Carlisle Group
1) Project Information - Meridian West
x
14-Apr-05
August-03
September-04
December-04
March-05
Tax-Exempt Bonds/4% L1HTC
501 C3 Bonds
SAIL Loan
1
o
Apr 14, 2005 1759
I
Cumulative
Months
13
3
3
13
16
19
Sq. Footage
o
84
102
133
o
600
816
1.033
o
2 bedroom
Distribution % Units %SF % Income
VLI 16.67% 1667% 7.82%
LI 83.33% 83.33% 92.18%
MKT 0.00% 0.00% 0.00%
3 bedroom
4 bedroom
14 LI 60% 600 635.63
11 VLI 30% 816 381.38
57 LI 600/0 816 762.75
3 VLI 30% 1,033 440.70
14 LI 60% 1,033 881.40
4,898
Calculated Monthl Rents
Calculated Monthl Rents
Calculated Monthl Rents
KN:
Current Millage Rate of
10.68 * Appraised Value of
$4,750,000
KN: Includes app fees,
tenant damages fees,
and miscellaneous.
/ KN: 68 in-unit wId's at
. $30/month with 100%
penetration, plus $25
PUPY of common area
fees
KN: 800/0 current
penetration @ $12 per
unit per month income.
We expect this to
increase to 850/0.
Current vacancy
(actual and economic)
is less than 20/0.
Financing Detail {A}
2) Sources & Uses Input area - Meridian West - Key West, FI
Perm
FHFC SAILs
CDFI
2
3,800,000
7,390%
360
1
2,000,000
3.42%
o
1.10
1.00%
0.30%
1
330.000 Yrs 1-15
1.00%
o rs 16-30
YrlyPmt
1 % Interest onl
3,300
30 Prine + Int
27.347
Apr 14, 2005 - 17:59
Bank
NLP
30
4) Sources & Uses - Meridian West - Key West, FI Apr 14, 2005 - 17:59
Permanent Phase Construction Phase
S1:>J./lCJtIL Ref. % f>eLUnit % f>eLUnit
Tax-Exempt Bonds 0.00% 0 0.00% 0
Permanent 1 st Mortgage 2398% 37,255 0.00% 0
FHFC SAILs 1262% 19,608 1378% 19,608
CDFI 2.08% 3,235 2.27% 3,235
Construction Loan 0.00% 0 21.50% 30,588
Bridge Loan 0.00% 0 0.00% 0
Interest Income 0.00% 0 0.00% 0
GP Equity 0.00% 0 0.00% 0
NLP/CDFI Balloons in 50 0.63% 980 0.69% 980
KW Land Authority ..--- 1,500.000 9.46% 14,706 10.33% 14,706
Limited Partner Equity 4988% 77,500 50.91% 72.441
SHIP (no debt pmts on loan) 75.000 0.47% 735 0.52% 735
Deferred Develo er Fee 138,549 0.87% 1,358 0.00% 0
Total Sources 15,848,549 100.00% 155,378 100.00% 142,294
Permanent Phase
Uses % Per Unit % Per Unit
Hard Construction Costs 51.48% 79.990 5621% 79,990
GC Profit 3.09% 4,794 337% 4,794
GC General ReqUirements 3.09% 4794 3.37% 4,794
GC Overhead 1.03% 1,598 1.12% 1,598
Accessory Buildings 0.00% 0 0.00% 0
Recreational/Owner Items 419,740 2.65% 4,115 2.89% 4,115
Off-Site Improvements 0.00% 0 0.00% 0
Hard Cost Contingency @: 42% 359,415 2.27% 3,524 248% 3,524
Other 0.00% 0 0.00% 0
Construction Interest Expense 113,374 0.72% 1.112 078% 1,112
Brid e Loan Interest Ex ense 0 0.00% 0 0.00% 0
Permanent Loan Origination Fee 38,800 0.24% 380 027% 380
Permanent Loan Closing Costs 7,000 0.04% 69 0.05% 69
Construction Loan Origination Fee 47,040 0.30% 461 0.32% 461
Construction Loan Closing Costs 0.00% 0 000% 0
Bridge Loan Origination Fee 0.00% 0 0.00% 0
SAIL Loan Commitment Fee 20,000 0.13% 196 0.14% 196
Other Loan Closing Costs 0.06% 89 0.06% 89
Rate Lock 0.00% 0 0.00% 0
Accounting Fees 25,000 0.16% 245 0.17% 245
Application Fees 0.00% 0 0.00% 0
Appraisal 13,500 0.09% 132 0.09% 132
Architect Fee-Design 143.614 0.91% 1,408 0.99% 1,408
Architect Fee-Supervision 13.303 0.08% 130 0.09% 130
Builder's Risk Insurance 0.00% 0 0.00% 0
Building Permit 0.02% 34 0.02% 34
Brokerage Fee 0 0.00% 0 0.00% 0
Credit Underwriting Fee 28.730 0.18% 282 0.20% 282
Engineenng Fee 47,634 0.30% 467 033% 467
Environmental Report 0.12% 185 0.13% 185
FHFC Administrative Fees 0.51% 800 0.56% 800
FHFC Application Fees 0.03% 39 0.03% 39
FHFC Compliance Mon. Fee 0.42% 660 0.46% 660
Impact Fees (Detail) 0.00% 0 0.00% 0
Inspection Fees 73.074 0.46% 716 0.50% 716
Insurance- Property/Liability 16,345 0.10% 160 0.11% 160
Legal Fees- Partnership 88,000 0.56% 863 0.61% 863
Legal Fees- Other 41,007 0.26% 402 0.28% 402
Market Study 11.500 0.07% 113 0.08% 113
Marketing & Advertising 101.373 064% 994 0.70% 994
Operating Deficit Reserve 0.00% 0 0.00% 0
Property Taxes 29,872 0.19% 293 0.21% 293
Rate Lock Fee 69,000 0.44% 676 048% 676
Survey(including as-built) 0.06% 98 0.07% 98
Title Insurance & Recording 0.74% 1,157 0.81% 1,157
Utility Connection Fee 3.53% 5,478 3.85% 5,4 78
Other 0.00% 0 0.00% 0
Contin enc Soft Cost 24.074 0.15% 236 0.17% 236
Sub- Total 11,902,355
Existing Buildings, Owned 0 0.00% 0 0.00% 0
Existing Buildings, To be Acquired 0 0.00% 0 0.00% 0
Other Ac uisltion Costs 0 0.00% 0 0.00% 0
Land, owned 0.00% 0 0.00% 0
Land, To be Acquired 2,220,000 14.01% 21,765 15.30% 21,765
Other Land Costs 243,007 1.53% 2,382 1.67% 2,382
Developer's Admin. & Overhead 4.0% 476,094 3.00% 4,668 1.02% 1,457
Developer's Profit AcquiSition 5.0% 0 0.00% 0 0.00% 0
Develo er's Profit 8.5% 1,007,093 6.35% 9.873 0.00% 0
Total Pro'eet Cost 15,848,549 100.00% 155,378 100.00% 142,294
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Member Banks:
SAC Bank
Bank of
Continental Na!lonal Bank
b1iami
Eastem NaUonal
Nationai B8r1!'~ of
Palm Beacn
Espinto Santo Bank
EurobanK
First Natlunal Bank oj
Miarr"
Fi:"st Southern Bank
B81l1(
international Bank of Miami
MetroBank of Dade County
Bank
Oplirl1Urn Bank
PaCIfic National Balik
Preml81
of Soutn
Bank
1111111
~
~
neighborhood lending Partners
of South florida, Inc.
March 3, 2005
Meridian West, Ltd.
% Mr. Mitchell Rosenstein
2950 S. W. 2ih Avenue, Suite 200
Coconut Grove, FL 33133
Subject:
Meridian West Apartments Permanent Financing
Dear Mr. Rosenstein:
The subject loan was originally approved for an amount not to exceed $3,450,000.00.
However, due to an increase in the maximum allowable rents by Florida Housing
Finance Corporation, you have requested that Neighborhood Lending Partners of
South Florida, Inc. increase the permanent loan by $350,000.00 from $3,450,000.00
to $3,800,000.00. Neighborhood Lending Partners of South Florida, Inc. ("Lender")
is pleased to inform you that your request has been approved.
'7
All original terms and conditions stated in the original commitment letter dated
August 22, 2003 and the executed loan documents still govern the transaction.
Borrower agrees to execute any loan documents that are required by Lender to
increase the loan amount pursuant this letter. This letter only increases the
permanent loan amount as stated above. Please sign in the appropriate space below
on the enclosed duplicate hereof and return the same to us at our address set forth
hereon.
Sincerely,
ers of South Florida, Inc.
By:
Walter Stamper
Vice President
1500 San RemoAvenue Suite 140 Coral Gables, Florida 33146
(305) 666-6153 (305) 666-5317 Fax
www.nlp-inc.com
Meridian West Apartments
Permanent Loan Modification
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ACCEPTED AND AGREED TO THIS~DA Y OF A- R
BORROWER'S SIGNATURE BLOCK
Meridian West, Ltd.
By:
By:
As its:
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March 3, 2005
Page 2
,2005