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Item L3 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: June 18, 2003 Bulk Item: Yes No X Department: Land Authority Agenda Item Wording: Approval of a resolution increasing and subordinating the mortgage loan for the Poinciana Housing Complex. Item Background: Poinciana Housing is 144-unit apartment complex in Key West owned by the US Navy. The City of Key West has entered into a contract to purchase the property from the Navy for $15,100,000. The Land Authority has agreed to assist in the acquisition by providing the City a $1,510,000 zero-interest 30-year mortgage loan. The City is submitting an application for a US Department of Housing and Urban Development Section 108 Loan Guarantee to finance the balance of the purchase price. On May 21, 2003 the City adopted a resolution requesting the Land Authority to increase its mortgage commitment by $700,000 to assist in meeting the requirements for the Section 108 Loan Guarantee. Advisory Committee Action: On May 29, 2003 the Advisory Committee voted 3/0 to approve the proposed resolution. Previous Governing Board Action: On February 3, 2003 the Board approved Resolution 01-2003 authorizing a $1,510,000 zero-interest 30-year mortgage loan. Contract/Agreement Changes: The proposed resolution 1) increases the amount of the mortgage loan by $700,000 from $1,510,000 to $2,210,000 and 2) authorizes subordination of the loan to second place in accordance with the Section 108 Loan Guarantee program. Staff Recommendation: Approval. Total Cost: $ 2,210,000 Budgeted: Yes ~ No Cost to land Authority: $ 2,210,000 Source of Funds: Land Authority (Tourist Impact Tax collected in Key West) Approved By: Attorney ~ County Land Steward Executive Director Approval: ~ .~~Ch Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item LA #3 RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY INCREASING AND SUBORDINATING THE MORTGAGE LOAN FOR THE POINCIANA HOUSING COMPLEX. 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, the City of Key West has entered into a contract with the United States of America, acting by and through the Department of the Navy, to purchase 21.61 acres of the Poinciana Housing Complex for $15,100,000, said property being developed with 144 residential units, having the tax folio number 64740-000300, and being more particularly described in Exhibit A (hereinafter "subject property"); and WHEREAS, Resolution 02-165 of the City of Key West nominates the subject property for acquisition by the Land Authority as an affordable housing site; and WHEREAS, to assist in the acquisition of the subject property, Land Authority Resolution 01- 2003 and its accompanying Interlocal Agreement authorizes a mortgage loan in the amount of $1,510,000 to be executed by the City of Key West or its assigns; and WHEREAS, Resolution 03-172 of the City of Key West requests the Land Authority to increase its mortgage loan commitment by $700,000 to support the City's application for a US Department of Housing and Urban Development Section 108 Loan Guarantee to provide the balance of the financing necessary to purchase the subject property; and WHEREAS, on May 29, 2003 the Land Authority Advisory Committee voted 3/0 to recommend approval of the City's request; and WHEREAS, the Governing Board wishes to approve the Advisory Committee's recommendations; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. The Land Authority hereby agrees to increase the amount of the 30-year, zero- interest mortgage loan authorized by Land Authority Resolution 01-2003 by $700,000, from $1,510,000 to $2,210,000. Section 2. The Land Authority hereby agrees to subordinate said mortgage loan to second place behind the primary lender. Section 3. All other conditions and requirements of Land Authority Resolution 01-2003 and its accompanying Interlocal Agreement shall remain in force and shall apply to the $700,000 increase in the mortgage loan amount. Page 1 of 2 PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 2003. (Seal) ATTEST: Mark J. Rosch Executive Director Approved for Legal Sufficiency Larry R. Erskine MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Murray E. Nelson Chairman Page 2 of 2 EXHIBIT A LEGAL DESCRIPTION, Miscellaneous Housing Area: A TRACT of land lying on the Island of Key West, Monroe County, Florida and being known as a portion of Lots 1 thru 5, Lots 6 thru 12, Block 17, and Lots I thru 8, a portion of Lots 9 thru 12, Block 18 and land lying North of said Blocks and being more particularly described as follows: COMMENCE at the intersection of the Northerly Right-of-Way Line of Duck Avenue and the extension of the Easterly Right-of-Way Line of 16th Street, said point also being the Southwest corner of Lot 12, Block 19 of the "KEY WEST" FOUNDATION COMPANY'S Plat No.#2; thence N.70056'00"E., and along the said Northerly Right-of-Way Line of Duck Avenue a distance 660.00 feet to the Southwest corner of said Lot 12, Block 18; thence N.19004'00" W., and along the Westerly line of said Lot 12, Block 18 a distance of 135. 00 feet; thence S.70056'OO" W., a distance of 16.98 feet to the Point of Beginning; thence S.70056'OO"W., a distance of 93.02 feet; thence N.19004'OOIllW., a distance of 129.38 feet; thence S.86005'47"W., a distance of 29.11 feet; thence N.19037'19"W., a distance of 344.10 feet; thence N.72047'35"E., a distance of 188.81 feet; thence N.40051'10"E., a distance of 208.64 feet; thence N. 65013'55"E., a distance of 105.78 feet; thence N.17037'03"W., a distance of 57.73 feet; thence N.70056'31"E., and along the Northerly Boundary of Poinciana Housing a distance of 925.97 feet to the Westerly Right-of-Way Line of 19th Street; thence S.1 g004'00"E., and along the said Westerly Right-of-Way Line of 19th Street a distance of 533.99 feet; thence S.70056'00"W., a distance of 172.38 feet; thence S.18044'29"E., a distance of 74.73 feet; thence S.37053'13"W., a distance of 78.40 feet; thence S.19004'OO"E., a distance of 131.14 feet to the Northerly Right-of-Way of Duck Avenue; thence S.70056'OO'W., and along the said Northerly Right of-Way Line of Duck Avenue a distance of 1,021.99 feet; thence N.19004'00"W., and along the said Westerly Line of Lot 12, Block 18 a distance of 98.16 feet; thence N.70056'00"E., a distance of 153.38 feet; thence N.19004'00"W., a distance of 84.40 feet; thence N.87020'47"W., a distance of 114.08 feet; thence S.02039'13"W., a distance of 6.82 feet; thence N.87020'47"W., a distance of 36.33 feet to a point on a curve to the left, having: a radius of 19.88 feet, a central angle of 80032'18", a chord bearing of S.40014'27"W. and a chord length of 25.70 feet; thence along the arc of said curve, an arc length of 27.94 feet to a point on a curve to the left, having: a radius of 155.85 feet, a central angle of 15052'21 ", a chord bearing of S.1 0049'OO"E. and a chord length of 43.04 feet; thence along the arc of said curve, an arc length of 43.18 feet to the end of said curve; thence S.19018'04"E., a distance of 41.18 feet to the Point of Beginning. Parcel contains 941,316 square feet or 21.61 acres, more or less. RESOLUTION NO. 01-2003 A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING PARTICIPATION IN THE PURCHASE OF THE POINCIANA HOUSING COMPLEX TO PROVIDE AFFORDABLE HOUSING. 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, the United States of America, acting by and through the Department of the Navy, currently owns 21.61 acres of the Poinciana Housing Complex, said property being developed with 144 residential units, having the tax folio number 64740-000300, and being more particularly described in Exhibit A (hereinafter "subject property"); and WHEREAS, the Resolution 02-165 of the City of Key West nominates the subject property for acquisition as affordable housing; and WHEREAS, on January 27, 2003 the Land Authority Advisory Committee voted 3/0 to recommend approval of the Land Authority's participation in the transaction via the proposed promissory note and interlocal agreement; and WHEREAS, the Governing Board wishes to approve the Advisory Committee's recommendations; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. The subject property identified in Exhibit A (Poinciana Housing Complex) is selected for acquisition. Section 2. The Chairman is authorized to execute on behalf of the Land Authority the attached promissory note (Exhibit B) and interlocal agreement (Exhibit C). Page 1 of 2 PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a ,spec(SJ' meeting on this 3rd ......... - :r '( ':lii'l4~ ;", " \ ,I ,\ " . . I ,f, -, " /\(~~~!) . j \ \-'.: I, : ! \ \, 1 i '.'....:' :.......- . 'ATTES,: day of ~.\ \L Mark J. RQh Executive Director Approved for Legal Sufficiency Larry R. Erskine February 2003. MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY .,~~/~ Murray" elson Chairman Page 2 of 2 EXHIBIT A LEGAL DESCRIPTION, Miscellaneous Housing Area: A TRACT of land lying on the Island of Key West, Monroe County, Florida and being known as a portion of Lots 1 thru 5, Lots 6 thru 12, Block 17, and Lots I thru 8, a portion of Lots 9 thru 12, Block 18 and land lying North of said Blocks and being more particularly described as follows: COMMENCE at the intersection of the Northerly Right-of-Way Line of Duck Avenue and the extension of the Easterly Right-of-Way Line of 16th Street, said point also being the Southwest corner of Lot 12, Block 19 of the "KEY WEST" FOUNDATION COMPANY'S Plat No.#2; thence N.70056'OO"E., and along the said Northerly Right-of-Way Line of Duck Avenue a distance 660,00 feet to the Southwest corner of said Lot 12, Block 18; thence N.19004'OO" W., and along the Westerly line of said Lot 12, Block 18 a distance of 135. 00 feet; thence S.70056'OO" W., a distance of 16.98 feet to the Point of Beginning; thence S.70056'OO"W., a distance of 93.02 feet; thence N.19004'OO'''W., a distance of 129.38 feet; thence S.86005'47"W., a distance of 29.11 feet; thence N.19037'19"W., a distance of 344.10 feet; thence N.72047'35"E., a distance of 188.81 feet; thence N.40051'10"E., a distance of 208.64 feet; thence N. 65013'55"E., a distance of 1 05.78 feet; thence N.17037'03"W., a distance of 57.73 feet; thence N. 70056'31 "E., and along the Northerly Boundary of Poinciana Housing a distance of 925.97 feet to the Westerly Right-of-Way Line of 19th Street; thence S.19004'OO"E., and along the said Westerly Right-of-Way Line of 19th Street a distance of 533.99 feet; thence S.70056'00"W., a distance of 172.38 feet; thence S.18044'29"E., a distance of 74.73 feet; thence S.37053'13"W., a distance of 78.40 feet; thence S.19004'OO"E., a distance of 131.14 feet to the Northerly Right-of-Way of Duck Avenue; thence S.70056'OO"W., and along the said Northerly Right of-Way Line of Duck Avenue a distance of 1 ,021.99 feet; thence N.19004'OO"W., and along the said Westerly Line of Lot 12, Block 18 a distance of 98.16 feet; thence N. 70056'00"E., a distance of 153.38 feet; thence N.19004'00"W., a distance of 84.40 feet; thence N.87020'47"W., a distance of 114.08 feet; thence S.02039'13"W., a distance of 6.82 feet; thence N.87020'47'W., a distance of 36.33 feet to a point on a curve to the left, having: a radius of 19.88 feet, a central angle of 80032'18", a chord bearing of S.40014'27"W. and a chord length of 25.70 feet; thence along the arc of said curve, an arc length of 27.94 feet to a point on a curve to the left, having: a radius of 155.85 feet, a central angle of 15052'21", a chord bearing of S.10049'OO"E. and a chord length of 43.04 feet; thence along the arc of said curve, an arc length of 43.18 feet to the end of said curve; thence S.19018'04"E., a distance of 41.18 feet to the Point of Beginning. Parcel contains 941,316 square feet or 21.61 acres, more or less. EXHIBIT B PROMISSORY NOTE $1,510,000,00 February 3 ,2003 FOR VALUE RECEIVED, the MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, a land authority pursuant to section 380.0661, Florida Statutes, (hereafter "Land Authority") hereby promises to pay to the UNITED STATES OF AMERICA,acting by and through the Department of the Navy (hereinafter "Seller") at the Office of Real Estate Sales, General Services Administration, Atlanta, Georgia or at such other place as Seller may from time to time designate in writing, the principal sum not to exceed ONE MILLION FIVE HUNDRED TEN THOUSAND DOLLARS ($1 ,S1 0,000.00) in lawful money of the United States of America. This Note is made and delivered pursuant to and in implementation of the Offer to Purchase Real Estate and Acceptance ("Offer") made by the Naval Properties Local Redevelopment Authority of the City of Key West (as the "Purchaser"), to Seller, which Offer was executed on behalf of Purchaser on , 2003, for the property known as Poinciana Housing in Key West, Florida (as more particularly described in the Offer). This Note represents the earnest money deposit to be delivered to Seller under Section 2 of the Offer. The principal balance of this Note shall be due and payable in full, without dema1d by Seller, upon close of escrow for conveyance to the Purchaser of the property described in the Offer, as part of the purchase price for the property. In the event of default by Purchaser under the terms of the Offer and Purchaser does not take title to the property, then the outstanding principal amount of this Note shall be due and payable within five (S) days after receipt by Land Authority of written demand from Seller. This is a nonrecourse Note whereby no Land Authority official or employee ha; any personal liability for repayment of the sums evidenced hereby. This Note is not negotiable. Neither this Note nor the right to receive any payments of principal hereunder may be assigned or otherwise transferred by the Seller without the express written consent of the Land Authority. ...~~:I!' , ~f'gr.~\:'~Ii>" 'G-,V : ,"' (;7 ;{t" .(~A ttr,$. T3,.., ,t., ,"\ ... ^ \\ ;1} · - -. ij ~r":~r 'cc, . ( b ," C' l~.'-:1.Q .1), " I \ \~~f::~ -::, If:' / I '\>:~~':-~J l:-C >~.:. . MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY t........- 0- ~ c tive Director ~~ Larry R Erskine EXHIBIT C INTERLOCAL AGREEMENT FOR THE ACQUISITION OF POINCIANA HOUSING THIS INTERLOCAL AGREEMENT is entered into this 3- day of ~ ,2003, by and between the Monroe County Comprehensive Plan Land Authority, a land authority pursuant to section 380.0661, Florida Statutes, (hereafter "Land Authority") and the City of Key West, a municipal corporation of the State of Florida, (hereinafter "City") in order to establish mutual agreements regarding the Land Authority's participation in the purchase of real property for affordable housing from the United States of America, acting by and through the Department of the Navy (hereinafter "Navy"). WHEREAS, the Navy currently owns 21.61 acres of the Poinciana Housing Complex, said property being developed with 144 residential units, having the tax folio number 64740-000300, and being more particularly described in Exhibit A (hereinafter "subject property"); and WHEREAS, City Resolution 02-165 nominates the subject property for purchase by the Land Authority for affordable housing; and WHEREAS, the City, in its capacity as Naval Properties Local Redevelopment Authority of the City of Key West, intends to execute, as the Purchaser, an Offer to Purchase Real Estate and Acceptance (hereinafter "purchase contract") to the Navy, as the Seller, for the subject property; and WHEREAS, upon entering into said purchase contract, the City intends to assign said purchase contract to the Housing Authority of the City of Key West; and WHEREAS the City requests the Land Authority to finance $1,510,000.00 toward the purchase of the subject property. NOW THEREFORE, the Land Authority and the City do hereby agree as follows: 1) Upon the City's execution of the purchase contract, the Land Authority agrees to contribute $1,510,000.00 toward the City's purchase price, in accordance with the terms of this Interlocal Agreement. 2) The City shall not assign said purchase contract to any party other than the Housing Authority of the City of Key West without the express written consent of the Land Authority. 3) The Land Authority agrees to execute a promissory note in the amount of $1,510,000.00 in favor of the Navy (hereinafter "Note"). Said Note shall be delivered to the City for submittal as an earnest money deposit to the Navy along with the City's purchase contract. 4) In the event the City or its assigns fail to close the transaction and obtain title to the subject property and the Navy alleges a default under the purchase contract, the City agrees to indemnify and hold the Land Authority harmless from any and all liability arising out of said Note, including, without limitation, payment of said Note, attorneys' fees, and providing a defense. Page 1 of 2 5) In the event the City or its assigns close the transaction and obtain title to the subject property, the parties shall perform the following at closing: a) The City or its assigns shall execute a land use restriction agreement in favor of the Land Authority restricting future use of the property to affordable housing for very low, low, or moderate income persons as defined in section 420.0004, Florida Statutes. Said land use restriction agreement shall not expire and may only be released by the Land Authority. b) The City or its assigns shall execute a 30-year, zero-interest promissory note and mortgage agreement in favor of the Land Authority in the amount of $1,510,000.00. c) The Land Authority shall tender to the Navy the $1,510,000.00 represented by the Note. ,I ,>,vl..:,(" l"*-YX'~ESS WHEREOF, the parties hereto have caused this Agreement to be executed by {.~f1he~rtQ<ffi~ls thereto duly authorized. r i.' '. ~';;,~ :24 "I)-{l... ...'(~1f~r 'l.lj/,. \ '..\~:1liEst:~~.: ..........,. .' ,.," MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark~S:h~ Executive Director ~- <~~ Murray E. on Chairman ~ Larry R. Erskine , ,- M Approved for Legal Sufficiency ~~ f: ~/l-Lf Robert Tischenkel Page 2 of 2 EXHIBIT A LEGAL DESCRIPTION, Miscellaneous Housing Area: A TRACT of land lying on the Island of Key West, Monroe County, Florida and being known as a portion of Lots 1 thru 5, Lots 6 thru 12, Block 17, and Lots I thru 8, a portion of Lots 9 thru 12, Block 18 and land lying North of said Blocks and being more particularly described as follows: COMMENCE at the intersection of the Northerly Right-of-Way Line of Duck Avenue and the extension of the Easterly Right-of-Way Line of 16th Street, said point also being the Southwest corner of Lot 12, Block 19 of the "KEY WEST" FOUNDATION COMPANY'S Plat No. #2; thence N.70056'OO"E., and along the said Northerly Right-of-Way Line of Duck Avenue a distance 660.00 feet to the Southwest corner of said Lot 12, Block 18; thence N.19004'OO" W., and along the Westerly line of said Lot 12, Block 18 a distance of 135. 00 feet; thence S.70056'OO" W., a distance of 16.98 feet to the Point of Beginning; thence S.70056'OO"W., a distance of 93.02 feet; thence N.19004'OOl1lW., a distance of 129.38 feet; thence S.86005'47"W., a distance of 29.11 feet; thence N.19037'19"W., a distance of 344.10 feet; thence N.72047'35"E., a distance of 188.81 feet; thence N.40051'10"E., a distance of 208.64 feet; thence N. 65013'55"E., a distance of 105.78 feet; thence N.17037'03"W., a distance of 57.73 feet; thence N.70056'31"E., and along the Northerly Boundary of Poinciana Housing a distance of 925.97 feet to the Westerly Right-of-Way Line of 19th Street; thence S.19004'00"E., and along the said Westerly Right-of-Way Line of 19th Street a distance of 533.99 feet; thence S. 70056'00"W., a distance of 172.38 feet; thence S.18044'29"E., a distance of 74.73 feet; thence S.37053'13"W., a distance of 78.40 feet; thence S.19004'OO"E., a distance of 131.14 feet to the Northerly Right-of-Way of Duck Avenue; thence S.70056'OO"W., and along the said Northerly Right of-Way Line of Duck Avenue a distance of 1,021.99 feet; thence N.19004'OO"W., and along the said Westerly Line of Lot 12, Block 18 a distance of 98.16 feet; thence N. 70056'OO"E., a distance of 153.38 feet; thence N.19004'OO"W., a distance of 84.40 feet; thence N.87020'47"W., a distance of 114.08 feet; thence S.02039'13"W., a distance of 6.82 feet; thence N.87020'47"W., a distance of 36.33 feet to a point on a curve to the left, having: a radius of 19.88 feet, a central angle of 80032'18", a chord bearing of S.40014'27"W. and a chord length of 25.70 feet; thence along the arc of said curve, an arc length of 27.94 feet to a point on a curve to the left, having: a radius of 155.85 feet, a central angle of 15052'21", a chord bearing of S.1 0049'00"E. and a chord length of 43.04 feet; thence along the arc of said curve, an arc length of 43.18 feet to the end of said curve; thence S.19018'04"E., a distance of 41.18 feet to the Point of Beginning. Parcel contains 941,316 square feet or 21.61 acres, more or less. RESOLUTION NO. 03-172 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, NOMINATING THE POINCIANA HOUSING COMPLEX TO THE MONROE COUNTY LAND AUTHORITY FOR AN ADDITIONAL FUNDING OF $700,000.00; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, on May 29, 2002, the City Commission adopted Resolution No. 02 -165 nominating the Poinciana Housing Complex (PHC) for acquisition by the Monroe County Land Authority (MCLA); and WHEREAS, on January 30, 2003, the City Commission approved an interlocal agreement with MCLA concerning a 30-year, zero-interest mortgage in the amount of $1,510,000 toward the purchase of the PHC; and WHEREAS, on January 30, 2003, the City Commission approved an offer to purchase the PHC from the Navy at a price of $15,100,000 contingent upon the amount the City obtaining the balance of the financing necessary to close; and WHEREAS, on May 8, Z003, the City received notice the Na~1 has approved the City's purchase offer, with a closing date of September 15, 2003; and WHEREAS, in order to obtain the Section 108 Loan Guarantee from DCA and HUD necessary to finance the balance of the purchase price, the City will need $700,000 in additional local funding; NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF KEY WEST, FLORIDA, AS FOLLOWS: Section 1: That the City of Key West hereby nominates the Poinciana Housing Complex for an additional $700,000.00 in funding from the Monroe County Land Authority Section 2: That such funding shall be disbursed at closing and secured by a 30-year, zero-interest mortgage executed by the City or the Key West Housing Authority. Section 3: That this Resolution shall go into effect immediately upon its passage and adoption and authentication by the signature of the presiding officer and the Clerk of the Commission. Passed and adopted by the City Commission at a meeting held this 20 day of Hav , 2003. Authenticated by the presiding officer and Clerk of the Commission on Hav 20 Filed with the Clerk ATTEST :~ . UJW/J-J ( CH RYL SMITH, CITY , 2003. 21 , 2003. /-----