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Item G2LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: October 17, 2007 Division: Land Authority Bulk Item: Yes No X Contact / Phone #: Mark Rosch / 295-5180 Agenda Item Wording: Approval of a resolution authorizing the encumbrance of Bahama Conch Community Land Trust property located at 307 and 307Y2 Julia Street in Key West. Item Background: The Bahama Conch Community Land Trust requests approval to encumber 307 and 307Y2 Julia Street in Key West as security for a one-year $275,000 loan. The subject property is developed with two residential units. The loan proceeds will be used to fund 1) property rehabilitation at three BCCLT affordable housing properties and 2) underwriting and pre -development expenses to rehabilitate or develop four additional BCCLT affordable housing properties. BCCLT plans to repay the loan with the proceeds of a construction loan. BCCLT's proposed encumbrance requires Board approval pursuant to Land Authority deed restrictions. Advisory Committee Action: On September 26, 2007 the Committee voted 5/0 to approve this item. Previous Governing Board Action: The Board authorized the purchase of 307 and 307Y2 Julia Street in partnership with BCCLT on April 17, 2002 Contract/Agreement Changes: N/A Staff Recommendation: Approval. Total Cost: N/A Budgeted: Yes No Cost to Land Authority: N/A Source of Funds: N/A Approved By: Attorney X County Land Steward Documentation: Included: X To Follow: Not Required: Disposition: Agenda Item BAHAMA CONCH COMMUNITY LAND TRUST OF KEY WEST INC. 325 Julia Street, Key West, Florida 33040 Telephone: 305-294-0884 Fax:305-294-8901 www.bcclt.org September 20, 2007 Mark Rosch, Executive Director Monroe County Land Authority 1200 Truman Avenue Key West, FL 33040 RE: Affordability Covenant #4 — Refinancing Limits 307 Julia Street Dear Mark, K4 SEP As per our discussion on Tuesday, we are requesting time on the MCLA Advisory meeting agenda for September 26, 2007 to discuss the above referenced covenant. BCCLT, in compliance with our grant agreement with the Southernmost Homeless Assistance League for the rehabilitation of 307 & 307 '/z Julia Street and 209 Petronia Street, have approval for a loan of $275,000 from Marine Bank to fulfill our final obligations to that project. According to the covenants, we can only use this loan for capital improvements on 307 Julia Street. We would like to discuss with the Board this covenant and its implications and ask the Board to amend the use of these funds so that we can use the remainder of the funds from the loan for some of the pre -development expenses for the rehabilitation and new construction of 211, 213, 222 Petronia Street and 904 Emma Street, all properties purchased by the MCLA for BCCLT. We have approximately $1,137,000 awarded to us by the Florida Housing Refinance Corporation for these projects and we are putting together our funding package for the remainder of the project's cost and we would like some consideration from the Board to help us make this happen. My Deputy Director and I will attend the meeting and will present our case to the Board. If you need any further information, please feel free to call me at (305) 304-6765. Thanks in advance for your support and cooperation in this matter. Sincerely, Nonna n Sawyer-Atanda Executi e Director ...Preserving Communities for Future Generations. RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING THE ENCUMBRANCE OF BAHAMA CONCH COMMUNITY LAND TRUST OF KEY WEST, INC. PROPERTY LOCATED AT 307 and 307Y2 JULIA STREET IN KEY WEST. WHEREAS, Bahama Conch Community Land Trust, Inc. (hereinafter "BCCLT") has received a $715,000 grant from the Southern Homeless Assistance League (hereinafter "SHAL") to fund a portion of the rehabilitation of BCCLT-owned affordable housing properties located at 307 Julia Street, 307Y2 Julia Street, and 209 Petronia Street in Key West; and WHEREAS, BCCLT estimates the balance of the rehabilitation expenses on said properties in excess of the SHAL grant to be approximately $100,000; and WHEREAS, pending underwriting approval, BCCLT has been approved to receive a $1,137,644 grant from Florida Housing Finance Corporation (hereinafter "FHFC") toward the rehabilitation of 211 and 213 Petronia Street and the development of 222 Petronia and 904 Emma Street, all of which are BCCLT-owned affordable housing properties in Key West; and WHEREAS, BCCLT anticipates approximately $100,000 in underwriting and pre -development expenses for the FHFC rehabilitation and development projects; and WHEREAS, BCCLT proposes to finance the above referenced expenses associated with the SHAL and FHFC grant projects with a one-year, $275,000 loan secured by a lien encumbering 307 and 307Y2 Julia Street; and WHEREAS, BCCLT plans to repay said loan with the proceeds of a construction loan on the 211, 213, and 222 Petronia Street and 904 Emma Street properties; and WHEREAS, said lien for the proposed one-year $275,000 loan requires approval by the Monroe County Comprehensive Land Authority pursuant to affordability covenants recorded at Official Records Book 1798, Page 1567; and WHEREAS, the Land Authority Advisory Committee considered BCCLT's proposal at a meeting held on September 26, 2007 and voted 5/0 to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. BCCLT is authorized to encumber 307 and 307Y2 Julia Street in Key West with a lien securing a one-year loan in the amount of $275,000. Page 1 of 2 Section 2. BCCLT is authorized to use the proceeds from said loan to pay for rehabilitation expenses for 307 Julia Street, 307Y2 Julia Street, and 209 Petronia Street in Key West and underwriting and pre -development expenses at 211 Petronia Street, 213 Petronia Street, 222 Petronia Street, and 904 Emma Street in Key West. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 12007. (Seal) ATTEST: Mark J. Rosch Executive Director Approved for Legal Sufficiency Larry R. Erskine MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Charles "Sonny" McCoy Chairman Page 2 of 2