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Home My WebLink AboutBastian Court LP - Amendment No 1 Bastian Court APN 466-142-15 & 466-142-14 appartment project HOME Investment Partnerships ProgramRECORDED AT TME REQUEST OF AND WHEN RECORDED RETURN TO. City of FRsno Coymem 2100 Fmiw Sh ail, Room 2133 Fri CA G3721-3603 7 =, m,.. A =uv/ro FRESNO County Recorder Robert C. Nerner DOC— 2010-0141556 rrl4ay. OCT 22. Me 09:57:23 Ttl Pd $0,00 Nbr-0083313930 GSF/R7/1-9 (SPACE aeoV (NIS UNE FOR RCGWiMW USEI This Amendment No. I to Agreement is recorde i at the request and for the benefit of the City of Fresno and is exempt from the payment of a recording Fee pursuant W Government Code Secion 6103 CIN OF Ry Name'. race Rutltl tts: Assist t ty Manager Date: AMENDMENT NO. I TO CITY OF FRESNO HOME PROGRAM AGREEMENT Recorded Aug 19, 2008 DOC- 2008-0118280 by and between CITU OF FRFmSNO. a municipal corporation antl BASTIAN COURT. LP a California Limitetl Liability Company regarding "Bastian Court" APN: 466-142-15 and 466-142-14 An Affordable Mufti -Family MixfxFUw Apartment Project AMENDMENT NO. I TO HOME Program Agreement regarding Construction of Affordable Muld�amily Mixed -Use Housing This Amendment No. I ("Amendment No I') to HOME Program Agreement, effective March 22. 2010, is entered between Bastian Court , LP, a California limited partnership. in good standing with Principal off idea in Fresno, California ('DEVELOPER'), and the City d Fresno, a municipal corporation ("CITY"). RECITALS WHEREAS, In response to DEVELOPER'S 2X7 $4, 050,000 funding application, the CITY and DEVELOPER entered a July 22, 2008 HOME Program Agreement and ExhibitslAfachments. providing a HOME Program Loan in Me initial amount of $2.100,000, including covenants running with me land ('HOME Agreement'), incorporated herein Pursuant to which the CITY, to further its goal to increase the supply of Affordable Housing within me City d Fresno, agreed to sssist DEVELOPER by providing HOME Program funds. upon the terms and conditions in the HOME Agreement, related to a sixty-one (61) unit rental housing project to be funded, in part with U.S. Debarment of Housing and Urban Development (HUD) HOME Program funds, upon HOME eligible Property located at the northwest comer of Sta sslaus and L Streets, within the boundaries W the City of Fresno APN 466-142-15 and 466142-14, as more padiculahy described in the HOME Agreement. said Project subject to Affordability restrictions as provided in the HOME Agreement antl WHEREAS, the CITY'S approved 2010-2011 budget increases funding for this project to $3,050,000, and the parties desire to met the Agreement accordingly, and to extend project itmellnes, and WHEREAS, this project has been environmentally assessed under the National Environmental Policy Act (NEPA), resulting in a finding of no significant impact antl underthe California Environmental Quality Act (CEOA), resulting In Notice m Exemption No. 014-072M and WHEREAS, the Housing and Community Development Commission recommended approval of this Amendment No. I on March 10, 2010, and WHEREAS, the Fresno City Council approved this Amendment No. I on March 18. 2010. AGREEMENT NOW THEREFORE, in consideration of me above recitals. which recitals are contractual In refund. Me mutual promises herein containeQ and for other good and valuable consideration hereby acknowledged, the paries agree to the following. 1 The HOME Program Loan to this project shall be increased from Two Million One Hundred Thousand Dollars ($2.100,000.00) to a not to exceed total of Three Million Fifty Thousand Dollars ($3,050,000.00), consistent with allocated and available HOME Fuming in CITYS Fiscal Year 2010-2011 Bud", and the Loan Documents shall be modHied accordingly, subject to City Attorney approval to form. 2. The Project Schedule attached to the HOME Agreement as Exhibit B Is hereby stricken and replaced with the Revised Project Schedule attached hereto as Exhibit B, and incorporated herein. 3. The Project Budget attached to the HOME Agreement as Exhibit C is hereby stricken antl replaced with Me Revised Project Budget attached hereto as Exhibit C and incorporated herein. 4. In the event of any conflict between the body of this Amendment No I am any exhibit or attachment hereto, the terms and conditions of the body of this Amendment No I shall control and take precedence over the exhlbiVettechment. 5. All capitalized terms used in this Amendment No. I. unless otherwise defined herein, Mail have the meanings assigned to such terms In the HOME Agreement 6 Except as expressly modified and amended hereby, Na HOME Agreement shall remain in full force and effect From and after his effective date ofthis Amendment No. 1, references in the HOME Agreement tc 'tris Agreememf shell mean HOME Agreement as hereby amended. 7 This Amendment No. I shall be conditional upon anylall required HUD approvals. IN WIT NESS WHEREOF, the authorized agents of the parties hereto have executed this Amendment No. I, at Fresno. California, Me day and year first above written. CITY OF FRESNO a Municipal Corporation By BRUCE RUDD Assistant City Manager (Arzh.wry ('6nlAcee msee.ead.m.mi ATTEST Rebecca E. Khsch City Clerk By datziG Deputy) Date: APPROVED AS TO FORM: James Sanchez City Attorney By: (e 41 Deputy Date: 1e.a1• u BASTIAN COURT LP, a California Limited Partnership Mission Housing Development Corporation A California Non-Pmft Corporation Its General Partner By arty el Carlo Pres dent (Adam notary traditions of erinowlMgmenr) Date Id le) ATTACHMENTS: Mission Housing Development Corporation A CalHomia Non-Protit Coryoranon Its Q6Geneer By Pato Gallego Secretary (Areca envy warricate 0 eanaMerdmenp Opte: Attachment L Revised Frhibd B Project Schedule Attacament2: Revised Exhlbit C Project Budget ATTACHMENT Revised Exhibit B Project Schedule Acliviry _ TlmNine Applyi ICAC Wn6ng March 26 2010 Sbrt ConeWctlpn December 15, 2010 Complete Conetructi _March 30, 2012 Complete Lease Up Ma 30, 2012 ATTACHMENT Revised Exhibit C Project Budget Ell Tu In .1 Im Im mm �ow ma 10 Ell .1 Im mm mm Im mm 14 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT Stale of California 1 Caumy of yYJ pCJi 1S On jc�kiptn Iremrema. peraorlstry appealed PETEE SA( a..olawwr.I who label to me on me basis of saliskOmry evidence in be the aMon(yJ mamas moreat )fol wlucllbed to the within Instrument and acknowledged to me Met LISA x0A0a hefMa4PA` vgCuted the same In IIISMx(Ylar aNMr' pn losbn a I W2a2a rapanity(teal and that by hlsnlerwab signal on me IIY2LUNkgtleoMa inahumem the Ixmal or the army upon behalf OI beer beat Canb which the personal) armed, ereMed the lnsWn9nt CM6. =Joe 21. 2012 1 ceNdy under PENALTY OF PERJURY under the laws of the Slate Of California that me foregoing paragraph Is Me and answer. 7 WITNESS my handand onldal bald. Si9nature'�"!—:irq tie aw�.wa.w.. OPTIONAL mourn mel�uarerron eno.T nw ramaraery rel.. nmayemre rearedamparama laM^4m fne maum.nr ammwdpralmnrmwuuul renwrelane�lranwrmmrae..rroarem.+e,>,...rrlaur. 2MaCIfil O2 At hW ['Downed Tine ar Type of Document W Irs m Gae Number of almost. Set er(a) OI11n lrum Named Adrve: Cap iclrygea) Claimed by Slgnege) Sigrofs Name: sgnala Name: individual unaludum Corpaou Ghor—Tilare, — —'Cmpomre Grcmor—Tiue(sl: _ Parinor— Gmned General .Panner —I [,TW LGeneri Adorn%'n Fact_ MEMO AframW In Gast _ Trustee prose Nln^^ Guardian or Consarvemr Guardian or Consenremr Clhat_ Philo Signer Is Repreil Scow Is Representing: 7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County at ✓p-tifjv�ti`r On ledt2L2—t0 balers me, LlLif�..m.Wow efKWCl$R C personally appeared a.. h. 6n Norm" p LmnAu Oom pxB» b cams Wm"we"b 1 ae^n +m zr. xtrx who pros to me on rile basis of satisfactory evideme to be Me psrshorm whom reme(s; Salam to ince ribamoat INotarial executed the same g In y hismarAM1eir signamd uynci the I, and Mat he hls@YWh. o Slhe entry bah Instrument whit the persmpj, c Me entry upon behalf ntt which Ma PersenfYl acted, executed me imwmem. I pertly under PENALTY OF PENURY under the laws Of Me State of Calilomia Mat the foregoing Paragraph is true and comp[. WITNESS my hand and orec!dl seal. SlgnaWre! �La �il� w OPTIONAL +!iced merormrmdm ewwn nw revsrradevew, amsr wm..ms.ab maem,nnn .r Adauchnd Docmm.nr,.mn�.l.nare.v.umre.x wlnnio.,n ro.nwrera prem. OexrlThis of olds Oowmenx rel¢ or This m Dop�mem. Document Dale: sipn¢rlat Other Two Named nlwve (¢Paoixyliw) Claimed by Sgnei Signers Name: L Oamorme Gnlmr—Trials) r mr,m al L Forms —F n-!GsnsmPER" . n„mh J AninY wiedIn Fact n Trustee -I Guardlen or corworelor 1 Other: Signer Is Romissendng. signers rvame. Gmpome Dnlgsr — Tal From: IMMdoal l Partner L Limited F Ga lend 1 Anomer m Fact 1 Trustee GWNian or Consonmer n OMeF. Signer is Repressnung: r qii„yxon State of California ) County of Fresno ) On October 11 2010 before me, Shame L. Batledscher, NOW CIN Clerk, personally appeared, Bruce Rudd, Assistant Ciry Manager, who proved tome on the basis of satisfactory evidence, to be the person(s) whose names) iWare subscribed to the within instrument and acknowledged to me that helshellhey, executed the same In humertheir authorized capaciry(es), and that by histhei-Meir signature(s) on Me instrument the commits), or Me entity upon behalf of which Me pereon(s) acted executed the instrument I car* under PENAL FY OF PERJURY under the laws of Me State of Coraomm that Me loregoing paragraph is hue and correct WITNESS my hand and official seal REBECCA E. KLISCH, CMC City Clerk, City of Fresno 90 r By Aw OAAe - &,"J ®! Deputy, r v REPORT TO THE CITY COUNCIL AGENDA ITEM NO. 4:3Oam A COUNCIL MEETING $jtB�lD r March 18. 2010 m^ FROM: KEITH BERGTHOLD, Assistant Director Planning and Development DepaNneM THROUGH: CIAUDIA CAZARES, Manager lL, rv..... ntor;yc5od Housing and Community Development Division J s ° 11 my BY: JOHNROBERTSON. Management Analyst 111 Housing and Community Development D'"1011 SUBJECT: APPROVE AMENDMENT NO. 1 TO HOME PROGRAM AGREEMENT BETWEEN CITY OF FRESNO AND BASTIAN COURT LP TO INCREASE THE HOME FUNDING AMOUNT BY $950.000 AND EXTEND THE PROJECT'S COMPLETION DATE RECOMMENDATIONS Staff recommends that City Council approve Amendment No. I (Exhibit A) to the HOME Agreement (Agreement) between the City of Fresno and Bastian Court LP, increasing the HOME loan from $2,100.000 to $3,050,000 for the development of Bastian Court a 61 unit affordable mufti-family rental project located at the northwest corner of Stanislaus and L Streets in downtown Fresno and extend the project's completion date. EXECUTIVE SUMMARY On July 22, 2008, Council approved the HOME Program Agreement with Basilan Court LP, in the amount of $2.1 million in HOME loan funds for the development of 61 affordable rental housing Units at the proposed Bastian Court project. The developer's funding application requested S4.050, 000 in HOME funds to construct this much needed affordable housing in downtown Fresno. At Net time staff advised Council that the additional HOME funds would be brought before Council at a later date to be added to the original allocation. Amendment No. I will increase the HOME loan funding by $950,000. from $2,100,000 to $3,050,000, and extend the project's completion date to April 30, 2012. This additional funding amount of $950,000 was Induced In the Planning and Development Department's FY10 budget and allocated to this project. Mission Housing will not request the atltlitional $1,000,000, as this balance will be requested of the Tax Credit funds from the State of Callfomia. BACKGROUND The Bastian Court affordable housing project previously received City Council approval of $2.100 00 In HOME Program funds for Me construction of 61 affordable rental housing units In downtown Fresno. At Nat Woe City staff informed Council that additional financing in the amount of $1,950,000 was also requested but REPORT TO THE CITY COUNCIL Amendment No. 1 to Bastian Court HOME Agreement March 16, 2010 Page 2 not readily available in the Planning and Development Department's budget. Therefore future Council action would be requested to Increase the funding incrementally as such funds became available in the Oepadmems budget, Additional funtls, in the amount of $950.000 were included for this project as pad of the Planning and Development Department's FY10 approved budget Mission Housing Development Corporation five general partner of Bastian Court LP has now requested the increase be added to their contract to facilitate a competitive tax credit application in March 2010. Bastian Court developers had originally requested $4,050,000 to meet the gap financing needed for construction of the project. In 2008, staff recommended approval of the emirs project with the understanding that future budgets would include the funding necessary for this project. At his time, the developer re only requesting a portion of the balance, $950,000, and will not seek the remaining balance, $1,000,00q as may will be requesting Nis amount from the State of California Tax Credit Allocation Committee. Mission Housing has over 30 years experience buffing quality affordable housing throughout the state of Celffomia. The project is located on the northwest comer of Stanislaus and L Streets in downtown Eduard, and will consist of SO affordable rental housing units, of which all will be available to very low and low income families, one manner's unit and commercial grOOd flee! space. The pr jell WIII have 15 011e -bedroom unite, and 451wo-bedroom units. The HOME Program funds will be provided as a loan at the applicable tedeml rale (at time of disbursement), will carry a 55 -year affordabilM period, with the principal ant interest payable from residual recision tom the project's net operating income. The total project cost is estimated at $18] million. Other proposed sources of financing are 9% tax choose, deferred developers fee arm a general partner loan. The commercial construction will be financed separately through other sources. If awarded 2010 tax credhs, Bastian Court anticipates construction to start in October 2010 and completion of the projectto be completed in April 2012. If Amendment No. I is approved as recommended. Me Agreement documents will be fully executed, recorded, and featly for submifial with the applical Although the Amendment will be executed and recorded for the purposes of the tax cretld application, execution of the Promissory Note and related security loan dowments, and disbursement thereof are contingent upon an award of 2010 LIHTC funding. An environmental review consistent with both stale regulations (CEOA) and federal funds (NEPA) has been completed. The projed was found to be exempt from the provisions of CEDA ant have net significant impact on the environment based on NEPA guidelines. FISCAL IMPACT HOME Program funds for the proposed Basten COW protect are available in the Planning and DevelopmerH Department's Fiscal Year 2010 Budget. Attachment Exhibit A: Draft Amendment No. 1 to HOME Program Agreement