memorandum of understanding land bank authority

8/2/2019 Memorandum of Understanding Land Bank Authority

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MEMORANDUMOFUNDERSTANDING

THIS CONTRACT and AGREEMENT here ina fte r referred to a s Agreementis made a n d entered a s of the 24 day of February 2010 by and between Augusta Georgiahereinafter referred to as AUGUSTA a political subd iv is ion of the State ofGeorgiaand the Augu sta Georgia L an d Bank Authority hereinafter referred to a s LANDBANK

WHEREAS the General Assemb ly saw the necessity in re turn ing tax de l inquentn on revenue p roduc ing o r n on ta x produc ing properties to a n effective uti l ization status inorder to provide hous ing new industry and jobs fo r the citizens of the county andenacted the LAND BANK Author ity Ac t hereinafter The Act andWHEREAS AUGUSTA p urs ua n t to the Act on July 16 1997 created theAugus ta Georg ia Land Bank Authority granting the LAND BANK with the powersprovided by Georgia Code a s we l l a s such powers a s neces s a ry a n d i nc identa l to the

exercise of such powe rs in c lu d in g but not l im ited to the power to c on tra ct a ll infurtherance of its purpose to acquire ta x de l i nquent n on revenue or non ta x produc ingproperties and return such property to a status which ca n provide housing new indust ryand jobs fo r the citizens of the county an dWHEREAS AUGUSTA ha s previously determ ined and resolved that severalhistoric neighborhoods located within the bounda ries of o ld c ity lim its are in need ofrehabi l i tation c on s erva tio n o r redevelopm ent and that AUGUSTAS nitial effortswou ld be concentrated in the historic Laney Walker and Bethlehem neighborhoods whichcontain a large number of historic residential and commerc ia l properties the Project

Area

WHEREAS AUGUSTA is in the process of creating a n Urban RedevelopmentAgency the URA pursuan t toOC66118 for the pu rpo se of rehabilitationconserva tion or redevelopm ent of properties with the Project Area andWHEREAS the LAND BANK has previously and con tinues to acqu ire propertiesin the Project Area in furtherance of this stated purpose of acquiring ta x del inquent nonrevenue or n on ta x producing properties and return such property to a status which canprovide hous ing new industry and jobs fo r the citizens of the county andWHEREAS the LAND BANK is willing to and is desirous of cooperating andcoordinat ing w ith AUGUSTA and the URA the acquisit ion of properties in the ProjectArea a n dWHEREAS to facilitate the acquisit ion of the property AUGUSTA desires tomake available to the LAND BANK and the LAND BANK desires that AUGUSTA

make avai lable to the LAND BANK1000000or the purchasing of property in theProject Area provided that if and upon the sale of such acquired property the LANDBANK shall refund to AUGUSTA funds advanced fo r such acquisi t ion


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J

NOW THEREFORE in consideration of their mutual covenants a n d within thel im itat ions of this Agreem ent AUGUSTA and the LAND BANK covenant a n d agree a sfollows

SECTION 1

1 AUGUSTA covenants and agrees to advance up to One Million Dol lars1000000t zero percent 0 interest per annum to the LAND BANK topurchase property in the Project Area a nd to pa y such capita l izable costsassociated with the acquisit ion of the property s uch a d va n ces to be m ade inconformance with the request and authorization process currently utilized betweenAUGUSTAS ous ing and Commun i t y Developm ent depar tm ent a nd the LANDBANK12The LAND BANK covenants and agrees that an y properties acquired with fundsadvanced pursuant to th is Agreem en t the Acquired Property shall be madeavailable fo r purchase by the URA fo r the pu rpose of rehabil i tating conservingand redeveloping su ch properties13The LAND BANK covenants a nd a grees that the sales price of the AcquiredProperty sha l l be equa l to or greater tha n the a m oun t of the LAND BANKsadjusted cost basis acquisi t ion cost plus capital izable costs14The LAND BANK covenants a nd agrees that it will use the revenue derived fromthe sa le of Acquired P roperty to re im bu rse AUGUSTA for all mon ies advanced tothe LAND BANK fo r the purpose of purchasing such property

SECTION II

2 DURATION This A greem en t s ha ll c omme n ce on the date the funds becomesavailable to the LAND BANK and shal l be in effect unti l July 1 20102UNDING SOURCE AUGUSTA shall advance funds to the LAND BANKfrom funds derived from its general fun d o r other f unds lawfully ava ila b le to itfo r such purposes to provide mon ies suff icient to fulfill its obligation2SECURITY INTEREST In order to assure that the AUGUSTA will bereimbursed funds advanced for the purchase of the Acquired PropertyAUGUSTA shal l have the right bu t n ot the obligation to eviden ce itsecurityinterest b y recording a Security Deed in the Office of the Clerk of the SuperiorCourt and the LAND BANK shal l cooperate with AUGUSTA if it elects to recordsuch security instrument24LEGISLATIVE MODIFICATION Notwithstanding a n y other provision of thisAgreem en t to the contrary in the even t tha t a ny federal state o r lo ca l law ruleregulation or interpretation thereof res t ric ts prohibits or in a n y w a y m ateria l l ychanges the rights or ob l igat ions of either party then th is Agreem en t shall to theextent perm itted by the l aws of Georgia b e d eemed am en d ed by the parties in amanne r cons is tent with a n y such probation restriction or limitation


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ti

2TERMINATION FOR CAUSE Should AUGUSTA in its so le discretiondetermine that the LAND BANK is fai l ing to substant ia l ly comp l y with the term sand condit ions of this Agreem ent AUGUSTA m ay term inate this Agreem en tupon three3a lendar daysritten not ice to the LAND BANK and have nofurther obligation to make addi t iona l advances fo r the purchase of propertyUpon term ination the LAND BANK shal l refund to AUGUSTA the previouslyadvanced bu t unexpended mon ie s2ERMINATION FOR CONVENIENCE Either p a rty m a y term inate thisAgreement by provid ing thirty 30 days written notice to n on term inating partyThe LAND BANK shal l refu nd to AUGUSTA the previously advanced bu tunexpended monies2AGENCY Neither Party becomes the agent of the other under this Agreem entand each will c on tin ue to perform its statutory funct ions and the funct ionstransferred or retained unde r this Agreem en t a t its own sole cost andresponsibi l i ty independently of the other Neither pa rty will be responsible fo r thecontracts nor other obligat ions of the other except a s specif ical ly stated andtransferred hereinabove2SEVERABILITY If an y term or provision in th is Agreem en t shal l be deemedillegal or unenforceab le notw iths tan d ing the offending terms or provis ions thisAgreem ent sha ll rem ain in full force in effect a nd such term s o r p rovis ions shal lbe deemed stricken29ASSIGNMENT Neither party m a y assign its respective obl igat ions ar is ing ou t ofthis agreement without the prior written consent of the other par ty20 WAIVER The waiver by either party of a n y breach of an y provision conta inedin the Agreem en t sha l l not be deemed to be a waiver of such provision on a n ys u b s e q u e n t breach of the s a m e or any other provision contained in thisAgreement21 GOVERNING LAW This Agreement shall be construed in accordance with andgoverned by the laws of the State of Georgia and jurisdiction shall lie in theSuperior Court ofRichmond County22COMPLETE AGREEMENT This agreement s e t s forth a ll p ro vis io n s andunderstandings between the parties There are no provis ions understandingsrepresentations or i nducements either oral or written between the parties otherthan those hereinabove s e t forth It is further understood a nd a greed that nosubsequent a ltera tio n ame n dmen t m od if ica tion change or addit ion to thisAgreement shall be binding upon the parties hereto unless the s a m e is reduced towrit ing and signed by the part ies to this Agreem ent

IN W ITNESS WHEREOF this Agreem ent is execu ted a s the date firstwritten above

Augusta Richmond County

U 4ByIts Mayor


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At t eko m m i s s i o ns Au gu sta L an d B an k Authority

ByIts

Attes

ts Secretary


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CALLEDMEETING CONMSSION CHAMBERDecember 7 2009T h e A u g u s t a R i c h m o n d C o u n t y C o m m i s s i o n c o n v e n e d a t 110aM o n d a yD e c e m b e r 0 7 2 0 0 9 t h e H o n o r a b l e A l v i n M a s o n M a y o r P r o T e m p r e s i d i n gPRESENT H o n s S m i t h G r a n t h a m H a tn e y B e a r d J o h n s o n J a c k s o n B o w l e s a n dB r i g h a m m e m b e r s o f A u g u s t a R ic h m o n d C o u n ty C o m m i s s i o nABSENT H o n s D e k e C o p e n h a v e r M a y o r H o ll a n d m e m b e r o f A u g u s t a R i c h m o n d

Coun ty Comm iss ionA l s o P r e s e n t F r e d R u s se l l A d m in is tr a to r C h i q u i t a J o h n s o n G e n e r a l C o u n s e l N a nc yMorawski Deputy Clerk ofCommiss ion

1 D i s c u s s a p p r o v e f i n a n c e a n d p r o j e c t d e v e l o p m e n t p l a n s f o r t h e T E E CenteraneyWalker Bethlehem ProjectsMr G r a n t h a m M o t io n to a p p r o v e th e r e c o m m e n d a t i o n o f th e T E E CenteraneyW a l k e r B e t h l e h e m S u b c o m m i t t e e r e g a r d i n g th e f u n d i n g w it h th e a d d e n d u m to in cr ea set h e o r ig i n a l f u n d i n g t o T r a n s i t u p t o 40000 o n c e1i l l i o n i s c o l l e c t e d a n d t h e a m o u n to v e r1i l l i o n w o u l d b e s p l i t b e t w e e n T r a n s i t a t 60 a n d a r e v i t a l i z a t i o n f u n d f o r a l l

eight districts a t 4 0Mr Hatney SecondM r R u s s e l l If y o u c o u l d y o u n e e d t o i n c o r p o r a t e t h a t m o t i o n a n d s e c o n d t o i n c l u d e t h e

v e r b a g e in t h e d o c u m e n t s that a r e relevant The entire m otion n e e d s to include the relevantdocumen t thatsttachedM o t io n t o a p p r o v e t h e f o l l o w i n g a c t i o n s r e g a r d i n g t h e T E E C e n t e r L a n e y W a l k e rBethlehem Project and the Transportation FeeA s to th e T E E C e n t e r P r o j e c t 1 p r o c e e d w ith th e T V S d e s i g n f o r th e T E E C e nte r a n d th ed e s i g n a n d c o n s t r u c t i o n o f a p a r k i n g d e c k c o n s i s t e n t w i t h t h e T V S d e s i g n p a r k i n g s t u d y a ta t o t a l c o s t o f480000o r th e p a r k i n g d e ck a nd T E E C e n t e r F u n d i n g f o r th e p r o j e c t sto come for the following sources200000r o m S P L O S T V a n e t a m o u n t o f190000r o m t h e i s s u a n c e o f ta x e x e m p t b o n d s10000r o m c o s t s a v i n g s f r o m t h eJ u d i c i a l C e n t e r P r o j e c t50000r o m a d dit io n a l S P L O S T V c o l l e c t i o n s a n d20000f r o m S P L O S T V i n t e r e s t e a r n i n g s S o u r c e s o f f u n d s f o r th e r e p a y m e n t o f th e b o n d s w i l l b e10000 f r o m t h e Hotelotel t a x a n d 42500 f r o m t h e c a r r e n t a l f r a n c h i s e fe e 2A p p r o v e t h e e x e c u t i o n b y t h e M a y o r a n d C l e r k o f C o m m i s s i o n t h e T E E C e n t e rM a n a g e m e n t a n d C a t e r i n g A g r e e m e n t a n d T E E C e n t e r C O R E A g r e e m e n t w i t h ap r o v i s i o n t h a t t h e p a rk in g lo t a n d d e c k i s t o b e o p e r a t e d b y t h e T E E C e n t e r o p e r a t o rS u c h a g r e e m e n t t o b e subject t o r e v ie w a n d approval by bond a n d ta x counsel 3Authorize t h e Administrator t o p r o c e e d with t h e n e c e s s a r y RFQFPor a construction


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rm a n a g e r at risk fo r the construction of the parking deck and t h e TEE Center 4Authorize the Adm in i s tra to r to acquire the necessary l and for the construction o f the TEECenter and parking deck and to undertake s u c h action a s n e c e s s a r y t o begin constructionof the parking d eck a nd TEE Center 5Authorize the Adm in is tra tor to e n g a g e bondcounse l for the i ssuance of bond s for the construction of the p ro jec ts a n d to obtain theColiseum Authoritysonsen t to issue the bond s for the projectsAs to the Laney Walker Bethlehem Project 1pprove the i s s u a n c e of80000ftaxable bonds to c on tin u e the Laney WalkerBethlehem Project with the bonds beingam ortized of 3 0 year with a 5 year m a turi ty The bonds wil l b e repaid from a portion ofthe Transpor tat ion Fee designated for the Laney Walker Bethlehem Project 2Authorize the Adm in is t ra tor to develop program m at ic requirem ents fo r u s e of funds fo rland acquisit ion developer loans and down payment assistance 3Advance10000from the general fund to continue the project such a d va n ce to b e repaid from the b on dproceeds 4Authorize the Administrator to take such action as necessary to form aUrban Redevelopment Agency fo r the issuance of the bo n d s 5Obtain bond counselsapproval that the u s e of the b on ds funds wi l l no t violate bond covenants or law 6Authorize the Administrator to engage b on d c ou ns el to issue the bon d sAs to the Transportat ion Fee Am end the ord inance to provide that the35000of theinitial collections o f 0000hall go to TEE Center project for operat iona l a nd cap i ta lexpenditures75000f the initial collections o f10000hall to the Bethlehem LaneyWa l ke r P ro jec t fo r paymen t o f bond costs and pa y a s you g o projects40000of theinitial collections of 0000hal l go to Transportation a n d that col lect ions over10000hall be spl i t 60 to Transportat ion and the rema in ing 40 to county wideurban revitalizationMMason votes NoMs Beard abstainsMotion carries 711

MEETINGADJOURNEDNancy W Morawsk iDeputy Clerk of Commiss ion

memorandum of understanding land bank authority

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