Loading...
HomeMy WebLinkAboutAgenda - 04-07-2009 - 4kORANGE COUNTY BGARD aF C4NII~IISSIGNERS ACTION AGENDA ITEM[ ABSTRACT IUleetin~ Date: Apr'~l ?', 240.9 Action Agenda item Nv. ~- SUBJECT: Develo ment A reement Amendment --Habitat for Humanit , Inc. DEPARTI~ENT.~ HousinglGomm. Development PUBLIC HEARING: ~Y1N~ No ATTACHI~ENT~S}: Letter from Habitat for Humanity Agreement Amendment INFORMATIC3N CUNTACT: Tara L. Fikes, 2452494 PURPOSE: Ta consider approval of an amendment to the Development Agreement between Orange County and Habitat for Humanity of Grange County, NC, Inc. dated February 24, 2443 to revise the completion date from December 3~,, 24~ 4 to December 3~, 24~ 5 for the acquisition and develapment of property on Sunrise Road in Chapel Hill and .authorize the Manager to .execute the amendment upon approval of the County Attorney. BACKGRGUND: In December 2442, the Board of County Commissioners approved an allocation of $254,440 to Habitat for Humanity .of Orange County, NC Inc. ~HH~C} to assist in the acquisition of a ~ ?'-acre tract of land for the future development of affordable housing. County funds were allocated from the Housing Loan Trust Fund and available Community Development program Income. The total purchase price was $440,444. Can February 23, 2443, the County entered into a Development Agreement with HHC~C that required Habitat to submit a sound, site~specific development proposal for the property by June 30, 2445 with infrastructure construction to begin by September 34, 2445. HH~C informed County staff that it was unable to meet these target dates and on May ~~, 2445 the BCC approved an amendment to this Agreement modifying the target dates in accordance with HHCC's current develapment timetable. In late May 2005, the County approved a second amendment. It requires that to the extent the Development Application approved by the Chapel Hill Tawn Council is materially different from the proposal that was the basis for approval of the original Development Agreement, the Board of County Commissioners will be asked to approve the new design prior to the start of construction. In October 2446, Habitat reported that it had entered into an agreement with Regions Development LLC who planned to develop a 53-unit subdivision known as Bradley Ridge that would include lots for the planned 3~ houses to be built by Habitat. In February 2009, Habitat informed 'the County that due to current .financial market conditions, Regions Development LLC will not be constructing Bradley Ridge. As a result, Habitat is now asking for additional time to revise its development plans. Specifically, HHCJC is asking to z revise the completion date from December 31, 201 o to December 31, X01 ~. As additional information, the Afilordable Housing Advisory Baard has reviewed this request and recommends approval o~the requested extension. FINANCIAL IMPACT: None. RECaMMENDATIC3N~S~: The IVlanager recommends approval of an amendment to the Development Agreement between grange County and Habitat for Humanity o~ orange County, NC, Inc. dated February 2~, Z003 to revise the completion date from December 31, 2010 to December 31, 2415 for the acquisition and development o~ property on Sunrise Road in Chapel Hill and authorize the Manager to execute the amendment upon the review and approval o~ the County Attorney. ~"= ~ Habitat for Humanifiy Orange County, NC, Inc. ~ SZ9 E. Franklin S. #~ 2008 * Chapel Hill, NC 275 4 ~ ~9~ 9}932.7077, ~x ~9~ 9}932.1019 • info a~orangehabita~.org February ~, 2009 Tara Fikes, Director Hausing and Community Development P.C). Box 8 l 8 Hillsborough, NC 27278 RE: Amendment to Development Agreement for Sunrise Road property Dear Tara. Can behalf of Habitat for Humanity of Drange County ~HHaC} f am writing to request an amendment to the previously amended development agreement between Habitat and the County far $25D,DDD from the Orange County Housing Trust Fund for the acquisition of the l7 acre tract on Sunrise Road for the development of affordable housing. The original develapment agreement was dated February 24, 2003, and the amended develapment agreement is dated May l7, 2005. As you are aware, ~3UC partnered with Regions Development LLC, to develop Bradley Ridge, a subdivision of 63 single family homes, including 3l Habitat homes an our original l7 acre tract, and 32 market rate homes on an additional 20 acres. The Chapel Hill Town Council approved the preliminary plat for the Bradley Ridge Cluster Subdivision an February 25, 2DD8. Since receiving the approval last February, we have been in regular contact with Gary Wallace, who represents Regions LLC as the developer of Bradley Ridge. Because of the crisis in the financial markets, Mr. Wallace has been unable to secure financing to move ahead with the Zoning Compliance Permit process, and the subsequent infrastructure construction for Bradley Ridge. Mr. Wallace intended to go forward with the project when financing became available, and planned to renew his options on the properties under his control.. However, when one of the options expired at the end of 2D08, the property owner declined to renew his option with Mr. Wallace. As a result, Mr. Wallace has informed us that he has allowed his other options on the remaining properties to expire. This change in circumstances is beyond our or Mr. Wallace's control, and is of course extremely disappointing for Habitat. However, our Board feels that it is very important to hold onto our property on Sunrise Road for the future development of affordable homes, especially since land suitable for residential development is so scarce in Chapel Hill, and the need for affordable homes is so great. We respectfully request that the County modify the develapment agreement to delay the completion date for the first 25 homes, currently set at December 3 l., 20 f D, until December 31, 2D l 5. Given the uncertainties of the economy aiad the availability of financing, such an extension will allow Habitat time to revise our plans and deterr~.ine the best way to provide much needed affordable housing on the Sunrise Road property. 4 , as well as members of our Board of ]hectors, would be happy to discuss this further with you, the County N~anager, andlor members of the Board of County Commissioners. Sincerely, Susan Levy Executive Director 93Z-7077x21 slev cx~ara~~~el~~bitat.o~•a cc: Nutt wiiliamson, President, Baard of Directors NGRT:~ CAR.GLINA ~ ... GRANGE CGUNTY A~ENDIVIENT TU DEVELC~PNIENT AGREEMENT This is an amendment to the February 24, 2003 AGREEN~ENT ~"the Tevelopment Agreement"} between [}RANGE COUNTY, a general local governmental unit of the State of North Carolina, thereinafter referred to as "Caunty" or "the County"} and ~ HABITAT FC~R. ~IUNIA.NITY OF aI2ANGE CCIUNTY, NC, INC., a North Carolina nonprofit housing organization thereinafter referred to as "Habitat"}. The effective date of this amendment is lay 17, Zoos. wITNESSET~I WHEREAS, the Caunty and f3abitat entered into a Development Agreement dated February 24, 2403 for the acquisition of a 17. 7-acre parcel of land on Sunrise Road, Chapel Hill, NC by Habitat for future housing development; and WHEREAS, :habitat has requested that the performance dates in the original Agreement be amended due to a modified housing development schedule; NGW, TI3ERF,FGRE, in consideration of the mutual covenants, promises and representations contained herein, it is agreed between the parties hereto that all of the terms and conditions of the Development Agreement are herein reaffirmed and incorporated herein by reference and amended as follows: 1. paragraph 3 of the Development Agreement is rewritten to read as follows: f3abitat must submit a sound, site-specific development proposal for developing the property by December 2410 (was December 2~~5). At that time, Habitat must provide evidence that the surrounding community has been involved in development plans. Actual infrastructure construction must begin by January 2013 (was January ~'S, 2008). I3abitat will be responsible for providing status reports to the County quarterly detailing the project activities until project completion beginning in January 2006. n addition, Habitat agrees to furnish to the Caunty a copy of its annual audit, performed by a certified public accountant within 9a days of the end of each fiscal year until the Project ~s comp ete. The project completion date is the closing date of the purchase by a qualified buyer of the last of the twenty-five units to be constructed for first time homebuyers or December 31, 2015 was December 3~', 20.0) whichever is earlier. n the event that Habitat is unable to proceed with any aspect of the project in a timely manner, and Caunty and 3abitat determine that reasonable extensions} for completion will,. not remedy the situation, then the Termination of Agreement provisions of this Agreement Section 6.a.} shall pertain. I3abitat may, at its ~aptian, submit a written request for a delay of completion for County approval, The County rn.ay, at its option, approve any delay in the completion date or declare Habitat in default. f3abitat shah monitor the constructed units for affordability for the period of affordability ninety-nine X99}years. Final contract completion date shall be the latest end date of all assisted unit affordability periods. IN w~TNESS w~::~REOF`, the parties hereto, intending to be legally bound, have set their hands and sews on the day and year frst above written. CUIJNTY []F [IRAN~~, NClRTI3 CAR~]~INA Laura E. Blackmon, County Manager ATTEST: __ Donna Baker Clerk to the Board of Commissioners Approved as to form and legality Geoffrey Gledhill, County Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. Gary ~u~nphrey, Finance Director Hab~ta~ for ~Iun~anlty of grange Couu.ty, NC, Inc. President ATTEST: ,Secretary