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HomeMy WebLinkAboutAgenda - 11-04-1996 - 9c r i ' ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 4, 1996 Action Agenda Item No. q'_C SUBJECT: Project Homestart Agreements DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) BUDGET AMENDMENT: (Y/1S) ATTACHMENT(S): INFORMATION CONTACT: N.C. Housing Finance Agreement,$ Albert T. Kittrell, Assistant County Manager OWASA Agreements ext. 2300 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To enter into agreements with Interfaith Council For Social Services regarding Project Homestart. BACKGROUND: On June 26, 1996 the County adopted a resolution entering into a lease with the Inter-Faith Council for Social Services for the construction of transitional housing (Project Home start) on County property located on Homestead Road. The IFC requests the County to sign a loan commitment letter from the North Carolina Housing Finance Agency. The Housing Finance Agency is loaning the IFC $150,000 for Project Home Start. The County Attorney has reviewed the loan commitment letter and determined the county must execute an estoppel and modification agreement. The attached agreement provides that the County will not evict the IFC from the leased premises without complying with the terms of the estoppel agreement and will accept a replacement tenant in the event the IFC defaults in its lease obligations. Also, the IFC requests the County to enter into an agreement which allows a temporary easement across County-owned property for an OWASA forcemain and pumping station that will serve Project Homestart. The IFC agrees to relocate, at its cost and expense,the forcemain and pump station when a gravity sewer system is available on adjacent property. The attached agreement has been reviewed by the County Attorney. 2 RECOMMENDATION(S): The manager recommends that the Board approve the attached agreements and authorized the Chair to sign. 3 NORTH CAROLINA ORANGE COUNTY THIS ESTOPPEL AND MODIFICATION AGREEMENT is made and entered into by and among ORANGE COUNTY, NORTH CAROLINA, a political subdivision of the State of North Carolina, herein "County, " INTERFAITH COUNCIL FOR SOCIAL SERVICE, INC. , a nonprofit corporation having its principal offices in the Town of Chapel Hill, North Carolina, herein "IFC, " and NORTH CAROLINA HOUSING FINANCE AGENCY, an agency of the State of North Carolina, herein "Agency. " W I T N E S S E T H WHEREAS, Agency has committed to loaning IFC $150,000, which loan will be secured by a deed of trust on IFC's leasehold interest in the property described in Exhibit A hereto, hereinafter "the Property; " WHEREAS, County is the owner of the Property and has leased it to IFC for 25 years in a Lease agreement recorded at Book Page of the Orange County Registry ( "the Lease" ) ; WHEREAS, one of the conditions of IFC receiving the loan from Agency is that County execute an estoppel and modification agreement acceptable to Agency which will further insure that the funds Agency loans to IFC will in the long run provide housing for homeless families with children and women with children who are victims of domestic violence. NOW, THEREFORE, County agrees with IFC and with Agency that: 1. The Lease is in full force and effect and IFC is not in default thereunder. 4 2 . County will not amend the Lease without Agency's prior written consent. 3 . County will send any notice of default under the Lease by IFC to Agency, and will not terminate the Lease because of such default until Agency has a reasonable time to cure the default. 4 . In the event IFC is in default under the Lease, County will not terminate the lease so long as Agency diligently proceeds to cure the default or forecloses its leasehold deed of trust, and upon such foreclosure, County will accept Agency as lessee under the Lease. County, IFC and Agency agree that if the interests of IFC shall be transferred to and owned by Agency by reason of foreclosure or other proceedings brought by Agency in lieu of or pursuant to a foreclosure, or by any other manner, and Agency succeeds to the interests of IFC under the lease, Agency shall be bound to County under all of the terms, covenants and conditions of the Lease for the balance of the term thereof remaining and any extensions or renewals thereof which may be effected in accordance with any option therefore in the Lease, with the same force and effect as if Agency were the tenant under the Lease, and Agency does hereby attorn to County as its landlord, said attornment to be effective and self operative immediately upon Agency succeeding to the interests of IFC under the Lease without the execution of any further instruments on the part of any of the parties hereto. The respective rights and obligations of Agency and County upon such attornment, to the extent of the then remaining balance of the term of the Lease and any extensions and 5 renewals, shall be and are the same as now set forth in the Lease, it being the intention of the parties for this purpose to incorporate the Lease in this agreement by reference with the same force and effect as if set forth herein. IN WITNESS WHEREOF, the parties have caused this instrument to be executed and their seals affixed, by their duly authorized agents and officers this the day of 1996. ORANGE COUNTY, NORTH CAROLINA By: _ Moses Carey, Jr. Chair Attest: [SEAL] Beverly A. Blythe, Clerk to the Board of Commissioners INTERFAITH COUNCIL FOR SOCIAL SERVICE, INC. By. President [CORPORATE SEAL] Attest: Secretary NORTH CAROLINA HOUSING FINANCE AGENCY BY= (SEAL) [SEAL] Director of Program Development NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day 6 and acknowledged that she is Clerk to the Board of Commissioners for Orange County and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by John M. Link, Jr. , the Orange County Manager, and attested by her as Clerk to said Board of Commissioners. Witness my hand and official stamp or seal, this the day of , 19 Notary Public My commission expires: [notary seal] NORTH CAROLINA ORANGE COUNTY I, a Notary Public in and for said County and State do certify that personally came before me this day and acknowledged that he is the Secretary of Interfaith Council for Social Service, Inc. , and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with .its corporate .seal, and attested by as its Secretary. Witness my hand and official stamp or seal, this the day of , 19 Notary Public My commission expires: [notary seal] NORTH CAROLINA ORANGE COUNTY I, a Notary Public in and for said County and State do certify that personally came before me this day and acknowledged that he is the Director of Program Development for the North Carolina Housing Finance Agency, that said writing was signed by him/her in behalf of said agency by its authority duly given and that said writing is the act and deed of said agency. Witness my hand and official stamp or seal, this the day of , 19 Notary Public My commission expires: [notary seal] lsg-6 ifc2.doc 8 STATE OF NORTH CAROLINA COUNTY OF ORANGE THIS AGREEMENT is made and entered into by and between INTERFAITH COUNCIL FOR SOCIAL SERVICE, INC. , a nonprofit corporation having its principal offices in the Town of Chapel Hill, North Carolina, herein "IFC, " and ORANGE COUNTY, NORTH CAROLINA, a political subdivision of the State of North Carolina, herein "County. " W I T N E S S E T H WHEREAS, County is the owner of that parcel of land referred to as PIN , which property is being leased to IFC for IFC's use as Project Home Start, a residential facility for homeless families having income of less than or equal to sixty percent (60%) of the Orange County median income and for women with children who are victims of domestic violence having incomes less than or equal to sixty percent (60%) of the Orange County median income, which parcel is herein referred to as the "Leased Property; " WHEREAS, the parties have entered into an agreement with the Orange Water and Sewer Authority, hereinafter "OWASA, " to provide the Property with OWASA sewer service via a 1,000 feet along forcemain together with a small pumping facility, all of which facilities will be located on County-owned property, some of which facilities will be located on the Leased Property and some of which facilities will be located on other County-owned property, as shown on the plat attached to the agreement among Orange County, IFC and OWASA; 9 WHEREAS, by this agreement, County and IFC wish to memorialize the temporary easement across County-owned property that will make the forcemain and pumping station that will serve the Leased Property feasible. NOW, THEREFORE, County and IFC understand and have agreed: 1. County shall permit the forcemain and related facilities (hereafter "the temporary system" ) to be constructed and operated on County-owned property- within the easement areas shown on the plat attached hereto. 2. IFC shall be responsible for obtaining the written consent of the owners of any other properties to be crossed by the temporary system, by way of easements or encroachment agreements, as well as all other licenses, permits or approvals required in order to locate, install, maintain, and operate the temporary system. 3. IFC shall hold County harmless and indemnify it from any loss, claim, damage, or expense, including the cost of defending any claim, arising out of the use of the temporary system. 4 . No connections or tap-ons or extensions to the temporary system will be allowed or made without the express written permission of County, and any connection or extension not approved in advance by County may be discontinued by County without notice to any party or any liability for consequential damages. IFC shall hold County harmless and indemnify it from any loss, claim, damage, or expense, including the cost of defending any claim, arising out of any unauthorized connection or extension or the removal of same by County. 10 5. All customary applicable fees and charges shall be paid by IFC to OWASA prior to any connection of the temporary system and for connection to a permanent OWASA system when it is available adjacent to the property. 6 . IFC agrees to make, in full compliance with all federal, State and local policies, laws, regulations and rules in effect at the time of connection, a sewer tap or connection to a gravity sewer alternative to the temporary system provided for herein within sixty (60) days after a gravity sewer alternative is available adjacent to the Property. IFC agrees to relocate, at its cost and expense, the forcemain portion of the temporary system within County-owned property if requested to do so by County,within six (6) months of County's request that the forcemain be relocated; provided, however, County agrees to make such a request only if the location of the temporary easement reasonably interferes with County's future development/use of the County-owned property. 7 . County shall have no obligation to inspect or maintain the temporary system but shall be permitted access to it at any time for the purpose of any inspection deemed necessary or convenient by County. 8. This agreement and all of its covenants and conditions shall be binding upon and shall inure to the benefit of the present parties as well as their successors, grantees and assigns, and shall be deemed covenants running with the land, so that all subsequent owners of the property shall be bound thereby and liable thereunder, as fully as if they had executed this agreement originally. 11 9 . In the event that any of the covenants and conditions to be kept and performed by IFC are not fully performed, County shall the right and privilege, after giving 30 days notice to the then owner or lessee of the property (where such notice will not delay more immediate action deemed to be necessary to protect the public health and welfare) , to disconnect the temporary system from the public sanitary sewer system of OWASA, until compliance is effected by the then owner of the temporary system. And, in that event, no party shall bring any action against County or seek any recovery or equity for County's . action in that effect, nor shall County be deemed liable to any party for damages alleged to have resulted from such disconnection, and the then record owner of the temporary system will indemnify and hold County harmless and indemnify it against any expense incurred in effecting said disconnection or defending itself or its actions in court. And, in that event, the then record owner of the temporary system shall be soley responsible for preventing the discharge of sewage onto any public or private property in any manner inconsistent with any public law or regulation. IN WITNESS WHEREOF, the parties have caused this instrument to be executed and their seal affixed, by their duly authorized agents and officers this the day of , 1996 . INTERFAITH COUNCIL FOR SOCIAL SERVICE, INC. By: President [CORPORATE SEAL] Attest: Secretary 12 ORANGE COUNTY, NORTH CAROLINA By: Moses Carey, Jr. Chair [SEAL] Attest: Beverly A. Blythe, Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY I, a Notary Public in and for said County and State do certify that personally came before me this day and acknowledged that he is the Secretary of Interfaith Council for Social Service, Inc. , and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by as its Secretary. Witness my hand and official stamp or seal, this the day of , 19 Notary Public My commission expires: [notary seal] NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day and acknowledged that she is Clerk' to the Board of Commissioners for Orange County and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by John M. Link, Jr. , the Orange County Manager, and attested by her as Clerk to said Board of Commissioners. 13 Witness my hand and official stamp or seal, this the day of , 19 Notary Public My commission expires: [notary seal] lsg-6 ifc.doc