Title
Resolution to Approve Funding for Maple Tower and River Run Developments
Memorandum
The Ann Arbor Housing Commission (AAHC) has been approved by HUD to convert its properties to project based vouchers under the Rental Assistance Demonstration (RAD) program. The AAHC has secured public and private funding to rehabilitate its properties at Miller Manor and Maple Meadows (Maple Towers); and Baker Commons, Green-Baxter Court and Hikone (River Run).
The AAHC formed a Michigan limited liability company, Maple Tower Ann Arbor, LLC on July 9, 2013, and pursuant to its Operating Agreement executed on July 10, 2013, the AAHC is its sole Managing Member. This entity, Maple Tower Ann Arbor, LLC was formed for the sole purpose of becoming the General Partner in the Maple Tower Ann Arbor Limited Dividend Housing Association Limited Partnership (the "Maple Tower Partnership").
The AAHC formed a Michigan limited partnership, Maple Tower Partnership with Maple Tower Ann Arbor, LLC as the General Partner and the Commission as the Initial Limited Partner, by execution of a Certificate of Limited Partnership dated July 10, 2013 and a Limited Partnership Agreement dated July 10, 2013 to acquire, develop, finance, own, maintain, operate or otherwise redevelop property located at 727 Miller Avenue and 800-890 S. Maple to provide 135 units of affordable housing to be known as the Maple Tower Development in Ann Arbor, Michigan ("the Maple Tower Development").
The AAHC formed a Michigan limited liability company, River Run Ann Arbor, LLC on July 9, 2013, and pursuant to its Operating Agreement executed on July 10, 2013, the Commission is its sole Managing Member. This entity, River Run Ann Arbor, LLC was formed for the sole purpose of becoming the General Partner in the River Run Ann Arbor Limited Dividend Housing Association Limited Partnership (the "River Run Partnership").
The AAHC formed a Michigan limited partnership, River Run Partnership with River Run Ann Arbor, LLC as the General Partner and the Commission as the Initial Limited Partner, by execution of a Certificate of Limited Partnership dated July 10, 2013 and a Limited Partnership Agreement dated July 10, 2013 to acquire, develop, finance, own, maintain, operate or otherwise redevelop property located at 106 Packard, 2742 Packard (aka 2706-2760 Hikone) and 1701-1747 Green Rd. to provide 116 units of affordable housing to be known as the River Run Development in Ann Arbor, Michigan ("the River Run Development").
On April 2, 2014, the AAHC received a commitment for a grant in the amount of Nine Hundred Thousand and 00/100 ($900,000.00) from the Ann Arbor Downtown Development Authority (the "DDA Funds"), which it intends to loan at a one percent interest rate (1% interest) to the River Run Partnership.
On April 21, 2014, the Ann Arbor City Council approved a transfer of funding from the Ann Arbor Housing Trust Fund (the "AAHTF Funds") of Six Hundred Thousand and 00/100 ($600,000.00), which increased the amount of funds to be received from the AAHTF to a total of Eight Hundred Thousand and 00/100 Dollars ($800,000.00), which it intends to loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships for the River Run and/or Maple Tower Developments.
The County of Washtenaw ("County") approved a grant from its Community Development Block Grant funds (the "County CDBG Funds") in the amount of Four Hundred Forty-Six Thousand five Hundred Ninety-Tow and 00/100 Dollars ($446,592.00), which it intends to loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships for the River Run and/or Maple Tower Developments.
The AAHC has committed One Hundred Twenty-Five Thousand and 00/100 Dollars ($125,000.00) to the River Run Partnership and One Hundred Twenty-Five Thousand and 00/100 Dollars ($125,000.00) (the "Commission Discretionary Funds") to the Maple Tower Partnership, which will be in the form of a Contingent Loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships respectively for the River Run and/or Maple Tower Developments respectively.
The AAHC has filed an insurance claim for a fire, which occurred on January 8, 2014 at the Green-Baxter development, part of the River Run Development, which building has been destroyed by this fire. Preliminary discussions with the insurance company have determined that a settlement covering emergency repairs, demolition and asbestos removal/remediation and rebuilding in the approximate amount of Six to Eight Hundred Thousand and 00/100 Dollars ($600,000-800,000.00) (the "Green Rd. Insurance Proceeds") should be forthcoming, and the Commission intends to contribute these dollars to the River Run Partnership for the River Run Development; and
Staff
Prepared and Approved by Jennifer Hall, Executive Director
Body
WHEREAS, the Commission formed a Michigan limited liability company, the Maple Tower Ann Arbor, LLC on July 9, 2013, and pursuant to its Operating Agreement executed on July 10, 2013,the Commission is its sole Managing Member. This entity, Maple Tower Ann Arbor, LLC was formed for the sole purpose of becoming the General Partner in the Maple Tower Ann Arbor Limited Dividend Housing Association Limited Partnership (the "Maple Tower Partnership"); and
WHEREAS, the Commission formed a Michigan limited partnership, the Maple Tower Partnership with Maple Tower Ann Arbor, LLC as the General Partner and the Commission as the Initial Limited Partner, by execution of a Certificate of Limited Partnership dated July 10, 2013 and a Limited Partnership Agreement dated July 10, 2013 to acquire, develop, finance, own, maintain, operate or otherwise redevelop property located at 727 Miller Avenue and 800-890 S. Maple to provide 135 units of affordable housing to be known as the Maple Tower Development in Ann Arbor, Michigan ("the Maple Tower Development"); and
WHEREAS, the Commission formed a Michigan limited liability company, the River Run Ann Arbor, LLC on July 9, 2013, and pursuant to its Operating Agreement executed on July 10, 2013,the Commission is its sole Managing Member. This entity, River Run Ann Arbor, LLC was formed for the sole purpose of becoming the General Partner in the River Run Ann Arbor Limited Dividend Housing Association Limited Partnership (the "River Run Partnership"); and
WHEREAS, the Commission formed a Michigan limited partnership, the River Run Partnership with River Run Ann Arbor, LLC as the General Partner and the Commission as the Initial Limited Partner, by execution of a Certificate of Limited Partnership dated July 10, 2013 and a Limited Partnership Agreement dated July 10, 2013 to acquire, develop, finance, own, maintain, operate or otherwise redevelop property located at 106 Packard, 2742 Packard (aka 2706-2760 Hikone) and 1701-1747 Green Rd. to provide 116 units of affordable housing to be known as the River Run Development in Ann Arbor, Michigan ("the River Run Development"); and
WHEREAS, on April 2, 2014, the Commission received a commitment for grant in the amount of Nine Hundred Thousand and 00/100 ($900,000.00) from the Ann Arbor Downtown Development Authority (the "DDA Funds"), which it intends to loan at a one percent interest rate (1% interest) to the River Run Partnership; and
WHEREAS, on April 21, 2014, the Ann Arbor City Council approved a transfer of funding from the Ann Arbor Housing Trust Fund (the "AAHTF Funds") of Six Hundred Thousand and 00/100 ($600,000.00), which increased the amount of funds to be received from the AAHTF to a total of Eight Hundred Thousand and 00/100 Dollars ($800,000.00), which it intends to loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships for the River Run and/or Maple Tower Developments; and
WHEREAS, the County of Washtenaw ("County") approved a grant from its Community Development Block Grant funds (the "County CDBG Funds") in the amount of Four Hundred Forty-Six Thousand five Hundred Ninety-Tow and 00/100 Dollars ($446,592.00), which it intends to loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships for the River Run and/or Maple Tower Developments; and
WHEREAS, the Commission has discretionary funds, of which it has committed One Hundred Twenty-Five Thousand and 00/100 Dollars ($125,000.00) to the River Run Partnership and One Hundred Twenty-Five Thousand and 00/100 Dollars ($125,000.00) (the "Commission Discretionary Funds") to the Maple Tower Partnership, which will be in the form of a Contingent Loan at a one percent interest rate (1% interest) to the River Run and/or Maple Tower Partnerships respectively for the River Run and/or Maple Tower Developments respectively; and
WHEREAS, the Commission has filed an insurance claim for a fire, which occurred on January 8, 2014 at the Green-Baxter development, part of the River Run Development, which building has been destroyed by this fire. Preliminary discussions with the insurance company have determined that a settlement covering emergency repairs, demolition and asbestos removal/remediation and rebuilding in the approximate amount of Six to Eight Hundred Thousand and 00/100 Dollars ($600,000-800,000.00) (the "Green Rd. Insurance Proceeds") should be forthcoming, and the Commission intends to contribute these dollars to the River Run Partnership for the River Run Development; and
RESOLVED, that the Commission has authorized the DDA Funds to be contributed as a loan at 1% interest to the River Run Partnership for the River Run Development; and
RESOLVED, that the Commission has authorized the AAHTF Funds to be contributed as loans at 1% interest to the Maple Tower and/or River Run Partnerships for the Maple Tower and/or River Run Developments; and
RESOLVED, that the Commission has authorized the County CDBG Funds to be contributed as loans at 1% interest to the Maple Tower and/or River Run Partnerships for the Maple Tower and/or River Run Developments; and
RESOLVED, that the Commission has authorized the Commission Discretionary Funds to be contributed as contingency loans to the Maple Tower and/or River Run Partnerships for the Maple Tower and/or River Run Developments; and
RESOLVED, that the Commission has authorized the Green-Baxter Court Insurance Proceeds to be contributed as a capital contribution or a loan to the River Run Partnership for the River Run Development, specifically at 1727 Green Rd, for its redevelopment; and
RESOLVED, that any prior actions taken by any one of the Officers of the Commission, or by its Executive Director with regard to the foregoing matters is hereby ratified and affirmed by the Directors of the Commission; and
RESOLVED that the Commission hereby authorizes Jennifer Hall as Executive Director to execute any appropriate contracts, agreements, or other loan documents necessary to memorialize the above-referenced loans and to conduct the business of developing and constructing the Project; and
RESOLVED that the foregoing resolutions are in conformity with organizational documents, statutes, and charter provision legal requirements of the Commission the and that there are no provisions in organizational documents, statutes, and charter provision legal requirements limiting the authority of the designated Board of Directors to adopt the foregoing resolutions.