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Agenda 04-01-08 ~~~<tY~T2~ eRA Ii East Side-West Side- Seaside Renaissance If any person decides to appeal any decision made by the Board with respect to any matter considered at this meeting, he or she will need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Special Meeting of the eRA Board Tuesday, Aprill, 2008 City Commission Chambers 5:45 PM I. Call to Order - Chairman Jerry Taylor II. Pledge to the Flag and Invocation III. Roll Call IV. Consideration of Assignment of Purchase and Sale Agreement from Ocean Breeze, LLC to Madison Breeze, LLC V. Consideration of Grant to Madison Breeze, LLC VI. Consideration of Addendum to Purchase and Sale Agreement between the CRA and Madison Breeze, LLC V. Adjournment OCEANBREEZE, LLC 615 CRESCENT ExECUTIVE COURT, SUITE 120 LAKE MARY, FLORIDA 32746 TEL: (407) 333-1440 F N<: (407) 333-1340 r-- March 31, 2008 Chairman Jerry Taylor Boynton Beach Community Redevelopment Agency 915 S. Federal Highway Boynton Beach, FL 33435 Re: Assignment of Purchase and Sale Agreement Dear Chairman Taylor: This letter requests the approval of the assignment of the Purchase and Sale Agreement ("PSA") between Boynton Beach Community Redevelopment Agency rCRA") and Oceanbreeze, LLC dated January 24, 2008 for the purchase of 4.39 acres of land to Madison Breeze, LLC. The subject property is to be developed with the proposed Seabreeze apartments, an 84 unit affordable housing development. ,r-. Madison Breeze, LLC is a single-asset entity formed by the principals of Oceanbreeze, LLC to comply with IRS Section 42 and such that the proposed development would be eligible to receive an allocation of Housing Credits which will be a principal source of funding for the proposed development. Oceanbreeze, LLC intends to assign its rights, subject to the approval of the CRA per the terms of the PSA, to Madison Breeze, LLC for the purpose of submitting an application to the Florida Housing Finance Corporation for Housing Credits in the Universal Cycle Application. Respectfully. 0- c:?- Oceanbreeze, LLC ",....... 1!~~<!Y~T2~ eRA . East Side-West S'lde-Seaside Renaissance eRA SPEeIAL BOARD MEETING OF: Aprill,2008 I Consent Agenda I Old Business I X I New Business I I Public Hearing I I Other SUBJECT: Consideration of Assignment of Purchase and Sale Agreement from Ocean Breeze, LLC to Madison Breeze, LLC SUMMARY: At the October 9,2007 CRA Board meeting, the Board unanimously voted to select the proposal submitted by American Realty to develop the Ocean Breeze site. American's proposal included townhomes on the west side of Seacrest and rental apartments on the east side. American Realty is requesting an assignment of the Purchase Agreement between the CRA and Ocean Breeze LLC to Madison Breeze, LLC for the purpose of applying to the State of Florida for an allocation of federal low-income tax credits for the rental portion of the project. If awarded, the tax credits will be sold in the market to provide the necessary equity to develop and operate the project. Per IRS regulations, tax credits must be awarded to a single asset entity. FISCAL IMPACT: None CRA PLAN, PROGRAM or PROJECT: Heart of Boynton Community Redevelopment Plan RECOMMENDATIONS: Approve the Assignment of Purchase and Sale Agreement from Ocean Breeze, LLC to Madison Breeze, LLC. cdL4L Assistant Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2007 - 2008 Board Meetings\08 04 01 CRA SPECIAL MEETING OB\Assignment of Contract. doc '. IN WITNESS WHEREOF, the parties hereto have executed this Assignment of Purchase and Sale Agreement on the date fIrst written above. Assignor: OCEANBREEZE, LLC, a Florida limited liability company By: Todd L. Borck, Manager Assignee: MADISON BREEZE, LLC, a Florida limited liability company By: Madison Breeze Apartments, LLC, a Florida limited liability company, its managing member By: Todd L. Borck, Manager SELLER'S CONSENT TO ASSIGNMENT: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY By: Jerry Taylor, Chairperson Dated: April ,2008. 20f3 OCEANBREEZE, LLC 615 CRESCENT ExECUTNE COURT, SUITE 120 LAKE MARY, FLORIDA 32746 TEL: (407) 333-1440 F N<: (407) 333-1340 r-- March 31, 2008 Chairman Jerry Taylor Boynton Beach Community Redevelopment Agency 915 S. Federal Highway Boynton Beach, FL 33435 Re: Assignment of Purchase and Sale Agreement Dear Chairman Taylor: This letter requests the approval of the assignment of the Purchase and Sale Agreement ("PSA") between Boynton Beach Community Redevelopment Agency rCRA") and Oceanbreeze, LLC dated January 24, 2008 for the purchase of 4.39 acres of land to Madison Breeze, LLC. The subject property is to be developed with the proposed Seabreeze apartments, an 84 unit affordable housing development. ,r-. Madison Breeze, LLC is a single-asset entity formed by the principals of Oceanbreeze, LLC to comply with IRS Section 42 and such that the proposed development would be eligible to receive an allocation of Housing Credits which will be a principal source of funding for the proposed development. Oceanbreeze, LLC intends to assign its rights, subject to the approval of the CRA per the terms of the PSA, to Madison Breeze, LLC for the purpose of submitting an application to the Florida Housing Finance Corporation for Housing Credits in the Universal Cycle Application. Respectfully, 0- c:? Oceanbreeze, LLC ",....... 2008 UNIVERSAL CYCLE - WCAL GOVERNMENT VERIFICATION OFCONrRlBunON-GRANT Name ofDevelopmemSeob1'C<:ZC 100 N. Seaaest Av<m1C. &ynlon Bead1, Florida 3343S Development Locatioo: (At. mioiaa=. provide die acIdlas aslis=S by tho UaiJOd 5_ Pocta1 SeMce. iacIudiag!be 1IdcIress DlJIDber. Sln:ct"""", ODd city, or iflhe address has_J<t '*a aslis=d. provide "'" _-. eIos.stdcsiguated ~ aud city) Onofbefore f)lf.e' b..o1J6 tl1t:CitylCountyof ~trJv\~\.. etA committed Dab: dd/yyyJ) (N of City ... Cowtty) s;loo If'no as a grant to the Applicanl. for its USe solely for assisting the proposed Development n:fere.oced above. The City/Cowty does not expect to be repaid or reimbursed by the Applicant, or any other entity, prcn..ided the fimds are expended sOlely for the Development referenced above. No consideration or promise of consideration has been given with respect to the granl For purposes of the foregoing. the promise of providing affordable housing does not constitute consideration. This grant is provided specifically with respect to the proposed Development. LJ 4J. . I The sonrc:e of the grant is: f!- ~ If- 1 A1rltJ . (e.g., SHIP. HOME. CDBG) CERTIFICATION I certify that the foregoing information is true and correct and that this commitment is effective through Date (mmidd/yyyy) ...-s-~ ~~o('} or Type e ~6.1 {' J C~B- Print or Type Title Signature Date (mmlddIyyyy) QuI- "j"j~5fD Telephone Nwnber This eatificalion must be signed by the chic! appointed offieial (slaf!) responsible for such approvals, Mayor, City Manager, CDunty Manager IAdministnlotfCoordinator. Chairperson of the City Couoci1/CDmmissWn or Chairperson of the &an1 of CDunty Commissionen. If the coDlJ:ibutioa is from a Land Authority 0I'glIIIizcd pmsuaot to Chapter 380.0663, Florida Statutes, Ibis =ti1ic:ation must be signed by the Chir of the l.aDd Authority. One of th..lIIl1hari=\ pasons named above may sign this form fur catification of state, :fed<:raI or Local Govcmment funds iniIia1ly obtained by or derived from a Loea1 Gove:mm<:nt that is dim:tIy administered by an inlclmediary such as a housing finance a1llbority. . COmmwDty mnveslmcnt c:oq>ontiou, or a statc-cc:mfied Community Housing Dc:velopment Orgaoizalioa (CHDO). Other .;ptorles .... not """"Pfahl... The Applicant will DOt recc:ive aalit for this c:oDlrihutioa if the certification is impropedy signed. To be e<>asidered for points, thc amount ofthc COIllributillll stated on Ibis form must be a precise dollar amount and cannot include words such as estimaled, up to, maximum of; not to exceed, eb:.. This contributioa will not be considered and the Applieatioa will fait tbn:shold if the eatificatiOD coulains corrections or 'wbit.e-out' or if the certification is scanned, imaged, altered, or retyped. n., eatifieation may be photocopied. The Application may still be eligtble for aulomatic points. UAl016 (Rev. 3-Oll) li74OOl(1)W; 67.,21.lIlIl(lJ(o). FAC. Exlubit_ eRA SPEeIAL BOARD MEETING OF: Aprill,2008 I Consent Agenda I Old Business I X I New Business I I Public Hearing Other SUBJECT: Consideration of Grant to Madison Breeze, LLC SUMMARY: American Realty is applying to the State of Florida for an allocation of federal low- income housing tax credits to develop the rental portion of the Ocean Breeze site. The State requires a match from local government of at least $200,000. American Realty, managing partner of Madison Breeze, LLC is requesting a grant of $200,000 from the CRA to meet the State's requirement. The attached Florida Housing Financing form verifies the CRA's willingness to grant the funds to the project. FISCAL IMP ACT: $200,000 from the CRA's 2008/2009 budget subject to Madison Breeze, LLC being awarded a tax credit allocation. CRA PLAN, PROGRAM or PROJECT: Heart of Boynton Community Redevelopment Plan RECOMMENDATIONS: Approve the grant to Madison Breeze, LLC subject to Madison Breeze being awarded an allocation of federal low-income housing tax credits in the 2008 Universal Cycle. ~fi-- Vivian L. Bro ks Assistant Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2007 - 2008 Board Meetings\08 04 01 CRA SPECIAL MEETING OB\Grant to American.doc ,,"\ 1!~~<!Y~T2~ eRA . East Side-West S'lde-Seas'lde Renaissance eRA SPEeIAL BOARD MEETING OF: Aprill,2008 I I Consent Agenda I I Old Business I X I New Business Public Hearing I I Other SUBJECT: Consideration of Addendum to Purchase and Sale Agreement between the CRA and Madison Breeze, LLC SUMMARY: American Realty is applying to the State of Florida for an allocation of federal low- income housing tax credits to develop the rental portion of the Ocean Breeze site. The State requires a match from local government of at least $200,000. American Realty, managing partner of Madison Breeze, LLC is requesting a grant of $200,000 from the CRA to meet the State's requirement. The attached First Amendment to the Purchase and Sale Agreement dated January 24, 2008 outlines the CRA's and Madison's obligations relative to the $200,000 grant from the CRA to Madison Breeze, LLC. The CRA agrees to pay $200,000 to Madison Breeze subject to the following: · Madison receiving funding from Florida Housing Finance · Closing on the property · Madison obtaining a building permit for the site · American Realty contributing $200,000 to a down payment assistance program for future tenants. FISCAL IMP ACT: $200,000 from the CRA's 2008/2009 budget subject to the conditions stated above. CRA PLAN, PROGRAM or PROJECT: Heart of Boynton Community Redevelopment Plan RECOMMENDATIONS: Approve the First Amendment to Purchase and Sale Agreement between the CRA and Madison Breeze, LLC. ~ Assistant Director T:\AGENDAS, CONSENT AGENDAS, MONTHLY REPORTS\Completed Agenda Item Request Forms by Meeting\FY 2007 - 2008 Board Meetings\08 04 01 CRA SPECIAL MEETING OB\Amend to PA American.doc FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT THIS FIRST AMENDMENT serves to amend and modify that certain Purchase and Sale Agreement dated January 24,2008 (hereinafter the Purchase and Sale Agreement") entered into by and between the Boynton Beach Community Redevelopment Agency, a Florida public body corporate and politic created pursuant to Section 163.356 F.S., (the "Seller") and Madison Breeze, LLC, a Florida limited liability company (the "Purchaser") for purchase of 4.39 acres of land as more particularly described in Exhibit A to develop an 84 unit affordable rental housing to be known as Seabreeze Apartments (the "Property"). WHEREAS, Section 5(a) of the Purchase and Sale Agreement refers to Purchaser's obligation to obtain a tax credit allocation from the Florida Housing Finance Corporation, Purchaser has requested Seller to incorporate additional provisions to the Purchase and Sale Agreement to allow Purchaser to meet this contingency; WHEREAS, this multi-family affordable housing project must be developed in accordance with the requirements of the Federal Low Income Housing Tax Credits program and/or the Florida Housing Finance Corporation; NOW therefore, in consideration of the foregoing premises, mutual covenants and conditions herein contained, the parties hereto agree as follows: 1. The following sub-paragraph (c) shall be added at the end of Section 5 of the Purchase and Sale Agreement as follows: (c) Seller agrees to cooperate with Purchaser's efforts to obtain the necessary tax credit allocation for the development of the rental housing project. Purchaser shall provide in a timely manner any additional information that may be required by the Florida Housing Finance Corporation and comply with any and all program requirements in connection with the Housing Credit Program. 2. The following paragraph shall be incorporated into the Purchase and Sale Agreement as Section 26 and it shall read as follows: Section 26. Grant Contribution. Seller agrees to make a grant contribution to Purchaser in an amount determined by the Seller, provided that Purchaser satisfies the following conditions: a) Purchaser obtaining satisfactory funding from the Florida Housing Finance Corporation; b) Purchaser and Seller closing the transaction in accordance with the terms of the Purchase and Sale Agreement; c) Purchaser obtaining building permits from the City of Boynton Beach to allow for the construction of 84 units of affordable rentals; d) American Realty Development, LLC contributing not less than $200,000.00 to pre- fund the Down-payment Assistance Program. All of the provisions set forth in Section 26 shall survive closing. 3. American Realty Development, LLC agrees to become a Party to the Purchase and Sale Agreement and this First Amendment solely for the purpose of obligating itself to perform in accordance with the terms of Section 26 incorporated into the Purchase and Sale Agreement pursuant to this First Amendment. All of the terms and provisions of the Purchase and Sale Agreement, not otherwise amended or modified hereby shall remain in full force and effect. In the event of any conflict between the terms and provisions of the Purchase and Sale Agreement and this First Amendment, the terms and provisions of this First Amendment shall control and prevail. SELLER: Boynton Beach Community Redevelopment Agency PURCHASER: Madison Breeze, LLC, a Florida limited liability company By: Madison Breeze Apartments, LLC, Its managing member By: Jerry Taylor, Chairperson By: Todd L. Borck, Manager AMERICAN REALTY DEVELOPMENT, LLC By: Todd L. Borck, Manager EXHmIT A LEGAL DESCRIPTION LOTS 1 THROUGH 12, INCLUSIVE, BLOCK 1, PALM BEACH COUNTRY CLUB ESTATES, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 11, PAGE 43, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, AND THE SOUTH HALF OF THE EAST HALF OF LOT 2, SUBDIVISION OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SECTION 21, TOWNSHIP 45 SOUTH, RANGE 43 EAST, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 1, PAGE 4, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA, LESS THE SOUTH 125 FEET, THEREOF AND LESS THE RIGHT OF WAY FOR SEACREST BOULEVARD AS SHOWN ON ROAD PLAT BOOK 5, PAGE 182, PUBLIC RECORDS OF PALM BEACH COUNTY, FLORIDA. H:\2007\070685\08-03-28 First Amendment to PSA.doc