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Home My WebLink AboutRES 96-157 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a contract with the National Development Council (NDC) for the redevelopment and renovation of the Hotel Beaumont as a non-profit, elderly residential facility. The contract is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the day Of `' — 1996. - Mayor - CONTRACT OF SERVICES BETWEEN THE NATIONAL DEVELOPMENT COUNCIL AND THE CITY OF BEAUMONT This agreement, entered into as of the day of , 1996 by and between the City of Beaumont(hereafter referred to as the "City") and the National Development Council, Inc., a not-for profit corporation organized and existing under the laws of the State of New York (hereinafter referred to as "NDC"). WITNESSETH: WHEREAS,the City is undertaking housing and economic development activities through the Community Development Department; and WHEREAS, the City has made the redevelopment of the Hotel Beaumont a priority; and WHEREAS,the City desires to engage NDC to render certain technical advice and development assistance in connection with such activities: NOW, THEREFORE,the parties hereto do mutually agree as follows: 1. Scope of Services: NDC shall perform all of the necessary services under this contract in connection with and respecting the Scope of Work that is attached and incorporated as part of the Contract. The City shall furnish the following aid, and information to NDC: a) Designation of staff to direct NDC carrying out its assistance, and to liaison with NDC. b) Reasonable technical data required by NDC. C) Predevelopment assistance, as appropriate. EXHIBIT "A" 2. Time of Performance: The services of NDC are to commence on and shall be undertaken and completed in such sequence as to assure their expeditious completion in the light of the purpose of this contract. 3. Compensation and Method Pa, ment: The City will pay NDC the amount of $5,400 per month for twelve months. The term of the contract may be extended by the mutual agreement of the City and NDC. Such sum will be paid in monthly installments which are subject to receipt of a requisition for payment from NDC certifying that NDC is entitled to receive the amount requisitioned under the terms of the Contract. The Contract may be cancelled upon 60 days written notice by either party. IN WITNESS WHEREOF,the City and NDC have executed this Agreement as of the date first above written. The City of Beaumont Attest: By. Title: The Nat' velo C it By: Robert W. D ort Title: President SCOPE OF WORK HOTEL BEAUMONT REDEVELOPMENT By: The National Development Council A. Redevelopment Activities - Hotel Beaumont The National Development Council (NDC) has undertaken a study to determine the feasibility of renovating the Hotel Beaumont facility in downtown Beaumont. It has determined that the project is feasible as a non profit, elderly residential facility, and it is prepared to undertake the development of the project. The project meets NDC's 501 (c)(3) mission in that it will preserve affordable housing in Beaumont, it will preserve and improve a historic structure in the community, and it will stimulate reinvestment in Beaumont's downtown core. Under this Scope of Services, NDC will commence development activities for the renovation and redevelopment of the Hotel Beaumont. NDC will carry out this activity through its 501 (c)(3) nonprofit housing affiliate, NDC Housing and Economic Development Corporation (HEDC), which will acquire and renovate the property. NDC will work closely with the City of Beaumont throughout the development process to insure that the redevelopment goals of the city are carried out. NDC will undertake all phases of the project, including: 1 THE NATIONAL DEVELOPMENT COUNCIL Finalizing development concept Establishing development team Performing additional financial due diligence Finalizing development budgets for construction and soft costs ► Finalizing HEDC ownership structure or limited partnership with HEDC as general partner, as appropriate Overview of design plans and specs Costing and bidding construction Securing debt and equity financing ► Project construction Project leasing Ongoing ownership NDC will bring together the public/private partnership necessary for the Hotel Beaumont redevelopment. NDC will require the assistance of the City of Beaumont throughout this process which shall include: Designation of a staff person to liaison with NDC on the project. Availability of pre-development funds, as appropriate, for third-party expenses such as market studies, environmental reports, etc. (See estimated pre-development budget, attached). 2 THE NATIONAL DEVELOPMENT COUNCIL ► Availability of financing assistance, if needed, to leverage conventional loans and equity. NDC shall apprise the City in the early phase of the development process on the best financial structure for the project, and all efforts will be carried out to secure maximum private sector participation in the financing of the Hotel Beaumont. B. General - Housing and Economic Development Technical Assistance In addition to the above, at the city's request NDC can provide general technical assistance and analysis to the City on its other development and business loan projects. This includes assisting in the evaluation of development proposals, analyzing financial projections, evaluating developer capacity, helping to negotiate the terms and conditions of development agreements, and structuring the financing for projects. 3 THE NATIONAL DEVELOPMENT COUNCIL . :::::::::::::::::....................... •,•• Yf�� t ....{vi:+•:i•}:{+'G:{•??:^::ti•...:,:r'•}v 4i�r:iYY'•}:::::.Q.?:':.a .:::}':hvn•{,{�t+ri..:}}'.v:w::.v..v:::::::::::::x:{{t4v:. '?,+.}}?::v:•?:•}}}}}}:4i}?:3?y:. ... .....'1r..•!{•�•. \.:::.t?. {2%:S%::: •. •:?%:{tivtiv:'v:%v,::%$:ivJ\.x-x:•kv::::•.{v:v:•: {vv::::is• ..........}........... ....vnvv::r:. nv,v-. :. n..t.. v..n.:..n.S:%?:?};.};:rti?•i�:•:ti>.%iii:.v,:;:F:•}}r•?:%}}:::-::\.::%::?•i:•:%?iy:: x::.•}:•}:n.. v....;t}:v'••w....:•.vv.:.v..:vw::}}v::n•}}`nvA?vt•.v:.v:.•'t::�:?}•:..........{.}vnv:•i..:}}:};}.}}•.vvx vv..:.tvx:.v.t8k::{nw:vv...�C•.:}::::::b::.v:wv:....::: ... y'f:.:'N:v'k4:v.. t....v :}:{4'.....2,:4}}vt. ..;\,r;...:::w•r nnY n..:vi::::{{>.:?.v. ::.v .r::;•::•{:i': ....;.. •}: -?:::-{.`,.{ ::vw:::'.?: :n}}:vv.{:.::.}:;}•:.}Y... 2..•?,.r-0}}•ryvv 4:vvti•:?n^x:::::::}:::r G:i:;{}:i.n}:.}?.{.:.2•h vv. ::i<%:2:;:22Gii.-i}:2•i:%:%ii:::>.<22:i:{:?%�'+<%>:%: ........:.v:::::::•.v:...............,..:•::•}:.}•:•.v:• ..v:::.vn.... ....... :..n:•:.•:{.::: :{:. :,{.::::n7�•:�v.}:v::::.t.;r{.::•?:•}x t:24::c;••`::i:,'•%}' 6/13/96 PROFESSIONAL FEES Market Study - (if required by TDHCA/lender) $5,000 Property audit - operatons $5,000 Appraisal $5,800 Property survey $2,000 Environmental report $5,400 Architectural Plans $20,000 Engineering report $2,500 Legal $2,500 Tax Credit structuring - optional, to be determined $7,500 Other Contingency 15% $8,355 Subtotal - Professional Fees $64,055 •}:q.::v:::::......:::.v.:.....:.. ...x:w::::r::.v:v:{::}.•}:•?:�?}:•}:•}:{{{{Sri•}}?:•?:•?:{.}•.v:::::.v::::.v::::::::w:::::............................. .:........................n....:.::.v::.......................::::::{:::::::::::::n:vv:�•:x:ii::i{{:?:•?:{ti2{.2}..ii:}i:?{?:;}i:}2{ii::}=riiii:vii ...:::.}:;:::::},v::x:.••:::::n:,•{:::^}:::n•:n::8::n}•.,;::.:nv.};:.::.v:.?w::n}�i:::.v:;;ri}:j}{{.i}}::::?:•}:{{L.?}:•}:•}}::}•?:•}:�:{.}}•:::::{:{ny::{::x:::;:::{.•:{:.: :..... .. ..... .. FINANCING FEES Agency ap lication fees (if applicabble) $4,500 Subtotal Financing fees $4,500 .............. ............... TOTAL ESTIMATED fPR•• EDEV•• ELOPM•ENT��BUDGETI�•• $68 655