Loading...
HomeMy WebLinkAboutRES 10-091 RESOLUTION NO. 10-091 WHEREAS, on May 8, 2007, City Council approved Resolution No. 07-132 authorizing the execution of a conditional funding commitment in the amount of$164,000 with ITEX Property Management, LLC (hereinafter referred to as "ITEX"), for the rehabilitation of the Sunlight Manor Apartments at Washington and 8th Street; and WHEREAS, the funding was provided in the form of a construction loan to ensure that the project was funded through the State's Low Income Housing Tax Credit Program; and WHEREAS, ITEX now seeks approval of an estoppel document in the form of a contract amendment to facilitate conversion to a traditional loan; NOW, THEREFORE, 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 amendment to the existing contract with ITEX Property Management, LLC, for the Sunlight Manor Apartments project. The amendment is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes, PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of April, 2010. j - Mayor Becky Ames - i Sunlight Manor, LP 3735 Honeywood Court Port Arthur, TX 77642 March 24,2010 Hudson Housing Capital LLC 630 Fifth Ave,28th floor New York,NY 10111 Attn:Joseph Macari Bocarsly Emden Cowan Esmail Parker&Arndt LLP 7200 Wisconsin Ave,Suite 900 Bethesda,MD 20814 Attn: Craig Emden RE: Sunlight Manor Apartments in Beaumont,Texas Ladies and Gentlemen: The undersigned entered into a certain Loan Agreement (the"Loan Agreement") on June 2, 2008 for HOME Loan funds for the Sunlight Manor Apartments (the "Project'). This letter agreement(this"Agreement") is made and entered into effective as of the date herein set forth by and among Sunlight Manor, LP, a Texas limited partnership (the "Owner") and the City of ! Beaumont(the"City"). Owner owns and controls the Project. Hudson Sunlight Manor LLC and Hudson SLP LLC (together, along with Hudson Housing Capital LLC, the "Investor") have acquired an ownership interest in Owner and will be relying on this estoppel certificate in connection with the conversion of a permanent loan to Capital One,National Association. All initially capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Loan Agreement. To City's and Owner's knowledge, without inquiry,parties hereby certify to Investor, as follows: 1. The Loan Agreement hasn't been amended or modified since the execution thereof. 2. Neither Owner nor City is in breach, violation or default under any term or provision of the Loan Agreement and no circumstance has occurred or is continuing which,with the passage of time or the giving of notice, or both, would constitute a breach, violation or default under the Loan Agreement. 3. As of the date hereof, City has not instituted an action at law or in equity against the Owner. 1375071.1/005130.000023 EXHIBIT "A" 4. No action has been taken that would have a material, adverse effect on any rights or privileges,if any,granted to the City or granted to the Owner under the Loan Agreement. 5. No demand has been made by or on behalf of City. 6. City has the full right, power, and authority to execute and deliver this Agreement. 7. At the request of the Investor,this Agreement is being executed and delivered by City with the intent and understanding that the above statements will be relied upon by Investor and its respective successors and assigns. 8. This Agreement is made for the sole benefit of Investor and its successors and assigns, and, except as expressly permitted below in this paragraph, no other person or persons shall have any rights or remedies under or by reason of this Agreement or any right to the exercise of any right or power of Investor, hereunder. Notwithstanding the foregoing, the City recognizes that Investor may show copies of this Agreement to other persons or entities who are participants, assignees or transferees or successors having interest in the Project and City agrees that such other persons or entities may also materially rely upon the representations, warranties, certifications and agreements made by City in this Agreement. 9. The parties hereunder represent and warrant that: (i) the persons executing this Agreement are duly authorized to execute and deliver the same on behalf of Owner and of City; (ii) Owner has taken such formal action of its governing body as may be required by law to bind City and that City is formally bound to the provisions of this Agreement; and (iii) entering into this Agreement does not violate any provision of any other agreement to which Owner is bound. This Agreement shall be binding on Owner and its successors and assigns and shall inure to your benefit and the benefit of your successors and assigns. Very truly yours, �. SUNLIGHT MANOR, LP,A Texas limited partnership By: Sunlight Manor GP, LLC,a Texas limited liability company,its general partner By: ITEX Partners,LLC,a Texas limited liability company,its sole member By: The ITEX Group, L C a Texas ! limi 1 ity y,its member By: K. T.Akbari, s anager and Member 1375071.1/005130.000023 - 2 - THE CITY OF BEAUMONT By: Name: ' Title: ATTEST: f 1375071.11005130.000023 - 3 -