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HomeMy WebLinkAboutPACKET AUG 13 2013 R1Cfl W1714 011i•014ti %19 1 BEA,UMON REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS AUGUST 13,2013 1:30 P.M. CONSENT AGENDA * Approval of minutes—August 6, 2013 * Confirmation of committee appointments Dana L. Timaeus would be reappointed to the Board of Adjustment (Zoning). The current term would expire May 12, 2015. (Mayor Becky Ames) Joey Hilliard would be reappointed to the Board of Adjustment (Zoning). The current term would expire February 17, 2015. (Mayor Becky Ames) Christy Amuny would be reappointed to the Board of Adjustment (Zoning). The current term would expire March 23, 2015. (Mayor Becky Ames) Dora Nisby would be reappointed to the Community Development Advisory Committee. The current term would expire July 5, 2015. (Mayor Pro Tem Gethrel Williams-Wright) Delores Comeaux Guidry would be reappointed to the Community Development Advisory Committee. The current term would expire July 10, 2015. (Mayor Pro Tern Gethrel Williams- Wright) Georgine Guillory would be reappointed to the Community Development Advisory Committee. The current term would expire June 11, 2015. (Councilmember Jamie D. Smith) William Sam would be reappointed to the Community Development Advisory Committee. The current term would expire June 11, 2015. (Councilmember Jamie D. Smith) Karl Duerr would be reappointed to the Police Department Community Advisory Committee. The current term would expire July 11, 2015. (Councilmember Mike Getz) Douglas Rathgeber would be reappointed to the Police Department Community Advisory Committee. The current term would expire July 11, 2015. (Councilmember Mike Getz) RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the following reappointments be made: Reappointment Commission Beginning Expiration of Term of Term Dana L. Timaeus Board of Adjustment(Zoning) 08/13/13 05/12/15 Joey Hilliard Board of Adjustment(Zoning) 08/13/13 02/17/15 Christy Amuny Board of Adjustment(Zoning) 08/13/13 03/23/15 Dora Nisby Community Development Advisory Committee 08/13/13 07/05/15 Delores Comeaux Community Development Advisory Committee 08/13/13 07/10/15 Guidry Georgine Guillory Community Development Advisory Committee 08/13/13 06/11/15 William Sam Community Development Advisory Committee 08/13/13 06/11/15 Karl Duerr Police Department Community Advisory Committee 08/13/13 07/11/15 Douglas Rathgeber Police Department Community Advisory Committee 08/13/13 07/11/15 Barbara White Parks and Recreation Advisory Committee 08/13/13 08/06/15 Carl Briggs Parks and Recreation Advisory Committee 08/13/13 07/10/15 Steve McGrade Parks and Recreation Advisory Committee 08/13/13 07/14/15 PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - Barbara White would be reappointed to the Parks and Recreation Advisory Committee. The current term would expire August 6, 2015. (Councilmember Jamie D. Smith) Carl Briggs would be reappointed to the Parks and Recreation Advisory Committee. The current term would expire July 10, 2015. (Councilmember Jamie D. Smith) Steve McGrade would be reappointed to the Parks and Recreation Advisory Committee. The current term would expire July 14, 2015. (Councilmember W. L. Pate, Jr.) A) Approve a resolution approving a correction to the minutes of the December 18, 2012 City Council Meeting B) Approve a resolution accepting maintenance of the street, storm sewer, water and sanitary sewer improvements in Fairfield Phase III (A) Subdivision A RICH WITH OPPORTUNITY r T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tina Broussard, City Clerk, TRMC MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider a resolution approving a correction to the minutes of the December 18, 2012 City Council Meeting. BACKGROUND On January 8, 2013, Council approved minutes from the December 18, 2012 City Council Meeting. Item No. 4 in the minutes summarized the motion which needed to be included verbatim. The item has been corrected and needs Council approval to reenter into the official City Clerk records. FUNDING SOURCE None. RECOMMENDATION Approval of Resolution. RESOLUTION NO. WHEREAS, on January 8, 2013, City Council approved the minutes of the December 18, 2012 City Council meeting; and, WHEREAS, Item #4 in the minutes summarized the motion which needed to be included verbatim; and, WHEREAS, the item has been corrected and needs Council approval to reenter into the official City Clerk records; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the minutes of the December 18, 2012 City Council meeting are hereby amended by including the verbatim motion and record vote cast. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - B RICH WITH OPPORTUNITY r rk T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Patrick Donart, Public Works Director MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider a resolution accepting maintenance of the street, storm sewer, water and sanitary sewer improvements in Fairfield Phase III (A) Subdivision. RECOMMENDATION On August 2, 2013, a final inspection from all entities involved was completed on the following: • Claybourn Drive approximately 1,166 feet extension east of existing Claybourn Drive to OM-4P Dead End Roadway Markers. • Mystic Lane approximately 707 feet south of Claybourn Drive to cul-de-sac. Recommended for approval are the storm sewer, water and sanitary sewer improvements for Fairfield Phase III (A) Subdivision right-of-way only. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. f 1CROGER FOLSOM DRNE L DD6 DEMMON BASIN A' p' Jr:�._ EO b - I WAR ] ML.CORP ENERGY .� _ 3 v ffliRf IRD PHflSf III L OCA TION MAP NTS FAIRFIELD PHASE III SUBDIVISION RESOLUTION NO. WHEREAS, construction of the streets, storm sewer, water and sanitary sewer improvements constructed in Fairfield Phase III (A) Subdivision have been completed as follows.. Streets • Claybourn Drive approximately 1,166 feet extension east of existing Claybourn Drive to OM-4P Dead End Roadway Markers. • Mystic Lane approximately 707 feet south of Claybourn Drive to cul-de- sac. Storm Sewer, Water and Sanitary Sewer Improvements • Fairfield Phase III (A) Subdivision, right-of-way only. and, WHEREAS, the developers of said streets desire to have these improvements accepted and maintained by the City; and, WHEREAS, the director of the Public Works and Engineering Department has determined that said improvements meet city standards and qualify for acceptance for permanent maintenance, and the City Council is of the opinion that said improvements should be accepted and maintained by the City of Beaumont; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT- THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the above-referenced street, storm sewer, water and sanitary sewer improvements in Fairfield Phase III (A) Subdivision, with the exception of streetlights, are hereby accepted by the City of Beaumont and shall be continuously maintained by the City contingent upon filing of the final plat, complete with filings of dedication of all rights-of-way and easements required on the preliminary and final plats and installation of the streetlights. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - B AUMONT HOUSING FINANCE CORPORATION R1('14 WITH QPPORTV%17Y BEA,UMON* T • E • K . A 0...S MEETING OF THE BEAUMONT HOUSING FINANCE CORPORATION COUNCIL CHAMBERS AUGUST 13, 2013 1:30 P.M. AGENDA CALL TO ORDER * Roll Call * Approval of minutes—November 6, 2012 GENERAL BUSINESS 1. Consider a resolution accepting a special warranty deed conveying title to the Hotel Beaumont to the Beaumont Housing Finance Corporation RESOLUTION NO. WHEREAS, the City of Beaumont has agreed to convey title to the property commonly known as Hotel Beaumont to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens in favor of the U.S. Department of Housing and Urban Development, and, WHEREAS, the Beaumont Housing Finance Corporation has considered the purpose of said conveyance and is of the opinion that the acceptance of said Special Warranty Deed conveying title to property commonly known as Hotel Beaumont is necessary and desirable and that same should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BEAUMONT HOUSING FINANCE CORPORATION: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the Special Warranty Deed conveying title to property commonly known as Hotel Beaumont be and the same is hereby, in all things, accepted for the stated purposes. PASSED BY THE BOARD OF DIRECTORS of the Beaumont Housing Finance Corporation this the 13th day of August, 2013. Becky Ames, President Beaumont Housing Finance Corporation BEA,[1M0N*' REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS AUGUST 13, 2013 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-5/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider a resolution to receive the proposed FY 2014 Budget and schedule a public hearing 2. Consider establishing and taking a record vote on the proposed 2013 tax rate and schedule public hearings 3, Consider a resolution to receive the proposed 2014 Capital Program and schedule a public hearing 4. Consider an ordinance amending Chapter 14 of the Code of Ordinances concerning fees at the Henry Homberg Golf Course 5. Consider a resolution approving a plan of foreclosure of the Hotel Beaumont property, ratifying the prior assignment of notes and liens previously assigned to HUD and approving the transfer of title to the Hotel Beaumont property to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens to HUI) COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Claim of Johnny Owens * Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Code, to wit: Gilbert Building 328 Bowie Street Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting. 1 August 13, 2013 Consider a resolution to receive the proposed FY 2014 Budget and schedule a public hearing r C � T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider a resolution to receive the proposed FY 2014 Budget and schedule a public hearing. BACKGROUND Article VI, Section 2 of the City Charter requires that the proposed budget be submitted to the Council at least 45 days prior to the beginning of the new fiscal year. In addition, Section 4 requires Council to schedule a public hearing on the proposed budget. FUNDING SOURCE Not applicable. RECOMMENDATION The Administration recommends that the public hearing be held on August 27, 2013, at 1:30 p.m. in Council Chambers, located at 801 Main Street. The City Clerk will publish the notice of the public hearing. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the proposed FY 2014 Budget has been received and a public hearing is hereby scheduled for August 27, 2013 at 1:30 PM in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas; and, BE IT FURTHER RESOLVED THAT the City Clerk is to publish notice of said hearing pursuant to the Charter of the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - 2 August 13, 2013 Consider establishing and taking a record vote on the proposed 2013 tax rate and schedule public hearings [I 11E A,11 1�1 C1 I T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer V'[EETING DATE: August 13, 2013 REQUESTED ACTION: Council consider establishing and taking a record vote on the proposed 2013 tax rate and schedule public hearings. BACKGROUND Chapter 26 of the Property Tax Code requires taxing units to comply with truth-iii-taxation laws in adopting their tax rate. According to Senate Bill 18, governing bodies are required to hold two public hearings when the proposed tax rate exceeds the lower of the rollback rate or the effective rate. Administration recornrnends Council establish a tax rate required to support the City ]Manager's proposed budget. In accordance with Chapter 26 of the Property Tax Code, if the proposed rate exceeds the lower of the rollback rate of$.9291255100 or the effective tax rate of $.644426i$100, the City Council must take a record vote to place the proposal to adopt the rate on the agenda of a future meeting. The effective tax rate is the rate that would produce the same amount of taxes in FY 2014 as was produced in FY 2013 if it was applied to the same properties taxed in both years. The proposed tax rate of$0.690000/$100, exceeds the effective tax rate of $.644426i$100 by $.045574/$100. If the motion passes, two public hearings must be scheduled. It is recommended that the public hearings be held on August 27, 2013 and September 10. 2013 at 1 :30 p.in. in the Council Chambers. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT- THAT the tax rate of$0.69 be and it is hereby proposed; and, BE IT FURTHER RESOLVED THAT the dates of August 27, 2013 and September 10, 2013 be and the same are hereby set as the dates at which the City Council will conduct public hearings on the proposed tax rate. The meetings will be held in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas at 1:30 PM August 27, 2013 and September 10, 2013 at which time the Council will receive public comment on the proposed tax rate of $0.69. BE IT FURTHER RESOLVED THAT the City Clerk is to publish notice of said public hearing pursuant to V.T.C.A., Tax Code §26.06. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - 3 August 13, 2013 Consider a resolution to receive the proposed 2014 Capital Program and schedule a public hearing r ,[I 1�1 C1 I T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider a resolution to receive the proposed 2014 Capital Program and schedule a public hearing. BACKGROUND The proposed 2014 Capital Program was originally submitted to Council on May 10, 2013. Revisions have been made to the original proposed document and are attached for yoUr review. Article VI, Section 20 of the City Charter requires Council to schedule a public hearing on the proposed Capital Program. FUNDING SOURCE Not applicable. RECOMMENDATION The Administration recommends that the public hearing be held on August 27, 2013, at 1:30 p.m. in Council Chambers, located at 801 Main Street. The City Clerk will publish the notice of the public hearing. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the proposed FY 2014 Capital Program has been received and a public hearing is hereby scheduled for August 27, 2013 at 1:30 PM in the City Council Chambers, City Hall, 801 Main Street, Beaumont, Texas; and, BE IT FURTHER RESOLVED THAT the City Clerk is to publish notice of said public hearing pursuant to the Charter of the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - 4 August 13, 2013 Consider an ordinance amending Chapter 14 of the Code of Ordinances concerning fees at the Henry Homberg Golf Course RICH WITH OPPORTUNITY 11L A► � T • E • X • A . S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Ryan Slott, Parks and Recreation Director MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider an ordinance amending Chapter 14 of the Code of Ordinances concerning fees at the Henry Homberg Golf Course. BACKGROUND At the Work Session on August 6, City Council reviewed and discussed the fees and charges at the Henry Homberg Golf Course. A copy of the proposed changes is attached for your review. RECOMMENDATION Approval of the ordinance. See. 14.04.012 Henry Homberg Golf Course 9 Holes 18 Holes Green fees: Weekday $9 $12.00$14 Weekend $1-0:00$12 $4.7-.00$19 Senior (age 60+)_— Weekday $6-.00$7 "–$9 $9 & Youth(under 18) Weekend $ -00$9 $7:80$12 Cart fees: `,reekda Daily $6.114$7 $4-t:130$12 Weekend e ekend 86---40 $11:00 Driving range X00$4 per bag Annual membership fees: Age 60+ $275.00 $300 plus tax Under age 60 $^75:00-$500 plus tax (Benefit: Unlimited green fees Monday through Friday, cart not included; %2 price green fees on weekend) Special Rates: The City Manager mad, approve other rates for tournaments, specials, and online booking• ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 14, ARTICLE 14.04, SUBSECTION 14.04.012 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS; PROVIDING FOR HENRY HOMBERG GOLF COURSE FEES AND CHARGES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1. THAT Chapter 14, Article 14.04, Section 14.04.012 of the Code of Ordinances be and the same is hereby amended by amending Section 14.04.012 to read as follows: 9 Holes 18 Holes Green fees: Weekday $9.00 $14.00 Weekend $12.00 $19.00 Senior (age 60+) Weekday $7.00 $9.00 & Youth (under 18) Weekend $9.00 $12.00 Cart fees: Daily $7.00 $12.00 Driving range $4.00 per bag Annual membership fees: Age 60+ $300.00 plus tax Under age 60 $500.00 plus tax (Benefit: Unlimited green fees Monday through Friday, cart not included; '/z price green fees on weekend) Special Rates: The City Manager may approve other rates for tournaments, specials, and online booking. Section 3. That if any section, subsection, sentence, clause of phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid, such invalidity shall not affect the remaining portions of this ordinance, and to such end, the various portions and provisions of this ordinance are declared to be severable. Section 4. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 5. That any person who violates any provision of this ordinance shall, upon conviction, be punished, as provided in Section 1.01.009 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - 5 August 13, 2013 Consider a resolution approving a plan of foreclosure of the Hotel Beaumont property, ratifying the prior assignment of notes and liens previously assigned to HUD and approving the transfer of title to the Hotel Beaumont property to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens to HUD RICH WITH OPPORTUNITY r C ► T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper, City Attorney MEETING DATE: August 13, 2013 REQUESTED ACTION: Council consider a resolution approving a plan of foreclosure of the Hotel Beaumont property, ratifying the prior assignment of notes and liens previously assigned to HUD and approving the transfer of title to the Hotel Beaumont property to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens to HUD. BACKGROUND Since the time the City purchased Hotel Beaumont in March 2012 it has been working with HUD to get approval to allow the conveyance of clear title and extinguish a third party interest in the property held by the Department of Health and Human Services. In order to clear the title to the property, it will be necessary to foreclose the liens assigned to HUD which should extinguish the DHHS' interest. HUD has approved the plan of foreclosure proposed by the City. The plan generally involves the ratification of the assignment of the notes and liens to HUD, conveying title to the Hotel Beaumont property to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens assigned to and held by HUD. HUD will subsequently reassign the notes to the City with the City owning the notes and liens and the ownership of the property held by the Beaumont Housing Finance Corporation. The liens will be foreclosed at a public foreclosure sale which would also extinguish all junior liens and encumbrances including the DHHS' interest. Assuming the City is the successful bidder at the foreclosure sale,the City would then have acquired title to Hotel Beaumont and can proceed to sell the property on the open market. In order to move forward, it is necessary for the Council to approve the foreclosure plan, authorize the ratification of the prior assignment of the notes and liens to HUD and authorize the transfer of title to Hotel Beaumont to the Beaumont Housing Finance Corporation. FUNDING SOURCE Not applicable. RECOMMENDATION Approval of resolution, RESOLUTION NO. WHEREAS, the City of Beaumont borrowed$11,000,000 from the U.S. Department of Housing and Urban Development (HUD) in 1999 as a future loan against future HUD Community Development Block Grants to be loaned by the City to finance community development projects including the Hotel Beaumont project to renovate a senior living facility for low to moderate income seniors; and, WHEREAS, the loan to the 625 Orleans Limited Partnership to renovate Hotel Beaumont was structured bytwo(2)promissory notes of$2,000,000 and$1,175,000 which both notes were subordinate and junior to a senior loan made to 625 Orleans Limited Partnership by Chase Bank, predecessor to Capital One Bank; and, WHEREAS, in October 2011 625 Orleans Limited Partnership, as owner of Hotel Beaumont, closed its doors owing Capital One Bank a balance of about $820,000 and the City's loan of $3,175,000 exposed; and, WHEREAS, with Capital One Bank threatening to foreclose its lien on the property and extinguish the City's lien, the City took action to protect its interest in the property by buying Capital One's note and lien for the balance owed of$824,248.95; and, WHEREAS, in order to sell the property, it was necessary to negotiate a Plan of Foreclosure agreeable to HUD and the Department of Health and Human Services(DHHS) which had filed a notice of federal interest against the property to secure a grant it made to the owners for hurricane related repairs; and, WHEREAS, a Plan of Foreclosure has been formulated which would allow for the sale of the property and provides for the allocations of the proceeds to be pledged and deposited with HUD as substitute collateral to secure the City's loan to HUD. The recommended Plan of Foreclosure is attached hereto as Exhibit "A;" and, WHEREAS, the City Council for the City of Beaumont finds that it is in the best interest of the City of Beaumont to adopt the recommended Plan of Foreclosure, allowing for the ratification of the prior assignment of the notes and liens to HUD and authorize the transfer of title to the Hotel Beaumont property to the Beaumont Housing Finance Corporation for foreclosure; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT- THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the Recommended Plan of Foreclosure of the Hotel Beaumont property be and it is hereby approved. The Recommended Plan of Foreclosure is attached hereto as Exhibit "A;° and, BE IT FURTHER RESOLVED THAT the City Manager is authorized to execute for filing in the deed records of Jefferson County,Texas a Ratification, Renewal and Extension of Deed of Trust and Assignment and Transfer of Liens in favor of the United States Secretary of Housing and Urban Development. The Ratification, Renewal and Extension of Deed of Trust and Assignment and Transfer of Liens is attached hereto as Exhibit "B;" and, BE IT ALSO RESOLVED THAT the City Manager be and he is hereby authorized to execute for filing in the deed records of Jefferson County, Texas a Special Warranty Deed conveying title to the property commonly known as the Hotel Beaumont to the Beaumont Housing Finance Corporation subject to the outstanding notes and liens in favor of the U.S. Department of Housing and Urban Development. The Special Warranty Deed is attached hereto as Exhibit "C." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 13th day of August, 2013. - Mayor Becky Ames - RECOMMENDED FORECLOSURE PLAN The proposed plan our firm has recommended to the City, which has been approved by HUD, is as follows: 1. Get the original Note 1, Note 2, the transfer of the Liens from the City to HUD, and the related documents that were deposited into escrow with Capital One (as escrow custodian) released from escrow to the City. 2. Record the Transfer of Lien executed by the City in 1999 in favor of HUD that assigned to HUD the liens securing Note 1 and Note 2. 3. Have the City sign a written ratification that can be filed of record confirming that Note 1 and Note 2 and the liens securing such notes were previously assigned to HUD in 1999 to secure the City's loan to HUD, and that such notes and liens remain in place, are outstanding and valid and are held by HUD. 4. Have the City convey title to Hotel Beaumont to the Beaumont Housing Finance Corporation, subject to the outstanding Note 1 and Note 2 and the Liens securing same that are assigned to and held by HUD. Thus, the Beaumont Housing Finance Corporation would become the owner of the property, subject to such debts and Liens, but it would not assume and would not have any liability to pay such debt and Liens. 5. Have HUD reassign to the City Note 1 and Note 2 and the Liens securing such Notes. Once completed,this means that the City will again own and hold Note 1 and Note 2 and the Liens securing same, and ownership of the property will be in the Beaumont Housing Finance Corporation. 6. Have the City foreclose the Liens securing Note 1 and Note 2 and conduct a public foreclosure sale. This should have the effect of extinguishing all junior liens and encumbrances, including the DHHS' interest. 7. Assuming the City is the successful bidder at the foreclosure sale, the City will then acquire title to Hotel Beaumont and can proceed with selling it in the regular course of business.Altemately,it's possible a third party may bid for the property at the foreclosure sale, and the City will have to decide what is the minimum bid price it would accept for the property. EXHIBIT "A" RATIFICATION, RENEWAL AND EXTENSION OF DEED OF TRUST AND ASSIGNMENT AND TRANSFER OF LIENS THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § The City of Beaumont, Texas, a home rule municipality organized and existing under the laws of the State of Texas (herein referred to as the "City"), hereby executes this Ratification, Renewal and Extension of Deed of Trust and Assignment and Transfer of Liens, for the benefit of the United States Secretary of Housing and Urban Development ("HUD"), and hereby acknowledges, confirm and agrees as follows: WHEREAS, the City is indebted to HUD under that certain Contract For Loan Guarantee Assistance Under Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308, dated February 5, 1999 (the "Section 108 Loan Agreement"), entered into between the City and HUD, as thereafter amended, and WHEREAS, the Section 108 Loan Agreement was entered into between the City and HUD pursuant to which HUD loaned to the City $11,000,000.00 (the "Section 108 Loan"), the proceeds of which loan were used and re-loaned by the City to other borrower-, to finance multiple community development projects located in the City of Beaumont, Texas, pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308 (the "Act"); and WHEREAS, one of the projects financed by the City with the Section 108 Loan is commonly referred to as the "Hotel Beaumont Project", pursuant to which the City made two loans to 625 Orleans Limited Partnership ("625 Orleans LP"), in the total amount of $3,175,000.00, as evidenced by (i) that certain Promissory Note dated May 19, 1999, executed by 625 Orleans LP and,payable to the order of the City in the original principal amount of$2,000,000.00 ("Note I") and (ii) that certain Promissory Note dated May 19, 1999, executed by 625 Orleans LP and payable to the order of the City in the original principal amount of$1,175,000.00("Note 2"); and WHEREAS, Note I and Note 2 and the indebtedness and obligations of 625 Orleans LP thereunder to the City are secured by that certain Second Lien Deed of Trust and Security Agreement and UCC Finance Statement for Fixture Filing, with Assignment of Rents and Leases and Assignment of Contracts and Sales Proceeds, dated May 19, 1999, executed by 625 Orleans LP to Lance Fox, Trustee, for the benefit of the City and its assigns, recorded under County Clerk's File Number 1999019654, Official Public Records of Jefferson County, Texas (the "Deed of Trust"), wherein a deed of trust lien is granted on the property described therein commonly known as "Hotel Beaumont", more particularly described in Exhibit "A" attached Y tSONDBEAUMONT SECTION 108 FINANCING 1999NHOTEL 9EAUMONT12013 FORECLOSURE&TRANSFERS\DOCUMENTS\RATIFICATION RENEWAL EXTENSION OF TRANSFER OF LIENS.DOC EXHIBIT "B" hereto and incorporated herein by reference (herein referred to as the "Hotel Beaumont Property"), and WHEREAS, pursuant to the terms of the Section 108 Loan Agreement between the City and HUD and to secure the City's Section 108 Loan to HUD, the City made a collateral transfer and assignment of Note I and Note 2 to HUD and assigned and transferred the liens and interest granted to it under the Deed of Trust to HUD pursuant to a Transfer of Lien dated October 8, 1999, executed by the City in favor of HUD (the "Transfer of Lien"); and WHEREAS, pursuant to the Section 108 Loan Agreement, the Transfer of Lien was delivered to a custodian to hold in custody for the benefit of HUD, and such Transfer of Lien was just recently filed of record and is recorded under County Clerk's File Number 2013021884 of the Official Public Records of Jefferson County, Texas; and WHEREAS, 625 Orleans LP defaulted in its obligations to the City under Note I and Note 2 and under the Deed of Trust and it vacated the Hotel Beaumont Property, and in connection therewith, the City acquired title to the Hotel Beaumont Property from 625 Orleans LP by that certain Special Warranty Deed dated March 1, 2012, recorded under County Clerk's File Number 2012006727 of the Official Public Records of Jefferson County, Texas; and WHEREAS, by this instrument, the City desires to acknowledge, ratify and confirm that its acquisition of title to the Hotel Beaumont Property was and is subject to the outstanding liens and encumbrances under the Deed of Trust that secure Note I and Note 2 and that were collaterally transferred and assigned by the City to HUD as described hereinabove, which assignment and transfer remain outstanding as security for the City's indebtedness and obligations to HUD under the Section 108 Loan Agreement; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City hereby acknowledges, ratifies, confirms and agrees as follows: 0) Note I and Note 2 are outstanding and unpaid and are still due and owing by 625 Orleans LP, (ii) the Deed of Trust securing Note I and Note 2 is outstanding and in full force and effect, (iii) Note I and Note 2 and the Deed of Trust and liens thereunder securing payment of Note I and Note 2 were assigned and transferred by the City to HUD on October 8, 1999 (the"1999 Assignment"), (iv) By virtue of the 1999 Assignment, HUD is the legal owner and holder of Note I and Note 2 and the liens under the Deed of Trust, Y:?BONDBEAUMONT SECTION 108 FINANCING 1999NHOTEL BEAUMON-R2013 FORECLOSURE&TRANSFERS%DOCUMENTS\RATIFICATION RENEWAL EXTENSION OF TRANSFER OF LIENS DOC 2 (v) The City's acquisition of the Hotel Beaumont Property was and is subject to the Deed of Trust and the liens granted thereunder to secure payment of Note I and Note 2, and (vi) As the current owner of the Hotel Beaumont Property, the City hereby ratifies, confirms, renews and extends the liens granted under the Deed of Trust and the Deed of Trust is and shall remain in full force and effect. EXECUTED on this day of 2013. THE CITY OF BEAUMONT, TEXAS By: Kyle Hayes, City Manager STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me on 2013, by Kyle Hayes, City Manager of The City of Beaumont, Texas, on behalf of said City. Notary Public in and for the State of Texas AFTER RECORDING RETURN TO: Lance Fox PO Box 5607 Beaumont,TX 77726 Y\BOND\BEAUMONT SECTION 108 FINANCING 19991HOTEL BEAUMONTQ013 FORECLOSURE&TRANSFERSkOOCUMENTSNRATIFICATION RENEWAL EXTENSION OF TRANSFER OF LIENSDOC 3 EXHIBIT"A" Property Description [See Attached] ff i C EUMff "A" BEING} a 26,700 square feet tract of land out of Block 40 of the Original Town of Beaumont in the Noah Tevis Survey, Abstract 52, Beaumont, Jefferson County, Texas, said tract being all of Lot 201 and 202 and part of Lots 198, 199, 200 and 206 of said Bock 40, and being all of the property conveyed to 1larvey E. ;Miller by Deed dated May 17, 1981, and recorded in Vol. 2317 page 400 of the Deed Records of Jefferson County, Texas. BEGINNING at the most Westerly or Northwest corner of Lot 201 of Block 40, of the Original Town of Beaumont, said corner being located at the point of intersection of the Northeasterly right of way line of Orleans Street and the Southeasterly right of way line of Fannin Street; THENCE North 49° 26' East (reference bearing) along the Southeasterly right of way line of Fannin Street and along the Northwesterly line of Lots 201 and 202 of Block 40, a distance of 120 0 feet to the Northeast or most Northerly corner of Lot 202, and the most westerly corner of Lot 203 and being the most westerly or northwest corner of that certain tract conveyed to Jefferson Theatre Preservation Society by Deed dated November 11, 1976 and recorded in Vol. ' 2036 page 442 of the Deed Records of Jefferson County, Texas. THENCE South 40° 34' Fast along the common line of Lots 202 and 203 and along the Southwesterly line of the said Jefferson Theatre Tract, a distance of 160.0 feet to the most Southerly or Southwest corner of said Jefferson Theatre Tract located in Lot 206; THENCE North 490 26' East along the Southeasterly line of the Jefferson Theatre Tract, a distance of 30.00 feet to a point for corner located in the dividing line between Lots 206 and 2070 f THENCE South 400 34' East along the common line between Lots 206 and 207, a distance of € 50.00 feet to a point for corner located in Lot 198; THENCE South 49° 26' West along the Northwesterly line of a tract conveyed to Rogers I Brothers by Deed dated April 13, 1964 and recorded in Vol. 1384 page 175 of the Decd Records of Jefferson County, Texas, said line being parallel to and 90.00 feet Northwesterly of the I Northwesterly right of way line of Forsythe Street, a distance of 150.0 feet to the most Westerly or Northwest corner of said Rogers Brothers tract, said comer being located in the Northeasterly right of way line of Orleans Street and being 90.00 feet from the Southwest corner of Lot 200; THENCE North 40° 34' West along the Northeasterly right of way line of Orleans Street and along the Southwesterly line of Lots 200, 206 and 201 of Block 40, a distance of 210 0 feet to the PLACE OF BEGINNING and containing in area 26,700 square feet of land, more or less. NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED (SUBJECT TO LIENS AND INDEBTEDNESS AND RESTRICTIVECOVENANT) THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § That The City of Beaumont, Texas, a home rule city and municipality organized and existing under the laws of the State of Texas, in consideration of the sum of TEN DOLLARS AND NO/100 DOLLARS ($10.00) and other good and valuable consideration to Grantor in hand paid by Grantee hereinafter named, the receipt of which is hereby acknowledged, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY unto the Beaumont Housing Finance Corporation, a non-profit housing finance corporation organized and existing under and pursuant to the Texas Housing Finance Corporations Act, Chapter 394, Texas Local Government Code, as amended, herein referred to as "Grantee", whose mailing address is 801 Main Street, Beaumont, TX 77701, all of that certain property situated in Jefferson County, Texas, more particularly described as follows, to-wit: BEING a 26,700 square foot tract of land out of Block 40 of the Original Town of Beaumont in the Noah Tevis Survey, Abstract 52, Beaumont, Jefferson County, Texas, said tract being all of Lot 201 and 201 and part of Lots 198, 199, 200 and 206 of said Block 40,of the Original Town of Beaumont, Jefferson County, Texas, as more particularly described in Exhibit "A" attached hereto and incorporated herein by reference; together with (i) any and all improvements located thereon; (ii) all appurtenances belonging or appertaining thereto; (iii) all easements or rights of way affecting said real property and any of Grantor's rights to use same (iv) all rights of ingress and egress to and from said real property; (v) any right, title and interest of Grantor in and to any and all roads, streets and ways affecting EXHIBIT "C" or bounding said real property; (vi) any right, title and interest of Grantor in and to any and all strips or pieces of property abutting, bounding or which are adjacent to said real property; (vii) any right, title to the present or future use any utility facilities to the extent same pertain to or benefit said real property, including, without limitation, all reservations of or commitments or letters covering any such use in the future; and (viii) any and all fixtures, equipment and other personal property (tangible or intangible) owned by Grantor and located on or about or used in connection with said real property; (hereinafter referred to as the "Property"). This conveyance is made and accepted expressly subject to the following: (a) all prior reservations, conveyances, agreements, leases and/or other agreements, if any, related to the hereinabove described property as shown in the records of the County Clerk of Jefferson County, Texas; (b) any and all validly existing easements, encumbrances, liens, conditions and restrictions, if any, relating to the hereinabove described property as now reflected by the records of the County Clerk of Jefferson County, Texas; and specifically, this conveyance is made subject to the liens and encumbrances that exist on the Property granted under that certain Second Lien Deed of Trust and Security Agreement and UCC Finance Statement for Fixture Filing, with Assignment of Rents and Leases and Assignment of Contracts and Sales Proceeds, dated May 19, 1999, by 625 Orleans Limited Partnership to Lance Fox, Trustee, for the benefit of The City of Beaumont, Texas and its assigns, recorded under County Clerk's File Number 1999019654, Official Public Records of Jefferson County, Texas (the "Deed of Trust"), said Deed of Trust having been granted and recorded to secure the following indebtedness and obligations: (i) all indebtedness and obligations of 625 Orleans Limited Partnership under that certain Loan Agreement dated May 19, 1999, between 625 Orleans Limited Partnership, as borrower, and The City of Page 2 of 8 Beaumont, Texas, as lender (the "Loan Agreement"); (ii) the indebtedness under that certain Promissory Note dated May 19, 1999, executed by 625 Orleans Limited Partnership and payable to the order of The City of Beaumont, Texas, in the original principal amount of $2,000,000.00 ("Note 1") and (iii) the indebtedness under that certain Promissory Note dated May 19, 1999, executed by 625 Orleans Limited Partnership and payable to the order of The City of Beaumont, Texas, in the original principal amount of$1,175,000.00 ("Note 2") ; and said Deed of Trust and the liens thereunder having been ratified, renewed and extended. by that certain Ratification, Renewal and Extension of Deed of Trust and Assignment and Transfer of Liens dated , 2013, executed by Grantor and recorded under County Clerk's File Number of the Official Public Records of Jefferson County, Texas (the "Ratification and Renewal Agreement"); (c) ad valorem taxes for the year 2013 and subsequent years, together with any subsequent assessments for prior years due to changes in land usage and/or ownership; (d) all existing statutes, zoning laws, ordinances, rules and/or regulations of municipal, county, state, federal and other governmental entities, to the extent same affect the hereinabove described property; and PROVIDED, HOWEVER, this conveyance and the Property and all improvements now or hereafter erected or affixed thereon shall be and are hereby made subject to the restrictive covenant, condition and limitation that the Property and all improvements and fixtures now or hereafter erected or affixed thereon shall be used for the purpose of providing housing for low-income or moderate-income residents (the `"Restrictive Page 3 of 8 Covenant"). This Restrictive Covenant shall constitute a covenant running with the Property; provided, however, this Restrictive Covenant is subordinate to the indebtedness and liens under the Loan Agreement, Note 1, Note 2 and Deed of Trust described above and this Restrictive Covenant shall automatically be extinguished and terminate in the event there is ever a trustee's foreclosure sale of the Property that takes place pursuant to the enforcement and foreclosure of the liens granted under the Deed of Trust described above or under any other senior or prior lien that exists on the Property that is recorded of record prior to the date of this Deed. BY THE ACCEPTANCE OF THIS DEED, GRANTEE TAKES THE PROPERTY "AS IS", "WHERE IS", WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE, EXCEPT FOR WARRANTIES OF TITLE AS PROVIDED AND LIMITED HEREIN. GRANTOR HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATIONS OR WARRANTIES AS TO THE PHYSICIAL CONDITIONS, LAYOUT, FOOTAGE, EXPENSES, ZONING, OPERATION., ENVIRONMENTAL CONDITION OR ANY OTHER MATTER AFFECTING OR RELATING TO THE PROPERTY, AND GRANTEE HERBY EXPRESSLY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS OR WARRANTIES HAVE BEEN MADE. GRANTOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OF MERCHANTABILTIY, MARKETABILITY, FITNESS, HABITABILITY OR SUITABILITY FOR A PARTICULAR PURPOSE OR OTHERWISE, EXCEPT AS TO THE WARRANTY OF TITLE AS SET FORTH AND LIMITED HEREIN. ANY IMPLIED WARRANTIES ARE EXPRESSLY DISCLAIMED AND EXCLUDED. . TO HAVE AND TO HOLD the Property, together with all and singular the rights, Page 4 of 8 hereditaments and appurtenances thereto in anywise belonging, unto said Grantee, its successors and assigns forever and Grantor does hereby bind Grantor and Grantor's executors, successors and assigns to WARRANT AND FOREVER DEFEND all and singular the title to the Property unto said Grantee, and Grantee's successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Grantor, but not otherwise, and subject to the exceptions to conveyance and warranty stated above. By acceptance of this Deed, Grantee acknowledges that Grantor has disclosed to Grantee that the indebtedness and obligations under the Loan Agreement, Note 1 and Note 2 described above were assigned and transferred by The City of Beaumont, Texas to the United States Secretary of Housing and Urban Development ("HUD") as collateral to secure the loan, indebtedness and obligations of The City of Beaumont, Texas to HUD under that certain Contract For Loan Guarantee Assistance Under Section 108 of the Housing and Community Development Act of 1974, as amended, 42 U.S.C. §5308, dated February 5, 1999 (the "Section 108 Loan Agreement"'), entered into between The City of Beaumont, Texas and HUD, as thereafter amended, and the Section 108 Loan Agreement and the indebtedness and obligations of The City of Beaumont, Texas to HUD thereunder remain outstanding and in effect. Page 5 of 8 IN WITNESS WHEREOF, this Special Warranty Deed is executed by Grantor and acknowledged and accepted by Grantee this day of 2013. The City of Beaumont, Texas By: Kyle Hayes, City Manager Grantee hereby accepts this Deed and consents to its form and substance. Beaumont Housing Finance Corporation By: _ Becky Ames, President THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before on this day of 2013, by Kyle Hayes, City Manager of The City of Beaumont, Texas, on behalf of said city. Notary Public, State of Texas Page 6 of 8 THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before on this day of , 2013, by Becky Ames, President of Beaumont Housing Finance Corporation, on behalf of said entity. Notary Public, State of Texas AFTER RECORDING RETURN TO: Lance Fox PO Box 5607 Beaumont,TX 77726 Page 7 of 8 EXHIBIT "A" See attached legal description. Page 8 of 8 i I KXMIT"All I BEL`G a 26,700 square feet tract of land out of Block 40 of the Original Town of Beaumont in the Noah Tevis Survey, Abstract 52, Beaumont, Jefferson County, Texas, said tract being all of Lot 201 and 202 and part of Lots 198, 199, 200 and 206 of said Bock 40, and being all of the property conveyed to Harvey E. Miller by Dead dated May 17, 1981, and recorded in Vol. 2317 page 400 of the Decd Records of Jefferson County, Texas. BEGINNING at the most Westerly or Northwest corner of Lot 201 of Block 40, of the Original Town of Beaumont, said corner being located at the point of intersection of the Northeasterly right of way line of Orleans Street and the Southeasterly right of way line of Fannin Street; THENCE North 490 26' East (reference bearing) along the Southeasterly right of way line of Fannin Street and along the Northwesterly line of Lots 201 and 202 of Block 40, a distance of 120 0 feet to the Northeast or most Northerly corner of Lot 202, and the most westerly corner of Lot 203 and being the most westerly or northwest corner of that certain tract conveyed to i Jefferson Theatre Preservation Society by Deed dated November 11, 1976 and recorded in Vol 2036 page 442 of the Deed Records of Jefferson County, Texas. THENCE South 40° 34' East along the common line of Lots 202 and 203 and along the Southwesterly line of the said Jefferson Theatre Tract, a distance of 160.0 feet to the most Southerly or Southwest corner of said Jefferson Theatre Tract located in Lot 206; THENCE North 49° 26' East along the Southeasterly line of the Jefferson Theatre Tract, a distance of 30.00 feet to a point for corner located in the dividing line between Lots 206 and 207, THENCE South 400 34' East along the common line between Lots 206 and 207, a distance of 50.00 feet to a point for corner located in Lot 198; THENCE South 49° 26' West aloe the Northwester) tine of a tract conveyed to Rogers g Y eY � Brothers by Deed dated April 13, 1964 and recorded in Vol. 1384 page 175 of the Dead Records of Jefferson County, Texas, said tine being parallel to and 90.00 feet Northwesterly of the Northwesterly right of way line of Forsythe Street, a distance of 150.0 feet to the most Westerly or Northwest corner of said Rogers Brothers tract, said corner being located in the Northeasterly right of way line of Orleans Street and being 94.00 feet from the Southwest corner of Lot 200; THENCE North 400 34' West along the Northeasterly right of way line of Orleans Street and along the Southwesterly line of Lots 200, 206 and 201 of Block 40, a distance of 210 0 feet to the PLACE OF BEGINNING}and containing in area 26,700 square feet of land, more or less.