HomeMy Public PortalAboutResolution 2009-02-03 Approving an Amendment to the Plant Investment Fee Deferral Agreement
TOWN OF FRASER
RESOLUTION NO. 2009-02-03
A RESOLUTION APPROVING AN AMENDMENT TO THE PLANT INVESTMENT FEE
DEFERRAL AGREEMENT
WHEREAS, on June 22, 2001 the Town Board entered into a Plant Investment Fee
Deferral Agreement with Housing Authority of Grand County; and
WHEREAS, the Housing Authority agreed to make payments over a ten year period
commencing June 1, 2005 and continuing on the first day of June for each of the next nine
years with the final payment in the amount of $10,600 on June 1, 2014; and
WHEREAS, the discovery of mold in Fox Run units, the cost remediation and the loss of
rental income from vacated units, the Housing Authority is unable to pay their debt service and
request a deferral of one additional year; and
WHEREAS, the Fraser Board of Trustees has reviewed the request and determined the
request to be in the best interest of the Town of Fraser.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO THAT:
1. That the Town Board of Fraser, Colorado hereby approves the attached Amendment to
the Plant Investment Fee Deferral Agreement and authorizes the Mayor to execute the
amendment.
2. All documents must be executed within three (3) months of the date of this Resolution or
this approval shall no longer be effective.
DULY MOVED, SECONDED AND ADOPTED THIS 4th DAY OF FEBRUARY, 2009.
~~
Fran Cook, Mayor
ATTEST:
~~A~^
Lu Berger, Town CI '
"
PLANT INVESTMENT FEE DEFERRAL AGREEMENT
.
THIS INVESTMENT FEE DEFERRAL AGREEMENT, dated as of this :J .J day
. of , 2001 is between the HOUSING AUTHORITY OF GRAND
COUNTY ( ousing Authority;, a body corporate and politic, and the TOWN OF FRASER,
COW 0 ("Fraser").
Recitals
A. Housing Authority of Grand County is the owner of certain property located in
Fraser, Colorado on which the Housing Authority intends to construct a project known
as the Fox Run Apartments, LLLP (the "Prttiect") according to the Plat recorded at Grand
County Reception No. . respectively consisting of
64 apartment units, 53 ofwbich will be in me restricted units per Colorado Housing
and Finance Authority guidelines. zoot-COO'!'=',
B. Fraser will provide 64 water "taps" (access to Fraser's water system) to the Project
at a cost of $2,000 per tap. In order to encourage the development of Fox Run, Fraser
has agreed to defer pafIDent on a portion of the plant investment fee due for the project
in accordance with the terms of this Agreement.
C. GCHA and Fraser now desire to enter into this Agreement in order to set forth their
agreement regarding payment of the plant investment fees.
A2reement
IN CONSIDERATION of the foregoing and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Fraser sha1I supply 64 water taps to the Project in accordance with the normal
terms and conditions governing the provision of water services. The total cost for the
water taps will be $128,000 (the "Plant Investment Fee").
2. GCHA sha1I pay the Plant Investment Fee as follows:
(s) GCHA shall pa;y $22,000 for the eleven (11) "market rate" units prior to the
issuance of a building permit for the Fox Run project.
(b) GCHA sha1I make annual pafIDents in the amount of $10,600 for ten
consecutive years commencing on June 1, 2005 and continuing on the first day of
June for each of the next nine years with the final payment in the amount of
$10,600 on June 1, 2014, for the remAining 53 units.
3. Upon payment of the amount set forth in paragraph 2 above, GCHA sha1I have paid
the plant investment fees and such amount shall not bear interest.
4. In the event GCHA defaults in the payment of the amounts required pursuant to
Section 2 above Ot GCHA fails to maintain the Project as Affordable Housing as required
pursuant to paragraph 5 below, the entire amount of the plant investment fees shall
become immediately due and pa;yable and sha1I be subject to the collection and penalty
provisions of Chapter 8, Article 8-1 of the Code of the Town of Fraser, Colorado.
5. GCHA, as the owner of the Project, agrees that, in consideration for Fraser agreeing
to defer a portion of the Plan Investment Fee payment, a portion of the Project shall
remain available as "Affordable Housing" for the "extended use period" required in
connection with the low-income housing credits being claimed in connection with the
Project under section 42 of the Internal Revenue Code. The Project shall be considered
"Affordable Housing" for this purpose 90 long as a portion of the units in the Project
constitute "low-income units" within the meaning of said section 42.
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2111-118888 17/17/2111 14:12P AGR SARA ROSENE
1 0' 4 R 21.01 D 1.00 N 1.11 GRAND COUNTY CLERK
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6. FraIler aclm.owiedps that GCHA expects to transfer the Project to Fox Run
Apartments, LLLP ("Fox Run") at a future date. Fra8er hereby consents in advance to
, GCHA's ................t of its rights under this Agreement to Fox Run, and Fox Run's
assumption ofGCHA's obllgations under this Agreement.
7. This Agreement sha1I be binding upon the parties hereto and their successors and
............
8. This Agreement sha1I be govem.ed by and construed in accordance with the laws of
the State of Colorado. .
STATE OF COWRADO )
)
COUNTY OF GRAND )
The ~ing instrument was aclmowiedpd before me this .:;.;) NO da;y of
q-t..<-.u.E . 2001, by Catherine R. Ross as Chai1p...son and James M.
Sheehan as SecretaJy to the Board respectively of the Housing Authority of Grand County.
Witness my hand and ofticia1 seal.
TAMA L. BLANCHARD
NOTARY PUBLIC
STATE OF COLORADO
~13
I\.o1v Commission I:v,...:r~~ 1n~1~-2001
NOTARY PUBLIC
My COn"l'lTl1A.'9ion expires
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TO~FRASER. ~
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STATE OF COWRADO )
)
COUNTY OF GRAND )
The~. inginstrumentwasaclmowiedpdbl;li/reme,this it:..-~ ~ .
_0 .2001,by ~~? ---,-_!!:.-../
for the Town of Fraser.
da;y of
Witness my hand and ofticia1 seal.
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N PUBLIC
My comm1,.,uon expires 10 -/3 - ~I
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2001-006680 07/17/2001 04:02P AGR SARA ROSENE
2 0' 4 R 20.00 D 0.00 N 0.00 GRAND COUNTY CLERK
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CONSENT
The undersigned consents to the assignment by Housing Authority of the County of
Grand, Colorado ("Sponsor") to Fox Run Apartments LLLP (the "Partnership"), and the
assumption by Partnership of the obligations of Sponsor under, the Plant Investment Deferral
Agreement with respect to the Fox Run Apartments project.
By:
Name'
Title: '1OlkrY\ @Q'A1C
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TOWN OF FRASER
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Name: De.n~i~ k.. Q <-os --
Title: M", '0 ("
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3 of 4 R 20.00 D 0 e:1N 04:02P AGR SARA ROSENE
. 0.00 GRAND COUNTY CLERK
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2881-00&888 87/17/2081 04:82P AGR SARA ROSENE
4 of 4 R 211.1111 D 11.1111 N 11.1111 GRAND COUNTY CLERK