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HomeMy Public PortalAboutAB 08-163 NHS lease amendmentMcCALL CITY COUNCIL AGENDA BILL Number Meeting Date 216 East Park Street McCall, ID 83638 AB08-163 August 14, 2008 AGENDA ITEM INFORMATION SUBJECT: Neighborhood Housing Services and the McCall Avenue Homes Approvals: Department/ Committee/Individual Initials Remarks (Originator/ Support) Mayor /Council City Manager originator Community Development Treasurer Clerk, Deputy City Clerk Police Department Public Works Golf Operations COST IMPACT: Parks & Recreation FUNDING SOURCE: Airport Library TIMELINE: City Attorney Grant Coordinator SUMMARY STATEMENT: City Attorney Bill Nichols has prepared the attached First Amendment to the Ground Lease between Neighborhood Housing Services (NHS) and the City. The Amendment will defer the repayment of the City's $175,000 investment in community housing. The funds will eventually be repaid as homes are sold and the lease is transferred. Payments will be due to the City at the time of lease transfer in an amount "equal to ten percent (10%) of the equity the Lessee had in the improvement(s), or Five Thousand Dollars ($5,000.00), whichever is less." The lease amendment has been provided to both NHS and VARHA. Staff recommends that the Memorandum of Understanding (MOU) between the City and NHS not be terminated at this time. The termination of the MOU can be completed upon the sale of all of the McCall Avenue homes. RECOMMENDED ACTION: Approve the First Amendment to the Ground Lease and authorize the Mayor to sign all necessary documents. RECORD OF COUNCIL ACTION Meeting Date ACTION July 10, 2008 AB08-143: Council discussed the McCall Avenue Homes and NHS July 24, 2008 AB08-154: Council discussed the McCall Avenue Homes and NHS