HomeMy WebLinkAbout07-86
MARCH 13, 2007
07 -86
RESOLUTION
(CARRIED 6-1
LOST
LAID OVER
WITHDRAWN
PURPOSE:
APPROVE DEVELOPER AGREEMENT TERMS I HAZEL STREET
INITIATED BY:
DEPARTMENT OF COMMUNITY DEVELOPMENT
BE IT RESOLVED by the Common Council of the City of Oshkosh that the
proper City officials are hereby authorized and directed to enter into appropriate
Developer Agreements with Community Retirement Living (CRL) or its assigns to
undertake development of age restricted independent living units, assisted living units,
commercial development and future twindomium units, and associated amenities, on
the former Mercy Medical Hospital site on Hazel Street, with substantially the same
terms as attached hereto, and to carry out all actions necessary to implement the City's
obligations under the Developer Agreement.
TERM SHEET FOR DEVELOPMENT
OF THE MERCY HOSPITAL SITE
March 8, 2007
Gitchi Gumee, LLC ("Original Developer") and the City of Oshkosh ('ICity") entered into a
Development Agreement dated March 26, 2003 (the "Original Development Agreement"), under
the terms of which the Original Developer was to build market rate apartments, offices, and elderly
housing on what is commonly known as the Mercy Hospital property, shown on the Site Plan
attached to this Term Sheet as Exhibit A (the land outlined on Exhibit A being referred to in this
Term Sheetas the "Original Development Site"). The Original Developer completed the market
rate apartments and doctors' offices but has been unable to complete the rest of the original project.
A new developer, CRL, LLC has approached the City and asked that the City enter into negotiations
for the development of most of the Original Development Site. ERA Family, LLC holds the
majority interest in CRL, LLC and Dan Anbar is the managing member of ERA Family, LLC.
CRL, LLC or its assigns would enter into an Amended Development Agreement (the "Amended
Development Agreement") with the City with respect to the market rate apartments and doctors'
offices constructed on the Original Development Site and certain other property located south of
Parkway Avenue, all as shown on Exhibit B attached hereto (the "Market Rate
Apartments/Longfellow School Development Site"). Under the terms of the Amended
Development Agreement, CRL, LLC or its assigns would assume the liabilities and obligations of
the Original Developer under the Original Development Agreement. CRL, LLC or its assigns
would own the Market Rate Apartments/Longfellow School Development Site. CRL, LLC or its
assigns would enter into a second development agreement with the City (the "Development
Agreement") with respect to the construction of elderly housing on the land shown on Exhibit C
attached hereto (the "Elderly Housing Development Site"). CRL, LLC intends that a second entity,
QBMKE\6048504.11
expected to be a real estate investment trust (the "RElY"), would purchase the Elderly Housing
Development Site and CRL, LLC or its assigns would enter into an operating lease with the REIT
under the terms of which CRL, LLC or its assigns would operate the elderly housing facilitiy. If a
REIT purchases the Elderly Housing Development Site, then the RElY would assume the liabilities
and obligations of CRL, LLC and its assigns under the Development Agreement, CRL , LLC and its
assigns would not be released from their liabilities and obligations under the Development
Agreement, and the REIT and CRL, LLC and its assigns would be jointly and severally liable for
performance of all terms and conditions of the Development Agreement. This Term Sheet sets
forth the general terms on which the parties will proceed to negotiate the Amended Development
Agreement for the Market Rate Apartments/Longfellow School Development Site and the new
Development Agreement for the Elderly Housing Development Site. Part I of this Term Sheet
discusses the Amended Development Agreement between CRL, LLC and its assigns and the City
with respect to the Market Rate ApartmentslLongfellow School Development Site. Part II of this
Term Sheet discusses the Development Agreement for the Elderly Housing Development Site.
Part I: Amended Development Agreement
for Market Rate Apartments/Longfellow School Development Site
A. Project
l. Development Site: 34 market rate apartments and doctors' offices located on
the land shown on Exhibit B to this Term Sheet (referred to in this Term
Sheet as the "Market Rate Apartments/Longfellow School Development
Site").
2. DevelopmentlProject Scope: The development of the market rate apartments
and doctors' offices has been completed.
B. City Responsibilities. None.
C. CRL, LLC and CRL 1/2 Responsibilities
QBMKE\6048504.11 -2-
QBMKE\6048504.11
1. CRL, LLC will form two entities, one of which will acquire the Market Rate
Apartments and the second of which will acquire the Longfellow School site.
ERA Family, LLC will own the majority interest in each of the two entities
and Dan Anbar shaU be the managing member of ERA Family, LLC. The
entity which owns the Market Rate Apartments will be referred to herein as
CRL-l and the entity which owns the Longfellow School site will be refem:d
to herein as CRL-2. CRL-l and CRL-2 are herein collectively referred to as
"CRL 1/2".
Organize investors to commit equity (it being understood that CRL 1/2 are
responsible for providing 100% of the capital needed for the acquisition of
the Market Rate Apartments/Longfellow School Development Site).
2.
3.
Obtain and close on financing commitments for the acquisition of the Marht
Rate ApartmentslLongfellow School Development Site.
Develop plans for leasing and management of the Market Rate
ApartmentslLongfellow School Development Site.
Provide financial statements for CRL, LLC, CRL-l, CRL-2 and the
guarantors of CRL's, CRL-l 's and CRL-2's obligations.
Divide the Market Rate ApartmentslLongfellow School Development Site
from the balance of the Original Development Site in accordance with
applicable laws and ordinances, so that the Market Rate
Apartments/Longfellow School Development Site are one or more distinct
parcels of real estate, including no other land within the boundaries of the
distinct parcels. In the alternative, if acceptable to the City, create a
condominium with respect to the Market Rate Apartments/Longfellow
4.
5.
6.
-3-
School Site and the balance of the Original Development Site, in such a
manner that the Market Rate ApartmentslLongfellow School Development
Site are one or more distinct parcels of real estate, including no other land
within the boundaries of the distinct parcels.
7. Assume all liabilities and obligations of the Developer under the Original
Development Agreement with respect to the Market Rate
Apartments/Longfellow School Development Site, including the obligation to
reimburse the City for its $800,000 contribution to the Market Rate
ApartmentslLongfellow School Development Site through the payment of the
Minimum Real Estate Tax Payments (as that term is defined in the Original
Development Agreement). CRL, CRL-l and CRL-2 will not be required to
assume the obligations of the Original Developer with respect to any other
parts of the Original Development Site.
8. Simultaneously with the closing of the acquisition by CRL or CRL 1/2 of the
Market Rate Apartments, Longfellow School Development Site, make any
payments needed to become current on the Minimum Real Estate Tax
Payments due under the Original Development Agreement. It is understood
that CRL 1/2 will receive credit against its Minimum Real Estate Tax
Payment due each year only that tax increment actually received by the City
from CRL 1/2 in connection with the Market Rate ApartmentslLongfellow
School Development Site.
D. Security
1. CRL and/or CRL-1 will deliver to City a mortgage on the Market Rate
Apartments and CRL and/or CRL-2 will deliver a mortgage on the
QBMKE\6048504.11
-4-
'/
QBMKE\6048504.11
Longfellow School site to secure the obligations assumed by CRL, CRL-1
and CRL-2 under the Original Development Agreement, including the
obligation to reimburse the City for its $800,000 contribution to the Market
Rate ApartmentslLongfellow School Development Site through the payment
of the Minimum Real Estate Tax Payments. The mortgage on the Market
Rate Apartments can be subordinate to one or more mortgage loan(s) on the:
Market Rate Apartments as long as the loan to value ratio is not greater than a
percentage to be determined in the Development Agreement and as long as
the other terms of the subordination are acceptable to the City, to the extent
the proceeds of the mortgage loan(s) were used for acquisition of the Market
Rate Apartments. The mortgage on the Longfellow School site can be
subordinate to one or more mortgage loan(s) on the Longfellow School site
as long as the loan to value ratio is not greater than a percentage to be
determined in the Development Agreement and as long as the other terms of
the subordination are acceptable to the City, to the extent the proceeds ofthie
loan were used for acquisition and development of the Longfellow School
site.
2.
CRL, CRL-l and CRL-2 and their principals (as determined by the City) will
deliver a guaranty to the City of the obligations of CRL, CRL-l and CRL-2
under the Amended Development Agreement, including a guaranty of
payment of the City's $800,000 contribution, to be made by CRL, CRL-1 and
CRL-2 and their principals through the Minimum Real Estate Tax Payments.
CRL, CRL-l and CRL-2 or their principals shall deliver an unconditional,
irrevocable letter of credit to the City, as beneficiary, in a stated amount of
3.
-5-
$100,000.00. The City shall be permitted to draw on the letter of credit in the
event of a default under the Amended Development Agreement or in the
event the expiration date of the letter of credit is not extended. In the event
the City draws on the letter of credit as a result of a default under the
Development Agreement (or in the event the City uses any of the cash held in
an escrow account resulting from the failure to extend the expiration date of
the letter of credit), CRL, CRL-1 and CRL-2 shall replenish the amount so
drawn or disbursed from the escrow account, it being understood that at no
time shall the stated amount of the letter of credit (or cash held in escrow) be
less than $100,000.00. CRL, CRL-1 and CRL-2 shall not be permitted to
place a mortgage, lien or encumbrance on the Market Rate
ApartmentslLongfellow School Site or the improvements thereon to secure
any reimbursement obligations of CRL, CRL-1, CRL-2 or their principals
with respect to the letter of credit.
4. The City agrees that it shall be restricted in the exercise of its rights with
respect to the collateral described in paragraphs D. 1,2, and 3 to the
following order: the City will first draw upon the letter of credit; if there are:
no amounts remaining to be drawn on the letter of credit, then the City shall
have the right to foreclose on either or both of its mortgages; and following a
sale of the Market Rate ApartmentslLongfellow Development Site, the City
shall have the right to seek payment of any remaining deficiency judgment.
from any of the guarantors.
E. Indemnity
1.
Mutual indemnities.
QBMKE\6048504.11
-6-
F. Insurance
1. CRL, CRL-l and CRL-2 agree that they will insure the Market Rate
ApartmentslLongfellow School Development Site and the improvements
thereon for such risks and in such amounts as is customary for similar
projects.
G. RepresentationslWarranties/Covenants
1. CRL, CRL-1 and CRL-2 will make certain representations, warranties and
covenants to and with the City as determined by the City.
2. There will be limitations on the ability of CRL, CRL-1 and CRL-2 to incur
debt, to transfer or lease the Market Rate ApartmentslLongfellow School
Development Site, and to place mortgages, liens and encumbrances on the
Market Rate ApartmentslLongfellow School Development Site, other than
the mortgage loans, if any, usedfor acquisition of the Market Rate
Apartments and the acquisition of and construction on the Longfellow School
site as described in this Part I, paragraph D.1 above.
H. Damage/Destruction
1. CRL, CRL-1 and CRL-2 will not be relieved of their respective liabilities
under the Amended Development Agreement in the event of fire, damage or
any other casualty, including its obligation to make all payments as required
by the Amended Development Agreement.
I. Miscellaneous
l. CRL, CRL-1 and CRL-2 will pay all costs and expenses incurred by the City
in connection with the negotiation of the Amended Development Agreement,
and all other costs and expenses of the City in connection with the Market
QBMKE\6048504.11
-7-
Rate Apartments/Longfellow School Development Site, including the City's
attorneys fees and the fees of the Cityls financial advisors.
2. CRL, CRL-1 and CRL-2 will covenant that the Market Rate
ApartmentslLongfellow School Development Site will not be sold or
transferred or leased to any person or entity exempt from real estate taxation
or in any manner which would cause the Market Rate
ApartmentslLongfellow School Development Site to be exempt from general
property taxation.
3. The Amended Development Agreement will be recorded with the Register of
Deeds of Winnebago County, Wisconsin, prior to the recording of any
mortgage liens and the lien of any mortgage of any lender to the Market Rate
Apartments/Longfellow School Development Site will be subordinate to the:
terms of the Amended Development Agreement.
4. The City's obligation to enter into the Amended Development Agreement is
conditioned on the City and CRL, CRL-3 and theREIT, if it is to own the
Elderly Housing Development Site, simultaneously entering into the
Development Agreement referred to in Part II below.
5. In the event CRL or CRL-2 does any development on the Longfellow School
site, it must obtain all appropriate governmental approvals, permits and
authorizations for such development. The City is not required to issue any
approvals, permits or authorizations unless the approvals, permits and
authorizations otherwise comply with applicable laws and ordinances.
6. CRL, CRL-1 and CRL-2 shall be jointly and severally liable for the
performance of all obligations under the Amended Development Agreement.
QBMKE\6048504.11
-8-
Part II: Development Agreement
for Elderly Housing Development Site
A. Project
1. Development Site: That portion of the Original Development Site which is
shown on Exhibit C attached hereto (referred to in this Term Sheet as the
"Elderly Housing Development Site"), on which an elderly housing project
will be developed.
2. Development/Project Scope: Will be subject to mutual agreement of CRL,
CRL-3, and the REIT, ifit owns the Elderly Housing Development Site.
3. Project Schedule: Will be subject to mutual agreement of CRL, CRL-3, and
the REIT, if it owns the Elderly Housing Development Site.
B. City Responsibilities
1. Pay/Go Commitment by City for Elderly Housing Development Site only in
the form of a taxable tax increment revenue bond (the "TIF Bond") in the
amount of not to exceed $2,708,000.00 to reimburse the owner of the Elderly
Housing Development Site for construction, rehabilitation and site
improvements on the Elderly Housing Development Site.
2. The TIF Bond will be issued and delivered to CRL, CRL-3 (as described
below) or the REIT, ifit is the owner of the Elderly Housing Development
Site, only upon completion of the construction, rehabilitation and site
improvement work and submission of documentation satisfactory to the City
reflecting actual costs expended on such work. CRL and CRL-3 understand
that all of the costs associated with that work must be paid for by CRL and
CRL-3 up front and that CRL or CRL-3 or the REIT, if it owns the Elderly
QBMKE\6048504.11
-9-
Housing Development Site, will be reimbursed for those costs only if the
development on the Elderly Housing Development Site creates A vaiIable Tax
Increment and such Available Tax Increment is appropriated by the City
Council to payment of the Bond. Interest and principal will be paid each year
by the City to CRL or CRL-3 or the REIT, if it owns the Elderly Housing
Development Site, on the TIF Bond from Available Tax Increment from the:
Elderly Housing Development Site pursuant to the schedule set forth on
Exhibit E attached hereto, but only to the extent such Available Tax
Increment exists and only if appropriated by the City Council. If there is no
Available Tax Increment from the Elderly Housing Development Site, then
the City is not required to pay CRL or CRL-3 or the REIT on the TIF Bond.
3. Payment on the TIF Bond shall be subject to the following conditions:
a. the existence of Available Tax Increment from the Elderly Housing
Development Site,
b. future annual appropriation of the payment by the City Council, and
c. CRL, CRL-3 and the REIT, if it is the owner of the Elderly Housing
Development Site, not being in default under the Development
Agreement governing the development by CRL, CRL-3 and the
REIT, ifit is the owner ofthe Elderly Housing Development Site.
4. "Available Tax Increment" means an amount equal to 87.5% of the following
figure:
a. the annual gross tax increment revenues actually received and
retained by the City which is generated in the immediately preceding
calendar year by improvements made after January 1,2007 to the
QBMKE\6048504.11
-10-
Elderly Housing Development Site, minus
b. the actual legal, financial, engineering and administrative expenses
incurred by the City in connection with the creation or administration
ofTID No. l4 and the negotiation, preparation and administration of
the Development Agreement for such year in an amount up to
$5,000.00, adjusted by'an inflation factor of2.5% per year.
5. Tax increment attributable to the Market Rate Apartments/Longfellow
School Development Site and existing development on the Elderly Housing
Development Site shall not be available to pay interest and principal on the
TIF Bond.
A more detailed description of the provisions of the TIF Bond is attached hereto as
Exhibit D.
6. Provide all approvals, permits and authorizations for the development on the
Elderly Housing Development Site (to the extent deemed appropriate by the
City with respect to the normal requirements imposed on similar developers).
The City is not required to issue any approvals, permits or authorizations
unless the development complies with applicable laws and ordinances.
7. The Elderly Housing Development Site is subject to an approved CUPIPD.
C. CRL, CRL-3 and REIT (if it is the owner of the Elderly Housing Development
Site) Responsibilities
1. Create a development entity to acquire the Elderly Housing Development
Site and undertake development of it. CRL, LLC may form an affiliate entity
("CRL-3") to acquire the Elderly HousingDevelopment Site. ERA Family,
LLC will own the majority interest in CRL-3 and Dan Anbar shall be the
-11-
QBMKE\6048504.11
QBMKE\6048504.11
managing member of ERA Family, LLC.
2. Organize investors to commit equity (it being understood that CRL and CRL-
3 are responsible for providing 100% of the capital needed for the
development of the Elderly Housing Development Site).
3. Obtain and close on financing commitments.
4. Prepare architectural drawings, plans and specifications for development of
the Elderly Housing Development Site acceptable to City and State of
Wisconsin.
5. Obtain all necessary Plan Comrriission and City Council approvals as
necessary.
6.
Develop plans for leasing and management of the development on the Elderly
Housing Development Site.
Arrange construction contracts for the development on the Elderly Housing
Development Site.
Complete the development on the Elderly Housing Development Site.
Provide financial statements for CRL, CRL-3, the REIT ifit is the owner of
the Elderly Housing Development Site, any guarantor, construction schedule:
and project cost breakdown for the development of the Elderly Housing
Development Site.
Divide the Elderly Housing Development Site from the balance of the
Original Development Site in accordance with applicable laws and
ordinances, so that the Elderly Housing Development Site is one or more
distinct parcels of real estate, including no other land within the boundaries of
the distinct parcels. In the alternative, if acceptable to the City, create a
7.
8.
9.
10.
-12-
condominium with respect to the Elderly Housing Development Site and the
balance of the Original Development Site, in such a manner that the Elderly
Housing Development Site is one or more distinct parcels of real estate,
including no other land within the boundaries of the distinct parcels.
D. Security for Performance under Development Agreement
1. CRL, CRL-3 and the REIT, ifit is the owner of the Elderly Housing
Development Site, will deliver to City a mortgage on each oftheir respective
interests in the Elderly Housing Development Site and the project thereon to
secure their obligations under the Development Agreement. The mortgage
can be subordinate to the one or more mortgage loan(s) on the Elderly
Housing Development Site, as long as the loan to value ratio is not greater
than a percentage to be determined in the Development Agreement and as
long as the other tenns of the subordination are acceptable to the City. The
proceeds of the mortgage loan(s) to which the City's mortgage is subordinat(~
must be used for acquisition and development of the Elderly Housing
Development Site.
2. CRL and its principals (as determined by the City), CRL-3 and its principals
(as determined by the City) and the REIT, if it is owner of the Elderly
Housing Development Site and its principals (as determined by the City) will
deliver a guaranty of completion of the development to the City.
E. Indemnity
1.
Mutual indemnities.
QBMKE\6048504.11
-13-
F. Insurance
1. CRL, CRL-3 and the REIT, if it is the owner of the Elderly Housing
Development Site, agree that they will insure their respective interests in the
Elderly Housing Development Site against such risks and in such amounts as
is customary for similar projects.
G. Representations/W arran ties/Covenants
1. CRL, CRL-3 and the REIT, if it is the owner of the Elderly Housing
Development Site, will make certain representations, warranties and
covenants to and with the City as determined by the City once the elderly
housing project scope is determined and the details of the project are more
refined.
2. There will be limitations on the ability ofCRL, CRL-3 and the REIT, if it is
the owner of the Elderly Housing Development Site, to incur debt with
respect to the Elderly Housing Development Site, to lease or transfer the
Elderly Housing Development Site or the project thereon, to change the
scope of the project and/or the project budget, and to place mortgages, liens.
and encumbrances on the Elderly Housing Development Site or development
thereon, other than the first mortgage loan, the proceeds of which are used tI:)r
development of Elderly Housing Development Site.
3. CRL, CRL-3 and the REIT, ifit is owner of the Elderly Housing
Development Site, will covenant to pay all real estate taxes and other City
payments as they become due.
H. DamagelDestruction
1.
CRL, CRL-3 and the REIT, ifit is owner of the Elderly Housing
-l4-
QBMKE\6048504.11
Development Site, will not be relieved of their liability under the
Development Agreement in the event of fire, damage or any other casualty,
including their obligation to complete the development of Elderly Housing
Development Site.
I. Miscellaneous
1. . All cost overruns will be paid by CRL, CRL-3 and the REIT, if it is owner of
the Elderly Housing Development Site.
2. The CRL, CRL-3 and the REIT, ifit is owner of the Elderly Housing
Development Site, will pay all costs and expenses incurred by the City in
connection with the negotiation of the Development Agreement, issuance of
the TIF Bond and all other costs and expenses of the City in connection with
the development of the Elderly Housing Development Site, including the
City's attorneys fees and the fees of the Cityls financial advisors.
The CRL, CRL-3 and the REIT, if it is owner ofthe Elderly Housing
Development Site, will covenant that the Elderly Housing Development Site
will not be sold or transferred or leased to any person or entity exempt from
real estate taxation or in any manner which would cause the Elderly Housing
Development Site and development thereon to be exempt from general
property taxation.
The Development Agreement will be recorded with the Register of Deeds of
Winnebago County, Wisconsin, prior to the recording of any mortgage liens
and the lien of any mortgage of any lender for the Elderly Housing
Development Site will be subordinate to the terms of the Development
Agreement.
QBMKE\6048504.11
3.
4.
-15-
QBMKE\6048504.11.
5. CRL, CRL-3 and the REIT, if it is owner ofthe Elderly Housing
Development Site, will be jointly and severally liable for all obligations and
liabilities under the Development Agreement.
6. The City's obligation to enter into the Development Agreement is conditioned
on the City and CRL, CRL-l and CRL-2 simultaneously entering into the
Amended Development Agreement referred to in Part I above.
7.. The City, CRL, and CRL-3 have created a project proforma which represents
the parties expectations with respect to the financial terms of and
performance of the project. At two different time periods, the parties will
determine whether those financial terms and performance expectations are
different from what was projected and if they are, a prepayment will be
deemed to have been made on the TIF Bond as follows: (a) Upon completion
and rent up of the elderly housing project (anticipated to occur 36 months
following the commencement of construction of the project), the parties will
determine whether the actual costs of the project were less
than the projected costs of the project and what debt service coverage ratio IS
required, if any, by the first mortgage lender for the project or what
applicable lease coverage ratio is required for the project. If the actual costs
of the project were less than the anticipated costs of the project, then the City
will be deemed to have made a prepayment on the TIF Bond in an amount
equal to the amount by which the projected costs of the project exceeded
the actual costs of the project. If the debt service coverage ratio required by
the first mortgage lender is less than 1.4 to 1.0 or the applicable lease
coverage ratio is less than 1.4 to 1.0, then the City will be deemed
-16-
QBMKE\6048504.11
8.
to have made a prepayment on the TIF Bond in an amount necessary to
reduce the outstanding principal balance of the TIF Bond to the amount that
it would have been, had the original amount of the TIF Bond been
determined taking into account the lesser debt service coverage ratio or lease
coverage ratio. (b) Upon refinancing of the original first mortgage loan for
the project (anticipated to occur seven years after the commencement of
construction of the project), if the debt service coverage ratio required by
the first mortgage lender is less than 1.4 to l.O or the applicable lease
coverage ratio is less than 1.4 to 1.0, then the City will be deemed
to have made a prepayment on the TIF Bond in an amount necessary to
reduce the outstanding principal balance of the TIF Bond to the amount that
it would have been, had the original amount of the TIF Bond been
determined taking into account the lesser debt service coverage ratio or lease
coverage ratio.
At such time as the equity investors in the owner of the Elderly Housing
Development Site have been paid in full, then on an annual basis, any surplus
cash flow remaining after the payment of debt service on the project shall be
disbursed by the owner of the Elderly Housing Development Site as follows:
one-third of the surplus shall be used by the owner of the Elderly Housing
Development Site to be applied for the benefit of the Elderly Housing
Development Site upon mutually agreeable terms as set forth in the
Development Agreement; and one-third of the surplus shall be
disbursed to the City to be used for any purposes the City chooses; and one..
-17-
third of the surplus shall be disbursed to the owner of the project to be used
for any purpose the owner chooses.
That portion of the Original Development Site which is designated as Phase D on Exhibit A
attached hereto is not the subject of this Term Sheet and the development of Phase D is not the
subject of either the Amended Development Agreement or the Development Agreement. Any
development on Phase D will be in accordance with all generally applicable laws, rules, regulations
and ordinances. Any tax increment created from Phase D will not be available to offset any of the
liabilities ofCRL, CRL-3 or the REIT, ifit is owner of the Elderly Housing Development Site,
under the Amended Development Agreement or the Development Agreement.
The terms of this term sheet set forth the basis upon which the parties are prepared to
proceed to negotiate an Amended Development Agreement and a Development Agreement with
respect to the development of the Market Rate Apartments/Longfellow School Development Site
and the Elderly Housing Development Site and the City, CRL, CRL 1/2, CRL-3 and the REIT, if it
is owner of the Elderly Housing Development Site, agree to work diligently toward a final
Amended Development Agreement and Development Agreement.
It is understood that no party is required to enter into the Amended Development Agreement
or the Development Agreement, as the case may be, unless the Amended Development Agreement
and the Development Agreement, as the case may be, contain all terms and conditions acceptable to
that party, in that party's sole and absolute discretion. To the extent that there exists any
contradiction between the terms of this Term Sheet and the Amended Development Agreement or
the Development Agreement, the terms of the Amended Development Agreement or the
Development Agreement, as the case may be, will govern the rights and obligations of the parties.
QBMKE\6048504.11
-18-
Exhibit A - Master Site Plan
J
\..
PARKSIDE PLACE PHASE THREE
)
:;;
~
...
"
..
>I
;:
Ilj
I-
III
III
III
I-
..
III
>
o
III
c:s
".
........"IJI\lI'l'f.....
$ MASTER SITE PLAN CONT
W . F. 9.
sc.\.l..E: 1--30'..()"
s
MASTER SITE PLAN
PARKSIDE PLACE PHASE THREE
..
II
N
cC
lC
I w$.
.
MASTER SITE PLAN
SCALE: 1"-30'-0-
KEY
l-
II
II
Il
...
'"
III
cC
o
~
~ RESIDENT ROOM
II COMMON AREAS
III RETAIL
CIRCULATION
EXISTING
VERTICAL CIRCULATION
SUPPORT AREAS
, A MARKET RATE APARTMENTS I DOCTOR'S OFFICE
B LONGFELLOW SCHOOL DEVELOPMENT SITE
C ELDERLY HOUSING DEVELOPMENT SITE
o FUTURE TOWNHOUSE DEVELOPMENT SITE
FEBRUARY 28, 2OC)7
GANTHEFI
CONSTRUCTION
MA R TI N I GANTHER ::;~"'.'::::;.;;:~:'~
GR0UP _ .w.b~.""~.-;.".k~"
t - 1'...."'. _ .,.~O-<t:,,_.,~'J
Architecture- Project Development ~:~:;:::;:::;:::~
Q\-U~'(t"("llr ~(!04 N"..,-t... {".Jd.TUtlt ta.tIUI". 1Ii'
SINCE 1900
Exhibit B - Market Rate Apartments / Doctor's Q'ffice /
Longfellow School & Townhouse Development ~Sites
I-
..
II
~
I-
..
..
>
o
III
ell
, ,
"'-$-.
.
MASTER srrE PL-\..'\!. CONT.
sc.:.~ [.-SO"..o-
MASTER SITE PLAN
PARKSIDE PLACE PHASE THREE
CLEVELAND STREET
..
i
I
I
&.......~.E..m..D....E......~E..~......e.c.~
SOlrnr
G MASTER srn: I~I.A),l
w, '., ..
S(,'AU':: J'-30'-O"
I
.
KEY
I-
..
..
III
l-
II
RESIDENT ROOM
II COMMON AREAS
11I1 RETAIL
LJ CIRCULATION
~.::.r.i0! VERTICAl. ORCULATION
~
~ SUPPORT AREAS
IiiI EXESTlNG
~
c
o
A MARKET RATE APARTMENTS fDOCTOR'S OFlFlCE
B LONGFELLOW SCHOOL DEVELOPMENT SITE
C ELDERLY HOUSING DEVELOPMENT SITE
D FUTURE TOWNHOUSE DEVELOPMENT SITE
FEBRUARY 28, 2007
MARTINI~E~ ",,:,,~""~~~~-~ ~Aa.~rE&
GR0UP 1~::~:::;~; Q~. I E:~ n
Architecture. Prolect Deve10pment ~~~;',;;::~:..':;;; OO~DcmoN
(I (:0 f>'.I: ~ I t,; tt: f ~l:'.' ~ ~ k r f"'< <;. ~... t ~ ~;.l~"~Ij.~-""~:"".;-;; SINCE 19011)
Exhibit C - Elderly Housing Development Site
)
\..
PARKSlDE PLACE PHASE THREE
;'
&;
.
t~
.
n
.
.
j.l'J
wi.!
S"
a:r;
"'e'"
"'"
~
All>
"'"
~
e7i
"
iii
"
II
"
m
~
"
.
Ii
II
o
=
III
"
II!
o
"
l[;
!Ii
,.
!Ii
II ___~
.rq.'lb',; .l:lt~~ ~s'$",e'ln&li.w~~~~mi<:Q"""iU')
PARKWAY AVENUE
~ ::.1 t\ll. m; .mW;.t::,st~ lYP: 1W'Mi'f't''iti\!Ui ~f::ll.1f.i$: :IJ:l~~;C;!:iC.l~:':~ ml:t.'e\#:IWiVUi.'.&!:~ 6Z:Ili' ;:HI.';ll';i' ~ :m!'.,'$:;,'on, ~
: ,I 't;
" If
. .
.
5
.
.
.
t
a
~
f
11
.
m
~
.. : I
~ ill
IiO re II
ill'
&I "
:> "
o tl
III ..
" "
~
"
" I
:'i\
;.: !
~
~
~
~.
"
"
r.
:1
~I
~j
m
-z:!
i!.
'iI- e:. ::. 111.'; Ia':: u-' t'L\fF!,.rfl'iJli:~' St. ti:
w.~... MA.sTER srrE l~L-\..l\,1. CONT.
9'" !iC."\.LE: t..- SU'"aO"
~
MASTER SITE PLAN
PARKSIDE PLACE PHASE THREE
CLEVELAND STREET
,,1';:'
ilt~
il~~
~ ~ Ei
i1~'
-~~~:
,~-,-'!<
l~SE~~~~~~~am~~~wmw~~.~e~~~.~~~.~~~..~E~..Wgj
NOln"tt
"".$"
.
MASTJ.:R srn: I~IA:-.J
S<';Af,I-':: .. _ ~-k)'.(}"
KEY
l-
II
&I
III
...
.
III RESIDENT ROOM
II COMMON AREAS
!Ill RETAIL
@] CIRCULAnO~
~ VERnCALORCULAnON
~ SUPPORT A.Il.EAS
[bIJ EXISllI\IG
lo!
C
o
A MARKET RATE APARTMENTS I DOCTOR'S OmCE
B LONGFELLOW SCHOOL DEVELOPMENT SITE
C ELDERLY HOUSING DEVELOPMENT SITE
D FUTURE TOWNHOUSE DEVELOPMENT SfTE
FEBRUA.RY 21~, 2007
GANn~ER
CO~s-mulcma
MA RT I NI~ER M~~~"'~_"_"'"
''':!. (".....;><~.. I:.....E iii
GR0UP ..........-...;.....,...,
I . K......... ~:c.:...:O".."'l'~...
Architecture. Project Development ::~;..:':~::':-:.'.'..'=
o cor.\:CII.:Ul ~l:.. ~~~r(.. t:.\'I~(,t;; ~C:tJet"'. q.e
SINCE 19113
Cl
Z
j
Cl
z
:>
:i
I:)
~
~
~ ~.
il!:.~~
8zE.:
:1:li 5
llI!CU a ""
2~=:= ~
Oct -" ..
fa:ili ~
IL~
O.,J
OLLl
a::lD
z
o
~
~
tl
~
!:
~
I li!
~ ~
f871.'....:."'" r:71
L!J L.:J
=z
we
:cti
1-::)
zl!
<tl
,,8
~
~
~ ~ mill;
Z.I ~z~,g~~~
~5 ~O.~~;
~~ III a~
CI.l OJ ::c 8'=
Iol I- ~;:
~-$- z .,"
~ . (t) ~.~ Q;~
~ ~:J 'tl"
-0-.l!."
z~ ~::
_0 . ,.
~ $~;
~ ~:;
< .~/l.
:E ~~;
~
N
.....
'"
<
:I:
zo.
<.....
....u
~:s
I-I:!..
-
"'.....
a:::C
.....-
t-~
"'a:::
<
~~
1II.IMIlP:.Cq..w~~~~....-ooo~UI-IDO~~.~_I~~WISlCFt-.ItGI'IIQtj
~
lIll:
I ~ ~
!E ~ ~
j I ~ 51
.. 8 .. 0
.IIH2J
==
9
w
III
I&.
8
a::
Ii:
d
Ii
a
z_
8a~~
==Zz
al::l::l
Blclilo
oa:m..
1IL0..m
O~-"
a: Q;;
II. __
P:':
ClIO
Ill!
gg
11;11.
Will
~.==
z51zz
lu88
"'''''u.u.
~l!ww
I=g:ez
.R~:'J-
~
~
o
o
~~
~~
01
I-$-0
~
g:z
wS!
... t; g
... =;!!
... a: ,~
Z... :2:
..Iii
<(z
,,8
It
~
aG
j~i~~:~
g:~~~~~
Elt:;;",e*
~~g~~~~
i:~~::~
~o~ c. .: G
!ij~~:~
a: 'Ei;
U.I 8~
::t go.
to- 4l:
Z >.
<(a. 0;
e:J 'd.
-0-.!:!..Q
z~ ~~
_l:l ."
~ e~
~ ~;
..'
<( ....
:E ~;
it
...I
W
III
II.
8
II:
i~55
8 ..
1IC Og
fllg2~1IC
2:~!; !
05 -" ..
fj!:!~e: ~
II.~
0...
Ow
a::m
N
.....
~
ziE
::5.....
o..U
.....::5
I- 0...
-
"'.....
a::Q
LLI-
I-~
~a::
~~
....=-.CIIllW~.........~~~~~tIllDIMIIl.MfI.I(tDOl~~.'
u.~
0...
Ow
a::/D
s
~~
~~
~~
o~
~89
:rJ~~
~~~
2~~
I:CZ
we
:E:t
...~
21-
CI:=
as
.,
e1bn.,
~ 'iT
~ It
~
I~
~~g~:;~
lil!W
"~""'<"w
:I "I"Ol.t.1a.e:r.
a: 5;
w a~
:c €"
"'z ~ :
,,"
c(~ c;
c:P tf.
-0-'2.'
z~ 8:
~~ i>:'"
~ "r
~ 3~
~ u,1t
" .
-< ]~
~ ~;~
~ .
leU
5t~~il
i~=~= =
0:>> _N J!
f2fEE =
~~
o ILl
a:m.
~~
o ILl
a::m.
N
.....
'"
-<
::c
zo,.
:5"'"
o,.U
.....:5
....0,.
-
"'.....
a::C
.....-
....~
"'a::
-<
~~
~:-'Qlla\loI~-WJlHllllllOC~50-~.-aao~~~~.,..ql~~~~lN
~
~~
~~
~~
a:z
we
::l:;
I-i
Zli;
<Cz
,,8
HUW
i:i~::.~
~~~:..~Q
j:~~~~;
lie -a~
~ [:
... ..s~
Z ~:
c(~O:
~5-1:
Z l'l: Jj ~
...." . ,..
f-< e"
~ e~
<: ~~
.~ 1.j~
~*riPlllW~-----~~'"llCI~~IO'eQQ~~.lM/iII(al~llll&ld~&.'t'llIlfII'"
EXHIBIT D
Terms of TIF Bond
The TIF Bond shall bear interest at the rate of 6.25% per annum, which interest shall begin
to accrue on the date of issuance of the TIF Bond. The TIF Bond shall mature and the City's
obligation to repay all or any portion of the TIF Bond shall terminate on November 1,2027.
Principal and interest on the TIF Bond will be due and payable on November 1 of each year during
the term of the TIF Bond, commencing in the calendar year in which interest begins to accrue on the
TIF Bond. The amount of the annual payment of principal and interest due on November 1 of each
year shall be equal to the amount shown on the schedule attached hereto as Exhibit E. Each
payment of principal and interest shall be applied first to interest, then to principal.
The TIF Bond shall be subject to the following provisions:
(a) The TIF Bond shall be a special and limited revenue obligation of the City
payable solely from Available Tax Increment which is appropriated by the City Council, and shall
not be a general obligation of the City or a charge against its general credit or taxing powers. Only
funds appropriated by the City Council from the special fund of Tax Incremental District No. 14 of
the City (the "TIF District") shall be used to pay principal and interest on the TIF Bond. The City
Council shall, in a resolution, state that it fully expects and intends that, to the extent Available Tax
Increment is available in the special fund of the TIF District, it will appropriate such funds for the
payment of the principal of and interest on the TIF Bond; however, such payment shall be subject to
future annual appropriations.
(b) City staff shall include in each annual City budget submitted to the City
Council for consideration, the payment from the TIF District special fund of the principal and
interest on the TIF Bond, but only to the extent of Available Tax Increment. If the budget is
QBMKE\6048504.11
approved by the City Council, the City Council shall, at the time of and as part of the approval of
the annual City budget, direct to payment of the TIF Bond, such Available Tax Increment. All
payments on the TIF Bond shall be applied first to interest, then to principal.
(c) If the aggregate amount of Available Tax Increment available and
appropriated to make payments on the TIF Bond during any budget year is less than the aggregate
principal and interest payments payable on the TIF Bond during that budget year, the amount due
but not paid shall accumulate, and the City shall pay accumulated amounts from Available Tax
Increment if, as and when it is available and appropriated for that purpose during the term of the
TIF Bond. If the amount available for transfer from the TIF District special fund for any budget
year exceeds the amount of the principal and interest due and payable on the TIF Bond on the TIF
Bond payment dates occurring during said budget year, then the City shall be entitled to use such
excess funds for any other statutorily eligible TIF District project cost.
(d) On November 1,2027, if there remain amounts outstanding and unpaid on
the TIF Bond, then all interest accrued but unpaid and the remaining balance of principal of the TIF
Bond shall be deemed paid in full, it being understood that upon November 1,2027, the liability of
the City to make any payments on the TIF Bond shall also terminate. The City shall have no
obligation to pay any amount of principal or interest on the TIF Bond which remains unpaid as of
November 1,2027, and the owner(s) ofthe TIF Bond shall have no right to receive payment of such
amounts. All increments received by the City from the TIF District following November 1, 2027
may be used by the City in any manner the City, in its sole discretion, chooses.
If for any reason (other than by voluntary resolution of the City), the TIF District terminatE:s
prior to November 1,2027, and there remain amounts outstanding and unpaid on the TIF Bond,
then all interest accrued but unpaid and the remaining balance of principal of the TIP Bond, shall be
deemed paid in full, it being understood that upon such early termination of the TIF District, the
QBMKE\6048504.11
liability of the City to make any payments on the TIF Bond shall also terminate. The City shall
have no obligation to pay any amount of principal or interest on the TIF Bond which remains
unpaid upon such early termination of the TIF District and the owner(s) of the TIF Bond shall have
no right to receive payment of such amounts.
(e) The actual principal amount of the TIF Bond will be determined following
completion of construction of the redevelopment project based on the actual costs of the
redevelopment project. If the actual costs of the redevelopment project are less than the cost of the
redevelopment project as shown on the project cost breakdown specified in the Development
Agreement, then the amount of the TIF Bond shall be reduced by the difference between the amount
shown on the project cost breakdown and the actual costs of the redevelopment project. The actual
costs of the redevelopment project shall be reviewed and certified by the City's financial advisors.
(f) The City shall have no obligation to make any payments on the TIF Bond
while the CRL, CRL-3 or the REIT, ifit is owner of the Elderly Housing Development Site, is in
default under the Development Agreement.
QBMKE\6048504.11
EXHIBIT E
Schedule of Payments on TIF Bond
QBMKE\6048504.11
(/);
0:::
I.IJ;
...J
:I:
I.IJ.
.
"
'"
"
"
,."
""
Cf.
~
;...
~
..
..
,So
"
~
<>
.. <>
U Q
CIl ..
0' ~
0:. ~
CIl ""
"c:I c:
~ '~
.. ~
:. <(
~ i
0:: ~
(,) ..
..,. l}
;; ll:
o Ii
i= .3
.= -g
1/1 ..
o t:
..llI: ~
J:: "
1/1 ..
o 'l
!l:
t:
..
,.
..
ll:
" "
~ ~ s g~~~i
= ~ -g~~Qli~'C
W ~~!~l~~;~
~ $ ~ N-~ I ~ [!
2:!EliI~Ql_"'E:;::I
~~;~~g-d8lijlh
'3~g~.!!!~~a;~g
~~aaS~<Il~"i8a
lO::~gg'5(ijg~l1)g
~~~~~~~~i~
gO~~~~~~~~~~
~ MN7-o!~~~88
C'O N .......
;j
C
~
~
~
~
U
':;
01
~
o
<.>
:;
ii:
1l
~
'2'
0.
c
1=
"0 i:'
fij 4.lU
~ 1\1's 1:
:S E,~ cECC
Ql 8. ~~C; ~~E~
~ ~ cQ)&~'~ g;~~c
~ ~~~.2:g :i~'E~'~~'~'~ ~
gJEe.e I:: g:..3 8 Q.E,g 2.2:aj
coc:.s.~~:e7ii~;.s~i!ts2c
:;.::~ S.s~~ EQ.~ g:.w 8~~~
:~~~~.'ii.~~g.5~8-g8~~
~ Q 2:~ ~ ~ ~ ~.~ -o~ $ ~ g:g -; ~
co.....<-I--_u-i u.u..V>.::.fl'E
'2":, ~ ~
.2 ~ r:: g:
~ ... ....
~
,,~.
I ~~
sH
H
...
..
~
t
~
~"
'g l
l:
o 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 0 0
~ ~
~ M
~ ~ $ a ~ g g ~
~ i ~ i : 5 ~ ~ ~ ~
I! Q = 2 ; ~ ~ ~ ~ ~ !I ~ :: ~ ; = = = C) Q Q = C) 0
~ e ~ ~.~ ~ ~ ~ ~
n
~!
" ~ ~
~ ~I~
~ i ~ ~ ~ ~
~ ~
iH
~ 0:> :q ..,.
~ s ~ ~
~ 0
~ ~
;: t""-
~ ~
M
_::g~ E~or.:
t"- ..,. 0\ :; 0\ M
!If ';~~~~~~~~a~"'~~a
it~ .~~!~~~~~~~or.~ ~
o .~.~
gg~
~~~
5~'N
g~
i
~
q
n
~ :e
.3
g 2 ~ ~ ~ ~ 6 ~ ~ ~ g ~
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ S l
i
~ ~ ~ ~ 0 ~ :: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ = = = =
i ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ 1
R ~
~ l.I
~ .e
1 ~ ~
....-I!
1
~... !:
~ ~!
.. a li
~ ~
...
= 0 ~ ~ ;, ~ : : ; ~
~I~
~ "N
~ ; : ~
~ OQ 0 !:
~ ~ ~ ~
n
o
~ 0
N
~ 0:1 ~ ~ M ;t '0
0:1..,. l"'" ~
~ ~ : ~ ~ : N
: ~ ~ ~ ..,. ~ ~ ~ ~ ~
;: f'i : ~ ~I ~ ~ ; ~ 0:1 :;; ~
~ ~ ~ ~. ~ ~ ~ ~ '0
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
~ ~ ~ ~
: : : ~ ~ ~ ~
~I~:: ~ ~
ri ~ ~ ~ '"
~ ~ ~ 2 N ; ~ ~ ~ ~ ;
~;~~=~~~
s! ~~~~~~~~~~:~~~~~~~~~~~~
'" ~
~d
N M
00':= 0 0
N N
~ ~ ~
~ ~
~
~ ~
~
~
i
o
'"
~
~
'"
~
'"
ill
~
!it
'"
~
0,
~,
i
l
..
-
Q
;=
..
~
..;
..
..
~
:::!
..
..
..
~
..;
C>
..
C>
Ii
;
~
..
...
..
..;
i
.
1
~
c
$
~
.
E
i;-
ll.
!
..
;!
::!
~
o
is
f-
'"
"
'"
15
~
~
[
J'