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Home My WebLink AboutRaulf Place Redevelopment/Oshkosh Housing Authority Pilot Agreement between the City of Oshkosh, Raulf Place Redevelopment, LLC, and Oshkosh Housing Authority. Original to: Oshkosh Housing Authority Original to: City Clerk Copy to: Finance Copy to: Assessors Copy to: City Attorney PILOT AGREEMENT This PILOT Agreement("Agreement") is entered into effective March�, 2015, by and among the City of Oshkosh, Wisconsin (the "City"), Raulf Place Redevelopment, LLC, a Wisconsin limited liability company (the "Company") and The Housing Authority of the City of Oshkosh, Wisconsin a/k/a Oshkosh Housing Authority, a public body, corporate and politic, organized and existing under the laws of the State of Wisconsin(the"Housing Authority"). RECITALS WHEREAS, the Housing Authority has owned and operated a 104-unit public housing rental portfolio located in the City at 530 North Main Street, Oshkosh, Wisconsin 54901 as set forth in Exhibit A(referred to herein as the"Project")and WHEREAS, in arder to raise debt and equity capital far the substantial rehabilitation and construction of the Project, the Housing Authority anticipates leasing the land and transferring federal income tax ownership of the building to the Company in 2015; and WHEREAS, the�Housing Authority is the sole managing member of the Company and the property manager of the Project, and, as such, exercises exclusive control and authority over the operation of the Project; and WHEREAS, the Housing Authority has loaned substantial sums to the Company in connection with the acquisition and rehabilitation/construction of the Project, and has a right of first refusal to acquire the Project for a nominal sum following expiration of the five (5)-year histaric tax credit compliance period(the "Compliance Period"); and WHEREAS, the Company is obligated to operate the Project as affordable housing in compliance with HUD, and the Housing Authority is solely responsible for ensuring that such restrictions and requirements are satisfied by the Company throughout the Compliance Period; and WHEREAS, the Company will not generate material positive cash flow in excess of its fixed expenses, fees and debt obligations; and WHEREAS, the parties have determined, based upon the foregoing RECITALS, that the Project constitutes property of the Housing Authority that is exempt from taxation under Section 70.11(18) of the Wisconsin Statutes and which may be subject to a payment in lieu of taxes ("PILOT") imposed by the City, as provided in Section 66.1201(22)ofthe Wisconsin Statues; NOW, THEREFORE, acknowledging the receipt of sufficient consideration, the parties agree as follows: 1. Term of PILOT Agreement. The Company shall make a PILOT to the City with respect to the Project for each calendar year beginning in 2015 and ending in the final calendar year of the Project's Compliance Period, now estimated to be calendar year 2020. As required by Section 66.1201(22) of the Wisconsin Statutes, such PILOT shall not exceed the amount that would be levied as the annual tax of the City upon the Project. 2. Computation of PILOT. The PILOT for each calendar year shall be ten percent (10%) of the difference between � one hundred percent (100%) of the tenant's portion of the collected rents for all of the residential rental units in the Project for such calendar year; and � one hundred percent (100%) of the electricity, water, sewer and fuel bills incurred by the Company with respect to the Project far such calendar year. The amounts under clauses (a) and(b) above shall be based upon the financial statements of the Company for the prior calendar year. 3. Pa_yment of PILOT. The Company shall make the PILOT within the time periods applicable to properties that are not exempt from property taxation, as provided in Section 74.11 ofthe Wisconsin Statutes. 4. Obli�ation of Companv and Housing Authoritv. The Housing Authority shall cause the Company to rehabilitate and operate the Project as affordable rental housing throughout the Compliance Period in accordance with the income, rent and other restrictions and limitations imposed by HCTD and the Internal Revenue Code. 5. Obli�ations of City. The City shall furnish or cause to be furnished to the Company and/or Project tenants such services or facilities as are furnished to other property owners and residents of the City on the same basis as such City services are ordinarily provided. The City shall also, to the extent permitted by applicable law, apply or modify existing City codes and ordinances to permit the Housing Authority and the Company to operate the Project as described above throughout the Compliance Period. 6. Notices. A courtesy copy of any notices from the City to the Company pertaining to this Agreement shall also be provided to the equity investor upon its entry into the company and notice of same to the City. 7. Miscellaneous. This Agreement cannot be unilaterally amended, modified or terminated by any party hereto. Each party hereby represents to and for the benefit of the other party that the person executing this Agreement on the signature page on behalf of such party has been duly authorized to execute this Agreement, and that this Agreement has been duly authorized and approved by such party. The benefits of this Agreement shall not be assigned by the Company or the Housing Autharity without City's consent. This Agreement represents the entire agreement of the parties with respect to the subject matter hereo£ This Agreement shall be governed by the laws of the State of Wisconsin. This Agreement may be signed by facsimile or in counterparts. [SIGNATURE PAGE FOLLOWS] 2 IN WITNESS WHEREOF, the parties hereto duly execute this PILOT Agreement effective as of the date first set forth above. CITY OF OSHKOSH �� ! By: rk Rohloff s: Manager �-� ; L� � � v- By: Pamela Ubrig Its: ity Clerk __ ,� ; : � i: i � , ; , .-- `1�!' _. t, �_____... • L �n Lorenso �-�' Its: City Attorney THE HOUSING AUTHORITY OF THE CITY OF OSHKOSH,WISCONSIN A/K/A OSHKOSH HOUSING AUTHORITY, a public bod , co orate and politic, organized and existing under the laws of the State of Wisconsin , ti : Claude enedict Its: Chairman By: Susan van Houwelingen Its: Executive Director RAULF PLACE REDEVELOPMENT,LLC, a Wisconsin limited liability company By: The Housing Authority of the City of Oshkosh, Wisconsin, a public body, corporate and politic, organized and existing under the laws of the State of Wisconsin Its: Mana ing Member � By: Claude Benedict Its: Chairman �9c��.c�� yU-ow��:�2�� __ By: Susan van Houwelingen Its: Executive Director Signature Page to PILOT Agreement EXHIBIT A PROJECT 104 apartment units located at 530 North Main Street, Oshkosh, Wisconsin 54901 more particularly described as: Lots Four(4), Five (5), Twelve (12), Thirteen(13), Fourteen (14), Seventeen (17), Eighteen(18)and the South Twenty(20)feet of Lot Six(6), all in Block One(1) in MERRITT'S ADDN., in the Fourth Ward, City of Oshkosh, Winnebago County, Wisconsin, per Leach's Map of 1894, excepting therefrom the South Twenty(20) feet of said Lot Fourteen(14). That part of Lot Three (3) in Block One (1) in MERRITT'S ADDN., in the Fourth Ward, City of Oshkosh, Winnebago County, Wisconsin,per Leach's Map of 1894, described as follows,viz: - Commencing at the Northwest corner of said Lot; thence south, along the West line of said Lot, 39.69 feet; thence easterly, to a point on the East line of said Lot that is 39.16 feet south of the northeast corner of said Lot; thence north, along the East line of said Lot, 39.16 feet, to the Northeast corner of said Lot;thence west, along the North line of said Lot,to the place of beginning. The South Two (2) feet of Lot Eleven (11) in Block One (1) in MERRITT'S ADDN., in the Fourth Ward, City of Oshkosh,Winnebago County, Wisconsin, per Leach's Map of 1894. A-1