HomeMy WebLinkAboutReso 2001-063 - Redding Hotel w4
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RESOLUTION NO. 2001-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AN ACQUISITION AND PRE-CONSTRUCTION FUNDING
AGREEMENT BETWEEN THE CITY OF REDDING, THE REDDING
REDEVELOPMENT AGENCY, AND CHRISTIAN CHURCH HOMES OF
NORTHERN CALIFORNIA, INC. FOR THE REDDING HOTEL
WHEREAS, Christian Church Homes of Northern California, Inc. (CCH) is a non-profit
public benefit corporation organized under the laws of the State of California and qualifying for
Federal Tax Exempt Status under Section 501 (c)(3) of the Internal Revenue Code; and
WHEREAS,the HOME Investment Partnerships Program(HOME),authorized for funding
by Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, provides grants to
local governments to implement housing strategies designed to increase homeownerhsip and
affordable housing opportunities for low- and very low-income Americans; and
WHEREAS, to facilitate the provision of affordable housing, the City of Redding (City)
desires to provide HOME program funds to CCH, in conjunction with Housing Set-Aside funds
provided by the Redding Redevelopment Agency(Agency),for the sole purpose of assisting CCH
in the acquisition and rehabilitation of the Redding Hotel which,after rehabilitation,will include a
minimum of forty(40) units of affordable housing for lower-income seniors; and
WHEREAS, the parties desire for the City to provide HOME program funds to CCH, in
conjunction with Housing Set-Aside funds provided by the Agency, for the acquisition of the
property, for interim operating costs and for construction assistance. CCH also intends to use the
HOME and Housing Set-Aside funds to support an application for low-income Housing Tax Credits
(LIHC) as described in the Tax Reform Act of 1986 (as amended), and up to one additional,
consecutive re-application if the initial application is unsuccessful. The terms of the provision of
the funds, a portion of which will be loaned and a portion of which will be granted, are more
particularly described in the Acquisition and Pre-Construction Funding Agreement. If CCH
receives the LIHCs,the parties will enter into an Owners Participation Agreement(OPA)which will
incorporate the terms and conditions of this Agreement and which will set forth with more
particularity the mutual obligations of the parties regarding the development of the project; and
WHEREAS, the City, in cooperation with the Agency, now desires to enter into this
Acquisition and Pre-Construction Funding Agreement setting forth certain covenants, conditions,
and restrictions regarding the City's provision of HOME program funds to CCH,in conjunction with
Housing Set-Aside funds provided by the Agency,and the manner in which CCH will hold and use
the funds.
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/ ' NOW, THEREFORE, BE IT RESOLVED by the the City of Redding as follows:
1. That the foregoing recitals are true and correct.
2. The City Council of the City of Redding hereby approves the Acquisition and Pre-
Construction Funding Agreement between the City,the Agency,and CCH,providing
up to$1.375 Million Dollars($1,375,000)for the acquisition of the Redding Hotel,
for interim operating costs, and for the preparation of an application of LIHC to
accomplish the rehabilitation of a minimum of 40 units of rental housing affordable
to lower-income seniors. The City also approves, in concept,providing additional
funds of up to $1.225 Million($1,225,000)for construction and relocation, subject
to the execution of an Owners'Participation Agreement with CCH. In any event,the
total aggregate amount approved from all Agency and City sources for this project
is $2.6 Million Dollars ($2,600,000).
3. The Mayor is hereby authorized and directed to sign all necessary documents on
behalf of the City Council and the City Clerk to attest the signature of the Mayor.
4. A true copy of the Acquisition and Pre-Construction Funding Agreement referred to
herein is attached and made a part hereof.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular
meeting of the City Council of the City of Redding on the 17th day of April 2001, as duly adopted
at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Cibula, Kight, Pohlmeyer, Stegall & McGeorge
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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David L. .- eorge lyor/
ATTEST: APPROVED AS TO FORM:
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ACQUISITION AND PRE-CONSTRUCTION FUNDING AGREEMENT BETWEEN
REDDING REDEVELOPMENT AGENCY, CITY OF REDDING AND
CHRISTIAN CHURCH HOMES OF NORTHERN CALIFORNIA, INC.
THIS AGREEMENT is made by and between the REDDING REDEVELOPMENT
AGENCY, an agency of the State of California, ("AGENCY"), the CITY OF REDDING, a
municipal corporation, ("CITY"), and CHRISTIAN CHURCH HOMES OF NORTHERN
CALIFORNIA, INC., a California Nonprofit Public Benefit Corporation, ("CCH").
RECITALS
A. CCH is a nonprofit public benefit corporation organized under the laws of the State
of California and qualifying for Federal Tax Exempt Status under Section 501 (c)(3)of the Internal
Revenue Code.
B. California Health and Safety Code Section 33334.3 of the Community
Redevelopment Law requires that housing units assisted with funds from the Low- and Moderate-
Income Housing Fund be made available at affordable housing costs to persons and families of low-
or moderate-income. California Health and Safety Code Section 33413 of the Community
Redevelopment Law requires that low- or moderate-income households that are removed or
destroyed as part of a project financed in whole or in part by the AGENCY be replaced within four
(4)years.
•
C. To facilitate the provision of affordable low-income rental housing and to fulfill a
portion of its replacement housing obligations as defined in California Health and Safety Code
Section 33413, AGENCY desires to loan and grant Housing Set-Aside funds and CITY desires to
loan and grant HOME Program funds to CCH for the sole purpose of assisting CCH in the
acquisition and rehabilitation of a property to result in a minimum of forty(40)rental units available
to seniors at affordable housing cost as defined by HOME Program guidelines, and available at
affordable housing costs for the term of this agreement or the length of affordability of rents
identified in the LIHC application,whichever is longer(the"Project"). The property,which is the
subject of the Project, is located at 1727 Market Street and described in Exhibit 1, "Legal
Description and Site Map,"attached hereto and incorporated by this reference(the"Property"). The
Property, known as the Redding Hotel, includes ninety-three(93)units, sixty-seven(67)of which
are occupied as of April 03, 2001.
D. The parties desire for AGENCY to loan Housing Set-Aside funds and CITY to loan
HOME Program funds to CCH for the acquisition of the Property and for pre-construction associated
costs(the"Acquisition and Pre-Construction Loan"). The parties also desire for AGENCY to grant
Housing Set-Aside funds and CITY to grant HOME Program funds to CCH to support pre-
construction operating costs (the"Operating Grant"). CCH intends to use the Housing Set-Aside
and HOME Program loan and grant funds to support an application for Low-Income Housing Tax
Credits ("LIHC") as described in the Tax Reform Act of 1986 (as amended), and one additional,
consecutive reapplication if the initial application is unsuccessful. If CCH receives the LIHC,
AGENCY and CCH will enter into an Owner's Participation Agreement ("OPA") which will
incorporate the terms and conditions of this Agreement and which will set forth with more
particularity the mutual obligations of the parties regarding the rehabilitation of the Project. The
Acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 2
Acquisition and Pre-Construction Loan will convert from a deferred loan to a residual receipts loan
as set forth in this Agreement and CCH will apply to secure additional project financing. If CCH
does not receive the LIHC following the second application,AGENCY and CCH shall enter into the
OPA with a modified scope of rehabilitation and CCH shall apply to CITY for a loan of up to One
Million Dollars($1,000,000)in HOME Program funds to carry out the rehabilitation. In any event,
the total amount of funds loaned and granted to CCH for this project by the AGENCY and the CITY
shall not exceed Two Million Six Hundred Thousand Dollars ($2,600,000) in the aggregate.
E. On February 22,2000,the AGENCY provided a grant of up to Seventy-Six Thousand
Dollars ($76,000) for the purpose of evaluating project feasibility(the"Pre-Development Grant"),
the work elements ofwhich as completed are summarized in Exhibit 2,"Pre-Development Tasks and
Activities," attached hereto and incorporated by reference.
F. AGENCY, CITY, and CCH now desire to enter into this Acquisition and Pre-
Construction Funding Agreement setting forth certain covenants, conditions, and restrictions
regarding the AGENCY's and CITY's provision of Housing Set-Aside funds and HOME Program
funds to CCH and the manner in which CCH will use the funds.
AGREEMENT
1. TERM. The term of this Agreement shall be fifty-five(55) years from the date of
this Agreement or the length of the affordability of rents identified in the LIHC application,
whichever is longer.Notwithstanding the full repayment of the AGENCY's or CITY's Acquisition
and Pre-Construction loan as provided for in this Agreement,either prior to or at the due date of such
loan,all terms and conditions of this Agreement shall remain binding on the parties for the full term
of this Agreement.
2. ACQUISITION AND PRE-CONSTRUCTION LOAN.
A. Deferred Acquisition and Pre-Construction Loan("Deferred Loan").AGENCY and
CITY shall loan to CCH an amount not to exceed One Million One Hundred Fifty Thousand Dollars
($1,150,000), evidenced by separate promissory notes in favor of AGENCY and CITY, the
respective amounts of which are to be later specified by AGENCY and CITY.
B. The Deferred Loan promissory notes shall bear simple interest at three percent(3%)
per annum. Interest shall start to accrue on the amounts advanced on the note at the time of the
advance as set forth in this Agreement and the promissory notes.
C. The promissory notes shall be secured by Trust Deeds in favor of AGENCY and
CITY.
D. Residual Receipts Acquisition and Pre-Construction Loan ("Residual Receipts
Loan"). Within ninety(90) days of the date that CCH receives notice of any award of LIHC which
Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 3
reflects the terms and conditions of this Agreement, the parties shall execute a new loan which
converts the Deferred Loan,including any and all accrued interest,into the Residual Receipts Loan
as permanent financing with the following terms:
(1) The Residual Receipts Loan shall be evidenced by promissory notes in favor
of AGENCY and CITY in amounts to be specified in the Owners'Participation Agreement executed
pursuant to Section 5 of this Agreement ("OPA"), which shall be secured by Trust Deeds on the
Property.The Trust Deeds may be recorded subordinate to conventional permanent financing and/or
the payment of any deferred Developer's Fee(as defined in Title 4,California Code of Regulations,
Section 10327(c)(2))upon the prior written consent of AGENCY.At the time of recordation of the
new Trust Deeds for the Residual Receipts Loan in favor of AGENCY and CITY, AGENCY and
CITY shall cancel the promissory notes evidencing the Deferred Loan and shall reconvey to CCH
any prior outstanding original instruments securing the Deferred Loan promissory notes.
(2) The promissory notes shall bear simple interest at three percent (3%) per
annum. Interest shall start to accrue at the time the promissory notes are executed.
(3) The Residual Receipts Loan made pursuant to this Section 2 shall be a loan
with annual payments as provided in this Section 2, contingent upon the availability of residual
receipt funds,and with payment in full of the remaining balance of principal and interest forty(40)
years from the date of the promissory notes on the Deferred Loan issued pursuant to subsection A
of this Section 2. For purposes of this Agreement,"residual receipts"shall mean any cash generated
by Project operations remaining after:
(a) The payment of:
(i) All amounts required to be deposited in the reserve fund for
replacements;
(ii) All obligations of the project other than the Acquisition and
Pre-Construction Loan including amortized payments on superior loans and payment of any
outstanding developer fee; and
(b) The segregation of:
(i) An amount equal to the aggregate of all special funds required
to be maintained by the Project;
(ii) All tenant security deposits held.
(4) Within sixty(60)days after the end of each fiscal year,any residual receipts
realized from the operation of the Project shall be deposited in a separate residual receipts account.
The residual receipts account shall be under the exclusive control of the AGENCY and CITY, and
•I Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 4
AGENCY or CITY may withdraw any such funds from the residual receipts account at any time and
for any purpose. Any such residual receipts deposited in the residual receipts account shall be
credited as a payment on the Acquisition and Pre-Construction Loan and shall be applied first to
reducing the interest on the loan.
(5) No later than six(6)months prior to the beginning of the second full year of
operation of the Project, and annually thereafter, CCH shall provide AGENCY with a cash flow
analysis and revenue projection prepared by a disinterested certified public accountant for the
purpose of confirming CCH's repayment projections of the residual receipts loan.
(6) CCH may pay in full, or any part, of the Acquisition and Pre-Construction
Loan prior to the due date without penalty.
(7) The full amount of the loan,including principal and all accrued interest,shall
become immediately due and payable upon the occurrence of any of the following:
(a) Except as specifically provided in this Agreement or the OPA, title
to the Property is transferred by sale or other means;
(b) Development of the Project is not completed by the deadline set forth
in Section 6C of this Agreement;
(c) CCH fails to utilize the Property for Project; or
(d) A breach of this Agreement, as defined in Section 11 of this
Agreement, or a breach of the OPA.
E. Except as set forth in Subsections H and I below and Section 4 of this Agreement,
until such time as CCH receives a preliminary reservation of LIHC or receives notification that the
second and final application for the LIHC has been denied, the Acquisition and Pre-Construction
Loan shall be a deferred loan with payment in full of principal and interest forty(40)years from the
date of the promissory note.
F. CCH shall use the proceeds of the Acquisition and Pre-Construction Loan solely for
the following items and no others:
(1) Payment of up to Nine Hundred Thousand Dollars ($900,000) toward the
purchase price of the Property.
(2) Payment of up to Two Hundred Fifty Thousand Dollars ($250,000) in pre-
construction costs incurred after March 06, 2001, the date the AGENCY and CITY approved in
concept the funding commitments contained within this Agreement, which costs are set forth in
Exhibit 3, "Pre-Construction Costs" attached hereto and incorporated herein by reference. CCH
Acquisition and Pre-Construction Punding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 5
shall secure the prior written consent of AGENCY for use of these funds for any other costs or
expenses other than those set forth in Exhibit 3.
(3) Payment of standard closing costs of escrow.
G. CCH may pay in full,or any part of,the Acquisition and Pre-Construction Loan prior
to the due date without penalty.
H. If CCH does not receive an award of LIHC which reflects the terms and conditions
set forth in this Agreement on or before June 01,2002, after two successive applications,and CCH
does not enter into an OPA with modified terms as provided in Section 5 of this Agreement on or
before August 01,2002,which date may be extended in advance by mutual written agreement of the
parties,AGENCY and CITY, in their sole discretion, shall have the unconditional, unilateral right
to do any of the following:
(1) Require CCH to sell the Property within six (6) months at a price and with
terms acceptable to AGENCY and immediately pay to AGENCY and CITY all proceeds from the
sale upon which AGENCY and CITY shall deem the Acquisition and Pre-Construction Loan
promissory notes fully satisfied and shall release CCH from its obligation to AGENCY and CITY
under the Acquisition and Pre-Construction Loan promissory notes; or
(2) Require CCH to transfer to AGENCY title to the Property and all of CCH's
interests and rights in any and all architectural and engineering plans, appraisals, environmental
reports,and any and all relevant third party reports concerning the Property and the Project that have
been funded with the Pre-Development Grant and the Acquisition and Pre-Construction Loan.Upon
completion of such a transfer to the satisfaction of AGENCY,AGENCY and CITY shall deem the
Acquisition and Pre-Construction Loan promissory notes fully satisfied and shall release CCH from
its obligation to AGENCY and CITY under the Acquisition and Pre-Construction Loan promissory
notes. ; or
(3) In the event sale or transfer cannot be accomplished as provided above,
declare a default on the Acquisition and Pre-Construction Loan promissory notes for a failure to
obtain LIHC and enforce the power of sale contained in the Trust Deeds.
I. The full amount of the Acquisition and Pre-Construction Loan,including principal and
all accrued interest, shall become immediately due and payable upon the occurrence of either of the
following:
(1) Except as specifically provided in this Agreement, title to the Property is
transferred by sale or other means; or
(2) A breach of this Agreement.
Acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 6
3. OPERATING GRANT.
A. The Operating Grant shall be for the sole purpose of paying a portion of the normal
and ordinary expenses incurred in operating the Property until renovation of the Property is complete,
such expense items being limited to those shown in Exhibit 4, "Operating Expense Items." The
Operating Grant shall be disbursed to CCH monthly beginning July 01, 2001 in the amount of
Eighteen Thousand Seven Hundred Fifty Dollars($18,750)per month for twelve(12)months up to
a total amount not to exceed Two Hundred Twenty-Five Thousand Dollars($225,000). CCH shall
maintain accurate and complete records of monthly income and expenses. Within sixty (60) days
following full disbursement of the Operating Grant to CCH, CCH shall submit to the AGENCY an
audit of the operating income and expenses incurred following the date CCH acquired the Property.
The audit shall be performed by an auditor mutually selected by the AGENCY and CCH. The total
amount of surplus cash remaining as shown by the audit shall be returned to the AGENCY within
thirty (30) days of completion of the audit.
4. DISPOSITION OF ACOUISITION AND PRE-CONSTRUCTION LOAN
PROCEEDS; ESCROW
A. The Acquisition and Pre-Construction Loan set forth in Section 2 of this Agreement
shall be completed through an escrow established with Chicago Title ("Escrow Holder"). Close of
Escrow shall occur on a date that is forty-five (45) days or less from the date of this Agreement
("Close of Escrow").
B. At Close of Escrow,Escrow Holder shall record the Trust Deeds in the Shasta County
Recorder's Office pursuant to the escrow instructions of AGENCY, CITY, and CCH.
C. Concurrent with recordation of the Trust Deeds, Escrow Agent shall issue an ALTA
policy of mortgage title insurance in the combined amount of the promissory notes set forth in
Section 2 above.Said policy shall show title to the property vested in CCH,and insure AGENCY and
CITY as beneficiary.
D. Within five(5)business days of the date escrow holder confirms receipt of approved
escrow instructions from all parties,the AGENCY/CITY shall release the amount of the Acquisition
and Pre-Construction Loan in the form of a check made payable to Escrow Holder. At Close of
Escrow, Escrow Holder shall disburse the funds as directed by the approved escrow instructions.
E. Pursuant to the terms of this Agreement and the Acquisition and Pre-Construction
Loan promissory notes,AGENCY shall retain the Two Hundred Fifty Thousand Dollars($250,000)
for pre-construction costs as set forth in Exhibit 3, and shall advance to CCH, upon presentation to
AGENCY of a written request for disbursement, the amount of loan proceeds necessary to pay for
each itemized pre-construction cost described in Exhibit 3 as the cost for each such item is incurred.
5. OWNERS'PARTICIPATION AGREEMENT. Within sixty(60)days of the date
that CCH receives notice of any award of LIHC which reflects the terms and conditions of this
acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 7
Agreement, AGENCY and CCH shall enter into the OPA which will incorporate the terms and
conditions of this Agreement and which will set forth with more particularity the mutual obligations
of AGENCY and CCH regarding the development of the Project. If CCH does not receive an award
of LIHC which reflects the terms and conditions set forth in this Agreement on or before June 01,
2002, CCH shall, on or before August 01, 2002, enter into an OPA with modified terms.
6. RESPONSIBILITIES OF CCH.
A. The projected budget is set forth in Exhibit 5,"Pro-Forma Budget"attached hereto and
incorporated herein by reference, and reflects "not-to-exceed" total project costs. CCH, in
consultation with AGENCY and CITY shall finalize the Project budget and incorporate it by
reference into the OPA; however, the parties shall endeavor to ensure the final Project budget is
substantially consistent and similar with Exhibit 5.
B. CCH shall use the Acquisition and Pre-Construction Loan proceeds to acquire the
Property and to support an application for Low-Income Housing Tax Credits("LIHC")as described
in the Tax Reform Act of 1986(as amended),and up to one additional, consecutive reapplication if
the initial application is unsuccessful.
C. All units of the Project shall be rehabilitated and ready for occupancy within forty-
eight (48) months from the date of this Agreement.
D. Affordability Restrictions.
(1) The affordability restrictions of this Section will remain in full force and effect
for the term of this Agreement or the length of affordability of rents identified in the LIHC
application, whichever is longer(the "Affordability Period").
(2) One hundred percent(100%)of the units on the property shall be occupied by
households qualified for occupancy of a LIHC unit as more specifically defined by Internal Revenue
Code Section 42 and the California Tax Credit Allocation Committee.
(3) Rent charged for each of the units during the Affordability Period shall not
exceed the amount allowed for a LIHC unit.
(4) CCH shall prepare an annual report to be submitted to AGENCY by February
28'of each year during the Affordability Period.The report shall contain information on the income
levels of the households occupying each unit, the rent charged by CCH for each unit, and any other
project information that is required by State redevelopment law and reasonably requested by
AGENCY.
E. Non-Discrimination Restrictions. All units constructed under this Agreement shall
be open, upon rental of any portion thereof,to all persons regardless of race,color,religion,national
origin,or ancestry.All contractors and subcontractors utilized to construct any portion of the Project
Acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California, Inc. Page 8
shall provide equal opportunity for employment,without discrimination as to race,sex,marital status,
color, religion, national origin, or ancestry.
All leases utilized for the developed units shall contain the following language:
The Lessee herein covenants by and for himself or herself, his or her heirs,
executors,administrators,and assigns,and all persons claiming under or through him
or her, that this lease is made and accepted upon and subject to the following
conditions:
That there shall be no discrimination against or segregation of any person or
group of persons, on account of race, color, creed, religion, sex, marital status,
national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy,
tenure,or enjoyment of the premises herein leased nor shall the Lessee himself,or any
person claiming under or through him or her,establish or permit any such practice or
practices of discrimination or segregation with reference to the selection, location,
number, use,or occupancy,of tenants, lessees, sublessees,subtenants, or vendees in
the premises herein leased.
F. CCH shall not initiate any action that results in the displacement of any residents or
businesses residing in the existing improvements on the Property without the prior written consent
of the AGENCY. CCH shall advise any subsequent post-acquisition tenants residing in the existing
improvements on the Property that the Property has been acquired for the Project and that they will
not be eligible to receive relocation assistance upon termination of tenancy.
G. It is anticipated by the Parties that displacement of residents will occur as part of the
rehabilitation of the Project. CCH shall coordinate Project activities and relocation activities so as
to ensure compliance with all applicable Federal, State, and local relocation laws and regulations,
including without limitation,compliance with the Uniform Relocation Assistance Act,the California
Relocation Assistance Law,California Government Code Section 7260 et.seq.,and all Federal,State,
and local regulations implementing such laws. The proceeds of the Relocation Loan shall be used
exclusively to pay costs incurred in carrying out relocation activities that are incurred following
execution of this Agreement, but in no event shall the AGENCY's and CITY's total aggregate
assistance of loans and grants to CCH under this Agreement exceed $2,600,000.
H. Developer Fee. CCH shall be entitled to collect the Developer Fee(as defined
in Title 4, California Code of Regulations, Section 10327 (c)(2)) in an amount not to exceed Four
Hundred Thousand Dollars ($400,000) as shown in Exhibit 5 hereto.
I. Architectural/Design Review. Within thirty (30) of execution of this
Agreement,CCH shall provide preliminary exterior elevations and design concepts to the AGENCY
for the AGENCY's review and approval. The CITY MANAGER shall have fifteen (15)days from
CCH's submission to review and approve the preliminary exterior elevations and design concepts.
• Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 9
If the CITY MANAGER does not approve of these elevations and design concepts, the CITY
MANAGER shall provide a reason for its disapproval. CCH shall then submit revised elevation and
design concepts withing fifteen (15) days and the CITY MANAGER shall have fifteen (15) days
following CCH's resubmission to approve or deny these revised elevations and design concepts.
7. COMPLIANCE WITH LAWS. CCH shall comply at all times during the term of
this Agreement with all applicable laws and requirements, including any applicable Federal, State,
or local laws or regulations, and shall secure at their full cost and expense any and all permits,
applications or other requirements in connection therewith.
8. INSURANCE.
A. CCH shall procure and maintain for the duration of the Agreement insurance against
claims for injuries to persons or damages to property which may arise from or in connection with
CCH's operation and use of the premises. The cost of such insurance shall be borne by CCH.
(1) Minimum Scope of Insurance: Coverage shall be at least as broad as Insurance
Services Office Commercial General Liability coverage(occurrence form CB 0001). Claims made
form is also acceptable.
(2) Minimum Limits of Insurance: CCH shall maintain limits no less than General
Liability - $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If
Commercial General Liability Insurance or other form with a general aggregate limit is used, the
general aggregate limit shall be twice the required occurrence limit or$2,000,000.
(3) Deductibles and Self-Insured Retentions: Any deductibles or self-insured
retentions must be declared to and approved by the Risk Manager of the City of Redding. At the
option of the Risk Manager, either: the insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects the AGENCY, the CITY, its officers, officials, employees and
volunteers; or CCH shall procure a bond guaranteeing payment of losses and related investigations,
claims administration, and defense expenses.
(4) Other Insurance Provisions: The general liability policy is to contain, or be
endorsed to contain, the following provisions:
(a) The AGENCY,the CITY,its officers,officials,employees,agents,and
volunteers are to be covered as insured as respects: liability arising out of activities performed by or
on behalf of CCH; products and completed operations of the CCH; premises owned, occupied, or
used by the CCH. The coverage shall contain no special limitations of the scope of protection
afforded to the AGENCY, the CITY, its officers, officials, employees, agents, or volunteers.
Acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 10
(b) CCH's insurance coverage shall be primary insurance as respects the
AGENCY,the CITY,its officers,officials,employees,agents,and volunteers.Any insurance or self-
insurance maintained by the AGENCY, the CITY, its officers, officials, employees, agents, or
volunteers shall be excess of CCH's insurance and shall not contribute with it.
(c) Each insurance policy required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in
limits except after thirty(30) days prior written notice has been given to the entity.
(5) Hazard Insurance: CCH shall keep the improvements now existing or hereafter
erected on the Property insured against loss by fire, hazards included within the term "extended
coverage,"and such other hazards as the AGENCY and the CITY may require and in such amounts
for the full term of the Agreement.
All insurance policies and renewals thereof shall be in form acceptable to the AGENCY and
shall include a standard mortgage clause in favor of and in form acceptable to the AGENCY and the
CITY. Subject to the rights of the holder of a prior deed of trust, the AGENCY and the CITY shall
have the right to hold the policies and renewals thereof,and CCH shall promptly furnish to AGENCY
and CITY all renewal notices and all receipts of paid premiums. In the event of loss,CCH shall give
prompt notice to the insurance carrier and AGENCY and CITY. AGENCY and CITY may make
proof of loss if not made promptly by CCH.
(6) Acceptability of Insurers: Insurance is to be placed with insurers with a current
A.M. Best's rating of no less than A:VII.
(7) Verification of Coverage: CCH shall furnish the Risk Manager of the City of
Redding with certificates of insurance and original endorsements effecting coverage required by this
clause.The endorsements are to be signed by a person authorized by that insurer to bind coverage on
its behalf. All endorsements are to be received and approved by the Risk Manager of the City of
Redding before funds are disbursed under this Funding Agreement.
9. INDEMNITY/HOLD HARMLESS.
A. CCH shall indemnify and defend the AGENCY,the CITY,and their officials,officers,
employees, agents, and volunteers against and hold them harmless from any and all claims, losses,
damages, and liability for damages,including attorney's fees and other costs of defense incurred by
the AGENCY, the CITY, and their officers, employees, agents, or volunteers, whether for damage
to or loss of property or injury to or death of person, including properties of the AGENCY and the
CITY and injury to or death of the AGENCY's or CITY's officials, officers, employees, agents, or
volunteers arising, directly or indirectly out of, or resulting from CCH's activities hereunder or the
Project described herein or the construction of the Project,unless such damage, loss, injury or death
is caused by the negligence or willful misconduct of the AGENCY, the CITY, and their officials,
officers, employees, agents or volunteers.
• Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 11
B. The AGENCY and the CITY shall indemnify and defend CCH and its officials,
officers,employees,agents,and volunteers against and hold them harmless from any and all claims,
losses, damages, and liability for damages, including attorney's fees and other costs of defense
incurred by CCH, its officials,officers,employees,agents, or volunteers, whether for damage to or
loss of property, or injury to or death of person, including properties of CCH and injury to or death
of CCH's officials,officers,employees,agents,or volunteers arising directly or indirectly out of,or
resulting from the AGENCY's or CITY's activities hereunder or the Project described herein or the
construction of the Project,unless such damage, loss, injury or death is caused by the negligence or
willful misconduct of CCH, its officials, officers, employees, agents, or volunteers.
10. DEFAULT OR BREACH. The occurrence of the following shall constitute a breach
or default of this Agreement by the parties: Failure to perform any provision of this Agreement if the
failure to perform is not cured within sixty(60)days after notice of the failure has been given to the
defaulting party. If the breach or default cannot be reasonably cured within sixty (60) days, the
defaulting party shall not be in breach or default of this Agreement if the defaulting party commences
to cure the breach or default within the sixty (60) day period and diligently and in good faith
continues to cure the default.
Notices given under this Section shall specify the alleged breach or default,and shall demand
that the defaulting party perform the provisions of this Agreement within the applicable time period,
or the Agreement is terminated. No such notice shall be deemed a termination of this Agreement
unless the non-defaulting party specifically so elects in the notice.
The non-defaulting party,at any time after defaulting party commits a breach or default of this
Agreement, can cure the breach or default at the defaulting party's cost. If the non-defaulting party,
at any time,by reason of the defaulting party's breach or default, pays any sum or does any act that
requires the payment of any sum, the sum paid by the non-defaulting party shall be due immediately
from the defaulting party to the non-defaulting party at the time the sum is paid, and if paid at a later
date shall be subject to interest at an annual rate of ten percent (10%). The sum, together with any
accrued interest, shall be an additional sum owed to the non-defaulting party pursuant to this
Agreement.
11. STATUS OF PARTIES. CCH is an independent contractor for purposes of this
Agreement. Neither party to this Agreement is, or may represent itself to be, an agent, partner,
employee, or joint venturer of or with the other party by reason of this Agreement. Neither party is
authorized to enter into agreements or create any debts or obligations on behalf of the other party.
12. NONRECOURSE OBLIGATION. Neither CCH nor any partner ofCCH shall have
any direct or nondirect personal liability for payment of the principal of, or interest on, the
Acquisition and Pre-Construction Loan or the performance of the covenants of CCH under the Deeds
of Trust securing such loans. The sole recourse of the AGENCY and the CITY with respect to the
principal of, or interest on, the Acquisition and Pre-Construction Loan and defaults by CCH in the
Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 12
performance of its covenants under the applicable Deeds of Trust shall be to the property described
in the Deeds of Trust.
13. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached
hereto and incorporated herein by reference, contains all the representations and the entire
understanding and Agreement between the parties pertaining to the loan of AGENCY and CITY
funds to CCH for the Project or any other matters connected therewith. All correspondence,
memoranda, or oral or written Agreements pertaining to the loan of AGENCY and CITY funds to
CCH for the Project,which originated before the date of this Agreement are null,void and no longer
in force and with no effect,and are replaced in total with this Agreement unless otherwise expressly
stated in this Agreement. This Agreement shall not be altered, amended, or modified except by a
writing signed by the AGENCY, he CITY, and CCH.
14. INVALID PROVISIONS. In the event any covenant,condition,or provision of this
Agreement is held invalid by any court of competent jurisdiction,the invalidity of the same shall in
no way affect any other covenant, condition, or provision thereof, provided that the validity of any
such covenant,condition,or provision does not materially prejudice the AGENCY,the CITY or CCH
in their respective rights and obligations contained in the valid covenants,conditions,and provisions.
15. NOTICE. Any notices or demands that may be given by either party hereunder shall
be deemed to have been fully and properly given when made in writing, enclosed in a sealed
envelope,and deposited in the United Stated Post Office, certified mail,postage prepaid,addressed
as follows:
REDDING REDEVELOPMENT CHRISTIAN CHURCH HOMES OF
AGENCY and CITY OF REDDING NORTHERN CALIFORNIA, INC.
Executive Director, Redding Redevelopment Executive Director
Agency and Christian Church Homes of Northern
City Manager, City of Redding California, Inc.
777 Cypress Avenue 303 Hegenberger Road, Suite 201
P.O. Box 496071 Oakland, California 94621-1419
Redding, California 96049-6071
With a copy to:
M. David Kroot
Goldfarb & Lipman
1300 Clay Street, 9th Floor
Oakland, CA 94612
16. ATTORNEY'S FEES. In any dispute between the parties to this Agreement, the
prevailing party shall be entitled to recover from the other party all reasonable costs, including
without limitation, reasonable attorney's fees. "Prevailing party" shall include without limitation,
a party who dismisses an action for specific performance or for damages in exchange for sums
•
Acquisition and Pre-Construction runding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 13
allegedly due,performance for covenants allegedly breached or consideration substantially equal to
the relief sought in the action,or which receives from the other party,in connection with any dispute,
performance substantially equivalent to any of these. No sum for attorney fees shall be included in
calculating the amount of a judgment for purposes of deciding whether a party is entitled to its costs
or attorney fees.
17. BINDING. Subject to the restrictions against assignment contained in this
Agreement, this Agreement is and shall be binding upon the parties hereto and their successors and
assigns, and shall remain in full force and effect until terminated as provided in this Agreement.
18. AUTHORITY OF SIGNATORIES. The undersigned individuals represent and
warrant that they each have full authority to enter into and be bound by this Agreement on behalf of
themselves and each entity on whose behalf they execute this Agreement. Don H. McCreary is
authorized to execute this Agreement on behalf of CCH by resolution of CCH's board of directors,
a true and correct copy of which is attached hereto as Exhibit 6 and incorporated herein by reference.
19. ASSIGNMENT. Neither this Agreement nor any interest in this Agreement will be
assignable by any party without the prior written consent of the other party. CCH shall not cause or
permit any sale,assignment,conveyance,lease,or transfer in any other form of or with respect to this
Agreement,or the Property, or any part thereof or any interest therein,or contract or agree to do any
of the same, without the prior written approval of AGENCY and CITY. Any sale, assignment,
conveyance, lease, or transfer without AGENCY's written consent constitutes a breach of this
Agreement. Notwithstanding the above, CCH may assign, transfer, lease, or convey its interest in
the Property to an affiliated nonprofit corporation controlled by CCH or to a limited partnership in
which CCH or its subsidiary nonprofit corporation is the managing general partner for purposes of
applying for the LIHC.
20. HEADINGS,REFERENCE,JOINT&SEVERAL LIABILITY,GOVERNING
LAW. The captions heading the various sections of this Agreement are for convenience and shall
not be considered to limit, expand, or define the contents of the respective sections. Masculine,
feminine,or neuter gender,and the singular and the plural number shall each be considered to include
the other whenever the context so requires. If any party consists of more than one person, each such
person shall be jointly and severally liable.This Agreement shall be interpreted under California law
and not in favor of or against any party.
21. NO PARTY DEEMED DRAFTER. In the event of a dispute between the parties
to this Agreement over the meaning of this Agreement, no party shall be deemed to have been the
drafter of this Agreement,and the principle of law that contracts are construed against the drafter shall
not apply.
22. TIME OF ESSENCE. Time is of the essence in this Agreement. Failure to comply
in a timely manner with the provisions of this Agreement shall be deemed a breach of the Agreement.
• Acquisition and Pre-Construction Funding Agreement
Redding Redevelopment Agency,City of Redding and
Christian Church Homes of Northern California,Inc. Page 14
23. DATE OF AGREEMENT. The date of this Agreement shall be the date the
Agreement is signed by the AGENCY.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives on the days and year set forth below.
AGENCY: REDDING REDEVELOPMENT AGENCY
Dated:
PAT KIGHT, Chairman
ATTEST: APPROVED AS TO FORM:
KURT STARMAN, Secretary David E. Tranberg, Assistant City Attorney
CITY: CITY OF REDDING
Dated:
DAVID L. MCGEORGE, Mayor
ATTEST: APPROVED AS TO FORM:
Connie Strohmayer, City Clerk W. LEONARD WINGATE, City Attorney
CCH: CHRISTIAN CHURCH HOMES OF
NORTHERN CALIFORNIA, INC.
Date:
DON H. MCCREARY, Executive Director
Exhibit 1
Legal Description and Site Map
ALL THAT CERTAIN REAL PROPERTY SITUATE IN CITY OF REDDING, COUNTY
OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
LOTS 4, 5 AND 6 IN BLOCK 38, AS SHOWN ON THE MAP OF TOWN OF REDDING,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER SEPTEMBER 25, 1872
IN BOOK OF OLD PLATS AT PAGE 65, SHASTA COUNTY RECORDS.
ASSESSOR'S PARCEL NUMBER 101-120-19
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N Redding Hotel LEGAL DESCRIPTION.%%pd
Exhibit 2
PRE-DEVELOPMENT TASKS AND ACTIVITIES
Land Option $ 3,000
Engineering/Architectural Services 30,000
Survey 4,000
Soil Analysis 4,000
Phase I Environmental Analysis 2,000
Attorney Fees 3,000
Preliminary Relocation Plan 5,000
Market Study 10,000
General Administration 5,000
Contingency 10,000
TOTAL $ 76,000
N:\Redding Hotel'\.Eahibit 2.wpd
• - I
Exhibit 3
Pre-Construction Costs
Title Cost for Initial Acquisition $ 10,000
Architectural and engineering 200,000 to 240,000 (1/2 to be expended by June 15) 120,000
Survey 4,000
Environmental Phase 1 (update) 1,000
Consultant 9,000
Attorneys 18,000
-Option document
-Initial Partnership
-DDA
-Nonprofit
Plan Check and Other Fees to the City 10,000
Relocation Plan 12,000
Market Residential Study(update) 1,000
Administrative 24,000
Tax Credit Application and Reservation Fee 17.000
226,000
Contingency 24.000
$ 250,000
N:'Redding Hotel\E,hibit 3.wpd
. EXHIBIT 4
BUDGET APARISION
FACILITY ..EDDING
•
NO. OF UNITS 77
BUDGET PUPA
INCOME
5122 POTENTIAL RENTS (0277,200 • 3,600
5140 COMMERCIAL RENTS (z) 30,240 393
5170 PARKING 0
5220 VACANCIES (6(129,600) (1,683)
5240 COMMERCIAL VACANCIES @) (4,500) (58)
NET RENTAL INCOME 173,340 2,222
OTHER INCOME
5410 INTEREST INCOME
5910 LAUNDRY 720 9
5921 TENANT SERVICES 0
5930 CLEANING 0
5990 MISC. INCOME 0
5995 CITY SUBSIDY (c)225,000
TOTAL OTHER INCOME 225,720 2,894
TOTAL INCOME 399,060 5,116
•
EXPENSES
ADMINISTRATIVE
6210 ADVERTISING 400 5
6250 MARKETING 500 6
6310 OFFICE SALARIES 22,560 293
6311 OFFICE EXPENSES 1,200 16
6320 MANAGEMENT FEE (6)38,110 495
6325 SOCIAL SERVICES 5,000 65
6326 SOCIAL SERV. SUPPORT 0
6328 SOCIAL SERV. SUPPLIES 200 3
6330 ADMINISTRATIVE SALARIES 32,400 421
6331 EMPLOYEE SUITE 0 0
6332 COMMERCIAL TENANT CONCESS. 0
6340 LEGAL 11,000 143
6350 AUDIT 4,500 58
6351 BOOKKEEPING FEE (7)4,620 60
6360 TELEPHONE 2,240 29
6370 BAD DEBT EXPENSE 0 0
6390 MISC. BUSINESS EXPENSE 600 8
6391 SOCIAL PROGRAM 200 3
6392 DUES & MEMBERSHIPS 0 0
6393 TRAVEL & CONFERENCE 1,000 13
6394 COMPUTER EXPENSE 3,000 39
TOTAL ADMINISTRATIVE 127,530 1,635
•
BUDr-COMPARISION
•
FACILITY AEDDING
NO. OF UNITS Ti
BUDGET PUPA
UTILITIES
6450 ELECTRICITY 42,320 550
6451 WATER 5,000 65
6452 GAS (%) 24,000 312
TOTAL UTILITIES (9) 71,320 914
OPERATING &MAINTENANCE
6515 BUILDING SUPPLIES 2,500 32
6510 JANITOR/CLEANING PAYROLL 12,500 162
6517 JANITORIAL CONTRACTS 0 0
6519 EXTERMINATOR 2,000 26
6525 RUBBISH REMOVAL (to) 6,300 82
6530 SECURITY 3,000 39
6531 EMERGENCY STANDBY 3,600 47
6536 LAWN, GROUNDS 0
6537 GROUNDS CONTRACT 0
6540 MAINTENANCE PAYROLL 26,000 338
6541 REPAIRS MATERIALS 5,000 65
6542 REPAIRS CONTRACT (Ii) 35,000 455
6544 WINDOW WASHING 0 0
6545 ELEVATOR 6,000 78
6546 HEATING/COOLING 8,000 234
6560 PAINTING & DECORATING 2,000 26
6561 DRAPERY REPL, CLEANING 750 10
6562 CARPET REPL., CLEANING 3,000 39
6563 MINOR FURNISHING & EQUIP 1,000 13
6570 EQUIPMENT&TOOLS 1,000 13
6571 MAINT. EQUIP. OPER. & REPAIR 0 0
6590 MISC. OPERATING 2,000 26
6591 CABLE OPERATING 0 0
TOTAL OPER. & MAINT. 129,650 1,662
INSURANCE &TAXES
6710 PROPERTY TAX 1,500 19
6711 PAYROLL TAXES 7,425 96
6712 UNEMPLOYMENT INS 971 13
6719 MISC. TAXES, LICENSES 200 3
6720 PROPERTY INS. (IL) 9,625 181
6721 BOND INSURANCE 220 3
6722 WORKER'S COMP (1 ) 4,580 38
6723 HEALTH & DISABILITY 17,596 229
6724 PENSION 0 0
6729 OTHER INSURANCE 1,200 16 i
TOTAL INSURANCE & TAXES 46,003 590
TOTAL EXPENSES 374,503 4,801
NET BEFORE DEBT SERVICE 24,557 315
BUDG' 'OMPARISION
FACIUTY :DOING
NO. OF UNITS n
BUDGET PUPA
DEBT SERVICE
6820 MORTGAGE INTEREST 25,760 330
6821 MORTGAGE PRINCIPAL 0
6823 RESERVE FOR REPLACEMENT 0
6824 OTHER RESERVE 0
6850 MORTGAGE INS. PREMIUM 0
TOTAL DEBT SERVICE 25,760 330
NET AFTER DEBT SERVICE (1,203) (18)
7051 CAPITAL EXPENDITURES 0
Hotel Redding Budget
FOOTNOTES
1. $300/ per month x 77 units total
2. Commercial space = 20% of total of 21,000 sq. Ft.
4,200 sq. ft. X .60 sq.ft. = $2,520 per month x 12 = $30,240
3. 36 vacant units x $300 x 12 months + 10% vacancy
4. Estimated at 15% based upon Lorenz Hotel experience
5. Commitment from the City of Redding
6. $3,200 per month or $41.56 pupm
7. $5 pupm accounting/bookkeeping fee (5 x 77 x 12)
8. Estimated gas cost increased by 50% (3/01)
9. Based upon the assumption that commercial units are separately metered and paid for.
10. Based upon the assumption that the Hotel will pay rubbish removal for commercial
tenants.
11. Includes $30,000 for initial repairs to bring building up to code, rekey, and bring to a safe,
decent standard.
12. Based upon current premiums for Lorenz Hotel plus an anticipated 25% increase.
S:\SHARED\OPS\NC\TEAM\W END Y\FOOTNO TE.RED
Exhibit 5
• Pro Forma Budget
Page 1 Redding Hotel-TCAC 9%Credits Summary 3/27/01 9:58 AM
A B C D E F G
1 CHRISTIAN CHURCH HOMES: Redding Hotel
2 Permanent During Const Rate
3 City Operating Grant 225,000 225,000
4 AHP 175,500 175,500 0.00%
5 City Acquisition Loan 900,000 900,000 3.00%
6 City Loan 1,475,000 1,475,000 1.00%
7 Investor Capital Contributions 3,824,130
8 Sponsor Equity/Deferred Developer Fe 6,226 Net Dev. Fee 393,774
9 TOTAL SOURCES 6,605,856
10
11 Total Required During Constr. 6,204,151
12 Construction loan 3,428,651 subsidy as a%of dev c 38.6%
13 Construction period 12 plus two months post c.o.
14 Average%Outstanding 55%
15 Rate 9.50%
_16
17 CALCULATION OF CREDIT AMOUNT
18 Basis 4,006,298
19 Deduct any grant amounts 0
20 Eligible Basis 4,006,298
21 High cost factor 4,006,298 100.00%
22 Applicable fraction 4,006,298 100.000%
23 Federal Credit Amount 338,532 8.45%
24 State Credit Amount 1,201,889 30.00%
25
26 Equity from Federal Credit 2,877,524 85.00% 0.8336502
27 Equity from State Credit 1,021,606
28 Total Equity 3.899,130
29 Syndication Costs 75,000
30 Net Equity 3,824,130
31
32
33 Maximum Basis 4,006,298
34[Actual Basis per Costs 4,767,544
i '.•••
Rage 2, • Redding M 1C 9%Croats Cacti 3/27/01 I .
r � .
A I 0 I C I D I E 1 ¢ '•
1 SOURCES AND USES OF FUNDS TOTAL COST COrutruCf on BASIS FOR _ "
2 Period 9%CREDIT ._ _
3 LAND COST/ACQUISITION .
4 Lord Cost or Value 0 • -
5 Demoittlon 0 0 • . ; •
6 Lepel 5,000 5,000 .
7 Total Land Cost or Value 5,000 . . .. . .
B Exitng Improvements Value 1.125.000 1,125,000 t
9 Off-Ste improvements 0
10 Told AcquWBon Cost 1,130.000 1,130.000 - .
11 REHABlUTATION ,.
12 ate Work 50000 50000 50000 .• .
13 Structures 2.912.116 2,912.116 2912116 - • ' •• .
14 Asbestos Removal 150.000 150.000 15000) e ' -
15 General Requirements 0 t ' . • -
16 Contractor Overhead 0 i
17 Contractor Proftt 0 -
18 Total Rehablltal cn Cost 3,112116 3,112,116 F • _
19 NEW CONSTRUCTION
20 Slte Wont 0 0
21 Strictures-Housing. 0 0 1�7 • - • . ,
22 Structures-Chid Care 0 -
23 General Requirements 0 -
24 Contractor Overhead 0 ,
25 Contractor Proftt 0 0 • .
26 TotalNew Construction Costs 0 0 _• "
27 ARCH/TEC/URAL FEES '
28 Design 150.000 150.000 150.000 t•..t
_
29 Supervision 40.000 40,000 40,000 • -
30 Total Architectural Cosh 190,000 190,000 Corstr.Loa'
31 Survey and Engineering 15,000 15,000 15,000 Interest Post - _ - •
32 CONSIR.INTEREST dFEES Corutrucilor •'
33 Corot.Loan Interest(Conventional) 233.434 233.434 179.147 54.287 '' : • _•
34 Const.Loan Interest(Soft Loans) 0 0 0 r .
35 Redevelopment Interest 0 0 0
36 Origination Fee 25.715 25,715 25.715 - '
37 Credit Enhancement&Application Fee 0
38 Bond Premium 0 0 •
39 Taxes 15,000 15,000 15,000
40 insurance 20.000 20.000 20.000
41 Otte and Recording 10,000 10,000 10.000 • . • - -
42 Total mtr
Cauctfon Interest and Fees 304.149 304.149 e .. .
43 PERMANENT FINANCING •
44 Loan Fees 3,936 1,969 _ '. .
45 Crede Enhancement 5;Appacatfon Fee 0 0 -
.
46 Tate and Recordhp 5,000 .
47 Other 0 0t - •
48 Total Pea
Permanent Financing Costs 8.938 1.969 r•
49 LEGAL FEES • =' .• .. ..
•
50 Lender Legal Costs Paid by App4cant 6,000 6.000 5,000
51 Other-Owner Legal 25,000 25,000 25.000 i . .
52 Total Attorney Costs 33,000 33,000 .
•
53 RESERVES •
54 Rent Reserves 59,736
55 Other - .
56 Total ROwrve Costs 59.736 0 • . .
57 Total Appraisal and Market Study Costs 6,000 6,000 6,000 •
58 Total Cartsfitsc50n Contingency Costs(12%) 376,546 376,566 376,566 - .
59 OTHER
60 lax Credit App./Alias./Manttortnp fees 32.351 32.351 - .
61 Entitlement/Misc.Studies 10,000 10,000 10,000 '• .
62 Local Development Impact Fees 0 0
•
63 PertNt Processing Fees 25,000 23.000 25,000 . ! ..
64 MiscellaneoMiscellaneousStudies 5,000 5,000 5,000 ... .. •
65 Marketing 25,000 26,000 . ..
66 Relocation Expenses 603.303 600,000 300.01]0 7
67 Furntstings 10,000 10.000 10,000 '
68 Operating Losses during hording/cone.Period 225,000 225.000
69 Sott Cost Contingency 35,000 35.000 35.000
70 Total Other Costs 970,351 970351 ' .
71 Told Protect Cost 6,205.856 6,139,151 4.367.544 T
72 DEVELOPER COSTS .. •
73 Developer Overhead/Profit 400.003 50,000 400.000 •- ,
74 Cororltant/Processkp Agent 0 _ •
IS Protect AQrnkkstrattart • _ . .
76 Broker Fees paid by owner .
77 Construction Management Oversight
78 Other . . •
79 Total Developer Costs 400.000 53000 400,000 _ -
BO ••
81 TOTAL PROJECT COST 6.605.856 6.189,151 4.767.544 •
82 Syndication Costs • •
53 Legal-Syndlcanon 36.000 • .
B4 Audit 10,000
B5 Consultant-Syndication 30,000 15,000 t • '
86 Bridge Loan Interest 0 0 .
87 Total Syndication Costs 75.000 15.000 _
•.
t-
Exhibit 6
CHRISTIAN CHURCH HOMES OF NORTHERN CALIFORNIA, INC.
CORPORATE AUTHORIZING RESOLUTION
At a duly constituted meeting of the Board of Directors of Christian Church Homes of
Northern California, Inc., a California 501(c)3 nonprofit public benefit corporation (the
"Corporation"), the following resolution was adopted on February 20, 2001.
WHEREAS the Board of Directors of the Corporation desires to rehabilitate the Hotel
Redding in Redding, CA in order to create approximately 40 units of affordable housing for low-
income seniors;
WHEREAS the Board of Directors of the Corporation deems it to be in the best interests
of the Corporation to purchase the Redding Hotel, manage the facility, and relocate the existing
tenants during the rehabilitation period;
WHEREAS the Board of Directors of the Corporation deems it to be in the best interests
of the Corporation to obtain an allocation of tax credits from the California Tax Credit
Allocation Committee for the rehabilitation of the Hotel Redding; and
WHEREAS the Board of Directors of the Corporation deems it to be in the best interests
of the Corporation to enter into any and all documents, including but not limited to a deed of
trust, a promissory note, a loan agreement, a regulatory agreement, and any other types of
agreements necessary to consummate the grants and loans required for this development;
NOW THEREFORE, BE IT RESOLVED: That the Corporation shall submit an
application for obtain an allocation of tax credits from the California Tax Credit Allocation
Committee in connection with the development of this project;
FURTHER RESOLVED: That the Corporation shall submit an application for funding
from the Redevelopment Agency of the City of Redding;
FURTHER RESOLVED: That either Donald H. McCreary, President and Chief
Executive Officer of the Corporation, or Win Marshall, Chief Finance Officer, shall be
authorized and directed, on behalf of the Corporation, to execute any and all documents,
including but not limited to option agreements, a deed of trust, a promissory note, loan
agreements, etc., and shall take any and all further actions necessary to consummate the activity
described in the foregoing resolution.
M ,
... t
I, the undersigned, hereby certify that the foregoing is a true copy of the Resolution
adopted by the Board of Directors of the above-mentioned Corporation, and that said Resolution
is in full force and effect.
Dated: a7 Y UwILi2001
By: �_� .� �: / {signature)
v
Anne 11/457W,66-- (print name)
Its: ,/,, r. viii ./ (title)
S
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