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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/01/2016 - SECOND READING OF ORDINANCE NO. 025, 2016, AUTHORIAgenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY March 1, 2016 City Council STAFF Helen Matson, Real Estate Services Manager Sue Beck-Ferkiss, Social Sustainability Specialist SUBJECT Second Reading of Ordinance No. 025, 2016, Authorizing the Sale of City-Owned Property at 1506 West Horsetooth Road, Fort Collins, Colorado, to the Housing Authority of the City of Fort Collins. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on February 16, 2016, authorizes conveyance of the property at 1506 West Horsetooth Road to the Housing Authority of the City of Fort Collins (FCHA). The City purchased this property in 2003 as part of the Affordable Housing Land Bank program. Since its purchase, the City has leased this 8.3-acre property for residential/horse uses. This Ordinance follows from City Council’s approval of Resolution 2016-008, which gave staff direction to continue to work with FCHA on this purchase and to bring forward an ordinance authorizing sale of the property to FCHA. An ordinance to make changes to the affordability requirements in the Land Bank Program Code language will be considered by City Council in March. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, February 16, 2016 (w/o attachments) (PDF) 2. Ordinance No. 025, 2016 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY February 16, 2016 City Council STAFF Helen Matson, Real Estate Services Manager Sue Beck-Ferkiss, Social Sustainability Specialist SUBJECT First Reading of Ordinance No. 025, 2016, Authorizing the Sale of City-Owned Property at 1506 West Horsetooth Road, Fort Collins, Colorado, to the Housing Authority of the City of Fort Collins. EXECUTIVE SUMMARY The purpose of this item is to authorize conveyance of the property at 1506 West Horsetooth Road to the Housing Authority of the City of Fort Collins (FCHA). The City purchased this property in 2003 as part of the Affordable Housing Land Bank program. Since its purchase, the City has leased this 8.3-acre property for residential/horse uses. This Ordinance follows from City Council’s approval of Resolution 2016-008, which gave staff direction to continue to work with FCHA on this purchase and to bring forward an ordinance authorizing sale of the property to FCHA. An ordinance to make changes to the affordability requirements in the Land Bank Program Code language will be considered by City Council in March. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Of the 6 properties that are included in the Affordable Housing Land Bank Program, staff selected the Horsetooth site as the first build-out of the Land Bank Program. Staff issued a Request for Proposals (RFP) looking for developers to design and construct a project at the Horsetooth site, complying with the requirements of the Land Bank Program. The timing of the RFP was to allow the selected developer to be able to apply for state tax credits and Community Development Block Grant Disaster Relief funding that will be available in 2016. Three proposals were received and two developers were interviewed in December. The selection committee selected FCHA’s proposal that contained three options. The most favorable option to the City was Option 3. This option does not require additional federal grant dollars from the City, it provides units for households in the 30% AMI, and it offered a sales price is close to 90% of the fair market value of the property. The preliminary conceptual proposal as submitted in the RFP process, proposed 96 units of affordable rental housing with one to four bedrooms and community facilities, with density of 12 units per acre. Staff and FCHA have prepared a draft Agreement of Purchase and Sale of Real Property (Agreement), a copy of which is attached as Exhibit B to the Ordinance. Council approval on this Agreement will provide FCHA the documentation needed for its application for the state tax credits. Specific terms are included in the Agreement that are pertinent to this project and are listed below: 1. The use of the property will be limited by a covenant requiring the following: ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 a. Use of the Property shall be restricted to rental housing for households at or below 50% AMI for Fort Collins or at such higher level as may be permitted by amendment of the Land Bank Ordinance. b. FCHA will be required to commence development within 24 months of closing and shall obtain building permits for the construction of all such housing units within 48 months of closing. If building permits are not obtained with that time frame, title to the portion of the Property for which building permits have not been issued shall revert to the City, unless otherwise agreed to by the City Manager in accordance with the City Code and upon a finding the FCHA has exerted a good faith and diligent effort in pursuing its development, but has suffered delays caused by unforeseen circumstances not in the control of FCHA. c. If the Property is ever not used for affordable housing, then the City may re-enter and recover title to the Property. 2. The purchase price of the property is $1,107,000, unless the purchase price is reduced by mutual agreement of the parties based on changes to the design of the Project, increases in construction pricing and/or changes in interest rates. A price reduction of more than ten percent ($110,700) would be subject to approval by the City Council. 3. Development Process a. FCHA shall prepare preliminary conceptual designs for the development of the Property and submit to the City within 45 days of the Effective Date of this Agreement. b. The City shall conduct a conceptual design review with FCHA upon receipt of plans by FCHA and both parties shall work in good faith to agree on the final conceptual design for the development within 10 days. c. FCHA shall prepare all plans and submittals necessary to present a complete Project Development Plan (“PDP”) within 120 days of reaching agreement on the final conceptual design. FCHA is responsible for all development applications and for paying all related fees required by the development review process. The City shall cooperate with FCHA in its pursuit of any approvals and permits, including the granting of easement and encroachment permits necessary for the development. d. FCHA is solely responsible for all expenses incurred in preparing for the development of the Property and the City shall have no obligation to reimburse, share in, or assist FCHA in covering any costs incurred by FCHA under the Agreement. 4. The conveyance of the property is contingent upon: a. FCHA obtaining all required regulatory approvals for the Development, including if necessary, an amendment to the City Code allowing Land Bank parcels to be developed for rental housing affordable to households at 60% AMI as long as the overall affordability for the Development is still at or below 50% of AMI. b. FCHA providing proof reasonably satisfactory to the City that FCHA can obtain the necessary financing to construct the development according to the approved Project Development Plan. 5. Closing: a. The parties agree to close within 30 days of contingencies being satisfied. If the City Council adopts the Ordinance, the Agreement will be signed once the Ordinance takes effect. Agenda Item 8 Item # 8 Page 3 CITY FINANCIAL IMPACTS The consideration for the conveyance of this Property to FCHA will generate $1,107,000, unless this amount is negotiated downward after final design of the project. The revenue collected for this property will be used to acquire additional Land Bank properties. PUBLIC OUTREACH As part of its proposal, the FCHA will hold neighborhood meetings to inform the neighbors what is planned for this site. ATTACHMENTS 1. Location map (PDF) -1- ORDINANCE NO. 025, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE SALE OF CITY-OWNED PROPERTY AT 1506 WEST HORSETOOTH ROAD, FORT COLLINS, COLORADO, TO THE HOUSING AUTHORITY OF THE CITY OF FORT COLLINS WHEREAS, the City is the owner of the real property located at 1506 West Horsetooth Road, Fort Collins, Colorado, as more particularly described on Exhibit “A”, attached and incorporated herein by reference (the “Property”); and WHEREAS, the Property was purchased in 2003 as part of the City’s Affordable Housing Land Bank Program (the “Program”), pursuant to Sections 23-350 to 23-355 of the City Code (the “Land Bank Ordinance”); and WHEREAS, the purpose of the Program is to help affordable housing providers secure sites for future affordable housing development throughout the City by purchasing sites that will likely appreciate in the future while they are less expensive, and holding them for five to fifteen years; and WHEREAS, the Land Bank Ordinance sets criteria for acquiring land for the Program, and places limits on how the City can dispose of Program properties, including that:  any sale must be to a housing provider legally bound to the City to provide rental housing for households at or below 50% of area median income (“AMI”) for Fort Collins, or homeownership housing for households below 60% of AMI;  the land cannot be sold for speculation, appreciation, development of nonresidential uses, or development of market-rate housing;  the property must remain affordable in perpetuity, and if it is ever not used for affordable housing the City must have the right recover title to the property;  the land may not be sold by the City for more than 90% of its fair market value as determined by the City; and  the proceeds from the sale of any Program property must be returned to the affordable housing trust fund to be used for additional property acquisitions for the Program; and WHEREAS, in November 2015, based on the City Council’s expressed interest in developing one or more of the Program properties, the City issued a Request for Proposals (“RFP”) to find a qualified development team to construct an affordable housing development on the Property in accordance with the requirements of the Program (the “Project”); and WHEREAS, after reviewing the three proposals received by the City, the City selected the Housing Authority of the City of Fort Collins (“FCHA”) as its development partner for the Project; and WHEREAS, FCHA provided three approximate purchase prices for the Horsetooth Property based on the income levels of the eventual renters of homes in the development; and -2- WHEREAS, all three options would provide units for households at 30% of AMI and below, which is the City’s highest affordable housing need; and WHEREAS, two of the purchase options cap the income of residents at 50% of AMI as required by the City Code, but would require additional grant funding from the City to complete; and WHEREAS, the third option (“Option 3”) would allow FCHA to pay the City more for the land and would not require additional City grant funding, but would require more flexibility in the AMI levels of residents by including some housing for residents at 60% of AMI; and WHEREAS, Option 3, which is FCHA’s preferred option, would require an amendment to the City Code to increase the AMI limit for rental households from 50% of AMI to 60% of AMI; and WHEREAS, City staff also supports Option 3 because it still provides housing at an average income level of 50% of AMI, preserving the original intent of the Program, but also gives FCHA flexibility to provide a more economically diverse community while maximizing the amount that FCHA can pay the City for the Horsetooth Property, returning more capital to the Program; and WHEREAS, on January 26, 2016, the City Council adopted Resolution 2016-008 expressing the Council’s support for the Project, including a willingness to amend the Land Bank Ordinance to adjust the affordability requirements if necessary, and stating a present intent to convey the Property to FCHA subject to the Council’s authorization by ordinance as required by the City Code; and WHEREAS, City staff and FCHA have negotiated a proposed Agreement of Purchase and Sale of Real Property for the Property, a copy of which is attached hereto as Exhibit “B” and incorporated herein by reference (the “Agreement”); and WHEREAS, under the Agreement FCHA would pay up to $1,107,000 for the Property with the understanding that the City and FCHA may agree to reduce this amount based on changes to the design for the Project, increases in construction pricing and/or changes in interest rates; and WHEREAS, any reduction in price that exceeds ten percent of the purchase price ($110,700) would be subject to further approval by the City Council; and WHEREAS, there are two existing residential leases on the Property that FCHA would assume if FCHA acquires the Property before the leases expire in October, 2016; and WHEREAS, the City would reserve from the sale to FCHA existing utility and right-of- way alignments on the Property; and -3- WHEREAS, FCHA’s use of the Property would also be limited by deed restrictions based on the requirements of the Land Bank Ordinance, including that:  use of the Property shall be restricted to rental housing for households at or below 50% AMI for Fort Collins or at such higher level as may be permitted by amendment of the Land Bank Ordinance;  FCHA will be required to commence development of all housing within 24 months of closing on the Property, and obtain building permits for the construction of all such housing units within 48 months of closing; if all such building permits have not been obtained within such time period, then title to that portion of the Property for which building permits have not been issued shall revert to the City, unless otherwise agreed by the City Manager upon a finding that FCHA has exerted a good faith and diligent effort in pursuing the Project but has suffered delays caused by unforeseen circumstances not reasonably within the control of FCHA; and  if the Property is ever not used for affordable housing, then the City may re-enter and recover title to the Property; and WHEREAS, under the Agreement the sale of the Property would be contingent on FCHA obtaining all required regulatory approvals for the Development, including an amendment to the City Code allowing Land Bank parcels to be developed for rental housing affordable to households at 60% AMI as long as the overall affordability for the Development is still at or below 50% of AMI, and providing proof reasonably satisfactory to the City that FCHA can obtain the necessary financing to construct the Project according to an approved plan for development; and WHEREAS, staff intends to bring forward an ordinance for the City Council’s consideration in March amending the Land Bank Ordinance to permit rental housing affordable to households at 60% AMI; and WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of real property owned by the City, provided the Council first finds by ordinance that such sale or other disposition is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby finds that the conveyance of the Property to FCHA as provided herein is in the best interests of the City. -4- Section 3. That the Mayor is hereby authorized to execute the Agreement in substantially the same form as is attached as Exhibit B, as well as such other documents as are necessary to convey the Property to FCHA on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of the Property, as long as such changes do not materially increase the size or change the character of the property interest to be conveyed. Section 4. That the City Manager is hereby authorized to negotiate the final purchase price pursuant to the Agreement and consistent with this Ordinance provided that such modified purchase price shall be subject to City Council approval in the event it is an amount lower than $996,300. Introduced, considered favorably on first reading, and ordered published this 16th day of February, A.D. 2016, and to be presented for final passage on the 1st day of March, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on this 1st day of March, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk RET Form Version 3/16/07 - 14 - EXHIBIT A Property Legal Description Draft 2-9-16 RET Form Version 3/16/07 AGREEMENT OF PURCHASE AND SALE OF REAL PROPERTY City Sale of 1506 West Horsetooth Road THIS AGREEMENT is made and entered into this [_____] day of [______], 2016 (the “Effective Date”), by and between the HOUSING AUTHORITY OF THE CITY OF FORT COLLINS, a body corporate and politic under the laws of the state of Colorado (“FCHA”), and THE CITY OF FORT COLLINS, COLORADO, a municipal corporation, (“City”). RECITALS: A. On April 17, 2001, the Fort Collins City Council adopted Ordinance No. 048, 2001, establishing the City’s Land Bank Program at Article XI of Chapter 23 of the City Code (the “Land Bank Ordinance”). The purpose of the Land Bank Program is to help affordable housing providers secure sites for future affordable housing development throughout the City by purchasing sites that would likely appreciate in the future while they were less expensive, and holding them for five to fifteen years. B. In November 2015, based on the City Council’s expressed interest in developing one or more of the City’s Land Bank properties, the City issued a Request for Proposals to find a qualified development team to construct an affordable housing development on the Land Bank property on Horsetooth Road in accordance with the requirements of the Land Bank Ordinance, and ultimately selected FCHA. C. FCHA’s preliminary conceptual proposal, dated November 30, 2015 (“Proposal”), proposes 96 units of affordable rental housing with one to four bedrooms and community facilities, with density of 12 units per acre (the “Development”). D. On January 26, 2016, the City Council adopted Resolution 2016-008 expressing the Council’s support for the Development, including a willingness to amend the Land Bank Ordinance to adjust the affordability requirements if necessary, and stating a present intent to convey the Horsetooth Road property to FCHA subject to the Council’s authorization by ordinance as required by the City Code. E. On March 1, 2016 the City Council adopted Ordinance No. ___, 2016, authorizing the conveyance of the Property as defined herein. F. FCHA has completed a Feasibility Analysis, preliminary design for cost estimates, initiated a market study, and is developing joint state/federal tax credit and Community Development Block Grant – Disaster Recovery applications for the Development. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and FCHA agree to be legally bound whereby City agrees EXHIBIT B RET Form Version 3/16/07 - 2 - to convey to FCHA, and FCHA agrees to acquire from City, the Property as defined below on the terms and conditions set forth in this Agreement. 1. Description of Property. The real property which is the subject matter of this Agreement consists of two parcels of real property located in Larimer County, Colorado, which are legally described on Exhibit A, consisting of one page, attached hereto and incorporated herein by reference (the “Property”). Unless reserved by the City as described below, the Property includes all improvements located thereon and all of City’s rights, title and interest in and to all appurtenances thereto, including but not limited to the following: A. Appurtenances Generally. The Property shall include any fences, buildings, landscaping, and other improvements now located thereon, including all fixtures of a permanent nature. In addition, the Property shall include all of the City’s right, title and interest in and to easements, future interests and rights to the same belonging and inuring to the benefit of the Property, and in and to all strips and gores of land lying between the Property and adjoining property or streets, roads or highways, open or proposed. B. Water Rights. All water, water rights, corporate stock relating to the use of water, springs, spring rights, wells, well rights, ditches, ditch rights, reservoir rights, tributary, non-tributary, and not non-tributary water, appurtenant to, customarily used with or upon, or relating to the use of water on the Property, and any other water or water rights, owned by the City and located on or appurtenant to the Property, whether or not the same have been adjudicated, including but not limited to three unadjudicated wells that may not be producing or functioning (“Wells”). C. Taps. All water taps, gas taps, and sewer taps belonging or in any way appertaining to the Property. D. Mineral Rights. Any and all interests in all minerals, ores, and metals of any kind and character, and all coal, asphaltum, oil, gas, or other like substances including sand and gravel, and all geothermal resources in, on, or under the Property and all other mineral rights as are owned by City at the time of this Agreement. 2. Method of Conveyance. A. Form of Deed. City will convey the Property to FCHA at Closing, as defined in paragraph 12 below, by general warranty deed in substantially the form attached as Exhibit B. The personal property portion of the Property, if any, shall be transferred to FCHA by City at Closing by bill of sale or other appropriate transfer document, free and clear of all liens and encumbrances. The wells will be conveyed by quitclaim deed with no warranties. RET Form Version 3/16/07 - 3 - B. Covenant/ Possibility of Reverter/ Right of Entry. Pursuant to Section 23- 354 of the Code of the City of Fort Collins, the use of the property shall be limited by a covenant requiring the following: (1) Use of the Property shall be restricted to rental housing for households at or below 50% of the Area Median Income (AMI) for Fort Collins or at such higher level as may be permitted by amendment of the Land Bank Ordinance. (2) FCHA shall commence development of all housing within 24 months of Closing, and shall obtain building permits for the construction of all such housing units within 48 months of Closing. If all such building permits have not been obtained within such time period, then title to that portion of the Property for which building permits have not been issued shall revert to the City, unless otherwise agreed by the City Manager in accordance with Section 23-354 of the City Code upon a finding that FCHA has exerted a good faith and diligent effort in pursuing the Development but has suffered delays caused by unforeseen circumstances not reasonably within the control of FCHA. (3) If the Property is ever not used for affordable housing, then the City may re-enter and recover title to the Property. C. Reservations by City. City may reserve to itself the following interests: (1) A Utility Easement over the north 15 feet of the south 42.5 feet of Parcel I of the Property; and (2) A Public Right-of-Way over the south 27.5 feet of Parcel I of the Property. D. Existing Leases. The Property is currently subject to two existing leases (the “Leases”): one for 1506A West Horsetooth (house) and one for 1505B West Horsetooth (garage apartment). The Leases expire on October 31, 2016. If Closing occurs prior to October 31, 2016, the City agrees to assign the Leases to FCHA, and FCHA agrees to assume the Leases from the City at Closing. 3. Purchase Price. The total purchase price of the Property will be One Million One Hundred Seven Thousand Dollars ($1,107,000.00), unless reduced by mutual agreement of the parties based on changes to the design of the project, increases in construction pricing and/or changes in interest rates. Any reduction in price that exceeds ten percent of the purchase price ($110,700) is subject to approval by the Fort Collins City Council. The purchase price will be payable by FCHA to City as follows: A. No earnest money deposit is required in connection with this transaction, the mutuality of the promises of the parties hereto being deemed adequate RET Form Version 3/16/07 - 4 - consideration. B. The entire amount of the purchase price, subject to closing costs and customary prorations, will be payable by FCHA to City in immediately available funds at Closing. 4. Title Insurance. A. Within fifteen (15) calendar days following the Effective Date, City will provide to FCHA a Title Insurance Commitment (the “Title Commitment”) from Land Title Guarantee Company (“Title Company”). The Title Commitment must show title to the Property in City, subject only to those exceptions shown on Schedule B-2 to the Title Commitment that are acceptable to FCHA. City is responsible for the cost of the Title Commitment and Title Insurance. B. If the Title Commitment discloses title defects unsatisfactory to FCHA and subject to which FCHA need not take title, FCHA may give City written notice of such defects by the date ten (10) calendar days after FCHA’s receipt of the Title Commitment, and no later than ten (10) calendar days after notice of any title change. City must attempt in good faith to cure such defects prior to the date of Closing, at its expense, without in any other manner affecting the terms of this Agreement. C. If any instrument or deposit is necessary in order to correct a defect in or objection to title, the following apply: (1) Any instrument will be in a form and contain terms and conditions Title Company may reasonably require so as to be sufficiently satisfied and omit such defects or objection. (2) Any deposit will be made with Title Company. (3) City agrees to execute, acknowledge and deliver any required instrument and to make any required deposit. D. If Title Company refuses to omit any title defect or objection prior to Closing, then FCHA, at its election, has the right to: (1) accept such title as City is able to convey, without any reduction of the purchase price; or (2) rescind this Agreement and, upon such rescission, this Agreement will be null and void and of no further effect, and all parties to this RET Form Version 3/16/07 - 5 - Agreement will be released from all obligations hereunder. E. If City is unable to convey title as provided in this paragraph 4 to FCHA due to an act or omission of City that is within the authority of City’s City Manager, City is in default and continues to be liable under this Agreement. F. Notwithstanding the foregoing, (1) any title condition consisting of monetary liens, deeds of trust or other financial encumbrances against the Property must be removed by City at or prior to Closing, and City’s failure to cause the removal of the same will constitute a default by City under this Agreement; and (2) in the event City fails to cause the removal of a financial encumbrance against the Property prior to Closing, FCHA has the right to pay amounts required to do so at Closing, and to receive a credit for such payment against the Purchase Price. 5. Legal Description. The parties each acknowledge that a legal description of the Property is attached to and incorporated by reference into this Agreement, and each acknowledges having received a copy of any such description. The parties agree that it is their intent that the referenced legal description describes the Property except as otherwise expressly provided, and agree to work in good faith and cooperatively to correct technical errors that any such legal description is determined to contain. 6. Special Taxing Districts. Special taxing districts may be subject to general obligation indebtedness that is paid by revenues produced from annual tax levies on the taxable property within such districts. Property owners in such districts may be placed at risk for increased mill levies and excessive tax burdens to support the servicing of such debt where circumstances arise resulting in the inability of such a district to discharge such indebtedness without such an increase in mill levies. FCHA should investigate the debt financing requirements of the authorized general obligation indebtedness of such districts, existing mill levies of such district servicing such indebtedness, and the potential for an increase in such mill levies. 7. Maintenance of the Property/Title. City must keep, or cause to be kept, the Property in its condition as of the Effective Date until Closing, subject to normal wear-and-tear and seasonal changes, and agrees not to commit or permit waste thereon. City must not cause or permit new liens, easements or other encumbrances on the title to the Property, except as expressly agreed by FCHA in writing. 8. Representations of City. Based on a reasonable inquiry within City’s municipal RET Form Version 3/16/07 - 6 - organization on behalf of City’s City Manager, City represents and warrants to the best of City’s knowledge, as of the Effective Date and as of the Closing, as follows: A. There is no litigation proceeding, including but not limited to any eminent domain proceeding, pending (or to City’s knowledge threatened) against or relating to any part of the Property, nor does City know of or have reasonable grounds to know of any basis for any such action. B. City has not received notice of, and to the best of City’s knowledge, there are no violations of any laws, orders, regulations or requirements of any governmental authority affecting the Property or any part thereof. C. City has the unconditional right and power, subject to the contingencies described in paragraph 28, to execute and deliver this Agreement and to consummate the transaction(s) contemplated by this Agreement. D. City has not received notice of default or breach by City of any of the covenants, conditions, restrictions, rights-of-way or easements affecting the Property or any portion thereof; no default or breach now exists or will exist on the date of Closing; and no event or condition has occurred and is continuing that, with or without notice and/or the passage of time, will constitute such a default or breach. E. City represents that it has provided to FCHA all environmental reports and, to the extent permitted by law, any other documentation in City’s possession related to City’s ownership of the Property. 9. Condition of the Property. A. FCHA acknowledges and agrees that except as specifically set forth elsewhere in this Agreement, City has not made, and does not make, any representations, warranties, promises, covenants or agreements of any kind or nature, whether express or implied, oral or written, concerning or with respect to: (1) the value, nature, quality or condition of the Property; (2) suitability of the Property for any uses contemplated by FCHA; or (3) compliance of or by the Property or its operation with any laws, rules, ordinances or regulations of any applicable governmental authority, including, without limitation, any such laws, rules ordinances or regulations concerning environmental protection, pollution or land use. RET Form Version 3/16/07 - 7 - B. By closing, FCHA will be acknowledging that FCHA has been given the opportunity to inspect the Property, and that with the exception of any representations or warranties specifically set forth in this Agreement, FCHA is relying solely on its own investigation of the Property. FCHA furthermore acknowledges that its acquisition of the Property shall be on an “AS IS basis” without further improvement or remediation by City, and any claims against City in connection with any representations or warranties (except those specifically set forth elsewhere in this Agreement and except any warranties of title contained in the deed to be delivered at Closing) are hereby released and waived by FCHA. 10. Inspection. FCHA or any designee of FCHA has the right to make inspections of the physical condition of the Property and the improvements located thereon at FCHA's expense. These inspections may include, but are not limited to, environmental assessments and inspections regarding compliance with any building or fire code, environmental protection, pollution or land use or zoning laws, rules or regulations, including, but not limited to any laws relating to the disposal or existence of any hazardous substance or other regulated substance in or on the Property. If FCHA does not provide to City written notice of any unsatisfactory condition, as determined at FCHA's sole discretion, signed by an authorized representative of FCHA, at least thirty (30) days prior to Closing, FCHA waives any objection to the physical condition of the Property and the improvements located thereon as of that date. If FCHA provides written notice of any unsatisfactory condition, signed by an authorized representative of FCHA, to City at least thirty (30) days prior to Closing, and City does not cure such conditions prior to Closing, this Agreement may be terminated at the option of FCHA. Upon such termination, all payments and things of value received hereunder by City must be returned to FCHA. FCHA is responsible and will pay for any damage that occurs to the Property and the improvements located thereon as a result of these inspections. 11. Development Process. A. FCHA shall prepare preliminary conceptual designs for the development of the Property, including site plans and elevations, but not including detailed engineering drawings (the “Preliminary Conceptual Designs”). These Preliminary Conceptual Designs shall be completed and submitted to the City within forty-five (45) days of the Effective Date. B. Upon receipt of the Preliminary Conceptual Designs from FCHA, the City shall conduct a conceptual design review with FCHA. The City and FCHA shall act reasonably and in good faith to agree on the final conceptual design for the Development (the “Final Conceptual Design”) within ten (10) working days of submission of the Preliminary Conceptual Designs. C. FCHA shall prepare all plans and submittals necessary to present a complete Project Development Plan (“PDP”) to the City’s Planning Department for development review. FCHA shall make all necessary submittals for development review of the PDP within one- hundred twenty (120) days of the date the parties reach agreement on the Final Conceptual RET Form Version 3/16/07 - 8 - Design. FCHA shall then diligently pursue development approval of the project to completion. FCHA is responsible for all development applications and for paying all related fees as a part of the development review process and no fees shall be waived by the City unless such waiver is authorized by City Code. The City shall cooperate with FCHA in its pursuit of any necessary governmental approvals and permits, including without limitation, the granting of easements and encroachment permits necessary for the completion of the development, provided that FCHA complies with all related governmental, legislative and administrative requirements. D. If during the course of the design and development review processes the City reasonably believes that any material aspect of FCHA’s PDP does not comply with applicable legal and regulatory requirements or deviates substantially and fundamentally from the Final Conceptual Design (taking into account changes made at the request of the City or in response to input from neighbors and other stakeholders), the City shall provide FCHA with written notice and an itemized list or description of such deviations. Upon receipt of such notice, (i) FCHA shall diligently pursue correction of such items in an expeditious manner to bring the PDP into compliance with applicable legal and regulatory requirements; and/or (ii) FCHA and the City shall act reasonably and in good faith to agree on such reasonable changes in the PDP as may be reasonably necessary to bring the PDP into substantial compliance with the Final Conceptual Design. E. FCHA is solely responsible for all expenses incurred in preparing for the development of the Property, including but not limited to preparing the market analysis/feasibility study and the designs, any environmental reviews, vibration studies, noise analyses, etc., and/or costs incurred in the development review process. The City shall have no obligation to reimburse, share in or support FCHA in covering any costs incurred by it as may be necessary to perform its obligations under this Agreement. Further, the City shall have no obligation to reimburse, share in, or assist FCHA in covering any costs incurred by FCHA under this Agreement if this Agreement is terminated as provided herein, except that if FCHA terminates the Agreement because of an uncured default by the City, FCHA does not waive its potential claims for damages. 12. Closing. The parties agree to close this transaction within thirty (30) days of the satisfaction of all contingencies listed in paragraph 28, at Land Title Guarantee Company, Fort Collins, Colorado, or at such other reasonable time, date or location as the parties may mutually agree (“Closing”). If the parties cannot agree on the date and time of closing, the closing shall be held on the last business day that is within 30 days of the satisfaction of all contingencies listed in paragraph 28 at 2:00 pm Mountain Time. 13. Possession. City will deliver possession of the Property to FCHA at Closing. 14. Proration. Real property taxes and assessments and similar expenses, in accordance with local practice, will be prorated as of the date of the Closing, to the extent such taxes, assessments and expenses apply to City. RET Form Version 3/16/07 - 9 - 15. Remedies on Default. If any obligation hereunder is not performed as herein provided, the remedies are: A. If City is in default, FCHA may terminate this Agreement and recover direct damages as may be proper. FCHA expressly waives the remedies of specific performance and additional damages. B. If FCHA is in default, City may terminate this Agreement and may recover such damages as may be proper, or City may elect to treat this Agreement as being in full force and effect, and City will have the right to an action for specific performance or damages, or both. 16. Notices. Any notice or other communication given by either party to the other relating to this Agreement must be hand delivered; sent by a commercial carrier; or sent by mail, addressed to the party at its respective address as set forth below. The notice or other communication will be effective on the date it is delivered or on the third business day after being sent, whichever comes first. If to FCHA: Fort Collins Housing Authority 1715 W. Mountain Ave. Fort Collins, CO 80521 With a copy to: James A Martell, Esq. 300 S. Howes Street Fort Collins, CO 80521 If to City: Real Estate Services Manager City of Fort Collins Mailing Address: P.O. Box 580 Fort Collins, CO 80522-0580 Hand Delivery: 117 North Mason St. Fort Collins, CO 80524 With a copy to: City Attorney’s Office City of Fort Collins Mailing Address: P.O. Box 580 Fort Collins, CO 80522-0580 RET Form Version 3/16/07 - 10 - Hand Delivery: 300 LaPorte Avenue Fort Collins, CO 80521 17. Assignment. This Agreement must not be assigned by either of the parties hereto without the prior written consent of the other party. 18. Risk of Loss. City shall bear all risk of loss with respect to the Property up to the date title is transferred in accordance with this Agreement. In the event of damage to any portion of the Property by fire or other casualty prior to the Closing which damage either affects 5% of the usable facilities on the Property or reduces the value of the Property by 5%, then this Agreement may be terminated at the option of FCHA. This option shall be exercised, if at all, by FCHA’s written notice thereof to City within thirty (30) calendar days after receipt of written notice of such fire or other casualty. Upon the exercise of such option to terminate, this Agreement shall become null and void, and neither party shall have any further liability or obligations hereunder, except as otherwise provided in this Agreement. Closing may be delayed for up to thirty (30) calendar days for FCHA to decide whether to exercise this option. 19. Lead-Based Paint. Unless exempt, if the improvements, if any, on the Property include one or more residential dwellings for which a building permit was issued prior to January 1, 1978, this Agreement shall be void unless a completed Lead-Based Paint Disclosure (Sales) form is signed by City and the required real estate professionals, if any, which shall have occurred prior to the parties signing this Agreement. 20. Recommendation of Legal and Tax Counsel. By signing this document, FCHA acknowledges that FCHA has been advised that this Agreement has important legal consequences and has received the recommendation to consider the examination of title and consultation with legal and tax or other counsel before signing this Agreement. 21. Entire Agreement, Modification. This Agreement constitutes the entire contract between the parties relating to the conveyance of the Property, and any prior agreements pertaining thereto, whether oral or written, have been merged and integrated into this Agreement. No subsequent modification of any of the terms of this Agreement will be valid, binding upon the parties, or enforceable unless made in writing and signed by the parties. 22. Headings. Paragraph headings are used for convenience of reference and in no way define, limit or prescribe the scope or intent of any provision under this Agreement. 23. Construction. Words of the masculine gender include the feminine and neuter gender and when the sentence so indicates, words of the neuter gender refer to any gender. Words in the singular include the plural and vice versa. Definitions of defined terms are intended to apply throughout this Agreement. This Agreement is to be construed according to its fair meaning, and as if prepared by all parties, and is deemed to be and contain the entire understanding and agreement between the parties. RET Form Version 3/16/07 - 11 - 24. Time is of the Essence. It is agreed that time is of the essence of this Agreement and each and every provision. 25. Binding Effect. This Agreement is binding upon and inures to the benefit of the parties their respective successors and assigns. 26. Litigation Expenses. In the event any party defaults in any of its covenants or obligations and a party not in default commences and substantially prevails in any legal or equitable action against the defaulting party, the defaulting party expressly agrees to pay all reasonable expenses of the litigation, including a reasonable sum for attorneys' fees or similar costs of legal representation. 27. Brokers. City and FCHA each represent and warrant to the other that such party has not employed, retained or consulted any broker, agent or other real estate professional with respect to the Property. To the extent permitted by law, FCHA and City each indemnify and hold the other harmless from and against all claims, demands, causes of action, debts, liabilities, judgments and damages, including, without limitation, any related litigation expenses, that may be asserted or recovered against the other on account of any breach of this representation and warranty. 28. Contingencies. This Agreement is hereby made expressly contingent upon the following: A. FCHA obtaining all required regulatory approvals for the Development, including if necessary, an amendment to the City Code allowing Land Bank parcels to be developed for rental housing affordable to households at 60% AMI as long as the overall affordability for the Development is still at or below 50% of AMI. B. FCHA providing proof reasonably satisfactory to the City that FCHA can obtain the necessary financing to construct the Development according to the approved Project Development Plan. 29. Authority. Each person executing this Agreement represents and warrants that he or she is duly authorized to execute this Agreement in his or her individual or representative capacity as indicated. 30. Counterpart and Facsimile Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement. Signatures may be delivered by facsimile copy. Facsimile signatures are binding on the parties as if they were originals 31. Recording. FCHA may record this Agreement in the real property records of the Larimer County Clerk and Recorder. RET Form Version 3/16/07 - 12 - 32. Governing Law/Venue. The parties intend and agree that this Agreement is to be construed and enforced according to the laws of Colorado, and that venue in any proceeding related to the subject matter of this Agreement will be in Larimer County, Colorado. IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date and year first above written. HOUSING AUTHORITY OF THE CITY OF FORT COLLINS a body corporate and politic under the laws of the state of Colorado Date: By: ___________________ STATE OF COLORADO ) ) ss COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ______day of_____________, 2016, by _______________________, as _________________ for the Housing Authority of the City of Fort Collins. Witness my hand and official seal. My Commission expires: ______________ ____ Notary Public RET Form Version 3/16/07 - 13 - CITY: THE CITY OF FORT COLLINS, COLORADO a Municipal Corporation Date: By: Wade O. Troxell, Mayor ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney STATE OF COLORADO ) ) ss COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this______ day of ______________, 2016, by Wade O. Troxell as Mayor and ____________________as City Clerk of the City of Fort Collins. Witness my hand and official seal. My Commission expires: Notary Public RET Form Version 3/16/07 - 14 - EXHIBIT A Property Legal Description RET Form Version 3/16/07 - 15 - EXHIBIT B GENERAL WARRANTY DEED THIS GENERAL WARRANTY DEED, made this ___ day of _________, 20__, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, whose mailing address, for purposes of this General Warranty Deed is P.O. Box 580, Fort Collins, Colorado 80522 (“Grantor"), and the HOUSING AUTHORITY OF THE CITY OF FORT COLLINS, a body corporate and politic under the laws of the state of Colorado, whose mailing address, for purposes of this General Warranty Deed is 1715 W. Mountain Ave., Fort Collins, CO 80521 ("Grantee"). W I T N E S S E T H : That the Grantor, for and in consideration of the sum of ______________________ Dollars ($_________) and other good and valuable consideration, to the Grantor in hand paid by the Grantee, the receipt and adequacy of which are hereby confessed and acknowledged, has granted, bargained, sold, and conveyed, and by these presents does hereby grant, bargain, sell, convey and confirm unto the Grantee and Grantee’s successors and assigns forever, those certain parcels of real property, together with all improvements, if any, situate, lying, and being in the County of Larimer, State of Colorado, more particularly described on Exhibit A, attached hereto, consisting of one (1) page, and incorporated herein by this reference, also known by street and number as 1506 West Horsetooth Road, Fort Collins, Colorado 80525 ("the Property"). TOGETHER with all and singularly the hereditaments and appurtenances thereto belonging, or in any way appertaining, and the reversion and reversions, remainder and remainders, rents, issues, and profits thereof, and all estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in or to the Property, with the hereditaments and appurtenances. TO HAVE AND TO HOLD the Property above bargained and described with the appurtenances unto the Grantee and its successors and assigns forever. And the Grantor, for itself and its successors and assigns, does covenant, grant, bargain and agree to and with the Grantee and its successors and assigns, that at the time of the ensealing and delivery of these presents it is well seized of the Property; and having good, sure, perfect, absolute and indefeasible estate in law, in fee simple; and having good right, full power, and lawful authority to grant, bargain, sell and convey the same in manner and form as aforesaid; and that, except as hereinafter provided, the same are free from all former and other grants, bargains, sales, liens, taxes, assessments and encumbrances of whatever kind or nature whatsoever; and the Grantor does hereby warrant the title to the same, subject to all existing easements and rights-of-way in place or of record or reserved herein; any restrictions, reservations, or exceptions contained in any United States or RET Form Version 3/16/07 - 16 - State of Colorado Patents of record; all zoning and other governmental rules and regulations; statutory lien rights resulting from the inclusion of the Property in any special taxing or improvement districts; all oil, gas or other mineral reservations or exceptions of record; and general property taxes, assessments and charges for _____ and all subsequent years. Grantor’s warranty of title is further subject to the encumbrances set forth on Exhibit B, attached hereto and incorporated herein by this reference, and to the following interests that Grantor hereby reserves unto itself: (1) a Utility Easement over the north 15 feet of the south 42.5 feet of Parcel I of the Property; (2) a Public Right- of-Way over the south 27.5 feet of Parcel I of the Property; (3) use of the Property shall be restricted to rental housing for households at or below ____% of the Area Median Income (AMI) for Fort Collins; if the Property is ever not so used, the Grantor may re-enter and recover title to the Property; and (4) Grantee shall commence development of all housing on the Property within 24 months of the date of this Deed, and shall obtain building permits for the construction of all such housing units within 48 months of the date of this Deed. If all such building permits have not been obtained within such time period, then title to that portion of the Property for which building permits have not been issued shall revert to the Grantor, unless otherwise agreed by the Grantor’s City Manager upon a finding that Grantee has exerted a good faith and diligent effort in pursuing the development but has suffered delays caused by unforeseen circumstances not reasonably within the control of Grantee. The Grantor, for itself and its successors and assigns, does covenant and agree to and with the Grantee and its successors and assigns, that the Grantee and its successors and assigns shall and may lawfully and at all times hereafter peaceably and quietly have, occupy, possess, and enjoy the Property hereby granted, or intended so to be, with the appurtenances, without the lawful hindrance or molestation of the Grantor or its successors and assigns, or of any other person or persons whomsoever, by or with its consent, privity or procurement. IN WITNESS WHEREOF, the Grantor has executed this General Warranty Deed the day and year first above written. RET Form Version 3/16/07 - 17 - GRANTOR: THE CITY OF FORT COLLINS, COLORADO a Municipal Corporation (the Grantee) By: Wade Troxell, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ City Clerk Assistant City Attorney ] STATE OF COLORADO ) ) ss. COUNTY OF LARIMER ) The foregoing General Warranty Deed was acknowledged before me this _____ day of ________, 20__, by _______________________, as ______________________ of _______________. Witness my hand and official seal. My Commission Expires: ________________ _______________________________ Notary RET Form Version 3/16/07 - 18 - ACCEPTED BY GRANTEE: THE HOUSING AUTHORITY OF THE CITY OF FORT COLLINS a body corporate and politic under the laws of the state of Colorado By: ATTEST: Board Secretary