HomeMy WebLinkAbout2018-10-16 Resolution Prepared by:Josh Slattery,Senior Civil Engineer,410 E.Washington St.,Iowa City,IA 52240 (319)356-5419 1•611
Resolution No. 18-285
Resolution changing the name of Barber's Place, located in The
Peninsula Neighborhood Phase 2A, to Barber Place.
Whereas, on May 13, 2008, the City Council approved the final plat of The Peninsula
Neighborhood Phase 2A(Resolution No. 08-134); and
Whereas, one of the streets included on the final plat of The Peninsula Neighborhood Phase 2A is
Barber's Place; and
Whereas, said street has been identified as Bather's Place on city maps, the Iowa City Assessor's
records, and Johnson County's mapping and records; and
Whereas, on the contrary, said street has been identified as Barber Place on the city street sign,
telephone books, and by the Post Office; and
Whereas, the residents have been using Barber Place in their mailing addresses to match the
street sign; and
Whereas, the residents have requested to change the name of Barber's Place located in the
above-mentioned subdivisions to Barber Place, and staff has no objections to this request.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa that:
1. The name of Barber's Place, located in The Peninsula Neighborhood Phase 2A, is hereby
changed to Barber Place.
2. As required by Iowa Code §354.26 (2016), the City Clerk is directed to certify a copy of
this Resolution and file this Resolution with the Johnson County Recorder, the Johnson
County Auditor, and the City Assessor.
Passed and approved this 16th day of October , 2018.
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Ma Cr
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/roved by / \)
Attest: it . J LULM.- C /b SID /g
ity Clerk / City Attorney's Office
It was moved by Mims and seconded by Salih the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
x Cole
x Mims
X Salih
x Taylor
X Teague
X Thomas
x Throgmorton
Item Number: 7.a.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution changing the name of Barber's Place, located in The Peninsula
Neighborhood Phase 2A, to Barber Place.
Prepared By: Josh Slattery, Sr. Civil Engineer
Reviewed By: Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
Residents have requested to change the name of Barber's Place located in The Peninsula
Neighborhood Phase 2A to Barber Place, and staff has no objections to this request.
Background /Analysis:
One of the streets included on the final plat of The Peninsula Neighborhood Phase 2A is Barber's
Place. Said street has been identified as Barber's Place on city maps, the Iowa City Assessor's
records, and Johnson County's mapping and records. On the contrary, said street has been
identified as Barber Place on the city street sign, telephone books, and by the Post Office. The
residents have been using Barber Place in their mailing addresses to match the street sign.
ATTACHMENTS:
Description
Resolution
132
Prepared by:Josh Slattery,Public Works,410 E.Washington St.,Iowa City,IA 52240(319)356-5149
Resolution No. 18-286
Resolution accepting the work for the storm sewer, sanitary
sewer, water main, street paving, and certain sidewalk public
improvements for Cardinal Pointe West — Part Two, and
declaring public improvements open for public access and use.
Whereas, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications approved by the Engineering Division.
Sanitary sewer, storm sewer, and water main improvements for Cardinal Pointe West -
Part Two, as constructed by Carter&Associates, Inc. of Coralville, Iowa.
Paving improvements for Cardinal Pointe West - Part Two, as constructed by Streb
Construction Co., Inc. of Coralville, Iowa.
Whereas, the maintenance bonds have been filed in the City Clerk's office; and
Whereas, the City of Iowa City has notified those contractors listed previously of the date on which
it will consider acceptance of the aforementioned public improvements; and
Whereas, the traffic control signs have been installed.
Now, therefore, be ft resolved by the City Council of the City of Iowa City, Iowa, that said
improvements are hereby accepted by the City of Iowa City, Iowa and that all dedications and
public improvements previously set aside as not being open for public access are hereby formally
accepted and declared open for public access and use.
Passed and approved this 16th day of October , 2018
Ma or
71
Approved by/
Attest: _ �� . oi,t c 4J-ea/ i,_,
Ci y Clerk / , City Attorney's Office to/n be-
lt was moved by Mims and seconded by Salih the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
X Cole
X _ Mims
X Salih
X Taylor
X Teague
X Thomas
X Throgmorton
Item Number: 7.b.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution accepting the work for the storm sewer, sanitary sewer, water
main, street paving, and certain sidewalk public improvements for Cardinal
Pointe West — Part Two, and declaring public improvements open for public
access and use.
Prepared By: Josh Slattery, Sr. Civil Engineer
Reviewed By: Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: N/A
Attachments: Engineer's Report
Resolution
Executive Summary:
Cardinal Pointe West — Part Two is an addition onto Cardinal Pointe West — Part One, and the
second phase of the Cardinal Pointe West Development that is located south of Kennedy
Parkway and west of Camp Cardinal Boulevard. Cardinal Pointe West — Part Two is a 45.09 -acre
residential subdivision that consists of a 27.06 -acre outlot for future development, two outlots
(totaling 9.39 -acres) of private open space, 9 single-family lots, 6 lots for duplexes, and one multi-
family lot. The preliminary plat shows five 5 -unit buildings and two 4 -unit buildings on the multi-
family lot.
Background /Analysis:
The construction of the storm sewer, sanitary sewer, water main, street paving, and certain
sidewalk improvements for Cardinal Pointe West — Part Two have been completed in substantial
accordance with the plans and specifications on file with the Engineering Division of the City of
Iowa City.
ATTACHMENTS:
Description
Engineer's Report
Resolution
� r
�« rero�a®i
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
ENGINEER'S REPORT (319) 356 - 5009 FAX
www.i.cgov.org
October 9, 2018
Honorable Mayor and City Council
Iowa City, Iowa
Re; Cardinal Pointe West — Part Two
Dear Honorable Mayor and Councilpersons;
I hereby certify that the construction of the sanitary sewer, storm sewer, water
main, street paving, and certain sidewalk improvements for Cardinal Pointe West
— Part Two have been completed in substantial accordance with the plans and
specifications on file with the Engineering Division of the City of Iowa City. The
required maintenance bonds are on file in the City Clerk's Office for the sanitary
sewer, storm sewer, and water main improvements constructed by Carter &
Associates, Inc. of Coralville, Iowa and for the paving improvements constructed
by Streb Construction Co., Inc. of Coralville, Iowa.
I recommend that the above -referenced improvements be accepted by the City
of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
1,G
Prepared by.Brett Zmmerman,CM!Engineer,Public Works,410 E.Washington St,Iowa City,IA 52240 313356-5044
Resolution No. 18-287
Resolution authorizing the acquisition of property interests necessary
for construction of the Highway 1 Trail Project — Sunset Street to
Mormon Trek Boulevard.
Whereas, the City of Iowa City desires to construct the Highway 1 Trail Project-Sunset Street to
Mormon Trek Boulevard ("Project") which includes installation and reconstruction of the storm
sewer system along the project corridor; and
Whereas, the City Council has determined that construction of the Project is a valid public
purpose under State and Federal law, and has further determined that acquisition of certain
property rights is necessary to construct, operate and maintain the proposed project; and
Whereas, the City staff has determined the location of the proposed Project; and
Whereas, City staff should be authorized to acquire necessary property rights at the best overall
price to the City; and
Whereas, funds for this project are available in the Highway 1 Sidewalk/Trail account#R4225.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City Council finds that it is in the public interest to acquire property rights by warranty
deed, quit-claim deed, and/or easement for the construction of Highway 1 Trail Project -
Sunset Street to Mormon Trek Boulevard ("Project") which Project constitutes a public
improvement under Iowa law. The City Council further finds that acquisition of said
property rights is necessary to carry out the functions of the Project, and that such Project
constitutes a valid public purpose under state and federal law.
2. The City Manager or designee is hereby authorized and directed to negotiate the
purchase of property rights by warranty deed, quit-claim deed and/or easement for the
construction, operation and maintenance of the Project. The City Manager or designee is
authorized to sign purchase agreements for the purchase of property and/or easements,
and offers to purchase property and/or easements.
3. The City Manager or designee, in consultation with the City Attorney's Office, is authorized
and directed to establish, on behalf of City, an amount the City believes to be just
compensation for the property to be acquired, and to make an offer to purchase the
property for the established fair market value.
4. In the event negotiation is successful, the Mayor and City Clerk are hereby authorized to
execute and attest easement agreements and agreements in lieu of condemnation. The City
Attorney is hereby directed to take all necessary action to complete said transactions, as
required by law.
5. In the event the necessary property rights for the Project cannot be acquired by negotiation,
the City Attorney is hereby authorized and directed to initiate condemnation proceedings for
acquisition of any and all property rights necessary to fulfill the functions of the Project, as
provided by law.
Resolution No. 18-287
Page 2
Passed and approved this_ 16th _day of October , 2018
7- 76-C—
Ma r
.p roved
Attest: - -t�yi ; - h - to -11.
ity Clerk / City Attorney's Office
It was moved by Mims and seconded by Salih the Resolution be
adopted, and upon roll call there were:
Ayes: Nays: Absent:
X Cole
X Mims
X Salih
X Taylor
x Teague
x Thomas
x Throgmorton
Item Number: 7.c.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution authorizing the acquisition of property interests necessary for
construction of the Highway 1 Trail Project — Sunset Street to Mormon Trek
Boulevard.
Prepared By: Brett Zimmerman, Civil Engineer
Reviewed By: Jason Havel, City Engineer
Ron Knoche, Public Works Director
Geoff Fruin, City Manager
Fiscal Impact: Funding is available in the Highway 1 Sidewalk/Trail account #R4225
Recommendations: Staff: Approval
Commission: N/A
Attachments: Resolution
Executive Summary:
Preliminary design for the Highway 1 Trail Project — Sunset Street to Mormon Trek Boulevard has
been completed, and the proposed improvements require the acquisition of temporary
construction easements from property owners within the project corridor.
Background /Analysis:
This project includes a new trail connection from Sunset Street to Mormon Trek Boulevard, and is
an extension of the recently completed Highway 1 Trail project that extends from Orchard Street
to Sunset Street. The project completes the planned Highway 1 Trail system and ultimately
connects the existing Iowa River Corridor Trail to the existing Mormon Trek Boulevard wide
sidewalk.
Temporary construction easements are required for installation of storm sewers to capture runoff
from adjacent property owners within the project corridor.
ATTACHMENTS:
Description
Resolution
Prepared by: Susan Dulek, Assistant City Attorney, 410 E. Washington St., Iowa City, IA 52240
• (319) 356-5030
RESOLUTION NO. 18- 288
Resolution authorizing conveyance of a single family
home located at 516 Fairchild Street.
Whereas, the UniverCity Neighborhood Partnership Program is an effort by the City to
encourage home ownership and reinvestment in designated neighborhoods surrounding the
University of Iowa; and
Whereas, the City purchases rental units located in designated neighborhoods surrounding the
University of Iowa, rehabilitates them, and then sells them to income-eligible buyers; and
Whereas, the City purchased and rehabilitated a single family home located at 516 Fairchild
Street, Iowa City; and
Whereas, the City has received an offer to purchase 516 Fairchild Street for the principal sum
of$220,000; and
Whereas, on October 2, 2018, the City Council adopted a Resolution proposing to convey its
interest in 516 Fairchild Street, authorizing public notice of the proposed conveyance, and
setting the date and time for the public hearing; and
Whereas, following the public hearing on the proposed conveyance, the City Council finds that
the conveyance is in the public interest.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. Upon the direction of the City Attorney, the Mayor and the City Clerk are authorized to
execute a warranty deed conveying the City's interest in 516 Fairchild Street, legally
described as part of Lot 6, Block 35, Iowa City, Iowa.
2. The City Attorney is hereby authorized to deliver said warranty deed and to carry out any
actions necessary to consummate the conveyance required by law.
It was moved by Salih and seconded by Thomas the Resolution be
adopted, and upon roll call there were:
Resolution No. 18-288
Page 2
AYES: NAYS: ABSENT:
X Cole .
X Mims
X Salih
X Taylor
X Teague
Thomas
Throgmorton
Passed and approved this 16th day of October 7., 2018.
ATTEST: - _ J _ c,
CI CLERK / .
Approved by
City Attorney's Office
Item Number: 12.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution authorizing conveyance of a single family home located at 516
Fairchild Street.
Prepared By: Erika Kubly, Neighborhood Services Coordinator
Reviewed By: Tracy Hightshoe, NDS Director
Fiscal Impact: The assessed value of 516 Fairchild at the time of purchase was $144,810.
The sale price will be $220,000. There will be no impact on the general fund
for ongoing operating expenses.
Recommendations: Staff: Approval
Commission: N/A
Attachments: Before and After Photos
Resolution
Executive Summary:
On October 16, 2018, City Council will hold a public hearing to consider a resolution authorizing
conveyance of 516 Fairchild Street as part of the UniverCity Neighborhood Partnership Program.
This will be the 65th home sold as part of the program.
Background /Analysis:
Under the UniverCity Neighborhood Partnership Program, the City proposes to sell 516 Fairchild
Street for $220,000. The City purchased the home for $145,000. The amount of rehabilitation
needed for this home exceeded our typical rehabilitation budget due to the condition of the home
and several modifications were necessary to return it to a single family home. The property was a
high occupancy duplex, maintained at a minimum standard. City funds were used to rehabilitate
and sell the home to an eligible buyer.
516 Fairchild was built in 1904 and has over 1,200 square feet of living space including three
bedrooms and one bathroom. In addition to returning the home to single-family use, renovations
included an all new kitchen and bathroom, new flooring, interior and exterior paint, windows,
updated electrical and plumbing, new furnace, air conditioner, water heater, and roof. The home is
required to be owner -occupied for 30 years.
This home is located in the Northside Neighborhood across the street from North Market Square
Park. It is in an area where there is a mix of owner -occupied and rental properties, and will be an
asset to the neighborhood and community
ATTACHMENTS:
Description
Before and After Photos
Resolution Authorizing Conveyance
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CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
516 Fairchild - Before Renovations
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516 Fairchild - After Renovations
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CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
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Prepared by: Erka Kubly, Neighborhood Services,410 E.Washington St., Iowa City, IA 52240(319)356-5230
Resolution No. 18-289
Resolution committing $200,000 in FY2019 General Funds to the IC Housing
Group, LLC Low Income Housing Tax Credit project.
Whereas, the City Council seeks to fulfill its goal to increase the availability of affordable
housing in Iowa City; and
Whereas, the City Council approved the Affordable Housing Action Plan on June 21, 2016 to
increase the supply of affordable housing for households under 80% of median income; and
WHEREAS, the Affordable Housing Action Plan includes the provision of City funds to support
Low Income Housing Tax Credit (LIHTC) projects in Iowa City; and
WHEREAS, the City Council budgeted $200,000 in FY2019 for LIHTC projects.
Now, therefore, be it resolved by the City Council of the City of Iowa City, Iowa, that:
1. The City of Iowa City commits$200,000 to IC Housing Group, LLC for the NEX Apartments
project, a Low Income Housing Tax Credit Project as outlined in the attached proposal.
Funds are contingent on the project proceeding as a LIHTC project.
Passed and approved this 16th day of October, 2018.
<L
MA OR
Ap'rived .
ATTEST -.S ' ij. / w •• - to - 11- 17
CI CLERK / City Attorneys Office
Resolution No. 18-289
Page 2
It was moved by Sall h and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
x Cole
x Mims
x Salih
x Taylor
x Teague
x Thomas
x Throgmorton
Proposal for Housing Trust Fund of
Johnson County
for Revolving Loan Program
NEX Apartments
September 14, 2018
Iowa City, Iowa
�i�islr)Zd
Housing Trust Fund of Johnson County
Revolving Loan Fund Application
(Please remain within the given format of the application. Page layout may not be changed, but pages may be attached.)
Date: September 12, 2018 Project Name: NEX Apartments (Iowa City)
Type of Project and Number of Units
(Please indicate the number of each type of unit)
Development of Owner -Occupied Housing
X Development of Transitional/Rental Housing
Development of Emergency Shelter
Homeowner Assistance (Downpayment, etc.)
Other— Describe:
Lead Applicant Information
Name: IC Housing Groug, LLC
Contact Person: Jamie Thelen
Title: Secretary/Treasurer
Rehab of Owner -Occupied Housing
Rehab of Transitional/Rental Housing
Rehab of Emergency Shelter
Federal Tax ID#: 82-3381850
�.
S i gn-atta re .
Phone UUM eh r: 320-202-3100
Fax Number: 320-202-3139 E-mail Address: JJThelen(a)SandCompanies.com
Address: 366 South Tenth Avenue, PO Box 727, Waite Park, MN 56387
Legal representative: Winthrop & Weinstine Title:
Email: iPete rson(a)-winth rop.com Phone number:
Organization Type of Lead Applicant (check one)
Community Housing Development Organization
Private Non-profit Organization
X Private For-profit Organization
Public Organization
Individual or Partnership Applicant
'-*Type of partnership
Ends Requested
Total Amount Requested:
Status
$ $450.000 (from HTFJQ & $200,000 (from Iowa City)
Terms Requested (Must provide sufficient supporting information to comply with said terms)
Proposed repayment terms: 1% interest, 17 -year term, 35 -year amortization, outstanding
principal repaid in full at end of year 17
(Loan Requests Only, Elaborate on any unique circumstances)
Proposed term of affordability: 30 years compliance period through IFA's LIHTC Program
(Length of time income will be monitored)
Project Name: NEXA,oartments Project Neighborhood: N/A
Project Address / Street Boundaries: Herbert Hoover Highway, east of Eastbury Drive
I. APPLICANT
Describe the applicant's mission, programs and years in existence. Provide a description of its experience with other
projects. Identify staff members who will be involved with the project. Include their past experience and their role in this
project. Attach list of Board Members and their occupations.
IC Housing Group, LLC (ICHG), combined with its managing member (SCI Associates, LLC) and
individual members, has over 20 years of experience as a low-income housing tax credit developer
with more than 25 projects completed to date consisting of over 1,500 units. ICHG works with Sand
Architects, LLC, Sand Construction, LLC and Sand Property Management, LLC (Sand) to design,
construct and manage its properties. Sand is a fully integrated real estate development company
with almost 25 years of experience. Recently, SCI Associates, LLC completed multiple LIHTC
projects in St. Paul, MN, St. Michael, MN and Dayton, MN, and Coralville, IA. Jamie Thelen, Megan
Carr and Nikki Sand will all be leading the development of this community. Jamie has almost 20
years, Nikki has been over 8 years and Megan has over 4 years of low income housing tax credit
development experience. Together the development team analyzes and determines the financials
and projections for the projects, works with local city and county government officials, local groups
and neighborhoods to determine the building and community design, arranges and solidifies financing
and brings the project to closing, and then finally works with the teams through construction and into
management to ensure a smooth transition and full lease -up of the community. During the
compliance period, our teams work together to ensure compliance and other requirements are met
for all financing sources. Attached are the Board Members and their occupations.
II. IDENTIFICATION OF PROJECT TEAM
Please provide complete relevant contact information, as applicable, for members of the overall project team such as
the Developer, General Partner, General Contractor, Architect, Property Management, etc. Complete as fully as
possible given the project team may not be fully formed.
Developer
St. Michael Development Group, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
Owner
IC Housing Group, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
Managing Members
IC Housing Partners, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
VA
Belisle Development, LLC
12315 Heather Avenue North
Hugo, MN 55038
General Contractor
Sand Construction, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
Architect
Sand Architects, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
Property Management
Sand Property Management, LLC
366 South 10th Avenue, PO Box 727
Waite Park, MN 56387
III. PROJECT DESCRIPTION
If requested information is not available provide statement detailing project & status. Describe the major
components of the project (location, what will be accomplished, who will it serve, when will it start/finish, total project
cost). Describe neighborhood and surrounding community. Indicate why this site was selected. Attach Location
Map indicating project location. Attach Project Development Timetable that outlines the stages of the project (i.e.
acquisition of site, temporary relocation, financial closing, construction start, construction completion, rent up, etc.).
For assistance type programs (i.e. downpayment or rapid rehousing), include a detailed description of the criteria the
applicant will use to identify assistance recipients, how the program will be managed and who will be in charge of
administering it.
Tax credits from Iowa Finance Authority (IFA) were awarded to IC Housing Group, LLC in August 2018 and last year
the Housing Trust Fund of Johnson County awarded the project $325,000 for infrastructure improvements that need
to be kept outside of the housing project. This is an additional request for the Housing Trust Fund of Johnson
County to fill the remaining gap funding.
The proposed development in Iowa City is located on Herbert Hoover Highway, just east of Eastbury Drive on
approximately 2.25 acres. The development will consist of 36 units, within one building and will target general
occupancy, single heads of households with children, families/individuals of color, single men and women.
According to CITY STEPS, the most common housing problem in Iowa City is cost -burdened households with 8,155
renter occupied households with housing costs greater than 30% of their income. The current proposal targets these
household by providing a mixed income community consisting of 30% area median income, 40% area median
income, 60% area median income and market rate, which allows households at various income levels to find
affordable housing in Iowa City. The project with benefit low and moderate income residents in Iowa City and
Johnson County communities by providing affordable housing for individuals and families, which consists of one,
two, and three bedroom units.
Unit amenities will include Energy Star appliances, washer, dryer, dishwasher, and microwave, as well as HERS
rating less than 62, and meeting Olmstead goals through Iowa Finance Authority. Other resident amenities include a
community room, outdoor children's play area with picnic area, storage lockers and secure access. The building will
be three stories above grade and will incorporate wood frame construction. The exterior of the building will be
texture stone and steel or cement board siding and will incorporate accents and decorative louvers. All of these
features are designed to make the building accessible, affordable and sustainable.
Sand will develop, design, build and manage the property. Sand has twenty years of experience in low and
moderate income housing in Minnesota and Iowa. Currently Sand Property Management, LLC manages forty (1,567
units) housing communities, of which thirty-four are low and moderate income communities.
This request is for gap funding, since the project has already been awarded tax credits and $325,000 from the
Housing Trust Fund of Johnson County. If awarded funds from the Housing Trust Fund, land closing and
3
construction will likely commence in winter/spring 2019, with a spring 2020 opening. No tenants will be displaced by
this project.
Because this is an IFA LIHTC project, the application process will be very structured, formal and well documented.
All prospective tenants will have criminal background checks, credit checks and confirmation of rent/income
eligibility. This will be conducted by the management company, Sand Property Management, LLC who currently
manages 25+ LIHTC projects totaling approximately 1,500 units.
Additionally, under the Iowa City's Affordable Housing Location Model, the site meets all three of City Council's
goals for affordable housing. First, NEX is located in the Helen Lemme Elementary School zoning and according to
the Iowa Department of Education for 2016-2017 school year, Helen Lemme had a free and reduced lunch
participation rate of 30.67, which is below the maximum 50% under the Model. Second, NEX is not located within
400 feet of two or more existing subsidized units. Third and finally, the crime densities for the location of NEX are
not within the 95th -percentile. While NEX site is not shown on the location map, it has become annexed after the
publication and given its proximity to other qualifying sites, NEX should meet the requirements.
IV. DEGREE OF NEED
Describe the need for the activity proposed and demonstrate the need for the financial assistance requested. Without
the requested level of funding at the terms requested, what changes/modifications would be made to the project?
Describe how the proposed project meets a need not addressed by similar programs in Johnson County.
Iowa City lacks affordable housing to fulfill the growing needs of the community. The area is also restricted because of the
high acquisition costs and construction pricing, making it difficult to develop and build quality affordable housing. This
project would serve a great unmet demand and help with the absorption of future growth. In addition, it would reduce or
eliminate any financing gap, which would prevent the project from moving forward to closing and ultimately construction.
In addition, all of the other funding is in-place for NEX Apartments so it can quickly move forward with the land closing and
construction, which will get the project opened sooner than projects requesting tax credits in January 2019.
V. BENEFITS
Identify the population and income groups to be served and services provided by the project.
The population to be served are individuals and families. There will be units set aside for persons at 30%, 40% and
60% AMI as well as some market rate units. There will be a mix of one, two, and three bedroom units. Amenities
may include in -unit laundry, full kitchen, outdoor space, on-site parking, community room, on-site manager and
many others. IFA has conducted a formal market study and found a demand for the project.
VI. CONFLICT OF INTEREST
Describe any conflicts of interest that may exist between Applicant and members of the Board of Directors of the HTFJC.
There are no known interest conflicts between the Applicant and members of the Board of Directors of the HTFJC.
VI. PROJECT INFORMATION
Type of Activity (check aii that apply):
Acquisition Conversion /Adaptive Re -Use Demolition Historic Pres. / Renov.
New Construction Refinance Rehabilitation
Other— Explain:
VII. BUILDING & SITE INFORMATION
Total Number of Buildings - 1 Total Site Area (Acres) - Approximately 2.35
acres
Year Built - 2019 Density Units/Acres - 15.3 units/acre
0
Number of Bedrooms per Unit
Are Buildings Vacant or Occupied? N/A 6 — 1 bedroom
12 — 2 bedroom
18 — 3 bedrooms
Total number of units per building - 36 units
VIII. SITE CONTROL
Does the applicant currently have site control of the property/building?
x Yes No
(Attach As -Is Appraisal, Attach Evidence of Site Control)
If yes, what type of site control: (Include Attachments III. A -B)
Own
Lease
XI Option
Date and Purchase Price
Please Outline Terms
Please Outline Terms Purchase Agreement, closing is anticipated in January
If no, explain your plans and timeline for obtaining site control:
IX. PROPERTY ZONING
Is the property in compliance with current zoning requirements? Yes X No
If no, please explain necessary zoning changes and the progress of the re -zoning process.
Fhe site was annexed into the City and zoned Interium Development. Sand is working to rezone
he land to RM -12 or RM -20. Sand has met with the City of Iowa City and the City has indicated
hat the site could be used for multifamily housing per the zoning/overlay.
Are variances, conditional use permits, or special use permits required? Yes X No
Is property located in historic district or designated a historic building? Yes X No
Unusual Site Features (check all that apply)
30 year Flood Plain X None
100 year Flood Plain
Industrial / Envir. Hazard Explain:
Other Explain:
X. CURRENT INDEBTEDNESS OF PROPERTY
Are Property Taxes on the property/building(s) current? X Yes No
(If no. olease include in the chart below)
5
Original
Name & Address of
Loan
Monthly
Int.
Fixed or
Unpaid
Maturity
Lender
Amount
Payment
Term
rate
Variable
Balance
Date
5
TOTALS:
XI. CURRENT DEBTS OWED TO HTFJC
Original
Loan Monthly Interest Maturity
Amount Payment Term rate Date
Not applicable.
XII. PROPOSED SOURCES OF FUNDING
Identify proposed sources of funding for the project and the status of securing proposed funding.
Attach fundino commitments. nreliminary loan commitments. etc.
(1). Deferred, Amortizing, Grant, Loan, etc., Maturity & Terms (2). An attachment is required for all committed funding
sources.
9
Describe
If No,
Type &
Committed
Expected
% Total
Funder/Program
Amount
Uses
Terms (1)
(Y or N) (2)
Date
Sources
HTFJC — new request
$450,000
Construction
Loan, 107
N
9/28/2018
years, 1 /0
HTFJC
$325,000
Infrastructure,
Loan, 17
Y
Construction
years, 1 %
IOWA CITY
$200,000
Construction
Loan, 17
N
10/16/2018
(LIHTC PROJECTS ONLY)
years, 1 %
Permanent Mortgage
$1,425,000
Acquisition,
Loan, 17
Y
Constructions
years,
5.75%
LIHTC Equity
$5,710,960
Construction,
Y
Payment of
Construction Loan
Owner Equity/Deferred
$326,321
Construction and
Y
Developer Fee
Development Costs
TOTAL AMOUNT
$8,437,281
Total Cost Per Unit
$234,368
HTFJC Cost Per Unit
$21,527
(1). Deferred, Amortizing, Grant, Loan, etc., Maturity & Terms (2). An attachment is required for all committed funding
sources.
9
XIII. TAX INCREMENT FINANCING
Is Tax Increment Financing being considered? Describe proposed TIF assumptions and status of application.
No, the project inquired about tax increment financing and the City of Iowa City, at that time, did
not have any available.
XIV. ESTIMATED ANNUAL INCOME AND EXPENSES
(Transitional and Rental Only)
Attach the 10 -year Cash Flow Proforma —PROGRAM TEMPLATE IS AVAILABLE AT WWW.HTFJC.ORG
(if mixed use: housing and commercial cash flows should be provided separately).
Unit Type Approx
(OBR, Size (Net Proposed Income
1BR, Rentable Monthly Limit Rent Limit
213R, # of Sq. Ft.) of Contract (% AMI) if (% AMI) if
etc. Units Units Rent / Unit applicable applicable
1 BR 1 719 $448 30% 30%
1 $611 40% 40%
2 $774 60% 60%
2 719-788 $937 MR MR
2 BR 1 11100 $532 30% 30%
5 $728 40% 40%
5 $923 60% 60%
1 $1,119 MR MR
3 BR 2 1,421 $619 30% 30%
5 $837 40% 40%
10 $1,062 60% 60%
1 $1,288 MR MR
TOTALS 36
Utilities to be paid by occupant (excluding telephone/internet/ cable):
Water & Sewer By Landlord Heat - Type By Landlord
Hot Water By Landlord Air Conditioning By Tenant
Household Electric By Tenant Other - Specify Internet — By Landlord
XV. PROJECT BUDGET
NOTE: If mixed use, please separate Housing and Non -Housing Costs. Applicant may submit a development budget
created for another funding source for the same project. HTFJC may require additional information from applicants who
use alternative forms and for projects in excess of $500,000.
1. CONSTRUCTION COSTS HOUSING NON -HOUSING
a. Hard $5,491,618
b. Soft
c. Contingency $274,581
d. Construction Interest
TOTAL CONSTRUCTION $5,766,199
2. FEES
a. Architectural / Engineering $291,000
b. Developer's Fee $700,000
7
Utilities to be paid by occupant (excluding telephone/internet/ cable):
Water & Sewer By Landlord Heat - Type By Landlord
Hot Water By Landlord Air Conditioning By Tenant
Household Electric By Tenant Other - Specify Internet — By Landlord
XV. PROJECT BUDGET
NOTE: If mixed use, please separate Housing and Non -Housing Costs. Applicant may submit a development budget
created for another funding source for the same project. HTFJC may require additional information from applicants who
use alternative forms and for projects in excess of $500,000.
1. CONSTRUCTION COSTS HOUSING NON -HOUSING
a. Hard $5,491,618
b. Soft
c. Contingency $274,581
d. Construction Interest
TOTAL CONSTRUCTION $5,766,199
2. FEES
a. Architectural / Engineering $291,000
b. Developer's Fee $700,000
7
7
c. Legal /Appraisal
$55,470
d. Other (Specify) — Syndicator Fees
$25,000
TOTAL FEES
$1,071,470
3. OTHER
HOUSING NON -HOUSING
a. Construction Period Interest
$150,000
b. Marketing
$22,200
c. Initial Equipment and Furniture Budget (Submit Detail)
$20,000
d. Real Estate Taxes During Construction
$10,000
e. Feasibility Study
$7,000
f. Appraisal
$10,000
g. Soil Borings
h. Lead Risk Assessment (For units built before 1978)
i. SAC/WAC Charges
j. Survey
$5,000
k. Rental Attainment Gap
[Difference between income and expenses from completion of construction (i.e.; Certificate of Occupanc) to breakeven].
I. Prepaid Interest
m. Interest Rate Buy Down
n. Relocation Expenses
o. Construction Contingency
See above
(10% of [1. A. a.] for rehab; 3% of [1. A. a.] for new)
p. Off Site Construction Costs
(street) 325,000
q. Letter of Credit Fees (Specify)
r. Developer Fee
s. Developer Overhead (Please Submit Detail & Fee)
t. Debt Service Reserve
$163,000
u. Perm. Interest
v. Other— Insurance, construction loan origination, perm loan
origination, title and recording, environmental report, application
fee, IFA Pre-closing Review Fee, IFA Compliance Fee, Tax
Credit Reservation Fee, IFA Construction Monitoring Fee, 8609
Fee, Furnishings and Equipment
$202,912
TOTAL OTHERI
$590,112
4. LAND
a. Land Cost
$684,500
b. Value of Improvements on Land (Not Included Above)
c. Special Assessments
d. Demolition
e. Other (Specify)
TOTAL LAND
$684,500
5. TOTAL DEVELOPMENT COST OF PROJECT (TOTAL 1-4)
$8,437,281
XVI. CERTIFICATIONS
The undersigned applicant hereby certifies with respect to this application and the project for which the Housing Trust
Fund assistance is requested as follows:
■ All information and representations contained in this application and the attachments hereto are true and
accurate.
■ Applicant will comply with all the applicable federal, state, and local laws and regulations in completing and
operating the projecVprogram, including, without limitation, local zoning laws and codes and Fair Housing Laws.
■ Applicant certifies that the funds requested will be used only for eligible costs associated with the
projecVprogram.
■ Applicant has the ability and capacity to implement the projecVprogram and have duly committed its own human
and financial resources to the projecVprogram as described in the application.
9
■ No costs for which HTFJC assistance is requested have been incurred by the applicant to the date hereof
(outside of costs associated with project feasibility), or will be incurred by applicants prior to HTFJC approval of
the project.
■ Applicant has identified local housing needs in the area in which the project/program will be located, and the
project is designed to meet such needs and to be consistent with local laws, codes and housing plans.
■ Applicant hereby gives permission to the HTFJC to research applicant's history, request additional financial
information and perform other related activities necessary for the reasonable evaluation of this application.
■ Applicant certifies that they understand the RFP and all of its requirements and that this application will be
incorporated into the /Loan Agreement if approved for funding.
■ Applicant understands that information submitted to the HTFJC relating to this application may be public
information.
■ Applicant understands that awards are made at the discretion of the Board of Directors of the HTFJC.
�0
Date: � 112-11 Y
Title: QCrr2 S' T ► I��M r �1' M���
Telephone: 3 2V 7 . );,I Ob
9
M.,'VW� r
Initial Equipment and Furniture Detail:
Maintenance and Janitor Supplies $5,000
Maintenance Equipment (snow blower, shovels, power washer, leaf blower, etc.) $7,000
Office Supplies (computer, paper, ink, pens, files, etc.) $8,000
$20,000
XVII. ATTACHMENTS
Include the following clearly readable attachments. Attachments must be submitted in the following
sequence and be printed on 8.5" x 11" paper. If requested document is not available provide
detailed explanation to substantiate its absence.
I. Applicant Attachments
A. One of the following financial documents
1. HUD Previous Participation Form for general partner or applicant
2. Financial statement for most recent fiscal year
3. Audit letter
B. List of Board Members and their occupations
II. Project Description Attachments
A. Location Map
B. Project Timeline
III. Site Control Attachments (If applicable)
A. As -Is Appraisal (if new purchase)
B. Evidence of Site Control
C. Other (Explain)
IV. Documentation of Committed Funds
V. 10 -year Cash Flow Projections - if mixed use, Housing and Commercial projections should be submitted separately
(transitional and rental projects only).
Application Instructions
The application deadline is 4:00 p.m. on September 14, 2018.
It is anticipated that funding decisions will be made no later than September 28, 2018.
Please submit one electronic copy of the application and one hard copy of the
application including all attachments; ccooper(cb-htfic.org and PO Box 2446, Iowa City,
IA 52244. Please note the change in contact information from previous applications.
Contact Casey Cooper at 358-0212 prior to submitting an application.
10
Exhibit I
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
EXHIBIT I
Financial Documents:
Attached please find the HUD Previous Participation Form for SCI Associates, LLC. SCI Associates, LLC
is the member of the IC Housing Partners, LLC, who is the managing member of IC Housing Group,
LLC.
List of Board Members for Applicant and Occupation
Leo M. Sand, Chief Manager — Chairman of the Board for Sand Companies, Inc.
Jamie J. Thelen, Secretary/Treasurer — CEO/President for Sand Companies, Inc.
James W. Sand, Vice President — Retired
Nicole D. Sand, Vice President — Sr. Business Development Manager for Sand Companies, Inc.
Previous Participation Certification
OMB Approval No. 2502-0118
US Department of Housing and Urban Development US Department of Agriculture
Office of Housing/Federal Housing Commissioner Farmers Home Administration
Part I to be completed by Principals of Multifamily Projects (See instructions)
For HUD HQ1FmFlA use only
Reason for submission:
10. SSN or IRS Employer
Number
1. Agency time and City where the application is filed
2. Project Name, Project Number, City and Zip Code
3. Loan or Contract amount S 4. Number of Units or Beds
5. Section of Act 6. Type of Project (check one)
IC Housing Partners, LLC, PO Box 727, Waite Park, MN 56387-0727
NA
❑ Existing ❑ Rehabilitation §Pro used (New)
/. i Isr an nrunnsed rrmctnais and arraen oruanuriumn rrinm rnr no oronni—rinse
Name and address of Principals and Affiliates (Name: Last, First, Middle Initial) proposing to participate
8 Role of Each Principal in Project
9. Expected %
Ownership in Project
10. SSN or IRS Employer
Number
IC Housing Group, LLC, , PO Box 727, Waite Park, MN 56387-0727
Owner
100%
82-3381850
IC Housing Partners, LLC, PO Box 727, Waite Park, MN 56387-0727
Managing Member
100%
82-3469366
SCI Associates, LLC, PO Box 727, Waite Park, MN 56387-0727
Member of Managing Member
51°fo
27-0792471
Area Code and Tel. No. azazozsmo
--.._....,.0 ....... ..... ....�....., . �..,....,,,... ,,,,,r aNN.y .., ......, .,. moo,.... uu..r., m u,c «oc u,«yw, m, appmra, o parucipare ss p—paits) m me'me(s) aim project ustea above. Inc prmcipal(s) each certify that all the
statements made on this form are true, complete and correct to the best of their knowledge and belief and are made in good faith, including any Exhibits attached to this form. Warning: HUD will prosecute false claims and
statements. Conviction may result in criminal and/or civil penalties. The principal(s) further certify that to the best of their knowledge and belief.
1. Schedule A contains a listing, for the last ten years, of every project assisted or insured by HUD, USDA FmHA and/or State and local government housing finance agencies in which the principal(s) have participated or are
now participating.
2. For the period beginning 10 years prior to the date of this certification, and except as shown on the certification:
a. No mortgage on a project listed has ever been in default, assigned to the Government or foreclosed, nor has it received mortgage relief from the mortgagee;
b. The principals have no defaults or noncompliance under any Conventional Contract or Turnkey Contract of Sale in connection with a public housing project;
c. There are no known unresolved findings as a result of HUD audits, management reviews or other Governmental investigations concerning the principals or their projects;
d. There has not been a suspension or termination ofpayments under any HUD assistance contract due to the principal's fault or negligence;
e. The principals have not been convicted of a felony and are not presently the subject of a complaint or indictment charging a felony. (A felony is defined as any offense punishable by imprisonment for a term exceeding one
year, but does not include any offense classified as a misdemeanor under the laws of a State and punishable by imprisonment of two years or less);
I. The principals have not been suspended, debarred or otherwise restricted by any Department or Agency of the Federal Government or of a State Government from doing business with such Department or Agency;
g. The principals have not defaulted on an obligation covered by a surety or performance bond and have not been the subject of a claim under an employee fidelity bond;
3. All the names of the principals who propose to participate in this project are listed above.
4. None of the principals is a HUD/FmHA employee or a member of a HUD/FmHA employee's immediate household as defined in Standards of Ethical Conduct for Employees of the Executive Branch in 5 C.F.R. Part 2635
(57 FR 35006) and HUD's Standard of Conduct in 24 C.F.R. Part 0 and USDA's Standard of Conduct in 7 C.F.R. Part 0 Subpart B.
5. None of the principals is a participant in an assisted or insured project as of this date on which construction has stopped for a period in excess of 20 days or which has been substantially completed for more than 90 days and
documents for closing, including final cost certification, have not been filed with HUD or FmHA.
6.None of the principals have been found by HUD or FmHA to be in noncompliance with any applicable fair housing and civil rights requirements in 24 CFR 5.105(a). (If any principals or affiliates have been found to be in
noncompliance with any requirements, attach a signed statement explaining the relevant facts, circumstances, and resolution, if any).
7. None of the principals is a Member of Congress or a Resident Commissioner nor otherwise prohibited or limited by law frolcontracting with the Government of the United States of America.
8.Statements above (if any) to which the principal(s) cannot certify have been deleted by striking through the words with a peh, aAd the levant principals) have initialed each deletion (if any) and have attached a true and
accurate signed statement (if annheablel to explain the facts and circa mstnners_ \ k 7� l
Name of Principal
Si pato 1 Certification Date(mm/ddtvvvv
Area Code and Tel. No.
IC Housing Group, LLC
911112018
320-202-3100
IC Housing Partners, LLC
91112018
320-202-3100
SCI Amodates, LLC
9/112018
320-202-3100
I
This form prepared b(print name —1. $asaI
Area Code and Tel. No. azazozsmo
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (02/2013)
Page ] of 2
Previous Participation Certification
OMB Approval No. 2502-0118
(ExD. 02/29/2016)
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUDlFmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv. If no previous oroiects_ write by vour name. "No ri revinns nnrticinatinn. Fiat Jr—rienrn»
1. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
participant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
5. Was the Project ever
in default during your
participation
Yes No Ifyes,expfidn
6. Inst MOR rating and
Physical Insp. Score and
date
IC Housing Group, LLC
No Previous Participation, First Experience
Supervisor
Director of Housing(Director, Multifamily Division
Approved
Date (mmlddlyyyy)
IC Housing Partners, LLC
o Previous Participation, First Experience
Note: S is Satisfactory
i
Part II- For HUD Internal Processing Only
Received and checked by me for accuracv and completeness: recommend nonrnvat nr ref. to Headnnartrrc at?Pr rher4;no A,,,,r,.,,r;ArA t,�.
Dake (nunlddlyyyy)
Tel No. and area code
F]A. No adverse information; form HUD -2530 approval 0C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director of Housing(Director, Multifamily Division
Approved
Date (mmlddlyyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (0212013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check fpr arcnrsry If— r,revin„s nrniectc u,ritP I,.., -P I'Nv r,,.a.,,,,,,o ,,..,,.F;,.;,..,.:,,.. Ti:....a V----
1. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
artici ant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
5. Was the Project ever
in default during your
participation
Yes No ITyes,i,xphua
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
D5959 Maple Village
General Contractor - 2009
Current
Approved
X
MHFA Mgmt:
❑ Yes ❑ No
Maple Grove, MN - MHFA
Developer - 2007
311312017; S
General Partner 2007/2012
-Current
Managing Agent - 2009 -Current
Identity of Interest
D6234 Hoffman Place
General Contractor -2009
Current
X
MHFA Mgmt:
White Bear Lake, MN - MHFA
Developer- 2008
7112/2016; 5 ''...
General Partner 2008/2012
-Current
Managing Agent- 2010 -Current
Identity of Interest
D1382 Granite Hill Homes
General Contractor- 2014
Current
X
No Inspections.
artell, MN - MHFA
Managing Agent- 2010- Current
Developer - 2013
General Partner - 2010/2012-
-Current
Identity of Interest
D6233 Cornerstone Village
General Contractor- 2010
Current
X
MHFA Mgmt:
St. Michael, MN - MHFA
Developer - 2009
8/23/2017; S
General Partner -2009/2012 -
Current
Managing Agent -2011 -Current
Identity of Interest
Note: S is Satisfactory
Part H- For HUD Internal Processing Only
Date (mm/dd/yyyy)
Tel No. and area code
E]A. No adverse information; form HUD -2530 approval F_JC. Disclosure or Certification problem
recommended.
Staff
Processing and Control
QB. Name match in system E] D. Other (attach memorandum)
SupervisorDirector
of HousinglDirector, Multifamily Division
Approved
Date (mmldd/yyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (02/2013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list ofthe principals' previous participation projects and participation history in multifamily
Housing programs of HUD/FmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more mace_ Donhle check for acrurnex,. if nn nrPvinirc nrniacte write by vnnr name "Nn --i—. r:A—ti.,r, T;_+
1. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Gave agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
arrici ant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
S.Was the Project ever
in default duringour
y
participation
Yes No Ifyes,explai.
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
D6286 Maple Village II
General Contractor- 2012
Current
Approved
X
MHFA Mgmt:
TO Yes ❑ No
Maple Grove, MN - MHFA
Developer -2013
311312017; S
General Partner - 2013 -Current
Managing Agent -2013 -Current
Identity of Interest
7570 Western U Plaza
General Contractor- 2014
Current
X
MHFA Mgmt:
St. Paul, MN - MHFA
Developer - 2014
8110/2017; S
General Partner - 2014 -Current
Managing Agent -2016 -Current
Identity of Interest
General Contractor- 2015
7649 Tamarack Place
Developer - 2014
Current
X
New Construction in
Roseau, MN - MHFA
General Partner- 2014 -Current
2016. No inspections.
Managing Agent -2016 -Current
Identity of Interest
6680 West View Estates
General Contractor- 2012
Current
X
MHFA Mgmt:
Plymouth, MN - MHFA
Developer- 2012
8116/2017; S
General Partner - 2012 -Current
Managing Agent -2013 -Current
Identity of Interest
1477 Granite City Townhomes
General Contractor - 2013
Current
X
MHFA Mgmt:
St. Cloud, MN - MHFA
Developer- 2013
6/14/2017; S
General Partner - 2013 -Current
Managing Agent -2010 -Current
Note: S is Satisfactory
Identity of Interest
Part II- For HUD Internal Processing Only
RP—i—d and rh—kM by mr fnr are, — a.vi --A--
Date
Date (mm/dd/yyyy)
Tel No. and area code
❑ A. No adverse information; form HLTD-2530 approval ❑ C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director of Housing/Director, Multifamily Division
Approved
Date (mmldd/yyyy)
TO Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (0212013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
(Exu. 02129/2016)
Schedule A: List of Previous Projects and Section 8 Contracts. Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUDJFmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more space. Double check for accuracv Tf nn nreviom rimiecta write by vnnr name "Nn r revin„Q narNo;oatinn Fire+ RQnurinnrn�
I. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
participant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
5.was the Project ever
in default during your
participation
Yes No Ifyes,explain
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
07602 - Linden Grove Veteran Apartments
General Contractor - 2015
Current
Approved
X
MHFA Mgmt:
❑Yes ❑ No
St. Cloud, MN - MHFA
Developer- 2015
6/1312017; S
General Partner -2015-Current
Managing Agent -2016 -Current
Identity of Interest
D1492 - Woodland Village Townhomes
General Contractor- 2015
Current
X
MHFA Mgmt:
St- Cloud, MN - MHFA
Developer - 2015
611312017; S
General Partner - 2010 -Current
Managing Agent -2010 -Current
Identity of Interest
D7736 -Cornerstone Village I I
General Contractor - 2016
Current
X
New Construction in
tMichael,MN -MHFA
Developer -2016
2017.
General Partner -2016 -Current
Managing Agent -2017 -Current
Identity of Interest
7865 - Balsam Apartments
General Contractor - 2016
Current
X
New Construction in
Dayton, MN - MHFA
Developer - 2016
2017.
General Partner - 2016 -Current
Managing Agent -2017 -Current
Identity of Interest
16-17 - Coral Ridge Apartments
General Contractor - 2016
Current
X
New Construction in
oralville, IA - I FA
Developer - 2016
2018.
General Partner- 2016 -Current
Managing Agent -2017 -Current
Note: S is Satisfactory
Identity of Interest
Part H- For HUD Internal Processing Only
Received and checked by me fpr arenracv and recommend approval ar ref to Heedm,arrera aft- rhrrk;n annr in I
Date (mmlddlyyyy)
Tel No, and area code
❑A. No adverse information; form HUD -2530 approval E] C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director of Housing/Director, Multifamily Division
Approved
Date(mmlddlyyyy)
❑Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (0212013)
Page 2 of 2
Previous Participation Certification
OMB Approval No. 2502-0118
Schedule A: List of Previous Projects and Section S Contracts- Below is a complete list of the principals' previous participation projects and participation history in multifamily
Housing programs of HUDlFmHA, State and local Housing Finance Agencies. Note: Read and follow the instruction sheet carefully. Make full disclosure. Add extra sheets if you
need more soace. Double check for accuracv. Tf no nrevious nrniects_ write by yr nr name "Nn nrevinnc n tirinaNnn Firef lit—A.nr. 11
1. Principals Name (Last, First)
2. List of previous projects (Project name,
project ID and, Govt. agency involved)
3.List Principals' Role(s)
(indicate dates participated, and if
fee or identity of interest
participant)
4. Status of loan
(current, defaulted,
assigned, foreclosed)
S.Was the Project ever
in default during your
participation
Yes No Ifyes,explain
6. Last MOR rating and
Physical Insp. Score and
date
SCI Associates, LLC
D3007 - School Square
General Partner - 2011 -current;
Current
Approved
X
Rural Development
❑ Yes ❑ No
Albany, MN - USDA
Managing Agent - 2012 -current
812412017; S
Identity of Interest
Euclid View Flats
General Contractor- 2018
Current
X
New Construction in
St. Paul, MN - City of Saint Paul
Developer - 2017
2018.
General Partner -2017 -Current
Managing Agent -2018 -Current
Identity of Interest
Note: S is Satisfactory
Part H- For HUD Internal Processing Only
"Received and checked by me for accuracy and comnletera, s recommend annrnval or refer to Headnnartm atix nhenkino anr,mn ;i h—
Date (mmfddlyyyy)
Tel No, and area code
❑A. No adverse information; form HUD -2530 approval [__J C. Disclosure or Certification problem
recommended.
Staff
Processing and Control
❑B. Name match in system ❑ D. Other (attach memorandum)
Supervisor
Director of Housing/Director, Multifamily Division
Approved
Date(mmfddlyyyy)
❑ Yes ❑ No
Previous editions are obsolete ref Handbook 4065.1 Form HUD -2530 (0212013)
Page 2 of 2
Instructions for Completing the Previous partnerships, corporations, trusts, non-profit • Projects to be financed according to Section the State or local housing finance agency project or
Participation Certificate, form HUD -2530 organizations, any other public or private entity that
202 of the Housing Act of 1959 (Elderly and contract number. Include all project or contract
Carefully read these instructions and the applicable will participate in the proposed project as a sponsor,
Handicapped). identification numbers that are relevant to the project
regulations. A copy of those regulations published at owner, prime contractor, turnkey developer,
• Projects in which 20 percent or more of the units are Also enter the name of the city in which the project is
24 CER 200.210 to 200145 can be obtained from managing agent, nursing home administrator or
to receive a subsidy as described in located, and the ZIP Code.
the Multifamily Housing Representative at any HUD operator, packager, or consultant. Architects and
24 C.F.R. 200.213.
Office. Type or print neatly in ink when filling out attorneys who have any interest in the project other
. Purchase of a project subject to a mortgage insured Block 3: Fill in the dollar amount requested in the
this form. Mark answers in all blocks of the form. If than an arm's length fee arrangement for professional
or held by the Secretary of HUD. proposed mortgage, or the annual amount of rental
the form is not filled completely, it will delay services are also considered principals by HUD,
assistance requested.
approval of our application.
PP Y PP In the case of partnerships, all general partners
• Purchase of a Secretary -owned project.
Block 4: Fill in the number of apartment units
Attach extra sheets as you need them. Be sure to regardless of their percentage interest and limited
YP g
• Proposed substitution or addition of a principal or
principal participation in a different capacity from Proposed, such as "40 units." For hospital projects or
indicate "Continued on Attachments" wherever partners having a 25 percent or more interest in the
thatpreviously approved for the same project. nursing homes, fill in the number of beds proposed,
appropriate. Sign each additional page that you attach partnership are considered principals. In the case of
• Proposed acquisition by an existing limited partner such as "100 beds."
if it refers to you or your record. public or private corporations or governmental
of an additional interest in a project resulting in a Block 5: Fill in the section of the Housing Act under
Carefully read the certification before you sign it. entities, principals include the president, vice
total interest of 25 percent or more or proposed which the application is filed.
Any questions regarding the form or how to complete president, secretary, treasurer and all other executive
acquisition by a corporate stockholder of an Block 7: Definitions of all those who are considered
it can be answered by your HUD Office Multifamily officers who are directly responsible to the board of
additional interest in a project resulting in a total principals and affiliates are given above in the section
Housing Representative. directors, or any equivalent governing body, as well
interest of 10 percent or more. titled "Who Must Sign and File... "
Purpose: This form provides HUD with a certified as all directors and each stockholder having a 10
• Projects with U.S.D.A., Farmers Home Ad- Block 8: Beside the time of each principal, fill in the
report of all previous participation in HUD percent or more interest in the corporation.
ministration, or with state or local government appropriate role. The following are examples of
multifamily housing projects by those parties making
housing finance agencies that include rental Pt
possible roles that the principals may assume:
application. The information requested m this form is Affiliates are defined as any person or business
f th H i
8 oe Housing cf
Ao
assistance under Section Owner/Mortgagor, Managing Agent, Sponsor,
1937- For form
used by HUD to determine if you meet the standards concern that directly or indirectly controls the policy
projects of this type, HUD -2530
be filed Developer, General Con -tractor, Packager,
established to ensure that all principal participants in of a principal or has the power A holding orPP
should with theappropriate a lication,
Consultant, Nursing Home Administrator etc.
directly m those ageneses. g
e m le
HUD projects will honor their legal, financial and Parent corporation would be an example of an affiliate
a
Review of Adverse Determination: If approval
contractual obligations and are acceptable risks from if one of its subsidiaries is a principal.
of Block 9: Fill in the percentage of ownership in the
the underwriting standpoint of an insurer, lender or
governmental agency. HUD requires that you certify
your record of previous participation in HUDIUSDA-
FmHA, State and Local Housing Finance Agency
projects by completing and signing this form, before
your project application or participation can be
approved.
HUD approval of your certification is a necessary
precondition for your participation in the project and
in the capacity that you propose. If you do not file this
certification, do not furnish the information requested
accurately, or do not meet established standards, HDD
will not approve your certification.
Note that approval of your certification does not
obligate HUD to approve your, project application,
and it does not satisfy all other HUD program
requirements relative to your qualifications.
Who Must Sign and File Form HUD -2530:
Form HUD -2530 must be completed and signed by all
principals applying to participate in HUD multifamily
housing projects, including those who have no
previous participation. The form must be signed and
filed by all principals and their affiliates who propose
participating in the HUD project. Use a separate form
for each role in the project unless there is an identity
of interest.
Exception for Corporations — All principals and
affiliates must personally sign the certificate except in
the following situation. When a corporation is a
principal, all of its officers, directors, trustees and
stockholders with 10 percent or more of the common
(voting) stock need not sign personally if they all have
the same record to report. The officer who is
authorized to sign for the corporation or agency will
list the names and title of those who elect not to sign.
However, any person who has a record of
participation in HUD projects that is separate from
that of his or her organization must report that activity
on this form and sign his or her time, The objective
is full disclosure.
Exemptions — The names of the following parties do
not need to be listed on form HUD -2530: Public
Housing Agencies, tenants, owners of less than five
condominium or cooperative units and all others
whose interests were acquired by inheritance or court
order.
Where and When Form HUD -2530 Must Be
Filed: The original of this form must be submitted to
the HUD Office where your project application will
be processed at the same time you file your initial
project application. This form must be filed with
applications for projects, or when otherwise required
in the situations listed below:
• Projects to be financed with mortgages insured
Principals include all individuals, joint ventures, under the National Housing Act (FHA).
your pi-aipaaon in a HUD project is denied, proposed project that each principal is expected to
withheld, or conditionally granted on the basis of your have.
record of previous Participation, you will be notified
by the HUD Office. You may request reconsideration
by the HUD Review Committee. Alternatively, you
may request a hearing before a Hearing Officer.
Either request must be made in writing within 30 days
from your receipt of the notice of determination.
If you do request reconsideration by the Review
Committee and the reconsideration results in an
adverse determination, you may then request a
hearing before a Hearing Officer. The Hearing Officer
will issue a report to the Review Committee. You will
be notified of the final ruling by certified wait.
Specific Line Instructions:
Reason for submitting this Certification: e.g.,
refinance, change in ownership, change in
management agent, transfer of physical assets, etc.
Block 1: Fill in the time of the agency to which you
are applying. For example: HUD Office, Farmers
Home Administration District office, or the name of a
State or local housing finance agency. Below that, fill
in the name of the city where the office is located.
Block 2: Fill in the time of the project, such as
"Greenwood Apts." If the name has not yet been
selected, write 'Name unknown." Below that, enter
the HUD contract or project identification number,
the Farmers Home Administration project number, or
Page I of 2
Block 10: Fill in the Social Security Number or
IRS employer number of every principal listed,
including affiliates.
Instructions for Completing Schedule A:
Be sure that Schedule A is filled-in completely,
accurately and the certification is properly dated
and signed, because it will serve as a legal record
of your previous experience. All Multifamily
Housing projects involving HUD/ FmHA, and
State and local. Housing Finance Agencies in which
you have previously participated must be listed.
Applicants are reminded that previous
participation pertains to the individual principal
within an entity as well as the entity itself. A newly
formed company may not have previous
participation, but the principals within the company
may have had extensive participation and disclosure
office activity is required.
Column 2. AM previous projects now be Gated or your
n"WfuttGon cannot be processed Include the name of all
projects, project number, city where it is located and the
govemmenral agency (HUD, USDA-FmHA a state or local
housing fmanceagency) that was involved
Column 3. List the relies) as a principal, dates participated
and iffee or identity ofinterest(IOD with owners.
Column 4. Indicate the current status ofthe loan. Except for from HUD -2530, including schedule A, read the should fill in the date of the signature and a telephone convictions within. the past 10 years. If you are convicted of
ciueent loan, the date associated with the status is required. Certification carefully. In the box below the Statement ofthe number. By providing a telephone number, HUD can reach a felony within the past 10 years, strike out 2e. and attach
Loans under a workout arrangement are considered certification, fill in the names, of all principals and affiliates you in the eventof any questions. statement of explanation. A felony conviction will not
assigned. For all noncurrent loans, an explanation of the as listed in block 7. Each principal should sign the necessarily cause your participation to be disapproved unless
status is required- certification with the exception in some cases of individuals If you cannot certify and sign the certification as it is printed there is a criminal record or other evidence that your
Column 5. Explain any project defaults during your associated with a corporation (see "Exception for because some statements do not correctly describe your previousconductormethod ofdoingbusineschas been such
Participation- Corperaions"in the section of the instructions titled "Who record, use a pen to strike through those parts that differ with that your participation in the project would make it an
Column 6. Provide the latest Management Review (MOR) Must Sign and File Form HUD -2530). Principal who is yourrecord, andthen sign and certify. unacceptable risk from the underwriting stand point of an
ratingand Physical Inspection score. signing on behalf of the entity should attach signature Attach a signed statement of explanation of the item you insurer, leaderor governmental agency.
Certifiicmion: After you have completed all other parts of authority document Each principal who signs the form have shuck art on the certification. Item 2e. relates to felony
The Department of Housing and Urban Development (HUD) is authorized to collect this information by law (42 U.S.C. 3535(d) and 24 C.F.R. 200.217) and by regulation at 24 CFR 200.210. This
information is needed so that principals applying to participate in multifamily programs can become HUD -approved participants. The information you provide will enable HUD to evaluate
your record with respect to established standards of performance, responsibility and eligibility. W ithout prior approval, a principal may not participate in a proposed or existing multifamily
project. HUD uses this information to evaluate whether or not principals pose an unsatisfactory underwriting risk. The information is used to evaluate the potential principals and approve
only individuals and organizations that will honor their legal, financial and contractual obligations.
Privacy Act Statement: The Housing and Community Development Act of 1987, 42 U.S.C. 3543 requires persons applying for a Federally -insured or guaranteed loan to furnish his/her Social Security
Number (SSN). HUD must have your SSN for identification ofyour records. HUD may use your SSN for automated processing of your records and to make requests for information about you and
your previous records with other public agencies and private sector sources. HUD may disclose certain information to Federal, State and local agencies when relevant to civil, criminal, or regulatory
investigations and prosecutions. It will not be otherwise disclosed or released outside of HUD, except as required and permitted by law. You must provide all ofthe information requested in this
application, including your SSN.
Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and youare not required to complete this form,
unless it displays a currently valid OMB control number.
A response is mandatory. Failure to provide any of the information will result in your disapproval of participation in this HUD program.
Page 2
Exhibit II
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
Location Maps
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IC Housing Group, LLC
Housing Trust Fund of Johnson County
Project Timeline:
NEX was awarded tax credits from Iowa Finance Authority in August 2018 and previously received
$325,000 from the Housing Trust Fund of Johnson County. Almost all of the financing is in place for
this project to start soon; however, there remains $650,000 gap after the Ownership/Developer
contribution of $326,221. The project is anticipated to start construction in early 2019 and there will
be approximately a 12 month construction timeline. Construction is anticipated to be complete in
early 2020.
Exhibit III
Iowa City, Iowa
NEX Apartments
IC Housing Group, LLC
Housing Trust Fund of Johnson County
EXHIBIT III
Site Control Attachments:
Attached is the purchase agreement for the property.
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
AMENDED AND RESTATED
PURCHASE AGREEMENT
THIS AMENDED AND RESTATED PURCHASE AGREEMENT ("Agreement") is made
and entered into as of this 13th day of August, 2018, by and between LYLE MARK LARSON AND
BETSY LARSON (collectively "Seller") and IC HOUSING GROUP, LLC or assigns (`Buyer").
WHEREAS, Seller is the fee owner of certain real property to be annexed into the City of Iowa
City ("City"), County of Johnson ("County"), State of Iowa ("State"), consisting of approximately 8.04
acres of land, PID No. 0907230001, legally described as Tegler Subdivision Lot 1, subject to Right -of -
Way Easement according to the plat thereof recorded in Book 25, Page 42, Plat Records of Johnson
County Recorder. Seller is willing to sell a portion of Seller's real property consisting of approximately
5.27 acres ("Property"), as shown on Exhibit A. The Property as defined herein shall include the
improvements, utilities, easements, hereditaments, rights and appurtenances on or relating to the
Property, including any future forfeitures of adjacent interest in real estate by any governmental
authority.
WHEREAS, Seller and Buyer entered into the Purchase Agreement dated November 15, 2017
("Original Purchase Agreement") and now wish to amend and restate the Original Purchase Agreement
in its entirety as set forth herein.
WHEREAS, Seller desires to sell, transfer and assign the Property to Buyer and Buyer desires to
purchase and accept the Property from Seller, on the terms and subject to the conditions set forth herein.
NOW THEREFORE, in consideration of the mutual covenants and conditions hereinafter
expressed, the adequacy and receipt of which are hereby acknowledged, Buyer and Seller agree as
follows:
PURCHASE AND SALE. Seller agrees to sell, transfer and assign the Property to Buyer and
Buyer agrees to purchase and accept the Property from Seller, on the following terms and subject
to the conditions set forth herein.
2. PURCHASE PRICE. The Purchase Price for the Property shall be One Million Two Hundred
Thousand and No/100 Dollars ($1,200,000.00).
3. PAYMENT OF PURCHASE PRICE AND EARNEST MONEY. Buyer shall deposit earnest
money in the amount of Ten Thousand and No/100 Dollars ($10,000.00) ("Earnest Money"),
within five (5) business days after this Agreement is fully executed by the parties, into a trust
account at Tri -County Abstract & Title Guaranty, at its St. Cloud, Minnesota office ("Title
Company"). The Earnest Money, except as otherwise specifically provided herein, is to be
credited to Buyer at Closing. The parties agree that Buyer shall have the unilateral right up to and
including the Contingency Date, as defined below, or a later date if so provided herein, to cause
the Title Company to release the Earnest Money together with any accrued interest to Buyer
upon Buyer's written notice to Seller and the Title Company of an unsatisfied contingency. The
Earnest Money shall in all events be refundable to Buyer in the event this Agreement does not
close as a result of an unsatisfied Buyer contingency or a breach of this Agreement by Seller.
The balance of the Purchase Price shall be paid by Buyer to Seller in cash at Closing.
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
4. DATE OF CLOSING AND CONTINGENCY DATE. The Date of Closing shall be on the
date of closing of Buyer's construction financing which shall be on or before January 31, 2019,
or earlier in the sole discretion of the Buyer ("Date of Closing" or "Closing"), on which date
Seller shall deliver a Warranty Deed for the Property and such other documentation referred to in
Section 9 hereof. Buyer would provide at least sixty (60) days' notice of Date of Closing if in its
sole discretion Buyer decides to close earlier than January 31, 2019. Time being of the essence,
in the event the transaction does not close on or before the Date of Closing due to a failure to
perform by Seller, Buyer may terminate this Agreement by written notice to Seller, and in that
event, this Agreement shall be null and void, Seller shall execute and deliver to Buyer a
Cancellation of the Purchase Agreement and all Earnest Money shall be promptly paid to Buyer.
The Contingency Date shall be November 30, 2018 ("Contingency Date"). Alternatively, Buyer
may at its option, extend the Contingency Date for a period of up to sixty (60) days to permit
Buyer to satisfy or waive its contingencies herein, including without limitation, to receive
government approvals or to close on its financing, or to allow Seller to satisfy its unfulfilled
obligations hereunder. In that event, the Date of Closing shall be extended for the same period of
time as the Contingency Date is extended. If Buyer extends the Contingency Date for an
additional sixty (60) days as described herein, all of the Earnest Money shall become
nonrefundable and shall be paid to Seller upon exercise of said option to extend the Contingency
Date.
5. REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND CLOSING COSTS.
5.1 Seller represents that all real estate taxes and installments of special assessments due and
payable in all years prior to the year of Closing are paid in full. Real estate taxes due and
payable in the year of Closing shall be prorated between the parties on a fiscal year basis
(July 1 - June 30).
5.2 Seller shall pay in full on or before Closing all unpaid levied, deferred and all pending
assessments (including installments not yet due and payable) existing, in process or of
record as of the Date of Closing. Buyer shall pay all real estate taxes as well as personal
property taxes due and payable subsequent to Closing.
5.3 Seller shall be responsible for half of the title closing fee, all payments of any state,
county or local documentary taxes or transfer fees attributable to the transfer or sale of the
Property. Seller will pay the cost of preparing and recording any documents necessary to
establish marketable title in Seller's name. Buyer shall be responsible for half of the title
closing fee, and all recording fees or charges for the deed conveying the Property. Buyer
shall be responsible for and pay the cost and expense of the title insurance policy for this
transaction.
6. DOCUMENT INSPECTION. Within thirty (30) days of the date this Agreement is executed
by all parties, Seller shall provide Buyer with the items indicated below. Seller does hereby
represent that all submitted items shall be true and correct in all material respects:
6.1 An Abstract of Title certified to date sufficient for the Title Company to issue a title
insurance commitment (current form) for an ALTA owner's title insurance policy from
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B77D
Title Company, as agent for Buyer, ("Title Commitment") naming Buyer as the proposed
insured in the amount of the Purchase Price insuring marketability and subject only to
such matters as Buyer may approve. Said commitment shall include the following:
A. Itemization of all levied, pending or deferred special assessments or a statement that
there are none.
B. Itemization of all taxes affecting the Property and the year to which they relate.
C. A waiver of all general exceptions to the owner's policies, including exceptions for
(i) any mechanic's or materialmen's liens for work performed or materials furnished
prior to date of the policy, (ii) the rights of parties in possession and (iii) items that
arise or exist after the date of commitment and up to the date of recording of the
documents establishing title in Buyer.
D. Copies of all documents creating exceptions to title.
Buyer shall be allowed sixty (60) days after receipt of said Title Commitment and
exception documents for examination and making objections thereto. Said objections are
to be made in writing or deemed waived, subject, however, to Seller's obligation to
transfer marketable title to the Property to Buyer at the Closing. If any objections are so
made, Seller shall be allowed sixty (60) days to cure such objections. The Seller shall
make every reasonable effort to cure such objections. If Seller is unable to cure such
objections, then Buyer may, at its option: (i) terminate this Agreement without any
liability on its part, and receive a full refund of the Earnest Money; or (ii) waive its
objections and close this purchase and sale subject thereto without any reduction in the
purchase price. In the event Buyer in its sole discretion is not satisfied with the Title
Commitment or exception documents, Buyer may cancel this Agreement by written
notice to Seller any time on or before the Contingency Date and in such event this
Agreement shall be null and void and Seller shall immediately sign a cancellation of
Purchase Agreement and authorize and instruct the Title Company to release to Buyer
any and all Earnest Money. Buyer may request and receive an updated Title Commitment
prior to Closing and in the event there are any changes to the Title Commitment, Buyer
and Seller shall have the objection and cure rights set forth above with respect to such
changes; provided, however, that the objection and cure timeframes for such changes
shall be reduced from sixty (60) days to twenty (20) days.
6.2 Copies and electronic CAD versions of the most recent survey of the Property with
topographical features in Seller's possession or control, or in the possession or control of
Seller's agents or consultants and copies and electronic CAD versions of any as -built
surveys of the Property and related public and private improvements, in Seller's
possession or control, or in the possession or control of Seller's agents or consultants.
Seller discloses to Buyer that neither they nor their consultants or agents are in possession
or control of any of the documentation set forth in this paragraph.
DocuSign Envelope ID: 4FF9D9DC-ADBF-4F34-849F-66E75636B770
6.3 Copies of any wetland delineation reports along with all correspondence with the local
watershed district, City, County, the Army Corp of Engineers, the Department of Natural
Resources and any other governmental agency having authority relating to wetland
issues, in Seller's possession or control, or in the possession or control of Seller's agents
or consultants.
Seller discloses to Buyer that neither they nor their consultants or agents are in possession
or control of any of the documentation set forth in this paragraph.
6.4 Copies of all easements, restrictions and other encumbrances or servitude's benefiting or
burdening the Property, in Seller's possession or control, or in the possession or control
of Seller's agents or consultants. Seller discloses to Buyer that any easements,
restrictions and other encumbrances or servitudes benefiting or burdening the Property
are recorded with the Johnson County Recorder and will be shown on the continued
Abstract of Title for the property. The parties are aware of a well, water line and septic
system on the Property. Seller is unsure whether there is a written, recorded easernent(s)
for said well, water line and septic system. Buyer shall be responsible for the cost and
expense to vacate or remove any of said easements on the Property, if Buyer at its sole
discretion chooses to remove same. Buyer, at its sole discretion, may choose to cancel
this Agreement and not to remove such easements.
Buyer shall have until the later of (i) the Contingency Date, or thirty (30) days following Buyer's
receipt of the last of the above-described documents and information, to examine the same. If
Buyer in its sole discretion is dissatisfied with any of these documents, Buyer may cancel this
Agreement by written notice to Seller on or before the Contingency Date. In such event, this
Agreement shall be null and void and Seller shall immediately sign a cancellation of Purchase
Agreement and authorize and instruct the Title Company to release to Buyer any and all Earnest
Money.
7. POSSESSION AND PHYSICAL INSPECTION.
7.1 Seller shall deliver possession of the Property to Buyer on the Date of Closing. Seller
shall deliver the Property, platted as a legal conforming lot. The subdivision or site plan
approval proceeding as well as all costs and expenses relating thereto in order to make
the Property as a platted, legal conforming lot shall all be the sole responsibility of Buyer.
7.2 Buyer may, at any time on and after the date hereof, with providing at least 48 hours'
notice, itself or by its officers, employees, agents, contractors or representatives, enter
upon the Property for the purpose of conducting thereon such soil or other investigations,
surveys, environmental audits, examinations or tests as Buyer may desire. Buyer shall
enter the Property subject to such reasonable rules as Seller may promulgate and Buyer
shall promptly restore any damage to or excavation of the Property. If Buyer in its sole
discretion is dissatisfied with the physical inspection of the Property, Buyer may cancel
this Agreement by written notice to Seller on or before the Contingency Date. In such
event, this Agreement shall be null and void and Seller shall immediately sign a
cancellation of Purchase Agreement and authorize and instruct the Title Company to
release to Buyer any and all Earnest Money.
4
DocuSign Envelope ID: 4FF9D1DC-ADBF-4F34-849F-66E75636B770
Buyer will not suffer or permit any mechanic's liens to attach to or be filed against or
upon the Property or any part thereof by reason of any of the foregoing inspections, tests,
reviews or audits or site assessments and shall indemnify Seller for any costs they may
incur relating to any liens. Buyer shall be solely responsible for its employees and agents
in accessing the Property in the conduct of such tests and audits. Buyer shall indemnify
and hold Seller harmless from any damage or injury sustained by Buyer, its employees or
agents during its access upon and any testing carried out on the Property. Buyer shall
cause the Property to be returned to Seller in the same condition as existed prior to
Buyer's inspections, reasonable wear and tear excepted.
8. CONTINGENCIES TO BUYER'S OBLIGATIONS HEREUNDER. In addition to any other
contingencies set forth herein to Buyer's obligations hereunder, Buyer's obligations to perform
under this Agreement are further contingent upon the following:
8.1 Buyer obtaining all necessary approvals and commitments, to Buyer's satisfaction, of the
City, County and any other governmental agency relating to the intended development or
use by Buyer of the Property. Such approvals include, but are not limited to: site plan, tax
abatement or exemption, annexation, zoning, variances, preliminary/final plat,
conditional use or other permits, approval for signage and approval of grading, drainage
and utility plans.
8.2 Buyer's award and closing of federal low income housing tax credits and other grants and
loans from the Iowa Finance Authority and all other financing approvals and
commitments used to finance Buyer's development.
8.3 Buyer shall have received satisfactory confirmation that all utilities sufficient for Buyer's
intended development are or will be installed on or before the Closing at no additional
cost to Buyer. These utilities include, but are not limited to domestic water, sanitary
sewer, and all related connections together with electrical, natural gas, telephone and
cable television connections on or adjacent to the Property. Seller shall have no
responsibility whatsoever as to any cost or expense relating to the utilities described in
this subparagraph
8.4 Seller's performance of all of Seller's obligations as required hereunder.
8.5 Such inspections, reviews, surveys, examinations and environmental assessments of the
Property as Buyer deems necessary, with the results of each being satisfactory to Buyer
in its sole discretion.
8.6 There shall not have been any material adverse change in the condition of the Property or
any event which would materially affect Buyer's proposed use of the Property.
If Buyer in its sole discretion is not satisfied with any one or more of the foregoing
contingencies, Buyer may cancel this Agreement by written notice to Seller on or before the
Contingency Date. If such notice is provided by this date, this Agreement shall be null and void,
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Seller shall execute and deliver to Buyer a Cancellation of the Purchase Agreement and all
Earnest Money shall be promptly paid to Buyer.
9 DOCUMENTS TO BE DELIVERED ON DATE OF CLOSING. Subject to full, complete and
timely performance by Buyer of its obligations herein, Seller shall deliver the following documents
to Buyer on the Date of Closing:
9.1 An affidavit in the customary form by Seller indicating that on the Date of Closing there are
no outstanding unsatisfied judgments, tax liens, mechanic's liens, or bankruptcies against or
involving Seller, and there are no outstanding interests in the Property and non -foreign ownership
and that, if appropriate, there are no leases, maintenance agreements, or other agreements in force as
to the Property except as disclosed and that Seller knows of no unrecorded interests in the Property
of any kind, together with whatever standard owner's affidavit may be required by Buyer.
9.2 Warranty Deed duly executed and acknowledged by Seller including proper well and septic
system certification, if applicable.
9.3 Declaration of Value executed by Seller together with any state, county or local transfer taxes
attributable to the sale and transfer of the Property.
9.4 ISBA Groundwater Hazard Statement executed by Seller for the Property.
Seller agrees now and in the future to execute any further instruments, documents and agreements
reasonably necessary to assure Buyer has current and future marketable title to and the beneficial use
of the Property.
10. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents, warrants and
agrees now and as of the Date of Closing as follows:
10.1 That there are no agreements or understandings between it and any other parry that materially
affect the Property.
10.2 That Seller shall use its best efforts to cooperate and assist Buyer in obtaining such approvals,
permits or consents from applicable governmental agencies to facilitate and accomplish
Buyer's intended development, provided no such approved development or construction shall
begin on the Property until the closing has been completed. "Best effort" of Seller includes
meeting with local governmental officials, filing or joining where appropriate in petitions
requested by Buyer and necessary to accomplish Buyer's proposed development and use of
the Property, attending and speaking at public hearings and to take other steps which are
necessary to support Buyer's proposed development and use of the Property. However, Seller
shall not be obligated to incur costs in these efforts with the exception of the time required of
the Seller and its agents.
Notwithstanding the foregoing, the parties specifically agree that since Sellers reside in the
State of Colorado, any hearing or meeting at which their presence is requested by Buyer at a
time that Sellers are not otherwise in Iowa City, Iowa, shall be attended by an attorney from
the office of Anderson & Houghton, L.L.P., Iowa City, Iowa. The expense of said attorney
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attending any such hearing or meeting shall be paid by Seller and such expense shall be
reimbursed to Seller by Buyer within 30 days of billing.
10.3 That the person(s) executing this Agreement on behalf of Seller has full authority to bind
Seller to this Agreement.
10.4 That there are no existing proceedings nor, to the best of Seller's knowledge, any threatened
proceedings against the Property or owners thereof, either administrative or judicial, on
account of any alleged violation of any laws, any rules, regulations or order, and that there is
no litigation or condemnation pending, nor to the best of Seller's knowledge, threatened,
which would affect the Property or the intended use thereof by Buyer. Seller knows of no
present or pending proceeding, which could cause special assessments against the Property
except as may be disclosed by the title commitment.
10.5 That Seller has or will have as of the Date of Closing, marketable title to the Property, subject
to beneficial easements and restrictive covenants of record, but free and clear of all liens,
claims, mortgages, charges rights of others and other encumbrances except as expressly
permitted hereunder.
10.6 Except as disclosed in the Title Commitment, there are no: (i) unrecorded agreements between
Seller and any third parties or governmental authorities which affect the Property. Seller
discloses that there is an oral month-to-month lease for the house located on the retained
property of Seller. Access to said house is obtained over the Property; (ii) variances or
special or conditional use permits with respect to the Property; (iii) unrecorded restrictions,
easements, licenses, rights, conditions, limitations or covenants specifically affecting the
Property which have been imposed upon the subject Property and/or the owner thereof by
any third party or governmental authority, whether imposed in connection with the platting,
subdivision, zoning, issuance of permits or certificates of occupancy or otherwise; or (iv)
underground or above ground storage tanks on the Property. Seller discloses that there is a
well on the subject Property and private sewage disposal systems on the Property.
10.7 By acquiring the Property, Buyer will not incur or be subjected to any liability for the
cleanup, removal or remediation of any hazardous substance or any liability, cost or expense
for the removal of any asbestos or underground storage tank from the Property which existed
prior to the Date of Closing. The term "hazardous substance" shall have the same meaning
and definition as set forth in Title 42 U.S.C. § 9601, et seq., and in any corresponding or
similar state statute or local ordinance, provided, however, that the term "hazardous
substance" as used herein shall also include "hazardous waste" as defined in 42 U.S.C. §
6903 and "petroleum" as defined in 42 U.S.C. §6991. The term "Superfund" as used herein
means the Comprehensive Environmental Response, Compensation and Liability Act, as
amended, being Title 42 U.S.C. § 9601, et seq., and any corresponding or similar state statute
or local ordinance applicable to the Property and all rules and regulations promulgated,
administered and enforced by any governmental agency or authority pursuant thereto. The
term "underground storage tank" as used herein shall have the same meaning and definition
as set forth in 42 U.S.C. §6991.
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10.8 To the best of the Seller's knowledge, no representation or warranty of Seller and no document
or other information provided by Seller or Seller's agents to Buyer in connection with the
proposed purchase and sale of the Property contains or will contain any untrue, inaccurate or
misleading statement of a material fact or omits or will omit to state a material fact which
causes the statements contained therein, in light of the circumstances under which they were
made, to be misleading.
10.9 The subject Property shall be in substantially the same condition on the Date of Closing as on
the date hereof, except for normal wear and tear.
10.10 To the best of Seller's knowledge, no hazardous substance has been manufactured, refined,
stored, disposed of, produced, processed or installed on or in any part of the subject Property.
10.11 Seller has not been named a party in any proceeding or lawsuit for violation of federal, state
or local environmental laws.
10.12 The subject Property is not currently subject to investigation for alleged federal, state, county
or municipal environmental, pollution, health, fire, safety or building code violations.
10.13 The subject Property is not and will not at the Date of Closing be subject to any federal, state
or local superfund lien, proceeding, claim, liability or action, or the threat or likelihood
thereof, for the cleanup, removal or remediation of any hazardous substance from the subject
Property, and there will be no asbestos or underground storage tanks on the subject Property.
10.14 Seller acknowledges that Buyer is represented by a licensed Iowa and Minnesota real estate
broker, Leo M. Sand of Sand Companies, Inc. and Sand Property Management, LLC, who is
also one of the principals of the Buyer. Buyer also discloses that Jamie J. Thelen with Sand
Companies, Inc., who is also one of the principals of the Buyer is a licensed Minnesota real
estate agent and Nicole D. Sand with Sand Companies, Inc., who is also one of the principals
of the Buyer, is a licensed Iowa and Minnesota real estate agent.
10.15 Seller is represented by Jeff Edberg of Lepic-Kroeger Realtors and Buyer is represented by
Jeremy Tipton of NAI Iowa Realty Commercial. At closing, a 6% (six percent) commission
shall be paid out of Seller's proceeds at Closing and Shall be split equally between Lepic-
Kroeger Realtors and NAI Iowa Realty Commercial.
10.16 No representation or warranty of Seller and no document or other information provided by
Seller or Seller's agents to Buyer in connection with the proposed purchase and sale of the
Property contains or will contain any untrue, inaccurate or misleading statement of a material
fact or omits or will omit to state a material fact which causes the statements contained
therein, in light of the circumstances under which they were made, to be misleading.
10.17 Each of the representation and warranties herein contained shall constitute a material part of
the consideration hereunder and shall survive the Closing Date for two (2) years.
10.18 Other than the representations and warranties expressly stated in this Agreement, Seller makes
no other representations and/or warranties of any sort whatsoever. Buyer is relying entirely
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on Buyer's own investigations and examinations as to the physical condition and every other
aspect of the Property. Buyer acknowledges that it has performed, or up until the
Contingency Date will perform, inspections of the Property, that any information provided or
made available or to be provided or made available to Buyer by Seller, its agents, members,
officers, directors, partners, representatives, or others, were provided or made available
solely as a courtesy, and that Buyer has the sole responsibility for determining the existence
or nonexistence of any fact material to Buyer's decision to purchase the Property. Buyer
acknowledges that Buyer is purchasing the Property on an "AS -IS, WHERE -IS" basis,
except as specifically represented and warranted in this Agreement, without any implied
warranties, and Buyer is completely at risk with respect to all attributes and conditions, latent
or otherwise, of the Property except as represented or warranted herein.
11. CONDEMNATION. The risk of loss from condemnation or threat thereof shall remain on Seller
until the Date of Closing. If all or any part of the Property is taken in condemnation proceedings
instituted under power of eminent domain or is conveyed in lieu thereof under threat of
condemnation at any time between the date of this Agreement and Closing, Buyer shall be entitled
upon written notice to Seller to terminate this Agreement, in which event this Agreement shall be
null and void, Seller shall execute and deliver to Buyer a Cancellation of the Purchase Agreement
and all Earnest Money, shall be promptly paid to Buyer. If Buyer does not terminate this
Agreement as provided above, then this Agreement shall remain in full force and effect, any and
all rights to the proceedings and the awards and compensation relating thereto shall be assigned to
Buyer.
12. MISCELLANEOUS.
12.1 Seller and Buyer do hereby acknowledge that time is of the essence of this Agreement.
This instrument shall not be effective until signed by and delivered to both Buyer and
Seller. This Agreement may be executed in counterparts and by different parties on
different counterparts with the same effect as if the signatures thereto were on the same
instrument. This Agreement shall be effective and binding upon all parties hereto when
all parties have executed a counterpart of this Agreement.
12.2 Except as otherwise specifically provided, whenever Buyer's or Seller's consent shall be
required herein, such approval or consent shall not be arbitrarily or unreasonably
conditioned, delayed or withheld and shall be deemed to have been given unless within
five (5) business days of the request, Buyer or Seller, as appropriate, notifies the
requesting party that Buyer or Seller, as appropriate, is denying such approval or consent,
stating in the notice the reasonable grounds therefore.
12.3 This Agreement shall be binding upon, the heirs, administrators, successors and assigns
of the parties hereto. No rights or remedy herein conferred on or reserved to Buyer or
Seller is intended to be exclusive of any other right or remedy herein or by law provided,
but each shall be cumulative in and in addition to every other right or remedy existing at
law, in equity or by statute, now or in the future.
12.4 This Agreement, and all of the rights and responsibilities of Buyer, pursuant to this
Agreement, is fully assignable by Buyer to any legal entity Buyer shall cause to be
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organized with respect to the development of the Property; provided, however, Buyer
shall not be released from any of its obligations hereunder.
12.5 This Agreement shall be construed in accordance with the laws of the State of Iowa. Each
provision, section, sentence, clause, phrase, and word of this Agreement is intended to be
severable. If any provision, section, sentence, clause, phrase, and word hereof is illegal or
invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity
of the remainder of this Agreement.
12.6 Notwithstanding anything to the contrary herein, the terms and conditions of this
Agreement, together with any applicable warranties and representations contained herein
(each of such warranties and representations to be deemed related and to be true and
correct on the Date of Closing) shall survive the Date of Closing and not be merged by
Seller's execution or delivery of the Deed to Buyer, Buyer's acceptance of the Deed or
other document used in connection with the Closing of the sale, or the recording thereof.
12.7 If Buyer defaults under this Agreement, Seller shall have the right to terminate this
Agreement by giving written notice of such election to Buyer, which notice shall specify
the default. If Buyer fails to cure such default within thirty (30) days of the date of such
notice, Seller may as its sole and exclusive remedy, terminate this Agreement and retain
the Earnest Money and any interest accrued thereon. The termination of this Agreement
and retention of the Earnest Money shall be the sole remedy available to Seller for any
default by Buyer, and Buyer will not under any circumstances be liable for damages or
subject to an action for specific performance.
If Seller defaults under this Agreement, Buyer shall notify Seller by giving written notice
specifying the default. If Seller fails to cure such default within thirty (30) days of the
date of such notice, Buyer's remedies shall include without limitation, the right to: (i)
terminate this Agreement and receive a refund of the Earnest Money and any interest
accrued thereon, and/or (ii) pursue an action against Seller for specific performance of
this Agreement. In no event shall Buyer have the right to sue Seller for consequential or
punitive damages.
If either party fails to consent in writing to the return or payment of the Earnest Money,
either in connection with a default or a failed contingency, or if an action for specific
performance is commenced by Buyer, the prevailing party shall be entitled to obtain
judgment for costs and attorney's fees.
Seller hereby agrees to defend, indemnify and hold Buyer and its successors and assigns
harmless from and against any and all claims, liabilities, losses, damages, costs and
expenses, including without limitation, the cost of defense and attorneys' fees, relating to,
arising out of or due to a breach of any Seller representation or warranty set forth in this
Agreement or relating to, arising out of or due to Seller's ownership or operation of the
Property prior to Closing.
12.8 At Buyer's option, it may elect to effect a tax-deferred exchange in conformance with
Section. 1031 of the IRS Code. Buyer may assign its rights in this Agreement to a
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qualified intermediary for the purpose of effecting such exchange. Seller agrees to
cooperate and execute necessary documents to allow Buyer to effect such exchange,
provided such exchange does not cause Seller to incur any liability, does not require
Seller to take title to any other property, does not delay the closing and does not cause
Seller to incur any additional cost or expense. However, any warranties that may be
expressed in this Agreement shall remain in effect and be enforceable by and between the
parties to the Agreement as assigned.
12.9 All notices, demands and requests which may be given or served or which are required to
be given or served by either party to the other shall be in writing and shall be sent by (i)
United States mail, certified mail, return receipt requested, postage prepaid, or (ii) fax or
(iii) e-mail or (iv) a nationally recognized overnight carrier addressed as follows:
If to Seller: Lyle Mark Larson and Betsy Larson
22780 Hope Dale Avenue
Parker, CO 80138
Phone: (847) 858-3888
Email: Iarsonmbjk@gmail.com
With a copy to: Anderson & Houghton, L.L.P.
Attention: Steven C. Anderson
568 Highway One West
Iowa City, IA 52246
Phone: (319) 351-8600
Fax: (319) 338-7627
Email: steve@iclaw.net
If to Buyer: IC Housing Group, LLC
Jamie J. Thelen
366 South 10t' Avenue
Waite Park, MN 56387
Phone: 320.202.3100
Email: JJThelen@SandCompanies.com
Notices, demand and requests by the Seller or Buyer in the manner aforesaid shall be
deemed sufficiently served or given for all purposes hereunder at the time of such notice,
demand or request shall be mailed, e-mailed or faxed. Either party may change the place
to which notice is to be sent by serving written notice thereof upon the other in
accordance with the terms hereof.
THIS AGREEMENT DRAFTED BY:
IC Housing Group, LLC
366 South 10' Avenue
Waite Park, A4N 56387
320.202.3100
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(Remaining Portion of Page Intentionally Left Blank — Signature Page to follow)
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_r^ �
IN WITNESS WHEREOF, the parties hereto have executed this Agreement this /?-, day of
August, 2018.
BUYER: IC HOUSING GROUP, LLC
104
Secretary/Treasurer
(Remaining Portion of Page Intentionally Left Blank)
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DocuSign Envelope ID: 4FF9 D1 DC-ADBF-4F34-849F-66E75636B770
IN WTINESS WHEREOF, the parties hereto have executed this Agreement this day of
August, 2018.
SELLER: LYLE MARK LARSON
UocuSigned by:
hA r_ 6VU 8/14/2018 j 12:13 PM COT
BY• A3A17RCRp67A42C_.
Lyle Mark Larson
SELLER: BETSY LARSON
�ocuSigned by:
B alb �j6VL. 8/14/2018 1 11:02 AM CDT
Y
Betsy Larson
(Remaining Portion of Page Intentionally Left Blank)
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ACCEPTANCE OF EARNEST MONEY
The undersigned, Tri -County Abstract & Title Guaranty, hereby acknowledges receipt from Buyer the
sum of Ten Thousand and No1100 Dollars ($10,000.00) as Earnest Money and agrees to hold and
disburse the same in accordance with the terms and conditions of the Agreement set forth above in an
non-interest bearing trust account.
TRI -COUNTY ABSTRACT & TITLE GUARANTY
9
By
Its: Co A f.c
Dated 9— d�;' " ( ,S/
5a41/Larson SAND Hoover PA 1.2.doe
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Exhibit A
Ef)T
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16
Exhibit IV
Iowa City, Iowa
Lincoln
SAVINGS BANK
November 14, 2017
IC Housing Group, LLC
Attn: Megan Sand Carr
366 South 101h Ave
Waite Park, MN 56387
RE : Proposed Financing for the project known as NEX Apts in Iowa City
Dear Ms. Sand Carr:
Thank you for allowing Lincoln Savings Bank (LSB) the opportunity to propose financing for your
affordable housing project known as NEX. I am writing this letter to outline LSB's financing proposal.
Loan Amount: Total Construction Period Funding: $6,187,092
A- approximately $4,462,092 tax credit bridge loan
B- approximately $1,725,000 permanent loan (funded simultaneously with A)
Interest Rate: A- 5.25% variable at WSJ Prime + 1%
B- 5.32% for 17 years (based on FHLB DM Amortizing CIP Advance + 2%).
Pricing will be fixed at the time of closing (up to 90 days prior) based on the
above index + margin.
Maturity: A- 24 months, fully repaid by investor capital contributions
B-17 years
Payments: A- Monthly Interest
B- Monthly Interest for 24 months; converting to Principal and Interest after
Stabilization based on a 30 year amortization
Collateral: 1st Real Estate Mortgage on the subject property
Assignment of Leases and Rents
Assignment of Capital Contributions
Assignment of Managing Member's Interest
Guarantors: Sand Properties, Inc., Jamie Thelen, James Sand, Roger Gertken, and John
Belisle, during Construction and Stabilization only; Loans will be non-recourse
to the Borrower upon Stabilization.
Costs: Borrower would be responsible for all third -party closing costs.
Pre -Payment Penalty: The loan would a carry a Yield Maintenance Premium
Loan Fee: A- $42,000
B- $2,000
www.myLSB.com 1 (800) 588-7551
Lincoln
SAVINGS BANK
Subject to: Tax credit allocation of approximately $6,200,000
Final review and approval of the finalized structure after allocation and
concurrent with the review leading up to admission of the Limited Partner
An appraisal indicating a value on the basis of restricted rents resulting in a
loan to value of less than 85%.
Senior collateral position on the property
The terms of this loan proposal expire on December 31, 2018.
Thank you for allowing me the opportunity to work with you on this request. Should you have any
questions, please call me at (515) 327-9905.
1 look forward to providing you financial services in the future for our mutual continued success.
Sincerely,
Oe'�j � O'V-�
Daniel J Downs
Senior Vice President
Lincoln Saving Bank
Acceptance
I agree to the terms detailed in the loan proposal dated November 14, 2017 and authorize Lincoln
Savings Bank to proceed with loan approval and agree to reimburse the bank for all third party costs
even should the loan not be closed.
Accepted By:
IC Housing Group, LLC
By: IC Housing Part ers, L , Managing Member
By: SCI Associates, L C a aging Member
By: Jamie. Thelen, Secretary/Treasurer
www.myLSB.com (800) 588-7551
wnc
November 16, 2017
Mr. Jamie Thelen
IC Housing Group, LLC
366 South Tenth Avenue
Waite Park, Minnesota 56387
Re: NEX
Iowa City, Iowa
Dear Mr. Thelen:
Thank you for giving us the opportunity to present this offer to provide equity financing for NEX. WNC
& Associates, Inc. has been investing in affordable housing for over 45 consecutive years and has capital
to invest in quality tax credit properties. We have acquired over $7.6 billion of real estate assets
representing more than 1,350 properties nationwide.
This Letter of Understanding is designed to address the basic business terms under which WNC, on behalf
of an affiliate (the "Investment Member") and WNC Housing, L.P., as the Special Member (the "SM"),
will acquire limited liability company interests in IC Housing Group, LLC (the "Project LLC") which owns
NEX. Based on the terms specified below, the Investment Member and the SM agree to make a capital
contribution payment to the Project LLC in the amount of $5,524,731 ("Capital Contribution") (includes
the SM's Capital Contribution) based on a price of $0.89 for each dollar of Tax Credits (based upon a
corporate tax rate of 25% commencing in 2018) allocated to the Investment Member over the Tax Credit
Period. The Capital Contribution will be payable in installments based upon the schedule and conditions
set forth below:
$1,104,949 will be payable upon the Investment Member's admittance into the Partnership.
2. $4,143,546 will be payable upon the later of March 10, 2020 or the Investment Member's
receipt and approval of the following: (a) documents substantiating lien free construction
completion; (b) the issuance of a permanent certificate of occupancy; (c) payoff letter from
the contractor; and (d) insurance required during operations.
$251,236 will be payable upon the later of April 10, 2020 or the Investment Member's receipt
and approval of the following: (a) verification that all the conditions referenced above have
been met; (b) fully signed permanent mortgage documents; (c) verification the Project LLC
has maintained a debt service coverage of 1.15 for 90 consecutive days; (d) an updated title
insurance policy; (e) 100% tax credit qualified occupancy and 90% actual occupancy for 90
consecutive days; (f) construction cost certification; (g) an as -built survey; (h) tenant files to
determine that 100% of the tax credit apartment units in the Apartment Complex qualify
under Section 42 of the Internal Revenue Code; (i) a fully executed IRS Form 8609; 0) the
first year tax return in which Tax Credits are taken; and (k) a copy of the Project LLC's
property audited financial statement.
4. $25,000 will be payable upon the SM receipt and approval of initial tenant files.
714.662.5565 714.662.4412 F
17782 Sky Park Circle, Irvine, California 92614
November 15, 2017
NEX
Page 2
Funds from the Capital Contribution payments through completion of construction will be used to pay
acquisition, hard and soft costs, including up to 20% of the cash portion of the development fee (subject to
underwriting). Funds will be held by WNC or the construction lender and disbursed to the Project Partnership
or the contractor upon the submission of draw requests.
A. ASSUMPTIONS
1. The Project LLC will own, or owns, a 36 unit, new apartment complex intended for use as
family housing in Iowa City, Iowa (the "Apartment Complex"). The Project LLC is duly formed under the
laws of the State of Minnesota and validly existing under the laws of the State of Minnesota and Iowa. The
Project LLC holds, or will hold, legal title to the Apartment Complex as evidenced by an Owners ALTA
Title Insurance Policy.
The managing member (the "Managing Member") and an acceptable guarantor (identified below)
shall have sufficient financial resources to meet the obligations required by the Investment LLC.
IC Housing Group, LLC
TBD
The Apartment Complex will be managed by a property management company (identified below)
that is experienced in managing tax credit properties.
• Sand Property Management, LLC
2. The Project LLC will obtain permanent mortgage financing from a qualified commercial
lender(s). Permanent mortgage loan(s) shall have a fixed interest rate and must be approved by the SM.
The Project LLC will maintain a debt service coverage of 1. 15, excluding any "soft" debt that is payable
only from available cash flow based on an operating budget approved by the SM. The first mortgage loan
will be from Lincoln Savings Bank in the amount of $1,725,000 for a term of 17 years at an interest rate
equal to 5.32% and amortized over 360 months All of the permanent debt financing for the Project will be
nonrecourse to the Project LLC and its members. None of the permanent debt financing constitutes related
party debt. No financing secured in whole or in part by the property may be cross -collateralized or cross -
defaulted with any other financing. In addition, the permanent loan commitment or documents evidencing
the permanent loan must not require any ongoing debt coverage maintenance provisions.
We have utilized the above referenced loan terms in order to determine pricing. In the event that any of the
terms change prior to the Investment Partnership's admission into the Project Partnership, then an
adjustment in price may need to be made in order to ensure a consistent yield.
3. The housing tax credits, depreciation, operating profits, and losses shall be allocated
99.99% to the Investment Member and SM and 0.01% to the Managing Member. This allocation assumes
that the local state statutes allow for this structure.
4. The construction and rent -up schedule will be as follows:
Start Construction 3/1/2019
Complete Construction 3/1/2020
100% Qualified Occupancy 8/1/2020
November 15, 2017
NEX
Page 3
5. The allocation of Tax Credits to the Apartment Complex, the Investment Member, and SM
shall be as follows:
(a) Total Tax Credits to Apartment $6,207,560
Complex during Tax Credit Period
(b) Total Tax Credits to Investment $6,206,939
Partnership and SLP during Tax
Credit Period (99.99%)
(c) Annual Tax Credits to Investment $258,622 for 2020
Partnership and SLP during Tax $620,694 for 2021 — 2029
Credit Period $362,071 for 2030
We have utilized this projected schedule in order to determine pricing. In the event that this schedule
changes prior to the Investment Member's admission into the Project LLC, then an adjustment in price may
need to be made in order to ensure a consistent yield.
6. During construction, the Project LLC shall obtain liability insurance and the Investment
Member shall be named as an additional insured. In addition, the Investment Member shall be named as
an additional insured on the contractor's builder's risk insurance and liability insurance. The contractor
shall also maintain workers' compensation. During operations, the Project LLC shall obtain liability
coverage, hazard coverage, business interruption coverage and worker's compensation (all insurance
collectively referred to as "insurance"). The Investment Member shall be a named insured on all the
insurance policies. All such insurance policies shall be purchased from a company rated A or better for
financial safety by A.M. Best or Standard & Poor's, and shall prohibit cancellation without at least a 30 day
prior written notice to the Investment Member. The Project LLC shall also carry an umbrella liability
insurance policy.
B. ADJUSTMENTS
1. The total Capital Contribution will be adjusted in the event that the total tax credits to the
Investment Member and the SM are different than the amount set forth above in Section A.5 (b) based upon
Form 8609. In this event, the Investment Member's and the SM's capital contributions shall be adjusted so
that it equals $0.89 of the actual total tax credits allocated to the Investment Member and the SM during
the Tax Credit Period. Notwithstanding the foregoing, any increase in the Capital Contribution of the
Investment Member and the SM shall be subject to the following: (a) the Investment Member having funds
available to pay any such increase; (b) the price per credit will be the lesser of the actual price per credit
paid at the closing of the LLC Agreement or the current market price as determined by the Special Member;
and (c) in no event will the Investment Member's additional Capital Contribution exceed 5% of its
aggregate Capital Contribution.
2. In the event the tax credits received by the Investment Member and SM in 2020 and 2021
are less than the amount set forth in Section A.5(c) for these years, then the total Capital Contribution from
the Investment Member and SM shall be reduced by $0.79 of each dollar of tax credits below such amounts.
C. GUARANTEES AND RESERVES
November 15, 2017
NEX
Page 4
1. The Managing Member and an acceptable guarantor will guarantee: a) lien free completion
of construction at a fixed price amount in accordance with the plans and specifications and the construction
budget approved by the SM; (b) the lease -up of the property and ensure the Project LLC achieves three
consecutive months of 1.15 debt service coverage; (c) the conversion of all permanent mortgages
("Permanent Mortgage Commencement"); (d) funding of all required reserves; and (e) all covenants,
representations, and warranties of the Managing Member pursuant to the LLC Agreement. The Project
LLC shall bear the cost of the monthly construction inspections of the SM's third party engineer. The SM
will provide invoices to the Project LLC for payment and the Project LLC will reimburse the SM upon
completion of construction.
2. The Managing Member and acceptable guarantor will fund operating deficits ("Operating
Loans") for five years following the later of. (a) Permanent Mortgage Commencement or (b) The
achievement of three consecutive months of 1.15 debt service coverage (the "Operating Deficit Guarantee
Period"); provided however, the Operating Deficit Guarantee Period shall not expire unless the Apartment
Complex has achieved a 1.10 debt service coverage for the most recent period of 12 consecutive months
based on an audit. The guarantee is for a maximum cumulative amount equal to twelve months operating
expenses, including debt service and reserves. Such advances shall constitute interest-free loans repayable
out of future cash flow or sale or refinancing proceeds as described in Sections D and E below.
3. The Managing Member and an acceptable guarantor shall guarantee the annual Tax Credit
amount.
4. In the event of a recapture of Tax Credits, the Managing Member and an acceptable
guarantor will fund any loss of Tax Credit and associated costs that are incurred during the compliance
period.
5. In the event the development fee is not paid in full from loan proceeds and/or Capital
Contribution proceeds, then the unpaid portion of the development fee will be deferred, evidenced by a
development fee agreement and payable to the developer, or designee (the "Developer"). If on the 14'
anniversary of the placed -in-service date the deferred development fee has not been fully repaid, the
Managing Member and/or guarantor will be required to advance to the Project LLC, as a guarantee payment,
an amount equal to the unpaid balance of the deferred development fee so that the deferred development
fee is repaid in full.
6. The Managing Member and the acceptable guarantor shall be obligated to repurchase the
LLC interests of the Investment Member and the SM in the Project LLC as more fully described in the LLC
Agreement.
7. The Managing Member and the acceptable guarantor hereby agree to indemnify and hold
harmless the Project LLC, the Investment Member, and the SM, and their respective partners, directors,
officers, employees, and agents from and against any and all liability directly or indirectly arising out of
the use, generation, manufacture, storage, or disposal of Hazardous Substance on, under or about the
November 15, 2017
NEX
Page 5
project. The foregoing indemnification obligation of the Managing Member and the acceptable guarantor
shall survive the termination of the compliance period.
8. The Managing Member shall cause the Project LLC to deposit into a rent up reserve
account an amount equivalent to four months of rental income. The rent up reserve will be released upon
3 consecutive months of stabilized operations.
9. The Project LLC will fund an operating deficit reserve account at closing in an amount
equal to six (6) months of operating expenses, debt service and reserves. This account is to be used
subsequent to the funding of all Operating Loans. Any unused portion of this reserve will be released to
the Project LLC upon the termination of the compliance period.
10. The Managing Member shall cause the Project LLC to deposit into a replacement and
reserve account an annual amount equal to a minimum of $400 per unit per year (to be funded in twelve
monthly installments) and escalated at 3% per year.
11. Intentionally Omitted [Project -Based Section 8 Re -tenanting Reserve]
D. FEES AND CASH FLOW
Fees and net cash flow (after payment of operating expenses, debt service and reserves) will be allocated
as follows:
1. To pay any Voluntary Funding made by the Investment Member;
2. To pay any unpaid tax credit adjusters;
3. To pay the Investment Member an annual Asset Management Fee equal to $3,600
increased by 3% per year, which shall accrue if not paid;
4. To pay the interest at 0% and then principal on the deferred development fee (as described
in Section C.5), if any;
5. To pay any Operating Loans made by the Managing Member (from 50% of the remaining
cash flow);
6. 90% of the remaining cash flow to pay the Managing Member Incentive Management Fee
and the Tax Credit Compliance Fee; and
7. The balance 99.98% to the Investment Member, 0.01% to the SM and 0.01% to the
Managing Member.
E. PROFITS, LOSSES, TAX CREDITS AND DISTRIBUTIONS
Profits, losses, and Tax Credits commencing with entry of the Investment Member and SM as the limited
members of the Project LLC shall be allocated 99.99% to the Investment Member and the SM and 0.01%
to the Managing Member. Proceeds upon sale or refinancing of the Apartment Complex shall be distributed
in the following sequence:
1. Retirement of mortgage debt (if applicable) and all expenses related to the transaction;
2. To pay any unpaid tax credit adjusters and any Voluntary Funding;
3. Payment of priority debts, Operating Loans, and reserves in accordance with state law; and
4. Thereafter 10% to the Investment Member and 90% to the Managing Member.
November 15, 2017
NEX
Page 6
F. FINANCIAL AND OTHER CONSIDERATIONS
1. By March 1St of each calendar year, including during construction, the Managing Member
shall provide to the Investment Member a copy of the Project LLC's audited financial statement that shall
be issued by an accounting firm experienced in auditing Tax Credit properties and approved by the SM.
The cost of such audits shall be considered as a cost of operations for the Project LLC and shall be satisfied
out of cash flow.
2. By February 20t' of each calendar year, the Managing Member will provide to the
Investment Member all information necessary for the preparation of the Investment Member's income tax
return. The Project will constitute "residential rental property" eligible for 27.5 year depreciation under the
Internal Revenue Code. In light of existing legislation the Project will elect bonus depreciation.
3. Prior to admission, the Project LLC, the Investment Member and/or the construction lender
will establish a procedure for the disbursement of construction funds.
4. Intentionally Omitted [P&P Bonds]
5. The Project Partnership shall be responsible for legal fees associated with the preparation
of the LLC Agreement and other related documents incorporating the terms of this Letter of
Understanding. Upon closing, the LLC will furnish an invoice for such costs, which shall be payable from
the first Capital Contribution. Additionally, in the event the Project LLC is closed by WNC prior to the
closing of the Investment LLC, the Managing Member will agree to additional commercially reasonable
modifications to the existing terms of the LLC Agreement at the time of closing if required by the investors
in the Investment LLC.
6. During rent -up, the Managing Member will send to the Investment Member: (a) copy of
the previous month's rent roll (through the last day of the month), (b) Tax Credit compliance certification
reports and tenant certifications, (c) worksheet with copies of all initial tenant files including completed
applications, completed questionnaires, documentation of third party verification of income and assets, and
executed lease agreements.
7. Within thirty days of the end of each quarter, the Managing Member will send to the
Investment Member a report on operations including (a) Tax Credit compliance report, (b) unaudited
income statement and balance sheet, and (c) rent roll and schedule of reserves, as of the end of the previous
quarter. The Managing Member shall provide financial statements or trial balances in a consistent,
electronic file format to WNC or its designee.
8. The Project LLC shall pay the SM a Due Diligence fee in the amount of $25,000 for
underwriting costs.
9. On or before November 1 of each calendar year, the Managing Member will send to the
Investment Member a copy of the following year's proposed operating budget. Each such budget shall
contain an amount required for reserves and for payment of real estate taxes, insurance, debt service, and
other payments.
10. The Investment Member may provide voluntary loans or capital contributions ("Voluntary
Funding") to the Project LLC if it determines, in its sole discretion, that such funding would be of benefit
November 15, 2017
NEX
Page 7
to the Project LLC or the Apartment Complex. If such Voluntary Funding is provided in the form of a loan,
the terms of such loan shall be mutually satisfactory to the Managing Member and the Investment Member
and shall be evidenced by a written agreement.
G. DUE DILIGENCE REVIEW
1. Commencing upon the receipt in our offices of this executed Letter of Understanding and
terminating 45 days after the date WNC has received the documents listed in the Due Diligence Checklist
(provided by WNC's underwriting team) ("Project Documents"), WNC shall have the exclusive right to
acquire the interests in the Project Partnership. Accordingly, by executing this Letter of Understanding, you
agree on your own behalf and on behalf of any persons associated with or employed by you or the Project
LLC, not to disclose any of the terms or provisions in this letter to any other person or entity other than
those prospective parties having a direct and immediate need to review the information for the purpose of
evaluating and underwriting the transaction.
2. The acquisition of the Investment Member's interests in the Project LLC is subject to the
satisfactory review of the Project Documents by WNC's Underwriting Group, approval of the Project
Documents by WNC's Investment Committee and the admittance of the Investment Member into the
Project LLC through the execution of the LLC agreement for the Project LLC.
Again, thank you for considering WNC as your equity member for NEX. If this Letter of Understanding
meets with your approval, please execute and return via e-mail.
Very truly yours,
ACCEPTED BY:
IC Housing Group, LLC
Dan Garrett
Vice President - Originations
Date: 11/16/2017
Housing Trust Fund
Johnson County
Board ofDirectors
Bob Dvorsky, President
Stcav Senalor; 3711 DisIdd
Housing Trust Fund of Johnson County
322 East Second Street
Iowa City, IA 52240
Email: tachenbachAtf c.org Website: wwit,.htfjc.otg
Office: 319358.0212 Fax: 319358.0053
Simon Andrew, City of Iowa
November 14, 2017
Ellen f -Libel, President Elect
GO of Corcrlville
Jamie Thelen
Ron Afavrias, Sea-elao,
SCI Associates, LLC
Pfrvale Chiron
366 South 10"' Ave
John Warren, Trrasurrr
P O Box 727
Began KDV
---------------
Waite Park, MN 56387-0727
Simon Andrew, City of Iowa
RE: Iowa City Apartments Application and Award
City
Jerry Anthony, Uuineraifj, aJ
Dear Jamie:
Iowa, Urban & Regional Planning
Thank you for the application you submitted to the Housing Trust Fund of
Robert Brooks, Privaie Cititen
Johnson County (HTFJC) for the construction of 44, later amended to 32,
trolly Brown, Hills Bank &
affordable housing units in Iowa City. As you are aware, your application
Trust Compare
request for funding was approved by the HTFJC Board of Directors at its
Bob Burns, Barns & Burns,
meeting on October 20, 2017, which will be the effective date of the agreement.
L.C.
Listed below are the conditions of the award.
Crissy Canganelli, Sbeller House
Maryann Dennis, Ex-Ocio
Iowa City Apartments Construction -- Award is a loan for $325,000 to be used
The Housing Felloersliij�
toward road and related infrastructure costs required for a newly -constructed
Kirsten Frey, Kennedy, Gwise,
multi -family building on Herbert Hoover Highway, east of Eastbury Drive, in
F,ry and Gelner
Iowa City, as described in your application to HTFJC dated September 29, 2017.
Terms of the loan are a one percent loan for a 17 -year term and amortized over
Steve Gordon, All Maucrgemeut
35 years. Conditions of the award are that the annual household incomes of four
Steve Long, HBKEsgineerYrrg,
(4) of the tenants cannot exceed 30% AMI and twenty-eight (28) of the tenants
(4)
LLC
exceed 80% AMI for the duration of the 30 -year affordability period. The
award is contingent upon the funding sources and timelines described in your
Tracey 1ltulcahey, City of Norlb
application. Note that HTFJC will be utilizing only local match funding for the
Libery
road and related infrastructure costs, and HTFJC will not process requests for
Phil O'Brien, UrbaoAcmf Real
reimbursement for those costs until building construction costs equal to the
Eslale
HTFJC award have been incurred and documented.
Scott Schroeder,AlidllyeslOrre We look forward to working with you on this project, and we appreciate ail your
Bark organization is attempting to do to promote safe and affordable housing in
Rod Sullivan, Jobtison County Johnson County.
Board of Supen) sors
Sincerely,
Larry Wilson, Uidty .i�, Hei,gGis � )
Cili.�eu
staff
Tracey Achenbach, Tracey Achenbach
Executive Director Executive Director
Casey Cooper,
Operations Coordinator
Housing Trust Fund
Johnson County
Board ofDirectors
Bob Dvorsky, President
Stcav Senalor; 3711 DisIdd
Housing Trust Fund of Johnson County
322 East Second Street
Iowa City, IA 52240
Email: tachenbachAtf c.org Website: wwit,.htfjc.otg
Office: 319358.0212 Fax: 319358.0053
Simon Andrew, City of Iowa
November 14, 2017
Ellen f -Libel, President Elect
GO of Corcrlville
Jamie Thelen
Ron Afavrias, Sea-elao,
SCI Associates, LLC
Pfrvale Chiron
366 South 10"' Ave
John Warren, Trrasurrr
P O Box 727
Began KDV
---------------
Waite Park, MN 56387-0727
Simon Andrew, City of Iowa
RE: Iowa City Apartments Application and Award
City
Jerry Anthony, Uuineraifj, aJ
Dear Jamie:
Iowa, Urban & Regional Planning
Thank you for the application you submitted to the Housing Trust Fund of
Robert Brooks, Privaie Cititen
Johnson County (HTFJC) for the construction of 44, later amended to 32,
trolly Brown, Hills Bank &
affordable housing units in Iowa City. As you are aware, your application
Trust Compare
request for funding was approved by the HTFJC Board of Directors at its
Bob Burns, Barns & Burns,
meeting on October 20, 2017, which will be the effective date of the agreement.
L.C.
Listed below are the conditions of the award.
Crissy Canganelli, Sbeller House
Maryann Dennis, Ex-Ocio
Iowa City Apartments Construction -- Award is a loan for $325,000 to be used
The Housing Felloersliij�
toward road and related infrastructure costs required for a newly -constructed
Kirsten Frey, Kennedy, Gwise,
multi -family building on Herbert Hoover Highway, east of Eastbury Drive, in
F,ry and Gelner
Iowa City, as described in your application to HTFJC dated September 29, 2017.
Terms of the loan are a one percent loan for a 17 -year term and amortized over
Steve Gordon, All Maucrgemeut
35 years. Conditions of the award are that the annual household incomes of four
Steve Long, HBKEsgineerYrrg,
(4) of the tenants cannot exceed 30% AMI and twenty-eight (28) of the tenants
(4)
LLC
exceed 80% AMI for the duration of the 30 -year affordability period. The
award is contingent upon the funding sources and timelines described in your
Tracey 1ltulcahey, City of Norlb
application. Note that HTFJC will be utilizing only local match funding for the
Libery
road and related infrastructure costs, and HTFJC will not process requests for
Phil O'Brien, UrbaoAcmf Real
reimbursement for those costs until building construction costs equal to the
Eslale
HTFJC award have been incurred and documented.
Scott Schroeder,AlidllyeslOrre We look forward to working with you on this project, and we appreciate ail your
Bark organization is attempting to do to promote safe and affordable housing in
Rod Sullivan, Jobtison County Johnson County.
Board of Supen) sors
Sincerely,
Larry Wilson, Uidty .i�, Hei,gGis � )
Cili.�eu
staff
Tracey Achenbach, Tracey Achenbach
Executive Director Executive Director
Casey Cooper,
Operations Coordinator
IC Housing Partners, LLC
366 South loth Avenue, PQ Box 727
Waite Park, MN 56387
November 15, 2017
Iowa Finance Authority
Multifamily lending
2015 Grand Avenue
Des Molnes, IA 50312
Re: Owner Cash Contributlon
To Whom It May Concern:
Tha members of IC Housing Partners, LLC hereby commits to make an unconditional cash contribution in
the amount of $ 284,000.00 to the project as a source of funds, to meet the QAP Leverage (Land
and/or Cash Contribution) per Section 6.4.7.1 of the 2018 9% CLAP. This Is 15% of the total project costs
for Mex.
In addition, the members, will make an additional $100 cash contribution to meet the QAP requirement
for $140 minimum contribution per Section 4,71 of the 2018 9% QAP. The total contribution made by
the members will be $ 284,100.00
IC Housing Group, LLC, a Minnesota limited liability company
By: IC Housing Partners, LLC, a Minnesota limited liability company
Its: Managing Member
By; SCI Associates, LLC, a Minnesota limited liab}lity company
Its: Managing Memb f IC sing Partners, LLC
en, Secretary/Treasurer
BY: Belisle Development, LLC, a Minnesota limited liability company
Its; Member of 1C Housing Partners, LLC
-L�"
ohn 8. Belisle, Chief Manager
S+. M'[h@G| Development G, LLC . ..
366 SC]U|h 11h Avenue, PO Box 727
\�/n'f Park, K�rd ��������
..=|.B. 2[,~ .,... �"�".
September 11,2O1Q
Iowa Finance Authority
Multifamily Lending
2O1SGrand Avenue
Des Moines, |A5O312
Re: I Deferred Developer Fee
To Whom It May Concern:
The developers of NEX commit to unconditionally defer $42,221 in developer fee as a source of funds
for the project. The developers and owner, |C Housing Group, LLC, will work together to look at other
funding options to potentially replace or reduce the deferred developer fee.
St. Michael DeveloRmentGroup, LLC
len, Secretasurer
Exhibit V
Iowa City, Iowa
Nex Apartments
Iowa City, Iowa
15 Year Proforma
September 11, 2018
NOTE: FOR DISCUSSION PURPOSES ONLY. THESE PROJECTIONS ARE BASED ON ESTIMATES. ACTUAL RESULTS MAY DIFFER OR MAY BE AFFECTED BY FUTURE OR UNFORESEEN EVENTS.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Year 2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
GROSS POTENTIAL RENT
TOTAL GROSS POTENTIAL RENT
391,008
398,828
406,805
414,941
423,240
431,704
440,339
449,145
458,128
467,291
476,637
486,169
495,893
505,811
515,927
RENTALLOSS
TOTAL VACANCY LOSS
27,371
27,918
28,476
29,046
29,627
30,219
30,824
31,440
32,069
32,710
33,365
34,032
34,712
35,407
36,115
TOTAL NET REVENUES
363,637
370,910
378,328
385,895
393,613
401,485
409,515
417,705
426,059
434,580
443,272
452,137
461,180
470,407
479,812
GENERAL& ADMINISTRATE EXPENSES
TOTAL G&A EXPENSES
62,200
63,816
65,475
67,180
68,930
70,727
72,573
74,468
76,415
78,415
80,469
82,578
84,744
86,970
89,255
REPAIRS & MAINTENANCE EXPENSES
TOTAL R&M EXPENSES
30,400
31,312
32,251
33,219
34,215
35,242
36,299
37,388
38,510
39,665
40,855
42,081
43,343
44,643
45,983
UTILITIES
TOTAL UTILITIES
44,000
45,320
46,680
48,080
49,522
51,008
52,538
54,114
55,738
57,410
59,132
60,906
62,733
64,615
66,554
OTHER OPERATING EXPENSES (Real E -R, Taxes, Insurance)
TOTAL OTHER OPERATING EXPENSE
56,208
57,894
59,631
61,420
63,263
65,160
67,115
69,129
71,203
73,339
75,539
77,805
80,139
82,543
85,020
TOTAL EXPENSES
192,808
198,342
204,038
209,899
215,930
222,137
228,526
235,100
241,866
248,829
255,995
263,370
270,960
278,772
286,812
Total Expenses Per Unit
5,356
5,510
5,668
5,831
5,998
6,170
6,348
6,531
6,718
6,912
7,111
7,316
7,527
7,744
7,967
NET OPERATING INCOME
170,829
172,568
174,291
175,996
177,683
179,348
180,989
182,605
184,194
185,752
187,277
188,768
190,220
191,632
193,000
NOTE: FOR DISCUSSION PURPOSES ONLY. THESE PROJECTIONS ARE BASED ON ESTIMATES. ACTUAL RESULTS MAY DIFFER OR MAY BE AFFECTED BY FUTURE OR UNFORESEEN EVENTS.
II�_.Ar CITY OF IOWA CITY � 3
mainnei MEMORANDUM
Late Handouts Distributed
Date: October 12, 2018
To: City Council ° ` %
From: Erika Kubly, Neighborhood Services Coordinator (Date)
Re: HCDC Recommendation Update — Council Agenda Item #12 LIHTC Project
On your October 16 agenda, City Council will consider committing $200,000 to IC Housing
Group, LLC for a Low Income Housing Tax Credit (LIHTC) project. At the time of the Council
packet, the Housing and Community Development Commission (HCDC) had not reviewed the
proposal yet. HCDC met the evening of October 11 and unanimously recommended funding
the project with the $200,000 available from the FY19 Affordable Housing Fund (vote of 8-0).
HCDC expressed concerns with transit availability and the desire for a bus stop to be located
closer to the project in the near future.
There was a consensus of commission members who supported additional funding, if available,
if the developer could provide additional units affordable to those at 30% of the area median
income. Staff agreed to pursue if additional funding was available.
Item Number: 13.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution committing $200,000 in FY2019 General Funds to the IC
Housing Group, LLC Low Income Housing Tax Credit project.
Prepared By: Erika Kubly, Neighborhood Services Coordinator
Reviewed By: Tracy Hightshoe, NDS Director
Fiscal Impact: $200,000 in FY19 funds set aside for LI HTC projects
Recommendations: Staff: Approval
Commission: Housing & Community Development Commission will make a
recommendation at the October 11, 2018 meeting. HCDC Recommendation
to follow after meeting.
Attachments: IC Housing Group, LLC Proposal
Resolution
Executive Summary:
The Council directs 20% of the funds available in the Affordable Housing Fund's annual allocation
to Low I ncome Housing Tax Credit (L I HTC) projects. The Housing and
Community Development Commission (HCDC) opens a funding round jointly with the Housing
Trust Fund of Johnson County to accept applications requesting City funds for
LI HTC projects. One application from IC Housing Group, LLC was received. HCDC will review
this proposal on Thursday, October 11, 2018 and will make a Council recommendation after their
review. Their recommendation will be forwarded to you in a late handout.
Background /Analysis:
IC Housing Group, LLC requested $200,000 for a LIHTC project that received a late 2018 tax
credit award from the Iowa Finance Authority in August 2018. The proposed project is located on
Herbert Hoover Highway, just east of Eastbury Drive on 2.25 acres. The location of the project is
in an area recommended for affordable housing opportunities based on the Affordable Housing
Location Model. The applicant proposes a total development of 36 units, 32 being affordable.
The following table provides details on the unit mix of the proposed development.
IC Housing Group
Proposal
Total Units 36
1 BR Units 6
2 BR Units 12
3 BR Units 18
Unit Income Limits
30%AMI
4
40%AMI
11
60%AMI
17
Market Rate
4
The attached resolution commits $200,000 in local funds to IC Housing Group, LLC for their 2018 Low
Income Housing Tax Credit application. If the developer does not proceed with the proposed LIHTC
project, the City will combine these funds with next year's request for proposals. After HCDC review,
the HCDC funding recommendation will be forwarded to you for consideration.
ATTACHMENTS:
Description
IC Housing Group, LLC Proposal
Resolution
Memo from Neighborhood Services Coordinator
IL
Prepared by:Susan Dulek,Asst.City Attorney,410 E.Washington St., Iowa City, IA 52240-319-356-5030
Resolution No. 18-290
Resolution adopting the black-eyed Susan as the City flower.
Whereas, Project GREEN has requested that the City Council adopt the black-eyed Susan as
the City flower;
Whereas, the black-eyed Susan, orrudbeckia hirta. is a native plant that attracts a particularly
wide variety of insects including butterflies and bees;
Whereas, the seed of the black-eyed Susan is a favorite of songbirds, such as goldfinches,
sparrows, and chickadees;
Whereas, the black-eyed Susan is said to represent "Justice;"
Whereas, the black-eyed Susan is a black and gold flower, the color of the University of Iowa
Hawkeyes;
Whereas, adopting the black-eyed Susan as the City flower may inspire Iowa City residents to
plant native food sources for local pollinators;
Whereas, adopting the black-eyed Susan as the City flower may bring neighbors and
neighborhoods together to exchange seedlings and seeds and to undertake other planting
initiatives; and
Whereas, the City Council finds that the black-eyed Susan should be adopted as the City flower.
Now, therefore, be it resolved by the City Council of the City of the Iowa City, Iowa:
The black-eyed Susan is adopted as the official flower of the City of Iowa City.
Passed and approved this 16th day of October , 2018.
M or
Ap roved
Attest
City Clerk City Attorney's Office
Resolution No. 18-290
Page 2
It was moved by Mims and seconded by Taylor the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Cole
X Mims
X Salih
X Taylor
X Teague
X Thomas
X Throgmorton
Black-eyed Susan
- Rudbeckia hirta
•0
,111 •I
• P.
P
A hallmark of prairies and meadows Black Eyed Susan is a biennial that blooms and completes
its life cycle in its second year with an extravagant floral display. Transplants will bloom the
year they are planted, and will easily self-sow onto open soil, creating a more or less consistent
stand over time.
Exceptionally showy and easy to grow, Rudbeckia hirta has a prolonged floral display that
attracts butterflies and other beneficial insects. The late season seedheads attract finches and
other birds. Easy to grow and very drought tolerant, this rudbeckia will tolerate heat, drought
and a wide range of soils, but does not like poorly-drained wet soils. Seeds may be sown
directly in the soil at the last frost date
Item Number: 14.
r �, CITY OF IOWA CITY
COUNCIL ACTION REPORT
October 16, 2018
Resolution adopting the black-eyed Susan as the City flower.
Prepared By: Juli Seydell Johnson, Director of Parks & Recreation
Reviewed By: Sue Dulek, Assistant City Attorney
Geoff Fruin, City Manager
Fiscal Impact: None
Recommendations: Staff: Approval
Commission: None
Attachments: Resolution
Executive Summary:
Project GREEN has been a partner and financial supporter of public landscapes throughout Iowa
City since 1968. The group advocates for the naming of the black-eyed Susan as the official
flower of Iowa City. This flower will then be used in several high -visibility plantings, maintained by
Project Green, as a message of community spirit.
The black-eyed Susan is a native plant that attracts a wide variety of insects including butterflies
and bees, and its seed is a favorite of songbirds, such as goldfinches and chickadees. In
addition, it vibrant gold and black colors pay tribute to Iowa City as the Home of the Hawkeyes!
Background /Analysis:
ATTACHMENTS:
Description
resolution