MOTION TO APPROVE Second Amendment to Loan Agreement, regarding the County Loan for the acquisition, including soft acquisition costs, for a property located at 3148 NE 12th Avenue in Oakland Park, by and among Broward County, the City of Oakland Park (City), and the Oakland Park Community Redevelopment Agency (CRA) to allow for the partial conversion of $349,118 of the existing $695,393 Redevelopment Capital Program (RCP) loan to a grant, with the acknowledgement that the remaining $346,275 loan amount will be evidenced by a new Promissory Note indicating said loan amount and revised interest and principal payment terms; and authorize the Mayor and Clerk to execute the amended Loan Agreement and new Promissory Note. (Commission Districts 4 and 9)
ACTION: (T-10:57 AM) Approved.
VOTE: 9-0.
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THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE HOUSING FINANCE AND COMMUNITY REDEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s Value of offering sustainable, compatible, innovative housing options for all income-levels, including integrated supportive housing and rapid-rehousing: Goal 1: Facilitate a regional approach to growth and redevelopment through coordination and collaboration at the federal, state and local levels; Goal 2: Strengthen stakeholder partnerships to increase the availability of affordable housing of all types (e.g. rental, purchase, supportive, etc.), countywide, in every community; and Goal 3: Develop, through effective community collaboration, neighborhoods and communities incorporating intermodal connectivity, while integrating energy efficiency community resilience, and other livability standards and initiatives.
On September 13, 2011, the Board of County Commissioners (Board) approved the Third Amendment to Interlocal Agreement (ILA) and Loan Agreement with the City of Oakland Park (City) and the Oakland Park Community Redevelopment Agency (CRA) to provide a loan through the Redevelopment Capital Program (RCP) for $695,393 for acquisition, including soft acquisition costs. The property, known as Site 2, is located at 3148 NE 12th Avenue in Oakland Park, and was purchased for open/green space improvements.
In accordance with the Loan Agreement and Promissory Note, the five-year interest-free period on the loan ended September 30, 2016, and a payment of interest and principal were due to the County on or before September 30, 2017.
On March 28, 2017, the Board approved the First Amendment to Loan Agreement to provide for the payment of interest-only and defer the payment of principal for two years, until September 30, 2019. According to the CRA, private redevelopment was nearing completion within the CRA and it may result in the conversion or all, or a portion of the loan to a grant, between 2017 and 2018. On September 27, 2017, Broward County received the first interest-only payment of $19,177.
On November 2, 2017 and April 23, 2018, the CRA submitted a “Request for Conversion” for two other existing RCP loans with the County. The County reviewed and approved the request on May 25, 2018 (Exhibit 2), and the City subsequently submitted a payment due by June 22, 2018, consistent with the terms of the May 25, 2018 letter. As a result of the conversion, the two loans were fully converted to grants and a surplus of $349,118 in “conversion dollars” was available for another outstanding RCP loan.
On May 29, 2018, the CRA submitted a new Request for Conversion (Exhibit 3) to apply the surplus conversion dollars of $349,118 to the current loan amount of $695,393. This request for a partial loan-to-grant conversion would result in a new loan balance of $346,275. A partial loan-to-grant conversion is provided for in the Loan Agreement. In addition, as per the First Amendment to Loan Agreement, the second interest-only payment is due to the County on September 30, 2018 and principal and interest will be due to the County on or before September 30, 2019 and annually through March 31, 2031.
The City of Oakland Park and the Oakland Park CRA currently have nine remaining Loan Agreements with the County through the Redevelopment Capital Program, totaling $3,796,429. Repayments have begun on two of those existing loans. There will be no additional RCP loans. |