07-11-2018 Council Packet - Laserfiche WebLink

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TO: Mayor Keis and Members of the City Council FROM: Joel Hanson, Resident At Large DATE: July 9, 2018 RE: 93 West Disbursing Agreement In an attempt to bring closure to my responsibilities with Little Canada, the attached Disbursing Agreement was drafted relative to the $200,000 contribution we agreed to make to that property given we facilitated the move of the senior housing project from 93 West Little Canada Road to the Rice Street location. As you know, the $200,000 contribution is being funded by the assignment fee we charged to the Suite Living developers to transfer our purchase agreement with Cash For Homes to them. The City will be gaining $200,000 from that transaction but those proceeds will not be realized for three years based on our loan agreement with the Suite Living developers to keep their financing program on an equal basis with the 93 West concept. The attached Disbursing Agreement was modeled after the one we used for the Canabury Square HIA project. Here are the highlights of this agreement: • The City is providing $200,000 of funding to the owners of 93 West Little Canada Road which they will use to make enhancements to the property as defined in Exhibit A attached to the agreement. The money will deposited in a City Account from which disbursements will be made to the property owners after they provide evidence that the amounts have been paid and lien waivers have been obtained. It is important to note that this money is not a loan and will not be repaid. This is being done to make them whole as a result of our decision to move the Senior Housing project from their property to another site. • Contemplated work includes both interior and exterior improvements. • The property owners will be investing more than $200,000 in this building enhancement. Any amount over $200,000 will be funded by the developer and placed in the same fund as the City’s money. The City’s money will be paid out first and any money remaining over the City’s $200,000 will be returned to the owner at the completion of the project. • At least two quotes have been received from all work components. • A 10% contingency fee is being added to the total of all quotes to ensure sufficient funds are on hand to pay for the contemplated work. • The City is making its payments on a reimbursement basis meaning the building owners will have already paid the bill. This negates the need for a more detailed review and cumbersome payment process given the City will already have evidence of payment made and liens waivers for same before a reimbursement is made. • The Building Official will also be authorized to review the work completed to make sure it tracks with the work program. • Any changes to the work scope need the approval of the City before they can be made. 10