Laserfiche WebLink
To assist the Members of the City Council in reviewing the request for an Inducement <br />Resolution to acquire and renovate Montreal Courts Apartments, we are providing the <br />Council with this information packet. We would be happy to address and answer any <br />question in advance of the proposed meeting night of November 12'. <br />Purchaser Goals. <br />1. Acquire and rehabilitate Montreal Courts Apartments to redevelop the property and <br />significantly upgrade the physical structure, appearance and life /safety aspects of <br />Montreal Courts. <br />2. Install professional, stable and long term management of Montreal Courts. <br />3. With the understanding that Montreal has existed as a low and moderate income <br />community, to work towards a strong and stable low and moderate income resident <br />profile that exhibits a "pride of ownership" in their residence. <br />4. To develop appropriate on -site service programs for the residents i.e. latch -key <br />programming, computer and general tutoring, athletic activities, etc. <br />Background. <br />Montreal Courts Apartments, a 444 unit community, has been under the same ownership <br />for approximately ten years. There has been litigation between the partners of the <br />ownership group, which led to the sale of the property with a purchase agreement signed <br />in December, 1996. The Purchase Agreement contemplates a closing by December 31, <br />1997. <br />Due to the size of this apartment community, and it's current physical condition. a great <br />deal of due diligence has been performed by both the Purchaser and the Lender on the <br />property. In defining the above goals, it has been determined that there are two primary <br />methods of financing and closing upon the purchase. <br />1. Tax Exempt Bond Financing. <br />The proposed method of purchase is by a sale to Housing Alternatives Development <br />Company, a 501 c (3) corporation. (HADC). HADC was formed in 1991 to preserve and <br />promote decent, safe, affordable housing which, as a result of this transaction, Montreal <br />Courts can become. Through HADC and the City of Little Canada, tax exempt bonds <br />would be used to acquire and renovate Montreal Courts. The City serves as the conduit <br />to issue the bonds, but incurs no financial risk in doing so. Goldmark Property <br />Management, an Accredited Management Organization, would be retained to provide <br />professional property management. <br />Page 11 <br />