Title
Agenda Item:
Approval of Fleetwood Building "Assignment, Assumption and Consent" Agreement
Body
Issue:
Should Council approve the Fleetwood Building "Assignment, Assumption and Consent" Agreement?
Committee Recommendation:
Not referred to a committee.
City Manager’s Recommendation:
Move to approve and authorize the City Manager to sign the Fleetwood Building "Assignment, Assumption and Consent" Agreement with the Fleetwood Limited Partnership and Fleetwood Apartments LLC.
Staff Contact:
M. Anna Schlecht, Housing Program Manager, 360.753.8183
Presenter(s):
Consent Calendar Item.
Background and Analysis:
In 1996, the Low Income Housing Institute (LIHI) of Seattle acquired the vacant Pacific Northwest Bell building located at 119 7th Avenue SE, adjacent to Sylvester Park. LIHI’s intent was to create 43 units of transitional housing to get homeless people off the street and into housing with services. The “Fleetwood Building” project required a diverse package of funding from a variety of federal, state and local entities, along with a diverse range of performance and debt management requirements from each funder.
City of Olympia Loans to the Fleetwood Building: Since that time, the City of Olympia has made a series of housing rehabilitation loans to maintain the building, itemized as follows:
Loan Amt Date Purpose Current Balance
$100,000 8/6/03 Roof $ 54,800.00
$110,000 11/8/07 Heating, doors, windows $109,874.52
$230,000 12/18/09 Masonry Waterproofing $230,000.00
TOTAL OUTSTANDING BALANCE OF CITY LOANS $394,674.52*
(*Reflects current payments)
At the time of the first City of Olympia loan, LIHI advised the City that in the future LIHI would need to reconfigure the legal ownership structure of the property in order to maintain compliance with all of their funders. While the legal ownership would change, the new entity would continue to honor the original purpose as codified in each funding agreement to provide housing and services to vul...
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