Vote: approved

Item Text

H-2. MASTER DEVELOPMENT AGREEMENT WITH GORMAN & COMPANY, INC. FOR THE MADISON HEIGHTS, NORTON CIRCLE, AND HM WATSON HOMES PUBLIC HOUSING REVITALIZATION Adopt Resolution No. 13-023 and approve a Master Development Agreement between the Housing Authority of Maricopa County (HAMC) and Gorman & Company, Inc. for the Madison Heights, Norton Circle, and HM Watson Homes public housing revitalization. HAMC and the Gorman & Company, Inc. intend to revitalize the Madison Heights Public Housing Project, develop 143 apartment units thereon, and convert all of the apartment units from public housing to Section 8 Project-Based Rental Assistance utilizing the U.S. Department of Housing and Urban Development's (HUD) Rental Assistance Demonstration program (the "Development"). This Agreement shall commence upon the execution hereof and shall terminate in accordance with Section XV of the Agreement. Upon the request of Gorman & Company, Inc., HAMC shall make a predevelopment loan in an amount not less than $100,000. HAMC shall use its best efforts to obtain HUD approval for HAMC to increase the amount of the Predevelopment Loan to an amount equal to seventy-five percent (75%) of approved predevelopment costs, but in no event in excess of $500,000, and, subject to funding availability and approval by the Board of Commissioners, HAMC shall increase the amount of the Predevelopment Loan to the amount approved by HUD (but not in excess of $500,000). The predevelopment loan will be paid for out of Public Housing Reserves. Gorman & Company shall receive 65% of the Developer Fee and HAMC shall receive 35% of the Development Fee. Accordingly, the Developer shall pay to the Authority the Authority's share of the Development Fee as such Development Fee is received. The Authority's share of the Development Fee may be provided to the Authority in a way that is most financially advantageous to the Development, e.g., as a development fee or a construction monitoring fee. (C-66-14-007-M-00)