Agenda - Council - 04/22/2008 - Laserfiche WebLink

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C. Section 4, Subsection 4) Rental Amount Goals. is hereby amended to read as follows by deleting the existing language and substituting the following: 4) Rental Amount Goals. Initial rents for the dwellings within the Project shall be sufficient to pay for debt retirement, operation costs, a reasonable reserve for capital improvements, maintenance and repair, and a reasonable management fee. D. Section 4, Subsection 5) Management Advisory Board. is hereby deleted in its entirety. E. Section 4, Subsection 6) Selection of Private Management Company. is hereby amended to read as follows by deleting the existing language and substituting the following: 6) Selection of Private Management Company. If the ACHRA elects to manage the Project through the use of a management company, the selection of such company and the selection of any successor to such company shall be made by the ACHRA. The ACHRA shall require any such management company, at a minimum, to comply with the management conditions set forth in Section 4 of this Joint Powers Agreement. F. Section 6, Subsection F. Disposition of Excess Revenues. is hereby deleted in its entirety and the following new Subsection F. is inserted in its place: F. Disposition of Excess Revenues. a. Within 90 days of the end of calendar year 2008 through 2013 (during the period of the Operating Deficit Agreement), the ACHRA will determine the net operating income from the Project. If net operating income is positive for the calendar year, the ACHRA shall use available net operating income to fully fund reserves pursuant to the Indenture and repay to the City the Operating Deficit Amounts that the City has paid in the prior calendar year. "Net operating income" shall mean net revenues after payment of debt service and operating costs and required deposits to the Repair and Replacement Fund have been made. b. Upon the sale of the Project Site, the ACHRA shall use the net proceeds from such sale (after paying all debt and sales expenses) to reimburse the City (i) the actual costs expended by the City in acquiring the Project Site, the actual costs of extending public utilities to the Project Site, less amounts previously reimbursed to the City for such costs (the "Initial Development Obligations "); (ii) to the extent not previously paid, any out -of- pocket expenses paid by the City for the development and construction of the Project; and (iii) to the extent not previously paid, Operating Deficit Amounts paid by the City. Upon repayment of said Initial Development Obligations, the Right of First Refusal shall be terminated in its entirety and the. City agrees to cooperate fully in taking such actions and executing such documents as necessary to release its rights under the Right of First Refusal.