Agenda Item # 1
Columbus Consolidated Government
Council Meeting
June 12, 2018
Agenda Report # 131
TO: Mayor and Councilors
SUBJECT: Lease Amendment for Redevelopment of Claflin School
INITIATED BY: Community Reinvestment Department
Recommendation: Approval is requested to amend the current lease agreement
with Friends of Historic Claflin, Inc. to extend the lease term, and
incorporate additional requirements needed to satisfy the investors for the
project.
Background: On May 9, 2017, per Resolution 124-17, City Council approved
revising the lease agreement between the Columbus Consolidated Government and
Friends of Historic Claflin to allow for Oracle Consulting Services, LLC
(developer) to convert the school into 44 (+/-) units of affordable housing,
with an area of the school to be set-aside for educational programs and to
display the school?s history. The developer applied for Low-Income Housing Tax
Credit (LIHTC) through the Georgia Department of Community Affairs (DCA) and
was successfully awarded those credits. As part of this development a new joint
venture was created called Claflin School Preservation, L.P., for the sole
purpose of preserving and developing this property. This joint venture is a
limited partnership between the investors, Oracle Consulting Services, LLC, and
the Friends of Historic Claflin, Inc. The lease agreement was sub-leased to
the joint venture per Resolution 412-17. Construction is expected to begin in
July 2018.
FHC and Oracle Consulting Services are requesting amendments to the existing
lease agreement in order to finalize the financing needed to start
construction. Based on the request, staff is recommending that the lease
agreement and any other agreements between the parties be revised as follows:
? Extend the term of the lease agreement from 45 years to 65 years.
? Allow provisions to be added to the lease agreement to use the building as
collateral to allow for financing to be obtained.
? Add language to the lease agreement that specifies that the property will
revert back to the City at the end of the lease term.
? Combine all relevant portions of previous lease amendments, MOU, etc. into
one document.
Analysis: The redevelopment of this property will assist with the elimination
of blight, develop approximately 44 units of affordable housing, and create
local jobs.
Financial Considerations: The City will not incur any expenses associated with
the redevelopment of Claflin School. Friends of Historic Claflin and the
Developer will be responsible for all costs associated with the construction
and operations of this facility.
Legal Considerations: Council must approve all real estate transactions.
Recommendations: Authorize the City Manager to approve an amendment to the
current lease agreement with Friends of Historic Claflin, Inc. to extend the
lease term, and incorporate additional requirements needed to satisfy the
investors for the project.
RESOLUTION
NO. ________
A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE LEASE AGREEMENT
WITH FRIENDS OF HISTORIC CLAFLIN, INC TO EXTEND THE LEASE TERM, AND INCORPORATE
ADDITIONAL REQUIREMENTS NEEDED TO SATIFY THE INVESTORS FOR THE PROJECT.
WHEREAS, the City currently has a lease agreement with Friends of
Historic Claflin, Inc. (FHC) for the redevelopment of Claflin School; and,
WHEREAS, Oracle Consulting, Services has partnered with FHC on this project,
and together they have created a joint venture called Claflin School
Preservation, L.P. which is in the process of converting the school into
affordable housing; and,
WHEREAS, the lease will be amended to (1) extend the term of the lease
agreement from 45 years to 65 years; (2) allow provisions to be added to the
lease agreement to use the building as collateral to allow for financing to be
obtained; (3) add language to the lease agreement that specifies that the
property will revert back to the City at the end of the lease term; (4) combine
relevant portions of all previous lease amendments, MOU, etc. into one
document; and,
WHEREAS, the redevelopment of this property will assist with the
elimination of blight, develop new units of affordable housing, and create new
local jobs.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS
FOLLOWS:
That subject to the terms and conditions set forth above, the City
Manager is hereby authorized to sign an amendment to the Lease Agreement
executed between Columbus Consolidated Government and Friends of Claflin, Inc.
_________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
_________day of _____________, 2018 and adopted at said meeting by the
affirmative vote of ___________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ _________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
Attachments
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