HomeMy WebLinkAbout2001-07-23 01-299 ORDERItem me.010199
Date: 3uly 23, 2001
Item/Subject: Approving Community Development Residential Rehabilitation Loans -
Thomas Hatch Blo& Limited Partnership
Responsible Department Community and Economic Development
This Order would authorize Community Development Residential Rehabilitation Loans to the Thomas
Hatch Block United Partnership to enable the rehabilitation of eight apartments and 1,690 square feet of
commercial space a[ 72-00 Columbia Street. As proposed, funding for the project, with an estimated
rest of $397,692, would Involve a combination of owner equity and financing provided by Bangor
Savings Bank, Penquis CAP CDFI (Community Development Hnance Institution) and Maine Slate Housing
Authority deferred loan funds under the MSHA Maine Odes Service Center Community Task Fmce
Program matdeW with loans under the City's Communn Development Program. The work will be
performed by House Revivers, owned by Bob and Smanne Kelly, which has performed three other
rehadlRation projects in the downtown on Hammond Street including the Hammond Street Courtyard.
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Manager's Com^m^entsr7l. Fore etM pD y—�� Wf ,(
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City Manager
Amaral Inform rtiam
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Finance DiraMr
Legal Approval:
Solidtor
Introduced for
X Passage
_First Reading Page 1 of 1
Referral
01-299
'- Assilped N Councilor Vardm4s July 23, 2001
\9 CITY OF BANGOR
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(TITLE.) Order, Approving Community Development Residential Rehabilitation
Loans - Thomas Hatch Block Limited Partnership
By Ne CI[y Counod ofMe atyOfBMW.
oRDeheD,l T the Director of Community and Economic Development is hereby authorized to
make Community Development Residential Rehabilitation Loans to the Thomas Hatch Black, L.P.
for the rehabilitation of 72-80 Columbia Street, Bangor, under the fallowing terms and
conditbns:
1. A loan not to exceed $51,000, at an Interest rate of 6% and a term of 20 years, seared
by a mortgage subordinate only to (1) a 1x mortgage by a private lender securing a loan
not exceeding $51,000 at an Interest rate not exceeding 9% for a term or amort ontion
schedule of not less than 20 years, (2) a 2nd mortgage by the Maine State Housing
Minority searing a loan of not lets than $60,000, land a[ 0% Interest for a term of 20
years with payments deferred for 20 years, and (3) a 3i° mortgage by a Community
Development Finance Institution (CDFI) securing a loan nor to exceed $61,000 at an
interest ale not to exceed 6%for a term or amortization schedule of not less than 20
years; and
2. A second loan matching funds provided by the Maine State Housing Authority under the
Maine Cities Service Center Community Task Force program to the Thomas Halcth Block,
L.P. for the rehabllitadon of 72-80 Columba Street, in an amount not to exceed $61,000,
under terms similar to those for funds loarred by MSHA, to Include D% Interest, and a term
of 20 years with no payments due during the term so lag as City and MSHA tenant and
other ban requirements are complied with, and wdh 1/20w of the outstanding principal
forgiven In each year that City and MSHA tenant and other Ian requirements are
complied with, secured by a mortgage subordinate to the mortgages referred to in 1.
above; and
3. That all loan funds be used only for the rehabilitation of the residential portion of 72-80
Columbia SbveC and
e. That the disbursement and use of the Ian funds be in compliance with the requirements
of the Community Development Block Gant Program and the Citys Community
Development Residential Rehabilitation Loan Program; and
S. That the Director of Community and Economic Development and/or City SoOdmr may add
such additional terms and conditions as they may consider necessary or appropriate to
protea the OWS interest; and
6. Subject to the owner§ equity investment in the project of not less than $65,000; and
01-299
]. Subject to the Borrower obtain g (1) (mate lender financing not to exceed $51,000 at an
interest rate not exceeding 9% for a term or amortizatlon schedule of not less than 20
years, (2) a Maine State Housing Authority loan of not less than $60,000, loaned a[ 0%
interest for a term of 20 years with payments defamed for 20 years, and (3) a Community
Development Finance Institution (CDFI) loan not to exceed $61,000 at an interest rate not
W exceed 6% for a tam or amortuation schedule of not less than 20 years, which,
together with owner equity Investment and Cry financing shall provide funding for the
total estimated projed cost of $397,692; and
S. That all loan documents be in a final Poem approved by the City Solcitor or Assistant City
Solicitor; and
9. That the Business and Economic Development Committee is hereby authorized to consider
and approve any amendments to the above approved terms and conditions
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July 23. 2001 i 01-299Korim Kam aoa seooaaaa 1
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