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7 <br /> Mr. Satyendra Huja, Direc tor of Strategic Planning, summarized the project and <br />recommended that the money be a grant as opposed to a loan. <br /> <br /> Mr. Schilling said that in reviewing the matter, he sees it as a worthy project, but <br />is troubled by the process in that contingency funds ar e being allocated when other needs <br />exist, such as in the schools. <br /> <br /> The $500,000 appropriation for the Garrett Square Initiative, which was offered at <br />rd <br />the September 3 meeting, was approved by the following vote. Ayes: Mr. Caravati, <br />Mr. Cox, Ms. Richard s. Noes: Mr. Lynch and Mr. Schilling. <br /> <br /> <br />WHEREAS <br />, by Resolution dated March 4, 2002 the City Council committed to <br />making a grant in the amount of $500,000 for the rehabilitation and preservation of the <br />Garrett Square Apartments; and, <br /> <br />WHEREAS <br /> , the financ ial commitment from the City assisted the proposed <br />developers of the property in obtaining a commitment for tax credit financing through <br />the Virginia Housing Development Authority; and, <br /> <br />WHEREAS <br /> , the Piedmont Housing Alliance (“PHA”) and the National Housing <br />Trust - Enterprise Preservation Corporation (“NHT”) have received commitments from <br /> City, will enable them to <br />other funding sources which, with the contribution from the <br />acquire, significantly rehabilitate and manage the Garrett Square property; and , <br /> <br /> <br />WHEREAS <br />, PHA and NHT have notified the City that the entire amount of the <br />City grant will be needed in order to close on the sale of the property on or about <br />September 30, 2002; and, <br /> <br />WHEREAS <br /> , the City is willing to appropriate the previously committe d grant <br />amount, as requested by PHA and NHT, so that the property can be acquired and <br />renovated. <br /> <br /> <br />NOW, THEREFORE, BE IT RESOLVED <br /> by the Council of the City of <br />Charlottesville, Virginia that $250,000 be appropriated from the contingency of the <br />City’s Capi tal Fund (26 - 020 - 122050) and $250,000 from the City’s Housing Initiatives <br />account (26 - 020 - 051528) to account code 26 - 020 - 051774 in the Capital Fund , to fund the <br />acquisition and renovation of the Garrett Square apartments. Funding by the City will be <br />relea sed upon the execution of a grant agreement between the City and PHA which <br />contains the following conditions: <br /> <br />1. PHA or NHT must receive a matching grant of $500,000 from a local <br />nonprofit foundation or fund for the purchase and renovation of Garrett <br />Square apartments. <br />2. PHA will agree to loan the grant funds to NHTE Piedmont Garrett Square <br />Limited Partnership, which will be responsible for the acquisition and <br />renovation. <br />3. Prior to closing the Limited Partnership will enter into a contract with <br />Edgewood Property Management, or another property management firm <br />acceptable to the City, for management of Garrett Square apartments. <br />4. If the purchase of Garrett Square apartments does not close on or before <br />December 31, 2002 PHA will, upon request, return the $500,000 gr ant to <br />the City. <br />5. If PHA ever receives any financial return from its equity interest in Garrett <br />Square apartments, through sale or otherwise, the funds shall be spent on <br />affordable housing initiatives within the City of Charlottesville, which are <br />mutually a cceptable to the City and PHA. <br /> <br /> <br />The City Manager is authorized to execute the grant agreement on behalf of the <br />City, in a form approved by the City Attorney. <br /> <br />REPORT <br />: FEES FOR USE OF CITY RIGHTS - OF - WAY <br /> <br />