Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 1-1-2024
Requesting Agency: HOST
Division:
Subject Matter Expert Name: Chris Lowell
Email Address: Christopher.lowell@denvergov.org
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Third Amendment and Modification Agreement between the City and County of Denver and 3501 Chestnut Development LLC and Shanahan Development LLC to modify the repayment terms of the loan.
Amends a loan agreement with 3501 Chestnut Development LLC, and Shanahan Development LLC by extending the construction loan term, converting a portion of the construction loan to a performance loan, and exempting one unit from income qualification for the initial homebuyer only for the development of a 49-unit condominium project, in Council District 9. HOST-202371411 (HOST-202158709). The last regularly scheduled Council meeting within the 30-day review period is on 2-5-2024. The Committee approved filing this item at its meeting on 1-3-2024.
body
Affected Council District(s) or citywide?
Council District 9
Contract Control Number:
HOST-202371411 (HOST-202158709)
Vendor/Contractor Name (including any “DBA”):
3501 Chestnut Development LLC, and Shanahan Development LLC
Type and Scope of services to be performed:
1. Approve the conversion of $1,110,000 from a repayable Construction Loan to a performance loan. This conversion will allow for the project to fully fund the cost overruns ($610,000 from HOST) as well as fund the interest rate buy down program ($500,000) without adding any additional funding to the loan agreement. $3,890,000 of the construction loan, including any unpaid interest, will be repaid to the City on, or before, the expiration of the Construction Loan term.
2. Approve the extension of the Construction Loan term to December 31, 2024. Project delays will delay unit sales so this extension will provide enough cushion for the Borrower to repay the Construction loan through the proceeds of unit sales.
3. Approve the exemption of the one right of first refusal unit for the initial homebuyer only (previous property owner). The unit will still be subject to the ECLT land lease for all resales and subsequent homebuyers.
Location (if applicable):
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
N/A
Are WBE/MBE/DBE goals met (if applicable)?
N/A
Is the contract new/a renewal/extension or amendment?
amendment
Was this contractor selected by competitive process or sole source?
n/a
For New contracts
Term of initial contract:
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term:
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
|
Current Contract Amount (A) |
Additional Funds (B) |
Total Contract Amount (A+B) |
|
$8,185,000 $3,185,000 of which is a performance based forgivable loan and $5,000,000 of which is a repayable construction loan. |
N/A |
$8,185,000 $1,110,000 of the repayable construction loan portion ($5,000,000) will be converted to a performance based, forgivable loan. The remaining $3,890,000 will be the “Construction Loan Repayable Portion” |
|
Current Contract Term |
Added Time |
New Ending Date |
|
06/01/2021-03/16/2024 |
See “new ending date table” |
Construction Loan Repayable Portion-12/31/2024 Construction Loan Performance Portion- 2/13/2121 |