Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 8-07-2023
Requesting Agency: Department of Housing Stability
Division:
Subject Matter Expert Name: Alex Dea
Email Address: alex.dea@denvergov.org <mailto:alex.dea@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 First Amendment to Loan Agreement between the City and County of Denver and 1275 Sherman LLC to revise the designated unit mix of affordable units at Capitol Square Apartments located at 1295 Sherman Street in Council District 10.
Amends the loan agreement with 1275 Sherman LLC to match the covenant stated unit mix at Capitol Square Apartments, comprised of 103 affordable apartments located at 1295 Sherman Street in Council District 10. No change to contract amount or duration (HOST-202369023-01). The last regularly scheduled Council meeting within the 30-day review period is on 9-18-2023. The Committee approved filing this item at its meeting on 8-16-2023.
body
Affected Council District(s) or citywide?
Council District 10
Contract Control Number:
HOST-202369023-01
Vendor/Contractor Name (including any “DBA”):
1275 Sherman LLC
Type and Scope of services to be performed:
Borrower developed 103 units of income-restricted housing
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?
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:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
Terms unrelated to time or price - adjustment to the mix of property
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)
The original loan agreement (HOST 202054254) for this project includes the below AMI unit table; however, the covenant did not place any restriction on bedroom size. Neither did the Colorado Housing and Finance Authority (CHFA) Land Use Restriction Agreement (LURA). This discrepancy was discovered after the property was leased up in compliance with the covenant, and it would take years to get the unit mix matching the loan agreement.
Original Unit Mix:
Due to the existing discrepancy and the extremely long timeline that would be required to revert the project to the original unit mix, HOST and the borrower request approval to amend the agreement to adjust the unit mix to the lease-up mix shown below. The covenant will be amended to include the unit mix, as well. Of note, this mix includes one more 30% 2-bedroom unit than the prior mix. This is a particularly difficult type of unit to develop.
Amended Unit Mix:
|
|
80% |
70% |
60% |
50% |
40% |
30% |
|
1 Bedroom |
7 |
11 |
27 |
16 |
6 |
5 |
|
2 Bedroom |
6 |
9 |
7 |
6 |
1 |
2 |
|
TOTAL |
13 |
20 |
34 |
22 |
7 |
7 |