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HomeMy WebLinkAbout78941 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 RESOLUTION NO. 7,894 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE ARKANSAS COMMUNITY HOUSING, INC. FOR A TERMINATION OF SERVICES. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. The City Manager is hereby authorized to enter into an agreement to terminate services with the Arkansas Community Housing, Inc. pursuant to the terms contained in the attached agreement. SECTION 2. This Resolution is in full force and effect from and after its passage. ADOPTED: February 2, 1988 ATTEST: CITY LERK JANE ZECH APPROVED,AS TO MARK STODOLA, CITY ATTORNEY APPROVED: i:AVO'R LOTTIE SHACKELFORD 32 2- D7 d- 6 �fro 33 AGREEMENT TO TERMINATE CONTRACT FOR SERVICES This Agreement to Terminate Contract for Services (the "Agreement ") is executed this day of 1988, by and between the City of Little Rock, Arkansas (the "City ") and Arkansas Community Housing, Inc. ( "ACHC"), pursuant to authority granted by the Little Rock Board of Directors in Resolution No. of 1988. WHEREAS, on June 13, 1986, the City and ACHC entered into a Contract for Services (the "Contract "), a copy of which is attached hereto as Exhibit "A," whereby the City agreed to pay ACHC the amount of One Hundred Fifty Thousand Dollars ($150,000.00) for the acquisition and rehabilitation of Ten (10) houses within the City limits that qualified for rehabilitation; and WHEREAS, pursuant to the terms of the Contract, the City paid ACHC One Hundred Fifty Thousand Dollars ($150,000.00) and ACHC has proceeded to rehabilitate several eligible houses; and WHEREAS, the Contract provides that the City will credit ACHC with Fifteen Thousand Dollars ($15,000.00) for each eligible house ACHC rehabilitates, and further provides that upon termination of the Contract for any reason, if ACHC has not completed rehabilitation of Ten (10) eligible houses, ACHC will - 1 - =r 34 receive a Fifteen Thousand Dollar ($15,000.00) credit for each house rehabilitated and will remit the difference between said credit and the contract amount of One Hundred Fifty Thousand Dollars ($150,000.00) to the City; and WHEREAS, differences of opinion have arisen between the City of Little Rock and ACHC over the land trust concept despite the Board of Directors having been advised of these issues in writing through correspondence from the City Manager on November 18, 1985; and WHEREAS, ACHC and the City, by duly authorized action of their respective governing boards, have agreed that it is in the best interest of both parties to terminate the Contract by mutual consent; NOW, THEREFORE, in consideration of the covenants set forth herein and the payment of the amounts set forth herein, the parties agree as follows: 1. Termination of Contract. Subject to the terms of Paragraph 3, this Contract shall be terminated effective this date by mutual agreement of the City and ACHC, and neither the City nor ACHC shall have any further rights or obligations pursuant to the Contract, except as set forth in this Agreement. 2. Credit to ACHC for Completed Houses. The City acknowledges that ACHC has completed the rehabilitation of Four (4) eligible houses in accordance with the terms of the Contract. - 2 - 35 In accordance with Section 2.03 of the Contract, the City agrees to credit ACHC with the amount of Fifteen Thousand Dollars ($15,000.00) for each of said Four (4) houses, for a credit of Sixty Thousand Dollars ($60,000.00), to be applied against the amount of One Hundred Fifty Thousand Dollars ($150,000.00) which the City has paid ACHC pursuant to the Contract. 3. Credit to ACHC for Houses to be Completed. The City acknowledges that ACHC is in the process of rehabilitating Two (2) additional eligible houses. The City agrees to credit ACHC with the amount of Fifteen Thousand Dollars ($15,000.00) for each of said Two (2) houses, for a credit of Thirty Thousand Dollars ($30,000.00), to be applied against the amount of One Hundred Fifty Thousand Dollars ($150,000.00) which the City has paid ACHC pursuant to the Contract if those Two (2) houses are completed by July 1, 1988. As a condition of the City's agreement to credit ACHC for the Two (2) houses which have not been completely rehabilitated, ACHC agrees that upon completion of said Two (2) houses it will furnish to the City at ACHC expense a final audit of all expenditures made under this termination Agreement and under the original June 13, 1986, Agreement with the City. Completion of the houses, as used herein, means completion of the rehabilitation efforts and certification by the City Department of Public Works that the houses comply with all applicable City codes. The City agrees that approval by Public Works will not be - 3 - .� =4r M M M M 36 unreasonably withheld. The parties agree that any additional work required , to obtain approval by Public Works will be at the sole expense of ACHC. Failure to comply with this provision by July 1, 1988, will mean the forfeiture of the entire Thirty Thousand Dollars ($30,000.00) plus interest by ACHC as liquidated damages for not having timely completed the work on these Two (2) houses under this Agreement. 4. Repayment to City. Upon execution of this Agreement, ACHC agrees to pay to the City the amount of Sixty Thousand Dollars ($60,000.00), plus interest earned, which represents the balance due to the City, after crediting ACHC for the Six (6) eligible houses. 5. Waiver of Claims. The parties acknowledge that this Agreement has been entered into by mutual consent and that neither the City nor ACHC shall have any further claims against the other in connection with the Contract, including but not limited to claims for funds due pursuant to the Contract. The City accepts the amount of Sixty Thousand Dollars ($60,000.00), plus interest earned, from ACHC in full satisfaction of any claims it may have against ACHC in connection with the Contract or in connection with any funds paid to ACHC pursuant to the Contract; the City hereby waives any rights, causes of action or claims which it may have against ACHC pursuant to the Contract; ACHC hereby waives any rights, causes of action or claims which it may have against the 4 - 37 City pursuant to the Contract. ACHC accepts the credit of Ninety Thousand Dollars ($90,000.00) for its services in rehabilitating Six (6) houses, which amount shall be applied against the amount of One Hundred Fifty Thousand Dollars ($150,000.00) which it received from the City pursuant to the Contract. 6. Rehabilitated Properties. The City shall have no interest, claims or rights in the $90,000.00 expended or the Six (6) properties which have been rehabilitated by ACHC or in any rents, payments, or other proceeds collected from said Six (6) houses so long as ACHC agrees that all proceeds from the sale or lease - purchase of the Six (6) houses rehabilitated pursuant to the original Agreement between the City and ACHC will be used to purchase and /or rehabilitate additional structures which will be made available to low and moderate income people. ACHC further agrees that the Six (6) houses rehabilitated under the original Agreement between the City and ACHC will be made available for purchase by low and moderate income individuals. 7. Maintenance of Records. ACHC shall maintain all original books of entry, cancelled checks, financial records, and audit reports, generated during the course of this Agreement and the original June 13, 1986, Agreement with the City, for a period of five (5) years after completion of all of the terms of this agreement. These records shall be available for inspection by City - 5 - officials at anytime during working hours upon reasonable notice to ACHC. 8. Miscellaneous Provisions. (a) This Agreement, together with all exhibits and the documents referred to herein, contains all the terms and conditions agreed upon by the parties hereto with respect to the transactions contemplated hereby, and shall not be amended or modified except by written instrument signed by all of the parties. (b) This Agreement shall be binding upon and inure to the benefit of the representatives, successors and assigns of the parties hereto. EXECUTED this the date first mentioned above. ARKANSAS COMMUNITY HOUSING, INC. By: ?J"J. G7m4" 10 fNv INv Attest: City Clerk CITY OF LITTLE ROCK, ARKANSAS By: City Manager - 6 - 38 BOARD OF DIRECTORS COMMUNICAT& r TO: MAYOR- A*B-80ARD OF DIRECTORS FROM: SUBJECT: PnPOSED ARKANSAS COMMUNITY HOUSING CORPORATION TERMINATION AGREEMENT DATE: JANUARY 14, 1988 Attached is the recommended termination agreement with ACHC. It provides for the following: • Credit to ACHC of $15,000 for each of four homes completed. • Credit to ACHC of $15,000 for each of two homes currently being renovated if completed by 7/1/88. • The return to the City of $15,000 plus interest earned for each of four homes not started by ACHC. It is proposed that this termination claims between the two parties. The the $90,000 given ACHC or to the six the proceeds from the sales of those and rehabilitation of further houses and moderate income families. agreement will settle all City will have no right to homes completed so long as homes go to the acquisition to be made available to low I strongly recommend the Board's favorable consideration of this proposed agreement. It is fair to both parties; six homes will have been renovated; and the alternative of taking ACHC into a protracted court case for a return of all of the original. $150,000 offers little hope of success on the part of the City. TD :mr Attachment CITY OF LITTLE ROCK, ARKANSAS 39