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HomeMy WebLinkAboutFirst Amendment to Project Agreement (Parcel 5 Remainder and Parcels 4 and 11)FIRST AMENDMENT TO PROJECT AGREEMENT (Parcel 5 Remainder/Parcels 4 & 11) This First Amendment to Project Agreement (Parcel 5 Remainder/Parcels 4 & 11) (the "Amendment"), executed as of the 151" day of December, 2014, by and among The City of Carmel Redevelopment Commission ("CRC"), Carmel City Center, LLC ("CCC"), CCC West, LLC ("CCC West"), CCC Phase ll, LLC ("CCC Phase II"), and Village Housing Corporation (" HIC"), Witnesses: Recitals WHEREAS, CRC, CCC, and VHC have entered into the Original Agreement, WHEREAS, subsequent to the execution of the Original Agreement, CCC conveyed: (a) the western portion of the Parcel 5 Remainder Site to CCC West; and (b) the eastern portion of the Parcel 5 Remainder Site to CCC Phase II; as generally outlined on Schedule I; WHEREAS, CCC no longer owns any portion of the Parcel 5 Remainder Site, WHEREAS, subsequent to the execution of the Original Agreement, the parties agreed to a revised Committed Site Plan, a revised Plan Schedule, and a revised Committed Construction Schedule, WHEREAS, in connection with the execution of the Second Component Project Agreement, the parties have determined that additional amendments to the Original Agreement are necessary or appropriate, and WHEREAS, the parties wish to execute this Amendment, Agreement ACCORDINGLY, for good and valuable consideration, the receipt and sufficiency of which are acknowledged hereby, the parties agree to the terms and conditions set forth below. 1. Defined Terms. To the extent that the following defined terms are used in the Original Agreement, they are amended to have the definitions set forth in this Section. Baldwin Component shall mean the Component delineated as the "Baldwin Component" on the Committed Site Plan. The Baldwin Component is within the Parcel 5 Remainder Site. Chambers Component shall mean the Component delineated as the "Chambers Component" on the Committed Site Plan. The Chambers Component is within the Parcel 5 Remainder Site. Committed Construction Schedule shall mean the schedule that sets forth: (a) the order in which each Component shall be constructed; and (b) the dates and/or time periods for commencement and completion of each Component; which schedule is attached hereto as Replacement Exhibit D. Committed Site Plan shall mean the site plan attached hereto as Replacement Exhibit A, which site plan delineates each Component, including the general location, square footage, and usage thereof. Construction Schedule shall mean a detailed schedule for construction of each Component in accordance with the Final Plans, which schedule shall be consistent with the Committed Construction Schedule. Accordingly, without the consent of CRC, which consent may be withheld in CRC's sole discretion, the Construction Schedule shall not move back the dates, and/or expand the time periods, for commencement and completion of each Component, as set forth on the Committed Construction Schedule. Eastern Motor Court Component shall mean the Component delineated as the "Eastern Motor Court Component' on the Committed Site Plan. The Eastern Motor Court Component is within the Parcel 5 Remainder Site. Estimated Increment Amount shall mean, for each year reflected on Schedule 11, the amount set forth on Schedule II as the total estimated amount of the New Improvements Increment that will be generated as a result of the construction of the Supporting Projects. The Financial Advisor has approved: (a) the estimates submitted by Developer with respect to the New Improvements Increment to be generated by each separate Component, the Kent Project, and the Office Building; and (b) the amounts set forth on Schedule 11. Executive Director shall mean the Executive Director of CRC (currently Corrie Meyer). Financed Improvement shall mean any portions of the Public Improvements that: (a) are financed with Public Improvements Financing; (b) constructed using New Improvements Increment and/or Excess Existing Improvements Increment (in lieu of obtaining Public Improvements Financing); or (c) otherwise are acquired by CRC. Holland Component shall mean the Component delineated as the "Holland Component' on the Committed Site Plan. The Holland Component is within the Parcel 5 Remainder Site. Kent Project shall mean the project to be constructed on the Kent Project Site, as more particularly described in the Second Component Project Agreement and the project agreement executed with respect to such project. Kent Project Site shall mean that portion of Parcel 2 (Residential) delineated as the "Kent Project Site' on the Committed Site Plan. Office Building shall mean the project to be constructed on the Office Building Site, as more particularly described in the Second Component Project Agreement and the project agreement executed with respect to such project. Office Building Site shall mean that portion of Parcel 2 delineated as the "Office Building Site" on the Committed Site Plan. Original Agreement shall mean that certain Project Agreement (Parcel 5 Remainder/Parcels 4 & 11) executed by and among CRC, CCC, and VHC and dated December 7, 2011. Parcel 5 shall mean that portion of the City Center Site comprised of Parcel 5 Phase 1, Parcel 5 Nash, and the Parcel 5 Remainder Site. Parcel 5 Nash shall mean that portion of the City Center Site delineated as "Parcel 5 Nash" on Schedule 1. Parcel 5 Phase 1 shall mean that portion of the City Center Site delineated as "Parcel 5 Phase V on Schedule 1. Parcel 5 Remainder Site shall mean that certain real estate delineated as the "Parcel 5 Remainder Site' on Schedule I. The Parcel 5 Remainder Site and Parcel 5 Nash, collectively, are the "Remainder Project Site' pursuant to the MPA Third Amendment. Plan Review Panel shall mean a plan review panel comprised of Corrie Meyerand two designated members of CRC; provided that, if Come Meyer is unavailable or unable to serve on such panel, then a qualified replacement shall serve in her place. ZA)cr arts\Shoup,Jenny,CIty of CarmelURemainder Project 19JanI5 AgreementAAmeadmenl to RPA.v3.rvpd -2- Plan Schedule shall mean the schedule in accordance with which Developer shall prepare and provide to CRC the Schematic Design Drawings, the Design Development Documents, the Construction Schedule, and the Construction Drawings for each Component, which schedule is attached hereto as Replacement Exhibit C. Playfair Component shall mean the Component delineated as the "Playfair Component' on the Committed Site Plan, The Playfair Component is within the Parcel 5 Remainder Site, Windsor Component shall mean the Component delineated as the "Windsor Component' on the Committed Site Plan. The Windsor Component is within the Parcel 5 Remainder Site. Wren Component shall mean the Component delineated as the "Wren Component' on the Committed Site Plan. The Wren Component is within the Parcel 5 Remainder Site. Public Improvements Financing shall mean financing: (a) to construct Public Improvements on Parcel 4, the Parcel 5 Remainder Site, the Gallery Site, and/or Parcel 11; provided that, at the election of CRC, such financing also may be used to construct Public Improvements on Parcel 2 (Residential); (b) in the case of a loan, sufficient to pay financing costs, lender fees and loan costs, and interest payments; (c) in the case of the issuance bonds or certificates of participation, sufficient to pay issuance cost, provide for capitalized interest, and create debt service and any other required reserves; which financing, in the case of a loan, shall be on terms that include: (a) no fewer than two years of interest only payments, (b) no fewer than five years of payment of principal and interest at a fixed interest rate, (c) amortization of the principal balance over a period of 20 years, and (d) the requirement that CRC maintain a debt service coverage ratio of at least 1.07:1.0. Second Component shall mean the Component delineated as the "Second Component'on the Committed Site Plan, The Second Component is within the Parcel 5 Remainder Site. Second Component Bonds shall mean the tax increment financing bonds to be issued pursuant to the Second Component Project Agreement, the proceeds of which shall be used to construct Public Improvements on the Second Component and the Kent Project Site pursuant to the Second Component Project Agreement and the project agreement executed with respect to the Kent Project. Second Component Project Agreement shall mean that certain Project Agreement (Second Component/Park East/Second Component Public Improvements) of even date herewith executed by and among CCC, CRC, CCC West, and CCC Phase II. Supporting Projects shall mean the Baldwin Component, the Chambers Component, the Eastern Motorcourt Component, the Holland Component, the Kent Project, the Office Building, the Playfair Component, the Second Component, the Windsor Component, and the Wren Component. Supporting Projects PIATTS shall mean the Taxpayer Agreements executed with respect to each of the Supporting Projects. Each Supporting Project PIATT "guarantees" receipt by CRC on an annual basis of an amount equal to the portion of the Estimated Increment Amount allocable to the applicable Component, the Kent Project, or the Office Building, as applicable. In the aggregate, the Supporting Projects PIATTs "guarantee" receipt by CRC on an annual basis of the full amount of the Estimated Increment Amount, 2. Committed Site Plan. Because the parties have agreed to a revised Committed Site Plan, Exhibit attached to the Original Agreement is replaced and superseded by Replacement Exhibit A attached to this Amendment. Accordingly, all references to the Committed Site Plan shall be deemed to be references to the site plan attached hereto as Replacement Exhibit A. Z.Oocuuu ntsShoup,Jenny,city of CarmckRemainder Project Man15 Agrecouch AAmendment to RPA.v3_wpd -3- 3. Committed Schedules. (a) Plan Schedule. In conjunction with the revised Committed Site Plan: (i) the parties have agreed to a revised Plan Schedule; and (ii) Exhibit C attached to the Original Agreement is replaced and superseded by Replacement Exhibit C attached to this Amendment. Accordingly, all references to the Plan Schedule shall be deemed to be references to the schedule attached hereto as Replacement Exhibit C. (b) Construction Schedule. In conjunction with the revised Committed Site Plan: (i) the parties have agreed to a revised Committed Construction Schedule; and (ii) Exhibit D attached to the Original Agreement is replaced and superseded by Replacement Exhibit D attached to this Amendment. Accordingly, all references to the Committed Construction Schedule shall be deemed to be references to the schedule attached hereto as Replacement Exhibit D. 4. Nash. The Component located on Parcel 5 Nash currently is under construction in accordance with the terms and conditions of the Original Agreement and that certain Project Agreement (First Component) executed by and among CRC, CCC, and CCC Nash, LLC, and dated December 27, 2012. 5. Public Improvements. The parties acknowledge that the Original Agreement contemplates leveraging New Improvements Increment and Excess Existing Improvements Increment to obtain Public Improvements Financing. However, it may be the case either that: (a) CRC is unable to leverage the New Improvements Increment and/orthe Excess Existing Improvements Incrementto obtain Public Improvements Financing; or (b) the costs to leverage the New Improvements Increment and/or the Excess Existing Improvements Increment to obtain Public Improvements Financing are prohibitive or unjustifiable. Accordingly, the parties acknowledge and agree that, in lieu of leveraging the New Improvements Increment and/orthe Excess Existing Improvements Incrementto obtain Public Improvements Financing, CRC mayelect to use the New Improvements Increment and/orthe Excess Existing Improvements Incrementto paythe costs to construct Public Improvements. The parties also have agreed to limit the amount of New Improvements Increment that CRC is obligated to use to construct Public Improvements or to obtain Public Improvements Financing. In connection with the foregoing, Subsections 4(c), 4(d), and 4(e) of the Original Agreement are amended and restated to read as follows: "(c) Financing. (i) CRC shall earmark, for the construction of Public Improvements or to obtain Public Improvements Financing, an amount equal to the lesser of: (A) 100% of the approved estimated annual amount of the New Improvements Increment to be generated in connection with the construction of a Component, the Kent Project, and/or the Office Building, as applicable; or (B) with respect to such applicable Component, Kent Project, and/or Office Building, the amount of: (1) the annual New Improvements Increment actually collected by CRC; plus (2) any payments actually collected by CRC under a Taxpayer Agreement "guaranteeing" receipt of the full amount of the approved estimated annual amount of the New Improvements Increment. (i i) CRC shall earmark, for the construction of Public Improvements or to obtain Public Improvements Financing, an amount equal to the lesser of: (A) 100% of the approved estimated annual amount of the Excess Existing Improvements Increment; or (B) the amount of: (1) the annual Excess Existing Improvements Increment actually collected by CRC; plus (2) any payments actually collected by CRC under a Taxpayer Agreement "guaranteeing" receipt of the full amount of the approved estimated annual L VDocmncros\Shoup, Jenny�Cty of CarmekRemainder Project 19.1an G AgreementAAmendment to RPAv3. tvpd -4- amount of the Excess Existing Improvements Increment. (iii) Developer shall provide reasonable assistance to CRC in connection with obtaining any Public Improvements Financing, including, without limitation, that, if requested by CRC, Developer shall: (A) act as the borrower with respect to the Public Improvements Financing; (B) act as the seller of the Public Improvements being financed; and/or (C) execute an Installment Contract and/or such additional documents as may be required by CRC including, without limitation, a Taxpayer Agreement and/or a Tri-Party Agreement. If an Installment Contract is required, then the payments under the Installment Contract shall "match up with", and be used to cover, the debt service (including lender fees and loan costs) payable under the documents evidencing the Public Improvements Financing. (d) Construction. At such time as Public Improvements Financing is obtained, Developer shall construct the applicable Public Improvements in accordance with the Final Plans. Notwithstanding anything to the contrary set forth herein, Public Improvements constructed using New Improvements Increment and/or Excess Existing Improvements Increment or financed with Public Improvements Financing shall be constructed only on Parcel 4, the Parcel 5 Remainder Site, the Gallery Site, and/or Parcel 11, regardless of the fact that the New Improvements Increment or the Excess Existing Improvements Increment used to constructthe Public Improvements or obtain the Public Improvements Financing may be generated as a result of: (i) New Improvements constructed on Parcel 2 or Parcel 12; or (it) improvements currently existing on Parcel 2, Parcel4, Parcel Phase 1, Parcel 11, and/or Parcel 12; respectively, provided that, at the election of CRC, Public Improvements constructed using New Improvements Increment and/or Excess Existing Improvements Increment, or financed with Public Improvements Financing, also may be constructed on Parcel 2 (Residential). (a) Limitation. Under no circumstances shall CRC be obligated to expend funds in amounts in excess of those required to be earmarked pursuant to Subsection 4(c). Accordingly, to the extent that the cost to construct any Public Improvements exceeds either: (i) the amounts required to be earmarked pursuant to Subsection 4(c), in the case of use of the New Improvements Increment to construct Public Improvements; or (ii) the amount of the Public Improvements Financing obtained by leveraging the amounts required to earmarked pursuant to Subsection 4(c); Developer shall be responsible for such excess cost." 6. Second Component Financing. (a) Second Component Bonds. In compliance with Subsection 4(c) of the Original Agreement, as restated in Section 5 of this Amendment, CRC is leveraging a portion of the Estimated Increment Amounttoobtain Public Improvements Financing byissuing the Second Component Bonds. (b) Principal Amount. The principal amount of the Second Component Bonds has been determined based upon the amount of annual debt service that can be paid using approximately 90% of the annual Estimated Increment Amount. (c) Increment Use. Because less than 100%ofthe annual Estimated lncrementAmount will be required to pay the annual debt service on the Second Component Bonds, CRC is obligated under Subsection 4(c) of the Original Agreement, as restated in Section 5 of this Amendment, to earmark, on an annual basis and for use to construct Public Improvements or to obtain Public Improvements Financing, the lesser of: LADocuments\Shoup, JennyVCity of CannelTemainder Project 1 Wan I5 AgrecmenP.Ameodment to RPA.v3.v pd -5- (i) the difference between: (A) the Estimated Increment Amount for a given year, as set forth on Schedule II; minus (B) the debt service payable on the Second Component Bonds for such year, as set forth on Schedule II; or (ii) the difference between: (A) the actual amount of the New Improvements Increment generated by the Supporting Projects for such year and collected by CRC, together with the actual amount of the "PIATT Payments" for such year collected by CRC under the Supporting Projects PIATTS; minus (B) the debt service payable on the Second Component Bonds for such year, as set forth on Schedule Il. (d) Deposit. Within 90 days after the end of each year reflected on Schedule II, CRC shall deposit into a designated fund an amount equal to the difference between: (i) the Estimated Increment Amount for the immediately previous year, as set forth on Schedule Il; minus (ii) the debt service payable on the Second Component Bonds in the immediately previous year, as set forth on Schedule II; provided that, if the total of: (i) the New Improvements Increment actually generated by the Supporting Projects; plus (ii) the "PIATT Payments" actually collected by CRC under the Supporting Projects PIATTS; for the immediately previous year is less than the Estimated Increment Amount for such year, then the foregoing deposit obligation shall be reduced dollarfor dollar by the amountthatthe total of: (i) the New Improvements Increment actually generated by the Supporting Projects; plus (ii) the "PIATT Payments" actually collected by CRC under the Supporting Projects PIATTS; for such year falls short of the Estimated Increment Amount for such year. 7. Miscellaneous. In the event of any conflict between the Original Agreement and this Amendment, the terms and conditions of this Amendment shall control. Except as expressly provided in this Amendment, all of the terms and conditions of the Original Agreement shall remain in full force and effect. 7_1 UocumenisIS hou P, 1c1111;CIty 01 C;IMclARCJn R i nder Project 19Jan15 :Agrwmen OAm endmem to RPA v3,pd -6- above. IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth THE CITY OF CARMEL RED E PMENT MMISSII/ONNA By: Wil iam amme/r�, Pres By: t Printed:: Put J L 80 tiers V Title: y e I p YP5 (tt jt l CARMEL �/T^Y CENT , LLC 6y: 41 l Printed: . rtlGe 14 e,,-ot ji^ ({4 Title: 151 ; d;e"� — ��. �—✓c® CCC WEST, LLC By: o"/ � 1 Printed: _ 101, 0 c E fi � "�y�l 4'e Title: CCC PHAS II, L r By: t Printed: %NCB le Title: Pr rj i de,,41" L' �Q ✓ VILLAGE F�OUSI CO PORATION By: Printed: Or"C'e Col�iJ(y Title: �%Gd . �eRfi NCO Z9llocumen1s\Shoup..lennyVCity or CnrmelUtemainder Pmjed 19.1un6 Apw,,en Vlnendmcn[ to RPA.v3 pd -7- INDEX TO EXHIBITS Replacement ExhibitA Revised Committed Site Plan (delineates Components to be constructed on each of Parcel 4, Parcel 11, and the Parcel 5 Remainder Site), as well as the Kent Building Site and the Office Building Site Replacement Exhibit C Revised Plan Schedule (schedule in accordance with which Developer submits Schematic Design Drawings, Design Development Documents, Construction Schedule, and Construction Drawings for each Component) Replacement Exhibit Revised Committed Construction Schedule (sets forth order for construction of each Component, together with dates and/or time periods for commencement and completion of each Component) Schedule I Depiction/delineation of each of Parcel 5 Phase 1 (including delineation of current ownership by CCC West and CCC Phase II), Parcel 5 Nash, and Parcel 5 Remainder Site Schedule II Annual schedule of projected New Improvements Increment, debt service on Second Component Bonds, and difference between the foregoing two amounts Z VDocuments\Shoup, JennyVCity of Carmel URca amder Project Man15 AgmemenlsAmendmera to RPA.v3. ,pd '8- ■ ® -0 ^, (A CD 3 2 n 'gy m m G ma: o > 0 �3m to i -a .E C to w N ID a X m a� 00 mT- 'S T m� Z m z � X Cp 4� 11 �� l� n 00. _ am Replacement Exhibit A 1000 D 2014 Camel City Cent.,, LCC V E "a va""o, syeomw ME M Kent Building Site and Office Building Site www.carmelcitycenter.com QkXQ-e I &o Exuws Gti:I) It RM I M 13 z ��CD �d dd �d ; s^ A N 1 N E C � C. M 2 aN in tea, m m 3 m Cl �°c 7 S r -- m m d N � i W su& djj�u G � CARMEL CITY CENTER PRELIMINARY TIE REVENUE / DEBT SERVICE COVERAGE For Park East TIE District Borrowing: Interest Rate: Growth Rate:l i � -w'-- uoev(5� *�e A N L�5 e)cO (-,-) Y&-k � S lleG4 � C �11� $16.067,000 4.60% 0.00% 07/01/14 - 01/01/15 - - 07/01135 - 01/01/16 - - 07/01/16 - 123,518 123,518 - 01/01/17 - 372,578 372,578 - 07/01/17 - 366,504 366,504 - 01/01/18 - 372,578 372,578 - 07/01/18 209,360 366,504 157,144 - 01/01/19 209,360 372,578 163,218 - 07/01/19 468,170 425,609 42,561 1.10 O1/01/20 468,170 425,609 42,561 1.10 07/01/20 589,539 535,944 53,594 1.10 O1/01/21 589,539 535,944 53,594 1.10 07/01/21 661,458 601,325 60,133 1.10 O1/01/22 661,459 601,325 60,133 1.10 07/01/22 661,458 601,325 60,133 1.10 O1/01/23 661,458 601,325 60,133 1.10 07/01/23 661,458 601,325 60,133 1.10 O1/O1/24 661,458 601,325 60,133 1.10 07/01/24 661,458 601,325 60,133 1.10 O1/01/25 661,458 601,325 60,133 1.10 07/01/25 661,458 601,325 60,133 1.10 O1/O1/26 661,458 601,325 60,133 1.10 07/01/26 661,458 601,325 60,133 1.10 O1/01/27 661,458 601,325 60,133 1.10 07/01/27 661,458 601,325 60,133 1.10 01/01/28 661,458 601,325 60,133 1.10 07/O1/28 661,458 601,325 60,133 1.10 O1/01/29 661,458 601,325 60,133 1.10 07/01/29 661,458 601,325 60,133 1.10 O1/O1/30 661,458 601,325 60,133 1.10 07/O1/30 661,458 601,325 60,133 1.10 01/01/31 661,458 601,325 60,133 1.10 07/01/31 661,458 601,325 60,133 L10 O1/01/32 661,458 601,325 60,133 1.10 07/O1/32 661,458 601,325 60,133 1.10 01/01/33 661,458 601,325 60,133 1.10 07/01/33 661,458 601,325 60,133 1.10 01/01/34 661,458 601,325 60,133 1.10 07/01/34 661,458 601,325 60,133 L10 O1/01/35 661,458 601,325 60,133 1.10 07/01/35 661,458 601,325 60,133 1.10 O1/01/36 661,458 601,325 60,133 1.10 07/01/36 661,458 601,325 60,133 1.10 01/01/37 661,458 601,325 60,133 1,10 07/01/37 661,458 601,325 60,133 1.10 O1/01/38 661,458 601,325 60,133 1.10 07/01/38 661,458 601,325 60,133 1,10 O1/01/39 661,459 601,325 60,133 1.10 07/01/39 661,458 601,325 60,133 1.10 O1/01/40 661,458 601,325 60,133 1.10 07/01/40 661,458 601,325 60,133 1.10 O1/01/41 661,458 599,724 61,734 1.10 28,992,441 27,948,768 1,555,540 2,599,212 1Cti l4'� Or' `�✓� Cwcut T 6vt,� CLCTccF (3L)CY-Ow 0. 5