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HomeMy WebLinkAboutCRA-R-15-0032 Submittasl-SEOPW-Amendment-Dev. agreementAMENDMENT THIS AMENDMENT is made as of this day of July 2015 by and between SJP APARTMENTS, LLC, a Florida limited liability company (the "Developer") and the Southeast Overtown/Park West Community Redevelopment Agency, a body corporate created pursuant to Section 163.356, Florida Statues (the "CRA"). RECITALS A. St. John Plaza Apartments, LLC, a Florida limited liability company (the "Original Developer") and the CRA entered into that Development Agreement dated as January 18, 2013 (the "Development Agreement"). B. Original Developer has requested the CRA approve the assignment of the Development Agreement by Original Developer to Developer (the "Assignment") in accordance with the provisions of Section 15 of the Development Agreement. C. The CRA desires to approve the Assignment, subject to the terms of this Amendment. D. Developer and the CRA desire and modify and amend certain other terms and provisions of the Development Agreement as hereinafter set forth. NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Recitals. The Recitals to this Amendment are true and correct and are hereby incorporated by reference and made a part hereof. 2. Defined Terms. All defined terms utilized in this Amendment but not defined in this Amendment shall have the meanings ascribed to said terms in the Development Agreement. 3. Consent to Assignment. In accordance with Section 15 of the Development Agreement, the CRA hereby approves the Assignment of the Development Agreement from Original Developer to Developer, a copy of which is attached hereto as Exhibit "A". 4. Property Issues. The CRA and Developer acknowledge that Developer has provide Ti the Executive Director the following: (a) copy of the Survey and the Commitment which shall mshow Developer to be vested with a leasehold estate in the Property pursuant to the Lease, a o. c ' ° memorandum of which was recorded in Official Records Book , at Page of the Public € o Records of Miami -Dade County, Florida, subject only to the Permitted Exceptions and that 2 t ° _ 1.. mortgage recorded August 23, 1988 in Official Records Book 13796, at Page 2036 of the Public ° ° 6 u Records of Miami -Dade County, Florida (the "Existing Mortgage") which is to be satisfied by the 13 d c CDC on or before the Closing Date; (b) an environmental report and a reliance letter addressed to N d « ~ the CRA reflecting no environmental conditions that will adversely affect the development of the Project; (c) a soil assessment report to enable the Executive Director to confirm that there are no soil conditions that will adversely affect the development of the Project; and (d) a letter from the 1510osoo - 5ubrni -H-L1- SEWN- -Amend nwi- Du. Alt-time/1+ Public Works Director of the City confirming that the Project can be developed without replatting the Property. 5. Deed from Church. The CRA acknowledges that St. John Plaza Project, LLC, a Florida limited liability company, an affiliate of the CDC has acquired the Church Property pursuant to that deed recorded in Official Records Book 29326, at Page 505 of the Public Records of Miami -Dade County, Florida. 6. Lease. The CRA has approved the Lease, a memorandum of which was recorded in Official Records Book , at Page of the Public Records of Miami -Dade County, Florida. 7. Project. Section 3.1 of the Development Agreement is hereby amended and restated to read as follows: "3.1 Description of the Project. The project (the "Project") shall consist of not less than 90 affordable rental units, all with balconies and upgraded finishes to improve longevity and durability with ground floor commercial space constructed in one or more buildings not exceeding eight (8) stories, will include one -bedroom units, two -bedroom units, and three -bedroom units, the mix of which and the size of which shall be established upon the community input received in accordance with Section 3.3 below and as approved by the Executive Director in accordance with Section 3.4 below together with approximately 8,500 square feet of community service space including approximately 4,000 to 8,000 square feet of space for a child learning center and a sufficient number of parking spaces to comply with the applicable zoning and shall include free wireless internet service at the highest available residential speed for all residential units." 8. Approval of Schematic Design Documents. The CRA acknowledges that the Executive Director has approved the Schematic Design Documents on April 16, 2015 which are identified on Exhibit `B" attached hereto and made a part hereof. The CRA waives any right of default under the Development Agreement as a result of the failure of the Developer to submit the Schematic Design Documents to the Executive Director within ninety (90) days from the Effective Date. 9. Project Budget. The Preliminary Budget attached to the Development Agreement is hereby replaced by the Preliminary Budget attached hereto as Exhibit "C" and made a part hereof. 10. Project Schedule. The Project Schedule is attached hereto as Exhibit "D" and made a part hereof. 11. Section 4.1.6 of the Development Agreement is hereby amended and restated in its entirety to read as follows: "4.1.6 Operating Agreement. The operating agreement for the Developer (the "Operating Agreement") must reflect that SJP Apartments MM, LLC, a Florida limited liability company, is the manager and owns not less than .01% membership interest in the Developer and reflect that the balance of the membership interests in Developer is owned 2 Submitted into the public record in connection with Item Son 7-27-15 Todd B. Hannon Clerk of the Board by the Institutional Investor and the operating agreement for SJP Apartments MM, LLC must reflect that the CDC, or its wholly owned affiliate, has not less than a 25% membership interest in SJP Apartments MM, LLC." 12. Funding Agreement. The first sentence of Section 4.1.4 of the Development Agreement is hereby deleted and replaced with the following: "The CRA, and Developer, the Non -Profit, as hereinafter defined, the Developer's lender providing financing in accordance with the Loan Commitment (the "Lender"), the institutional investor(s) providing equity to the Developer in exchange for the allocation of tax credits (the "Institutional Investor"), SJP Apartments MM, LLC, a Florida limited liability company (the "Managing Member") or an entity controlled by the CDC and SJP Apartments MM, LLC (the "Controlled Entity") which makes the MM Loan, as hereinafter defined, shall agree to the terms of an agreement (the "Funding Agreement") in the form and substance reasonably acceptable to the Executive Director." 13. Form of Funding Agreement. Developer acknowledges that in connection with previous transactions, the Executive Director has approved a funding agreement in the form of Exhibit "E" attached hereto. 14. Non -Profit Grant Agreement. Section 5.4 of the Development Agreement is hereby amended to provide that the Non -Profit Grant Agreement shall be in substantially the form of Exhibit "F" attached hereto and made a part hereof. 15. Non -Profit. The CRA and the Developer agree that the Non -Profit shall be The Urban League of Greater Miami, Inc., a Florida not -for -profit corporation. In addition the CRA acknowledges that the Executive Director has approved the Non -Profit Loan Documents and the MM Loan Documents and the CRA waives any right to terminate the Development Agreement pursuant to Section 5.9. 16. Bond Issue Approval. The CRA acknowledges that Bond Issue Approval has been obtained and the provisions of Section 5.5 of the Development Agreement are hereby deleted. 17. Non -Profit Loan Documents and the MM Loan Documents. The CRA and the Developer acknowledge and agree that the Non -Profit Loan Documents and the MM Loan Documents shall be in substantially the form attached hereto as Exhibit "G". 18. Closing. The Closing Date is hereby amended to be on the earlier of (a) ten (10) days after all the CRA Conditions Precedent to closing have been either satisfied or waived by the CRA or (b) November 30,2 2015, time being of the essence. 19. CRA Conditions Precedent. Sections 9.1.9, 9.1.10, 9.1.11, and 9.1.13 of the Development Agreement are hereby amended and restated in their entirety to read as follows: "9.1.9 The Executive Director has confirmed that (i) the CDC, or its wholly owned affiliate, has not less than a 25% membership interest in the Managing Member of the Developer; and (ii) that the ownership structure of Developer is as reflected on Exhibit H and there has been no changes in the ownership interest in the Developer from that 3 Submitted into the public record in connection with Item 5 on 7-„2 7-/S_ Todd B. Hannon Clerk of the Board reflected on Exhibit H other than the transfer of 99.9% of the membership interests to the Institutional Investor. 9.1.10 The Executive Director has approved the proposed development agreement between the Developer and St. John CDP-BC Developer, LLC to oversee the construction of the Project subject to the limitations contained in Section 5.2. 9.1.11 The Executive Director has confirmed that the CDC has not less than a twenty percent (20%) interest in the developer fee and profit earned by St. John CDP-BC Developer, LLC, to be paid pari passu with the amounts paid to St. John CDP-BC Developer, LLC or in the alternative, the CDC, or its wholly owned affiliate, is being paid a substantially equivalent fee through the Operating Agreement and the Lease. 9.1.13 The Developer has obtained a phased building permit for the entire Project to enable Developer to commence construction of the Project in accordance with the Plans." 20. Participation Requirements. Section 6.2 and 6.3 of the Development Agreement is hereby amended and restated in its entirety to read as follows: "6.2 Participation Requirements. Developer agrees to comply with the following subcontractor participation requirements and laborer participation requirements (the "Participation Requirements") with respect to the Project: 6.2.1 Subcontractor Participation. The Developer shall require its general contractor to hire not less than twenty percent (20%) of the subcontractors for the demolition of any existing improvements and construction of the Project utilizing companies that have their principal place of business within the City with the following priority: a. First, to City residents living within the Redevelopment Area, which encompasses part of zip code 33136; b. Second, to City residents living within the boundaries of Overtown community, which community encompasses part of zip code 33136; c. Third, to City residents within zip code 33127, 33128, 33130, 33136, 33142, 33125, 33135, 33150 and west Coconut Grove (the `CRA Targeted Zip Codes") which include the five (5) highest poverty rated zip codes located in the City; and d. Fourth, to residents residing outside of the CRA Targeted Zip Codes. For purposes of calculating the twenty percent (20%) subcontractor participation, the twenty percent (20%) participation shall be calculated based upon the dollar value of each subcontract given to subcontractors whose principal place of business is in the City and the total dollar value of all subcontracts entered into by the general contractor for the Project ("Subcontractor Participation Requirement"). 4 Submitted into the public record in connection with Item 5_ on 7 -� 7-15 Todd B. Hannon Clerk of the Board 6.2.2 Laborer Participation. Developer agrees to require its general contractor and all subcontractors to hire forty percent (40%) of the unskilled labor for the demolition of any existing improvements and the construction of the Project ("Laborer Participation Requirement") from workers residing in the City with the following hiring priorities: a. First, to City residents living within the Redevelopment Area, which encompasses part of zip code 33136; b. Second, to City residents living with the boundaries of Overtown Community, which community encompasses part of zip code 33136; c. Third, to City residents within the CRA Targeted Zip Codes; and d. Fourth, to City residents residing outside-ef the CRA Targeted Zip Codes. 6.2.3 In the event of any disputes between the Executive director and the Developer as to whether any subcontractor has its principal place of business in the City or whether any laborer resides in the City, the Developer and the Executive Director shall proceed in good faith to resolve the dispute. In the event the dispute is not resolved within ten (10) days either party may submit the dispute to the Board for resolution which shall be binding on the parties. 6.3 Report Requirements. The Developer shall be required to submit to the Executive Director on a monthly basis commencing upon the earlier to occur of (i) thirty (30) days after commencement of demolition of the existing improvements or (ii) the commencement of construction of the Project, detailed reports evidencing compliance with the Subcontractor Participation Requirements and the Laborer Participation Requirements during the prior thirty (30) day period ("Participation Reports"). The Participation Reports shall contain such information as the Executive Director may reasonably require to enable the Executive Director to determine whether the Developer is in compliance with the Subcontractor Participation Requirements and the Laborer Participation Requirements, including details of the priority procedure established. 6.3.1 Penalties for Non -Compliance with Subcontractor Participation Requirements. 6.3.1.1 To the extent Developer fails to comply with the Subcontractor Participation ReguirementsRequirement, with respect to the Project utilizing only subcontractors whose principal place of business is within the Redevelopment Area, Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area for the first three (3) percentage points below the Subcontractor Participation Requirement, (b) Twelve Thousand Five Hundred Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area for up to three (3) additional percentage points and 5 Submitted into the public record in connection with Item Son 7-.17-/." Todd B. Hannon Clerk of the Board thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below six (6%) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area (collectively, the "RA Subcontractor Non -Compliance Funds"). The RA Subcontractor Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due and .a able within thirt 30 da s from the date of the Developer's receipt of written statement from the Executive Director stating the amount of RA Subcontractor Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding on the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay to the CRA pursuant to this Section 6.3.1.1. 6.3.1.2 To the extent Developer fails to comply with the Subcontractor Participation Requirement, with respect to the Project utilizing subcontractors whose principal place of business is either in the Redevelopment Area or the Overtown community, Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area or in the Overtown community for the first three (3) percentage points below the Subcontractor Participation Requirement, (b) Twelve Thousand Five Hundred Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area or in the Overtown community for up to three (3) additional percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below six (6%) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is located in the Redevelopment Area or the Overtown community (collectively, the "RA/O Subcontractor Non -Compliance Funds"). The RA/O Subcontractor Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due and payable within thirty (30) days from the date of the Developer's receipt of written statement from the Executive Director stating the amount of RA/O Subcontractor Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Subcontractor Participation Requirements utilizing only subcontractors whose principal place of business is located in the Redevelopment Area or the Overtown community, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding on the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay to the CRA pursuant to this Section 6.3.1.2. 6 Submitted into the public record in connection with Item _ on 7 -a 7- f 5 Todd B. Hannon Clerk of the Board 6.3.1.3 To the extent Developer fails to comply with the Subcontractor Participation Requirement, with respect to the Project utilizing subcontractors whose principal place of business is in the Redevelopment Area, the Overtown community or in the CRA Targeted Zip Codes, Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area, in the Overtown community or in the CRA Targeted Zip Codes for the first three (3) percentage points below the Subcontractor Participation Requirement, (b) Twelve Thousand Five Hundred Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the Redevelopment Area, the Overtown community or in the CRA Targeted Zip Codes for up to three (3) additional percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below six (6%) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is located in the Redevelopment Area, the Overtown community or in the CRA Targeted Zip Codes (collectively, the "Target Subcontractor Non -Compliance Funds"). The Target Subcontractor Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due and payable within thirty (30) days from the date of the Developer's receipt of written statement from the Executive Director stating the amount of Target Subcontractor Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Subcontractor Participation Requirements utilizing only subcontractors whose principal place of business is located in the Redevelopment Area or the Overtown community, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding on the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay to the CRA pursuant to this Section 6.3.1.3. 6.3.1.4 To the extent Developer fails to comply with the Subcontractor Participation Requirement, with respect to the Project utilizing subcontractors whose principal place of business is the City, Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the City for the first three (3) percentage points below the Subcontractor Participation Requirement, (b) Twelve Thousand Five Hundred Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Subcontractor Participation Requirement utilizing only subcontractors whose principal place of business is within the City for up to three (3) additional percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below six (6%) percentage points below the Subcontractor Participation Requirement utilizing 7 Submitted into the public record in connection with Item ; on 7-a7-/J Todd B. Hannon Clerk of the Board only subcontractors whose principal place of business is located in the City (collectively, the "Subcontractor Non -Compliance Funds"). The Subcontractor Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due and payable within thirty (30) days from the date of the Developer's receipt of written statement from the Executive Director stating the amount of Subcontractor Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Subcontractor Participation Requirements utilizing only subcontractors whose principal place of business is located in the Redevelopment Area or the Overtown community, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding on the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay to the CRA pursuant to this Section 6.3.1.6.3.1.4. 6.3.2 Penalties for Non -Compliance with Laborer Participation Requirements. 6.3.2.1 To the extent Developer fails to comply with the applicable Laborer Participation RequirementsRequirement, with respect to the Project, utilizing only unskilled laborers who reside in the Redevelopment Area Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area for the first feurthree (4) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area, (b) Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00) for each additional percentage point below the first feurthree (43) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area for up to feurthree (4) percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below the eight (8six(6) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area (collectively, the "RA Laborer Non -Compliance Funds"), The RA Laborer Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due within thirty (30) days from Developer's receipt of written statement from the Executive Director stating the amount of RA Laborer Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Laborer Participation Requirements utilizing only unskilled laborers residing in the Redevelopment Area, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding upon the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay the CRA pursuant to this Section 6.3.2.1. 6.3.2.2 To the extent Developer fails to comply with the applicable Laborer Participation Requirement, with respect to the Project, utilizing only unskilled 8 Submitted into the public record in connection with Item 5 on 7-.2 7-IS Todd B. Hannon Clerk of the Board laborers who reside in the Redevelopment Area and the Overtown community Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area or in the Overtown community for the first three (3) percentage points below the Laborer Participation Requirement, (b) Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area or in the Overtown community for up to three (3) percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below the six(6) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area or in the Overtown community (collectively, the "RA/0 Laborer Non -Compliance Funds"). The RA/0 Laborer Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due within thirty (30) days from Developer's receipt of written statement from the Executive Director stating the amount of RA/0 Laborer Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Laborer Participation Requirements utilizing only unskilled laborers residing in the Redevelopment Area and in the Overtown community, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding upon the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay the CRA pursuant to this Section 6.3.2.2. 6.3.2.3 To the extent Developer fails to comply with the applicable Laborer Participation Requirement, with respect to the Project, utilizing only unskilled laborers who reside in the Redevelopment Area, the Overtown community or in the CRA Targeted Zip Codes, Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area , in the Overtown community or in the CRA Targeted Zip Codes for the first three (3) percentage points below the Laborer Participation Requirement, (b) Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area, in the Overtown community or in the CRA Targeted Zip Codes for up to three (3) percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below the six(6) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the Redevelopment Area, in the Overtown community or in the CRA Targeted Zip Codes (collectively, the "Targeted Laborer Non -Compliance Funds"). The Targeted Laborer Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be 9 Submitted into the public record in connection with Item •`= on 7-27-b Todd B. Hannon Clerk of the Board due within thirty (30) days from Developer's receipt of written statement from the Executive Director stating the amount of Targeted Laborer Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Laborer Participation Requirements utilizing only unskilled laborers residing in the Redevelopment Area, in the Overtown community or in the CRA Targeted Zip Codes, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding upon the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay the CRA pursuant to this Section 6.3.2.3. 6.3.2.4 To the extent Developer fails to comply with the applicable Laborer Participation Requirement, with respect to the Project, utilizing only unskilled laborers who reside in the City Developer shall pay to the CRA as a penalty for such non-compliance (a) Five Thousand and No/100 Dollars ($5,000.00) for each percentage point below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the City for the first three (3) percentage points below the Laborer Participation Requirement, (b) Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00) for each additional percentage point below the first three (3) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the City for up to three (3) percentage points and thereafter, (c) Twenty Five Thousand and No/100 Dollars ($25,000.00) for each additional percentage point below the six(6) percentage points below the Laborer Participation Requirement utilizing only unskilled laborers who reside in the City (collectively, the "Laborer Non -Compliance Funds"). The Laborer Non -Compliance Funds shall be calculated by the Executive Director after completion of the Project and shall be due within thirty (30) days from Developer's receipt of written statement from the Executive Director stating the amount of Laborer Non -Compliance Funds due. To the extent of any dispute between the Executive Director and the Developer with respect to the compliance with the Laborer Participation Requirements utilizing only unskilled laborers residing in the City, such dispute shall be submitted to the CRA Board for resolution. The decision of the CRA Board shall be binding upon the parties. The Executive Director, in his sole discretion, may elect to waive all or a portion of the amount the Developer is required to pay the CRA pursuant to this Section 6.3.2." 6.3.2.4." 21. Job Fair. Developer covenants and agrees to broadly disseminate information regarding job opportunities for local area residents and businesses to allow them to participate in construction of the Project, including, without limitation, hosting at least two (2) job fairs within the Redevelopment Area, prior to the commencement of construction of the Project and place at least four (4) full page color ads in the Miami Times disseminating information regarding job opportunities for local area residents and businesses to participate in the construction of the Project prior to the commencement of construction of the Project. 22. Responsible Wage Rates. 10 Submitted into the public record in connection with Item 5 on 7-9.7-/5 Todd B. Hannon Clerk of the Board A. Responsible Wage Requirement. With respect to the Project the Developer shall require its general contractor and all subcontractors and sub -subcontractors, at all levels, performing work in connection with the Project to pay a minimum hourly wage rate and health benefits consistent with Miami -Dade County's Responsible Wage Ordinance, as codified in Section 2-11.16 of the County Code and the Supplemental General Condition Wage & Benefits Schedule, Construction Type: Building (the "Responsible Wage"), as the same may be revised by the County annually, which Responsible Wage shall be deemed to apply to the Project. The Developer shall require that its general contractor include in each subcontract the requirement that such subcontractor pay the Responsible Wage to all employees working on the Project. Each sub -subcontractor, at all levels, shall also be obligated to pay the Responsible Wage to all employees working on the Project. B. Failure to Comply with Responsible Wage. In the event that the general contractor and all subcontractors and sub -subcontractors, at all levels, fail to pay the Responsible Wage to any part-time or full-time employees working on the Project, which failure is reported to the Executive Director, the Executive Director shall investigate and if the Executive Director, based upon its investigation confirm such non-compliance with the Responsible Wage requirement, and that same was not a de minimis miscalculation of the Responsible Wage, the Developer shall pay to the underpaid employee(s) as a penalty for non-compliance the entire amount of wages calculated at the Responsible Wage that such employee would have earned during his or her employment during construction of the Project without any credit being given for the payments made to such employee which did not comply with the Responsible Wage requirement of this Section. By way of example, and without limitation, an unintentional bookkeeping error or a miscalculation resulting from a change in the Responsible Wage set by the County during the course of employment shall be considered a de minimis miscalculation. such amount shall be due to the underpaid employee(s) within thirty (30) days after written demand from the Executive Director. This provision shall survive the Closing. 23. Monitoring Compliance. Developer acknowledges that pursuant to Section 3.8(B) of the Development Agreement the Project Budget is to include a Seventy Five Thousand and No/100 Dollars ($75,000.00) line item to be utilized solely to pay third parties retained by the CRA to assist in monitoring compliance with the terms of the Development Agreement and overseeing construction on behalf of the CRA. 24. 23. Ownership Interest in Developer. Exhibit H to the Development Agreement is hereby deleted and replaced by Exhibit "H" attached hereto and made a part hereof. 25. 24. Guaranty. Section 10.2.4 of the Development Agreement is hereby amended to provide that the Guaranty shall be provided by James R. Watson, individually, BCP Development, LLC, a Massachusetts limited liability company, St John CDP-BC Developer, LLC, a Florida limited liability company and James R. Watson Revocable Trust 2014. 26. 25. Assignability. Section 15 is hereby amended by adding the following language to the end of such Section: "Notwithstanding the foregoing, the following transfers will not be deemed an assignment or transfer requiring the prior consent of CRA: (i) a transfer by the Institutional 11 Submitted into the public record in connection with Item Son 7-?-7-15 Todd B. Hannon Clerk of the Board Investor of its interest in the Developer in accordance with the Operating Agreement, or (ii) the removal and replacement of the manager of the Developer by the Institutional Investor in accordance with the terms of the Operating Agreement provided that such replacement manager is an affiliate of the Institutional Investor and notice of such removal is provide to CRA." 27. 26. Notices. Section 16 of the Development Agreement is hereby amended and restated to read as follows: "16. NOTICES. Any notices required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier (such as Federal Express), sent by fax or mailed by certified or registered mail, return receipt requested, in a postage prepaid envelope, and addressed as follows: If to Developer: With a copy to: With a copy to: And to: With a copy to: SJP Apartments, LLC 340 West Flagler Street, Suite 312 Miami, Florida 33131 Attention: James Watson Squire Patton Boggs 200 South Biscayne Blvd., Suite 4700 Miami, FL 33131 Attention: Thomas V. Eagan, Esq. Fax: 305-577-7001 Boston Capital Corporate Tax Credit Fund XL, A Limited Partnership One Boston Place Boston, MA 02108 Attn: Asset Management Nixon Peabody LLP 100 Summer Street Boston, MA 02110 Attn: John Condon Stearns Weaver Miller Weissler Alhadeff and Sitterson, P.A. 150 West Flagler Street, Suite 2200 Miami, FL 33130 Attention: Brian McDonough, Esq. Fax: 305-789-3395 12 Submitted into the public record in connection with Item ,2on 7-e27-15-- Todd B. Hannon Clerk of the Board And with a copy to: Legal Services of Greater Miami 3000 Biscayne Boulevard, Suite 500 Miami, Florida 33137 Attention: Shahrazd Emani Fax: 305-576-5112 If to CRA: With a copy to: SOUTHEAST OVERTOWN / PARK WEST COMMUNITY REDEVELOPMENT AGENCY Attention: Clarence E. Woods, III, Executive Director 819 NW 2nd Avenue Third Floor Miami, FL 33136 Fax: 305-679-6836 William R. Bloom, Esq. Holland & Knight, LLP Suite 3000 701 Brickell Avenue Miami, FL 33131 Fax: 305-789-7799 And with a copy to: Staff Counsel Southeast Overtown/Park West Community Redevelopment Agency 819 NW 2nd Avenue Third Floor Miami, FL 33136 Fax: 305-679-6836 Notices personally delivered or sent by fax shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing shall be deemed given upon receipt or the date delivery is refused." 28. 27. Cured By Institutional Investor. CRA agrees that any default by Developer under the Development Agreement may be cured by the Institutional Investor within the same cure period as provided to Developer. 29. 28. Ratification. Except as hereby modified, the CRA and Developer hereby ratify and reaffirm all the terms and provisions of the Development Agreement. 30. 29). Condemnation Litigation. The CRA was awarded Two Hundred Twenty -Five Thousand and No/100 Dollars ($225,000.00) (the "CRA Award") in that case styled State of Florida Department of Transportation , as Petitioner vs. St. John Institutional Missionary Baptist Church, Inc., et al., as Defendants, Case No. 13-33596-CA-23 pending in the 11`h Judicial Circuit in and for Miami -Dade County, Florida (the "Condemnation Proceeding"). St. John Institutional Missionary Baptist Church, Inc. (the "Church") has appealed the CRA Award. If the CRA Award 13 Submitted into the public record in connection with Item 5 on 7-.27-15 Todd B. Hannon Clerk of the Board has not been paid to the CRA on or before the Closing Date, then on the Closing Date Developer shall deposit into escrow with an escrow agent acceptable to the CRA and Developer (the "Escrow Agent") Two Hundred Twenty -Five Thousand and No/100 Dollars ($225,000.00) (the "Escrowed Funds"). The Escrow Agent shall hold the Escrowed Funds until the earlier to occur of (i) the date the CRA Award becomes final in which case the Escrow Agent shall pay the Escrowed Funds to the Developer; or (ii) the date the CRA Award is overturned on appeal in which event the Escrow Agent shall pay the Escrowed Funds to the CRA. The form of the escrow agreement shall be subject to the approval of the Executive Director, which approval shall not be unreasonably withheld. The obligation of the CRA to close the transaction contemplated by the Development Agreement is expressly subject to the Developer depositing the Escrowed Funds with Escrow Agent and the Executive Director's approval of the Escrow Agent and the terms of the escrow agreement, if the CRA Award is not final as of the Closing Date. 31. 30. Wi-Fi. The Developer covenants and agrees to provide free wireless internet service at the highest available residential speed to all residential units of the Project at no cost to the residents. This obligation shall constitute a covenant running with the land and this obligation shall be included in the special warranty deed to the Developer. 32. 31. Conflict. To the extent of a conflict between the terms and provisions of this Amendment and the terms and provisions of the Development Agreement, the terms and provisions of this Amendment shall control. 14 Submitted into the public record in connection with Item 5 on 7`../ 7-15 Todd B. Hannon Clerk of the Board IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above -written. DEVELOPER: SJP APARTMENTS, LLC, a Florida limited liability company By: SJP Apartments MM, LLC, a Florida limited liability company, its Manager By: St. John CDP-BC MM, LLC, a Florida limited liability company, its manager By: BCP SJP, LLC, a Florida limited liability company By: Name: Title: 15 Submitted into the public record in connection with Item 5 on 7'a 7-1 Todd B. Hannon Clerk of the Board CRA: SOUTHEAST OVERTOWN / PARK WEST COMMUNITY REDEVELOPMENT AGENCY By: Clarence E. Woods, III., Executive Director ATTEST: Approved for legal sufficiency Clerk of the Board 16 By: William R. Bloom, Esq. Holland & Knight LLP, Special Counsel to CRA Submitted into the public record in connection with Item 5 on 7-Z 7-15 Todd B. Hannon Clerk of the Board JOINDER The undersigned joins in this Amendment to confirm their agreement to provide the Guaranty. James R. Watson, individually St. John CDP-BC Developer, LLC a Florida limited liability company By: SJP Development Holdings, LLC, a Massachusetts limited liability company its Manager By: BCP SJP Developer, LLC, a Massachusetts limited liability company its Manager By: Boston Capital Companion Limited Partnership, a Massachusetts limited partnership, its sole member By: Boston Capital Partners II Corporation, a Massachusetts corporation, its sole general partner By: Name: Title: BCP Development, LLC, a Massachusetts limited liability company By: Name: Title: 17 Submitted into the public record in connection with Item 5 on 7-P 7-15 Todd B. Hannon Clerk of the Board James R. Watson Revocable Trust 2014 By: Name: James R. Watson Title: Trustee 18 Submitted into the public record in connection with Item 5 on 7-017-/5 Todd B. Hannon Clerk of the Board Joinder The undersigned joins in this Amendment for the purpose of agreeing to satisfy the Existing Mortgage at Closing. St John Community Development Corporation, a Florida corporation By: Name: Title: Date Executed: 19 Submitted into the public record in connection with Item 5_on 7-?7-15 Todd B. Hannon Clerk of the Board Exhibit "A" Copy of Assignment of Development Agreement 20 Submitted into the public record in connection with Item 5 on 7-a7- )J Todd B. Hannon Clerk of the Board ASSIGNMENT OF DEVELOPMENT AGREEMENT THIS ASSIGNMENT OF DEVELOPMENT AGREEMENT is made as of this day of April, 2015 by and between ST. JOHN PLAZA APARTMENTS, LLC, a Florida limited liability company (the "Original Developer") and SJP APARTMENTS, LLC, a Florida limited liability company (the "New Developer"). RECITALS A. Original Developer and the Southeast Overtown/Park West Community Redevelopment Agency, a body corporate created pursuant to Section 163.356, Florida Statues (the "CRA") entered into that certain Development Agreement dated as January 18, 2013 (the "Development Agreement"). B. Original Developer has agreed to assign its interest in the Development Agreement to New Developer, and New Developer has agreed to assume all of the rights and obligations of Original Developer under the Development Agreement. NOW THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Recitals. The Recitals to this Assignment are true and correct and are hereby incorporated by reference and made a part hereof. 2. Defined Terms. All defined terms utilized in this Assignment but not defined herein shall have the meanings ascribed to said terms in the Development Agreement. 3. Assignment and Assumption. Original Developer hereby assigns, transfers, and conveys unto New Developer all of its right, title and interest in and to the Development Agreement. New Developer hereby accepts the assignment of the Original Developer's interest in the Development Agreement, assumes the obligations of Original Developer thereunder, ratifies and confirms the Development Agreement and all amendments thereto, and agrees to be bound by all of the terms and conditions of the Development Agreement. SIGNATURES APPEAR ON FOLLOWING PAGE 21 Submitted into the public record in connection with Item i on 7-.07-/5 Todd B. Hannon Clerk of the Board IN WITNESS WHEREOF, we have executed this Assignment of Development Agreement effective as of the day of , 2015. ORIGINAL DEVELOPER: ST. JOHN PLAZA APARTMENTS, LLC, a Florida limited liability company By: NEW DEVELOPER: SJP APARTMENTS, LLC, a Florida limited liability company By: SJP Apartments MM, LLC, a Florida limited liability company, its Manager By: St. John CDP-BC MM, LLC, a Florida limited liability company, its manager By: BCP SJP, LLC, a Florida limited liability company, its manager 22 By: Name: Title: Submitted into the public record in connection with Item 5 on 7-,17-15 Todd B. Hannon Clerk of the Board Exhibit "B" Description of Schematic Design Documents Prepared by Corwil Architects dated November 18, 2014, last revised April , 2015, under Job Number 2011-17 under File Number 200-17 consisting of Sheets A-0.01, A-0.02, A-1.00 through A-1.04, and A-2.00 [NEEDS TO BE UPDATED] 23 Submitted into the public record in connection with Item 5 on 7-427-/5 Todd B. Hannon Clerk of the Board Exhibit "C" Proposed Budget [MUST BE UPDATED TO REFLECT $75,000 TO BE PAID AS DIRECTED BY CRA] 24 Submitted into the public record in connection with Item • on 7'.27-/ 5 Todd B. Hannon Clerk of the Board St. John Plaza Apts 90 units LIHTC (09-18-14).xls St. John Plana Apartments • Muni, FL 90 units LIHTC Housing Sources & three (during construction and lease -up) Sources Rot Permanent Phase Total % Per Unit Pre -Penn Funding Total % Per Unit Debt - Predevetopment Loan 0 0.00% • 647,400 2.88% 7,193 Ctmsbuation Loan/ Tex Exempt Bond Proceeds 0 0.00% - 7,543,803 31.22% 83,820 Fbst Manage 2,300,000 9.49% 25,556 0 0.00% - Surtac Z700,000 11.14% 30,000 0 0.00% - Ouertmtm CRA Grant 10,000,000 41.24% 111,111 10,000,000 41.39% 111,111 Trot Credt Equity - 0 - UHTC LP Equity $0.95 41.00 of L1HTC 8,547,000 3525% 94.967 5,969,036 24.71% 66,323 Deferred Developer Fee 20.00% of Dev. Fee 700,238 2.8996 7,780 0 0.0016 - Totai Sources 24,247,238 100.00% 289,414 24,160,239 100.00% 268,447 Uses Total % Per Unit Total % Per Unit Harp Cmabudlon Costs 11,123,398 45.87% 1230593 11,123,398 45.95% 123,593 GC Pre 6.0% 667,44)4 2.75% 7,416 667,404 2.769t, 7,416 GC General Rtrenls 6.0% 667,404 2.75% 7A16 667,404 2.76% 7,416 GC Overhead 2.0% 249,164 1.03% 2,768 249,164 1.03% 2,768 Recreational / Omer items 225,000 0.93% 2,500 225,000 093% 2,500 Off-$8e Improvements 100,000 0.41% 1,111 100,000 0.41% 1,111 Hard Cost C0nt9genyy @: 5.0% 556,170 2.2916 6,180 556,170 2.30% 6,180 Community Support 9,0006E ® $100 /SF 900,000 3.71% 10,000 900,000 3.72% 10,000 BaM!Consdn n Interest Exp @ 6.50% Interest 732,818 3.02% 8,142 691,953 2.86% 7,688 Bond Origination Fee 2.0% 150,876 0.62% 1,676 150,876 0.62% 1,676 Band Closing Costs 0.0% 23,344 0.10% 259 23,344 0.10% 259 Construstim Loan Origination Fee 1.5% 113,157 0.47% 1,257 113,157 0.47% 1,257 Non -Profit Loan Fee 150,00D 0.62% 1,667 150,000 0.62% 1,667 Costs of Issuance 130,300 0.54% 1,448 130,300 0.54% 1 A48 Other Loan Cloning Costs 13,600 0.06% 150 13,500 0.06% 150 Operating De8dt Reserve (6 months expense +debt) 366,023 1.51% 4,087 366,023 1.51% 4,067 Accounting Fees 10,000 0.04% 111 10,000 0/34% 111 App6Cation Fees 3,000 0.01% 33 3.000 0.01% 33 Appraisal 20,000 0,08% 222 20,000 0.08% 222 Architect Fee -Design/ LEE) 4.0% 444,936 1.83% 4,944 444,936 1.84% 4,944 Ardhttect Fee-Supmvielm 0.5% 155,617 0.64% 1,729 155,617 0.64% 1,729 Bwlder's Risk insurance 1.00% 111,234 0.46% 1,236 111234 0.4696 1,236 Buldag Permit 51.500 han3 135,000 0.56% 1,500 135,000 0.56% 1.500 Credit UndenvnlIng Fee 15,015 0.06% 167 15,015 0.06% 167 Engineering Fee 49,500 0.20% 550 49,500 0.20% 550 Environmental Repot 25,000 0.10% 278 25,000 0.10% 278 FHFC Adminisba5ve Fees 16,880 0.07% 188 16,880 0.07°% 1 >: FHFC Applcation Fees 5.000 0.02% 58 5,000 0.02% 56 FHFC Compliance Mon. Fee 68,487 0.2896 761 68,487 028% 761 Permanent Riming Fee 2.00% 46,000 0.19% 511 46,000 0.19% 511 impact Fees (Detail) $8,653 /unit 778,746 3.21% 8,653 778,746 32216 8,853 Inspedien Fees 150,000 0.62% 1,667 150,000 092% 1,667 insurance- Property/Liability 51,000limit 90,000 0.37% 1,000 90,000 0.37% 1,000 Legal Fees Partnership 350,900 1.44% 3,889 350,000 1.45% 3,889 Legal Fees- Other 55,000 023% 611 55,000 023% 611 Market Study 4,500 0.02% 50 4,500 0.02% 50 Marketng!Advertsirg 51,667 /unit 150,000 0.62% 1,667 150,000 0.62% 1,667 Working Capifat Reserve 67,572 0.28% 751 67,572 0.28% 751 Property Tams (Constnraim) 81,000 0.33% 900 81,000 0.33% 900 Sot Test Report 25,000 0.10% 278 25,000 0.10% 278 Survey(mdutimg es.bual) 25,000 0.10% 278 25,000 0.10% 278 Tlile Insurance & Retarefng 0.57% 134,066 0.55% 1,490 134,066 0.55% 1,490 Unity Connector Fee $2,100 Ant 189,000 0.78% 2,100 189,000 0.78% 2,100 Contingency (Sod Cost) 2A% 76,938 0.32% 855 76,938 0.32% 855 Sub -Total 19,451,049 216,123 19,410,184 215,669 Land lease Payment 1295,000 5.34% 14,389 1,295,000 5.35% 14,389 Doveioper'sAdmin. 8Overhead 4.0% 778,042 321% 8,645 778,042 321% 8.645 Developer Fee 14.00% 2,723,147 112366 30,257 2,723,147 11.25% 30,257 Total Project Cost 18.0% 21,247,738 100.00% 26,414 24,206,373 100.00% 268,960 F1rlanchng Dap surphrd(shorq 0 46,134 25 Submitted into the public record in connection with Item on 7-a7-b Todd B. Hannon Clerk of the Board Exhibit "D" Project Schedule [MUST SHOW 14 MONTH CONSTRUCTION SCHEDULE] 26 Submitted into the public record in connection with Item 5 on 7-027 -15 Todd B. Hannon Clerk of the Board Exhibit "E" Form of funding agreement previously approved by Executive Director 27 Submitted into the public record in connection with Item 5 on 7-P 7-15 Todd B. Hannon Clerk of the Board Exhibit "F" NON-PROFIT GRANT AGREEMENT 28 Submitted into the public record in connection with Item don 7-e27-/5 Todd B. Hannon Clerk of the Board Exhibit "G" Non -Profit Loan Documents and MM Loan Documents 29 Submitted into the public record in connection with Item 5_ on 7-,-2 7-'3 Todd B. Hannon Clerk of the Board Exhibit "H" OWNERSHIP INTEREST SJP Apartments, LLC SJP Apartments MM, LLC (.01 % membership interest) and managing member ST John CDP-BC MM, LLC 75% membership interest and managing member BCP SJP, LLC 50% membership interest and managing member Entity owned or controlled by Boston Capital #35316967_v(7 BCCC, Inc. (0% Special Member Interest) Boston Capital controlled entity or Boston Capital Corporate Tax Credit Fund XL, A Limited Partnership (99.99% membership interest) St John Community Development Corporation, Inc., or its wholly owned subsidiary, 25% membership interest James R. Watson Revocable Trust 2014 50% membership interest 30 Submitted into the public record in connection with Item 5_ on 7- Q1 1.5 Todd B. Hannon Clerk of the Board Document comparison by Workshare Compare on Monday, July 27, 2015 5:29:23 PM Input: Document 1 ID interwovenSite://HKDMS/Active/35316967/6 Description #35316967v6<Active> - 7-23-15 AMENDMENT 2 to St John Plaza Development Agremeent Document 2 ID interwovenSite://HKDMS/Active/35316967/7 Description #35316967v7<Active> - 7-27-15 AMENDMENT 2 to St John Plaza Development Agremeent Rendering set Standard Legend: Insertion Deletion Moved -ram Moved to Style change Format change wed- defe-t i Inserted cell Deleted cell Moved cell Split/Merged cell Padding cell Statistics: Count Insertions 39 Deletions 24 Moved from 0 Moved to 0 Style change 0 Format changed 0 Total changes 63 Submitted into the public record in connection with Item 5 on 7-,L7'I5 Todd B. Hannon Clerk of the Board