TO: Mayor and Commissioners
FROM: Noel Pfeffer, City Attorney
DATE: January 5, 2016
Title
APPROVAL OF TERMINATION OF LAND USE RESTRICTION AGREEMENT AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO EXECUTE, AS APPROPRIATE, SATISFACTIONS OF MORTGAGES, AND OTHER REQUIRED CITY DOCUMENTS IN CONNECTION WITH THE SALE OF AUBURN TRACE APARTMENTS
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Recommended Action:
Recommendation
Motion to approve a Notice Of Termination of the June 29, 1989 Land Use Restriction Agreement for the Auburn Trace Apartments and to authorize the City Manager to execute Satisfactions of Mortgages and to authorize the City Attorney and City Manager to execute closing documents in connection with the sale of the Auburn Trace Apartments.
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Background:
The sale of the Auburn Trace apartments is presently scheduled for mid-January. In connection with the closing, Buyer and Sellers counsel have requested Satisfactions of Mortgages for the City first and second mortgages and a Notice of Termination of the City’s Land Use Restriction Agreement (“LURA”). The Satisfactions and Notice of Termination of the LURA will not be delivered to the Buyer and Seller until closing and only on the condition that the City receives all sums due pursuant to the bankruptcy proceedings for the first and second mortgages.
The property for the Auburn Trace Apartments is currently subject to two (2) Land Use Restriction Agreements.
Delray Beach LURA:
One of the terms of the 1989 UDAG grant required the owner of Auburn Trace to agree to certain land use restrictions which required the property to be developed as multifamily residential affordable housing. The City and owner recorded a LURA in June 1989 which required not less than 51% of the apartment units to be occupied by low or moderate income persons. The term of the LURA is until all UDAG requirements have been satisfied and the later of 15 years or the date the loan is paid in full. The City and HUD ...
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