05 Jun Summary Review of Agenda Items for MDHA’s June 9, 2020 Board Meeting
EXECUTIVE (HARBISON & THILTGEN)
6a. GMP and Financing for Red Oak Townhomes
At the June 4th Joint Finance and Development Committee meeting, the Committee approved the Guaranteed Maximum Price (GMP) and financing for Red Oak Townhomes, the next phase of Envision Cayce. When complete, Red Oak Townhomes will have 44 units in a mixed income community with 25 affordable housing town homes funded by a HUD Project Based Rental Assistance (PBRA) contract.
At its meeting on November 12, 2019, the Board approved R.G. Anderson Company, Inc., as the Construction Manager at Risk for Red Oak Townhomes. R.G. Anderson has proposed a GMP of $13,216,132 based on 100% Construction Documents provided by EOA Architects. With all soft costs included, to include a 5.4% Owner’s Contingency ($719,059) and Architect’s fees of $957,068, the Total Project Budget is $16,550,000.
Red Oak Townhomes will be financed by a $10,600,000 loan from Franklin Synergy Bank (including a $6 million CITC note and a $4.6 million conventional bank note), together with grant proceeds from the Metro Government’s Capital Spending Plan. This will be a mixed-financed development with 25 of the units initially constructed as public housing, but later converted through RAD to Project-Based Rental Assistance. The proposed Resolution approves the financing structure and authorizes the Agency to execute such agreements with HUD as may be required to carry out the mixed-finance project and then to convert the public housing units to Project-Based Rental Assistance.
As recommended in the Joint Finance and Development Committee meeting, the Board is requested to approve the financing, R.G. Anderson’s GMP, the Architect’s fees, and the Owner Contingency for Red Oak Townhomes, and to provide the Executive Director the authority to execute the associated documents.
6b. GMP and Financing for Trolley Barns
At the June 4th Joint Finance and Development Committee meeting, The Committee approved the GMP and financing for the Trolley Barns Parking Garage at Rolling Mill Hill. The garage will be 5 stories with 378 parking spaces.
At its meeting on November 12, 2019, the Board approved R. C. Mathews Contractor as the Construction Manager at Risk for the Trolley Barns Parking Garage. R. C. Mathews Contractor has proposed a GMP of $12,380,088.00 based on 85% Construction Drawings prepared by Kline Swinney Associates. With all soft costs, the Total Project Budget is $14,215,617.00 including a 5% Owner’s Contingency ($617,500).
The Trolley Barns Garage will be financed in part by a $11,900,000 construction financing loan from Pinnacle Bank. Additional sources for this project include $2,000,000 in unrestricted funds from MDHA.
The Board is requested to approve financing, R. C. Mathews Contractor’s GMP and the Owner Contingency for the Trolley Barns Parking Garage; and to authorize the Executive Director to execute the associated contractual and financing documents. The proposed Resolution approves the financing structure and authorizes the Agency to execute such agreements with Pinnacle Bank.
6c. Approval of Substantial Amendment to the 2019 Action Plan (CARES Act funding)
The June 9th Joint Finance and Development Committee meeting will review the Substantial Amendment to the 2019 Action Plan for CARES Act Funding. Nashville – Davidson County received initial allocations of $3,125,875 in Community Development Block Grant-Coronavirus; $1,549,066 in Emergency Solutions Grant-Coronavirus; and $225,186 in Housing Opportunities for Persons with Aids-Coronavirus funding through the CAREs Act legislation to be used to prevent, prepare for and mitigate the impacts of the COVID-19 Pandemic. HUD advised MDHA to amend the latest approved Action Plan to incorporate eligible activities to use these funds to respond to the COVID-19 outbreak. Subject to Committee approval, Board approval is requested for substantial amendments to the 2019 Action Plan and 2018-2023 Consolidated Plan to allocate CARES Act funding to eligible projects/activities for use in preventing, preparing for and mitigating the impacts of the COVID-19 Pandemic.