CITY OF ORLANDO
COUNCIL AGENDA ITEM


Items Types:
Housing
For Meeting of:
November 9, 2020
District: 6 From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Subject:
Subordination Agreement of Community Development Block Grant (CDBG) loan between the City of Orlando, Grandbridge Real Estate Capital, and West Lakes Phase I

Summary:

On October 26, 2015, the City of Orlando entered into a Community Development Block Grant agreement with Lift Orlando, Inc. and LIFT Orlando Community Land, LLC ("LOCL") to support the demolition of the environmentally contaminated, dilapidated, vacant and boarded up apartment buildings located at 2021 Orange Center Blvd., so Pendana, a new affordable housing complex, could be built. The principal amount for this loan was $1,250,000. The CDBG loan and Restrictive Covenant stipulated a five-year affordability period, which will expire on December 31, 2023. LOCL entered into a ground lease with West Lakes Phase I to provide affordable housing.

West Lakes Phase I is refinancing its mortgage for Pendana and the lender, Grandbridge Real Estate Capital LLC, is requiring the City to subordinate its loan position. The permanent loan is approximately Ten Million Dollars ($10,000,000). The property is currently 97.5% leased and maintains a waiting list. The property's appraised value as of September 17, 2020 is $16,700,000. As a junior lien mortgage holder, it is possible the City would not be repaid if the property were to go into foreclosure between now and December 31, 2023.


Fiscal & Efficiency Data: No fiscal impact.

Recommended Action:
Approving and authorizing the Mayor and City Clerk to execute the Subordination Agreement of the CDBG loan between the City of Orlando, West Lakes Phase I, and Grandbridge Real Estate Capital, after review and approval by the City Attorney's office.  Authorizing the Mayor to satisfy the mortgage and release of restrictive covenant upon compliance with the terms of the CDBG agreement and other loan documents.


Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: Sonia Carnaval, Housing & Community Development Manager, 407-246-3326; Sonia.Carnaval@cityoforlando.net
Approved By:

Department Date and Time
Budget Outside Routing Approval 10/28/2020 10:28 AM
Budget Outside Routing Approval 10/28/2020 10:28 AM
Grants 10/28/2020 10:33 AM
City Clerk 10/29/2020 3:10 PM

ATTACHMENTS:
Name: Description: Type:
Subordination_Agreement_LIFT_City_CDBG_Mortgage_Community_Land_(Conventional)_6414_.docx Subordination Agreement LIFT Backup Material

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