RESOLUTION NO. RS2000-298

A resolution authorizing the execution of a Cooperation Agreement between The Metropolitan Government of Nashville and Davidson County and the Metropolitan Development and Housing Agency.

WHEREAS, the Metropolitan Government adopted Resolution No. 99-1553 on May 18, 1999 supporting a HOPE VI Revitalization Grant for the Preston Taylor Homes; and

WHEREAS, pursuant to the Tennessee Housing Authorities Act, the Metropolitan Government has heretofore executed cooperation agreements with the Metropolitan Development and Housing Agency (the "Agency") in support of low-rent housing projects funded by the federal government and administered by the Agency; and

WHEREAS, the Agency received a HOPE VI Implementation Grant from the Department of Housing and Urban Development for the revitalization of the Preston Taylor Homes for the construction of up to 310 new affordable rental housing units at the site; and

WHEREAS, the Metropolitan Government is desirous of assisting and cooperating with the Agency in such undertaking by entering into a Cooperation Agreement, a copy of which is attached hereto as Exhibit "A" (the "Cooperation Agreement");

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. The Metropolitan Government is authorized to enter into the Cooperation Agreement with the Agency, by which it undertakes to furnish to the Agency and the Project residents the same type and level of public services and facilities that are provided without cost or charge to other dwellings and inhabitants of the community at large, and the Metropolitan Mayor is authorized to execute such an agreement.

Section 2. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Edward Whitmore, Chris Ferrell, Tony Derryberry

COOPERATION AGREEMENT

(Preston Taylor Homes)

This Cooperation Agreement (the Agreement) entered into this _____ day of _________, 2000, by and between METROPOLITAN DEVELOPMENT AND HOUSING AGENCY (herein called the Local Authority) and the METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY (herein called the Municipality), witnesseth:

In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows:

1. Whenever used in this Agreement:

a. The term Project shall mean Preston Taylor Homes, a proposed redevelopment of existing public housing which, upon completion will consist of up to 310 residential units of low and moderate income hereafter developed by the Local Authority (or by a third party pursuant to contract with the Local Authority) on property described on Exhibit A attached hereto and incorporated herein by this reference with financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (herein called the Government).

b. The term Taxing Body shall mean the State or any political subdivision or taxing unit thereof in which the Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to the Project if it were not exempt from taxation.

c. The term Shelter Rent shall mean the total of all charges to all tenants of the Project for dwelling rents and nondwelling rents (excluding all other income of the Project), less the cost to the Local Authority of all dwelling and nondwelling utilities.

d. The term slum shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals.

2. The Local Authority shall endeavor (a) to secure a contract or contracts with the Government for loans and annual contributions covering the Project and (b) to develop or acquire and administer the Project. The obligations of the parties hereto shall apply to the Project.

3. a. Under the constitution and statutes of the State of Tennessee, the Project is exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. With respect to the Project, so long as either (i) the Project is owned by the Local Authority, or (ii) any contract between the Local Authority and the Government for loans or annual contributions, or both, in connection with the Project remains in force and effect, or (iii) any bonds issued in connection with the Project or any monies due to the Government in connection with the Project remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon the Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make annual payments (herein called Payments in Lieu of Taxes) in lieu of such taxes and special assessments and in payment for the public services and facilities furnished from time to time without other cost or charge for or with respect to the Project.

b. Each such annual Payment in Lieu of Taxes shall be made after the end of the fiscal year established for the Project, and shall be in an amount equal to either (i) ten percent (10%) of the Shelter Rent actually collected but in no event to exceed ten percent (10%) of the Shelter Rent charged by the Local Authority in respect to the Project during such fiscal year or (ii) the amount permitted to be paid by applicable State law in effect on the date such payment is made, whichever amount is the lower.

c. No payment for any year shall be made to the Municipality in excess of the amount of the real property taxes which would have been paid to the Municipality for such year if the Project were not exempt from taxation.

d. Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against the Project or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof.

4. The Municipality agrees, that subsequent to the date of initiation (as defined in the United States Housing Act of 1937, as amended) of the Project and within five years after the completion thereof or such further period as may be approved by the Government, and in addition to the number of unsafe or unsanitary dwelling units which the Municipality is obligated to eliminate as a part of the low-rent housing project(s) heretofore undertaken by the Local Authority, there has been or will be elimination, as certified by the Municipality, by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or unsanitary dwelling units situated in the locality or metropolitan area in which the Project is located substantially equal in number to the number of newly constructed dwelling units provided by the Project; provided, that, where more than one family is living in an unsafe or unsanitary dwelling unit, the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein; and provided, further, that this paragraph 4 shall not apply in the case of (i) any project developed on the site of Slum cleared subsequent to July 15, 1949, and that the dwelling units eliminated by the clearance of the site of the Project shall not be counted as elimination for any other project or any other low-rent housing project, or (ii) any project located in a rural nonfarm or Indian area.

5. During the period commencing with the date of the acquisition of any part of the site or sites of the Project and continuing so long as either (i) the Project is owned by a public body of a governmental agency and is used for low or moderate income housing purposes, or (ii) any contract between the Local Authority and the Government for loans or annual contributions, or both, in connection with the Project remains in force and effect, or (iii) any bonds issued in connection with the Project or any monies due to the Government in connection with the Project remain unpaid, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the tenants of the Project (other than the Payments in Lieu of Taxes) shall:

a. Furnish or cause to be furnished to the Local Authority and the tenants of the Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality;

b. Vacate such streets, road, and alleys within the area of the Project as may be necessary in the development thereof, and convey without charge to the Local Authority such interest as the Municipality may have in such vacated area; and, in so far as it is lawfully able to do so without cost or expense to the Local Authority or to the Municipality, cause to be removed from such vacated areas, in so far as it may be necessary, all public or private utility lines and equipment;

c. In so far as the Municipality may lawfully do so, (i) grant such deviations from the building code of the Municipality as are reasonable and necessary to promote economy and efficiency in the development and administration of the Project, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of the Project as are reasonable and necessary for the development and protection of the Project and the surrounding territory;

d. Accept grants or easements necessary for the development of the Project; and,

e. Cooperate with the Local Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the new development and administration of the Project.

6. In respect to the Project the Municipality further agrees that within a reasonable time after receipt of a written request therefore from the Local Authority:

a. It will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of the Project, together with all storm and sanitary sewer mains in such dedicated areas, after the Local Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with specifications acceptable to the Municipality;

b. It will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding the Project or as necessary to provide adequate access thereto (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned); and,

c. It will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to the Project and serving the bounding streets thereof (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned).

7. If by reason of the Municipality’s failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or to cause to be furnished to the Local Authority or to the tenants of the Project, the Local Authority incurs any expense to obtain

such services or facilities then the Local Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due to the Municipality in respect to the Project or any other low-rent housing projects owned or operated by the Local Authority.

8. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to the Project covered by this Agreement.

9. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or functions with respect to the Project during his tenure or for one year thereafter shall have any interest, direct or indirect, in the Project or any property included or planned to be included in the Project, or any contracts in connection with the Projects or property. If any such governing body member or such other public official of the Municipality involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall immediately disclose such interest to the Local Authority.

10. So long as any contract between the Local Authority and the Government for loans (including preliminary loans) or annual contributions, or both, in connection with the Project remains in force and effect, or so long as any bonds issued in connection with the Project or any monies due to the Government in connection with the Project remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of the Government. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to the Project so long as the beneficial title to the Project is held by the Local Authority or by any other public body or governmental agency, including the Government, authorized by law to engage in the development or administration of low-rent housing project. If at any time beneficial title to, or possession of, the Project is held by such other public body or governmental agency, including the Government, the provisions hereof shall inure to the benefit of and may be enforced by such other public body or governmental agency, including the Government.

IN WITNESS WHEREOF the Municipality and the Local Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written.

LEGISLATIVE HISTORY
Referred to:	Federal Grants Review Committee
Introduced:	July 18, 2000
Adopted:	July 18, 2000
Approved:	July 25, 2000
By: