Common use of Phases Clause in Contracts

Phases. (a) The Revitalization Plan contemplates development of approximately 300 total units of housing on the Development Site, to be carried out in several Phases. The Phases are presently in different states of readiness and with different levels of commitment as between the City and the Developer, as further described below. (b) The Developer applied to NCHFA and received an award of 2011 low-income housing tax credits for “Rental Phase 1,” presently anticipated to consist of 119 rental units along with 13 units of complementary live/work or retail/commercial space, for a total of 132 units to be constructed on approximately 7 acres of the Revitalization Site. The City and the Developer anticipate that Closing of Rental Phase 1 will occur not later than the third quarter of calendar year 2012. (c) It is anticipated that a “Rental Phase 2” project shall be developed on the Revitalization Site, presently anticipated to consist of approximately 79 rental units of housing. The City and Developer have agreed to undertake or participate in development of Rental Phase 2, subject to the terms of this Agreement in general and more particularly contingent upon the receipt of a Low Income Housing Tax Credit (LIHTC) award from NCHFA, availability of City Funds for such Phase and authorization of such expenditures by the City Council. The Developer anticipates applying to NCHFA for an allocation of low-income housing tax credits for Rental Phase 2 no later than June 30, 2014. The City anticipates committing approximately $3,400,000 in City Loan Funds for Rental Phase 2 and approximately $1,000,000 in City Site Funds relating to Rental Phase 2 Public Improvements, with final amounts subject to City Council approval. The City and the Developer anticipate that Closing with respect to Rental Phase 2 will occur not later than the second quarter of the calendar year following the year in which NCHFA awards low-income housing tax credits for Rental Phase 2. (d) Should additional mixed-income rental development on the Revitalization Site be warranted and decided upon by the City Council, then the City and Developer shall enter in good faith negotiations to come to terms on subsequent agreements to undertake or participate in such development as a third Phase. Developer shall assist the City with selection of a development partner for any portions of the Revitalization Site not developed by Developer, for example, a home ownership development project. The City will make the final determination of any development partner selected. The Developer will not be obligated to take any actions or expend any funds in support of a third Phase until such time, as any, as it becomes an Approved Phase, and may terminate this Agreement if a third Approved Phase is not established on or before January 1, 2016. (e) For purposes of this Agreement, Rental Phase 1 is presently an “Approved Phase;” Rental Phase 2 will be an “Approved Phase” at such time as the City approves submission of an application to NCHFA for tax credits and issues (with City Council approval) a preliminary, conditional commitment of associated City Funds, and an additional Phase (if any) will become an “Approved Phase” when City Council approves a submission of an application to NCHFA for tax credits (if applicable) and when City Council authorizes a preliminary, conditional commitment of associated City Funds. Any Phase that is not an Approved Phase shall be referred to as a “Potential Phase.” The terms of this Agreement will apply to, and the terms of the Rental Phase 1 City Loan Documents will be substantially the form for subsequent Approved Phase unless the parties expressly agree to different terms in writing. In connection with Developer’s application to NCHFA for financing of Rental Phase 2 or another Approved Phase, provided that this Agreement has not been terminated, the City agrees to enter into an option contract with the Developer or its designee in substantially the form of the contract executed in connection with the Rental Phase 1 application. At such time as NCHFA awards tax credits for an Approved Phase the City will provide predevelopment financing for such Approved Phase on substantially the same terms as reflected in the Rental Phase I Predevelopment Loan Agreement.