HomeMy WebLinkAbout[02a] Country Manor Term Sheet Term Sheet
This Term Sheet is executed as of this day of , 2016 by and between
Developer and the City of St. Joseph (the "City") and is intended to set forth the terms upon
which the parties hereto may be willing to enter into a Development Agreement. Except for
Section 9 below (which shall be binding upon the Developer), This Term Sheet shall not be
deemed conclusive or legally binding upon either party and neither party shall have any
obligations regarding the property defined below unless and until a definitive Development
Agreement is approved by the City and executed by both parties.
1. Developer: CM of St. Joe LLC and Country Manor of St. Joseph LLC
2. Property: Outlot A, Rivers Bend - 84.53494.0200
Outlot B, Rivers Bend -84.53494.020
Outlot C, Rivers Bend - 84.53494.0202
Outlot D, Rivers Bend - 84.53494.0203
Outlot O, Rivers Bend - 84.53494.0214
3. Key Business Terms—Owner:
a. Execution of Development Agreement
b. Preparation and Submittal of Construction Plans
4. City Conditions:
a. Approval of Tax Abatement
b. City approval of Construction Plans
C. Execution of Development Agreement
d. City determination that Developer has sufficient financial means to construct
Minimum Improvements
5. Minimum Improvements: Improvements to the property will include the construction
of senior housing facility containing 60 independent living units with available services
and 24 memory care units.
6. Construction Schedule: Commence construction by September 1, 2016, and complete
by January 1, 2018. For the purpose hereof, "Commence" shall mean beginning of
physical improvement to the Property, including grading, excavation, or other physical
site preparation work; and "Completed" shall mean that the Minimum Improvements
are sufficiently complete for the issuance of a Certificate of Occupancy.
7. Public Assistance: Subject to all terms and conditions of the Development Agreement,
the City will reimburse the Developer through property tax abatement for up to a total
of $650,000 (future value) of Qualified Costs related to the Minimum Improvements
(out of an estimated total of $17,950,000). "Qualified Costs" shall mean all costs
incurred in connection with the construction of the Minimum Improvements. Payments
will be issued on a pay-as-you-go basis. The final amount and term of the assistance is
subject to change depending on the participation of other taxing jurisdictions.
In addition, the City may consider reducing or delaying payment of certain City fees
associated with the development.
8. Building Value: The building to be constructed upon the Property is anticipated to have
an assessed value of approximately$86,000 per unit, or a total of$7,224,000.
9. Fees: The City acknowledges that the Developer submitted a $7,500 deposit to pay for
the reasonable out-of-pocket legal, financial consultant, abatement creation, and
administrative fees associated with this transaction.
The developer will be required to deposit additional funds if the initial deposit is fully
drawn. Upon execution of this proposed Term Sheet, the developer will make this
deposit to the City. Any funds deposited by developer and not expended by the City for
its legal, financial advisor, or other consultant fees on or before the date of execution of
the development contract will be returned to the developer without interest. The
developer shall pay all other normal and customary City fees and expenses, unless
otherwise specified in the development agreement, for the approval and construction of
the Minimum Improvements.
10. Miscellaneous:
a. No transfer of Property or Development Agreement without City consent.
b. Developer covenants to pay property taxes and maintain customary insurance.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set
forth above.
CM OF ST. JOE LLC AND COUNTRY MANOR OF ST. JOSEPH LLC
By:
Its:
CITY OF ST. JOSEPH
By:
Its: City Administrator