Title
Resolution to extinguish construction loan and enter into a development agreement with the Greensboro Housing Development Partnership for acquisition and resale of property in Willow Oaks.
Body
Department: Neighborhood Development and Planning
Council District: 1
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Barbara Harris, Neighborhood Development, 373-2509
Contact 2 and Phone: Sue Schwartz, FAICP, Planning, 373-2149
PURPOSE:
City Council approval is requested to enter into a development agreement with the Greensboro Housing Development Partnership (GHDP) for acquisition and resale of three residential properties in Willow Oaks. This action would extinguish construction loans related to these properties in order to provide clear title and allow them to be sold to qualifying owner-occupants in an active redevelopment area.
BACKGROUND:
Areas of the Willow Oaks neighborhood slated for single family construction were conveyed to the non-profit Greensboro Housing Development Partnership (GHDP), with single family homes constructed by private builders through a ground lease managed by the site developer. Three houses built in 2008-2010 by OU Chavis Contracting Company remain unsold (2108 John Tarpley Lane, 2205 Charles Harshaw Avenue, and 812 Green Oaks Street). A map illustrating their location within Willow Oaks is attached.
OU Chavis Contracting has been sued by LSCG Fund 19, LLC (an entity related to LS Capital, LLC) for construction financing totaling $407,361.78 plus interest accruing since November 26, 2014. A judgment against the builder will cloud the titles of the three properties, with negative consequences for the Willow Oaks redevelopment neighborhood.
The City Attorney's office has negotiated the assumption and payoff of the three promissory notes securing the construction loans held by LS Capital, LLC for these three properties for a total of $160,000. Based on appraisals dated March 20, 2015,...
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