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FIRST AMENDMENT TO EXCLUSIVE RIGHT TO NEGOTIATE AGREEMENT (Nystrom Village)
THIS FIRST AMENDMENT TO EXCLUSIVE RIGHT TO NEGOTIATE
AGREEMENT (this “Amendment”) is entered into effective as of _________, 2023, by and among the Housing Authority of the City of Richmond, a public body, corporate and politic ("RHA"), McCormack Baron Salazar, Inc., a Missouri corporation (“McCormack”), and Richmond Neighborhood Housing Services, a California nonprofit public benefit corporation (“RNHS” and together with McCormack, the "Developer").
RHA, McCormack, and RNHS are collectively referred to herein as the "Parties."
RECITALS
A. RHA and Developer entered into that certain Exclusive Right to Negotiate Agreement dated as of September 13, 2022 (the “ERNA”). Capitalized terms used herein without definition shall have the meaning ascribed to such terms in the ERNA.
B. RHA and Developer desire to amend the terms of the ERNA in accordance with this Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Exclusive Negotiating Period. The Exclusive Period (as defined in Section 2 of ERNA) is hereby extended to October 31, 2023. The Parties acknowledge that if by such date they have not successfully negotiated and executed a mutually agreeable Master Development Agreement, including a detailed schedule for development of Phase 1, the ERNA will terminate, and RHA may seek a new developer for the Property.
2. Term Sheet. The terms and conditions set forth in the ERNA, including Exhibit C thereto, are hereby modified as follows:
(i) To enable RHA to continue to receive U.S. Department of Housing and Urban Development (HUD) operating and capital fund subsidies, when feasible, residents of blocks that will be redeveloped will be relocated to other blocks within the Property that are not yet under construction instead of off-site.
(ii) The preliminary phasing plan for development of the Property shall be as follows:
Phase 1: approximately 100 new rental units including 65 replacement public housing units and 35 new workforce rental units
Phase 2: approximately 100 new low-income and workforce rental units
Phase 3: below market-rate homeownership
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Phase 4: below market-rate homeownership
(iii) Developer may request City of Richmond American Rescue Plan Act (ARPA) funding in an amount up to $2 million to fund predevelopment costs and costs associated with an application to the HUD Choice Neighborhoods Initiative program. If approved, such funding will be provided as a loan that will be repayable at close of construction financing for Phase 1.
(iv) Developer may request RHA capital funds for demolition costs.
3. Original Agreement. Except as modified by this Amendment, all provisions of the ERNA shall remain unchanged and in full force and effect.
4. Counterparts. This Amendment may be executed in counterparts, each of which shall be an original and all of which taken together shall constitute one instrument. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties have executed this First Amendment to Exclusive Right to Negotiate Agreement effective as of the date first written above.
RHA:
HOUSING AUTHORITY OF THE CITY
OF RICHMOND, a public body, corporate
and politic
By:
Print Name:__________________________
Title:______________________
DEVELOPER:
MCCORMACK BARON SALAZAR, INC.,
a Missouri corporation
By:___________________________
Print Name:______________________
Title:____________________________
RICHMOND NEIGHBORHOOD
HOUSING SERVICES, a California
nonprofit public benefit corporation
By:___________________________
Print Name:______________________
Title:____________________________