[00:00:03]
>> I'M HEAR, IF YOU HEAR ME OR NOT.
I CAN SEE EVERYBODY. >> CAN I PROCEED WITH ROLL
[Call to order at 3:00pm]
MR. CHAIR? >> LINDA -- CRAIG HIGGINS.
RIGHT HERE. MICHAEL O'DONNELL.
EN MA.BE MIND PEEPLES, MIKE O'DONNELL.
MALINDA PEEPLES. MICHAEL O'DONNELL.
>> WE HAVE ANOTHER GROUP OF PEOPLE COMING BEHIND US, WE HAVE ONLY ABOUT AN HOUR OR SLIGHTLY OVER AN HOUR THEN WE'LL HAVE TO
MOVE OUT OF THE AUDITORIUM. >> WE HAVE A QUORUM.
CALL THE MEETING TO ORDER AND WE'LL START WITH THE PLEDGE OF ALLEGIANCE.
[Additions/Deletions to Agenda and Approval of Agenda]
>> FIRST ITEM IS THERE ANY ADDITIONS OR DELETIONS TO THE
AGENDA? >> MR. CHAIRMAN, I WAS GOING TO SUGGEST THAT WE GO AHEAD AND MOVE MR. MAXWELL UP BUT HE DOESN'T APPEAR TO BE IN ATTENDANCE THIS MOMENT.
I GUESS QUEER GOING TO HAVE TO KEEP THE AGENDA AS IT IS.
HAVING SAID THAT ONE OF THE REASONS WE TRY TO TACKLE SOME OF THE ISSUES THAT INVOLVE MR. MCCALL IS YOU GUYS ARE PAYING HIM. IF MR. MAXWELL SHOWS UNIN THE NEXT FEW MINUTES WE'LL MOVE HIM UP, AT LEAST CONSIDER THAT.
>> WE'LL AGREE TO THAT. DO WE NEED TO MAKE A MOTION TO
APPROVE THAT CONTINGENCY? >> PLEASE.
>> OKAY. CAN I GET A MOTION TO MAKE THAT
ADJUSTMENT TO THE AGENDA? >> SECOND.
>> OKAY. ALL THOSE IN FAVOR? AYE. MOST CARRIES.
MOTION CARRIES. NEXT ITEM IS PUBLIC COMMENTS.
NOT HEARING OR SEEING ANY, WE'LL MOVE ON.
NEXT IS THE REVIEW OF BILLS AND CORRESPONDENCE.
[Review of Bills and Correspondence]
AND HENRY DO YOU HAVE THOSE? >> YES, SIR, WE HAVE ONE INVOICE TO MY FIRM IN THE AMOUNT OF $405.
SECONDLY, AN UPDATE ON BANK OF AMERICA, IT WAS SUCCESSFUL.
I WENT AHEAD AND RECONCILED AWL THE ACCOUNTS, UP TO DATE.
I DON'T HAVE FINANCIAL STATEMENTS TO PUBLISH TO YOU AT THIS MOMENT. I WAS WAITING ON HARRY MAXWELL'S COMMENTS TODAY AND MAYBE SOME MOTIONS TO THE BOARD IN REFERENCE TO HIS INTEREST ACCRUALS.
WITH THAT I DID TALK TO MONTH MAXWELL EARLIER ABOUT AN HOUR AGO, I BELIEVE HE HAD TOLD ME HAD A WATER LEAK, HE WAS ON HIS WAY HOME TO CHANGE AND HE WAS PLANNING TO ATTEND IN PERSON.
IF HE GETS HERE I'LL BE HAPPY TO STAY IN ATTENDANCE FOR ONLY AN HOUR. I WILL HAVE SOME OTHER ITEMS WHEN WE GET TO THE HARRY MAXWELL ISSUE.
OTHER THAN THAT EXPECT FULL FINANCIAL STATEMENT AND PROPOSED BUDGET FOR THE SEPTEMBER MEETING.
WE HAVE UP TO THE OCTOBER MEETING TO AMEND THE 2019-2020 BUDGET AND TO ADOPT THE 2020-2021 BUDGET.
I LOOKED AT THE BUDGET TODAY AND THERE ARE SEVERAL MOVING PARTS ON THE BUDGET GOING FORWARD SO I FIGURE IT WOULD BE BEST FOR US TO GET THOSE UNDER OUR BELT SO I CAN ACCURATELY PRODUCE A BUDGET FOR Y'ALL TO APPROVE AT THE NEXT MEETING.
[Administrator’s Report – Joe Cone]
>> THANK YOU SOUNDS GOOD. MOVING ON, ADMINISTRATOR'S
REPORT. >> CERTAINLY, GOING TO GIVE YOU A LITTLE BIT OF AN UPDATE WHAT THE HOUSING DEPARTMENT HAS REALLY BEEN DOING FOR THE LAST MONTH.
THE HOUSING DEPARTMENT IS WRITING THE RESIDENTIAL ASSISTANCE PROGRAM FOR THE CARES ACT AND THE MONEYS THAT THE COUNTY I GUESS WERE ALLOCATED MAYBE LAST MONTH, JULY OR JUNE.
BUT WE HAVE KICKED OFF A NUMBER OF PROGRAMS, WE ARE BACK RUNNING
[00:05:01]
OUR BACK TO BUSINESS PROGRAM WHICH WE RAN AGAIN I THINK INTO THE BEGINNING OF JULY. A TUNE OF SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT $10 MILLION.WE WERE DOING THE RESIDENTIAL ASSISTANCE PROGRAM.
WE'RE DOING RENT AND MORTGAGES, CELL PHONE BILLS.
UTILITY BILLS AND INTERNET BILLS.
RIGHT NOW, AND WE HAVE APPROXIMATELY $3 MILLION ALLOCATED TO ASSIST OUR CITIZENS WHO HAVE BEEN AFFECTED BY COVID.
THE INTERESTING THING IS WE OPENED THAT PROGRAM ON THURSDAY.
WE ARE FIVE WORKING DAYS INTO THAT PROGRAM.
WE HAVE RECEIVED THE SAME NUMBER OF INQUIRIES AND APPLICATIONS THAT WE RECEIVED IN TWO AND A HALF MONTHS OF L UTILIZING SHIP DOLLARS. THERE I THINK IT WAS IN MAY AND JUNE. SO RIGHT NOW, WE HAVE ACCEPTED THESE NUMBERS SEEM TO BE CHANGING QUITE RAPIDLY ALL THE TIME BUT RIGHT NOW WE'VE ACCEPTED ABOUT 724 APPLICATIONS.
MEANING I HAVE 724 ST. JOHNS COUNTY HOUSEHOLDS THAT ARE CURRENTLY WORKING IN OUR APPLICATION PORTAL.
OF THOSE -- ACTUALLY IN ADDITION TO THOSE 724 WE'VE HAD 139 WHO HAVE ACTUALLY COMPLETED THE APPLICATION AND SUBMITTED IT.
IT'S VERY FLUID PROGRAM AT THE MOMENT.
WE DID A LOT OF PLANNING, A LOT OF DISCUSSION.
BUT OF COURSE I DON'T THINK THAT ANY OF US ANTICIPATED THE DEMAND THIS WE WERE GOING TO SEE. WE ARE UTILIZING TEMPORARY STAFF AS WELL AS REALLOCATED AMPHITHEATER STAFF.
ALL THOSE PEOPLE IF THEY'RE LISTENING RIGHT NOW HAVE IS ALL DONE AN INCREDIBLE JOB FOR US. I CAN'T THANK THEM ENOUGH.
I HAD TO RUN THEM OUT OF THE BUILDING ON FRIDAY EVENING, THEY WERE STILL THERE MAKE PHONE CALLS AND REALLY PUTTING A LOT OF TIME IN FOR OUR CITIZENS. THEY'VE DONE A TERRIFIC JOB.
IN ADDITION TO OUR HOUSING STAFF IS ALWAYS KIND OF WITH US, MS. VOORHEES AND MS. LAWLER HAVE BEEN THE GUIDING FOCUS FOR RUNNING THE PROGRAM. ALSO THIS COMING TUESDAY'S BCC AGENDA, WE HAVE SOMETHING ON THE CONSENT AGENDA ABOUT.
IT IS A HABITAT FOR HUMANITY PROJECT.
WE DID A -- TO MAKE A LONG STORY SHORTLY, WE DID A LOT OF MONEY MOVEMENT WHEN WE FIRST RESPONDED TO COVID.
SOME OF IT WAS USING CDBG FUNDS. WHAT WE'VE BEEN TRYING TO DO IS KIND OF GO BACK AND FILL IN THE HOLES WITH THOSE PROJECTS.
SO WE'LL BE ABLE TO SUPPORT A HABITAT FOR HUMANITY PROJECTS OFF OF VOLUCIA STREET, IS FOR 26 HOMES AND IT'S 5.1 ACRES.
SO WE'RE REALLY EXCITED ABOUT THAT.
THAT CAME TOGETHER, KIND OF FELL APART BECAUSE WE NEEDED THOSE DOLLARS FOR COVID RESPONSE AND IT CAME TOGETHER VERY QUICKLY ALL IN THE SPAN OF ABOUT THREE MONTHS.
IT'S BEEN AN EXCITING PROJECT. IN ADDITION TO US RESPONDING TO COVID AND IRONING OUT THOSE CONTRACTS AND HAVING SOME GREAT DISCUSSIONS WITH HABITAT. I'M SURE IT WILL BE VERY SIMILAR TO THEIR CANOPY OAKS PROJECT. I THINK THAT'S A REAL ADDITION TO THE WEST AUGUSTINE NEIGHBORHOOD.
THAT COMPLETES MY REPORT FOR THIS AFTERNOON.
>> THANK YOU BOTH TO YOU AND THE STAFF FOR HARD WORK.
[Approval of Minutes]
THE NEXT ITEM IS THE APPROVAL OF THE JULY MEETING MINUTES.IS THERE ANY CHANGES, OR AMENDMENTS TO THAT? TO THE MINUTES? IF NOT, JAY, MOTION TO APPROVE
MINUTES. >> DO I HAVE A SECOND?
>> DO YOU HAVE A SECOND, MR. KALTER.
>> I DO, OKAY. ANY FURTHER DISCUSSION? HEARING NONE, CALL THE MOTION, ALL THOSE IN FAVOR? AYES. SOUNDS LIKE THE MOTION CARRIES.
[New Business]
MOVING ON NEXT IS NEW BUSINESS AND THAT IS DRI FUNDS.AND IS THAT YOU JOE? >> I CAN CERTAINLY TALK TO IT.
I THINK THE LAST TIME THAT WE MEANT THERE WAS SOME DISCUSSION ABOUT THE BOARD WISHING TO UTILIZE SOME OF THE AFFORDABLE HOUSING FUNDS. I WILL TELL YOU THAT THERE ARE A NUMBER OF PROJECTS THAT ARE IN THE WORKS RIGHT NOW THAT I'M NOT COMPLETELY READY TO FULLY DISCUSS AT THIS TIME.
BUT WE ARE HAVING SOME CONVERSATIONS WITH SOME DIFFERENT DEVELOPERS AND MAYBE INVOLVING SOME OTHER COUNTY PARCELS. BUT I THINK THE REQUEST TO GO BACK TO WHAT THE ORIGINAL REQUEST WAS, MR. KALTER YOU HAD EXPRESSED AN INTEREST OF MAYBE UTILIZING SOME OF THOSE MONEYS.
THE QUESTION THAT WAS POSED TO MYSELF AND MRS. LAVIE AT THE TIME WAS WHAT WOULD IT TAKE TO UTILIZE THOSE FUNDS FOR HFA ACTIVITIES. WHICH CAUSED US TO GO BACK AND
[00:10:02]
LOOK AT THE POLICY AND PROCEDURES OF BOTH THE HFA AND AS WELL AS THE AFFORDABLE HOUSING GRANT POLICIES AND PROCEDURES. IT WAS ACTUALLY BEFORE MR. KOMANDO WHO IS HERE WITH US TODAY WAS KIND OF BROUGHT ON BOARD SO HE WASN'T REALLY TOO INVOLVED IN THOSE CONVERSATIONS LIKE HE WOULD BE NORMALLY UNDER NORMAL CIRCUMSTANCES.BUT AFTER DISCUSSION THE DECISION WAS MADE THAT THE BOARD COULD INDEED MAKE SOME SORT OF REQUEST TO THE BCC ABOUT UTILIZING THOSE FUNDS. MY ONLY SUGGESTION WOULD BE THAT THAT LETTER COME FROM MAYBE SOMEONE ON THE BOARD ON THE HFA BOARD WOULD LIKE TO VOLUNTEER TO WRITE THAT LETTER AND IF PERHAPS MAYBE THE NEXT MEETING WE COULD OR AGAIN IT'S UP TO YOUR DISCRETION MR. KALTER BUT WE COULD OPOSSIBLY BRAINSTORM ABOUT WHAT THOSE FUNDS IF YOU WOULD MAKE THAT REQUEST WOULD LOOK LIKE. IN CASES LIKE THIS THAT WE'VE DEALT WITH OUTSIDE OF THE HFA BOARD TYPICAL THE BOARD WOULD WRITE A LETTER AND I WOULD DECIDE WHICH WAY TO PRESENT THAT LETTER WOULD BE. IN THE PAST SPECIFICALLY TO THE HFA I THINK WE INCLUDED SOME CORRESPONDENCE AT THE END OF THE BCC MEETINGS AND THE COMMISSIONER MINUTES WHERE THEY HAVE THEIR MOMENTS THERE AT THE END WHERE THEY HAVE THEIR COMMENTS, WE PRESENTED A LETTER AT THAT TIME.
BUT IT MAY BE APPROPRIATE TO HANDLE IT ANOTHER WAY.
I'M JUST NOT QUITE SURE WHAT THE PROTOCOL WOULD BE.
BUT ESSENTIALLY A LETTER WOULD NEED TO COME FROM THE HFA BOARD AND THEN I WOULD I GUESS YOU COULD SAY RUN IT THROUGH THE
CHANNELS IF YOU WOULD. >> I'M IN AGREEMENT THAT I WOULD LIKE THE BOARD MEMBERS TO COME BACK AT THE NEXT MEETING WITH ANY IDEAS, WHETHER THEY THINK WE COULD UTILIZE SUCH FUNDS, AND AT THAT TIME IT MIGHT BE APPROPRIATE AS WELL, IF WE SHOULD HAVE AT LEAST A DRAFT OF THE NEW IMPLEMENTATION PLAN, AND WE COULD SEE WHERE THEY MIGHT BE ABLE TO REQUEST FUNDS FOR SOME OF THAT IMPLEMENTATION. ANYBODY ELSE ON THE BOARD HAVE
ANY IDEAS ABOUT THIS? >> WORKS GOOD FOR ME JAY.
I AGREE WITH YOU ON THAT. >> OKAY.
ANYBODY ELSE HAVE COMMENTS? SUGGESTIONS?
OKAY THEN -- >> YOU PRESS THE MIC BUTTON THERE. IT WILL TURN GREEN.
>> THERE YOU GO, THAT'S IT. >> OH JEEZ, OKAY.
MY SUGGESTION, WE'RE GOING TO HAVE SOME INFORMATION FROM SUSAN LEIGH COMING IN. I DON'T KNOW HOW LONG WE HAVE TO GET THIS TOGETHER. BUT SUSAN MAY HAVE SOME SUGGESTIONS ON THINGS THAT WE COULD GET INVOLVED WITH THAT MIGHT WORK WITH SOME STATE, FEDERAL FUNDS THAT MAY BE COMING DOWN THE PIKE. I DON'T KNOW.
I DON'T KNOW HOW MUCH TIME WE HAVE.
>> I'LL TALK TO MRS. LEIGH, THE INFORMATION THAT SHE SUBMITTED A FEW WEEKS AGO TO THE BOARD. I COULD TALK ABOUT THAT WHEN WE GET TO THAT AGENDA ITEM. BUT THERE IS REALLY NO TIME ON HER END. SHE IS MORER C MORE CONCERNED AN
ABOUT PROTOCOL. >> NO I MEAN OUR TIME.
HOW MUCH TIME DO WE HAVE TO REQUEST THESE FUNDS?
>> IT WILL BE AN OPEN LETTER, LINDA.
ANYBODY ELSE? OKAY THEN MOVE ON TO OLD
[Old Business]
BUSINESS. FIRST ITEM WOULD BE SUSAN LEIGH,COMMUNITY CONCEPTS GROUP. >> YES, I'LL JUST OPEN WITH SOME BRIEF COMMENTS ABOUT IT. IN YOUR AGENDA PACKET IS WHAT MS. LEIGH HAS SUBMITTED TO US. I THINK IT WAS TWO WEEKS AGO I ASKED MS. GARCIA TO SEND IT OUT TO YOU.
SHE WAS CONCERNED ABOUT A NUMBER OF THINGS.
SHE'S VERY INTERESTED IN ASSISTING THE BOARD.
SHE WAS CONCERNED ABOUT POSSIBLY GOING THROUGH THE RFP PROCESS.
I THINK FROM TALKING TO MR. KOMANDO THAT THAT PROBABLY WILL NOT BE NECESSARY. IF YOU READ THE PROPOSAL I THINK THAT WE COULD ALL AGREE IT'S A LITTLE BIT VAGUE.
THAT'S NOT TO BE CRITICAL. I TALKED TO MS. LEIGH AT LEAST THREE OR FOUR TIMES IN THE LAST FOUR WEEKS.
BUT WHAT SHE -- HER IDEA WAS, RATHER THAN PARTICIPATING IN THIS MEETING, WOULD BE REQUEST IF THE BOARD HAS ANY QUESTIONS EITHER AT THIS MEETING OR AT THE NEXT MEETING, THAT I GATHER UP THOSE QUESTIONS, GIVE THEM TO HER, AND THEN SHE COULD MAYBE COME TO A MEETING AND ADDRESS THOSE QUESTIONS.
BUT IF YOU LOOK AT THE PROPOSAL SUBMITTED TO US, IT LOOKS MORE
[00:15:04]
LIKE A MAYBE I'LL CALL IT LIKE A STRATEGIC PLAN MAYBE BRAINSTORMING RATHER THAN THE ACTUAL MANAGEMENT OF THE HFA.>> JOE, I HAVE A QUESTION FOR YOU.
>> SURE. >> WHY IS THE RFP NOT REQUIRED IN THIS CASE AND YET WHEN WE DEALT WITH THE PROPERTIES THAT WE HAD IN QUESTION, MANY AN RFPS REQUIRED.
WHAT'S THE DIFFERENCE? >> MR. KOMANDO WOULD YOU TACKLE
THAT ONE? >> WE ARE ESSENTIALLY HIRING STAFF. YOU CAN PUT OUT A JOB ANNOUNCEMENT IF YOU WISH TO BUT WHEN YOU HAVE TO DO COMPETITIVE SOLICITATION FOR DIFFERENT PROJECTS THAT'S REQUIRED UNDER
CHAPTER 159.4 THE HFA STATUTE. >> I DON'T UNDERSTAND.
SAY THAT AGAIN. >> IF YOU DECIDE TO HIRE COMMUNITY CONCEPTS GROUP, IT'S NOT ANY DIFFERENT THAN YOU HIRING A STAFF MEMBER. YOU WOULDN'T PUT A JOB ADVERTISEMENT OUT FOR AN RFP JUST TO HIRE A STAFF MEMBER.
>> JOB REQUIREMENTS YOU HAVE TO SUBMIT THOSE, YOU HAVE TO PUT
THOSE OUT THERE. >> YOU DON'T HAVE TO.
CAN YOU BUT YYOU CAN BUT YOU DO. THIS IS A SPECIALIZED AREA.
THERE'S NOT A LOT OF PEOPLE THAT EVEN PARTICIPATE IN THIS.
I MEAN AND YOU CAN, YOU CAN STUDY TO PUT IT OUT LIKE A JOB
ANNOUNCEMENT. >> I'M JUST WONDERING WHY THE
ONE AND NOT THE OTHER. >> WHEN YOU DO DIFFERENT CONSTRUCTION PROJECTS YOU DO HAVE TO COMPETITIVELY SOLICIT BIDS FOR THOSE PROJECTS, ACCORDING TO THE STATUTE.
>> THAT WASN'T A CONSTRUCTION PROJECT.
IT WAS SALE OF PROPERTIES. >> I'M SORRY, I THOUGHT YOU WERE TALKING ABOUT DIFFERENT PROJECTS THAT YOU DO.
>> DO WHAT? >> I APOLOGIZE, I YOU WERE
TALKING ABOUT DIFFERENT PROJECT- >> NO, I'M TALKING GOOD SALE OF
EXCESS PROPERTIES. >> SALE OF EXCESS PROPERTIES IS PART OF THE STATUTE THAT YOU ALSO HAVE TO PUT IT OUT TO AUCTION TO ACCEPT SEALED BIDS FOR THOSE.
>> I THINK MR. MAXWELL IS HERE. >> IT IS MY UNDERSTANDING THAT ONE OF THE DISCUSSIONS WE HAD A COUPLE OF MONTHS BACK, MS. LEVINE MRS. SAID THAT THIS ALSO SAID THAT THISTYPE OF SERVR AUAUXILIARY SIFTS, MINIMUM COSTF $3500.
IT DOESN'T SEEM LIKE IT WOULD WARRANT OR REQUIRE AN RFP BASED ON BOTH THE TYPE OF SERVICE AND ALSO THE MINIMUM AMOUNT THAT IS ASSOCIATED WITH IT. DOES ANYBODY ON THE BOARD WANT TO DISCUSS THE PROPOSAL FROM SUSAN? BECAUSE I MEAN WE'VE BEEN GOING OVER THIS HERE AND LOOKING FOR SOMETHING LIKE THIS FOR A LITTLE OVER A YEAR.
PART OF WHAT HAD DELAYED US WAS, WE DIDN'T HAVE ANY MONEY.
WE DO NOW HAVE SOME IN OUR ACCOUNT.
AND IT SEEMS LIKE THIS IS THE APPROPRIATE TIME TO AT LEAST TAKE THIS FIRST STEP WHICH WAS REALLY JUST A PLAN TO HELP US IDENTIFY WHAT MIGHT BE SOME IMPLEMENTATION STRATEGIES GOING
FORWARD. >> THOSE WERE MY THOUGHTS EXACTLY. I LIKE THE PROPOSAL, I LIKE WHAT SHE SAID ABOUT IT. WE DON'T NEED AN RFP AND I WOULD
LIKE TO PROCEED WITH IT. >> OKAY.
I WOULD ENTERTAIN A MOTION THEN TO ACCEPT THE PROPOSAL FROM
COMMUNITY CONCEPTS GROUP. >> I WILL MAKE THAT.
ANY DISCUSSION? >> I GUESS I HAVE A LITTLE BIT OF A QUESTION. IN LOOKING THROUGH WHAT SHE SUBMITTED TO US, I'M NOT QUITE SURE WHAT THE BOARD'S DEFINITION OF A PROPOSAL IS IN THIS PARTICULAR CASE.
ARE WE -- DO WE HAVE SOME SORT OF -- IS THERE AN ACTION PLAN? I REALLY THINK THAT MS. LEIGH THE INTENTION WAS FOR HER TO COME BACK AND HAVE A CONVERSATION WITH THE BOARD.
I THINK WHAT SHE WAS TRYING TO DO IS OUTLINE SOME OF THE DIFFERENT SERVICES THAT SHE COULD PROVIDE FOR YOU RATHER THAN TAKE SOME SORT OF ACTION AT THIS PARTICULAR MOMENT.
>> WEWELL AS I UNDERSTOOD IT SHE WAS GOING TO LOOK AT OUR MAKEUP AND SEE HOW WE WERE FUNCTIONING AND HOW WE COULD BE FUNCTIONING AND WHETHER SHE WOULD ADVISE FOR SOMEONE TO SIT WITH US PERMANENTLY OR IF SHE COULD COME IN OCCASIONALLY AND HELP US WITH
[00:20:04]
PROJECTS OR WHETHER WE NEEDED AN RFP TO HIRE SOMEBODY TO ADVISE US. AND THAT'S WHAT I SAW IT AS.WITH A $1500 RETAINER AND SHE'D WORK ON THAT.
>> RIGHT. I SEE IT AS, YOU KNOW, WHAT SHE CALLED CREATING THE SHORT TERM ON STRATEGIC PLAN, AND THAT'S WHAT IS BEING PROPOSED FOR THE $3500 AND I AGREE WITH ROBERT, IT IS THE 1500, INITIAL RETAINER, UPON COMPLETION OF THE PLAN, THE BALANCE OF $2,000 WOULD BE OWED AT THAT TIME.
>> YES, I CERTAINLY DON'T WANT TO COME ACROSS AS DISAGREEING WITH THE BOARD. I CAN JUST TELL YOU WHAT I'VE HAD CONVERSATIONS WITH HER ABOUT.
I DON'T KNOW IF IT WAS AN EFFORT TO KIND OF NARROW DOWN THE SCOPE A LITTLE BIT MORE OR -- I SEE HER EXPERTISE AS A VALUABLE RESOURCE TO US. SHE IS IN CONTACT WITH ALL THE HOUSING FINANCE AUTHORITIES THROUGHOUT THE STATE, SMALL AND LARGE. SO SHE KNOWS WHAT ONES THAT STRUGGLE LIKE US, AND IF YOU READ SOME OF THE PROPOSAL, WAS WHEN THEY FIRST STARTED THERE WAS LOTS OF BOND ISSUES, AND A LOT OF THESE PLACES ACCUMULATED A LOT OF MONEY.
THE LATE STARTERS OF COURSE DIDN'T GET TO SEE THAT, LIKE US, AND ARE STRUGGLING TO TRY TO DO THINGS.
AND HER EXPERTISE OF WATCHING SMALLER COUNTIES AND LARGER COUNTIES AND SEE HOW THEY OPERATE IS INVALUABLE TO US.
AND IF YOU HAVE EVER BEEN TO ONE OF THEIR CONFERENCES YOU'LL SEE
>> WE'VE HAD SEVERAL DISCUSSION- >> COULD WE HAVE A MOTION AND
SECOND AND OSECOND? >> YES, WE DO.
>> THERE MIGHT BE A FIRST AND SECOND.
>> THEN CALL THE QUESTION TO ORDER.
ALL THOSE IN FAVOR OF HIRING COMMUNITY CONCEPTS GROUP.
NEXT ITEM FOR BUSINESS IS THE AGREEMENT REVIEW APPROVAL.
AND THAT'S MR. KOMANDO. >> I'LL JUST SPEND JUST A SECOND, I'LL LET MR. KOMANDO SPEAK.
I THINK LAST TIME WE HAD A PRETTY LENGTHY DISCUSSION ABOUT UTILIZING MR. KOMANDO AS THE ATTORNEY FOR BOARD.
AND THAT AGREEMENT I THINK AT THE TIME, THE BOARD GAVE ME SOME DIRECTION TO JUST GO AHEAD AND MOVE FORWARD WITH HIS AGREEMENT.
WE'VE GOTTEN ALL THE DOCUMENTS SIGNED AND HERE HE IS SERVING
TERRIFIC. SO NEXT ITEM OF BUSINESS WOULD BE THE BOND APPLICATION UPDATE AND FINANCIAL ADVISOR PRAG
CONTRACT. >> RIGHT AGAIN MRS. EDMONDSON IS HERE. I THINK SHE SPOKE TO THE BOARD TWO MEETINGS AGO. IT WAS OUR RECOMMENDATION THAT SHE GO AHEAD AND MOVE FORWARD, THAT WE MOVE FORWARD WITH UTILIZING HER SERVICES. THERE WERE SOME -- THERE WAS SOME DISCUSSION THAT WE NEEDED TO TAKE A FEW MOMENTS TO KIND OF RESET AND REVIEW WHAT SHE HAD SUBMITTED TO US.
I THINK THE BOARD'S -- THERE WAS JUST A LOT OF QUESTIONS AND AT THE TIME, THE INTENTION WAS FOR THE BOARD TO I GUESS KIND OF GET WITH THE BOND ATTORNEYS AS WELL AS MR. KOMANDO, AND GET SOME FEEDBACK. EVERYBODY SEEMS TO APPEAR THAT IT'S A GOOD IDEA TO GO AHEAD AND UTILIZE MRS. EDMONDSON'S FIRM.
SHE'S HAD SOME PAST EXPERIENCE WITH THE APPLICANTS AND I'LL JUST LET HER SPEAK IF YOU HAVE ANY ADDITIONAL QUESTIONS.
THE AGREEMENT THAT WAS IN YOUR PACKET WAS THE SAME ONE FROM A FEW MONTHS AGO. AND TO BE FRANK, EVERYTHING
LOOKS GOOD AND READY TO PROCEED. >> I'VE GOT NO QUESTIONS, IF THAT'S OKAY. IN THE AGREEMENT I UNDERSTAND IT'S THE AGREEMENT WITH THE HFA, IN I THOUGHT IN SOME OF YOUR PREVIOUS PRESENTATIONS YOU SAID THAT THE DEVELOPER WOULD BE PAYING THAT FEE OUT OF THE BOND PROCEEDS.
BUT I DON'T SEE THAT ANYWHERE. SO IS THAT MEAN THAT THE HFA IS A CONDUIT? LIKE PROCEEDS COME DIRECTLY FROM
>> BOND.D? >> YES, THE MULTIDPEAM TRANSACTIONS, YOU ISSUE THE BONDS AND THEN THE PROCEEDS ARE PLEASANT IMMEDIATELY TO THE DEVELOPER.
AND THERE IS NO LIABILITY ON THE AUTHORITY'S PART.
SO THE -- YOU ARE ACTING AS A CONDUIT ISSUER AND THE DEVELOPER AND HIS PARTNERS, THROUGH THE TAX CREDIT EQUITY AND THE
[00:25:02]
LENDING INSTITUTIONS, ARE PAYING ALL THE EXPENSES.>> OKAY. BUT SO THAT THE FEE IS -- ALTHOUGH THEY ARE -- YOU'RE SAYING IT'S COMING FROM THE BOND PROCEEDS. SO IS THAT AT THE CLOSING, THEN,
SO TYPICALLY, THESE TRANSACTIONS WILL PROBABLY HAVE FOUR, FIVE SOURCES OF FUNDS AT CLOSING. THERE WILL BE BOND PROCEEDS, THERE WILL BE TAX CREDIT EQUITY, THERE WILL BE THE CDBG MONEY, THERE MAY BE SOME OTHER SUBSIDY MONEY, I'M NOT SURE.
SO AT LEAST THREE BECAUSE OF THE CDBG MONEY.
AND WHEN THE TRANSACTION CLOSES, THOSE PROCEEDS ARE ALLOCATED OUT TO COVER -- SOME ARE DEPOSITED IN CONSTRUCTION ACCOUNTS TO BE USED DURING CONSTRUCTION. SOME ARE USED TO PAY COST OF ISSUANCE WHICH MIGHT INCLUDE MR. KOMANDO'S FEE.
FOLEY AND LARDNER'S FEE, MY FEE IF YOU SHOULD HIRE ME.
BORROWER'S COUNSEL, A PRETTY EXTENSIVE LIST OF COSTS.
>> JUST ONE OTHER QUESTION JUST VERY QUICKLY.
BECAUSE IN THE PROPOSAL AND THE COST THERE WAS $1.40 PER THOUSAND BOND PROCEEDS, WITH A MINIMUM OF A $35,000 FEE.
>> RIGHT. >> WHICH CAN I DON'T THINK IS EXORBITANT. BUT THE BOND ISSUE IS ABOUT $15 MILLION. IT WOULD HAVE TO BE ABOUT $25 MILLION TO REACH THAT $35,000. IS THAT -- CAN THE BOND ISSUANCE ACCEPT THAT LEVEL OF COURSE ON IT?
>> YES. THESE -- TRY TO FIND A WAY TO SAY THIS WITHOUT -- THE DEVELOPMENT TEAMS ARE GOOD HEARTED PEOPLE BUT THEY'RE IN THIS TO MAKE A PROFIT.
AND THEY ASSUME THAT THERE IS A CERTAIN LEVEL OF COST ASSOCIATED WITH THEIR ABILITY TO ACCESS THE TAX EXEMPT FINANCING, WHICH GWHICHGIVES THEM ACCESS TO THE X CREDIT WHICH IS WHERE THE REAL KICK IS. NOT ONLY TAX EXEMPT FINANCING AND TAX CREDITS THERE IS $15 MILLION OF CDBG MONEY.
>> OKAY. >> SO THE DEVELOPER IS NOT -- CEREMONY ALWAYS TIGHT. WE WANT TO BE VERY CAREFUL ABOUT COSTS. BUT LOOKING THE TRANSACTION OVER CAREFULLY AND VETTING EVERYTHING ABOUT IT IS IN MY OPINION WORTH
THE FEE THAT THEY PAY. >> OH NO, I AGREE COMPLETELY.
I JUST WANTED TO MAKE SURE THAT, YOU KNOW, THERE WOULDN'T BE SOMETHING THAT, YOU KNOW, IN THE BOND ISSUANCE WOULD TRY AND SAY THAT, YOU KNOW, IT'S CAN YOU GET UP TO A CERTAIN AMOUNT BUT IT'S GOT TO BE, YOU KNOW, WITHIN A CERTAIN DOLLARS PER THOUSAND OR SOMETHING. AND, YOU KNOW, AS OPPOSED TO
AND TO BE HONEST, THERE'S A LOT OF -- A LOT OF WORK AND HAND-HOLDING IN THIS. AND WE'VE ESTABLISHED MINIMUM FEES TO MAKE SURE THAT THAT'S APPROPRIATELY COMPENSATED.
>> NO, I AGREE COMPLETELY. ANYBODY ELSE HAVE ANY QUESTIONS? OKAY HEARING NONE, WHAT IS OUR NEXT STEP TO DOING -- DO WE NEED TO REAPPROVE THE AGREEMENT, THE CONTRACT? JOE DO YOU KNOW WHERE WE ARE AT THIS STAGE?
>> MR. CONE STEPPED OUT BUT THE NEXT STEP IN THE PROCESS WOULD BE FOR OTHERE TO BE A MOTION AND APPROVAL OF THE AGREEMENT AS
PRESENTED TO THE BOARD. >> OKAY.
DO I HEAR A MOTION BY ANY OF THE BOARD MEMBERS?
>> I SO MOVE. >> DO I HEAR A SECOND?
MY ONLY QUESTION IS, WE DON'T HAVE TO DO AN RFP ON THIS THING TOO? I MEAN I'M CONFUSED ABOUT THIS
RFP STUFF. >> NO, THIS IS ACTUALLY EXEMPT UNDER STATUTE FROM THE CC AND A. JUST LIKE LEGAL SERVICES ARE.
YOU DON'T HAVE TO DO AN RFP FOR THAT EITHER.
[00:30:01]
>> ANY OTHER QUESTIONS? NOT HEARING ANY I'LL CALL THE MOTION. ALL THOSE IN FAVOR.
>> THANK YOU VERY MUCH. AND I JUST WANTED TO LET YOU KNOW, MY NEXT STEP ONCE WE GET THROUGH THE CONTRACTUAL ITEMS, IS TO ASSIGN A CREDIT UNDERWRITER.
THERE ARE THREE FIRMS THAT DO CREDIT UNDERWRITING FOR FLORIDA HOUSING FINANCE CORPORATION. IF WE USE ONE OF THOSE THREE FIRMS TO DO CREDIT UNDERWRITING OF THE TRANSACTION WHEN WE DO THE BOND ISSUE, THEN FLORIDA HOUSING WILL ACCEPT THAT CREDIT UNDERWRITING WHEN IT COMES TO BE TIME FOR THE TAX CREDIT ISSUANCE. SO WHAT WE'RE GOING TO DO -- WHAT WE DO IS AGAIN, AT THE DEVELOPER'S EXPENSE, RETAIN ONE OF THE THREE CREDIT UNDERWRITERS TO UNDERWRITE THE TRANSACTION, WHICH REALLY MEANS MAKING SURE THE SOURCES OF FUNDS ARE ADEQUATE TO FUND THE CONSTRUCTION AND PAY THE COST, MAKING SURE THAT THE UNITS THAT ARE GOING TO BE BUILT ARE -- MEET ALL THE STANDARDS THAT THEY SHOULD MEET, AND THEN LOOKING THROUGH SOME OF THE VARIOUS RELATIONSHIPS BETWEEN LENDERS, THE TAX CREDIT INVESTORS AND MAKING SURE THAT ALL THAT TIES TOGETHER. SO THAT WILL BE THE NEXT STEP ONCE WE GET UNDER CONTRACT. AND I -- BUT I WILL REITERATE WHILE I'M WORKING WITH THE DEVELOPER PRETTY CLOSELY TO GET ALL OF THIS PUT TOGETHER, I WORK FOR YOU.
MY JOB IS TO REPRESENT YOUR INTERESTS.
AND THE BEST WAY I CAN DO THAT IS MAKE SURE THAT THE DEAL IS LINED UP IN THE RIGHT WAY TO GET THE TAX CREDITS AND MOVE FORWARD
SUCCESSFULLY. >> AND IN TERMS OF THE BOARD, WHAT WOULD BE OUR NEXT REQUIREMENT?
AND WHEN WOULD THAT OCCUR? >> I THINK -- I DON'T KNOW IF -- I KNOW RICH IS THERE. THE NEXT STEP IS FOR THE BOARD IS GOING TO BE WHEN THERE IS A CREDIT UNDERWRITING REPORT COMPLETE, AND A FINANCING PLAN COMPLETE, AND BOND DOCUMENTS.
AND THAT WILL COME BACK TO YOU FOR APPROVAL.
>> OKAY, GREAT. >> THAT COULD BE, I THINK WE'RE PROBABLY LOOKING OCTOBER, NOVEMBER MAYBE.
WOULD BE MY GUESS. BUT I DON'T REALLY RECALL WITHOUT GOING BACK TO CHECK MY NOTES.
>> THANK YOU. >> CHAIRMAN IF I COULD JUST JUMP IN FOR ONE SECOND. I THINK THERE'S SOME CONCERNS, I'D LIKE TO HAVE LEGAL REVIEW MRS. EDMONDSON'S WORK, I'LL WORK WITH MR. KOMANDO ON THIS, MRS. EDMONDSON'S PROPOSAL BEFORE WE COMPLETELY MOVE FORWARD WOULD THAT BE OKAY?
>> YES. >> BEFORE WE -- OR IF YOU WANTED TO DO SOMETHING MAYBE CONTINGENT BUT I WOULD LIKE TO DO THAT BEFORE WE FULLY COMMIT TO THAT AGREEMENT.
>> THAT'S FINE WITH ME. I THOUGHT YOU HAD ALREADY LOOKED
>> YEAH, I'M SORRY, I JUST HAVEN'T FULLY VETTED IT YET, WE HAVE BEEN UNDERWATER A BIT WITH SOME OF THE RESIDENTIAL ASSISTANCE ITEMS. AND I GUESS THERE WAS JUST A COUPLE OF THINGS THAT WE WANTED TO LOOK A LITTLE BIT MORE.
>> JOE, IF YOU WANTED TO, COULD YOU MAKE THAT GO TO THE PERSON THAT MADE THAT MOTION AND THE PERSON THAT SECONDED THAT MOTION AND SEE IF THEY WOULD BE OKAY WITH MAKING THAT SUBJECT TO YOUR REVIEW OF THE CONTRACT AND LEAVE THE VOTE IN PLACE THAT WAY.
>> OKAY, I WAS PULLED AWAY FOR A SECOND.
I WASN'T QUITE SURE WHO MADE THE MOTION AND WHO SECONDED IT.
SO I'LL DEFER TO THE BOARD, TO MR. RAYMOS'S REQUEST.
>> SO I'LL AMEND THE MOTION TO MAKE IT SUBJECT TO STAFF APPROVAL. MR. CONE AND KOMANDO.
IS THAT WHAT WE'RE LOOKING FOR? SO I'LL MAKING THAT, AMEND THE
MOTION. >> I'VE GOT AQUESTION. A QUESTI.
ARE WE ASKING MR. KOMANDO TO AS ATTORNEY FOR HFA TO REVIEW THE
I OBVIOUSLY HAVEN'T DISCUSSED IT WITH MR. KOMANDO BUT I WOULD
LIKE TO DO THAT. >> DOES THIS CREATE ANY PROBLEMS FOR THE PRIOR GROUP IN BEING ABLE TO MOVE FORWARD WITH THE WORK THEY NEED TO DO IN ORDER TO GET THE BOND ISSUE READY?
>> SO I THINK IT'S APPROPRIATE TO HAVE LEGAL REVIEW.
[00:35:01]
AND MAYBE THE MOTION COULD BE SUBJECT TO LEGAL, THAT THE CHAIRMAN IS AUTHORIZED TO EXECUTE THE CONTRACT SUBJECT TO LEGAL REVIEW AND FINDING OF LEGAL SUFFICIENCY OR SOMETHING.I DON'T KNOW IF THAT WOULD TAKE CARE OF YOUR CONCERNS JOE OR IF
THERE ARE OTHER CONCERNS. >> THAT'S WHAT THE AMENDMENT IS
FOR. >> I THINK GENERALLY SPEAKING I CAN'T -- CONCEPTUALLY WE ARE FINE.
WE'RE TALKING ABOUT DETAILS IN THE CONTRACT, I CAN'T IMAGINE SOMETHING WOULD COME UP THAT IS THAT SIGNIFICANT.
I CAN'T ACTUALLY PROVIDE SERVICES WITHOUT A CONTRACT.
BUT II DON'T THINK IT'S GOING TD THINGS UP VERY LONG.
>> THAT BASICALLY WAS MY AMENDMENT, SUBJECT TO STAFF
REVIEW AND APPROVAL. >> NOW YOU JUST HAVE TO GET THE
SECOND TO AGREE TO THAT. >> WHO WAS THE SECOND?
>> NOW JUST TO BE CLEAR. IS THE AMENDMENT SUBJECT TO STAFF REVIEW OR SUBJECT TO THE ATTORNEY REVIEW?
>> I SAID THE STAFF AND THE ATTORNEY.
>> I DON'T KNOW WHO SECONDED THE FIRST TIME BUT I WILL SECOND THE
SECOND MOTION. >> AND IS PART OF THE AMENDMENT, IS IT ACCEPTABLE THAT WITH, UPON REVIEW AND APPROVAL BY ATTORNEY AND STAFF, THAT THE CHAIR CAN THEN SIGN THE CONTRACT? RATHER THAN HAVING TO WAIT UNTIL NEXT MONTH'S MEETING?
>> YES. >> YES, THAT'S THE AMENDED
>> SHOULD ANY ISSUES COME UP I WILL NEED TO BRING IT BACK FOR
>> OKAY. WE HAVE A SECOND FOR THAT,
>> OKAY. ANY FURTHER DISCUSSION? OKAY IF NOT PIEL POLL THE MOTION.
>> ANY OPPOSED? HEARING NONE, MOTION CARRIES.
>> THANK YOU AGAIN. >> NEXT, DOESN'T APPEAR TO ME THAT SUSAN IS ONLINE SO I THINK WE CAN MOVE ON TO THE NEXT ONE.
THE DISCUSSION OF THE OFFER ON THE HFA LOTS.
>> MR. MAX WE MAXWELL IS HERE, D YOU BE INTERESTED IN MOVING HIM FORWARD? I KNOW IT'S ONLY ONE POINT
BUT -- >> WE'VE GOT LIKE 15 MINUTES.
I THINK WE SHOULD DO HARRY. >> I GUESS THE QUESTION I HAVE, IS THERE SOMEONE EITHER ON THE THING OR THAT WANTS TO QUICKLY DISCUSS THE OFFERS, BECAUSE FROM WHAT I UNDERSTAND, IT CEDED THE MOTION WE HAD FOR APPROVAL, JUST A QUICK UPDATE AS TO WHERE WE
STAND. >> EARLIER WE AGREED TO PUT MR. MAXWELL UP IN FRONT. SO WE NEED TO BRING MR. MAXWELL
>> GOOD EVENING, I'M HARRY MAXWELL WITH H HALO PROPERTIES, INC. I GUESS EVERYONE RECEIVED THEIR FINANCIAL REPORT, THE CONSOLATION FINANCIAL REPORT.
SO I'M HERE TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
>> MR. MAXWELL I DO HAVE A QUESTION FOR YOU.
>> YES, SIR. >> SO FIRST OFF WE'VE LEARNED A LOT ABOUT YOU OVER THE YEARS SO I WANT TO THANK YOU FOR ALL THAT
>> VERY VALUABLE PART OF THE COMMUNITY.
>> THANK YOU. >> SO THANK YOU.
SECONDLY, IF YOU, JUST LOOKING AT YOUR FINANCIALS, IT SEEMS
LIKE YOU HAVE CASH FLOW ISSUES. >> YES.
>> GIVEN HOW LOW THE RENTS ARE CORRECT?
>> YES, SIR. >> I KNOW WE DISCUSSED PREVIOUSLY ABOUT NOT CAN FORBEARING YOUR LOAN, MORE OR
LESS, NOT FORGIVING YOUR LOAN. >> YES, SIR.
>> SIMPLY -- I SHOULDN'T SAY SIMPLY, MAINLY BECAUSE IT ACCOUNTS FOR ROUGHLY I THINK IT'S 5% OF YOUR TOTAL OUTSTANDING LONG TERM DEBT. SO I GUESS MY MAIN QUESTION IS,
[00:40:05]
IF THIS IS FORGIVEN, THAT DOESN'T STILL HELP YOU WITH YOUR $3 MILLION THAT YOU STILL OWE LONG TERM, CORRECT? I MEAN, HOW IS THIS GOING TO -- HOW IS THIS GOING TO HELP YOU IFWE FORGIVE THIS IS THE QUESTION? >> I THINK IT WILL.
I'M TRYING TO WORK WITH FLORIDA HOUSING AS WELL.
BUT WHISPERING WOODS, WHISPERING PINES HAD THE SAME SITUATION.
THEY HAVE SINCE SOLD BUT PRIOR TO THAT, TWO, THREE YEARS AGO, FLORIDA HOUSING CAME IN. THEY WERE HAVING TREMENDOUS AMOUNT OF FINANCIAL ISSUES AS WELL AND THEY BACKED OFF, DID SOME THINGS TO HELP THEM. AND THAT TOOK THEM TO ANOTHER THREE YEARS DOWN THE ROAD. BUT THE OTHER THING THEY DIDN'T DO, WHICH I WOULD OPPOSE TO THIS COMMITTEE, IS THAT THEY DID NOT KEEP THEM AFFORDABLE WHEN THEY SOLD THEM.
TWO THINGS I WOULD SAY, IS ONE, IS THAT IS PUT IN PLACE OR SHOULD BE PUT IN PLACE THAT THESE APARTMENTS BECOME AFFORDABLE FOR THE LIFE OF THE APARTMENTS.
EVEN IF THEY ARE SOLD OR TRANSFERRED TO SOMEONE ELSE.
AND I DO BELIEVE, BY FORGIVEINGG THIS IT WILL HELP US IMMENSELY.
I HOPE THAT ANSWERS YOUR QUESTION.
>> IN MY MIND, THIS IS JUST ME SPEAKING.
>> YES, SIR I UNDERSTAND. >> IF THE FLORIDA HOUSING FINANCE CORPORATION WOULD EVENTUALLY OR FORGIVE THE BULK OR THE VAST MAJORITY OF YOUR DEBT, I THINK THE BOARD WOULD BE AT LEAST WILLING TO DISCUSS THAT MORE.
IF THAT MAKES SENSE. >> THEY WILL NOT.
>> THEY WILL NOT? >> THEY WILL NOT DO THAT.
I CAN TELL THAT YOU. WE HAVE BEEN IN THREE OR FOUR MEETINGS AND THEY WILL NOT DO THAT.
LET ME EXPLAIN SOMETHING TO YOU ABOUT AFFORDABLE HOUSING, EVEN A PROJECT THAT WOULD BE BUILT IN HASTINGS.
THESE UNITS HAVE JUST A TERRIBLE PROBLEM, AFFORDABLE HOUSING.
TRYING TO KEEP THEM AFFORDABLE, AND ESPECIALLY TO THE OWNERS.
TRYING TO KEEP THEM AFFORDABLE BUT YET MAKE A PROFIT.
ATTORNEY GENERAL SAID SOMETIME AGO, IS THAT THESE PROJECTS, AND THIS IS IN WRITING, DON'T BRING IN A LOT OF MONEY.
AND THEY DON'T. UNBE KNOWN TO AT THE TIME, IT LOOKED GOOD ON PAPER BUT REALITY IS WHEN YOU ARE RENTING THREE BEDROOMS AT $630 A MONTH, IT JUST DOESN'T WORK VERY WELL, FROM $630 TO 800. WE PROVIDE AN INVALUABLE SERVICE TO THE COMMUNITY. AND WORKFORCE HOUSING.
BUT UNFORTUNATELY, IT DOESN'T BRING IN THAT MUCH MONEY.
AND THAT'S WHERE WE ARE TODAY. SO WE KEEP IT ALIVE BY DOING WHAT WE DO. AND LIKE RIGHT NOW WITH THE CORONAVIRUS, SOME PEOPLE HAVE BEEN LAID OFF.
THEY PAY WHAT THEY CAN PAY. AND WE KEEP GOING.
BUILDERS SAY SOMETIME WE ARE A 501(C)3 I JUST DIDN'T KNOW IT
YET HERE WE ARE. >> MR. MAXWELL, I HAVE A
QUESTION FOR YOU. >> YES, SIR.
>> WHAT WOULD LAP IF THE BOARD FORGIVES THAT LOAN FOR YOU ON THAT PARTICULAR PROPERTY, THESE PROPERTIES AND YOU EVENTUALLY
SELL THOSE PROPERTIES? >> WELL THAT'S ANOTHER PROVISION YOU COULD PUT IN PLACE. IF WE DO SELL IT, THEN WE'RE OBLIGATED TO PAY THE FUNDS. AND I WOULD SUBMIT TO THAT.
BUT LOOK, WE'RE NOT TRYING TO ESCAPE OUR OBLIGATION.
WE SIMPLY FEEL LIKE WHEN TIMES ARE HARD LIKE THEY ARE, WE ARE THE ONLY COMPLEX THAT YOU LOOK AT WHERE YOU CAN GET A THREE BEDROOM, TWO BATH APARTMENT. WE HOUSE COUNTY EMPLOYEES, INDIVIDUALS THAT DOESN'T WORK FOR THE MUNICIPALITY BUT WE DEAL WITH INCOMES AT 30 AND 60%. WE ARE FIGHTING WITH FLORIDA HOUSING TO GO UP TO 80% ABOVE MEDIAN INCOME.
AND THEY DON'T WANT TO DO IT. WE CATER TO THE LOW AND VERY LOW INCOME FAMILIES ONLY AT THIS TIME.
AND HAVE BEEN DOING THIS FOR THE PAST TEN YEARS.
SO ALL I'M SAYING HERE, WE WOULT IN, IN PLACE THAT WAY, IF WE DO SELL, AND WE MAKE A PROFIT OFF OF IT, THEN WE PAY THE LOAN, SIMPLE AS THAT. AND I THINK THAT WAY, WE CAN
[00:45:01]
ACCOMPLISH BOTH GOALS. YOUR GOAL AND OUR GOAL.>> WELL, IT DOESN'T SEEM MUCH DIFFERENCE THAT WE WORKED WITH
YOU FOR A LONG TIME. >> YES, SIR, YOU DID.
>> WE'RE PRETTY MUCH A SILENT MORTGAGE IF YOU WOULD.
>> YES, SIR. >> SO WE HAVEN'T ABANDONED YOU
AS FAR AS THE LOAN. >> NO, SIR.
>> WE HAVEN'T HURT YOU WITH IT AS WELL.
SO I DON'T SEE HOW IT IMPROVES YOUR, HELPS OR HURTS YOU IF THE
LOAN IS STILL THERE. >> BUT I THINK THE LOAN THERE --
>> ESPECIALLY SINCE YOU MENTIONED THAT IF YOU DID SELL,
YOU -- >> YES, SIR, PUTTING THAT STIPULATION IN THE CONTRACT IF YOU SO FELT TO FORGIVE ME FOR THE LOAN. UNTIL SUCH TIME.
>> I THINK YOU'LL EVENTUALLY HAVE TO FACE THE FACT THAT THE RENTS WILL HAVE TO GO UP. JUST BECAUSE OF HOW FAST THE COMMUNITY'S CHANGING. AND GIVE YOU AN IDEA, IN THE 1989-90 I BUILT MY HOUSE FOR $1 YOU$160,000 INCLUDING THE LOT.
WHICH IS LAUGHABLE TODAY BECAUSE IT'S IN MARCH CREEK.
AT THAT TIME IT WAS A LOT OF MONEY.
THE COMMUNITY HAS CHANGED SO FAST AND THE LOCATIONS AND EVERYTHING. IS ALESMED HAMILTON WAS A CITY, THEY DESIGNED EAST PATTERSON. YOU HAVE A CITY THAT GROWS IN RINGS. THE FAILURE WAS, THE CITY DECAYS ON THE CENTER AND ON THE WAY OUT.
WHICH IS THE WAY IT IS TODAY. IN OUR CASE THE REVITALIZATION OF DOWNTOWN AND ANYWHERE CLOSE TO THE CITY IS ACTUALLY GROWING AGAIN AND WE ARE STILL GROWING IN RINGS.
YOU HAVE AN COMP EXCELLENT LOCA, CHANGING FAST.
AND PROBABLY FOR THE LOCATION IF YOU WERE IN THE FAIR MARKET IT WOULD BE A TOTALLY DIFFERENT RENT THAN WHAT YOU RECEIVED.
>> I THINK THERE'S A BIGGER, MUCH LARGER PICTURE HERE.
THE LARGER PICTURE IS WORKFORCE HOUSING.
IF -- AND THEY TALK ABOUT ON THE BALLOT COMING UP, $15 AN HOUR.
IF THE SMALL BUSINESSES CANNOT AFFORD $15 AN HOUR, AND THINGS OF THAT NATURE, YOU HAVE OUR TENANTS THAT MIGHT WORK FOR MCDONALD'S, BURGER KING, THINGS OF THAT NATURE, D AND B, THOSE EMPLOYEES AND WHAT WE OFFER IS INVALUABLE.
SO WHAT YOU HAVE TO DO IS LOOK LONG TERM DOWN THE ROAD.
WHAT ARE YOU WILLING TO DO FOR AFFORDABLE HOUSING.
I'M CONFIDENT IN WE WERE TRYING TO BUILD THESE UNITS TODAY I WOULD NOT DO IT BECAUSE OF THE PRICE POINT.
WE WOULDN'T BE ABLE TO DO WHAT WE DO.
YOU HAVE TO AT SOME POINT NOT ONLY US, EVEN DEALING WITH NEW CONSTRUCTIONS, WE HAVE TO HOLD THE LINE ON MULTIFAMILY AT LEAST MULTIFAMILY RENTS. I MEAN YOU LOOK AT 207, $2200 A MONTH. YOU LOOK RIGHT HERE ON U.S. 1, $1600 FOR A THREE BEDROOM. WE'RE HALF THAT COST.
WE'RE AT $800 AND WE PROVIDE NICE AFFORDABLE SAFE APARTMENTS.
AND ALL I'M SAYING, WHETHER THAT PART OF THE INDUSTRY CHANGES, WE HAVE TO BE THE TREND SETTERS. THIS COMMITTEE.
AND THE COUNTY COMMISSIONERS AS A WHOLE.
BECAUSE WHAT YOU'RE GOING TO END UP WITH LIKE HILTON HEAD, THEY HAVE TO BUS THEIR WORKFORCE EMPLOYEES IN FROM TENNESSEE AND SURROUNDING PLACES COSTING THEM A FORTUNE TO DO THAT.
SO WE HAVE TO BE VISIONARIES AND WORK INTO THE FUTURE.
AND ONE THING IS HOLDING A PRICE ON MULTISYSTEM.
WE UNDERSTAND THAT EVERYONE WON'T BE ABLE TO GO OUT AND AFFORD A HOME. I HAVE TENANTS HAD HAVE BEEN WITH ME TEN, 11 YEARS, OKAY? WE HAVE ELDERLY IN THAT COMPLEX.
THEY ONLY BRING IN 11, $1200 A MONTH SOME OF THEM.
AND SO YOU HAVE TO LOOK AT A BROADER PICTURE, I THINK OUTSIDE OF THE REALM OF WHAT WE OFFER. AND IF IT KEEPS GOING THE WAY IT'S GOING, I MEAN WHERE ARE THOSE FAMILIES WITH THE VERY LOW INCOME AND LOW INCOME FAMILIES ACKNOWLEDGE WHERE ARE THEY GOING ,WHERE ARE THEY GOING TO GO? WE JUST THROW THEM IN A HOLE? I MEAN NO. WE HAVE TO BE COMPASSION AT AND PROVIDE AFFORDABLE HOUSING, IT'S WHAT OUR FLORIDA STATUTE
[00:50:03]
SAYS. SO I MEAN, IT'S JUST DEPENDINGHOW YOU LOOK AT THINGS. >> I'VE GOT A QUESTION.
LOOKING AT THE FINANCIAL STATEMENTS THAT WERE SENT IN, AND THOSE ARE THE LONG TERM DEBT, IT APPEARS THAT THERE ARE THREE (INAUDIBLE) WHICH ZERO PAYMENT, ZERO INTEREST AND JUST BALLOON PAYMENTS. AND THERE'S ONE THAT'S A LITTLE OVER LOOKS LIKE $110,000 THAT REQUIRES INTEREST-ONLY WITH A BALLOON AT THE END. SO IT SEEMS TO ME THAT ON THAT AMOUNT, THE AMOUNT PER YEAR IS PROBABLY BASE NOW WHAT, IT'S PRIME PLUS 1, SO THAT WOULD BE TWO TO $3,000 PAYMENT WOULD BE? THAT'S THE ONLY THING THAT REALLY IS DUE TO THE HFA AT THIS POINT UNTIL BALLOON PAYMENTS ARE DUE.
>> MR. CAMENT, I APOLOGIZE. KALTER, MR. MAXWELL WAS HAVING DIFFICULTY HEARING THE QUESTION BECAUSE I THINK THE
DOGS WERE BARK. >> MY QUESTION IS FROM THE FINANCIAL INFORMATION THAT HE SENT, THERE APPEARS TO BE THREE LOANS WITH THE HFA. TWO OF WHICH REQUIRE ZERO MONTHLY PAYMENT, ZERO INTEREST AND JUST A BALLOON PAYMENT IN THE FUTURE. THERE'S ONE THAT'S FOR ABOUT, SEEMS LIKE IT'S A PRINCIPAL OF ABOUT $110,000 THAT REQUIRES THAT THERE BE INTEREST PAID ONLY OF PRIME PLUS 1% WITH A BALLOON PAYMENT DUE AGAIN IN 2026. SO MY QUESTION IS, IS THAT BASED ON THAT AMOUNT IT SEEMS THAT THE ONLY PAYMENTS COMING TO THE HFA WOULD BE SOMEWHERE WHERE THE BASE NOW IS WHAT, SOMEWHERE IN THE 3,000 PLUS OR MINUS RANGE PER YEAR FOR THAT LOAN.
SO IS THAT THE ONE THAT IS BEING ASKED TO BE FORGIVEN? AND IT DOESN'T SEEM THAT IT CHANGES THE FINANCIALS THAT
MUCH. >> WELL, IF WE ARE TRYING TO PAY THAT LOAN OFF WHEN IT BALLOONS, WE WOULDN'T BE ABLE TO DO THAT.
AND AS FAR AS YOU WERE SAYING $3,000 PER YEAR IS WHAT IS SHOWING, IS THAT AN INTEREST-ONLY? AND STILL WE HAVE TO MAKE THAT BALLOON PAYMENT.
>> WELL, THAT'S CORRECT. BUT THOSE ARE THE TERMS OF THE THREE LOANS. AND, YOU KNOW, I GUESS THE QUESTION BECOMES, IS SINCE THE OTHER TWO HAVE NO CARRYING COSTS RIGHT NOW, ON THE PROJECT, AND THIS ONE IS MINIMAL, AND YOU'RE SAYING THAT WE ARE AT LEAST TRYING TO PROTECT THAT IF THE PROJECT SHOULD BE SOLD, THEN AT LEAST THOSE AMOUNTS WOULD BECOME DUE. I'M JUST TRYING TO UNDERSTAND HOW THE REMOVAL OF ONE AT A COST OF ABOUT $3,000 DOES -- REALLY DOES ANYTHING FOR PROJECT ITSELF.
>> WELL, THERE IS A NOTE ON THE $200,000 AND WE SENT THE INFORMATION. THAT WAS SUPPOSED TO HAVE BEEN A GRANT. AND IT SAYS THAT IN THE DOCUMENTS. IS THAT THE ONE THAT YOU ARE
SPEAKING OF AS WELL? >> NO, I'M LOOKING AT THE DOCUMENT THAT YOU SENT AND HAS THREE LOANS, ONE LOOKS LIKE AN AMOUNT OF $383,000, ANOTHER ONE OF $37,500, BOTH OF WHICH ARE ZERO PAYMENTS DUE AND JUST WITH BALLOONS DUE AT THE ENDS OF MARCH OF 2026. THE ONE I'M TALKING ABOUT THAT ONLY HAS SOME REALLY CASH CARRYING COSTS AT THIS POINT, AT LEAST ON THIS INFORMATION, SAYS IT'S $110,000, WHERE THE RATE TO BE PAID IS PRIME PLUS 1%. THEN AGAIN, THE BALLOON IS DUE AT THE SAME TIME AS THE OTHER TWO.
AND SO I WAS SAYING REALLY THE CARRYING COST OF THE LOANS AT THIS POINT IS ABOUT $3,000 A YEAR.
>> RIGHT, I UNDERSTAND WHAT YOU ARE SAYING ON THOSE.
AND IT'S STILL THAT FUNDS THAT WE CAN PUT BACK IN ON REPAIRS AND ALL. AND IF YOU LOOK AT THE STATEMENT, I DON'T THINK, ONCE AGAIN, I DON'T THINK, I THINK
[00:55:05]
PUTTING LANGUAGE IN THE CONTRACT, PUTTING LANGUAGE IN THE CONTRACT IF WE DID SELL, WE WOULD HAVE TO PAY THOSE LOANS OFF. I THINK WOULD BE THE SAFETY NET.>> AND THAT IS ESSENTIALLY WHAT --
>> ON OUR BOOKS CURRENTLY, I'M ONLY SHOWING THE $110,580 LOAN AND THE LOAN FOR $37,500 YOU'LL NOTICE ON PAGE 8 OF THE COMPILED STATEMENTS IN THE NOTES, THE THIRD NOTE DOWN THAT THE CHAIR WAS SPEAKING OF SAYS ST. JOHNS COUNTY HOUSING FINANCE AND IT ENDS THERE. I DON'T KNOW WHERE THE THERE.
HARRY DO YOU KNOW? >> NO, SIR, DO I NOT.
>> I DON'T THINK THAT'S PART OF THIS SET OF FINANCIAL STATEMENTS ON THE HOUSING FRN AUTHORITY SIDE.
I'LL GO BACK AND DO RESEARCH FOR THAT.
>> IT MAY BE NECESSARY FOR US TO OGO THROUGH SOME OF OUR PAPERWORK. SOME OF THESE LOANS ORIGINATED SEVERAL TIMES AGO. I HAVE TWO WITH HUGE BOXES OF FOLDERS PERTAINING TO MR. MAXWELL'S PROPERTY.
IT MAY BE AN OPPORTUNITY TO GO BACK THROUGH OUR PAPERWORK AND LOOK THROUGH WHATEVER AGREEMENTS WE HAVE ARCHIVED.
AND TO ADD LIGHT ON IT IN 2019, HARRY MADE THREE PAYMENTS THAT TOTALED $4584, THE LAST OF WHICH WAS MADE SOMEWHAT IN THE BEGINNING OF MARCH OF 2019, HASN'T MADE A PAYMENT AFTER THAT, THOSE TOTAL $4584, I HAVEN'T DONE ACCRUALS FOR THIS YEAR, JUST THE FACT THAT I WANTED TO SEE WHAT THE BOARD DID. AS ME BEING A CPA LOOKING AT HIS FINANCIAL STATEMENTS WOULD BE THE CASH FLOW STATEMENT, WHICH IS REPRESENTED, ON PAGE 5 THAT SHOWS BASICALLY NET CASH FROM HIS OPERATIONS, SECONDLY THE ONLY THING I WOULD ADD IS IF HARRY WOULD TELL WHAT THE HIGHEST AND BEST USE VALUE OF THE PROPERTY IS FOR YOU TO GIVE GUIDANCE ON WHETHER YOU SHOULD FORGIVE THE LOAN OR NOT. THAT'S ALL I HAVE TO SAY.
OPERATIONS WERE BASED ON CASH FLOW, NOT BASED ON ASSETS AND LIABILITIES, THEY'RE BASED ON PAYMENTS AND IN FLOWS AND OUTFLOWS, SO FOR HIS ABILITY TO CONTINUE AS A GOING CONCERN OF COURSE INCREASING RENTS IS ONE WAY OF GOING ABOUT IT OR REDUCING EXPENSES. REDUCING EXPENSES WOULD BE THE NOTE PAYMENT TO THE AUTHORITY. REDUCING THE DEBT WOULD NOT HELP HIS CASH FLOW ONE BIT AT ALL. UNTIL THE TERM OF THE BALLOON COMES DUE. AND I WOULD THINK THAT THE AUTHORITY AT THAT POINT WOULD REVISIT WHETHER OR NOT TO OFORGIVE THE LOAN. THOSE ARE MY THOUGHTS.
>> AND AS FAR AS THE 300 AND SOME,000 LOAN, I THINK THAT'S FLORIDA HOUSING, THAT'S NOT ANYTHING TO DO WITH ST. JOHNS.
I THINK HE PUT THAT IN THE WRONG SPOT.
>> I REALIZE THAT THIS CONVERSATION HAS GONE ON QUITE SOME TIME BUT I'LL BE HAPPY TO GO BACK AND LOOK THROUGH OUR PAPERWORK TO BRING SOME SORT OF CONFIRMATION TO THE BOARD NEXT
MONTH. >> THAT WOULD BE APPRECIATED
JOE. >> I JUST HAVE ONE QUESTION FOR HARRY AND THAT IS, YOU'RE REGULATED BY FLORIDA HOUSING ON HOW MUCH YOUR RENTS CAN BE, IS THAT CORRECT?
>> THAT'S CORRECT. THERE IS CAPS.
>> YOU CAN'T JUST GO RAISE THE RENTS.
>> NO MA'AM. >> AND SAY I GOT TO COVER MY
NOTE. >> I'VE BEEN FIGHTING WITH THEM ON THE 80% AND THEY DON'T WANT TO DO IT BECAUSE OF THAT VERY LOW AND LOW INCOME MARKET. WE ARE THE ONLY ONE --
>> HOW CLOSE ARE YOU TO THE CAP IN THE RENTS THAT YOU CHARGE?
>> MY LIMITS IS 980, WHICH WE WOULDN'T GET -- THEY COULDN'T AFFORD IT. THEY JUST CAN'T AFFORD TO DO IT.
I MEAN THE PEOPLE COULD NOT AFFORD TO PAY IT.
THE TENANTS. >> AND WHERE ARE YOU IN THE
RENT? >> WE ARE AT 630 AND 800.
630 IS VERY LOW INCOME AND 800 IS THE LOW.
>> SO BASICALLY WE'RE GOING TO TABLE THIS UNTIL NEXT MONTH?
>> I WOULD PREFER IT. I CAN ALSO -- WE HAVE SOME CONTACTS WITH THE FLORIDA HOUSING FINANCE GROUP AND I COULD SEE IF WE COULD GET SOME OF -- SEE WHAT THEY HAVE
SO I MAKE THE MOTION WE TABLE THIS UNTIL NEXT MONTH AND ADDRESS IT AGAIN WITH MORE INFORMATION.
I HAVE A MOTION AND SECOND. IS THERE ANY FURTHER DISCUSSION? IF NOT ALL CALL THE MOTION. ALL THOSE IN FAVOR OF TABLING IT UNTIL NEXT MONTH.
>> ANY OPPOSED? OKAY MOTION CARRIES.
>> THANK YOU. >> THANK YOU MR. MAXWELL.
>> YOU'RE WELCOME. THANK YOU ALL.
[01:00:02]
HAVE A GOOD EVENING. >> SO NEXT ORDER OF BUSINESS IS UPDATE ON THE OFFERS FOR THE HFA LOTS.
>> CERTAINLY. I'M GOING TO ACTUALLY HAVE MS. VOORHEES SHE HAS IS EXTENSIVE BACKGROUND, KIND OF ADDRESS SOME OF THE CORRESPONDENCE THAT HAS COME THROUGH THE OFFICE. ALSO TALK TO MR. KOMANDO A BIT OVER THE LAST WEEK. I THINK IF YOU'LL REMEMBER CORRECTLY, THE BOARD GAVE ME THE DIRECTION TO GO AHEAD AND MOVE FORWARD WITH SIGNING OR APPROVING ANY OF THE NECESSARY ARRANGEMENTS OR AGREEMENTS. WE DID HAVE SOME OFFERS THAT I DIDN'T THINK WERE ADEQUATE. WE KIND OF WENT BACK TO THE DRAWING BOARD AND LATE YESTERDAY WE RECEIVED -- WE KIND OF DID A HEIST AND BEST OFFER ON THE LOTS.
I THINK WE GOT TO A PLACE THAT WE WERE COMFORTABLE.
HE ACTUALLY SENT OVER THE OFFER SOMETIME THIS AFTERNOON.
I HAVEN'T HAD AN OPPORTUNITY TO SIGN IT BECAUSE OF SOME OF THE OTHER ACTIVITIES THAT HAVE BEEN GOING ON IN THE OFFICE.
I'LL LET JULIE KIND OF BRIEF YOU ON THAT.
IT SEEMS LIKE WE ARE GOING FORWARD.
I WILL TELL YOU AND JULIE CAN CORRECT ME IF I'M WRONG, I THINK THAT UNLESS SOMEWHERE CAME BEFORE THE LOT THEY TALKED ABOUT SELLING ALL THE LOTS AT ABOUT 210 IF MY NOTES ARE CORRECT BUT IT LOOKS LIKE THE OFFER IS ABOUT 275.
SO THAT'S TO ME REALLY GOOD NEWS AS FAR AS GENERATING REVENUE FOR BOARD. SO JULIE IF YOU WANT TO JUST KIND OF GO OVER SOME OF THE CONVERSATIONS YOU HAD WITH
MR. LELAND TODAY. >> ACTUALLY THE HFA RECEIVED TWO OFFERS, THE FIRST WAS 275,000 WITH $20,000 DOWN PAYMENT AND A CLOSE DATES WITHIN 60 DAYS. THE OTHER CREDIT OFFER WAS $285,000 WITH A $2,000 DOWN PAYMENT WITH THE CLOSING WITHIN 45 DAYS OR SO. AND IT WAS RECOMMENDED BY THE REAL ESTATE AGENT THAT WE GO WITH THE WITH ONE WITH THE LARGER DOWN PAYMENT. AND THAT'S THE ONE THAT I THINK JOE WAS REFERRING TO, IS THAT CORRECT JOE? SO THOSE ARE THE TWO OFFERS THAT WE HAD GOTTEN.
WE HAD GOTTEN ONE EARLIER LAST WEEK THAT HAD COME IN AT 175,000 THAT WE JUST PASSED ON. SO THESE ARE THE TWO ON THE
TABLE RIGHT NOW. >> SO WHAT I PLANNED ON DOING WAS BRING UP, GO AHEAD AND SIGN OFF ON THE 275 AND BRINGING YOU BACK A FINAL REPORT, MAYBE HAVE COME AND SPEAK TO YOU AT THAT
MEETING TOO. >> WHAT IS THE DIFFERENCE IF ARE GOING TO CLOSE IN 60 DAYS, 45 DAYS, DOWN PAYMENT ACTUALLY MAKES? WE'RE NOT FINANCING THESE ARE
>> SO IF THEY PUT $2,000 DOWN AND CLOSE IN 45 DAYS, FOR MORE MONEY, WHY IS IT MORE VALUABLE TO STAY LESS MONEY BECAUSE WE'RE GOING TO CLOSE IN 60 DAYS BECAUSE THEY'RE PUTTING MORE MONEY DOWN? I DON'T SEE THE VALUE THERE.
>> I THINK THE IDEA WAS WE FELT LIKE THE DEPOSIT WAS KIND OF LOWER THAN THOSE STANDARD DEPOSITS --
>> NOT ME. >> I THINK THE FEELING WAS THAT THE DEPOSITS WERE LOWER THAN WHAT WE TYPICALLY SEE FOR THIS TYPE OF PROPERTY. I THINK IF I REMEMBER CORRECTLY IT WAS THAT ONE AND A HALF PERCENT OR SOMETHING ALONG THOSE LINES AND WE TYPICALLY LIKE TO SEE A LITTLE BIT MORE THAN THAT.
>> WELL I'M NOT SURE UNLESS IT IS NOT A CREDIBLE OFFER OF 285, WHY THE DOWN PAYMENT REALLY MATTERS.
WE CAN'T TOUCH THE DOWN PAYMENT. WE CAN'T SPEND THE DOWN PAYMENT.
IT JUST SITS THERE UNTIL WE CLOSE, IN 45 DAYS UNLESS IT --
>> WAS IT A CASH OFFER ALSO? >> YES.
BOTH WERE CASH OFFERS. >> GOOD POINT.
WHY COULDN'T WE ASK THE 285 TO PUT UP MORE MONEY?
>> BECAUSE WE PERCEIVED THAT A NUMBER OF OFFERS AND WE DID THE FINAL AND BEST OFFER AT 5:00 YESTERDAY, IS WHAT MR. LELAND
TOLD ME. >> IF THEY ARE BOTH CREDIBLE OFFERS I DON'T SEE WHY THE LOWER OFFER IS BETTER JUST BECAUSE OF
THE DOWN PAYMENT. >> WELL, I HAVEN'T SIGNED
ANYTHING -- >> WE GOT TWO REAL ESTATE BACKGROUND HERE. EXPLAIN.
>> I AGREE WITH YOU. >> UNLESS OF COURSE THERE'S SOMETHING ABOUT THE 285 OFFER THAT WE DON'T KNOW.
>> CERTAINLY, I CAN REPORT BACK TO THE BOARD, I HAVEN'T SIGNED ANYTHING YET, I CAN GO BACK AND SPEAK TO MR. LELAND.
>> WE CAN DO A COUNTER AND SAY YES WE WANT MORE MONEY DOWN.
[01:05:01]
I'M NOT SURE THAT'S A BENEFIT. IF THE DEAL FALLS APART I THINK THERE WOULD BE A SCRABBLE OVER THE DOWN PAYMENT DEPOSIT.>> IF I'M NOT MISTAKEN, THAT OFFER CAME IN ORIGINALLY AT 275 WITH A $2,000 DOWN PAYMENT. AND I BELIEVE MR. LEEMAN WENT BACK INTO THEM AND THEY CAME BACK WITH $2,000, ON THE
PURCHASE OF THE LOTS. >> I'M KIND OF WITH ROBERT ON THIS. THE DOWN PAYMENT, THE ONLY TIME THAT GETS TRICKY IS IF THEY GO TO CONTRACT AND DEFAULT.
THEN THEY WOULD DEFAULT ON THEIR DEPOSIT.
AND THEN IT WOULD STILL BE AN ARGUMENT.
IT'S LIKE $10,000 MORE, IN AN OFFER, IS A LOT OF MONEY.
FTC COULD PUT IT IN -- YOU KNOW, $10,000 MORE AND CLOSE IN 45 DAYS? I DON'T KNOW, I WOULD BE REAL -- I GUESS MY QUESTION WOULD BE WOULD IS THE BUYER ARE THEY
LOCALITY OR OUT OF THE AREA? >> LEGACY REALTY INVESTMENTS LLC AND THE OTHER ONE IS CLDG LAND LLC.
>> WHERE IS LEGACY REAL ESTATE DO THEY GIVE AN ADDRESS ON
>> THIS ONE IS -- WHERE DID I SEE IT ON HERE, OUT OF JACKSONVILLE. I DON'T KNOW.
>> I THINK THE OBJECT OF SELLING THE LOTS WAS TO GET MONEY FOR THE OPERATION OF THIS HFA. AND SO IF THAT'S THE CASE, THEN THE 285 WOULD BE A MORE LOGICAL CHOICE THAN THE $275,000 FOR THE
VERY REASON. >> WELL, I COULD CERTAINLY GO BACK AND QUAY IT TO MR. LELAND IF THAT IS WHAT THE BOARD WANTS
ME TO DO. >> HOW ARE WE GOING TO DO THIS? IF THEY ARE GOING TO CLOSE IN 45 DAYS WE WOULDN'T HAVE A MEETING
FOR 30 DAYS. >> I THINK IN THE PAST THE BOARD GAVE ME THE DISCRETION TO MOVE FORWARD.
IF ANYTHING NEEDS TO BE SIGNED MR. KALTER HAS MADE HIMSELF MORE THAN AVAILABLE TO COME SIGN DOCUMENTS FOR US AS CHAIRMAN.
>> MR. KOMANDO WHAT DO YOU THINK?
>> I THINK YOU SHOULD ASK THE HIGHER OFFER TO PUT MORE OF A
DOWN PAYMENT IN. >> WOULD YOU LIKE ME TO DO THAT?
>> HOW MUCH WAS THE DOWN PAYMENT FOR THE ONE FOR $275,000?
SO THINK WE COULD HAVE AT LEAST 20,000.
WITH THE OTHER ONE, WE'RE BETTING THAT THEY'RE GOING TO CAN STAY AT 10,000 MORE BUT IF THEY WALK AWAY, THEN WE'RE OUT
$18,000 DIFFERENCE. >> IT'S ALWAYS A BATTLE OVER ESCROW. IT'S NEVER THAT EASY.
>> I WAS GOING TO ASK, DID MR. LELAND SAY WHY THEY RECOMMENDED THE ONE AT THE LOWER AMOUNT?
>> BECAUSE OF THE HIGHER DEPOSIT.
IF. >> BECAUSE YES, I BELIEVE IT WA.
>> ARE YOU LOOKING FOR A MOTION? >> YES.
>> I WOULD MOVE THAT THE $285,000 CONTRACT BE ACCEPTED WITHOUT FURTHER DISCUSSION ABOUT DOWN PAYMENT.
MAKES IT A CLEANER THING JUST TO GO AHEAD AND ACCEPT IT AS-IS, AT 285. THAT'S MY MOTION TO ACCEPT AT 285. SALES PRICE.
>> I THINK I WOULD SECOND THAT. >> ANY FURTHER DISCUSSION? OKAY THEN I'LL CALL THE MOTION. ALL THOSE IN FAVOR ACCEPTING THE OFFER OF $285,000 WITH A $2,000 DOWN PAYMENT.
OKAY THEN THE MOTION CARRIES. NEXT ORDER OF BUSINESS, OWN A HOME OPPORTUNITY. ANY UPDATE?
>> NO, I HAD A BRIEF DISCUSSION WITH MR. RENOVICH ABOUT TWO WEEKS AGO AND IT APPEARS THAT THERE WILL BE TWO NEW LOAN ORIGINATIONS THAT WILL BE IN THE PROGRAM THAT WILL GENERATE FUNDS FOR US. I WILL ALSO TELL US THAT HE COORDINATED, THAT THEIR OFFICE COORDINATED WITH MR. RAYMOS AND THEY DID A WEBINAR. I REMEMBER -- I THINK THEY HAD
[01:10:05]
ROUGHLY 1 TEN REGISTRATIONS FOR THE WEBINAR.IN ACTUAL ATTENDANCE I WANT TO SAY 65, AND MRS. DENHEIM IS WORKING ON ARCHIVING THE WEBINAR SO WE CAN CONTINUE DO SHARE IT THROUGHOUT ST. JOHNS COUNTY. I THOUGHT 65 REALTORS I THINK IT WAS A TUESDAY MORNING I THOUGHT WAS PRETTY IMPRESSIVE.
>> ABSOLUTELY. OKAY THANK YOU.
>> I DON'T REMEMBER THE NUMBER BEING THAT HIGH IN ATTENDANCE.
BUT THEY HAD A GOOD TURN OUT AND WE RECORDED THAT.
WE COORDINATED WITH THE PROGRAM PEOPLE WHO DEVELOPED THE PROGRAM SO THAT WE COULD OFFER THAT LATER FOR THE PEOPLE WHO COULDN'T MAKE THAT PRESENTATION AND THEY SAID YES.
SO WE'VE GOT IT RECORDED AND WE'LL MAKE IT AVAILABLE AT A LATER DATE. WE DON'T WANT TO DO IT TWO WEEKS FROM NOW SINCE THE FIRST ONE WAS JUST A COUPLE OF WEEKS AGO.
BUT WE WILL MAKE IT AVAILABLE AND WE WILL HAVE A HIGHER
ATTENDANCE THEN. >> THANK YOU FOR WORKING WITH MY STAFF ON THIS MR. RAYMOS, I APPRECIATE IT.
>> THAT'S THE LAST OF THE OLD BUSINESS.
I'LL TAKE A MOTION TO ADJOURN. >> MOTION TO ADJOURN.
>> DO I HEAR A SECOND? >> I SECOND.
EVERYBODY.
* This transcript was compiled from uncorrected Closed Captioning.