Work Force Housing AgreementAGREEMENT TO TERMINATE
WORKFORCE HOUSING DEVELOPMENT AGREEMENT
This Agreement to Terminate Workforce Housing Development Agreement
( "Agreement ") is entered into this 28`h day of January, 2013, by and between the City of Salina,
Kansas, a municipal corporation duly organized and existing under the laws of the State of
Kansas ( "City "), and TWI Development, Inc., a corporation organized and existing under the
laws of the State of Kansas ( "Developer ").
Recitals
A. The City and the Developer entered into a Workforce Housing Development
Agreement dated July 23, 2012 ( "Development Agreement ") setting forth the terms and
conditions of the parties' proposed collaborative development of an affordable workforce
housing development project in the City of Salina.
B. Due to changed circumstances, the parties desire to terminate the Development
Agreement, and all obligations thereunder, in accordance with the terms and conditions set out
herein.
FOR AND IN CONSIDERATION of the mutual and reciprocal promises and
agreements set forth herein, the parties agree as follows:
1. Termination of Development Agreement. The City and the Developer hereby
agree that, as of the date hereof, the Development Agreement shall be terminated in its entirety,
and shall be of no further force or effect.
2. No Obligations. The City and the Developer acknowledge and agree that, as of
the date hereof, neither party shall have any further obligation to the other pursuant to the
Development Agreement.
3. Kansas Law Applies. This Agreement and its validity, construction, and
performance shall be governed by the laws of Kansas.
4. No Oral Agreements. This Agreement constitutes the entire agreement between the
parties and there are no representations, warranties, conditions, or agreements other than those
expressly set forth herein. No other agreement, statement, promise, warranty, or representation
made by any party to this agreement that is not in writing and signed by all parties to this
Agreement shall be binding.
{Signature Page Follows)
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their
duly authorized officers on the day and year first above written.
ATTEST:
By. ICU
Lieu Ann Elsey, CMC, City C rk
CITY OF SALINA, KANSAS
TWI DI
STATE OF KANSAS, COUNTY OF SALINE, SS:
This instrument was acknowledged before me on jaNAA." I 2013,
by Norman M. Jennings, Mayor of the City of Salina, Kansas, and Lieu Ann Elsey, CMC, City
Clerk for the City of Salina, Kansas.
I POOR WE I
i%
My appiointment expires:
SHANDI L. WICKS
` Notary Public - State f Kansas -
MyAppt.Expires
STATE OF KANSAS, COUNTY OF SALINE, SS:
This instrument was acknowledged before me on 2013,
by Todd Welsh, as President of TWI Development, Inc
1i�4 C
Notary Public
My appointment expires:
y` LI.MDA C. A1Dt�EW
[ £ Notary Public • stater Kansas
WORKFORCE HOUSING DEVELOPMENT AGREEMENT
This Workforce Housing Development Agreement (together with Exhibits A -C hereto,
collectively, the "Agreement ") is entered into this 28'h day of January, 2013, by and between the
City of Salina, Kansas, a municipal corporation duly organized and existing under the laws of the
State of Kansas ( "City "), and Todd Welsh, Inc., a corporation organized and existing under the
laws of the State of Kansas ( "Developer ").
Recitals
r
A. The City has adopted a workforce housing program designed to promote
moderately priced homes for residents of the City of Salina.
B. In furtherance of this program, the City has secured federal and regional grant
funds to assist with the cost of public infrastructure improvements; and the City intends to use
such grant funds to reduce the overall cost of developing an affordable workforce housing
development project in the City of Salina.
C. In particular, the City is the recipient of a Special Infrastructure Grant ( "EPA
Grant ") from the Environmental Protection Agency ( "EPA ") in the amount of $243,000.00 ( "the
EPA Funds ") which funds may be used to finance certain water and sanitary sewer infrastructure
improvements for the proposed workforce housing development project, subject to a matching
requirement requiring at least 45% of the total infrastructure cost to be funded by a local
matching source.
D. The City is also the recipient of a Technical Assistance Grant from the North
Central Kansas Regional Development Tax Credit Program in the amount of $130,000.00
( "NCRPC Funds "), which funds may be used to finance certain street and storm sewer
infrastructure improvements for the proposed workforce housing development project.
E. On July 14, 2011, the City issued a Request for Proposals for the City of Salina
Workforce Housing Project ( "RFP ") to solicit applications from developers for a collaborative
project with the City to produce a workforce housing subdivision of 18 or more single - family,
owner- occupied, housing units within the City of Salina meeting certain specifications outlined
in the RFP (including but not limited to predetermined costs within an affordable price range, as
well as quality materials and construction), and utilizing the above- described grant funds to
reduce the overall cost of constructing the proposed workforce housing development project,
thereby reducing the future sale price for each of the homes.
F, In response to the RFP, Developer (by and through its affiliate, TWI
Development, Inc.) submitted a Proposal ( "Developer's Proposal ") to develop 27 houses meeting
a specific quality of construction on a tract of real estate located in Saline County, Kansas,
described and depicted on Exhibit A attached hereto ( "Property ").
G. According to Developer's Proposal, the cost of developing water, sanitary sewer,
street, and storm sewer public improvements thereon would be financed with a combination of
the above - described grant funds, a limited cash contribution from Developer, and special
assessments levied against the Property.
H. Under Developer's Proposal, and in furtherance of the City's workforce housing
program. Developer would construct the housing units and sell each unit to owner - occupants for
an amount not to exceed any agreed upon maximum sales price.
I. The parties wish to enter into this Agreement to establish the terms and conditions
relating to the proposed collaborative development of the Property, and the methods of financing
and improving the same.
J. This Agreement is in furtherance of the City's goal to provide affordable
workforce housing units, and in furtherance of Developer's purpose of developing and selling
real estate in the City of Salina.
NOW THEREFORE, for and in consideration of the foregoing, the mutual covenants and
promises hereinafter set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby
agree as follows:
Construction and Sale of Housing Units.
1. 1. Scope of Work. Subject to the terms of this Agreement, Developer agrees
to perform the work specified in the Statement of Work attached as Exhibit B hereto (the
"Statement of Work "), which generally involves Developer's construction of twenty -seven (27)
residential housing units meeting certain specified design and efficiency criteria (the "Project ").
Developer shall be solely responsible for all construction of the Project,. and for obtaining all
necessary permits and approvals. If Developer desires to make any changes to the approved
Statement of Work, the proposed changes shall be submitted to the City Manager for written
approval, which approval shall not be unreasonably withheld. The parties agree that, in
considering whether to approve any such changes to the approved Statement of Work, the City
Manager shall be entitled to consider the effect of the proposed change on the quality of
materials and construction.
1.2. Continuation and Completion. Developer agrees to begin construction
efforts as soon as reasonably possible in strict accordance with the Statement of Work, and to
thereafter diligently prosecute to completion the construction of the Project and the sale of the
housing units in accordance with Section 1.5 below. The City agrees that the number of housing
units under construction at any given time shall be within the reasonable discretion of Developer.
Accordingly, Developer shall be regarded as diligently prosecuting completion of the Project if
Developer is diligently constructing or marketing for sale at least two (2) housing units in
accordance with the terms of this Agreement.
1.3. Responsibility for Cost of the Project. Except as expressly provided in
this Agreement, Developer shall be responsible for all costs of developing the Project, including
but not limited to predevelopment costs; all development and building fees; the costs incurred to
demolish and clear any existing improvements, furnishings, fixtures, and equipment from the
Property; costs for insurance and bonds (as required); costs for financing; all on -site construction
costs; and Developer's legal fees.
2
1.4. City's Right of Inspection. Upon reasonable advance notice, Developer
shall meet with the City to review and discuss the design and construction of the Project in order
to enable the City to monitor the status of construction and to determine that the Project is being
performed and completed in accordance with this Agreement.
1.5. Sale of Housing Units. Developer agrees to diligently market and sell each
of the 27 housing units to an owner - occupant homebuyer unaffiliated with and unrelated to
Developer, its owners, officers, directors, and employees, for an amount not to exceed
$140,000.00 (the "Sales Price "). Beginning on the first anniversary of the date of this
Agreement, and on each anniversary thereafter, the Sales Price shall be increased over the Sales
Price from the previous twelve (12) month period by three percent (3 %).
2. Creation of Improvement District. In consideration of Developer's agreement with
respect to the Project, the City intends to construct certain water, sanitary sewer, street, and storm
sewer infrastructure improvements, as follows:
2.1. Construction of the Improvements. The City intends (see Section 2.5 below)
to construct certain water, sanitary sewer, street, and storm sewer improvements on or adjacent to
the Property ( "the Improvements "), as an owner - initiated project, pursuant to the Kansas General
Improvement and Assessment Law (K.S.A. 12 -6a01, et seq.). Subject to the approval of the board
of city commissioners, the parties contemplate that the Improvements shall be constructed as shown
on the engineering estimate and feasibility report related to Developer's petition requesting
construction of the Improvements. The parties contemplate that the Improvements will be
constructed pursuant to two separate contracts procured by the City, with the water and sanitary
sewer improvements (the "Water Improvements ") being constructed under one contract, and the
street and storm sewer improvements (the "Street and Storm Sewer Improvements ") being
constructed under a separate contract.
2.2. Apportionment of Improvement Costs. The cost of the Improvements shall
be apportioned between the proposed improvement district and the city -at -large, as set forth in
Sections 3 and 4 below, with the city -at -large component of such costs being equal to the sum of the
available EPA Funds, the available NCRPC Funds, and Developer's cash contribution (as set forth
below), and the balance of all such costs to be specially assessed against the property included in the
improvement district, payable in not more than fifteen (15) equal annual installments.
2.3. Developer's Petition for the Improvement District. As soon as reasonably
possible following the execution of this Agreement, Developer shall prepare and submit a petition to
the City Clerk pursuant to K.S.A. 12 -6a01, et seq. requesting the construction of the Improvements,
and the apportionment of the costs thereof, all in accordance with this Agreement. Developer
further agrees to take all actions required by K.S.A. 12 -6a01, et seq., to present the petition to the
board of city commissioners, and to cooperate in good faith to provide such additional information,
as deemed necessary by the City, to allow for full consideration of the petition by the board of city
commissioners.
2.4. Waiver. Developer hereby agrees to waive any rights that it may have
pursuant to state statute, the Kansas Constitution, the United States Constitution, or as otherwise
provided by law to object to any special assessments requested in the petition and imposed pursuant
to K.S.A. 12 -6a01 et seq. Developer acknowledges and agrees that this waiver is freely given and
with full knowledge of the extent of all statutory, constitutional or other legal rights being waived
hereby, and is given in consideration of the City forming the improvement district contemplated
hereunder and assisting in providing for the financing and construction of the Improvements.
2.5. City's Obligation. The parties acknowledge and agree that the creation of an
improvement district by the City is a discretionary act to be made in conformity with a statutorily
prescribed procedure; that the City cannot agree by contract to take such a discretionary action; and
that the City will diligently consider Developer's petition in good faith pursuant to applicable law
and the terms of this Agreement.
3. Apportionment of Water Improvement Costs. The parties acknowledge that,
under the terns of the EPA Grant, the City may apply the EPA Funds toward 55% of the costs
associated with constructing the Water Improvements, and the remaining 45% of the Water
Improvement costs must be paid with funds other than the EPA Funds. Accordingly, the parties
agree to apportion the Water Improvement costs as follows:
3.1. EPA Funds. The City agrees to apply all available EPA Funds (i.e., 55%
of all eligible costs) toward the Water Improvement costs. For purposes of K.S.A. 12 -6a01, et
seq., the portion of the Water Improvement costs payable with the EPA Funds shall be deemed a
cost payable by the city -at- large.
3.2. Special Assessments: Developer's Funds. To satisfy the matching
requirements of the EPA Grant, the parties agree to apportion all remaining Water Improvement
costs as follows:
i. First, such costs shall be paid with any funds remaining from Developer's
cash contribution toward the Street and Storm Sewer Improvements
pursuant to Section 4.2 below. For purposes of K.S.A. 12 -6a01, et seq.,
the portion of the Water Improvement costs payable with Developer's
funds shall be deemed a cost payable by the city -at- large.
ii. Second, all remaining costs shall be levied against the property included in
the improvement district in the form of special assessments.
4. Apportionment of Street and Storm Sewer Improvement Costs. The parties
acknowledge that, under the terms of the NCRPC Grant, the City may apply the NCRPC Funds
toward completion of the Street and Storm Sewer Improvements. Accordingly, the parties agree
to apportion the Street and Storm Sewer Improvement costs as follows:
4.1. NCRPC Funds. The City agrees to apply all available NCRPC Funds
toward the Street and Storm Sewer Improvements. For purposes of K.S.A. 12 -6a01, et seq., the
portion of the Street and Storm Sewer Improvement costs payable with the NCRPC Funds shall
be deemed a cost payable by the city -at -large.
4.2. Developer's Cash Payment. After the City has incurred Street and Storm
Sewer Improvement costs in the amount of the available NCRPC funds, the City agrees to utilize
Developer's cash contribution paid to the City (pursuant to Section 5 below) for payment of the
additional Street and Storm Sewer Improvements costs. For purposes of K.S.A. 12 -6a01, et seq.,
the portion of the Street Improvement costs payable with these funds shall likewise be deemed a
cost payable by the city -at- large. In the event that the total cost of the Street and Storm Sewer
Improvements is less than would be required to fully utilize Developer's cash contribution
pursuant to Section 5, Developer agrees to apply any surplus funds toward payment of the Water
Improvements, with the objective of reducing the amount of Water Improvement costs to be
specially- assessed against the property included in the improvement district pursuant to Section
3.2.ii above.
4.3. Special Assessments. If the cost of the Street and Storm Sewer
Improvements exceeds the available NCRPC Funds plus Developer's cash contribution to the
City (pursuant to Section 5 below), all remaining Street and Storm Sewer Improvement costs
shall be levied against the property included in the improvement district in the form of special
assessments.
Developer's Cash Payment for Improvement Costs.
5.1. Delivery of Funds to the City. In consideration of the City's undertakings
with respect to the Improvements, and as additional security for Developer's payment
obligations for the costs of constructing the Improvements, Developer agrees to deliver to the
City certified funds in the amount of $243,704.00. Such funds shall be paid to the City before
the City enters into a contract for the construction of the Improvements. Except for the special
assessments to be levied against Developer's Property, the delivery of such funds to the City
shall be deemed to fully satisfy Developer's payment obligations with respect to the
Improvement costs.
5.2. Partial Prepayment of Church's Assessments. If Developer is joined by
First Christian Church (the "Church ") in filing the petition to request construction of the
Improvements, the City shall utilize a portion of the $243,704.00 delivered to the City pursuant
to Section 5.1 above to prepay, pursuant to K.S.A. 12 -6a10: (a) all of the assessments levied
against the Church's property associated with the cost of the Water Improvements; and (b) that
portion of the assessments levied against the Church's property associated with the cost of the
Street and Storm Sewer Improvements, in an amount sufficient to prepay all but $40,572.83 of
the Street and Storm Sewer Improvement assessments against the Church's property.
6. Security for Improvement District Obligations.
6.1. Security. In compliance with City of Salina Resolution Number 89 -4066,
and to secure prompt payment of the special assessments levied against the Property, Developer
shall provide a financial commitment to the City in one of the following forms:
i. Cash, cashier's check or an escrow account equal to 20% of the total
special assessments levied against the Property within the improvement
district; or
ii. An irrevocable letter of credit equal to 35% of the total special
assessments levied against all of the Property within the improvement
district,
5
6.2. Application of Security. Developer's financial commitment may be
applied annually to satisfy the principal of and interest on the bonds, if any special assessments
are not paid when due.
6.3. Release of Security. Developer's financial commitment shall be released
upon the request of Developer at the earlier of (i) the date when certificates of occupancy are
issued for at least 35% of the units constructed by Developer hereunder; or (ii) five (5) years
after completion of all the Improvements.
Transfer of Obligations.
7.1. Assignment. The rights, duties and obligations of Developer contained
herein may not be assigned, in whole or in part, without the prior written approval of the City
following verification by the City Attorney that the assignment complies with the terms of this
Agreement. Any proposed assignee shall have qualifications and financial responsibility, as
reasonably determined by the City Manager, necessary and adequate to fulfill the obligations of
Developer with respect to the portion of the Property being transferred. Any proposed assignee
shall, by instrument in writing, for itself and its successors and assigns, and expressly for the
benefit of the City, assume all of the obligations of Developer under this Agreement and agree to
be subject to all the conditions and restrictions to which Developer is subject. Developer shall
not be relieved from any obligations set forth herein unless and until the City specifically agrees
to release Developer. Developer agrees to record all assignments in the office of the Register of
Deeds of Saline County, Kansas, in a timely manner following the execution of such agreements.
7.2. Bindim4 Agreement; Covenant Running with the Property. The parties'
obligations with respect to this Agreement, unless earlier satisfied, shall inure to and be binding
upon the heirs, executors, administrators, successors and assigns of the respective parties as if
they were in every case specifically named and shall be construed as a covenant running with the
land, enforceable against the purchasers or other transferees as if such purchaser or transferee
were originally a party and bound by this Agreement. This Agreement, or a document
evidencing the covenants, conditions, and restrictions contained herein, may be recorded in the
office of the Saline County Register of Deeds.
8. Events of Default. The occurrence of any one or more of the following shall
constitute an event of default hereunder ( "Event of Default"):
A default in the performance or breach of any term, covenant, condition,
or obligation contained in this Agreement, or any of the covenants, terms
or conditions contained in the EPA Grant or the NCRPC Grant, and
continuance of such default or breach for a period of 30 days after the City
has delivered to Developer a written notice specifying such default or
breach and requiring it to be remedied; provided, that if such default or
breach cannot be fully remedied within such 30 -day period, but can
reasonably be expected to be fully remedied and Developer is diligently
attempting to remedy such default or breach, such default or breach shall
not constitute an Event of Default if Developer shall promptly upon
receipt of such notice diligently attempt to remedy such default or breach
and shall thereafter prosecute and complete the same with due diligence
and dispatch.
ii. If at any time any representation or warranty made by Developer shall be
incorrect in any material respect.
iii. Developer assigns this Agreement or any interest in this Agreement
without the City's prior written consent.
Remedies Upon an Event of Default.
9.1. Remedies. Upon the occurrence of an Event of Default, the City shall have
the following rights and remedies, in addition to any other rights and remedies provided under
this Agreement or by law:
The City shall have the right to terminate this Agreement or terminate
Developer's rights under this Agreement.
ii. Developer will pay to the City the sum of $10,705.00 for each of the 27
housing units that is not constructed and sold in accordance with this
Agreement prior to the Event of Default, as liquidated damages. It is
agreed by the parties that these sums shall, without proof, be deemed to
represent the damages actually sustained by the City by reason of the
Event of Default; provided, however, that this provision is intended to be,
and shall be cumulative, and shall be in addition to every other remedy
under this Agreement and by law, and shall not interfere with any rights
on the part of the City to enjoin or restrain Developer from any violation
of this Agreement. Developer acknowledges and agrees that its
obligations under this Section 9.1.ii shall be secured by the mortgage
referenced in Section 10 below, and further agrees that the City shall have
the right to use any and all remedies available under the Mortgage to
enforce Developer's obligations under this Section 9.1.ii.
iii. The City may pursue any available remedy at law or in equity (including
specific performance) by suit, action, mandamus or other proceeding to
enforce and compel the performance of the duties and obligations of
Developer as set forth in this Agreement, to enforce or preserve any other
rights or interests of the City under this Agreement or otherwise existing at
law or in equity and to recover any damages incurred by the City resulting
from such Event(s) of Default.
9.2. No Waiver. The exercise by the City of any one remedy shall not preclude
the exercise by it, at the same or different times, of any other remedies for the same default or
breach. Any delay by the City in instituting or prosecuting any such actions or proceedings or
otherwise asserting its rights under this Section 9 shall not operate as a waiver of such rights or
limit it in any way. No waiver of fact by the City of any specific default by Developer shall be
considered or treated as a waiver of the rights with respect to any other defaults, or with respect
to the particular default except to the extent specifically waived.
10. Mortgage to Secure the City's Remedies.
10.1. Grant of Mortgage to the City. In consideration for the City's
disbursement of the EPA Funds and the NCRPC Funds, and to secure the performance by
Developer of its obligations under this Agreement, including Developer's agreement to pay the
damages set forth in Section 9.l.ii above upon the occurrence of an Event of Default, Developer
shall execute and deliver to the City a mortgage on the Property in the maximum principal
balance of $289,033.00 ( "Mortgage "), in a form provided by the City and substantially similar to
that attached as Exhibit C hereto. Developer agrees to execute and deliver the Mortgage to the
City on or before the City's award of any contract for the construction of the Improvements.
10.2. Release of Mortgage. The parties recognized that the Mortgage is intended
to secure Developer's full and faithful performance of this Agreement. Accordingly, if the
Property has been developed according to the terms of this Agreement and if Developer is not in
default under the terms hereof, then upon reasonable advance notice from Developer, the City
shall deliver to Developer a recordable release for each housing unit at the time the sale of the
unit is closed in accordance with this Agreement.
10.3. Subordination of Mortgage. The parties acknowledge that First Bank
Kansas will serve as Developer's primary lender for the Project, and will loan Developer some or
all of the funds necessary for Developer to perform its obligations hereunder, including
Developer's cash payment to the City in the amount of $243,704.00. Accordingly, at the time of
such payment to the City, and to facilitate the development of the Project with Developer's loan
from First Bank Kansas, the City agrees to subordinate its Mortgage to the loan to be given by,
and the mortgage in favor of, First Bank Kansas, to the extent such loan from First Bank Kansas
is necessary for Developer to perform its obligations hereunder. In furtherance of the foregoing,
the parties agree that the City's Mortgage shall include a clause that effects an automatic
subordination of the same to the aforementioned mortgage of First Bank Kansas. The City
agrees to execute and deliver to First Bank Kansas such other agreements as may be reasonably
necessary to effect the subordination contemplated herein.
11. Tax Implications. Developer acknowledges and agrees that (1) neither the City
nor any of its officials, employees, consultants, attorneys or other agents have provided to
Developer any advice regarding the federal or state income tax implications or consequences of
this Agreement and the transactions contemplated hereby, and (2) Developer is relying solely
upon its own tax advisors in this regard.
12. Compliance with Laws, Regulations, and Grant Agreements. Developer shall
observe and comply with all applicable laws, regulations, and rules of governmental agencies
having jurisdiction.
13. Notices. All notices to be given pursuant to this Agreement shall be sufficient if
given personally or mailed by certified mail, return receipt requested, to the party involved or at its
respective address stated below, or at such address as such party may provide in writing from time
to time. Any such notice mailed to such address shall be effective when deposited in the United
States mail, duly addressed, and with postage prepaid, to the party to be notified at the address set
forth as follows:
"CITY"
City of Salina
ATTN: City Manager
300 Ash
Salina, KS 67401
"DEVELOPER"
Todd Welsh, Inc.
ATTN: Todd Welsh
300 S. 9th St., Suite 101
Salina, KS 67401
14. Kansas Law Applies. This Agreement and its validity, construction, and
performance shall be governed by the laws of Kansas.
15. No Oral Agreements. This Agreement constitutes the entire agreement between the
parties and there are no representations, warranties, conditions, or agreements other than those
expressly set forth herein. No other agreement, statement, promise, warranty, or representation
made by any party to this agreement that is not in writing and signed by all parties to this
Agreement shall be binding.
{Signature Page Follows}
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their
duly authorized officers on the day and year first above written.
ATT%# A
By:
By:
Lieu Ann Elsey, CMC, City k
CITY OF A A
By:
Norman M. Jennings, Mayor
110611
La
STATE OF KANSAS, COUNTY OF SALINE, SS:
This instrument was acknowledged before me onTiar ax q LA , 2013, by
Norman M. Jennings, Mayor of the City of Salina, Kansas, and Lieu Ann Elsey, CMC, City
Clerk for the City of Salina, Kansas.
0: l 16"-eY
Notafy Public
My appointment xpares: SHANDI L. WICKS
Notary Public - state of Kansas
My Appt. Expires �6
STATE OF KANSAS, COUNTY OF SALINE, SS:
This instrument was acknowledged before me on�J�L, 2013, by
Todd Welsh, as President of Todd Welsh, Inc.
/l /,,
iL -/ IYUNd,J
Notary Public
My appointment expires:
r-- LINDA C. ANDREW
Z , a l ltary Pubii - State`ot Kansas
M ji,ppt. Feallos I �lJ
EXHIBIT A
DESCRIPTION & DEPICTION OF THE PROPERTY
A parcel of land located in the Southeast Quarter of Section 17, Township 14 South, Range 2
West of the 6th Principal Meridian, in Saline County, Kansas, depicted as follows:
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Developer's Property Legend
Saline County, Kansas
Date:
EXHIBIT B
STATEMENT OF DEVELOPER'S WORK
Unless otherwise expressly agreed in the Workforce Housing Development Agreement to
which this Exhibit B is attached, Developer shall develop the Project pursuant to and in
accordance with Sections 3.1 through 5.5 of Developer's response to the City's request for
proposals, a copy of which is attached hereto. Developer further reaffirms and agrees to the
promises, covenants, and conditions contained therein, as if fully set forth herein.
�I
I
Cali for a RFP for the city of saline Workforce Housing Project
3. Description of Project/Site:
3.1 Legal Description and address of site: A parcel of land located in the Southeast Quarter of Section 17
Township 14 South Range 2 west of the 6te Principal Meridian
3.2 Schematic lot layout, including number and lot sizes, development plan or site plan and its relationship
to the surrounding area: (See attachment 5- lot layout)
3.3 Project description and fact sheet including specific uses, number of residential units, proposed pricing
and total finished and unfinished area, in a square footage measurement, of each housing unit:
Two (2) floor plan options are available: Option #1 will offer three (3) bedrooms /two (2) baths with a
two (2) car garage and 1220 square feet. Option #2 will offer two (2) bedrooms /two (2) baths with
a two (2) car garage and 1250 square feet. Both options are slab on grade. (See Attachments 6 & 7-
Floor Plans)
3.4 Complete aerial mapping of the existing property under consideration in this project proposal (available
at www.Salina- ks.gov): (See attachment 8- aerial mapping)
3.5 Is this development in the City of Salina's mapped Neighborhood Revitalization Area? No
3.6 Proposed schematic layout of existing utility extension proposed for this project: (See Attachment 5)
3.7 Proposed construction sequencing or phasing (explain or attach separate document): All infrastructure
will be completed at one time without utilizing a phasing process
3.8 Affordability Period (The affordability period is the length of time the units will remain affordable to
owners): Three (3) years.
3.9 Approximate Sale Price of Units: $135,10GO
a. Project Cost: S625,000
b. Funding Gap: $415.110.92
c. Project Resources: $209.889.08
d. Funding Requested: $415.110.92
Criteria Checklist for Affordable Housing Development
# of Bedrooms
Per Home
# of Baths
Per Home
Total Square Footage of
Finished Space Per
Home
Cost per Square Foot of
Finished Space Per
Home
3
2
1220
$110.65
2
2
1250.
$108.00
Salina Workforce lousing Project Proposal -Todd Welsh Inc
Page 6
Ca0 for a RFP for the qty of Salina workforce Housing Project
4. Site —Home Specifications: The following are specific goals or priorities that have been identified by the City
of Salina and will be considered when rating each application:
4.1 Conservation of natural resources, minimize soil disturbance and erosion, manage storm water to
ensure onsite illicit discharge compliance: Site plan calls for modification on West line for storm
water to continue flow from South channel Proper erosion control materials will be in place during
development phase and during home construction.
4.2 Devise an attractive and affordable landscape plan to limit water and energy demands, conserve onsite
vegetation if available: Home will have final grade with erosion control in place at time of transfer to
new owner.
4.3 Create efficient floor plans that maintain functionality; use building layouts that maximize resources and
minimize material waste; recycle construction waste: Proposed floor plans have been selected to
Provide the most amount of usable square footage: attic trusses have been selected to allow the
new home to have an additional 250 square feet of floored storage above the living space
4.4 Crawl space, slab on grade acceptable; although basements are preferred: Homes will be slab on grade.
i 4.5 Insulation which meets or exceeds Chapter 11 of the International Residential Code for foundation of
R 13 to a depth of 48", crawl space floor of R13, walls of R13 and ceiling areas of R3O. Acceptable
framing methods could include, SIP or ICF construction wall systems, wood conventional framing
methods with advanced framing, including insulated corners; air scaling package may be introduced
to reduce air infiltrations; flex wrap on windows: Insulation of R13 walls and R30 in ceiling area
I
along with flex wrap on windows will be applied to reduce air flow.
4.6 Architectural Grade Asphalt shingles of 240 pounds per square or greater: Tamko Heritage shingles (30
year warranty)
I
j 4.7 Window efficiency includes Energy Star Rating with U rating of .40 to .35 and SHGC of .26; roofing ice
-� shield: Roofing ice shield and window efficiency requirements will be met.
4.8 Heating Units of 88% efficiency or greater, heat pump, geothermal, solar or fuel fired space heating
units acceptable: Our goal is to make homes as energy efficient as possible. We have selected a
j 92% Energy Star rated heating system: model # H(n)9mod
4.9 Low Water Consumption Plumbing, including Natural Gas or Electric Water Heaters or On Demand
Water Heaters of High Efficiency and recirculation systems acceptable: High Efficiency with .70
energy factor exceeds current Energy Star requirements. Forty (40) gallon natural gas water heater
to be installed in each home.
i 4.10 Air Conditioning Units with SEER rating of 13 or greater: Our goal is to make homes as energy
efficient as Possible. We have selected a Heil 14.5 SEER two ton unit: model # N (H) XA624.
4.11 Energy Star Labeled Appliances: Whirlpool dishwasher— Energy Star Rated: model # DUIOSSXTV:
Also selected Whirlpool oven /ranee to add consistency to the appearance: even though currently
oven /range combinations are not energy star rated. Whirlpool microwave oven.
f i 4.12 Plumbing stubs installed for bathroom and utility units in unfinished basement areas: N/A
i
4.13 Minimum of Single Car Garage attached to the structure: Both options of homes will feature a two
car garage. We have found in other developments that two car garages provides for fewer cars to be
I parked on the street thus adding to the attractiveness of the development and added safety.
rI 912/2011 Salina Workkorce Housing Project Proposal -Todd Welsh Inc
Page 7
!I
r�
Call for a RFP for the City of Salina Workforce Housing Project
4.14 Roofing Ice Shield installed: Roofing ice shield will be installed from edge of the putter to one foot
past heated sidewall.
4.15 Proposed finish materials, type and quality of finish to meet long term livability standards for the
proposed life of the project: Homes will be finished with grade one materials, custom cabinets,
uperaded interiors and Energy Star rated exterior doors.
I
S. OTHER
5.1 Confirmation of financial resources committed to this project by the lender; is to be submitted with the
financial statements and bank references under separate cover to be opened and reviewed upon
request. The City of Salina reserves the right to conduct or seek background or credit reports on the
applicant(s) in conjunction with their proposal(s): It is TWI's policy not to release sensitive and
confidential company financial information in the oreliminary phase of an application. If the City of
Salina chooses to advance TWI to the next level in the process, we will be pleased to review pertinent
Comoanv financial information with the City's designated representative to assure the City of TW I's
ability to Perform the obligations set forth in proposal. TWI is providing a Commitment Letter from
First Bank Kansas for interim financing (see attachment 4).
i
'.I
5.2 A statement that the applicant agrees to submit any information needed by the City of Salina in order
to perform its own due diligence in reviewing the applicant's proposal: TWI is prepared to provide the
City of Salina with relevant information to facilitate the advancement to the next level in the process
and eventual awarding of this project to TWI.
5.3 A statement from the applicant indicating or discussing there has been no foreclosure or bankruptcy
within the past ten years for any individual or party who is an owner of a ten percent or more beneficial
interest in the entity making the proposal: TWI confirms there has been no foreclosure or bankruptcy
within the past ten years for any individual or Party in the entity making the proposal.
j 5.4 Acknowledgement that the final development agreement with the City of Salina will include repayment
obligations if the project is not completed, without prior written approval from the City of Salina: TWI
agrees with this statement and acknowledges that proiect must be completed or repayment of any
Public assistance may take place.
5.5 The applicants will submit a statement of quality indicating that each housing unit meets or exceeds
^I stated goals and objectives in this proposal: TWI hereby states that each housing unit will meet or
exceed stated goals and objectives in this proposal.
jIn conclusion, this project will provide 27 ene rgy efficient, sin g le famil y , owner occupied homes. There will
be NO SPECIAL ASSESSMENTS to the home owner. Each home will be affordably priced at $135,000.
j
TWI Development
1]
v: Todd E. Nelsh. President
Septembel /1, 2011
I�
I
Selina Workforce Housing Project Proposal -Todd Welsh Inc
Page 8
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%pumfort You Can Cunt On
The Heil` QuietComfort" DLX 90 is built for years
of dependable operation, with a durable steel cabinet and
advanced ignition system. The furnace features comfort
Innovations like a timed blower that distributes warm air
even after the burners shut off.
Higher Effidencs For
Lower utility Bills
Improved efficiency, starts with the heat exchanger,
and the QuietComfort" DLX 9% patented RPJO IR heat
_ exchanger forces mom beat to the outside surface to boost
efficiency That means you get outstanding energy savings with
the furnace's high 92% AFUE' rating. Older, less efficient units
_ get just 60% -65 %AFUE.
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Designed For Quiet Operation
The QuieComfbe DIX 90 features a solid door design and
an insulated, thermally lined cabinet for quiet operation. That
keeps heat and sound where they belong: iraide the cabinet!
Every Hell unit is backed by exceptional warranties, including
our No Hassle Replacement" limited warranty *; which gives you
a replacement unit if the heat exchanger should fail within the
first year. You also getup to a 10 years pans limited warranty*
and a lifetime limited warranty* on the stainless steel heat
exchanger. And don't forget to ask your dealer about HELP'
extended service agreements for additional worry-free protection
for parts and labor coverage.
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QUIETCOMFORV`
DIX 90 SERIES
GAS FURNACE
A dishwasher lineup with excellent efficiency and greater capacity than ever. before
The PowerScour option on select
dishwashers uses 36 targeted spray
jets and a designated wash area to
tackle your toughest dishes without
using an additional drop of water.
No more scrubbing by hand. No
more dishes soaking in the sink.
Fit tall items in the
upper rock with ease
Wash more than ever before+*
with the tallest tub available.'
An additional 3" of interior space
compared to our previous standard
tub models makes room for items
like cookie sheets or stock pots in
the lower rack or plates and sports
bottles in the upper rack.
-The CEE Tier system is based on the Consortium for Energy Eniciency qualified product listings. "Compared to dishwashers manufactured before 1000.
+Available on Whirlpool' models MSRP $399 and below. "Compared to previous Whirlpool" standard tub models. sAmong leading dishwasher brands MSMP $399 and below..
iq
All of our dishwashers are
ENERGY STAR® qualified
..
Not only do all models
meet ENERGY STAR"
--
qualification, select models
exceed it with a CEE Tier I
_
rating.` Dishwashers with
-
the Resource Saver" wash
-- -
system deep clean a full
load of dishes using '/a less
_
water and energy and are
Whirlpool brand's most
-..- - -- - - -'-
efficient." The new Eco cycle
on select models helps save
_
money on energy bills and is
our most efficient?
The PowerScour option on select
dishwashers uses 36 targeted spray
jets and a designated wash area to
tackle your toughest dishes without
using an additional drop of water.
No more scrubbing by hand. No
more dishes soaking in the sink.
Fit tall items in the
upper rock with ease
Wash more than ever before+*
with the tallest tub available.'
An additional 3" of interior space
compared to our previous standard
tub models makes room for items
like cookie sheets or stock pots in
the lower rack or plates and sports
bottles in the upper rack.
-The CEE Tier system is based on the Consortium for Energy Eniciency qualified product listings. "Compared to dishwashers manufactured before 1000.
+Available on Whirlpool' models MSRP $399 and below. "Compared to previous Whirlpool" standard tub models. sAmong leading dishwasher brands MSMP $399 and below..
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_ ENERGY STAR Qualified Windows
Protect the Home and Increase Comfort
Windows provide natural daylight and views, but homeowners often use drapes or
blinds to cover them because of comfort concerns. ENERGY STAR qualified windows
and skylights allow owners to enjoy the light and views while saving money.on utility_
bills and protecting valuable furnishings and finishes from sun.damage. Independently,
tested for superior energy performance, ENERGY STAR qualified windows and
skylights are also better for the environment because lowering energy use helps
reduce the emissions of greenhouse gases and air pollutants at the source.
BENEFITS OF ENERGY STAR QUALIFIED WINDOWS AND SKYLIGHTS
• Energy Savings. ENERGY STAR qualified windows and skylights feature advanced
technologies such as invisible glass coatings, vacuum- sealed spaces filled with inert gas
between the panes, improved framing materials, better weather stripping, and warm edge
spacers, all of which reduce undesirable heat gain
and loss.
• Improved Comfort. Compared to less efficient
windows, ENERGY STAR qualified windows help
keep homes warmer in the winter and cooler in
the summer. This is because they can block
70 percent or more of the solar heat gain in the
summer and reflect radiant heat indoors during
winter.
Protection of Your Home's Interior. Photographs,
furniture, flooring, and window treatments can
_ fade or discolor after repeated exposure to direct
sunlight. An ENERGY STAR qualified window
with special (Low -E) coatings can reduce fading.
These coatings can reduce fading by up to 75 percent.
Multiple panes
Low -E coating
Gas fio
Warm edge spacers
Imprmed
hams materials
• Reduced Condensation. If an inefficient window or window frame gets too cold, water can
condense (or even freeze) on the interior surface and then pool on the sill. Over time,
chronic condensation can damage window sills, cause paint to crack, and encourage the
growth of mold. Advanced frames, glass coatings, spacers, and other technologies enable
ENERGY STAR qualified windows to keep the inner surface of the glass and frame warmer,
reducing the potential for condensation and ensuring a clearer view on winter mornings.
Weather Shield Solutions: Our Park Falls Division in North Central
-- Wisconsinstands as a shining example of Weather Shield's commitment
to environmental protection. The manufacturing facility, parking lots,
loading docks and access roads required approximately 20 acres of
land. Because more than one acre of wetlands was to be impacted
-- during construction, Weather Shield underwent both "on -site" and "off -
site" wetland compensatory mitigation. Weather Shield has a unique
chemical recycling of paint materials, which diverts 95% of chemicals
fromlandfills- Weather Shield products have high recydedcontent from
9% pre-consumer on vinyl, 60% on glass and up to 65% on aluminum
extrusions (see schedule below).
Weather Shield Solutions: Zo- e- shield® 5,6 or 7 glazing systems and
.� Low Ezwith inert gas exceed ENERGY STAR prerequisites by 25 to 75%,
a possible contribution to energy design for Optimization Energy
Performance to meet performance levels required under 702.2.
-- Aluminum Clad Wood/All-Wood Product Lines: Weather Shielde:
Zo -e- shield 5 with inert gas can offer U- factor of 029 and Zo- e- shield 6
__.. glazing systems have a U- factor of 0.30, SHGC of 0.20, Zo- e- shield? has
a U- factor of 0.26 and an SHGC of 0.19 with an 114actor of 5.88. They
also offer the Industry s highest Condensation Rating (CR) of 62. Please
sea individual product performance data for more information.
._- Endura5hield Fiberglass Clad/Wood/Ail- Fiberglass Product Lines:
Z.-e- shield 5 achieves a U- factor of 0.26 and Zo -e- shield 6 achieves a
U -factor of 0.29 both with an SHGC of 0.20. Zo- e- shield 7 has a U- factor
of 0.22 and an SHGC of 0.18 with a Condensation Rating (CR) of 67.
Please see individual product performance data for more information.
Vinyl. clad / all -vinyl lines: Preshielda, Visions 2000°and Visions 30000:
Zo -e- shield 5 and 6 with inert gas can offer U- factors of 0.26 and SHGC
of 0.20. LowEz /Argon gas Bronze or Gray has a U- factor of 0.27,
'toeedmgthe regmtediE.NNEf GyjSTAR,F�troimu`tr of 0.35 (North) and
ObSTSSouth) and an SHGC of 0.19 vs 045 (North) and 0.35 (South).
Additional strategies might include use of gray tinted glass to rut Visible
Transmission of light for southern exposure walls or diffused glazing for
transoms and /or daylighting of interior spaces. Please see individual
product performance data for more information.
For Coastal Areas and Weather Penetration: Lifeguards and
LifeGuard* IG: LifeGuard IG impact- resistant products with similar
U- factor and SHGC ratings, but have the additional protection of impact
resistance in hurricane -prone areas. LifeGuard single glazed units are
tested for Florida Building Code and Dade County for winds up to 190
mph - almost 50 mph higher than the required standard test for impact
for Missile Level D.
702.2 EXCEED ENERGY: PERFORM,' N'CE RA1'1-1
(Points cannot be claimed in both 702 & 703)
Intent: Provide analysis of ICC IECC performance.
-^:15 %'better than., 30 points
30% better than 60 points
' '50%1betterthart :. 100 points
60% better than 120 points
%03 C }:CEi2p Ekrcit.:iiY: PERt;R:P. `.7i:'AT:-
(Points cannot be claimed in both 702 and 703)
Intent: Enhanced Fenestration per Table.
Table 703.3.1(b)
ENHANCED FENESTRATION SPECIFICATIONS
Windows & Exterior Doors
1&2
.45
.30
Intent: Meets ENERGY STAR -for U- factor and SHGC
(mandatory).
-
Table 701.4.4.1
.30
ANY
MAXIMUM FENESTRATION SPECIFICATIONS
Skylights and TDDs
Windows & Exterior Doors
1 to 3
1&2
.65
.40
3
-40
.40
4 to 8
.35
ANY
- 5-
Skylights and TDDs
Zones 6 -8
1 to 3
.75
.40
- 4to8..
- - .60' -.
ANY-.:
Weather Shield Solutions: Zo- e- shield® 5,6 or 7 glazing systems and
.� Low Ezwith inert gas exceed ENERGY STAR prerequisites by 25 to 75%,
a possible contribution to energy design for Optimization Energy
Performance to meet performance levels required under 702.2.
-- Aluminum Clad Wood/All-Wood Product Lines: Weather Shielde:
Zo -e- shield 5 with inert gas can offer U- factor of 029 and Zo- e- shield 6
__.. glazing systems have a U- factor of 0.30, SHGC of 0.20, Zo- e- shield? has
a U- factor of 0.26 and an SHGC of 0.19 with an 114actor of 5.88. They
also offer the Industry s highest Condensation Rating (CR) of 62. Please
sea individual product performance data for more information.
._- Endura5hield Fiberglass Clad/Wood/Ail- Fiberglass Product Lines:
Z.-e- shield 5 achieves a U- factor of 0.26 and Zo -e- shield 6 achieves a
U -factor of 0.29 both with an SHGC of 0.20. Zo- e- shield 7 has a U- factor
of 0.22 and an SHGC of 0.18 with a Condensation Rating (CR) of 67.
Please see individual product performance data for more information.
Vinyl. clad / all -vinyl lines: Preshielda, Visions 2000°and Visions 30000:
Zo -e- shield 5 and 6 with inert gas can offer U- factors of 0.26 and SHGC
of 0.20. LowEz /Argon gas Bronze or Gray has a U- factor of 0.27,
'toeedmgthe regmtediE.NNEf GyjSTAR,F�troimu`tr of 0.35 (North) and
ObSTSSouth) and an SHGC of 0.19 vs 045 (North) and 0.35 (South).
Additional strategies might include use of gray tinted glass to rut Visible
Transmission of light for southern exposure walls or diffused glazing for
transoms and /or daylighting of interior spaces. Please see individual
product performance data for more information.
For Coastal Areas and Weather Penetration: Lifeguards and
LifeGuard* IG: LifeGuard IG impact- resistant products with similar
U- factor and SHGC ratings, but have the additional protection of impact
resistance in hurricane -prone areas. LifeGuard single glazed units are
tested for Florida Building Code and Dade County for winds up to 190
mph - almost 50 mph higher than the required standard test for impact
for Missile Level D.
702.2 EXCEED ENERGY: PERFORM,' N'CE RA1'1-1
(Points cannot be claimed in both 702 & 703)
Intent: Provide analysis of ICC IECC performance.
-^:15 %'better than., 30 points
30% better than 60 points
' '50%1betterthart :. 100 points
60% better than 120 points
%03 C }:CEi2p Ekrcit.:iiY: PERt;R:P. `.7i:'AT:-
(Points cannot be claimed in both 702 and 703)
Intent: Enhanced Fenestration per Table.
Table 703.3.1(b)
ENHANCED FENESTRATION SPECIFICATIONS
Windows & Exterior Doors
1&2
.45
.30
3
.35 .
.30
4to8
.30
ANY
Skylights and TDDs
1 to 3
ese
.54
.35
. 4tP8 :. :.: ..
.. . :..._:: .55
ANY..._ .
Zones 1.3
8
..Zones 4 -5 - -
- 5-
Zones 6 -8
6
Table 703.3.1(a)
ENHANCED FENESTRATION SPECIFICATIONS
Windows & Exterior Doors
1112
.45
.25
3
.35
.25
4 to 8
.25
ANY
Skylights and TDDs
1 to 3
.50 •
.30
- -4 to 8f..:50.
-.
.. ANY
Zones 1.3
10
- Zones 4.5.
10.
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Features & Specs.
Guides & Literature
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Rebate Finder
• Support Resources
_- • Ratings & Reviews
Features and Specs
• Capacity 40 Gallons
• Family Size. 3 -4
• Warranty 12 Years
• Gas BTU Input 40,000 BTU's
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cat S,T{w'
EXHIBIT C
FORM OF MORTGAGE
REAL ESTATE MORTGAGE
The date of this Real Estate Mortgage ( "Mortgage ") is , 2013, and the
parties and their mailing addresses are the following:
Mortgagor Mortgagee
Todd Welsh, Inc. City of Salina
300 S. 9" St., Suite 101 300 Ash
Salina, KS 67401 Salina, KS 67401
In consideration of the sum of Two Hundred Eighty -Nine Thousand Thirty -Three and 00 /100
Dollars ($289,033.00), the receipt of which is hereby acknowledged, the Mortgagor does hereby
mortgage and warrant unto the Mortgagee, its heirs, successors, and assigns, all of the following
described real estate situated in Saline County, Kansas, to-wit:
[Insert legal description]
Mortgagor hereby covenants and warrants that at the delivery of this Mortgage it is the lawful
owner of the premises, and is seized of a good and indefeasible estate of inheritance therein, free and clear
of all encumbrances except easements, restrictions, and other matters of record, and that it will warrant
and defend the same against all claims whatsoever, to have and to hold the same, together with all and
singular the tenements, hereditaments, and appurtenances thereunto belonging or in any way appertaining,
forever.
Mortgagor agrees to pay all claims when due that might result, if unpaid, in the foreclosure,
execution or imposition of any lien, claim or encumbrance on or against the premises or any part thereof.
Mortgagor may in good faith, contest any such lien, claim or encumbrance by posting any bond in an
amount necessary to prevent such claim from becoming a lien, claim or encumbrance or to prevent its
foreclosure or execution.
This Mortgage is executed to secure payment of the sum of up to Two Hundred Eighty -Nine
Thousand Thirty-Three and 00 /100 Dollars ($289,033.00) advanced by Mortgagee to Mortgagor, and
such amounts as may become due to Mortgagee under the terms of a Workforce Housing Development
Agreement between Mortgagor and Mortgagee dated January 28, 2013 ( "Agreement "), including any and
all liquidated damages which may become due and owing to Mortgagee pursuant to Section 10 thereof.
The Agreement is incorporated herein by reference and made a part hereof. If Mortgagor develops the
mortgaged premises according to the terms of the Agreement and is not in default in any manner under
the terms of this Mortgage or the Agreement, then upon reasonable advance notice from Mortgagor, and
at the time the sale of each housing unit constructed on the mortgaged premises is closed in accordance
with the Agreement, Mortgagee shall deliver to Mortgagor a recordable release for each housing unit so
sold.
It is the intention and agreement of the parties that this Mortgage also secures any future
advancements made to Mortgagor by Mortgagee, and all indebtedness which Mortgagor may owe to
Mortgagee, however evidenced. This Mortgage shall remain in full force and effect until all amounts
hereby secured, including advancements, are paid in full.
Mortgagor will not voluntarily create or permit to be created against the property subject to this
Mortgage any lien or liens inferior or superior to the lien of this Mortgage without the written consent of
the Mortgagee; and further, that it will keep and maintain the same free from the claim of all persons
supplying labor or materials for construction of any and all buildings or improvements now being erected
or to be erected on the premises. Notwithstanding the forgoing, this Mortgage shall be subordinate to the
loan to be given by, and the mortgage in favor of, First Bank Kansas, to the extent such loan from First
Bank Kansas is necessary for Developer to perform its obligations under the Agreement. Upon the
request of Mortgagor, Mortgagee agrees to take such other steps as may be required to effect the
subordination contemplated herein.
Mortgagor shall pay all costs, charges, and expenses reasonably incurred or paid at any time by
Mortgagee, including abstract or title insurance expenses, because of the failure of Mortgagor to comply
with the provisions of the Agreement or this Mortgage, and the same are hereby secured by this
Mortgage. In addition, Mortgagor shall pay or reimburse Mortgagee for all reasonable attorneys' fees,
costs and expenses incurred by Mortgagee in any action, proceeding or dispute of any kind in which
Mortgagee is made a party or appears as a party plaintiff or defendant, affecting the Agreement,
Mortgage, or the property; and any such amounts paid by Mortgagee shall be secured by the lien of this
Mortgage.
The failure of Mortgagee to assert any of its rights hereunder at any time shall not be construed as
a waiver of its right to assert the same at a later date, and to enforce strict compliance with all of the terms
and provisions of the Agreement and this Mortgage.
If default is made in such payment, or any part thereon, or if the taxes and assessments assessed
on the premises, or if any other terms of the Agreement or this Mortgage are breached by the Mortgagor,
or anyone holding the premises under authority from Mortgagor, then the whole principal of the debt,
with interest, and all taxes and accruing penalties and interest and costs remaining unpaid or which may
have been paid by Mortgagee, shall become immediately due and payable, at the option of Mortgagee;
and it shall be lawful for Mortgagee at any time thereafter to take possession of the property and foreclose
and sell the same, or any part thereof, in the manner prescribed by law. Mortgagee waives any right of
redemption.
If all or any part of the mortgaged property is sold, transferred, or conveyed without Mortgagee's
prior written consent, Mortgagee may at its option, declare all of the sums secured by this Mortgage to be
immediately due and payable and foreclose this Mortgage. The acceptance of one or more payments on
the indebtedness secured by this Mortgage made by anyone other than the Mortgagor shall not constitute
consent to or approval of a sale, transfer, or conveyance. Any consent or waiver of this due on sale
agreement must be in writing signed by Mortgagee.
This Mortgage shall extend to and be binding upon the successors and assigns of the respective
parties.
IN WITNESS WHEREOF, the parties have caused this Mortgage to be signed by their duly
authorized officers on the day and year first above written.
CITY OF SALINA, KANSAS
By:
Norman M. Jennings, Mayor
ATTEST:
By:
Lieu Ann Elsey, CMC, City Clerk
TODD H, C.
By: t
To elsh, resident
STATE OF KANSAS, COUNTY OF SALINE, SS:
This instrument was acknowledged before me on , 2013, by Norman
M. Jennings, Mayor of the City of Salina, Kansas, and Lieu Ann Elsey, CMC, City Clerk for the City of
Salina, Kansas.
Notary Public
My appointment expires:
STATE OF KANSAS, COUNTY OF SALINE, SS: �J
This instrument was acknowledged before me on �5 �/ 2013, by Todd
Welsh, as President of Todd Welsh, Inc.
Notary Public
My appointment expires:
F '` ' ? 114DA C. ANDREW
i "i' Notary Public • e f Kansas