In May.

Actually, it's not the monthly meeting, the second meeting this month of the um Health Education Housing Facilities Board of the City of Chattanooga.

So the first piece we'll do is the minutes of the April twentieth meeting, which I think we reviewed informally at the last meeting.

Questions, additions, corrections.

Motion carries.

Not to exceed 62 million, and they were before us at the last meeting.

And is there anything you all want to add?

Or is any questions that we have that the board has for them on this?

Good question.

Can we get a reminder of what the term is on this?

I'm happy to be great.

Yes.

Well, Russ Miller was after we are fund council to 10% on the 10th fine bonds.

I said the first one.

And John Lynch is a financial visor for bank.

So as um uh uh Ms.

Robert said, um, this the max 61-ish million dollars.

It's really sort of two separate issues.

One is to be financed their existing 2017 bond, which is through this reward.

Um that's around 18 million dollars.

Um that would be uh I would sure around 2022, I think.

And it has sort of the same information that it has existing bonds for pushing out.

Um with a new bond.

Um deal um the 2020 board.

You all heard about those last community norm and some uh five improvements um and energy uh fund improvements on the campus.

So that bond will be a 30-year bond.

Um they expect uh the initial issuance will be um 47 or so million.

Uh they expect to pay down a lot of that in the next five years when pledges they come in.

And so I think uh the final three would be third years, but they're really only um like 30 million of that over the remaining period.

Um probably hopefully some pledges uh they're gonna pay down both of it.

So it's very interesting through.

So the refinancing it says will uh mature in 16 years, and the uh the bulk of beyond that is 30 years, right?

Yes, yeah, and pinnacle is agreeable with funds for that period.

All right, I want to let's back up and get a motion for discussion.

So before she throws apples at me.

So move to interdiscond.

Second, second.

Okay, we have motion second.

Okay.

Any other questions?

Anybody up here has for them?

Good to vote then.

I don't want to cut off anything, but they did make a presentation last time.

Yeah, yeah.

I've done this before here in that.

I'm just glad to know somebody around here as a school can float a 62 million dollar bond.

I'm impressed.

Having been there, I couldn't do that.

Okay.

Uh seeing no further questions, all in favor of the resolution, please say aye.

Aye.

Opposed, like signed.

Seeing none, resolution passes.

Congratulations.

Good luck.

Yep.

I think it's a safe loan on Mr.

Rutledge's part.

Okay.

Um we have our second.

Thank you all.

Dallas, good to see you.

Our second uh item is resolution uh regarding the payment of a uh payment in lieu of taxes transaction with overlook apartments.

I think we have a gentleman that's going to give us an update on that.

This is, I think we heard the uh the TIFRA hearing the last a couple of times ago, and so they're coming in for a pilot.

And um let him do his one over here and speak on the microphone, identify yourself, and we'll make sure everybody here is up to date.

Have you done a pilot before?

You haven't have you, or have you?

Okay.

Make sure everybody's comfortable with what we're doing before we vote.

You want to give us a little update, please?

Thank you.

Yeah, absolutely.

Thanks, everyone.

My name is Zane Mahmoud.

I work at PATS Development, which is the affordable housing development arm of TIAA.

We do affordable housing tax credit projects around the country, and one of them is overlook apartments, which is 162 units.

There's a large tower in some townhouses to the side.

We are working on closing the tax credits indication on the 26th of June, so next month.

And we have underwritten the pilot as of you guys are well aware, it's very hard to get financing structured on the Tennessee views without a pilot, so you basically need one to even close the transaction.

And I was previously here and presented the project in more detail with the presentation when we came in for the issuance of the tax exempt bonds in the amount of 15 million, which was approved.

Uh that was in November.

And now we're but as per THDA's deadlines you need to co-fund the bonds within 120 days.

We've been working on the project, getting everything else in line.

The investors signed off.

We just put in the final application to Freddie Mac.

So we are very much on track to close next month, yep.

So 162 units.

Yeah, it's 100% affordable LITEC, as I mentioned.

Exhibit B has got your description of the project on here.

And uh the project itself is an original structure that was already built in 1978.

I was gonna say I thought so uh they're they're updating it correctly updating a 1978, it's nine-story high-rise residential building, uh four two-story townhouse style building that is in there, uh 16 studios, 122 one bedroom apartments, and 24 two bedroom.

That on the golden gateway up there.

Yes, that's what over on Boynton Drive, it's like the big white tower, you guys are probably thinking that whole area is actually going through a revitalization.

The housing authority is very much invested.

So I actually just had a meeting with the with Betsy at the housing authority, yeah, and we were discussing other potential projects that we could do in Chattanooga.

Okay.

And there is also a letter in the file here that Hanukkah has given us uh that is in support of the overlook apartments for uh Mayor Kelly in connection with this, uh stating that 100% of the units will be maintained as an affordable uh housing principally to serve low and moderate income housings at 60 percent of the area meeting income.

And there has been a 4% allocation from the Tennessee housing development agency to help with these uh issues here.

Okay.

So this is involved.

There was also uh some question at all as to whether the county needed to have notification of this event as well.

And Annika sent a letter to the county officials here on May the 8th, uh, informing them of the information as to the date of this hearing, and we were wondering if there would be anybody else coming this morning in connection to that, but no one is showing up.

And the HEB presentation date is today's date on that documentation that was sent to them.

So um the mayor has approved this in accordance with uh state law under TCA 48101312, and because of that, he's forwarded it on to you all if you have any questions about the development to go forward.

Does the county have to sign off on them?

They don't know because it's a municipality issue here in connection with this matter.

We've been getting a lot of feedback though from the county in recent times here where they are have been concerned, I guess, about anything that might be off of the market here for other types of development.

But this is a lie tech development for low and moderate uh folks in here, and the mayor is in support of this project, and we believe this complies with the Tennessee statute that allows that to approve.

So the notification is is purely just an FYI.

Yes, okay.

So that's what I thought.

We got a got a sort of a weird uh email from the county clerk's office back in March, and that's why we wanted to make sure we notified them so they would have an opportunity if they had any questions here today.

Okay, and no one is here today.

So let me ask you this.

Uh not as much on this one then.

On any pilot that we do, do we always give them notifications?

We should at least clearly uh those this is a lie tech case, so it's a little bit different than some on there, but you know, any type of pilot we should be given notification.

I was gonna say, Maria, if you'd make a note that let's try to make sure we do give them notice, I'd rather be on the offensive and on the defensive on those.

Okay.

Okay.

Yes.

Any other questions on this overlook?

Chair have one for attorney knoblet.

You mentioned um that the county assessor's office sent a letter.

Was that in reference to values or what was the purpose?

Uh I think they were just trying to make sure they knew about things coming up.

That was that was the issue on their end of it.

And they were supporting at that point in time.

They they gave us a copy of a resolution that the county had passed.

I believe we sent that on to you here that was in March.

And uh they were wanting to make sure at least they knew when things were coming up in connection with the matter, and uh just wanted to have an opportunity to participate if they felt it was necessary.

Part of the reason I think it's important we notify them is because you you're basically freezing the the current tax base.

And so I think it just from a communication standpoint, so it's important for us to know on the but not find on the front end that a piece of your property that uh obviously what's in the city you pay county taxes on too.

So that that way they're they're notified of it.

Because if they have an issue with it, then the I'd rather them bring up the issue prior to us making a decision on someone's in front of us than getting it done and them saying, well, we had other plans for it.

So I think I think that communication is important.

On your agreement here, the the letter that at least that uh the mayor has signed.

I think you've got that in your packet now.

And the city's court portion and the county's portion that was involved in that, and that protects all of their school taxes that they are uh concerned about as they are currently.

Right.

Any other issues with that, Hanukkah, that I need to address with them.

Nope.

All right.

So does that city portion include the schools?

Well the county commission.

I mean the county portion include the schools.

Okay, because I thought it did.

Okay.

Okay.

Any other questions?

Here I have one other uh for the developer.

So I recall your presentation us, which was extremely thorough a few months ago.

And and you mentioned um that you all might even be doing some self funding prior to to obtaining um the pilot.

Uh have you made improvements to the property?

Yes, we have rehabed 64 off the 132 units as of this point, but uh we made sure to get bond resolution before that.

So uh all of that would be just part of the tax credit development budget.

Great, thank you.

Yeah, but like once we the exterior work and the remaining units one once we closed, we have a construction schedule, it should be done.

We've conservatively budgeted 12 months, but because we're through 64 units already, it should be done well before that.

So by the end of 12 months, you'll feel a brand new building.

That's impressive, thank you.

Uh from the 25th of June, which is our chosen paper.

Because that's when the official 12 month kicks in on the Freddy Loan documents.

You start betting down to a date gets a little more specific.

Okay.

Other questions?

These are all good.

Don't don't let me rush you.

Okay.

See none, all in favor of overlook project, please say aye.

Aye.

Oppose like no motion.

Oh, I thought we did.

Okay.

Thank you.

Have a motion and second.

I did real well on the first one though.

I got you a motion.

One out of two is not bad.

Okay, so we have uh properly moved, motion second on the on the on the on the project.

Um all in favor of the the pilot project, please say aye.

Aye.

Oppose like signed.

And and for the record, that is a resolution of the health educational housing facility board of the city regarding a payment in lieu of tax transaction with overlook apartments LP.

I did I did read that.

You did.

Takes three of us to keep us straight.

Sorry.

Whatever business do we have to come before us?

When are you leaving?

Uh June 12th is my last day.

Okay.

Just wanted to recognize Hanukkah's with the uh housing part of the city and is moving to Chicago, so we appreciate she attends a lot and has been a a great uh uh contributor to the board and other things.

So thank you for what you've done and we're gonna miss you.

We're miss you.

Okay.

I appreciate you calling me this morning and getting me a copy of this letter.

We all wouldn't make it we're on our own.

Okay.

Uh June.

And we have something we have an do you think we're gonna have anything right now.

Okay, so next meeting is June 15th.

We don't have any right now, but if we so put on your calendar, but if not, we will we will we'll pass.

Okay.

Thank you all very much.

We are adjourned.