SUBJECT/RECOMMENDATION:
Title
Approve a Third Mortgage Modification Agreement between Palmetto Preservation, LTD. and the City of Clearwater authorizing a new property manager, HK Management LLC, and permitting administrative approval of future management changes; and authorize appropriate officials to execute the same.
Body
SUMMARY:
On April 3, 2002, the City entered into a mortgage agreement with Greenwood Apartments, LLC, encumbering the property with an original loan amount of $700,000. This mortgage was subsequently amended by that certain Mortgage Modification Agreement and Receipt of Future Advance dated May 14, 2012 and that certain Mortgage, Note, and Other Loan Documents Assignment, Assumption, and Modification Agreement dated January 27, 2022 which transferred the underlying loan to Palmetto Preservation, LTD. and increased the loan amount among other changes. The underlying loan currently has a balance of $1,381,152.39.
This proposed Third Mortgage Modification Agreement would authorize the replacement of the current property manager with a new entity, HK Management LLC. Additionally, it would allow the City to approve and execute future changes in property management administratively, eliminating the need for further mortgage amendments each time a new management agreement is established.
APPROPRIATION CODE AND AMOUNT:
N/A
USE OF RESERVE FUNDS:
N/A
STRATEGIC PRIORITY:
Objective 2.4 - Supports equitable housing programs that promote household stability and reduces the incidence of Homelessness within Clearwater.
