MINUTES OF REGULAR MEETING OF
THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD
OF THE CITY OF MEMPHIS, TENNESSEE
Wednesday, December 6, 2023
The regular meeting of The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee (the “Board”) was held pursuant to public notice published in The Daily News on Wednesday, November 29, 2023, and posted on the Board’s website at: www.memphishehf.com. The published meeting time was 12:00 Noon. The meeting was held in the conference room in the offices of the Board, located at 65 Union Avenue, Suite 1120, Memphis, TN 38103.
The following Directors were present:
Daniel T. Reid, Chairman Monice Hagler, Secretary (Zoom)
James Jalenak (Zoom) Cliff Henderson
Katie Shotts Howard Eddings
The following Director was absent:
Buckner Wellford
Staff and others attending: Stephanie Bryant, Bryce Miller and JP Townsend; Charles E. Carpenter and Corbin I. Carpenter, General Counsel; Katrina Shephard (Zoom), legal assistant to General Counsel; Cheryl Hearn, Deputy City Attorney.
Also participating in person and/or via remote Zoom virtual platform were Peggy Wilkins, William Tuggle, James McNabb, Andrea Smith, Joyce Warren, Johnnie Mae Lee, Helen Evans, and Jon Tenort, all residents of Memphis Towers; Ribquah’devorah S. YhIsreal, resident of Hope Heights; Alex Uhlmann and Caroline Francisco of the Memphis Tenants Union; Arthur Krauer, Tom Mignogna, Angelica Sinito and Renee Weiss of Millennia Housing Development, Ltd representing the Memphis Towers, Cavalier Court, Gospel Gardens, and Hope Heights; Thomas Robinson of Alco Management, Inc. representing Greenbriar Apartments; Lee Patton of Patton and Taylor and Alexander Wharton of Wharton Law Firm representing Kimball Cabana Apartments and Oakshire Downs Apartments and Townhomes; Frank Stockdale Carney and Elizabeth Friary of Evans Petree, PC and Mendel Fischer and Neil Knop representing Grainge Hill Apartments and Bridgeport Manor Apartments; Garry Gee of Property Asset Management, Inc. representing Coves at Yale; Archie Willis, Alex Willis Boddie, and Courtney Jennings of ComCap Partners and Roshun Austin of The Works representing Northside Square Apartments; Philip Balderston, Tameca Parker, Brett Goldenhorn, and Pauline Olden of Odin Properties and David Upton representing Creekside Meadows (Bent Tree) and Mill Creek Apartments; Tie Lasater, Chelsey Jones and Stewart Clark of Key City Capital and Frank Carney and Elizabeth Friary of Evans Petree, PC representing Grahamwood Place and Pinebrook Pointe; Mark Jobe of Glankler Brown, PLLC, Aaron Goodfellow and Yitz Horowitz of Rhodium Capital and David Upton representing New Horizon Apartments; Frank Stockdale Carney of Evans Petree, PC and Simon Weinberger representing Sunrise Villas; Jacob Steimer of MLK50; Shirley Bondon of Black Clergy Collaborative of Memphis; Tim Wheat and Allison Donald of Disability Connection Midsouth; and several members of the public were also present.
With a quorum present, the regular meeting of the Board was called to order at 12:00 Noon by Daniel T. Reid, Chairman.
Chairman Reid stated that in compliance with the Open Meetings Law codified in Section 8-44-101 to 8-44-108 inclusive of the Tennessee Code Annotated, as amended, The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee is holding its regular meeting on Wednesday, December 6, 2023 @ Noon as an open public meeting in its conference room located at 65 Union Avenue, Suite 1120, Memphis, Tennessee 38103.
Chairman Reid stated supplemental Board meeting materials could be accessed on the Board’s website: www.memphishehf.com and reminded all attendees participating via remote access to enter their name and affiliated entities into the Zoom platform for record keeping purposes.
Approval of Minutes
Cliff Henderson moved for approval of the Minutes of the November 1, 2023 Regular Meeting, which was seconded by James Jalenak and the motion passed unanimously after proper roll call vote of the Board members.
Finance Committee Report
Cliff Henderson presented the financial results for the month ended October 31, 2023. After discussion,
James Jalenak moved for acceptance of the Finance Committee Report for the month ended October 31, 2023, properly seconded by Katie Shotts, and the motion passed unanimously after a proper roll call vote of the Board members.
Attorney’s Report
Charles Carpenter presented the legal report, as follows:
1. Carpenter reminded the Board of two (2) material Notices of Default that were filed in November for the following PILOT properties:
a. Pinebrook Pointe: Notice of Default was issued on October 10, 2023
b. Grahamwood Place: Notice of Default was issued on October 27, 2023
Carpenter stated that both properties have been moving forward and are on today’s agenda for a status update. Carpenter reported that the defaults have not been cured at this time and each PILOT Lessee will share with the Board the steps that will be taken moving forward to cure the default notices.
2. Carpenter reported that the PILOT Refinancing of Creekside Meadows (Bent Tree) is still pending, and the PILOT Lessee will provide a status update during the Action Items portion of the agenda and Carpenter reserved additional comments for that time.
3. Carpenter reported one (1) successful PILOT Closing during the month of November 2023 for the Jamesbridge PILOT Term Extension. Carpenter also reported that his firm is working on the PILOT Closing of South City Phase VI, which is a twenty (20) year Memphis Housing Authority (MHA) PILOT, which is anticipated to be closed within the month of December.
4. Carpenter reported the remarketing of two (2) outstanding Series 2021 Bonds for (i) Oakshire Downs Apartments and Townhomes and (ii) Kimball Cabana Apartments. Both projects are on today’s agenda for the Board’s consideration of PILOT Closing Extensions and additional comments will be reserved for that time.
5. Carpenter reported that Greenbriar Apartments, Series 2023 Bonds are ready to close in the month of December 2023. Carpenter reported that there was a delay in the closing date because some of the funds in the capital stack were not finalized timely, so it may be December 15, 2023, or after before the Greenbriar Apartments Series 2023 Bonds will be closed. Also, there is a PILOT associated with the property that will be closed at the same time.
6. Finally, Carpenter reported that his firm has also continued to work with the Environmental Court, as previously reported, and continues to monitor activities in Environmental Court dealing with the various PILOT properties. Also, the Firm is working with the transition team of the new City administration so that they would be aware of the activities and matters ongoing with the Board.
There being no further questions or comments, the Legal Report was concluded.
Public Comment
Chairman Daniel Reid turned the meeting over to Charles Carpenter.
Carpenter stated that there were a couple of matters that the Board wanted to state for the record prior to opening the public comment. Carpenter stated that there was unacceptable behavior that took place following the public comment portion of the Board’s November 1, 2023 Board meeting and as a result, his Firm forwarded a written communication to Alex Uhlmann of the Memphis Tenants Union. Carpenter read the letter into the record:
Dear Mr. Uhlmann:
As you know, our firm serves as general counsel to The Health, Educational and Housing Facility Board of the City of Memphis, Tennessee (the “HEHFB”), and in such capacity, we are sending this communication to express our dissatisfaction with the threatening and intimidating behavior exhibited by certain members of the Memphis Tenant Union directly expressed towards Arthur Krauer of Millennia Housing following the HEHFB meeting on November 1, 2023 held at the principal offices located at 65 Union Avenue, Suite 1120, Memphis, Tennessee 38103.
In addition to the media coverage, the hostile conduct which occurred on the 11th floor in front of the elevators was witnessed and heard by employees of the HEHFB, as well as others. As it is the responsibility of the HEHFB to ensure the safety of all directors, staff, guests and members
of the public who attend its open public meetings, the intentional actions of certain members of the Memphis Tenant Union violated all acceptable standards of conduct and caused potential liability to the HEHFB. Such conduct and behavior of any individual or group is unacceptable and will not be tolerated.
Please speak with your members concerning their conduct and behavior while attending any future meetings of the HEHFB, including before, during and after the meeting.
Carpenter stated that this letter was sent via email and the Board wanted to state this for the record because it is the responsibility of the Board to protect all its guests and invitees and the Board wants to ensure that everyone is civil and respectful of the process as the Board discharges its duties.
Additionally, for purposes of efficiency, Carpenter stated that the Board has had public comments and representatives of the Memphis Tenants Union have spoken at several meetings and the Board appreciates those comments. Carpenter stated that many times, in review of the Board meeting minutes, there have been statements of deficiencies and there has been no time frame in many of the statements, and statements have been repetitive to those made in prior meetings. Carpenter stated that those statements made at prior meetings have been duly noted and recorded in the record. Carpenter stated that the Board would like to structure the public comment period to allow members of the public making comments to include new matters that have taken place from the last meeting up to this date so that it can be more efficient and effective to move forward with the public comment period. Carpenter turned the meeting back over to Chairman Daniel Reid.
Reid stated that the only thing he would add it that as individuals make comments, to please be reminded that this Board is concerned with:
a. Exteriors of the buildings;
b. Tenant Benefits that property owners have promised to the Board as part of their PILOT that they would deliver, which the Board has staff that monitors that; and
c. Rent rolls and occupancy over seventy-five percent (75%)
Reid stated that if the public comment does not relate to one of those things, he will ask the individual making the comment to stop at that time. Reid opened the floor for public comment and advised that all comments should be limited to two (2) minutes per speaker.
1. Peggy Wilkins introduced herself as a resident of Memphis Towers for nineteen (19) years, stating that her compliant is about rent and that Millennia would not accept her November rent because she was recertified in December 2022 and that she owed more than $601 and she should be paying $521. Wilkins stated that Sharon Woods was the property manager at Memphis Towers in December 2022, and she could not get Wilkins recertified in December 2022 or January 2023 and that Woods told Wilkins to pay what she had paid the month before and Woods would get Wilkins certified in February 2023. Wilkins stated that Woods called her on February 8, 2023, when she gets paid, and Woods told her to come pay her rent, which is $514, and Wilkins stated that she has been paying $514 plus late fees for nine (9) months and all of a sudden it is not working. Wilkins stated that she liked to never got a lease, and in fact a lease was never written up for her, and she called to get a lease and it was the exact lease she signed in July plus three (3) sheets of paper with the rent. Wilkins stated that the first sheet had her name on it and Sharon Woods’ name on it dated February 8, 2023. Wilkins stated that the second sheet had to do with the rent, which someone has tampered with, which had her name and apartment number on it with rent stated at $563 and had an effective date of December 1, 2022, and right beneath is her signature dated February 8,2023. Wilkins stated that Millennia is now telling her she has to pay November and December rent at the same time.
Chairman Reid stated that this is a great example of what the Board has no control over. Chairman Reid stated that the Board has authority over the exterior conditions of the buildings, the tenant benefits that were promised by ownership as part of the property’s PILOT; and occupancy oversight, but that the Board has no authority over this type of situation. Chairman Reid stated that he did not stop Wilkins during her comment to provide an example that the Board has no authority over.
Carpenter confirmed Wilkins’ name for the record and stated that there is a representative for Millennia Housing present at today’s meeting, Arthur Krauer. Carpenter stated that Krauer has indicated in prior meetings that he would be pleased to meet directly with any resident. Krauer stated that he has met with Wilkins and her statements were incorrect. Carpenter stated that this is not a dialogue, but informed Wilkins that the management company would be the entity responsible for assisting her with her concerns, because as Chairman Reid stated, the Board does not have the authority to assist in those types of internal management operational matters.
2. William Tuggle introduced himself as a resident of Memphis Towers and stated that he is going to go over this again that there has been no maintenance person at Memphis Towers in the last three (3) months and that no one has been hired yet. Tuggle stated that he has said that before, but another thing is security. Tuggle stated that windows were broken out of seventeen (17) cars, and they were burglarized in the parking lot at Memphis Towers. Tuggle stated that if there was a security guard there, maybe that would not have happened. Tuggle stated that residents want a licensed, legitimate security company, and not just any person hired off the street for ten dollars ($10) an hour. Tuggle stated that the front doors are busted in, and this is the second time in the past two (2) weeks. Tuggle stated that at two or three o’clock in the morning, if someone has a health issue and the paramedics are called, there is no one there to let them in, so they bust open the front doors and this is the second time this has happened in two (2) weeks. Tuggle stated that if there is no security and no one to let them in, they will continue to bust the door down late at night because residents are elderly and are sleeping at that time of night. Tuggle stated that residents feel like prisoners in their own homes and do not feel safe, so they lock themselves in their apartments and are scared to come out. Tuggle stated that it has been over three months with no security and no maintenance person, and it is not right.
3. James McNabb introduced himself as a resident of Memphis Towers, and stated that there is no security, and every time the Fire Department comes, they break in the doors, and the doors right now at Memphis Towers do not work at this present moment. McNabb again stated that every time the Fire Department comes, they break in the doors, and the doors do not get fixed.
4. Andrea Smith introduced herself as a resident of Memphis Towers and stated that the front door has been broken since Saturday night, December 2, 2023, and it is still broken now. Smith stated that anyone can walk in and out and that a killer could come in and do anything to them. Smith stated that people have been sleeping on the stairwell. Smith stated that in October 2023, she complained about her mold. Chairman Reid stated that the Board has no control or authority over the interior of occupied units. Smith stated that her apartment is supposed to be a new apartment. Chairman Reid stated again that the Board has no authority over the interior of occupied units and those complaints must be filed with Code Enforcement, as they have authority over interior conditions of occupied units. Smith stated that Code Enforcement did come to her apartment and was supposed to return in two (2) weeks, but did not, and while the maintenance person was at Memphis Towers, he came in and spray painted over the mold. Chairman Reid stated that the Board has no authority over that. Smith stated that she should not have to resort to guns and stuff to sleep in her apartment because anybody can come to her door and mess with her doorknob. Smith stated that Millennia gave her a ledger stating that she owes money and they have not met with her yet. Smith stated that Millennia representatives told her they would call her with a day to come and meet and they have not told her anything and they still say she owes money, and she does not.
5. Joyce Warren introduced herself as a resident of Memphis Towers and stated that there are no cameras and no security at Memphis Towers. Warren stated that resident's lives are in danger and that seventeen (17) cars were broken into in the Memphis Towers parking lot. Warren stated that if there were cameras, they could have caught the people and could have stopped them, but Memphis Towers has nothing. Warren stated the residents are steadily paying rent and Millennia is steadily getting PILOTs and grants, and Millennia is not doing anything, and it needs to stop.
6. Caroline Francisco introduced herself as an organizer with the Memphis Tenants Union and passed out copies of pictures she stated were pictures taken at Memphis Towers on Sunday, December 3, 2023. Francisco stated that the Memphis Tenants Union members are very clear on what the Board is responsible for. Francisco stated that the reason tenant leaders have continued to come and speak to this Board is because, while they are very clear on what the Board could be accountable for, the Board has laid out very clear expectations for Millennia. Francisco stated that over the past several meetings, including around security, including around the exterior, including around the date of renovations will be done and they have very clear evidence the Millennia has broken those promises, has not met the expectations that the Board has clearly laid out, and continues to cause incredibly damaging circumstances for tenant leaders. Francisco stated that the reason they are all here and the reason they keep coming is because they believe that the Board has an immense opportunity to right this wrong and to hold Millennia accountable for the damages that it continues to inflict upon tenants. Francisco stated that they are here because they sincerely hope that the Board will take the opportunity it has and the immense power it has to do the right thing.
7. Austin Harrison introduced himself as part of the Memphis Interfaith Coalition for Action and Hope. Harrison stated that he is with the Memphis Tenants Union housing group and that the Memphis Interfaith Coalition for Action and Hope stands in solidarity with the Memphis Towers Tenants Union and the broader, city-wide Memphis Tenants Union. Harrison stated that he would like to bring a bigger picture approach to the issues that Millennia is doing at this property and connected to things they know Millennia is doing nationwide. Harrison stated that these properties are not unique, and Millennia manages thirty thousand (30,000) units in twenty-six (26) states. Harrison stated that Millennia are experts in dodging the authority and the regulation framework that exists not just with the Board, but also exists with their HAP contract and HUD also exists with Code Enforcement, which was previously mentioned, and they have shown themselves to be bad faith actors. Harrison stated that Millennia does not do a good job keeping up with that tenants owe, and they do not pay their contractors, which is why renovations are late. Harrison stated that he has heard Millennia has trouble holding legal counsel and that no lawyer in town will work with them because they do not pay them. Harrison stated that to have a bad actor that is showing themselves to be this bad when Tennessee state goals and Title 48, chapter 101, part 3, are to provide a safe and sanitary multifamily facility to be used by persons of low and or moderate income, and that position should be made to appropriate safe and sanitary housing of the affected individuals and the improvements of their living standards. Harrison stated that the Board says they have exterior and that is the way they have operationalized that state code, he will leave that to the attorneys, and the reality is if you can look in every tenants face here and say that you are upholding your state authorized obligation as a Board and that they have safe, sanitary housing conditions when the doors will not close, which is on the exterior, and they cannot keep a security guard. Harrison stated that of course they cannot keep security guards because they are not paying anybody, and they are not paying anyone around them. Harrison stated that these are bad actors, and they are doing it in Jacksonville, Atlanta, and Cleveland, where they are based. Harrison stated that he used to work in Youngstown and he has heard horror stories of properties Millennia manages in Youngstown. Harrison stated that this is a bad actor nationally and, as Caroline Franscisco stated, Memphis has the opportunity to step up and he understands that other people have bigger control and of course if they took the HAP contract that would hurt them because that is guaranteed rent, but Harrison continued, stating that the Board is giving Millennia an incentive and he knows the city liked to treat PILOTs like they are entitlements. Harrison stated that developers are not owed an incentive and we are foregoing future tax revenue. Harrison stated that he hopes the Board chooses to be the hero.
Howard Eddings entered the meeting.
8. Ribqah’devorah YhIsreal introduced herself as a resident of Hope Heights Towers. YhIsreal stated that she last attended the Board’s August 2, 2023 Board meeting, and following that meeting, she was approached by Millennia representatives and her religious creeds were questioned. YhIsreal stated that she did not understand what this was all about and why she was being questioned about her religious creeds, and this was lengthy information they wanted from her. YhIsreal stated that she answered and asked what this was all about, and then she was told that they wanted to know how she was connected to the Memphis Tenants Union. YhIsreal stated that she never has a red t-shirt on, and just stated that she was with Hope Heights, which is Millennia, and two months later she started having problems. YhIsreal stated that she has done her investigation on Millennia and, as Austin Harrison stated, she has come across some very disturbing information. YhIsreal stated that she wants to commend the news people because had it not been for them, she would not know what is going on, and she has only been at Hope Heights for seven (7) months. YhIsreal stated that after Millennia came to her and were talking to her about her religious creed, which YhIsreal stated is no one’s business because she has freedom of religion, she started experiencing difficulties. YhIsreal stated that what she is experiencing is what all these tenants are experiencing because Millennia is bold enough to state what takes place in their lease, which says they have the right to come up under an organization for tenants and to complain. YhIsreal stated that she has not complained, but she is here today because she has that right. YhIsreal stated that her problem is with her recertification and that it is not being done. Chairman Reid thanked YhIsreal for her comments. YhIsreal continued to comment, to which Chairman Reid stated that she was provided two (2) minutes to make her public comment, which she used, and he must move on to any further comments.
Carpenter asked if Alex Uhlmann is in attendance at today’s meeting, to which Caroline Francisco stated that he is in attendance via Zoom, and that all in attendance today are members of the Memphis Towers Tenants Union and the Memphis Tenants Union. Carpenter stated to Fransisco that maybe she can help this Board understand because it wants to be balanced, and the Board is very limited in what it can do. Carpenter stated that the Memphis Tenants Union has stated to the Board in prior meetings that they want this Board to terminate the PILOT, which is the only remedy that the Board has. Carpenter stated that, as Chairman Reid has previously stated, the Board does not get involved in operational matters and the Board’s focus has been outlined, so for violation of those, the only remedy that this Board has is to terminate the PILOT, and Memphis Tenants Union has asked this Board to do that. For the benefit of the Board members and to balance this out, Carpenter asked Francisco if she could state to the Board how that helps address the deficiencies and issues that the tenants are experiencing and that they have come in and expressed to the Board. Francisco stated that as Austin Harrison stated, PILOTs are not an entitlement, but instead an incentive and they know that the money is intended to be used for Millennia to put towards material capital improvements to the property by a reasonable deadline for the benefit of the residents. Francisco stated that the reason the Memphis Tenants Union continues to come into this Board is to show that Millennia does not do its due diligence in achieving that goal. Francisco stated that they hope that the continuation of giving a PILOT to Millennia would incentivize them to do that, but they know that has not ever been the case with Millennia and the reason Memphis Tenants Union is asking the Board to hold Millennia accountable and not give them the PILOT if they cannot meet these needs is to show Millennia that they will not continue to benefit and receive public incentives is they are not actually going to follow through on them. Francisco stated that the Memphis Tenants Union knows that Millennia has plenty of capital to make these improvements, the company is based in Cleveland, Ohio, and that their executives are making tons and tons of money, meanwhile tenants suffer every single day and slander them and threaten and harass them. Franscisco stated the reason that the Memphis Tenants Union is asking the Board to take action is because if incentivizing Millennia is not working, then something has to change because we cannot keep doing the same thing and expecting things to be different while Millennia continues to prosper.
Carpenter stated that based on the external and internal monitoring of the various Millennia properties in the Board’s PILOT program, for the most part, they are in compliance with the Board’s oversight. Carpenter stated that the goal of the Board is to help to assist the residents, but that the Board does not have all power and all authority. Carpenter stated that when terminating the PILOT, in thinking through this, that will increase the taxes for the property and with Memphis Towers for example, based on the amount of resources that have been placed into the property from the original PILOT application, that is approximately $17 million, and to the Board’s understanding, it has increased beyond that because of the cost escalations. Carpenter stated that to terminate the PILOT would add over four hundred thousand dollars ($400,000) per year in new taxes to the property, so when the Memphis Tenants Union is asking the Board to terminate the PILOT and the Board is trying to benefit the tenants, how does that benefit the tenants to address the issues that have been raised to the Board? Carpenter stated that he is directing this question to Caroline Francisco, who he understood was the official of the Memphis Tenants Union. Francisco stated that there is no designated leadership structure and that everyone in attendance today is a representative of the Memphis Tenants Union. Carpenter stated that Alex Uhlmann, in prior Board meetings, has stated otherwise. Franscisco clarified that Uhlmann is with the Memphis Tenants Union and is a paid staff organizer, and that all the tenant leaders here today are tenant leaders of the Memphis Towers Tenants Union. Carpenter stated he thought Francisco was a paid staff member, just like Uhlmann, but as she clarified she is not, Carpenter withdrew the question. Francisco stated that she would like to answer the question and clarified that she is an unpaid organizer. Franscisco stated again that the Memphis Tenants Union members are very clear on what the Board has the power to do and they are very clear that the Board is not the end all be all in holding Millennia accountable, and they understand that. Franscisco stated that their question to the Board is if it continues to give Millennia this incentive, and they continue to fail the Board’s expectation, why is Millennia deserving of the incentive, because the incentive is not incentivizing, but is allowing Millennia to profit off of tenants, as they are doing across the country and cities across America.
Carpenter thanked Francisco for her response and stated for the record that Memphis Towers is still under construction. Carpenter continued by stating that the Board has both internal monitors, which are staff members of the Board, and an external monitoring firm. Carpenter stated that his firm also monitors matters in the Environmental Court, which is an actual court that has more authority than this Board does, and his Firm and Board staff also communicate with Code Enforcement. Carpenter stated that the Board is not leaving tenants out there by themselves and the Board is working cooperatively with all the entities that oversee multifamily housing, health conditions, and other items that tenants have brought to the attention of the Board. Carpenter stated that the Board does have representatives of Millennia in attendance to respond to this Board on the items that this Board has jurisdiction over. Carpenter thanked everyone for their comments.
YhIsreal asked that when the Board stated that Millennia is in compliance, is it saying that when they do recertifications like they are supposed to. Carpenter stated again that the Board does not control that, and the Board does not have the authority to address that from the standpoint of the contractual relationship.
Chairman Dan Reid thanked everyone for their public comments and expressed his appreciation for everyone being here to voice their concerns.
[At this point, Austin Harrison began pushing the chair of an invited guest of the Board (Tie Lasater), that has no association to Millennia, making threatening remarks and motions saying guests need to let people get out of the room, and that the tenants are the violent people, but others cannot move their chairs. Chairman Reid asked staff to call Memphis Police for the safety of the Board, staff, and attendees of the meeting at this time.]
There were no further questions or comments.
Action Items-
1. Status Update for Millennia Housing Portfolio (d/b/a Memphis Towers, Cavalier Court, Gospel Gardens, and Hope Heights)
Charles Carpenter introduced this agenda item and stated that based on Memphis Towers being on the Board’s watchlist and the Board looks at the entire portfolio of the developer, Carpenter asked Millennia to provide the Board with an update on each of the four (4) Millennia properties participating in the Board’s PILOT program. Carpenter turned the meeting over to Arthur Krauer for him to provide the current statuses. Krauer began with Memphis Towers, stating that Lewis Brothers Construction turned over all of the units to Millennia and Millennia walked the units. Krauer stated that, as the Board was aware, Marous Brothers has issued a lien, and the Memphis Towers project is $5 Million over budget at this point, and Millennia still has equity installments remaining, so Millennia has equity to cover all of the outstanding costs, but Millennia is in a dispute with the contractor about the accuracy of some of these costs. The contractor’s legal method to secure their claim is a lien, which they have done so, and Millennia is in negotiations with Marous Brothers now to remedy the situation and complete construction. Carpenter asked what the status of the construction is now. Krauer stated that the units are complete and that the first floors, elevator bays, and landscaping are the final pieces of the puzzle, and there are a few other small items, but those are the last pieces and Millennia is moving to complete those now.
Cliff Henderson asked the Board’s internal compliance staff to provide an update on each Millennia property. Bryce Miller stated that at Memphis Towers, he has observed progress with construction. Miller stated that the back gate that had previously been a security issue has now been secured and rewelded back together, so there is no entrance to the back of the property. Miller stated that all doors are secure aside from the front door, which was intentionally broken by the Fire Department. Miller stated that he spoke with Krauer while at the property during a property inspection on Tuesday, December 5, 2023 and he was told by Krauer that a remedy was in place and should be installed today, December 6, 2023. Miller stated that he was also at Memphis Towers performing a property inspection the morning following the car break-ins and the issue was not secluded to the Memphis Towers parking lot but took place across the entire area and surrounding parking lots. Miller stated that cameras are in place, but Millennia still only has two (2) cameras that are operational and monitor two (2) angles of the front door. Miller stated he was told that all cameras would be functional by the end of this week. Henderson asked if these cameras were previously functioning and then went offline? Miller stated that as far as he has observed, these cameras were installed as part of the current renovations and have never been functional to his knowledge. Miller stated that Memphis Towers has had the two (2) cameras monitoring the front door, which monitors the front door and the front desk and these are the only two (2) operational cameras he has observed.
Krauer stated that cameras will monitor the hallways and elevator bays on every floor, as well as when they are final, the lobby and community space. Miller stated that the positioning of the cameras will be efficient and will monitor every floor and multiple different angles once they are all operational. Miller stated that it is always a challenge to secure an active construction site and he feels like Millennia has done a fairly good job in trying to keep the property secure during active construction. Carpenter stated that one point on the operations of the camera system and what Henderson has alluded to at several meetings is it was always imminent and has not come online yet, and asked Krauer what the status is and when will the security cameras be fully operational. Krauer responded that he should have a clear picture of that by Monday, December 11, 2023. Krauer stated that it is part of the last push for construction. Carpenter asked what Millennia’s expectation of the operational date is. Krauer responded that Millennia’s goal is by the end of December 2023. Carpenter asked what the challenge is with getting the cameras operational and online. Krauer stated the challenge is getting them scheduled, getting an equity payment, making sure that Millennia has the sources to cover all the expenses to complete, and stated that it is part of the lien with Marous Brothers. Carpenter asked what the timetable is for leasing up the new units. Krauer replied that Millennia’s hope is to have an additional thirty (30) units leased by the end of December 2023, and another thirty to fifty (30-50) units leased by the end of January 2024 and Millennia’s goal to have Memphis Towers leased in full by April 2024.
Henderson asked Krauer about the local property management and front desk personnel and how he would respond to and address the issue of the Fire Department having to break the front door. Krauer stated that Millennia has a plan in place to install an ox box, which is essentially an exterior, highly secured locker that are typically installed in all sorts of high rises and public buildings, which first responders have access to the entire building. Krauer stated that the ox box should be installed withing the next two (2) weeks. Krauer stated that for the record, the damage to the front door was not due to an emergency situation this time. Krauer stated that the door has been damaged once before for an emergency, but the concern is that it is actually residents damaging the front doors and Millennia has camera footage of the first time the door was damaged by a resident who was brought to a Memphis Tenants Union meeting, threatened police officers, assaulted police officers, and has since been evicted. Krauer stated that Millennia believes the ox box solves the front door problem long term and gives full access to the building to first responders, and the camera system will provide the level of security this property needs to be successful long term.
Krauer stated that he understands the concerns about the construction, as he also has concerns about delays in construction as well, and his job is to finalize that, get the cameras up and running so that the property will function successfully long term. Henderson asked about the presence of staff. Krauer stated that they do not have 24-hour coverage now, but there was a significant period of time when the property was on fire watch while finalizing the fire systems, so for that significant amount of time, Millennia did have 24-hour coverage. Krauer stated that at the time of the car break-ins, there was a staff member at the front desk, and they may have been walking the building at the time, but there were four or five other properties where victims were assaulted aside from Memphis Towers.
Henderson stated that the Board needs some timelines in order to hold Millennia accountable. Henderson confirmed that cameras are intended to be operational by the end of December 2023, the front door is supposed to be remedied within the next two (2) weeks, and Henderson asked when construction is expected to be completed on the lobby and other common areas. Krauer stated that he has a meeting on Friday, December 8, 2023 with Millennia’s executive team and he will be able to provide Board staff with an ETA on all outstanding items on Monday, December 11, 2023. Henderson stated that security is the main issue, and asked if Millennia is fully staffed at Memphis Towers. Krauer stated that Millennia just hired two (2) maintenance techs to finalize the staff at Memphis Towers. Henderson asked how long Memphis Towers went without adequate staff coverage, to which Krauer replied approximately three (3) months. Henderson asked if Memphis Towers has a backlog in maintenance requests. Krauer stated that Millennia has a regional maintenance manager that spends an enormous amount of time at Memphis Towers, making sure that we are taking care of the issues we are facing there, but Krauer stated that there is a work order log, but he does not believe that they are behind. Krauer stated that first, these are newly renovated units, so by and large, they are not breaking down. Krauer also stated that the mold that was referenced by the resident in attendance at today’s meeting is popcorn ceiling in which one area of the popcorn ceiling has a little more depth than other areas of popcorn. Krauer stated that he walked this unit himself, and the unit itself was immaculate, which Millennia appreciates from an owner’s point of view, but the resident still insists it is mold. Krauer stated that Millennia is up to date in bringing two (2) maintenance techs and making sure that Millennia can continue to meet those expectations. Krauer stated that he will be at the property the remainder of the day if anyone has any issues and would like to come to the office or would like him to take a look at their unit to make sure their issues are resolved, he is more than happy to do that, and if someone has issues with their ledger, Krauer stated that he is happy to talk about ledger issues and make sure everybody is taken care of. Krauer stated that Millennia does have a new property manager at Memphis Towers, and they are hiring an assistant property manager now to make sure Memphis Towers is fully staffed on the administrative side. Krauer stated that Millennia also has a new regional manager, and he believes this is going to be a much stronger team to help Millennia move forward.
Henderson stated that these residents are here making public comments to the Board because there have been gaps in service, so there is something to this. Henderson stated that based on the statements made by Krauer, there were gaps in maintenance technicians and other areas, and Millennia seems to be putting remedies in place and asked if over the next couple of months in bringing on new staff, does Krauer estimate these gaps to be covered. Krauer agreed that there have been gaps and stated that Millennia will certainly be stronger looking forward. Corbin Carpenter asked for confirmation that Millennia would still be self-managing with the hiring of new management personnel, to which Krauer replied yes.
Charles Carpenter asked the Board’s internal monitors to provide status updates on their observations of conditions of the remaining Millennia properties participating in the Board’s PILOT program. Bryce Miller stated that Hope Heights is an exemplary property, and he observed no issues at his most recent inspections. Miller reported that Cavalier Court has endured two (2) fires in the past few months and construction work has been taking place at each recent visit to remedy those burnt units. Miller stated that internal monitoring staff has gone to each of the Millennia properties with the listing of stated tenant benefits, and from what they are able to observe, those stated tenant benefits are being met. Miller reported that a large pothole at Cavalier Court that had been an ongoing issue at the property in the past has since been remedied and lighting and security monitoring appears to be in working order at both Cavalier Court and Gospel Gardens. Miller reported that there was a spell of trash accumulation approximately two (2) months ago and some broken windows observed at Gospel Gardens, but most of those appear to have been fixed, aside from one window that was observed to be broken on yesterday, but all trash has been cleaned up. Miller stated that there appears to have been some painting and pressure washing that has taken place at Gospel Gardens as well, and the property appears to be in better shape than in past visits to the property. Krauer asked for clarification on where the remaining broken window was on the property, to which Miller described the location toward the back of the property. Krauer stated that he would be going by the location today to review that, but also that Millennia’s focus at both Cavalier Court and Gospel Gardens is improving occupancy, and these properties are going to be safer and stronger when they are fully occupied. Krauer stated that Millennia has a target of right (8) units in the month of December 2023 and ten (10) units in January 2024 to get back to stabilized occupancy and success.
Carpenter provided a recap of the timeline provided by Krauer, where he stated that he is meeting with his executive team on Friday, December 8, 2023 and then on Monday, December 11, 2023, Krauer stated he would outline a path forward in writing to Carpenter’s office that he will be able to share with the Board. Carpenter stated that based on the anticipated timelines that he would recommend Millennia to come back and report to the Board at its February 7, 2024 Board meeting. Carpenter stated that at that time, it would be based on Millennia’s statements to the Board, but there should be a path forward and the Board hopes to be looking at stabilization and all the other issues would hopefully be completed or resolved, or a status update will be provided at that time. Cliff Henderson asked that a status update on the security cameras be provided later this month to Board staff. Additionally, Henderson stated that he is concerned about the lien and if things do not go well with that, what are the mitigating factors there and how will that affect the completion of construction at Memphis Towers. Krauer stated that Millennia plans to bring in a local contractor to complete the final stages of construction and Millennia is currently in the final stages of negotiations with a local contractor and Krauer would be able to provide an update to the Board by the end of the month December 2023. Henderson expressed concern regarding the timing of upcoming reporting to the Board. Carpenter stated that the Board’s internal and external monitors would continue with ongoing inspections of the properties, but the timing of the next report to the Board would be a Board decision.
Chairman Daniel Reid recommended that internal monitors perform an inspection of Memphis Towers around December 17 or 18, 2023 and if internal monitors report that they are not observing the necessary improvements, then the Board will ask Millennia to appear before the Board prior to the February 7, 2024 Board meeting. Board staff clarified that on the inspection to be performed on December 17 or 18, 2023, that items to be reviewed on site at Memphis Towers would be the status of the front door and the status of the security cameras. Henderson also confirmed that an update on the lien be provided, to which Krauer agreed he would provide an update on that and the path forward in his written correspondence to Carpenter’s office to be distributed to the Board. Howard Eddings asked for clarification on what is expected to be done with the security cameras. Henderson asked Krauer if the security cameras becoming operational are being delayed due to the current lien. Krauer replied that the security cameras operation is tied into the financial finish of the property, so yes. Henderson asked if there are issues with the lien, if that will have a direct effect on the security cameras being operational. Krauer replied yes and stated that is why he would like to make sure he has a path to completion for the Board to provide an understanding and confirmation of when they will be completed, but the goal is that the security cameras are operational by the end of the month December 2023. Carpenter status the significance of the security cameras being operational is that they are part of the stated tenant benefits for the property. Representatives for Millennia are asked to return to the Board’s February 7, 2024 Board meeting. There being no further questions or comments,
There was no action taken by the Board and the update was provided for informational purposes for the Board.
Members of the Memphis Tenants Union left the meeting.
Arthur Krauer left the meeting.
2. 2nd Bond Inducement Resolution Extension for APP Greenbriar Partners, LLLP (d/b/a Greenbriar Apartments)
Charles Carpenter introduced this agenda item, stating that action items two and three are the same development team, Alco Management Inc. Carpenter reported that his firm is in the process of closing the Bond financing and PILOT for this project. Carpenter reported that there was a delay because part of the capital stack was HOME funds from the City of Memphis and that is in the process of being closed currently. It is anticipated that both the Bond and PILOT will be closed within the next thirty (30) days, and if so, based on the Board’s policies and procedures, there will be no closing extension fee charged for either transaction. Carpenter introduced Alco Management, Inc.’s representative Thomas Robinson and turned the meeting over to him for any further comment. Robinson stated that his team is working toward a closing for the Bond and PILOT on December 20, 2023 and Alco is wrapping up signatures with the City of Memphis and other financial partners, as there had been a delay in getting all the documents circulated and signed, but he believes everything is on track and expressed his appreciation to the Board. Based on those comments, Carpenter recommended approval. There being no further questions or comments,
Cliff Henderson moved to approve the 2nd Bond Inducement Resolution Extension for APP Greenbriar Partners, LLLP (d/b/a Greenbriar Apartments). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Monice Hagler recused herself from this vote.
3. 1st PILOT Closing Extension for APP Greenbriar Partners, LLLP (d/b/a Greenbriar Apartments)
Carpenter stated that this application is in line with Action item two and it would be closed at the same time as the Bonds and recommended approval. There were being no further questions or comments,
Katie Shotts moved to approve the 1st PILOT Closing Extension for APP Greenbriar Partners, LLLP (d/b/a Greenbriar Apartments). James Jalenak seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Monice Hagler recused herself from this vote.
Thomas Robinson left the meeting.
4. 4th PILOT Closing Extension for Kimball Cabana, LP (d/b/a Kimball Cabana Apartments)
Lee Patton and Alex Wharton entered the meeting.
Carpenter introduced this agenda item stating that Action Items number four and five are the same development entity. Carpenter stated that during the legal report, he indicated that bonds for Kimball Cabana and Oakshire Downs were remarketed on December 1, 2023 successfully, and the working group has been working to move forward to complete the closing of the PILOTs for each property. Carpenter turned the meeting over to representatives for further comment. Lee Patton of Patton and Taylor Enterprises has been engaged as the general contractor for each development. Patton explained that he has also been helping on the development side. Patton stated the projects were impacted by COVID and stalled out, and then there were pricing ramifications after COVID that needed to be worked through among other challenges, but everything looks to be coming together. Patton stated that he is here before the Board to answer any questions they may have, and that he has been working on both projects since 2018 and both projects are good opportunities, the housing inventory is needed in the respective communities, and he would love to see it happen. Patton turned the meeting over to Alexander Wharton with Wharton Law Firm, legal counsel to the applicant, for further comment. Wharton stated that he has been involved with these groups since July or August 2022 and was initially brought in during a litigation piece but is happy to report that all issues have been resolved as of July 2023. Wharton stated that the projects have received a soft verbal commitment, a report was also provided to Judge Dandridge of the Environmental Court, and these transactions are anticipated to close withing the next ninety to one hundred twenty (90-120) days. Wharton stated that the debt commitment was obtained in April 2023 for both projects and now that litigation is complete, that has eased some of the reluctance from other partners to get involved.
Carpenter asked if both properties are still in Environmental Court, to which Wharton responded yes. Wharton stated that he appeared before Judge Dandridge the week of November 27, 2023 and the cases have been reset to the middle part of January 2024. Wharton reported that Judge Dandridge was pleased with the condition of the property at Oakshire Downs, and Kimball Cabana had an issue with some vegetation. Wharton stated that with Kimball Cabana and the location as it sits right on the edge of Kimball close to Lamar Avenue, there is an ongoing issue with individuals trying to come onto the property by cutting the chain link fence, so there are some small things that need to be maintained. Wharton stated that he spoke with the property manager this morning at Kimball Cabana and things were being done to shore up those issues, but Oakshire Downs is in good shape and his firm is always in Environmental Court and they are keeping a close eye on these properties.
Wharton reported that the tenant level at down to sixteen (16) tenants at Oakshire Downs and six (6) tenants at Kimball Cabana, so they are trying to maintain their presence there and maintain it to good standards so that once work beings, it can move forward. Chairman Reid stated that if approved, this closing extension would be for a six (6) month period. Katie Shotts asked if there is a precedent for a fourth closing extension. Chairman Reid stated that there have been fourth closing extensions approved in the past, but the hope is that this is the final closing extension to get the projects where they need to be to close. There being no further questions or comments,
Monice Hagler moved to approve the 4th PILOT Closing Extension for Kimball Cabana, LP (d/b/a Kimball Cabana Apartments). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
5. 4th PILOT Closing Extension for Oakshire Apartments, LP (d/b/a Oakshire Downs Apartments and Townhomes)
There being no further questions or comments,
Katie Shotts moved to approve the 4th PILOT Closing Extension for Oakshire Apartments, LP (d/b/a Oakshire Downs Apartments and Townhomes). Cliff Henderson seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Lee Patton and Alexander Wharton left the meeting.
6. 2nd PILOT Closing Extension for Mazal in Grainge Hill, LLC (d/b/a Grainge Hill Apartments)
Frank Stockdale Carney, Elizabeth Friary, and Neil Knopf entered the meeting.
Carpenter introduced this agenda item as a new PILOT application, stating that this developer is successfully maintaining other properties in the Board’s PILOT program. Carpenter turned the meeting over to Frank Stockdale Carney and representatives for further comment. Carney introduced himself, Elizabeth Friary, and Neil Knopf to the Board. Carney stated that ownership has worked with the lender and intends to close this transaction within the next thirty (30) days. Chairman Reid stated that is approved, this extension would be for a six (6) month period. There being no further questions or comments,
Cliff Henderson moved to approve the 2nd PILOT Closing Extension for Mazal in Grainge Hill, LLC (d/b/a Grainge Hill Apartments). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
7. 1st PILOT Refinancing Closing Extension for Cambridge Development Holdings, LLC (d/b/a Bridgeport Manor Apartments)
Carpenter introduced this agenda item and turned the meeting over to Frank Stockdale Carney and representatives for further comment. Carney stated that this is a refinancing that his firm has been working on and ownership has worked with the lender and intends to close this transaction within the next thirty (30) days. There being no further questions or comments,
Cliff Henderson moved to approve the 1st PILOT Refinancing Closing Extension for Cambridge Development Holdings, LLC (d/b/a Bridgeport Manor Apartments). James Jalenak seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Neil Knopf left the meeting.
8. Affordable Multifamily PILOT Term Extension Application for Coves Apartments Utah, LLC (d/b/a Coves at Yale Apartments)
Garry Gee entered the meeting.
Carpenter introduced this agenda item as a PILOT Term Extension application, introduced Garry Gee, the owner of the property in attendance representing this application, and asked that Gee provide a status of the property occupancy and what plans he has for the property moving forward. Gee reported the property maintains an approximate ninety-eight percent (98%) occupancy. Gee stated that he purchased this property in 2017, and there was a camera system, which has been operation, but ownership has engaged in new contractors to bring on a new camera system, and those cameras are being installed currently and should be completed within the next two (2) weeks. Gee stated that the property also has a guard service that is in place, and the property is in the Safeways program, which Gee stated is very beneficial, and the property will continue to participate in the Safeways program. Gee stated that the exterior of the property continues to be maintained, with improvements, and tenants appreciate ownership and management ensuring the property is well maintained and very clean. Gee stated that ownership continues to upgrade the interior of the units on new move ins and as leases expire, ownership gives tenants the option to renew their lease and includes a list of different improvements the tenant can select from as part of the lease renewal for their unit. Carpenter thanked Gee for his report to the Board and invited the Board’s internal monitoring staff to comment on their inspections of the property. Bryce Miller stated that his most recent visit to the property was on December 5, 2023, and the property continues to appear very clean and well maintained and is an exemplary property. Carpenter stated that the property is in good standing and in compliance with the Board’s policies and procedures and recommended approval. There being no further questions or comments,
Monice Hagler moved to approve the Affordable Multifamily PILOT Term Extension Application for Coves Apartments Utah, LLC (d/b/a Coves at Yale Apartments). Howard Eddings seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Cheryl Hearn left the meeting.
Garry Gee left the meeting.
9. Affordable Multifamily PILOT Application for Northside Square, Inc. (d/b/a Northside Square Apartments)
Archie Willis, Alex Willis Boddie, Roshun Austin, and Courtney Jennings entered the meeting.
Carpenter introduced this agenda item as a new PILOT application for a project that used to be Northside High School. Carpenter stated that The Works, Inc., as developer has come in with a very creative project and has structured a condominium regime for each floor of the Northside High School. Carpenter reported that his Firm and Board staff have completed the pre-submittal conference with the applicants, and they have provided all required information. Carpenter stated that the third level of the building will be multifamily housing section of the project, which this PILOT application would be applicable to, and the application complies with the Board policies and procedures. Carpenter turned the meeting over to representatives present for further comments. Representatives introduces themselves as follows: Roshun Austin, President of The Works, Inc., which is the sponsor and owner; Alex Willis Boddie, Vice President of Development for ComCap Partners, which is the lead developer on the project; Courtney Jennings with ComCap Partners; and Archie Willis with ComCap Partners. Archie Willis began by stating he and his team are very grateful to be here and this is an exciting project. Willis stated that his team has closed the commercial components on November 15, 2023 and the total project cost is approximately seventy-eight million dollars ($78,000,000) and sixty-eight million dollars ($68,000,000) will be applied to the first three floors being the basement, first floor, and second floors. Willis stated that between ten and eleven million dollars ($10,000,000-$11,000,000) will be used for the residential component, which will be forty-two (42) units of affordable housing, all planned to be offered to residents at eighty percent (80%) or below area median income (AMI), and the rest which will comply with the Boards requirements that forty percent (40%) of the units must be provided to resents at or below sixty percent (60%) of the area median income (AMI). Willis stated the project is also receiving funding from the City of Memphis Affordable Housing Trust Fund, financing from First Horizon Bank, and then a significant civic investment from an anonymous philanthropic partner. Willis stated that everyone is very excited about the project and there will be a groundbreaking ceremony on Friday, December 8, 2023 at 11:00 am. Willis stated that renovations are intended to be completed in fall or early winter of 2025 and have the building occupied around that time. Willis stated that this is very significant investment in a traditionally low-income neighborhood where there has been a lack of investment over the years, and Willis believes this is the largest private sector investment in a Black neighborhood in the history of the City of Memphis and he and his team are very proud of that fact. Willis turned the meeting over to Roshun Austin for further comments on how The Works, Inc will be part of this project.
Roshun Austin stated that the PILOT application provided the description of some of the support services that The Works, Inc will provide long term. Austin stated that The Works, Inc is a thirty (30) year old community development corporation, and outside of being developers, they do a lot of social programs with tenants at different sites in south Memphis, Frayser, and north Memphis and the Klondike neighborhood. Austin stated that these services include cooking education, a mobile grocery store, and a lot of health and wellness. Austin stated that this will be part of this project’s tenant benefits partnering with primary care organizations and tenants to extend services around health and wellness. Austin stated that there is an effort beyond the school through working throughout the entire Klondike neighborhood and The Works, Inc. partnership with several non-profits is the largest landowner in an effort to ensure long term affordability in the neighborhood with zero displacement.
Carpenter stated that his Firm and Board staff were exceptionally impressed with the tenant benefits that will be provided at Northside Square Apartments and asked Austin to provide further detail on those for the Board. Austin stated that from her perspective, her team likes to say with their developments with tenants that they like to build good tenants. Austin explained that to mean that her team is addressing all the issues they can that are barriers in the families' lives. Austin stated that her team does not only look at the collection of rent, as that is not necessarily a benefit because they have lower rent, but other things must be addressed like access to food and how this impacts budget, healthcare issues, and the top five (5) household expenses. Austin explained that for anyone, the top five (5) household expenses are (i) housing, which includes utilities, (ii) transportation, (iii) food, (iv) health, and (v) education. Austin stated that her team builds energy efficient buildings to assist with utility costs, and they try to address transportation where they can through things like pedestrian and cycle infrastructure and help people to navigate spaces safely. Austin explained that services offered by The Works, Inc. vary because needs may be different from different neighborhoods. Willis stated that the project itself offers additional amenities to tenants, both commercial and residential, through a renovated courtyard, a gymnasium that will be operated by a non-profit and provide after school programs for children and families in the neighborhood, Life Doc will also be a comprehensive healthcare provider with a focus on preventative healthcare that will be a commercial tenant on site, and the site is also surrounded by city amenities. Willis stated that the site is bordered by the North Branch Library, the Katie Sexton Community Center, Charles M. Morris Aquatics Center, Klondike Park, and Schools of Perea Charter School. Austin stated that commercial tenant Moore Tech will also be located in the building’s basement, so that those people that would like to advance in their career and technical training would have that available to them, as well as another commercial tenant that provides high school diplomas to adults that dropped out of high school. Alex Willis Boddie stated that in addition to the mobile grocery store that will bring healthy food to the neighborhood, there will also be a food hall in the building, which will address some of the issues of this area being a food desert and the limited access to food options. Boddie stated that this team is committed to bringing in a variety of food options, which will include additional healthy options for the tenants.
Carpenter stated that from the condominium aspect, the Board has been introduced and approved this concept through the Memphis Housing Authority (MHA) and the ways it has done renovations of their four (4) towers, and his Firm has worked with the Shelby County Assessor’s Office, and the Assessor is comfortable with the entire process. Carpenter stated that this application complies with the Board’s policies and procedures and recommended approval. Cliff Henderson commented that he wishes this project information was captured publicly, to which all other Board members agreed, and expressed their appreciation to this project team for moving forward with this creative and innovative project. There being no further questions or comments,
Cliff Henderson moved to approve the Affordable Multifamily PILOT Application for Northside Square, Inc. (d/b/a Northside Square Apartments). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Monice Hagler recused herself from this vote.
Archie Willis, Alex Willis Boddie, Roshun Austin, and Courtney Jennings left the meeting.
10. Affordable Multifamily PILOT Term Extension Application for Bent Tree LLC (d/b/a Creekside Meadows) (Deferred from the October 4, 2023 Board Meeting)
Phil Balderston and David Upton entered the meeting.
Charles Carpenter introduced this agenda item by stating that it was deferred from the Board’s October 4, 2023 and November 1, 2023 Board meetings. Carpenter stated that representatives for Creekside Meadows (Bent Tree) have been appearing before the Board for several years. Carpenter reported that his Firm has been in communication with the applicant’s legal counsel regarding the pending refinancing and advised that there has been a suggestion of interim financing to facilitate restructuring of outstanding financing and completion of certain capital improvements prior to permanent financing being closed, and the term sheet has been shared with the Board and Carpenter turned the meeting over to representatives Phil Balderston and David Upton for further comments.
Upton stated that the Board should have received a Freddie Mac commitment letter from Berkadia Bank, and they anticipate the long term 30-year financing to close in the first quarter 2024. Upton stated that there have been changes from last winter with the underwriting when Creekside Meadows (Bent Tree) representatives began this process, so there has now been additional underwriting and additional inspections required and the transaction is anticipated to close in the first quarter of 2024. Upton stated that Berkadia is the lender now and the plan is to replace an approximately $5.3 million dollar loan and some other debt with a long-term Freddie Mac loan. Upton stated that the existing loan has now come to term and the proposal is that the loan would be replaced by another bridge loan from another fund and will escrow $300,000 for repairs that can be done prior to the Freddie Mac closing for repairs Freddie Mac is requiring, in addition to $1.3 million escrowed for repairs to the property that were committed to by ownership to get the property back into compliance with the Board’s PILOT program. Upton stated that many of the repairs discussed with the Board in prior Board meetings are being done now, but some of the larger capital items will be completed following the closing of the Freddie Mac loan.
Phil Balderston seconded Upton’s comments and stated that the Freddie Mac loan is requiring that certain items be completed in the next three to four (3-4) months, and this interim financing through Berkadia will allow ownership to get these items completed, and many of these Freddie Mac requirements are some of the same items committed to by ownership to the Board. Balderston stated that he walked both Creekside Meadows (Bent Tree) and Mill Creek Apartments the morning of December 6, 2023 and both properties are clearly in better condition, Mill Creek is excellent condition and Creekside Meadows (Bent Tree) in good condition, and he is committed to continuing work on Creekside Meadows (Bent Tree) as aided by this bridge financing to get the property closer to the condition of Mill Creek prior to the formal Freddie Mac closing, which should be in the first quarter 2024. Balderston stated that some of the items required by Freddie Mac include the parking lot being completely redone and painting of all the buildings.
Chairman Reid asked Bryce Miller to provide an update of his observations of the properties to the Board. Miller stated that Mill Creek still has a hole in the fence located near the very back corner of the property that is covered in a blue tarp. Balderston stated that the hole would be fixed this week. Miller stated that aside from that, the property seemed to be secure and quiet. David Upton stated that the curb appeal for both properties has come up quite a bit, and to complete the project, there will be the Berkadia swap of the bridge loan, and then Berkadia will close the Freddie Mac permanent financing in the first quarter of 2024, which will provide the funds ownership needs to complete the items that have been discussed previously. Balderston stated that his team has continued to work on items previously discussed with the Board and the property conditions are symptomatic of that for both assets and his team will continue with outstanding items. Balderston stated that during his visit to Mill Creek the morning of December 6, 2023, there was a licensed electrician on site going unit-by-unit and repairing every single cable box, as was already done and completed at Creekside Meadows (Bent Tree).
Carpenter stated that the way the commitment letter reads is that the escrow funds will be held pending certain conditions and asked representatives to explain that further to the Board. Balderston responded that $1.3 million is escrow funds from the interim financing will be held in its entirety until the Freddie Mac loan closes, and that was specifically done in conjunction with the PILOT and those funds have been set aside strictly for repairs that have been agreed upon with his team and the Board. Upton stated that Berkadia has been working with Odin properties on a number of properties, and this escrow account if evidence of Odin Properties’ commitment to the Board for repairs and completion of Creekside Meadows (Bent Tree) and Mill Creek Apartments.
Carpenter explained that there are two (2) pending issues with the Board: (i) the refinancing application for Creekside Meadows (Bent Tree); and (ii) the PILOT Term Extension application for Creekside Meadows (Bent Tree). Carpenter stated that the current PILOT term expired in October 2023, and one of the things his firm has spoken to the applicant and their counsel about is that the city taxes and county taxes, which compose the PILOT, they operate with two (2) separate systems. When there is a term expiration, the county system automatically places the property back on the tax rolls at the end of the year and they will reappraise the property and move forward with the process. Carpenter stated that with the PILOT Term Extension, the Board wanted to have certain improvements made to Mill Creek as well as Creekside Meadows (Bent Tree), which had to be shown with the evidence of funding there and that is why these items are all bundled together. Carpenter asked, based on the comments made, what is being requested of the Board at today’s meeting in order to continue to facilitate the shoring up of this process? Upton stated that they are requesting approval of the interim financing, which should be closed immediately upon approval from the Board, and they are requesting an extension to the end of the first quarter 2024 of the PILOT Term for Creekside Meadows (Bent Tree) in order to give ownership the time necessary to compete all items required by Freddie Mac and to get the permanent financing closed for Creekside Meadows (Bent Tree). Upton stated that he has spoken with the Shelby County Assessor’s office, and they have assured him that if ownership provides documentation to show that Creekside Meadows (Bent Tree) has a pending PILOT Term Extension Application with the Board, that they would not return the property back to the tax rolls until that is resolved.
Carpenter stated that the Board has no control over the operations of the Shelby County Assessor’s office, but he wanted to ensure that the notification was made so if in fact the property does come back and there will be additional steps required in order to reinstate the process and put the property back into the program. Carpenter stated that this is an issue of timing as the Board goes forward with its consideration and the developer has shown good faith and made positive steps forward. Carpenter asked what the current occupancy is at each property? Balderston stated that Mill Creek is approximately ninety-three percent (93%) leased and Creekside Meadows (Bent Tree) is approximately ninety percent (90%) leased. Carpenter stated that his recommendation would be to grant approval of the interim financing so that the process can continue to move forward, and if the Shelby County Assessor’s office does allow a variance, then the Board can continue to hold the PILOT Term Extension consideration and have the developer appear at the Board’s February 7, 2024 Board meeting to provide an update on where things are and by that time, Carpenter’s Firm will have the correct information on whether the Shelby County Assessor's office was able to grant the variance, and the Board will be able to determine next steps at that time.
Howard Eddings asked if this loans discussed are contingent upon the PILOT Term Extension being approved by the Board. Balderston stated that the lender is under the assumption that if the necessary improvements are made and the funds for those repairs are escrowed, as discussed in previous meetings with the Board, that the PILOT would continue. Upton stated that the process would be more complicated if the property is placed back onto the tax rolls during this process and if the Board approves the PILOT Term Extension in 2024, then the property would be placed back into the program, rather than issuing the variance, as the Shelby County Assessor’s office has mentioned. There being no further questions or comments,
Cliff Henderson moved to approve the Bridge Loan for Creekside Meadows (Bent Tree). Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Chairman Reid asked if the deferral of the PILOT Term Extension Application to February 7, 2023 Board meeting would require action today by the Board. Carpenter stated that with the financing and the end of the calendar year, he would recommend a vote by the Board in order to defer the PILOT Term Extension Application for Creekside Meadows (Bent Tree) to the February 7, 2023 Board meeting for record purposes. There being no further questions or comments,
James Jalenak moved to defer the PILOT Term Extension Application for Creekside Meadows (Bent Tree) to the February 7, 2023 Board Meeting. Cliff Henderson seconded, and the motion passed unanimously after proper roll call vote of the Board members.
Balderston stated that apart from the issue with the fence at Mill Creek, which will be fixed immediately, that both Mill Creek and Creekside Meadows (Bent Tree) are in excellent condition and his team is very proud of them, and he looks forward to completing the work at Creekside Meadows (Bent Tree), but also feels that it is a functioning, high quality affordable housing project where it stands today. Chairman Reid thanked Balderston for his work at each property. There were no other questions or comments.
Phil Balderston left the meeting.
PILOT Default Status Updates:
1. Creekside Meadows (Bent Tree)
2. Mill Creek Apartments
An update for Creekside Meadows and Mill Creek Apartments was provided during the Action Items.
3. Grahamwood Place
4. Pinebrook Pointe
Charles Carpenter stated that both Grahamwood Place and Pinebrook Pointe are the same developer and his Firm had sent out Notices of Default based on deficiencies that were listed for these two properties. Carpenter turned the meeting over to representatives in attendance for these two properties for further comment. Tie Lasater introduced himself as CEO with the operator and developer of both properties (KeyCity Capital). Lasater stated that he did have a business partner who was maintaining most of the communications and he has since bought him out and there was a lapse in communication for some time. That said, Lasater stated that he is now aware of issues pertaining to the Board and Grahamwood Place concerning fencing issues, a large pothole that Memphis Light Gas and Water (MLGW), is supposed to be working on, and chain link fencing. Lasater stated that the wood fence on the west side of the property was dealt with this week, and in doing so, two (2) permanent fence posts were broken and will be replaced this week. Lasater stated that his team has made numerous attempts to schedule MLGW to come and repair the pothole in the road and those attempts have been unsuccessful, so he has authorized the purchase of the materials to make those corrections and they will handle any reimbursement from MLGW directly. Lasater stated that the chain link fence on the south side of the property borders an unoccupied green area that has a creek runoff. There was an area of the chain link that has been cut through by homeless people and a couple of areas where debris had piled up and caused that fence to be nonfunctioning. Lasater reported that all debris has been removed and he has a quote from a vendor in hand that is going to come out and perform the chain link repairs. Lasater confirmed the timeline of repairs to the chain link fence with Chelsey Jones. Jones stated that the repairman was due to the property on December 7, 2023 to begin repairs.
Lasater stated that both properties have been cleaned up, and he had brought one of KeyCity Capital’s landscape crews from Texas the week of November 27, 2023, as KeyCity has six (6) properties in Memphis, only two (2) of them in the Board’s PILOT program, and the landscape crew took care of all six (6) properties. Lasater stated that some of these issues stemmed from a decision to go from self-managed to a nationwide property management company that handles subsidy-compliant properties. Lasater stated that though the company has done well for the properties in Texas, other properties in Tennessee and Alabama will return to self-management following these issues. Lasater stated that debris has been cleaned up, and there were thirty-three (33) broken windows at Grahamwood Place that have now been fixed, eleven (11) doors that were not functioning properly, and all but four (4) doors have been repaired and the remaining four (4) doors have been ordered. Lasater stated that occupancy at Grahamwood Place is currently at sixty percent (60%) occupancy. A significant piece of that Lasater stated is due to interior renovations and as units become available, they have been left vacant to do renovations. Lasater reported that Grahamwood Place does have a number of pre-leases on the books and are awaiting renovations to be turned. Lasater stated that in the next sixty (60) days, ownership expects to have fifteen (15) units to be on board and thirty (30) days following that, they expect another ten (10) units to be on board, which will put the property above the current Board occupancy requirement of seventy-five percent (75%). Lasater stated that the increase in occupancy will also help with the lender debt service.
Lasater reported that Pinebrook Pointe has sustained a couple of fires and those units affected have now been cleaned out by a construction company, secured, and ready for renovations. Lasater stated that he does not have a timeline of renovations will start on those units, as ownership is still working with the insurance company regarding the fires. Lasater reported on the open or missing electrical boxes around the exterior of the building, stating those boxes have been replaced and secured, a number of gutters and downspouts that were not functioning and or broken have been fixed and remedied, a couple of broken windows and broken glass have been taken care of, and there was a plastic covering missing from a sliding glass door that has been replaced and the door is now functioning properly. Lasater stated that all items at Pinebrook Pointe have now been remedied, and the only outstanding item at Grahamwood is the large pothole that needs to be dealt with as well as the fencing issues that are currently being dealt with, and he expects to have those done within the next couple of weeks. Carpenter asked what the current occupancy rate is at Pinebrook Pointe, to which Lasater responded that both properties are currently approximately sixty percent (60%) occupied. Lasater stated that ownership is currently doing heavy interior renovations at both properties, but he does anticipate Pinebrook Pointe occupancy to increase a bit slower than Grahamwood Place because of the heavier focus on the interior of the units at Grahamwood. Lasater stated that if he needs to expedite that, he can, and that he has been living in Memphis for the past six (6) weeks and looks to be here for the coming months to ensure that these properties are on point, as he has replaced his partner in dealing with these properties.
Carpenter asked Bryce Miller to provide an update from the Board’s internal monitoring. Miller began with Grahamwood Place, stating that security is the biggest concern there, and referenced a homicide incident reported by the media that took place on the property recently, as well as an area behind a dumpster where he has observed coming and goings at each site inspection. Lasater stated that he is aware of the area Miller is referencing, and the fence has been welded numerous times to correct that ongoing issue, but they will continue to monitor and correct that. Miller stated that there is an accumulation of trash on the bordering fence as well that seems to be from a combination of Grahamwood Place residents as well as outside persons. Miller stated that the pool issues have been remedied and only a few doors remain that need to be fixed, as Lasater stated earlier. Miller asked what ownership’s plan is for security at Grahamwood Place moving forward. Lasater stated that ownership had applied for a SkyCop, but there was not enough crime in the surrounding areas to qualify for that, so the plan moving forward is to install Flock security cameras, as the ingress and egress at the front of the property is the only way in and out, so they believe that will help remedy the situation. Lasater turned the meeting over to Stewart Clark for further comment. Clark introduced himself as the risk manager for KeyCity Capital, with seventeen (17) years of law enforcement experience in the city of Texas and beyond. Clark stated that his team plans to have two (2) Flock security cameras installed at Grahamwood and has a contract ready to go for those and he will be working with Flock to verify elevation at the ingress and egress points at Grahamwood for installation.
Miller provided comments for Pinebrook, stating that his main concern is the time period the burned units have sat with no work being performed on them. Miller stated he understands there may be insurance issues involved, but the time frame still seems prolonged in comparison to other burned units he has observed at other properties around the city. Miller stated that there also seems to be a leak of some sort that is ongoing at Pinebrook. Lasater stated he is aware of the leak location Miller is referring to and ownership has had a plumbing company come out to inspect the leak with cameras and the plumbing company said that the issues is too deep for the equipment they were using to immediately identify the issue, but the plumbing company is continuing to work to identify the issue and remedy that. Miller stated that he has seen work being completed on the electrical boxes, but it seems to be an ongoing issue of the boxes just being opened back up again. Miller asked if locks on the electrical boxes are an option? Lasater stated that Clark has just recently made that same recommendation, and locks are being placed on them now, with keys at the office. Carpenter asked Board staff if all administrative issues have been resolved for both properties. Stephanie Bryant stated that all compliance fees have now been paid and all occupancy reports have now been submitted and the property is in compliance with those items. Carpenter stated that based on this report, things are moving in the right direction. There are still deficiencies remaining and the properties are not ready to come out of the default status but based on the comments by Board staff and compliance monitors, it is Carpenter’s recommendation that the developer return to provide a status update for Grahamwood Place and Pinebrook Pointe at the Board’s February 7, 2024 Board Meeting. Bryant requested that ownership provide a written status update covering changes from today's meeting to January 31, 2024 to distribute that status update to the Board and for Board and staff review in preparation for the February 7, 2024 Board meeting.
5. New Horizon Apartments
Charles Carpenter introduced Mark Jobe with Glankler Brown, PLLC as the representative for this agenda item and turned the meeting over to him for comment. Jobe introduced other representatives in attendance; Aaron Goodfellow , regional manager, and Yitz Horowitz, director of operations for the ownership group, and David Upton, consultant to ownership. Jobe stated that since the last report to the Board at the November 1, 2023 Board meeting, representatives met with Bryce Miller on site and discussed the status of the property construction and the challenges ownership is facing, but overall, it was a productive meeting. Jobe stated that changes in management structure were discussed and are now currently being implemented. Jobe stated that the complex is currently comprised of eight hundred ninety-eight (898) units and was once three separate properties, and the site is able to be separated by similar unit types. The plan of action is that management is going to deploy a management office in each of the three (3) sections versus having one management office, to increase management presence, and these offices will also include leasing for each section.
Jobe stated that renovations continue, albeit not at the same pace as before. Jobe stated that he has reported to the Board the challenges that have been brought about by the failed sale of the property in terms of releasing contractors that had been working with current ownership for quite some time, and getting them reengaged, but work continues on down units. Jobe stated ownership plans to demolish the burned units on site and replace them with tenant amenities such as a playground and dog park. This property, given its size, presents a number of operational challenges, and Jobe stated that the capital expenditures deployed since taking ownership has greatly exceeded the commitment what was presented with ownership’s transfer application in 2020, and this is not a situation where ownership is not putting money into the property. Jobe stated that all units are not rent ready and that is a continuing challenge and concern of the Board. Jobe stated that security checks in each car prior to admission onto the property and it is difficult to get onto the property, which is a good thing, and providing 24/7 security with multiple officers on premises at all times is a very high cost. Jobe reported that without the down units, the property is approximately seventy-two percent (72%) occupied, but that finding qualified tenants is also a challenge. Jobe stated that there have been several ideas discussed to stabilize this property and ownership will continue to work toward that goal, and the PILOT is hugely important in keeping the tenant benefits and particularly the security in place. Jobe stated that the idea of the property becoming project-based housing is an option, but that is not a commitment by ownership at this time. Jobe stated that ownership is doing a lot to make New Horizon a better place to live and a safer place to live, but there remain operational challenges they are trying to overcome. Jobe expressed his appreciation to the Board for working with ownership.
Carpenter asked that with the recent transfer not completed, what is the commitment of ownership moving forward and whether they intend to look for a new purchaser, or if they intend to make the project work through the structural changes with dividing the property into sections. Jobe stated that there is a small chance that the previous purchase agreement could come back, and that would be a desired outcome of current ownership. However, Jobe stated that ownership realizes they are the owner of the property and are obligated to comply with the terms of the PILOT and will continue to improve the property and are committed to that. Jobe turned the meeting over to Yitz Horowitz for further comment.
Horowitz stated that when the sale fell through, ownership reevaluated the business plan and determined that separating the property into three (3) different properties operationally and from a lease up perspective would be more attractive. Horowitz stated that this plan will be implemented over the next ninety (90) days, and then plan to have all down units leased and be fully leased in the next twelve to eighteen (12-18) months. Horowitz stated that project based would be a way to go, but that is not a commitment or a guarantee, and that the necessary work is not contingent on any one thing, and it is now back to business as usual. Horowitz stated that leasing continues to be the biggest challenge and his team is always looking for different ways to accomplish that. Horowitz reported that his team is considering a Rhino program, which tenants pay into monthly, and in doing so, guarantees ownership the rent on the tenant's behalf, even if a tenant were to skip a payment, and it also provides security deposit in the tenant’s behalf. Horowitz stated that ownership is always looking for creative ways to bring people onto the property, and once they do, tenants are usually happy with their housing. Horowitz stated that New Horizon has a great maintenance department, and they do a lot of things in-house, there is 24/7 security on site, and that is what tenants are looking for.
David Upton reviewed his history with New Horizon and stated that he plans to meet with ownership and produce a plan and review some potential opportunities that will help ownership. Upton stated that there are some capital improvements needed to get occupancy levels up to the Board’s requirements and he and ownership will be working on a strategy to do that, as he has done with his other clients.
Aaron Goodfellow stated that he moved to Memphis from New York and is the regional manager for ownership. Goodfellow stated that prior to the potential sale of New Horizon, the property was on track and doing very well, occupancy was up, and the property was looking phenomenal. Once the property was under contract, Goodfellow stated that contractors were released and began work on other jobs, and now ownership is looking for new contractors to work with their budget and his team is very driven in dividing the property into three (3) sections and getting a leasing team for each and being successful.
Carpenter stated that the Board wants to understand if there is long term commitment or just a commitment to get to the next potential purchaser. Carpenter asked Bryce Miller to provide any comments he may have from internal monitoring inspections of the property. Miller stated that he agrees with Goodfellow that ownership is on the right track and moving in a great direction. Miller stated that there was a point earlier in the year when he reported to the Board that the property has taken a turn for the better, and since that time, there have been several fires on the property, coupled with the potential sale of the property falling through seems to have derailed the positive movement that was there. Miller stated that during recent inspections, representatives from the ownership group have been on-site, work has started back, and he believes the property is moving toward continuing the momentum they had earlier in the year.
Howard Eddings stated that the mission of the Board is to maintain housing that is affordable for low-income families through the PILOT and with ownership demolishing the burned buildings and reducing the number of units by twenty (20) units, Eddings asked what the thought process is behind that? Eddings also asked, assuming the property already has one playground, how ownership plans to implement another playground from a security perspective? Horowitz responded that with the different social services that New Horizon has at the property, they provide volunteers aside from the security that volunteer their time to engage with the children on the property and help to control different activities going on at the property. Horowitz stated that the property also has a basketball court on-site and the property has not experienced issues with that or playgrounds as they are open during the day and closed at night.
Eddings asked with the reduction in the number of units from eight hundred ninety-eight (898) reduced to eight hundred seventy-eight (878) units, does that impact the PILOT? Upton stated that based on the PILOT Term extension that was approved based on the number of units to be delivered at that time, but ownership feels that rebuilding those burned units would be too expensive. Upton stated that he believes it would be up to the Board to agree to any change in the number of units. Corbin Carpenter stated that it would not affect the terms on the PILOT, but the Board would require that any change in the number of units be reported to the Board for the purposes of the annual audit of the Board. Upton stated that ownership does not believe there will be a problem in monitoring additional common areas with new activities. Goodfellow stated that in addition to Red Door, which provides endless services to tenants including counseling, food packages for children and families, and other things, there is another non-profit, HEAL901, which is very active on the property and usually comes when people get out of school or work, and they drive gold carts around the property and interact with tenants to make sure that everyone is being safe and providing additional supervision of the property, which is very helpful to management and ownership. Eddings asked for clarification that units will not be rebuilt due to cost, to which Horowtiz confirmed that it would be const prohibitive to rebuild them. Horowitz stated that once the property accomplishes full occupancy, there will always be the option to rebuild those units at that time, should the demand for additional units be there.
Upton reviewed the history of ongoing social services and security on the property and stated that he believes the issue is to ensure there is a plan to recapitalize down units and vacant units and provide a timetable in which that can be accomplished. Upton stated he will be putting together a menu of options for ownership to review to get those things accomplished and help ownership answer what the plan is for the long term.
Henderson stated that there needs to be a plan presented to the Board, and he understands ownership is trying to figure out what direction to go and how to salvage this and move forward, but he would like representatives to appear before the Board with a plan to give the Board some assurances that once committed to it, there is something in place to move forward to ensure that this does not slip further than where it is. Upton asked Horowitz how many units ownership currently operates, to which Horowitz responded over twelve thousand (12,000) units nationwide. Upton stated that ownership has a lot of properties with resources and expertise, and he believes they can harness that. Horowitz stated that New Horizon has always been one of his top priorities, as it is one of ownership’s largest properties and his is a very hands-on operation and tenants and his staff know him and that is how things are run. Horowitz stated that his team is taking this time to regroup, change the business plan, and start with a new energy and a different mindset and he will meet with Upton and ownership to produce a plan that is achievable. Henderson proposed that a status update be provided to the Board in January 2024, and that representatives appear before the Board at the February 7, 2024 Board meeting with a well thought out plan to report to the Board.
Carpenter asked Miller if he had any further comments. Miller stated that he agrees with Henderson and ownership had taken a pretty big hit, and he would like to see them have an opportunity to get back on track. Carpenter confirmed that a written update should be provided to the Board in January 2024, and then representatives would appear before the Board at the February 7, 2024 Board meeting. Carpenter stated that the Board understands the reality that this is a challenging project as it is much larger than the average size multifamily housing in the Boards PILOT program and ownership has done a good job and now it is a matter of rebuilding that momentum. Chairman Reid thanked the representatives.
6. Sunrise Villas
Charles Carpenter introduced Frank Stockdale Carney as the representative for this agenda item and turned the meeting over to Carney for an update on where things are now. Carney stated that there were a few buildings that had wooden siding that were to be completed and as of yesterday, there is only one building remaining that workers were working to complete in order to have the same siding across all buildings. Miller stated that he was at the property on December 5, 2023, and he observed workers on site that appeared to be finishing up the work on the final building. Miller stated that this was the only outstanding item he has been monitoring for Sunrise Villas and all other items appeared to be in compliance. Carpenter asked for confirmation that all other outstanding compliance issues have been resolved. Carney stated that grass cutting was an issue at the time the property was places under default and those issues have been taken care of and maintained. Carney stated this his understanding from the Board’s prior meetings was the only outstanding item was to get the siding on the property uniform and that work was being completed on December 5, 2023. Carpenter asked Stephanie Bryant is Sunrise Villas is up to date with submission of occupancy reports and compliance fees, to which Bryant responded the property is in compliance from the administrative standpoint. Carpenter asked for an update to drainage issues the property had previously suffered form. Miller stated that from his observations, the drainage issues would be ongoing and would require maintaining the area where the drainage is an issue, which management and ownership is aware of and it has greatly improved. Carpenter asked the Board’s internal monitors if they see any reason this property should continue on the Board’s default status update list. Miller stated that they do not. Carpenter stated that with the report and comments heard by the Board, it would be a Board determination to release the property. There being no further questions or comments,
Cliff Henderson moved to release Sunrise Villas from the Board’s PILOT Default Status Update list. Katie Shotts seconded, and the motion passed unanimously after proper roll call vote of the Board members.
New Business
There was no new business.
Chairman Reid stated that the next meeting of the Board is scheduled for Wednesday, January 10, 2024 @ Noon. There being no further business, the meeting was adjourned by the Chairman at 02:42 p.m.