HomeMy WebLinkAboutPresentation (1) Stonegate Manor City Council Of Port Arthur_08.27
1
2
Summary The ITEX Group (ITEX) is a vertically integrated real estate development company offering a highly experienced
team that encompasses strategic planning, development, and financing of public housing, workforce, affordable, and
market rate. In addition to development, ITEX also provides general contractor services, compliance, and property
management.
ITEX acquired Stonegate Manor (the “Development”) in December 2020, an existing 240 unit complex located in
Port Arthur, Texas, built-in 1983; Shortly after the acquisition, ITEX made repairs related to health and safety and
damage caused by Hurricane Laura. the development is currently being submitted to the Texas Department of Housing
and Community Affairs (“TDHCA”) for Low Income Housing Tax Credits (“LIHTC”) to assist in financing the
complete rehabilitation of the property. The overall rehabilitation cost is approximately $47 million. The remaining
financing will come from Tax-exempt bonds issued by Public Activity Bonds, Community Development Block Grant
(“CDBG”) funds allocated by the General Land Office (“GLO”), and deferred developer fees.
As part of the submission to TDHCA, resolutions are needed from the City Council of Port Arthur related to the
development and the census tract in which the development is located.
The full scope of the rehabilitation contemplates the following upgrades to Stonegate
• New Plumbing fixtures throughout the property
• New HVAC systems
• New Electrical System
• New Granite Countertops with new cabinets
• New playgrounds
• Complete repainting of the interior and exterior of the complex
ITEX is not just focused on elevating the property but also boosting the standard of living of those who call Stonegate
their home.ITEX strives to offer superior Supportive Services to the residents who reside on all ITEX properties.
Once residents’ needs are identified, the Supportive Services Department creates programs by searching local, state,
and federal resources to meet those needs. Supportive Services focuses on the following areas: Nutrition Health,
Employment Resources, Education/GED Program, After School Programs, Teen Mentoring, Safety, Financial
Planning.
3
As indicated above, TDHCA requires resolutions indicated below and attached to consider the Application.
1) The City Council of the City of Port Arthur and as provided for in 10 TAC §11.101(a)(3) of the Qualified
Allocation Plan, it is hereby acknowledged that the multi-family housing project commonly known as
Stonegate Manor, located at 4121 Turtle Creek, Port Arthur, Texas, 77642 is in a census tract that has a
poverty rate above 40% for individuals.
2) The City Council of the City of Port Arthur and as provided for in 10 TAC §11.3(c) of the Qualified
Allocation Plan, it is hereby acknowledged that the multi-family housing project commonly known as
Stonegate Manor, located at 4121 Turtle Creek, Port Arthur, Texas, 77642 is within the City of Port Arthur
which has more than twice the state average of units per capita supported by Housing Tax Credits or Private
Activity Bonds.
3) The City Council of the City of Port Arthur, in accordance with the requirements of Tex. Gov’t Code
§2306.67071 and §11.204(4) of the Qualified Allocation Plan, it is hereby found that: Notice has been
provided to the City Council as the Governing Body in accordance with Tex. Gov’t Code, §2306.67071(a);
and The Governing Body has had sufficient opportunity to obtain a response from Port Arthur Stonegate
Manor, LP regarding any questions or concerns about the proposed development; and the Governing Body
has held a hearing at which public comment may be made on the proposed Development accordance with
Tex. Gov’t Code, §2306.67071(b); and after due consideration of the information provided by the Applicant
and public comment, the Governing Body does not object to the proposed Application.
We hope the City Council of Port Arthur will support the rehabilitation of Stonegate Manor to ensure that the residents
of Port Arthur can have quality housing.
Sincerely,
Bobken Simonians,
Chief Operating Officer
ITEX Development apps@itexgrp.com
(213) 255-9220
4
EXHIBIT A
Project: Stonegate Apartments
Sources & Uses
USES
Construction Permanent
Site Acquisition Costs $20,726,008
Direct Hard Costs $14,342,627
Indirect Construction Costs $1,962,102
Developer Fees $5,673,898
Financing Fees $3,501,805
Reserves $1,300,000
Total Development Cost $47,506,440 $47,506,440
1st Lien Mortgage $33,000,000 $20,517,369
CDBG $5,000,000 $5,000,000Equity-LIHTC 20.00%$3,590,676 $17,953,378
Deferred Fees/Reserves $5,081,076 $3,201,004
Cash Flow during Construction $834,688 $834,688
Total Sources $47,506,440 $47,506,440
Surplus/Shortfall - -
SOURCES
5
EXHIBIT B
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS EXPRESSING ITS SUPPORT FOR THE APPLICATION BY PORT ARTHUR STONEGATE
MANOR, LP FOR PRIVATE ACTIVITY BONDS FOR LOW-INCOME HOUSING TAX
CREDITS AT 4121 TURTLE CREEK DR, PORT ARTHUR, TEXAS 77642 AUTHORIZING AN ALLOCATION OF HOUSING TAX CREDITS FOR THE APPROVAL OF THE REHABILITATION OF THE DEVELOPMENT; DIRECTING THE CITY SECRETARY TO SEND A CERTIFIED AND TRUE COPY OF THIS RESOLUTION TO REPRESENTATIVES
OF PORT ARTHUR STONEGATE MANOR, LP, FOR INCLUSION IN ITS APPLICATION TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR PRIVATE ACTIVITY BONDS FOR LOW-INCOME HOUSING TAX CREDITS AT 4121 TURTLE CREEK DR, PORT ARTHUR, TEXAS 77642; MAKING VARIOUS FINDINGS
AND PROVISIONS RELATED TO THE SUBJECT, AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, Port Arthur Stonegate Manor, LP has proposed a rehabilitation development for
affordable rental housing of 240 units that will be located at 4121 Turtle Creek Drive, in the City of Port
Arthur, County of Jefferson, Texas 77642 (the “Development”); and
WHEREAS, Port Arthur Stonegate Manor, LP has advised the City that it intends to submit an
Application to the Texas Department of Housing and Community Affairs (TDHCA) for 2021
Housing Tax Credits for Rehabilitation of Stonegate Manor; and WHEREAS, Port Arthur Stonegate Manor, LP has requested a Resolution of support from the
City Council expressing its support for such Application to the TDHCA; and
WHEREAS, the City Council of the City of Port Arthur wishes to express its support for the Application of Port Arthur Stonegate Manor, LP, to the TDHCA as further detailed below.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS:
RESOLVED, the findings and recitations set out in the preamble to this Resolution are found to be true and correct and are hereby adopted by the City Council of the City of Port Arthur and made a part hereof for all purposes.
FURTHER RESOLVED, the City Council of the City of Port Arthur and as provided for in 10 TAC §11.101(a)(3) of the Qualified Allocation Plan, it is hereby acknowledged that the multi-family housing project commonly known as Stonegate Manor, located at 4121 Turtle Creek, Port Arthur, Texas, 77642 is in a census tract that has a poverty rate above 40% for individuals.
FURTHER RESOLVED, the City Council of the City of Port Arthur and as provided for in 10 TAC §11.3(c) of the Qualified Allocation Plan, it is hereby acknowledged that the multi-family housing project commonly known as Stonegate Manor, located at 4121 Turtle Creek, Port Arthur,
Texas, 77642 is within the City of Port Arthur which has more than twice the state average of units per capita supported by Housing Tax Credits or Private Activity Bonds.
FURTHER RESOLVED, the City Council of the City of Port Arthur, in accordance with the requirements of Tex. Gov’t Code §2306.67071 and §11.204(4) of the Qualified Allocation Plan, it is hereby found that: 1. Notice has been provided to the City Council as the Governing Body in accordance
with Tex. Gov’t Code, §2306.67071(a); and
2. The Governing Body has had sufficient opportunity to obtain a response from Port Arthur Stonegate Manor, LP regarding any questions or concerns about the proposed Development; and
3. The Governing Body has held a hearing at which public comment may be made on the proposed Development in accordance with Tex. Gov’t Code, §2306.67071(b); and 4. After due consideration of the information provided by the Applicant and public
comment, the Governing Body does not object to the proposed Application.
FURTHER RESOLVED, that the City of Port Arthur hereby confirms that its Governing Body has voted specifically to authorize the Development to move forward .
FURTHER RESOLVED, the City Council of the City of Port Arthur hereby expresses its support of the proposed Application of Port Arthur Stonegate Manor, LP, to the Texas Department of Housing and Community Affairs for 2021 Housing Tax Credits, and confirms that its governing body has voted specifically to approve the construction or rehabilitation of the Development and
to authorize an allocation of Housing Tax Credits for the Development pursuant to Tex. Gov’t
Code §2306.6703(a)(4). FURTHER RESOLVED, the City Council further directs the City Secretary to send a certified and true copy of this Resolution to representatives of Port Arthur Stonegate Manor, LP, for
inclusion in its Application to the Texas Department of Housing and Community Affairs.
Resolved this _____ day of ____________, 2021.
APPROVED AS TO FORM:
________________________
Valecia R. Tizeno CITY ATTORNEY
I, Sherri Bellard, Secretary of the City of Port Arthur, do hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Port Arthur as its
Regular Meeting held on the_____________________________, as the same appears in records
of this office.
IN TESTIMONY WHEREOF, I subscribe my name hereto officially under the corporate seal of the City of Port Arthur this ________ day of __________, 2021.
____________________________________ Secretary of the City of Port Arthur