NRHA Project Financing

The Norfolk Redevelopment and Housing Authority (NRHA) seeks a qualified financing entity to provide up to $11 million in construction and permanent financing to support the construction of a new headquarters facility at 910 Ballentine Boulevard, Norfolk, Virginia. It is anticipated that NRHA would make draws on a monthly basis totaling approximately $11 million to pay for the design and construction costs (and other related expenses). The debt will be serviced through occupancy costs reimbursed by Federal and local government programs administered by NRHA. It is anticipated that construction will commence on or about October of 2010.
The NRHA offices have been located in the Royster Building at 201 Granby Street, Norfolk, Virginia since 1978 and the Authority has occupied an operations center at 910 Ballentine Boulevard since 1975. The current cost of occupancy for both locations is approximately $1.6M annually. By constructing a new office building and consolidating to the Ballentine location, the Authority expects to reduce its cost of occupancy by several hundred thousand dollars per year.
NRHA also expects to place the currently headquartered Royster Building back on the tax roles as a large residential project. The initial financing will include the entire project cost. It is expected that the Royster Building net sale proceeds will be used to reduce the debt within the first two years of the debt term.
NRHA requests financing terms that will allow for approximately equal, monthly draws during the construction phase, based on written draw requests submitted to the successful offeror 20 calendar days prior to the cash needed. The draws will be documented by payment requests by the general contractor and certified by the architect. Desired features of the financing being sought include the following:
1. A 1:1 ratio of loan to cost.
2. An amortization and term of 20 years with monthly payments.
3. A no-penalty clause for the debt reduction as funds become available.
4. A construction loan that converts to permanent financing to include construction period interest.
5. Collateral limited to the 910 Ballentine property /facility.
6. Bank qualified tax-exempt obligation.
To aid in your determination of interest, the project description is hereby attached for your review and consideration. If interested in supporting NRHA with the loan, please submit a letter of interest no later than 12 May 2010 to:
Lynn Y. Moon, CPCM
Contracting Officer
Norfolk Redevelopment and Housing Authority
PO Box 968
Norfolk, VA 23501-0968
For more information or clarification please do not hesitate to contact me.

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