AGENDA MEMORANDUM

Meeting Date:           December 20, 2010

From:                          Ken Thomas, Director of Economic Development & Housing                                 

Subject:                      Resolution authorizing  Termination of a Memorandum of Understanding between the City of Leesburg and Lake County Government for funding of the Magnolia Townhomes Project  formerly Kristen Court Project

Staff Recommendation:

Staff recommends approval of the termination of the Memorandum of Understanding between Lake County Government and Leesburg for funding of the Magnolia Townhomes Project (aka Kristen Court).

Analysis:

The City of Leesburg and Lake County entered into a Memorandum of Understanding  October 7, 2008 to allow the use of Lake County SHIP funds to renovate the Kristen Court Apartment Complex.  However, on November 21, 2010 the Leesburg City Commission decided to put the project on hold and return the SHIP funds.  In addition, the other grant funds were also returned to their various entities. 

Therefore, the existing termination agreement is intended to provide both parties the legal authority to terminate the MOU and return all SHIP funds to Lake County Government.  City Staff, at a later date, will identify other projects within our jurisdiction that could qualify for the use of SHIP funds.  

Options:

1.  Approve the termination of the MOU between Lake County and Leesburg; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The $429,000 will be returned from the Housing Department budget (aka Kristen Court).  There will be no fiscal impact to the Magnolia Townhomes fund, or City, as a result of this transaction.  SHIP Funds, which are currently held in a restricted account, will be refunded to the appropriate Lake County Government business unit upon Commission approval. 

Submission Date and Time:    12/17/2010 4:41 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. _____JB___________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. __554-0000-337-5410__ Project No. ____MTSHIP________ WF No. ______________________ Budget  ______________________ Available ____ $429,000__________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A TERMINATION OF A MEMORANDUM OF UNDERSTANDING BETWEEN LAKE COUNTY GOVERNMENT AND THE CITY OF LEESBURG FOR FUNDING OF THE MAGNOLIA TOWNHOME PROJECT FORMERLY THE KRISTEN COURT PROJECT: AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the Mayor and City Clerk are hereby authorized to execute the termination of the Memorandum of Understanding between Lake County Government, whose address is 1300 S. Duncan Drive, Tavares, Florida 32778  and the City of Leesburg regarding funding for the Kristen Court project. 

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __20^th  day of _December________ 2010

                                                                            __________________________

                                                                             Mayor

ATTEST:

_____________________________________

City Clerk