Washburn University Institutional Repository

Cover sheet for same box/folder pp. 592-625

Patterson, Frederick D.

Robert R. Moton Memorial Foundation

H.E.A.T. Program

Page 1of9 
Subj: First Draft "Developer/Construction Manager/Mortgagor Financing Agreement 
Date: 117/2003 2:58:41 AM Eastern Standard Time 
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File: CMECDCPACRJMCITYWESTFINANCEAGREEMENT.doc (59904 bytes} DL Time (45333 bps}: < 
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Developer/Construction Manager/Mortgagor Financing 
Agreement 
Created and Adopted from: 
.S. HUD-Form umber 92441 (11 /00) 
G.EQillT .ACTIO .TEAM. HOUS 
(H.E.A.T.) ANCING AGREEMENT 
CME DC/P CIFIC RIM GROUP/CITY WE T MORTGAGE 
This Developer/Con truction Manager/Mortgagor Financing Agreement, made the __ 
day of January 2003 , by and between the Cbri tiao Methodist Episcopal Community Development 
Corporation (CMECD ) as on-Profit Developer, a non-profit corporation organized and existing 
under the laws of the tate of Tennessee, located at 4460 Elvis Presley Blvd., uite 201 , Memphis, 
Tennessee 38116, (hereinafter called the "Borrower'); Pacific Rim Development Group L.L.C. 
(Pacific Rim Group), as ' Turn-Key Construction Manager", a Washington tate profit 
corporation, located at 4301 South Pine treet, Tacoma Mall Office Building, Suite 401 , Tacoma, 
Washington 98409, (hereinafter called the "Construction Manager"); and City West Mortgage, Inc. 
as "Mortgagor Investor Group " a California tate profit corporation, located at 410 West Olive 
Avenue, Suite 102, Fresno, California 93728, (hereinafter called the "Lender/Guarantor"). 
Whereas, the Borrower Christian Methodist Episcopal Community Development Corporation 
(CMECDC), as the owner in fee simple of, or the owner of the leasehold estate in, the property 
described in Exhibit "A", as it may be amended, attached hereto and made a part hereof, has applied to 
the Lender/Guarantor City West Mortgage, Inc. as "Mortgagor Investor Group," for Construction 
Management loans and upon the issuance of a otice Of Completion a Convertible Mortgage loans of 
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an initial amount of Dollars ($ ) to aid the Borrower' s 
"Turn-Key Construction Manager" in the construction on said property of a project (identified as 
HE.A. T. Project Number ) in accordance with to be Agreed Upon Drawings and 
pecifications hereinafter referred to; and 
Whereas, the Borrower understands that the Lender/Guarantor will apply to receive a 
commitment from the Federal Housing Commissioner (hereinafter called the "Commissioner") for 
insurance on individual mortgage loans under the provisions of the National Housing Act and/or the 
Lender/Guarantor will apply to sell said individual mortgage loans in the secondary mortgage market 
to either the Federal National Mortgage Association (Fannie Mae) and/or the Federal Home Loan 
Mortgage Corporation (Freddie Mac), and intends upon execution of the hereinafter-mentioned 
individual mortgage loans Note and Mortgage to have said Note endorsed for insurance by the 
Commissioner or for purchase by Fannie Mae or Freddie Mac. 
Now, Therefore, in consideration of the mutual promises hereinafter set out and of other 
valuable considerations, the undersigned agree as follows : 
(1) The Lender/Guarantor shall underwrite, arrange and guarantee and the Borrower shall take 
a Construction Management loan and upon the issuance of a Notice Of Completion a 
Convertible Mortgage loan of Dollars($ ), to be 
advanced as hereinafter provided by a Lender of Record, and to bear interest from the date of 
each advance at an interest rate to be determined by said Lender of Record per annum. Said 
loans from the Lender of Record shall be evidenced by a Standby Letter of Credit (SLOC) 
credit instrument (hereinafter called the 'SLOC") dated (mm/dd/yyyy) . Said 
loans shall be payable in monthly installments as the Lender of Record may determine, and 
shall have a maturity date of (Mm/dd/yyyy) . Said SLOC shall be 
executed on behalf of the Lender/Guarantor and payable to the Lender of Record and said loan 
shall be executed by the Borrower and payable to the Lender of Record, of even date, on the 
property described in Exhibit "A". The Lender/Guarantor shall constitute a valid first lien on 
said property and then constitute a valid first lien on said property and the improvements to be 
erected thereon, and the only lien thereon except for liens for taxes and assessments not yet 
payable and other liens acceptable to the Lender/Guarantor and the Commissioner and/or 
Fannie Mae or Freddie Mac. 
(2) The Borrower's "Turn-Key Construction Manager" shall cause to be completed on the 
aforesaid property, by 200_, a project in accordance with Drawings and 
Specifications to be filed with the Commis ioner and designated HE.AT. Project Number 
----~ dated (mm/dd/yyyy) . The "Turn-Key Construction 
Manager" shall cause such Drawings and Specifications, which shall include "General 
Conditions of the Contract for Construction" (AIA Document A201) and "Supplementary 
Conditions of the Contract for Construction" (form HUD-2554), to be developed, to be 
submitted to and to be identified by the Borrower, the H.E.AT. Design Architect, which shall 
be the Architect administering the Construction Contract (hereinafter called the "Architect"), 
and the selected HE.A.T. General Contractor of Record and the HE.AT. General Contractor 
ofRecord's Surety. 
(3) Changes in the Drawings and Specifications, or changes by altering or adding to the work 
contemplated, or orders for extra work, or which change the design concept, may be effected 
only with the prior written approval of the Borrower and the Lender/Guarantor or 
Commissioner and under such conditions as either the Borrower and the Lender/Guarantor or 
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the Commissioner may establish. 
(4) (a) The Borrower shall make a total project application on fonn HUD-92403 or equivalent 
to Lender/Guarantor for advances ofloan proceeds from the Lender of Record. Applications 
for loan proceeds with respect to construction items shall be for amounts equal to (i) the total 
value of classes of the work acceptably completed, including property acquisition and land 
costs and the pre-development costs of consulting, architecture and engineering, environmental 
charges, fees and pennits; plus (ii) the value of materials and equipment not incorporated in the 
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English

Agreement

Explains the history of the Seattle situation and discusses the advantages and disadvantages of potential solutions going forward

Seattle Building & Construction Trades Council

·. 
History 
Options Paper 
Seattle Project 
F bru ry , 1971 
In August 1969, t e Central Contractors ssociation (CCA} --composed 
of minority contractors--de anded increased minority participation 
in construction . Demo strations and cessation of work at several 
public sites followed . T e City, co nty, AGC , and CCA reached an 
agreement for minority employment i September 1969, b t upon con-
tractor compliance , union tradesmen walke off the sites . T e CC 
filed charges; the Federal District Court ordered the unions to con-
tinue efforts to develop an Outreach Program to qualify minorities 
for apprenticeship . 
CCA made demands and began demonstrations t other public con truction 
sites in late September 1969 . Contr ctors agreed to place 50 trainees 
on jobs ; certain union members wa ·ed. off the sites , owever, w en con-
tractors complied . T e Port of Seattle, University of Was ingto , and 
others instituted court action to obtain relief . T e Fe eral District 
Court enjoined demonstrations, require workers to remain o the job, 
and limited the number of minority workers to 50 pe ing final r solu-
tion of the atter . 
The Department of Labor, responding to the request of the State of 
Washington, investigated the situation in October 1969. The Department 
concluded that a voluntary agreement was unlikely to be obtained, and 
referred the matter to the Department of Justice . Justice--w o ad 
investigated the situation--filed Title VII suits against five unions 
(Electricians , Sheet Metal Workers , Iron Workers , Plumbers, and Operating 
Engineers) and three JAC ' s (Iron Workers, Sheet Metal Workers, and 
Pl umbers) • The suit against the Operating Engineers was set le with 
a consent decree shortly thereafter . 
While Justice ' s suits were in progress, AGC and CCA developed plan 
for minority involvement in construction . The plan was judged defective 
by Labor in December 1969, primarily oecause of no meaningful "Journey-
man Training" component (training activity outside normal apprenticeship 
program) . AGC and cc resisted because they felt there was no hope of 
union approval of a plan with such a component . 
Concurrent with the AGC- CCA initiatives, Labor and the Seattle unions 
negotiated t o develop an "outreach Program" as directed by the Court . 
The unions 1 presented a program to Manpower in January 1970 with an 
"outreac " c omponent , and a r ole for minority and contractor represe -
tation . The unions requested that Labor fund the plan , a d agree t at 
it met OFCC' s a11d 
repeate ly attem-
AGC-CCA plan . 
Judgments against 
1970 . The Court ii 
of three minority, 
.government 1 repr~ _ 
establishe train ' 
involved . 
- 2 -
ice's requirement for equal employment. Labor 
~s ccessfu 1 to negoti te a .erg~ u ion an 
four unio. s and thre J C's were awarded in June 
judgment establis' ed a "Advisory Cornmittet!" 
~ nageme t, a. two labor embers, and two State 
atives to ad.Llinister the Court ordered p a which 
.~ a~ployme ;t r quir ents for each of t e arties 
Demonstrations eru:_::: t ugain i.1 t; e su: er of 1970 le by t' .e newly 
formed United Con~ :~ u ~o. Workers ssoc· tic (UCWA) . Minorities 
claimed noncomplia .c the contractors who had previously bee ordered 
to hire 90 minority · rs by the Court . The Court , showing irritation, 
ordered immediate hl ~ o 90 in September 1970, in accordance wit. its 
previous order; the c ~ractors complie . In "'ovember 1970, t e DOL 
funded a $110 , 000 co t wit. the Co-.1rt Committee which provide sup-
portive services (c _: ing, troubl s'ootir.g, follow - up activities, 
but not tr "ning o~ ruiw1.e.t) for the 90 minority workers. A simi-
lar program was fun w~i:.h t.e Operating E gineers for $32,000 for 70 
minority members. ~o. -~£rently, the Seattle Building Trades Council 
devel oped their ow o ..:r ... .... c program w ic was limited to recruitment of 
minorities for apprer.t~ce~. ip . 
Demonst ratio n e rupted in December 1970 because of the lack of minority 
p a rtic i pat i on in t e unio s not covered by the court decree . These 
craf ts const i t ute about one- alf of the membership of the Building Trades 
Council (BTC) , and two- thirds of the construction union workforce in 
t he Seattle a rea because Carpenters are not members of the BTC . The AGC 
and UCWA requested Labor funding o f a unilateral plan in January 1971 . 
T e Wash i ngton State FEP group is currently investigating discrimination 
in the building trades unions not previously sued by the Justice Deparcment . 
- 3 -
Options 
There are five basic options (one of whic is composed of two sub-
options) available to the Dep rtment of Labor which woul meet OFCC 
co pliance require ents . 
I Impose a Federal plan for the 14 tra es not under court 
or er . 
a . a new " P iladelphia Plan . " 
b . a revised contractor-minority agreed-upon plan . 
II Refer the matter to the Justice Department for litigation 
against the 4 trades not unaer court order . 
III Revise the contr ctor-minority (UCWA- AGC) agreed-upo plan 
and accept it . 
IV Attempt again a tripartite, "home town" solution, by requesting 
t e Court established Advisory Co:nmittee to voluntarily negoti-
ate an agreeme t for the trades outside the Court order. 
V egotiate revised plan with the Seattle Building Trades Co ncil . 
0 
..,., •.. 
l J. IMPOSE A THE T~ES i:OT UdDE COU T ORDER--
A NEW II PI -
Advantages 
1 . Does not asso.~ ~ ~overnme t wi~: either p rty, ,anagement 
or labor . 
2 . Minimizes r SA 
one group . 
Disadvantages 
1. It would take 
because a hear 
lo:-.g 
.. 
voke furt er c· 
involved l. 
.., _ng criticize for being "too fair" to 
~o :i.mple...-ne t tha some other measures 
.:> :n.::cessary . A public earing may pro-
.. ..::.,. . T e Federal Government has been 
ne 969 . 
2 . Minorities wou:~ gai. employme t o certain projects , but 
cooperation b c.:·.e u::-.io acceptance into it is not 
assure 
3 . Discor may contin e as inorit·es eek employment on non-
goverrunen~al pro jects . 
4 . Funding without union approval may be necessary . 
- 5 -
OPTIO Ib : IMPOSE A FEDERAL P::..A!" FOR '.4'EE TRADE S ~rar lTh"'DEP COu RT ORDER--
A REVISED CO. TRAC""O -. INO r:i'Y GREED-UFO. PLM' . 
Advantages 
Possibly avoid a pub ic earing . 
2 . Assure cooperatio of co tr ctors and inority comm ity . 
3 . Qllicker imp eme tat'on ta t e an requiri g he rings . 
Agreement to irnme iately hire sp cific members in specific 
trades . 
Disadvantages 
1 . Associates government with inority community an co tractor , 
against unio s . 
2 . Minorities wo 1 be 
assured . 
ployed b t acceptance i to u ion not 
3 . Fun ing witho t union ap roval may be necessary . 
- 6 -
OPI'ION II : REFER THE MA':TER '.:'O THE JUSTIC2 DEPAR7I>JE,;;T FO LITIGATIO. ' 
AGAINST THE TRADES JQT ill'IDE COURT ORDER. 
Advantages 
1 . Uniform sol tion for all tr es . 
2 . Court orders are most specific a easi y enforceci . 
Disadvantages 
1 . Minimum of 1 to 2 years required . Minority community may not 
be wil ing to wait . 
2 . Resources of Justice De rtment may be better used elsew' re 
by DOL . 
3 . Treats labor as culprit . 
- 7 -
OPTIO III : REVISE THE co· CTOR- I 'ORITY (UCWA- AGC) AGREED - UPO.· PLA' 
CCE IT . 
Advantages 
1 . Acceptible t o mi ority co crt1 "ty and contractors. 
2 . The quickest so tion . 
3 . Agreement to imme iate y hire specific numbers in specific 
trades . 
Disadvantages 
1 . Associates gover e t with two p rties against labor . 
2 . Union members ip un i ely . 
3 . Fun ing withe t union approval ay be necessary . 
OPrION DI: TAG, r.- A '.:'RIP TITE, "HO!-:E TC -n SOL\J:'IO •. , :S' 
Advantages 
.tU:~ES7T.-G TiiE COuKT EST L.::SHZD i'.WV:i:SORY co,, ..... ;I':' .Li.:. TO 
VO.u•.. h ILY l ~Go':':.C.TE ru: AGREENE -T FOR THE Ti'\ADES OuT-
SIDE THE COURT ORDE R. 
1 . A tripartite sol t·on . 
2 . As sures i ority cceptanc i to u ions . 
3 . Provides f or specific umber of minorities in specific 
t rades . 
Ma npower fu di g assured . 
Disadvantages 
1 . No ass ranee that agreement is po ible . 
2 . Uncertain as to how muc time it woul take to determine 
whether t is approac· is f a ·ible . 
3 . Co rt may believe it inappropriate, given the current i te a 
prob ems in the Adv·sory Co ittee . 
- 9 -
OPTIOi V : NEGOTI TE REVISED PLlff ITH 7HE SE TI'LE BUILDING TRADES 
COU 'CIL . 
Advantages 
1 . Assures un on members ip to inor·ty workers who co plete t e 
program. 
2 . Achieves a commitment to coo er te fro unions . 
Disadvantages 
1 . o commitment from contractor for e ployment . 
2 . Manpower fu ding questionablG . 
3 . Aligns government with io 
Possible lac of co.tractor .inority community cooperation . 
5 . o complia ce capability . 
6 . o ass ranee th t agree e t i ssible . 


Options Paper

Illegible

Correspondence

Mrs. John Jones will host AF for coffee in her Moses Lake home this evening, open to all who want to meet him

Pasco Columbia Basin News

Art Fletcher Here Tonight

Solicitation of support for proposed ferry bonds by the Inlandboatmen's Union of the Pacific

Adlum, Merle D.

Inlandboatmen's Union of the Pacific

Washington State Office of Equal Opportunity Board

Letter

AF travel itinerary for 11/21-22/70 includes a trip to Miami to address the UL dinner

Not a member yet

Table of Contents

Agreement

Options Paper

Correspondence

Art Fletcher Here Tonight

Letter

Itinerary

Government Puts Pressure on For Negro Workers

Clip and Mail: Letter to Our Servicemen

Correspondence

576

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