15.B.
City Council Meeting - FINAL
- Meeting Date:
- 11/19/2013
- Co-Submitter:
- Mark Landsiedel, Community Development Director
- From:
- Mark Sawyers, Current Planning Manager
Information
TITLE:
Consideration and Approval of Contract: Third Amendment to Development Incentive Agreement between the City of Flagstaff, Aspen Place North, L.L.C. and Alliance Bank of Arizona.
RECOMMENDED ACTION:
-
Approve the Third Amendment to Development Incentive Agreement between the City of Flagstaff, Aspen Place North, L.L.C. and Alliance Bank of Arizona
Policy Decision or Reason for Action:
The Third Amendment to Development Incentive Agreement (DIA), see Attachment 1, addresses the following five main topics. These topics are shown, below, as numbered in the sections of the agreement:
2. Release of Cross-Default; Cross-Collateralization Upon Payoff
3. Release of Cross-Default, Cross-Collateralization of Financed Parcel
4. Covenant Regarding Common Ownership of Lot 122, 123, 125 and 126, see Attachment 2
5. Sales Tax Rebate
6. Modification to Section 4(ii) of Development Incentive Agreement
2. Release of Cross-Default; Cross-Collateralization Upon Payoff
3. Release of Cross-Default, Cross-Collateralization of Financed Parcel
4. Covenant Regarding Common Ownership of Lot 122, 123, 125 and 126, see Attachment 2
5. Sales Tax Rebate
6. Modification to Section 4(ii) of Development Incentive Agreement
Financial Impact:
No direct financial impacts to the City as a result of this agreement.
Connection to Council Goal:
Retain, expand, and diversify economic base
Effective governance
Effective governance
Has There Been Previous Council Decision on This:
The City Council approved the original Development Incentive Agreement in June 2007 (see Attachment 3) and, subsequently, the First Amended DIA in February 2010 (see Attachment 4) and the Second Amended DIA in July 2010 (see Attachment 5).
Options and Alternatives:
The City Council may approve the proposed Third Amendment to Development Incentive Agreement as recommended by City Staff, or modify the conditions, include additional conditions or deny the Third Amendment to the Development Incentive Agreement.
Background/History:
Red Reality Advisors closed on the Aspen Place at the Sawmill north property (commercial property) and assumed payment of the improvement bonds through the entity now know as Flagstaff Aspen Place LLC. The Development Incentive Agreement allowed for the sharing of sales tax revenue to repay the Bond Assessment.
Key Considerations:
Aspen Place North, L.L.C. has requested to further modify and amend certain terms and conditions of the Development Incentive Agreement as modified and amended by the Second Amendment.
The Third Amendment to the Development Incentive Agreement contains five main action sections. They are summarized below, as numbered in the agreement:
2. Release of Cross-Default; Cross-Collateralization Upon Payoff - Allows improvement bond payoff of the remaining portion an individual property without penalty.
3. Release of Cross-Default; Cross-Collateralization of Finance Parcel - Releases Lots 121, 122 and 123 from the cross collateralization of the second agreement.
4. Covenant Regarding Common Ownership of Lot 122, 123, 125 and 126 - Amends second amendment.
5. Sale Tax Rebate- Development Incentive Agreement requires that 80% of the retail improvements within the Project be substantially complete as of the tenth (10th) anniversary of the date of the original Agreement. Establishes 36,200 square feet of additional retail development to be deemed substantially complete with this term as established with the Second Amendment.
6. Modifications to Section 4(ii) of Development Incentive Agreement - The Sales Tax Rebate provided by the City to the Landowner pursuant to this Agreement may be assigned by the Landowner to any other party, including any successor owner of the Property or any portion thereof, without the City’s approval.
The Third Amendment to the Development Incentive Agreement contains five main action sections. They are summarized below, as numbered in the agreement:
2. Release of Cross-Default; Cross-Collateralization Upon Payoff - Allows improvement bond payoff of the remaining portion an individual property without penalty.
3. Release of Cross-Default; Cross-Collateralization of Finance Parcel - Releases Lots 121, 122 and 123 from the cross collateralization of the second agreement.
4. Covenant Regarding Common Ownership of Lot 122, 123, 125 and 126 - Amends second amendment.
5. Sale Tax Rebate- Development Incentive Agreement requires that 80% of the retail improvements within the Project be substantially complete as of the tenth (10th) anniversary of the date of the original Agreement. Establishes 36,200 square feet of additional retail development to be deemed substantially complete with this term as established with the Second Amendment.
6. Modifications to Section 4(ii) of Development Incentive Agreement - The Sales Tax Rebate provided by the City to the Landowner pursuant to this Agreement may be assigned by the Landowner to any other party, including any successor owner of the Property or any portion thereof, without the City’s approval.
Community Benefits and Considerations:
The Third Amendment allows for the continued development of the Sawmill development as approved by the Master Plan. Presently REI, consisting of approximately 23,825 square feet, is under construction and Alliance bank, consisting of 6,000 square feet, is currently under building plan review. Additionally, the mixed use development known as Village at Aspen Place is on the Council agenda for this evening for the second reading of the Zoning Map Amendment and consideration to amend the previous Development Agreement concerning the commercial parcels.
Community Involvement:
Not applicable.