10.C.
City Council Meeting - FINAL (AMENDED)
- Meeting Date:
- 12/07/2021
Information
TITLE:
Consideration and Approval of Agreement: Assignment of Development Agreement and Waiver which transfers the Development Agreement between the City and Flagstaff at 4th, LLC to Flagstaff Flagler Elkwood Partners LP.
STAFF RECOMMENDED ACTION:
Approve the Assignment of Development Agreement and Waiver.
Executive Summary:
Flagstaff at 4th, LLC wishes to transfer the rights and obligations of its development project to Flagstaff Elkwood Partners LP, a Delaware limited partnership. Flagstaff at 4th, LLC is asking the City to approve the assignment, transfer the obligations under the Development Agreement to Flagstaff Elkwood Partners LP, and release Flagstaff at 4th, LLC from any further obligations under the Development Agreement. The terms of the Development Agreement will not change and any development that occurs on the Property still must comply with the terms and conditions of the Development Agreement.
Financial Impact:
None.
Policy Impact:
None.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
None.
Has There Been Previous Council Decision on This:
No.
Options and Alternatives:
City Council may:
1. Approve the Assignment of Development Agreement and Waiver, transferring responsibility to Flagler Elkwood Partners LP.
2. Deny the Assignment of Development Agreement and Waiver.
1. Approve the Assignment of Development Agreement and Waiver, transferring responsibility to Flagler Elkwood Partners LP.
2. Deny the Assignment of Development Agreement and Waiver.
Background and History:
Flagstaff at 4th, LLC wishes to transfer the rights to its development project to Flagler Elkwood Partners LP, a Delaware limited partnership. Under the terms of the Development Agreement between the City of Flagstaff and Flagstaff at 4th, LLC, the City must approve the assignment of the Development Agreement to a new party and the City’s approval cannot be unreasonably withheld. In addition, the assignment does not release Flagstaff at 4th, LLC from its obligations under the Development Agreement unless specifically agreed to by the City. Flagstaff at 4th, LLC is asking the City to approve the assignment, transfer the obligations under the Development Agreement to Flagler Elkwood Partners LP, and release Flagstaff at 4th, LLC from any further obligations under the Development Agreement.
The terms of the Development Agreement will not change and any development that occurs on the Property must comply with the terms and conditions of the Development Agreement.
The following information has been provided by Flagler Elkwood Partners LP for consideration by the City Council:
There are two groups that will be behind our ownership of this project, including Wexford Developments and Wexford Real Estate Investors. Wexford Developments LP is the developer. Wexford Real Estate Investors is the LP equity partner.
The terms of the Development Agreement will not change and any development that occurs on the Property must comply with the terms and conditions of the Development Agreement.
The following information has been provided by Flagler Elkwood Partners LP for consideration by the City Council:
There are two groups that will be behind our ownership of this project, including Wexford Developments and Wexford Real Estate Investors. Wexford Developments LP is the developer. Wexford Real Estate Investors is the LP equity partner.
Here is a brief overview of each firm:
Wexford Developments
Wexford Developments is a real estate investment, development, and management company with over $500 million of assets under management, with offices in West Palm Beach, FL, New York, NY, and Calgary, Alberta, CA. Wexford has approximately 1,000,000 square feet under management, with a development pipeline exceeding 2.2 million square feet at a value of over $835 million.
Wexford Real Estate Investors
Wexford Real Estate Investors (“WREI”) was formerly the private market real estate investing arm of Wexford Capital LP (“WCLP”) and in 2020 was spun out of WCLP as a dedicated, standalone real estate platform. WREI sources, invests, and executes in value and growth driven real estate transactions using an opportunistic investment philosophy. WREI currently focuses its investments in sunbelt markets with an emphasis on residential rental and condominium investments, and has invested north of $650 million in equity since 2010 in real estate transactions with a total value north of $1.4 billion. For more information, visit https://www.wexfordrei.com