8.I.
City Council Meeting - FINAL
- Meeting Date:
- 07/01/2025
- From:
- Christina Rubalcava, Senior Assistant City Attorney CR
TITLE:
Consideration and Approval: Assignment of City Development Agreement with MICM Butler Lofts Project LP, Sierra Vista No 6 L.L.C., and Brookstone Ventures L.C. to Horseshoe Realty Flagstaff LLC.
STAFF RECOMMENDED ACTION:
Approve the Assignment of Development Agreement.
Executive Summary:
MICM Butler Lofts Project LP, Sierra Vista No 6 L.L.C., and Brookstone Ventures L.C. want to transfer the rights and obligations granted to the Lofts on Butler development project pursuant to the Development Agreement with the City of Flagstaff to Horseshoe Realty Flagstaff LLC, and ask the City to approve the assignment and transfer the obligations under the Development Agreement to Horseshoe Realty Flagstaff LLC. 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.
Previous Council Decision or Community Discussion:
None.
Options and Alternatives to Recommended Action:
City Council may:
1. Approve the Assignment of Development Agreement.
2. Deny the Assignment of Development Agreement and ask for further information and/or assurances from Horseshoe Realty Flagstaff LLC.
1. Approve the Assignment of Development Agreement.
2. Deny the Assignment of Development Agreement and ask for further information and/or assurances from Horseshoe Realty Flagstaff LLC.
Background and History:
MICM Butler Lofts Project LP, Sierra Vista No 6 L.L.C., and Brookstone Ventures L.C. want to transfer the rights and obligations granted to the Lofts on Butler development project pursuant to the Development Agreement with the City of Flagstaff to Horseshoe Realty Flagstaff LLC. Under the terms of the Development Agreement with the City of Flagstaff, the City must approve the assignment of the Development Agreement to a new party and the City’s approval cannot be unreasonably withheld. MICM Butler Lofts Project LP, Sierra Vista No 6 L.L.C., and Brookstone Ventures L.C. are asking the City to approve the assignment and transfer the obligations under the Development Agreement to Horseshoe Realty Flagstaff LLC.
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 Horseshoe Realty Flagstaff LLC for consideration by the City Council:
Horseshoe Realty Flagstaff, LLC is a sole purpose entity formed to acquire land and provide equity capital to develop The Lofts on Butler. Horseshoe Realty Flagstaff, LLC affiliates have provided equity capital and lender financing to acquire land and develop multi-family and other residential projects. Additionally, certain affiliates have invested equity capital in commercial real estate.
This transaction is between the financing and development arms of Miramonte’s team so it is done for financing reasons. Miramonte will remain involved.
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 Horseshoe Realty Flagstaff LLC for consideration by the City Council:
Horseshoe Realty Flagstaff, LLC is a sole purpose entity formed to acquire land and provide equity capital to develop The Lofts on Butler. Horseshoe Realty Flagstaff, LLC affiliates have provided equity capital and lender financing to acquire land and develop multi-family and other residential projects. Additionally, certain affiliates have invested equity capital in commercial real estate.
This transaction is between the financing and development arms of Miramonte’s team so it is done for financing reasons. Miramonte will remain involved.