| ITEM #: 2. DATE: 11/13/2023 AI #:1727 |
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: | CONSENT TO ASSIGNMENT OF KING RANCH AGREEMENTS |
| STAFF PRESENTER(S): | Jared Askelson, Deputy Finance Director |
SUMMARY
Approve and authorize execution of Consent to Assignment of various agreements related to development within King Ranch Community Facilities District (CFD).
Recommendation
Approve and authorize District Treasurer to execute a Consent to Assignment in the draft form attached as Exhibit 1, providing the District’s consent to KR TIC 1 LLC, an Arizona limited liability company, and KR TIC 2 LLC, an Arizona limited liability company (collectively the “KR Entities”) taking assignment of the rights, title, interest in, and obligations under the existing “CFD Development Agreement” relating to the King Ranch Community Facilities District. (Jared Askelson, Deputy Finance Director)
FISCAL IMPACT
There will be no fiscal impact as a result of the assignment. The assignment will modify the parties entitled to the rights and interests and responsible for the obligations and liabilities under the various agreements.
BACKGROUND AND PREVIOUS ACTIONS
The original Development, Financing Participation and Intergovernmental Agreement No. 1 (King Ranch Community Facilities District) was executed between the City, District and EP-The King, LLC, on February 6, 2006. On July 31, 2007, the Assignment and Assumption of CFD Development Agreement transferred the interest in the agreements from EP-The King, LLC, to HE Capital KR, LLC.
STAFF ANALYSIS
HE Capital KR, LLC is in the process of selling certain property located within King Ranch to the KR Entities. HE Capital KR, LLC is asking the District to consent to the assignment by the HE Capital KR, LLC of its respective rights, title, interest in, and obligations under the CFD Development Agreement to the KR Entities upon the KR Entities’ acquisition of the property that is subject to such CFD Development Agreement. The execution of the consent will have the effect of releasing HE Capital KR, LLC from liability under the CFD Development Agreement with respect to the property that is acquired by the KR Entities.
Staff is asking the District Board to authorize the District Treasurer to execute a Consent to Assignment substantially in the form attached hereto as Exhibit 1.
Staff is asking the District Board to authorize the District Treasurer to execute a Consent to Assignment substantially in the form attached hereto as Exhibit 1.