Consider Proposed Restrictive Covenants on HRA Owned Parcels in The COR

Often in developments similar in size to The COR, an owner would consider a list of uses or users that would be detrimental to the project's vision and character. This varies substantially from project to project, but there are certain uses commonly referred to as "the dirty dozen" that are generally excluded by title from operating within almost every project.  While the city does hold certain control over zoning that may accomplish much of the same goals, recording restrictive covenants on the land provides an additional layer of protection that cannot necessarily be removed by a change of ordinance or zoning law.

Many times in consideration of purchasing a parcel, a buyer may want these protections to assure their investment is not diminished by a use that would be substantially detrimental to theirs. An example would be a school or daycare that would want to be certain that the sale of adult materials could not take place immediately adjacent to their facility. This makes this issue a discussion point with nearly every potential buyer considering property in The COR.

The development team has prepared a proposed form for recording restricted covenants over all parcels currently owned by the HRA.  We have made one pass at the industry standard list and adjusted some items that clearly did not apply. This agreement is included in this case.

By recording this agreement on the title of all land currently owned by the HRA, we are essentially assuring the uses listed cannot be constructed or operate within The COR without an amendment that was agreed to by a majority of the effected parcels. The HRA would likely hold that majority until such time as the parcels are sold to a variety of users that would then comprise a wide variety of interests, guarding against the ability to make dramatic revisions in the future.  It is relatively safe to say that restrictions of this type are rarely amended.

If and when this document is recorded, individual buyers would have this restriction of record on title in which they could rely, and minimize the need to reinvent this list on a case-by-case basis for each sale. It would also provide the city a uniform list of restricted uses that could more easily be tracked as opposed to a variety of uses on random parcels.

The development team recommends the HRA review and consider the proposed list of uses and provide any additional feedback as to either the uses listed, or any the HRA believes should be considered in addition.

N/A

Provide consensus direction to the development team to make revisions to the proposed document and present for approval in final form at a future regular meeting of the HRA.