Adopt Resolution #26-043 Approving Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement - Cottages at the COR - Centra North LLC

The purpose of this case is to receive Council approval to fully release the Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement with Centra North LLC for the Cottages at the COR Development. 

The original Right of Re-Entry Agreement executed on November 28, 2018, included the requirement to build 15 town homes and obtain 15 certificates of occupancy by October 1, 2021. The City had the ability to take physical possession of the land back, without recourse or impose a $20,000 penalty on each lot, if the buildout did not move forward according to the agreement.  The agreement also had a provision that would require the City to release the right to take back the physical possession of the land if the Stage One Improvements (Onsite utility installation, internal roadways, sidewalks, etc) were completed.  Centra installed the required Stage One Improvements and an Amended Right of Re-Entry Agreement was executed on July 23, 2019 releasing the City right to take physical possession of the land but it retained the ability to impose $20,000 penalties on lots that did not receive their required Certificate of Occupancy within the defined time frame.  Centra obtained the required Certificates of Occupancies in the defined time frame and has satisfied all requirements of both agreements. 

The Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement show up as encumbrances in a title search, which can cause issues with closings depending on the title examiner.  The City had one new home buyer title company request the Right of Re-Entry Agreement be fully released to clear title for their purchase in Early February 2026 for a closing at month's end.  Rather than release one lot at a time, Staff thought it was prudent, and more efficient, to release all lots and agreements, so Council action would not be needed for future requests.  The City Attorney has reviewed the Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement and has approved it as to form and effectiveness. 

None required

Centra North LLC has completed all the requirements of the Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement for Cottage at the COR.  As such, the documents and their obligations should be released for Centra North LLC and all current and future homeowners in the Cottages at the COR development.

Alternatives include:
1) Adopt Resolution #26-043 Approving Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement (as presented); subject to City Attorney review
2) Adopt Resolution #26-043 Approving Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement (with changes); subject to City Attorney review
3) Something Else

No funding is required.  Title Company to pay for recording fees for filing of release document

Staff recommends adoption of Resolution #26-043 Approving Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement (as presented); subject to City Attorney review

Motion to Adopt Resolution #26-043 Approving Release of Right of Re-Entry Agreement and Amended Right of Re-Entry Agreement (as presented); subject to City Attorney review