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ITEM 8
City Council Memorandum Cultural Development Memo No.
CD22-009
Date:
August 23, 2021
To:
Mayor and Council
Thru:
Joshua H. Wright, City Manager
Debra Stapleton, Assistant City Manager
From:
Kim Moyers, Cultural Development Director
Subject:
Resolution No. 5509, Authorizing the Purchase of the Overstreet Parking Garage located at 150 N. Oregon Street, Pursuant to the Development Agreement and Parking Structure Lease Agreement with DT Chandler, LLC, and Authorizing City Manager or Designee to Execute All Agreements and Other Documents Necessary to Complete the Purchase.
Proposed Motion:
Move City Council adopt Resolution No. 5509, authorizing the Purchase of the Overstreet Parking Garage located at 150 N. Oregon Street, pursuant to the Development Agreement and Parking Structure Lease Agreement with DT Chandler, LLC, and authorizing City Manager or Designee to execute all agreements and other documents necessary to complete the purchase.
Background:
On February 23, 2017, City Council approved a Development Agreement and Option Agreement between the City of Chandler and DT Chandler, LLC, for the development of a mixed use project, named Overstreet, including a five-story parking garage with 350 parking spaces located at 150 N. Oregon Street.
On April 24, 2017, the City of Chandler and DT Chandler, LLC, entered into a 30-year Parking Structure Lease Agreement allowing the City to use the Overstreet Parking Garage for public parking in exchange for monthly lease payments and an option to purchase for $8,690,351. Per the Lease Agreement, if the "Option to Purchase" is exercised at the end of the three-year term, the lease payments would be used to reduce the overall balance of the garage.
On July 24, 2017, the City of Chandler and DT Chandler, LLC, entered into a First Amendment to the Development Agreement agreeing upon additional architectural cladding on the west side of the garage to enhance its aesthetic quality, and agreed upon an increase in the purchase option price of $8,793,351.
Per the Development Agreement and Parking Lease, if the City of Chandler opts to continue lease payments after 36 months, in lieu of purchasing the garage, lease payments will increase annually and will no longer pay down the balance of the Overstreet Parking Garage.
Resolution No. 5509 authorizes the purchase of the Overstreet Garage and authorizes the City Manager or designee to execute all agreements and other documents necessary to complete the purchase.
Financial Implications:
Purchase of the Overstreet Parking Garage includes payment of $7,736,999 from the Downtown Parking Program (401.1291.6210.0.6GG659), as well as $111,352 from the Downtown Redevelopment Program (401.1291.5410.0.6GG619), which will be transferred to the Downtown Parking Program (401.1291.6210.0.6GG659) to ensure all garage payments are properly recorded under the parking garage program number. Approximately $945,000 has been paid down from the original amount from lease payments made over the past 36 months.
Attachments
Resolution 5509 Authorizing Overstreet Garage Purchase
Overstreet Map
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