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ITEM 4

City Council Memorandum Cultural Development Memo No.

Date:

June 23, 2025

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
Kim Moyers, Cultural Development Director

From:

Lauren Koll, Downtown Redevelopment Program Manager

Subject:

First amendment to the Development Agreement between JEMBJACD, LLC, and the City of Chandler

Proposed Motion:

Move City Council pass and adopt Resolution No. 5898 adopting a first amendment to the Development Agreement between JEMBJACD, LLC, and the City of Chandler, approving an extension to the agreement term and development deadlines, amending the time to cure defaults, and approving an assignment of the Development Agreement to Everstead Ventures, LLC, for the properties located at 200 South Oregon Street and 210 South Oregon Street.

Background:

On August 12, 2021, City Council directed staff to prepare a Request for Proposal (RFP) for approximately .36 acres of City-owned property located at the southwest corner of Chicago Street and Oregon Street, also known as 200 South Oregon Street and 210 South Oregon Street. After failed negotiations with the originally chosen developer, City Council directed staff to begin negotiating a development agreement with JEMBJACD, LLC. The developer proposed a "food hall" concept, including a two-story building with an outdoor upper-deck patio.

On August 14, 2023, City Council approved Resolution No. 5061, adopting the provisions of a Development Agreement and Purchase Agreement between JEMBJACD, LLC, and the City of Chandler. The Development Agreement outlined minimum improvements, including a single two-story building consisting of a minimum of 15,000 square-feet with a central bar area surrounded by multiple retail and restaurant tenants. Other improvements included outdoor upper-deck patio seating, trash and back-of-house services at the rear of the property, and a drive aisle for pickup and drop-off.

Discussion:

JEMBJACD, LLC, completed the first milestone, "submittal of an administratively complete application," as outlined in the Development Agreement.

Recently, JEMBJACD, LLC, made a formal request to assign its rights to the property and Development Agreement to Everstead Ventures, LLC. Everstead Ventures, LLC, consists of an original partner of JEMBJACD, LLC, who will remain the majority owner, with three additional new partners.

The delay in the project was primarily due to financial constraints, as initial cost projections indicated that the development was not economically viable to the original partnership. The developer has secured private funding to support the project, ensuring financial independence and stability throughout its execution. As evidence of this financial backing, the developer will provide a bank statement and/or letter signed by partners.

The First Amendment to the Development Agreement outlines the reassignment to Everstead Ventures, LLC, and includes a new development milestone timeline along with a 30-day cure period. All other details of the original Development Agreement will remain the same. The amended agreement expires on May 31, 2031, with the following construction deadlines:

CONSTRUCTION DEADLINES

ACTION

DEADLINE

Developer's submittal of administratively complete application(s) for any land use entitlement required for minimum improvements.

October 1, 2025

Developer obtains final development approval, including Planned Area Development (PAD) and Preliminary Development Plan (PDP)

March 31, 2026

Developer submittal of 90% completed civil plans for the grading permit.

March 1, 2026

Developer obtains approval of site and building plans ("Civil Plans")

July 1, 2026

Developer's Commencement of Developer's Commencement of Construction ("Construction Commencement")

October 1, 2026

Developer's Completion of Construction ("Construction Completion Date")

October 1, 2027

Attachments

Food Hall Rendering

Resolution 5898

First Amendment to Developer Agreement