ACTION ITEM
SPONSOR: Jewel Cannada-Wynn, Chairperson
SUBJECT:
title
CONSIDERATION OF PROPOSAL TO TRANSFER THE EAST PORTION OF THE HAWKSHAW PROPERTY AT 9TH AND ROMANA AND TO AMEND THE DEVELOPMENT AGREEMENT WITH HAWKSHAW DEVELOPMENT GROUP, LLC.
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RECOMMENDATION:
recommendation
That the Community Redevelopment Agency (CRA) consider Hawkshaw Development Group LLC’s proposal to convey the east portion of the Hawkshaw redevelopment project site at 9th and Romana from Hawkshaw Development Group LLC. to Hawkshaw East, LLC. (Brian Spencer, Manager) and determine whether to grant or deny approval of said proposal at this time. Further, that the CRA approve the replacement of the current Purchase and Sale Agreement with a new development agreement to include the Conditions, Covenants and Restrictions previously imposed by the CRA to apply to both resulting parcels of the project. Finally, should approval be granted, that the CRA authorize the CRA Chairperson to execute all necessary documents.
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SUMMARY:
On November 6, 2017, the Community Redevelopment Agency (CRA) approved the Purchase and Sale Agreement for sale of the Hawkshaw property to Robert Montgomery, LLC. On February 26, 2018 the deed for sale of the property to Hawkshaw Development Group, LLC, with Mr. Montgomery as the principle, was filed in the Escambia County Official Records. The approved development proposal from Mr. Montgomery included construction of thirty-eight (38) residential units, mixed use commercial and multi-family space, the Wine Bar Restaurant and parking. The project was to be developed in two phases.
On August 8, 2019 the CRA approved a revision to the project design and development schedule. The new design and development program increased the total residential construction from thirty-eight (38) to no less than fifty (50) residential units, with the Wine Bar occupying restaurant and/or retail space in the building on the southwest corner of the property. The project buildings and structures would contain approximately 92,000 conditioned square feet, and approximately 132,000 total gross square feet, including conditioned square feet, parking under podium, elevated promenade, exterior corridors and balconies.
The project timeline was revised from two phases to a single phase, with a thirty (30) month completion schedule and a construction start date of September 30, 2019. The revised plan complied with the urban design guidelines established for the site by the CRA in the project RFP.
The existing Purchase and Sale Agreement for the Hawkshaw project at 9th Avenue and Romana Street specifies the members of the project development team. The contract provides that any changes to the team be consented to by the CRA, and that such consent not be unreasonably withheld.
In August 2019, Hawkshaw Development Group, LLC. requested that the CRA consent to modification of the development team. The developer indicated that SMP Architecture had replace Caldwell Associates Architects, Inc. as the architect of record and Whitesell-Green, Inc. had replaced Morette Company as the general contractor.
On November 18, 2019, a letter was received from Moorehead Real Estate Law Group, representing Hawkshaw Development Group, LLC., providing notice that the developer now proposes to convey the east portion of the project (the parcel upon which the 42-unit condominium project will be developed) to Hawkshaw East, LLC. Brian Spencer is the manager of Hawkshaw East, LLC., having voting control of this portion of the project. ParsCO Construction is proposed as the project’s general contractor. Both parcels of the property will remain encumbered by the provisions of the development contract, as well as the Declaration of Covenants, Conditions and Restrictions as amended, imposed by the CRA.
In order to effectuate this transfer, a new development agreement containing all the restrictions and performance requirements of the previous agreements has been drafted which makes Hawkshaw East, LLC subject to the CRA’s requirements and responsible to Hawkshaw Development Group, LLC. as the Master Developer. Hawshaw Development Group, LLC. will also remain responsible to the CRA for meeting the requirements of the development agreement.
The eastern portion of Hawkshaw property, proposed for transfer, is delineated on the attached map. The proposed new development agreement is also attached.
PRIOR ACTION:
November 6, 2017 - CRA approved the development agreement/contract for sale of the Hawkshaw property to Robert Montgomery, LLC.
February 26, 2018 - The deed for sale of Hawkshaw property to Hawkshaw Developers, LLC was filed in Escambia County Official Records.
June 10, 2019 - The CRA approved extension of the commencement deadline for the Hawkshaw redevelopment project at 9th Avenue and Romana Street to September 30, 2019 and granted extension of the construction commencement deadline.
August 5, 2019 - The CRA approved changes to the Hawkshaw Redevelopment, LLC. Development Team.
FUNDING:
N/A
FINANCIAL IMPACT:
None
CITY ATTORNEY REVIEW: Yes
12/3/2019
STAFF CONTACT:
M. Helen Gibson, AICP, CRA Administrator
Victoria D’Angelo, Assistant City Administrator
ATTACHMENTS:
1) 11.18.19 SRM ltr to Susan Woolf
2) Development Agreement
PRESENTATION: Yes end