ACTION ITEM
SPONSOR: Delarian Wiggins, Chairperson
SUBJECT:
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AUTHORIZATION TO NEGOTIATE AND EXECUTE A 4TH AMENDMENT TO THE DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS GOVERNING THE HAWKSHAW REDEVELOPMENT PROJECT
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RECOMMENDATION:
recommendation
That the Community Redevelopment Agency (CRA) authorize the CRA Chairperson and staff to negotiate a 4th Amendment to the Declaration of Conditions, Covenants and Restrictions for the Hawkshaw Redevelopment Project (4th Amendment) in accordance with the revised project components and conceptual design plan presented on June 14, 2021 as follows: 195-210 residential units, 2 levels of structured parking, a 5 level building above parking and 2 level residential buildings along S.9th Avenue. Further, the 4th Amendment shall contain a revised critical path construction schedule including the following milestones: a development team meeting with CRA representatives each quarter to provide an update regarding the status of plans, selection of general contractor, project budget, and financing. Further, the 4th Amendment shall require the owner submit final plans for permitting no later than March 31, 2022, with vertical construction beginning within 60 days after the permit is issued, and substantial completion of the project 30 months following commencement of vertical construction. Further, the 4th Amendment shall include a penalty of $2500 per day, up to a maximum of $100,000 for any missed deadline. Finally, that the CRA Chairperson be authorized to execute all necessary documents.
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SUMMARY:
At its June 14 2021 meeting, the CRA received an update on the Hawkshaw redevelopment project from the developer, Hawkshaw Development Group, LLC, (Mr. Robert Montgomery) and his team. The development team presented revised design concept documents that propose the construction of a 200 unit, market-rate residential complex rather than the previously approved mixed use project which included commercial and office components. The developer also introduced several proposed new members of his development team, in addition to a draft revised critical path schedule for the project’s construction.
By letter dated June 21, 2021, from the developer’s Attorney Steve Moorehead, the developer provided an updated critical path schedule for project construction. The letter also stated there would be no changes to the ownership or management of the project. The only stated change to the development team was the choice of construction contractor from two named firms. The only stated change to the development team was the choice of construction contractor from two named firms.
Staff recommends the CRA approve negotiation and execution of a 4th Amendment to the Declaration of Conditions, Covenants and Restrictions for the Hawkshaw Redevelopment Project including the specified conditions.
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 the revised design plans, revised construction timeline and changes to the Hawkshaw Redevelopment, LLC. Development Team.
May 10, 2021 - The CRA directed staff to send a letter to the developer requesting a presentation during its June meeting, as well as, written documentation of the developer’s diligent and continuous prosecution of construction on the project and previously requested items from the CRA Chairman’s letter dated December 17, 2019.
June 14, 2021 - The development team made a presentation to the CRA.
FUNDING:
N/A
FINANCIAL IMPACT:
Completion of the project is expected to generate increased property tax revenue.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
7/6/2021
STAFF CONTACT:
Kerrith Fiddler, Deputy City Administrator - Community Development
M. Helen Gibson, AICP, CRA Administrator
Victoria D’Angelo, Assistant CRA Administrator
ATTACHMENTS:
1) Letter from Steve Moorehead to Susan Woolf-June 28, 2021
2) Letter from Steve Moorehead to Susan Woolf-June 21, 2021
3) Revised Hawkshaw Concept Plan-June 2021
4) Letter from CRA Staff to Robert Montgomery-June 23, 2021
5) Letter from CRA Chairman to Robert Montgomery-May 24, 2021
6) Letter from CRA Chairman to Robert Montgomery-May 12, 2021
7) Letter from CRA Chairman to Robert Montgomery-December 17, 2020
8) Purchase and Sale Agreement
9) 3rd Amendment to CCR
PRESENTATION: No end