ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
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REQUEST TO NEGOTIATE THE SPECIAL WARRANTY DEED RESTRICTION REQUIREMENTS RELATED TO 100 W INTENDENCIA ST.
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RECOMMENDATION:
recommendation
That the Community Redevelopment Agency (CRA) consider authorizing staff to negotiate the deed restrictions set forth in the special warranty deed for the property addressed as 100 West Intendencia Street (formally 120 W. Government Street) per a request from G Squared Pensacola LLC.
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SUMMARY:
On December 5, 2016 the CRA declared the property located at 120 West Government Street surplus and available for redevelopment. Subsequently, a Notice of Disposition/Request for Proposals (RFP) was published in the Pensacola News Journal for redevelopment of the property in accordance with Chapter 163, Part III, Florida Statutes. A contract for sale of the property was awarded to Steven and Paul Grimes, managers of G Squared Pensacola, LLC (as later assigned) on September 11, 2017 in response to a development proposal received by the developer. Requirements for redevelopment of the property were secured by deed restrictions within the special warranty deed. The restrictions require that the property be used only for a professional office and residential mixed use development including no less than 10 units.
Subsequent to the sale, the property was split into two parcels. The parcel to the south remains addressed as 120 West Government Street, while the parcel to the north is addressed as 100 West Intendencia Street. A Notice of Commencement was issued on August 22, 2018 for construction of a 6-unit mixed use building now known as the Imperium building. The building includes 3 commercial units with 3 two-level condominium units located above them. A certificate of occupancy was issued for completion of the Imperium on October 23, 2019. No further construction has been performed to date, leaving 4 units still to be developed. The deadline for completion of the 10 units was January 5, 2020. Since only 6 of the 10 units have been completed to-date, liquidated damages are accruing at a rate of $1,000 per day in accordance with the restrictions.
G Squared Pensacola, LLC is requesting the following modifications:
- Revise Exhibit A regarding number of units to be built on 100 West Intendencia to 4 units
- Remove paragraphs 2b, 2c, 3 and 5 of Exhibit A
- Extend date in paragraph 4, Exhibit A to June 30, 2025
- Waive accrued liquidated damages
A letter further detailing the developer’s request is attached.
If the CRA chooses to permit further negotiation and based on its guidance, staff will bring back a draft amendment to the restrictions at a future meeting. It is anticipated that the amendment will be brought back in March.
PRIOR ACTION:
December 5, 2016 - The CRA declared the property located at 120 W Government Street surplus.
September 11, 2017 - The CRA approved an award of contract to G. Squared LLC. for the sale of 120 West Government Street.
September 14, 2017 - The City Council approved an award of contract to G. Squared LLC. for the sale of 120 West Government Street.
May 10, 2018 - The CRA approved a 150-day extension of the construction commencement deadline set forth in the deed conveying 120 W Government Street, terminating on September 2, 2018.
FUNDING:
N/A
FINANCIAL IMPACT:
If the developer’s request is approved, the CRA will waive liquidated damages accruing at a rate of $1,000 per day since June 5, 2020.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
1/31/2023
STAFF CONTACT:
David Forte, Deputy City Administrator - Community Development
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Assistant Manager
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ATTACHMENTS:
1) Development Proposal - G. Squared LLC
2) Special Warranty Deed
3) Amendment Extending Construction Commencement
4) Accepted Plans
5) Location Map
6) Developer’s Request Letter
PRESENTATION: No end