ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
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REQUEST TO TEMPORARILY SUSPEND AND RE-NEGOTIATE AN AGREEMENT WITH THE CRA RELATED TO 100 W INTENDENCIA ST.
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RECOMMENDATION:
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That the Community Redevelopment Agency (CRA) consider suspending the deed restrictions set forth in the special warranty deed for the property addressed as 100 West Intendencia Street (formally 120 W. Government Street) for a period of sixty (60) days, beginning on April 11, 2023, to permit a prospective buyer to acquire the property and to re-negotiate an agreement with the CRA for the redevelopment of the subject property.
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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.
At the CRA’s February 2023 meeting, G Squared Pensacola, LLC submitted a request to modify the deed restrictions. The CRA authorized staff to further negotiate an amendment to the restrictions for its consideration at a future meeting.
Subsequent to the February 2023 meeting, however, staff was approached by a prospective buyer interested in acquiring and redeveloping the property. The buyer is currently under contract to acquire the property and is requesting that the CRA consider suspending the restrictions for a period of sixty (60) days, beginning on April 11, 2023, to allow the buyer to complete acquisition and to re-negotiate an agreement with the CRA for redevelopment of the property.
The existing restrictions, less the liquidated damages waived during the 60-day suspension period, will continue to apply should (1) the property not be successfully acquired by the prospective buyer and (2) an agreement between the buyer and CRA not be reached for redevelopment of the site within the 60-day suspension period.
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.
February 6, 2023 - The CRA authorized 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.
FUNDING:
N/A
FINANCIAL IMPACT:
Approval of this request will suspend accrual of liquidated damages at a rate of $1,000 per day for a period of 60 days.
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STAFF CONTACT:
David Forte, Deputy City Administrator
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) Prospective Buyer Request
PRESENTATION: No end