LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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FOURTH ADDENDUM TO THE PARTIAL ASSIGNMENT TO VALENCIA DEVELOPMENT CORPORATION OF THE OPTION AGREEMENT BETWEEN THE CITY OF PENSACOLA AND STUDER PROPERTIES LLP
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RECOMMENDATION:
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That City Council approve and authorize the Mayor to execute the Fourth Addendum to the Partial Assignment to Valencia Development Corporation of the Option Agreement between the City of Pensacola and Studer Properties LLP for the development of Parcel 7 of the Vince J. Whibbs Sr. Community Maritime Park, extending the agreement for six months through March 31, 2024. Also, that City Council authorize the Mayor to take the actions necessary to execute and administer this agreement consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In October 2018, the City entered into an option agreement with Studer Properties for the exclusive right to develop and lease all of the vacant parcels at the Community Maritime Park, specifically parcels 3 through 9. In March 2020, the option agreement was extended through March 31, 2021.
In October 2020, prior to the expiration of the option agreement with Studer Properties, both parties entered into a partial assignment of the agreement with Valencia Development Corporation for parcel 7. Corresponding partial assignments were also entered into with two other development groups for the remainder of the parcels - Inspired Communities of Florida for parcels 3, 6, 8, and 9, and Silver Hills Development for parcels 4 and 5 - with the former still in effect and the latter being no longer valid.
In March 2021, the City approved the first addendum to Valencia’s partial assignment, extending the agreement through September 30, 2021. In September 2021, the City approved the second addendum to Valencia’s partial assignment, extending the agreement through September 30, 2022. In September 2022, the City also approved the third addendum, extending the agreement through September 30, 2023. The City and Valencia now seek to extend the term of their partial assignment for a final six months through March 31, 2024 via this fourth addendum.
PRIOR ACTION:
October 1, 2018 - City enters into an Option Agreement with Studer Properties for all vacant lots in Community Maritime Park
March 26, 2020 - City approves an Addendum to the Option Agreement with Studer Properties, extending the term through March 31, 2021
October 9, 2020 - City enters into a Partial Assignment of the Option Agreement with Studer Properties and Valencia Development Corporation
March 25, 2021 - City approves the First Addendum to the Partial Assignment of the Option Agreement with Valencia, extending the term through September 30, 2021
September 9, 2021 - City approves the Second Addendum to the Partial Assignment of the Option Agreement with Valencia, extending the term through September 30, 2022
September 29, 2022 - City approves the Third Addendum to the Partial Assignment of the Option Agreement with Valencia, extending the term through September 30, 2023
FUNDING:
N/A
FINANCIAL IMPACT:
Valencia Development Group will continue their monthly option payment ($1,327.89) per the terms of the agreement. Upon successful negotiation of the ground lease for Parcel 7, Valencia will receive a credit equal to payments made under the option agreement and its addendums.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
10/12/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Fourth Addendum to the Partial Assignment to Valencia Option Agreement
PRESENTATION: No end