LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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FOURTH ADDENDUM TO THE PARTIAL ASSIGNMENT TO INSPIRED COMMUNITIES OF FLORIDA LLC OF THE OPTION AGREEMENT BETWEEN THE CITY OF PENSACOLA AND STUDER PROPERTIES LLP
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RECOMMENDATION:
recommendation
That City Council approve and authorize the Mayor to execute the Fourth Addendum to the Partial Assignment to Inspired Communities of Florida LLC of the Option Agreement between the City of Pensacola and Studer Properties LLP for the development of Parcels 3, 6, and 8 of Vince J. Whibbs Sr. Community Maritime Park, extending the agreement for five months through February 29, 2024. Also, that City Council authorize the Mayor to take 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 Inspired Communities of Florida for the parcels 3, 6, 8, and 9. Corresponding partial assignments were also entered into with two other development groups for the remainder of the parcels - Valencia Development Corporation for parcel 7 and Silver Hills Development for parcels 4 and 5 - with the former still in effect and the latter being no longer valid.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 Inspired’s partial assignment, extending the agreement through September 30, 2021. In September 2021, the City also approved the second addendum to Inspired’s partial assignment, extending the agreement through September 30, 2022. In March 2022, Inspired agreed to relinguish their option on parcel 9 at the request of Northwest Florida Professional Baseball via the City for the construction of enhancements to Wahoo Stadium at Community Maritime Park. In October 2022, the City also approve the third addendum to Inspired’s partial assignment, extending the agreement through September 30, 2023. The City and Inspired now seek to extend the term of their partial assignment for a final five months through February 29, 2024.
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 Inspired Communities of Florida
March 25, 2021 - City approves the First Addendum to the Partial Assignment of the Option Agreement with Inspired, extending the term through September 30, 2021
September 9, 2021 - City approves the Second Addendum to the Partial Assignment of the Option Agreement with Inspired, extending the term through September 30, 2022
October 27, 2022 - City approves the Third Addendum to the Partial Assignment of the Option Agreement with Inspired, extending the term through September 30, 2023
FUNDING:
N/A
FINANCIAL IMPACT:
Inspired Communities of Florida will continue their monthly option payment ($2,426.81) per the terms of their agreement. Upon successful negotiation of the ground lease(s) and development of parcels 3, 6, and 8, Inspired 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 Inspired Option Agreement
PRESENTATION: No end