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File #: 21-00264    Version: 1 Name:
Type: Legislative Action Item Status: Passed
File created: 3/9/2021 In control: City Council
On agenda: 3/25/2021 Final action: 3/25/2021
Enactment date: Enactment #:
Title: FIRST ADDENDUM TO THE PARTIAL ASSIGNMENT TO VALENCIA DEVELOPMENT CORPORATION OF THE OPTION AGREEMENT BETWEEN THE CITY OF PENSACOLA AND STUDER PROPERTIES, LLP
Sponsors: Grover C. Robinson, IV
Attachments: 1. FIRST ADDENDUM TO THE PARTIAL ASSIGNMENT TO VALENCIA DEVELOPMENT CORPORATION OF THE OPTION AGREEMENT BETWEEN THE CITY OF PENSACOLA AND STUDER PROPRETIES, LLP

LEGISLATIVE ACTION ITEM

 

SPONSOR:                         Grover C. Robinson, IV, Mayor

 

SUBJECT:

 

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FIRST 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 authorize the Mayor to execute the First 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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HEARING REQUIRED:  No Hearing Required

 

SUMMARY:

                                          

On October 1, 2018, Studer Properties, LLP (“Studer Properties”) entered into an Option Agreement with the City of Pensacola whereby the City granted to Studer Properties the exclusive right to develop and lease vacant parcels at the Community Maritime Park. Later, an Addendum dated April 1, 2020, was agreed to by the parties whereby the option agreement was extended through March 31, 2021.

 

On October 9, 2020, Studer Properties, the City, and Valencia entered into a Partial Assignment of the Studer Option Agreement, expiring on March 31, 2021 (the “Valencia Option Agreement”).

 

The purpose of the Valencia Option Agreement is to provide for the development of Parcel 7 in a manner consistent with the 2010 City of Pensacola Community Redevelopment Agency Plan and all applicable statutes, ordinances, and regulations and to provide for the development of the western side of downtown in a cohesive way.

 

The City and Valencia desire to extend the term of the Valencia Option Agreement for an additional six months through midnight of September 30, 2021, to allow the parties to complete their negotiations regarding a revised option agreement and ground lease.

 

PRIOR ACTION:                     

 

October 11, 2018 - City Council authorized the Mayor to execute an option agreement with Studer Properties, LLP through the Direct Negotiation Option for lots 3, 4, 5, 6, 7,8, and 9 of the CMP.

 

March 26, 2020 - City Council authorized the Mayor to execute an addendum to the Option Agreement between the City of Pensacola and Studer Properties, LLP extending the Option Term twelve (12) months to March 31, 2021.

 

October 9, 2020 - Studer Properties, the City, and Valencia entered into a Partial Assignment of the Studer Option Agreement, expiring on March 31, 2021 (the “Valencia Option Agreement”).

 

FUNDING:                     

 

N/A

 

FINANCIAL IMPACT:

                     

The City has been paid by Valencia $4,968.88 to date and will continue to be paid by Valencia the monthly amount of $1,327.89.  Monthly payments received in the past and that will be received in the future during the addendum period (April 1, 2021 - September 30, 2021) will be used solely to defray the City’s costs negotiating with the three Developers (Valencia, Silver Hills, and Inspired).  The remainder will be used to pay for capital maintenance repairs on the stadium to the extent that any amount of the option payments remain.

 

CITY ATTORNEY REVIEW:    Yes

 3/11/2021

   

STAFF CONTACT:

 

Keith Wilkins, City Administrator

 

 

ATTACHMENTS:

 

1)                     First addendum to the partial assignment to Valencia Development Corporation of the option agreement between the City of Pensacola and Studer Properties, LLP

 

PRESENTATION:     No   end