LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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FIRST 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:
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That City Council authorize the Mayor to execute the First 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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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 Inspired Communities of Florida, LLC entered into a Partial Assignment of the Studer Option Agreement, expiring on March 31, 2021 (the “Inspired Communities of Florida, LLC, Option Agreement”).
The purpose of the Inspired Communities of Florida, LLC, Option Agreement is to provide for the development of Parcels 3, 6, 8, and 9 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 Inspired Communities of Florida, LLC desire to extend the term of the Inspired Communities of Florida, LLC Option Agreement for an additional six months through midnight of September 30, 2021, in order to allow time for the parties to complete their negotiations regarding a revised option agreement and ground lease. If at the end of the 6 months extension the parties are negotiating in good faith and the payments are current, an automatic 45-day extension will be granted.
PRIOR ACTION:
October 1, 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 Inspired Communities of Florida, LLC entered into a Partial Assignment of the Studer Option Agreement, expiring on March 31, 2021 (the “Inspired Communities of Florida, LLC Option Agreement”).
FUNDING:
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FINANCIAL IMPACT:
Under the Inspired Communities of Florida, LLC, Option Agreement, Inspired is required to pay the City $15,722.62 through March 31, 2020. Under the addendum, Inspired will continue to pay a monthly amount of $2,738.21 through September 30, 2021. Monthly payments due under the Option Agreement and those 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). To the extent that any amount of the option payments remain, the remainder will be used to pay for capital maintenance repairs on the stadium. In addition, Inspired will receive a rent credit equal to any payments made under the option agreement and the addendum.
CITY ATTORNEY REVIEW: Yes
3/16/2021
STAFF CONTACT:
Keith Wilkins, City Administrator
ATTACHMENTS:
1) First Addendum to the Partial Assignment to Inspired Communities of Florida, LLC Development Corporation of the Option Agreement Between the City of Pensacola and Studer Properties, LLP
PRESENTATION: No end