LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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SECOND 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 Second 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 Jr. Community Maritime Park, extending the agreement for twelve months through September 30, 2022.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In October 2018, the City entered into an option agreement with Studer Properties LLP Corporation for the exclusive right to develop and lease all of the vacant parcels at the Community Maritime Park, specifically parcels 3, 4, 5, 6, 7, 8, and 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 option 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3, 6, 8, and 9, and Silver Hills Development for parcels 4 and 5, with the former still in effect and the latter being no longer valid.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 authorized the execution of the first addendum to the partial assignment with Valencia Development Group, extending the agreement through September 30, 2021.
The City and Valencia Development Group seek to extend the term of their partial assignment for another twelve months through September 30, 2022 via this second addendum. This extension will allow time for the parties to continue and complete negotiations regarding a ground lease and development agreement.
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 authorizes 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 Group.
March 25, 2021 - City authorizes a First Addendum to the Partial Assignment of the Option Agreement with Valencia Development Group, extending the term through September 30, 2021.
FUNDING:
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FINANCIAL IMPACT:
Valencia Development Group will continue to pay $1,327.89 monthly per the terms of their agreement. Upon successful negotiation of the ground lease and development agreement, Valencia Development Group will receive a credit equal to payments made under the option agreement and its addendums.
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STAFF CONTACT:
Keith Wilkins, City Administrator
Kerrith Fiddler, Deputy City Administrator - Community Development
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Second Addendum to the Valencia Option Agreement - draft
PRESENTATION: No end