LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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COMMUNITY MARITIME PARK PARCEL 7 - THIRD 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 Third 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, 2023.
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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3, 6, 8, and 9, and Silver Hills Development for parcels 4 and 5 - with the former still in effect and the latter being no longer valid.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 also approved the second addendum to Valencia’s partial assignment, extending the agreement through September 30, 2022. The City and Valencia now seek to extend the term of their partial assignment for another twelve months through September 30, 2023 via this third 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
FUNDING:
N/A
FINANCIAL IMPACT:
Valencia Development Group will continue their monthly option payment ($1,327.89) per the terms of their agreement. Upon successful negotiation of the ground lease and development agreement 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
9/12/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) Third Addendum to the Partial Assignment to Valencia Development Corp. Option Agreement
PRESENTATION: No end