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Resolution to Authorize the City Manager to Enter into Negotiations with SCP-EW River Place, LLC for the Disposition of Portions of 202 N. Water Street
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Department:
Economic Development
Meeting Date:
1/21/2025
Contact Name:
Aubrey Parsley
Public Hearing:
No
Contact Phone:
910-341-0188
Advertising Date/Advertised By:
N/A
Attachments:
Attachment #1: Resolution
PURPOSE:
The purpose of this resolution is to seek Council's authorization for the City Manager to enter negotiations with SCP-EW River Place, LLC to dispose of portions of 202 N. Water Street ("River Place").
BACKGROUND:
The City established a public-private partnership for the redevelopment of the Water Street Parking Facility with SCP-EW River Place, LLC ("East West") which culminated with the passage of a resolution in June of 2016 to authorize a Purchase and Development Agreement ("PDA") between the parties. As a part of the PDA, the City retained portions of River Place to accomplish various objects such as enabling a new, publicly owned parking facility as part of the redevelopment. Some of the land retained by the City is currently subject to a ground lease with East West.
The ground lease covers approximately 34,339 square feet of area within the River Place (R04720-007-026-000) parcel. The ground lease carries an initial term of 50 years, which began January 19, 2018. It also allows for two renewal options, one for 25 years and the second for 24 years. Originally, the ground lease brought $48,552 in annual rent payments to the City but has since escalated in accordance with the lease agreement to $56,897 per year.
Should Council approve the resolution, the City Manager would enter into negotiations with East West to enable the sale of the ground lease area portions of River Place for cash consideration, which would enhance the City's near term cash position, expand its debt capacity, and allow the City to forgo the operational costs of administering its duties as a part ...
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