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Resolution Approving the Second Amendment to the Amended and Restated Purchase and Development Agreement for the River Place Development, and Authorizing the City Manager to Sell Property to the Developer at Fair Market Value
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Department: |
City Manager |
Meeting Date: |
4/1/2025 |
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Contact Name: |
Aubrey Parsley |
Public Hearing: |
Yes |
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Contact Phone: |
910-341-0188 |
Advertising Date/Advertised By: |
3/17/2025 3/24/2025 |
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Attachments: |
Attachment #1: Resolution Attachment #2: Exhibit 1 - Second Amendment |
PURPOSE:
The purpose of this resolution is to amend the current development agreement for the River Place Development to allow the City to convey property subject to the agreement, and currently leased to the developer, to the developer through direct sale at fair market value.
BACKGROUND:
The City and Water Street Ventures, LLC (“Water Street”) entered into a Purchase and Development Agreement (“PDA”) dated June 21, 2016, and a subsequent First Amendment to the Agreement in September of 2017. The City and Water Street entered into and executed an Amended and Restated PDA effective October 3, 2017. Water Steet assigned their interest and responsibilities to SPC-EW RIVER PLACE LLC (“Developer”) on January 17, 2018. The City and the Developer then entered into a First Amendment to the Amended and Restated Purchase and Development Agreement (“Agreement”) on December 1, 2020.
The Developer and the City now wish to enter into a Second Amendment to the Agreement to authorize the conveyance of property rights currently owned by the City, within the River Place development, to the Developer. The proposed Second Amendment is attached as Exhibit 1 - Second Amendment. The draft of the Second Amendment was made available for public inspection following publication of notice for today’s public hearing on this item.
In addition to authorizing the Second Amendment, the resolution will authorize the City Manager to sell property within the development and subject to the ground lease to the Developer at fair market value.
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BUDGET IMPACT:
There is no current budgetary impact. When the sale is completed, there will be a separate item for Council to appropriate the sale funds received.
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RECOMMENDATION / ACTION REQUESTED:
Passage of this resolution is recommended.