Agenda Item Title:
Authorize Mayor and Interim Finance Director to acknowledge the City’s consent to the assignment of the Development Agreement between the City and CR Lloyd Associates for the construction of a mixed use development to Block 5, L.L.C.
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
02/01/2023
City Council Hearing Date:
02/06/2023
Petitioner:
Lloyd Companies
Staff Contact:
Joel Landeen, City Attorney
Location:
5th & St. Joseph Street
Agenda Item Summary:
At the time we entered into the development agreement we were aware that Lloyd Companies would want the project owned and managed by a single purpose entity. This entity would still be controlled by Lloyd Companies through the completion of the project. The entity did not exist at the time we entered into the development agreement, so Section 2.16 of the development agreement acknowledges this fact and authorizes Lloyd to assign this agreement to the new entity after it is created. The entity that Lloyd Companies created to own and manage the project is Block 5, L.L.C. Block 5, L.L.C. is the borrower for the project’s financing so we need to assign the agreement to Block 5 in conjunction with approving the assignment of the TIF proceeds to Pioneer Bank who is funding that portion of the project. Block 5 will be bound by all of the terms and conditions of the original development agreement. The only change in the agreement will be the name of the entity involved.
Funding Source & Fiscal Impact (if applicable):
Funding | Cost Center |
---|---|
Funding Source & Fiscal Impact Notes:
No cost.
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Staff is recommending approval
City Council Options:
If you do not approve this assignment, the City would likely be in breach of our development agreement with Lloyd Companies.