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Title:
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Amend Disposition and Development Agreement with Amstar McKinley, LLC (Ordinance S-45582)
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Title
Amend Disposition and Development Agreement with Amstar McKinley, LLC (Ordinance S-45582)
Description
Request to authorize the City Manager, or his designee, to amend City Contract 143058 with Amstar/McKinley, LLC (Developer) to amend terms pertaining to the project completion date. There is no impact to the General Fund by this action.
Report
Summary
Staff entered into a Disposition and Development Agreement (DDA), City Contract 143058, with the Developer for the construction of a 19-story, 211-unit micro-apartment tower called ‘The Derby’ (Project) at 800 N. 2nd St. The business terms of the DDA with the Developer include a 25-year lease with eight years of property tax abatement under GPLET. Developer started construction in April 2017, but stopped work due to litigation filed against it from a neighboring business. Developer has informed staff that it has resolved litigation pertinent to the Project and wishes to move forward with construction.
The DDA currently calls for construction completion in March 2020, which was 36 months from the original commencement of construction, which is not feasible. In order to facilitate completion of construction, the following amendment to the DDA will allow the project to restart the construction period:
Extend the Construction Completion date by 36 months.
All other terms and conditions of the DDA shall remain in full force and effect.
Financial Impact
There is no impact to the General Fund by this action.
Concurrence/Previous Council Action
City Council originally approved the project through Ordinance S-42353 on March 3, 2016.
Location
800 N. 2nd St.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.