Title
Amend Redevelopment and Purchase Agreement with 3DC Partners, LLC (Ordinance S-47656)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 149707 with 3DC Partners, LLC to extend the Construction Commencement Date for one additional year, to June 3, 2022. There is no expense impact as a result of this action.
Report
Summary
In April 2019, a Redevelopment and Purchase Agreement (RPA), City Agreement 149707, was entered into with the 3DC Partners, LLC (Developer) for the sale and development of approximately 26,000 square feet of City-owned land located on the southeast corner of Central Avenue and Adams Street at 30 N. 1st St. (Site) as authorized by Ordinance S-44791. The RPA was amended on June 3, 2020 by the First Amendment to the RPA, Agreement 149707-1 (First Amendment), which extended the Commence Construction Date to June 3, 2021, updated the project description and modified the parking requirements.
The Developer intends to construct a mixed-use tower consisting of a boutique hotel with approximately 220 hotel rooms including 20 hospitality suites, approximately 50,000 gross-square-feet of commercial office space and ground floor retail. In addition, Developer will make improvements to Adams Street consistent with the City's Adams Street Activation Study. Collectively these improvements are referred to as the "Project."
The RPA included typical performance benchmarks such as commencement of construction and completion of construction. The Developer is nearing completion of the design and permitting of the Project and has spent significant funds toward the redevelopment of the Site. However, the hotel and office markets have been especially impacted by the pandemic and the financing process for the construction of the Project has taken longer than expected. As a result, Developer has requested to extend the Commence Construction Date by one additional year.
If approved, this amendment will modify Section 401.3 of the RPA to change the Commence Construction Date to June 3, 2022. All other terms and conditions of the RPA shall remain in full force and effect.
Financial Impact
There is no expense impact as a result of this action.
Concurrence/Previous Council Action
The City Council approved Agreement 149707 (Ordinance S-44791) on June 20, 2018.
Location
30 N. 1st St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.