Marina Park PP 06 24 204 Companion Items
R7-A (1-4)
First Reading –June 24, 2020
The Agenda Items
FIRST READING
1. The Development Agreement
2. The Sale of Residential Parcel (Referendum)
3. The New Marina Lease (Referendum)
4. The Vacation of the City’s Alton Right-of-Way
5. Proposed LDR Amendments
The Project Residential Tower
-Height: 385 Ft
-Units: 60
-SqFt. 275,000
New Marina Building
-45,000 Sqft.
-Restaurant, Retail,
Marina uses
Ground Level Park
-1 Acre
-Resiliency
Improvements
Public
Benefits
Upgraded new
retail/restaurant/office
tenant mix
New Marina Facility,
at no cost to City
Resiliency through
capital improvements
focused on
sustainability
1-acre park for the
South of Fifth neighborhood
Substantial New
Revenues for the City
Development Agreement
•Contains all the Project restrictions
•275,000 sq. ft. for residential
•45,000 sq. ft. for retail, restaurant, office, and marina uses
•385 feet maximum height
•Up to 60 residential units
•Short term rental restrictions
•1 acre park and resiliency improvements
•Provides for vacated ROW to be joined as part of Development Site
•Provides for a 12-year term subject to extension for force majeure & City delays
Development Agreement (cont’d)
•Includes schedule for performance of entire Project
•Limits transfers of Developer prior to obtaining Final CO
•Provides contingencies for legal challenge to project
•(i.e. challenge to DRB approvals or lease)
•Reimbursement of City’s transaction costs
The Sale of Residential Parcel
(contingent on voter approval)
•$55 Million Cash payment to City for sale of the “Residential Parcel”
•Additional $15 million in capital improvements for Area 1 (memorialized in the New Lease_
INSTALLMENT PAYMENTS:
•$5 million deposit due by January 31, 2021 (to be applied at Closing, by Mar. 30, 2021)
•$5 million due on or before January 1, 2022
•$5 million due on or before September 30, 2022
•$40 million due within 90 days following DRB approval, outside date of 54 months
•Installment payment evidenced by a promissory note and first mortgage
Schedule of Performance/Timeline
•Closing: On or before March 30, 2021
•DRB application: Within 6 months of Effective Date
•Final DRB Approval: Within 54 months of Effective Date
•Final Installment Payment the earlier of (i) 90 days after DRB approval; or(ii) 54 months from Effective Date
•Commencement of construction: 18 months after DRB approval
•Completion of Construction: 4 years after Commencement of Construction
•12 year overall duration of Development Agreement
Above dates subject to tolling for lawsuits (for maximum of 42 months) and force majeure events
The New Lease
(contingent on voter approval)
•99-Year Term
•Effective January 1, 2022 (contingent on closing of PSA)
Improved lease terms for the City
•Increase in Minimum Guaranteed rent from $320,000 to $1.9 Million
•(with annual CPI adjustment)
•Percentage Rent (with annual CPI adjustment):
•$0.04 per gallon of gasoline and diesel fuel
•35% of gross parking fee revenues
•10%of all other Gross Receipts
The New Lease (cont’d)
•$50 M in Capital Improvements over initial 30 Years
•$35 M Area 2 improvements over 30 years
•Additional $15 M in Area 1/2 improvements over initial 20 years
•Enhanced maintenance and operation obligations and standards
•Construction of a New Marina Facility
•Lessee obligated to construct an “alternate marina facility” if the Project
approvals cannot be obtained and the New Lease remains in effect.
Vacation of the Alton Right of Way
•Vacation of western half of Alton Road abutting the City-owned parcels along 300-400 Alton Road (ROW Area)
•25,500 sq. ft.
•Fee ownership to revert to City (as owner of the abutting parcels) upon vacation of ROW Area
•ROW Area to be joined with adjacent abutting parcels by covenant in lieu of unity of title
•25,500 sq. ft. to be incorporated as part of the Project as a unified development site
•Vacation would be subject to and contingent upon approval of voters of the New Lease and Sale of Residential Parcel
LEGISLATIVE AMENDMENTS
•Amendments to Public Facility (“PF”) designation in the Comprehensive Plan
•Permit public-private marina redevelopments
•Require significant publicly accessible green open space
•Permit retail sales and service establishments, commercial uses including business and professional offices, eating and drinking establishments, apartment residential uses, and recreational uses
•Amendments to CPS-4 district regulations in the LDRs
•Only applicable to public-private marina mixed-use redevelopments
•Increase maximum height to 385 ft
•Increase height for allowable height exceptions
•Amend minimum setbacks
•Permit non-use screening of parking floors on all frontages other than Alton Road
Open Items for Second Reading
OWNERSHIP/CONTROL OF
PARK
AIPP ALTERNATE REPLACEMENT
FACILITY