Agenda - Council - 12/08/2020 - Laserfiche WebLink

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Staff has reviewed the Right of Re -Entry Agreement with Attorney Langel and PSD LLC is technically in default of the agreement if a full Certificate of Occupancy is not issued by January 26, 2021. Discussions with PSD LLC have confirmed that all the tenants will not be secured, and build -out completed by that date, which has lead to the request to release the Right of Re- Entry Agreement. Per the terms of the Right of Re -Entry Agreement, the City has two remedies it could pursue if a Certificate of Occupancy is not obtained by January 26, 2021 if another another course of action is not pursued: 1. Seller imposing a penalty of $100,000 against the Property. 2. Seller may re-enter and take possession of the Property. The facts relating to the investment by PSD LLC to the Property as outlined above clearly show that they did not acquire this land for speculative purposes and they have made every effort to move forward with the completion of development of the site. The Covid-19 Pandemic has hindered their ability to secure tenants, build the spaces out, and obtain the required Certificate of Occupancy by January 26, 2021. Based on these facts, and as an alternative to the remedies outlined above, Staff is recommending that the City release PSD LLC from the Right of Re -Entry Agreement for the Property. PSD LLC has operated in good faith and the City has achieved the goal of selling the land, developing the site and increasing tax base. Staff has reached out the EDA membership asking for input on this item. As of the date of this memo Chair Steffen and Commissioner Cords provided feedback in support of the staff recommendation and their comments are attached. Alternatives: 1. Adoption of Resolution #20-286 Approving Release of Right of Re -Entry Agreement (Staff recommendation) 2. In the event that a full Certificate of Occupancy is not issued by January 26, 2021 to impose a $100,000 penalty on the Property 3. In the event that a full Certificate of Occupancy is not issued by January 26, 2021, to re-enter and take possession of the Property 4. Something else Funding Source: This item is being covered under Staff duties Recommendation: Staff recommends adoption of Resolution #20-286 Approving Release of Right of Re -Entry Agreement Action: Motion to Adopt Resolution #20-286 Approving Release of Right of Re -Entry Agreement; subject to City Attorney review. Site Location Map ACTION - Resolution #20-286 DRAFT Release of RORE Agreement Request for Release Letter PSD LLC EDA Responses Attachments Form Review Inbox Reviewed By Date Tim Gladhill Tim Gladhill 12/02/2020 03:16 PM Kurt Ulrich Kurt Ulrich 12/03/2020 11:53 AM