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Home My WebLink About2013 Resolution No. 039RESOLlJflON NO. _M_ SERIES OF 2013 A RESOLUTION APPROV.NG THE ASSIGNMENT OF THE LCP OXFORD, LLC REDEVELOPMENT ASSISTANCE AGREEMENT TO CANV NC, LLC, AN AFFILIATE OF FORE PROPERTY COMPANY. WHEREAS, the Englewood City Council approved LCP Oxford, LLC PlaMed Unit Development tor the redevelopment and reuse of the termer Martin l'lasucs side by the passage of Resolution No. 83, Series of 2012 ; and WI IEREAS, City stl.l i aegotiatcd and proposed a Redevelopment Agreement with LCI' Oxford, LLC; and WHEREAS, the Englewood City Council has adopted that Redeveloprnen , Assistance Agreement with LCP Odord, LLC; and WHEREAS, paragraph 12 of the Redevelopment Assistance Agreement r rovi Jes that this Agreement is personal 10 LCP Oxford, which may not assign any of the obligations, benefits or ;,revisions of 1he Agreement in whole or in any pnrt wi :hot111he expre~s written authori7J!tio,, of the City Council. Any purported assignment, tninsfcr, pledge, or cncumbrunce made without sucl, prior written auLlu.>rization sl1ull be ,·uid; anJ \VHEREAS, Cily staff has been infonned that LCP Oxford, LLC wishes to sell its property which is the subject of the PlnMed Unit Development (PUD) and the Redevciornient Assii:nment Agreement to CANV NC, LLC, nn affiliate of Fore Property Company with oil rights und obligations of LCP Oxford, LLC including the redevelopment assistance uwcemcm; uml WHEREAS . CANV NC, LLC intends 10 move forward with the project as pre1iously approved under the terms of the Planned Unit Development, which runs with the property. NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL 0:7 THE CITY or ENGLEWOOD, COLORADO, AS FOLLOWS : Sslai2nJ. 1l1e City Counc il of the City of Englewood hereby approves the assignment of the LCP Osford , LLC Rcdcvclopmcnt Assistance Agreement to CANV NC, LLC subject lo and effective on tile date of cir.sing or the transaction between LCP Oxford, LLC and CANV NC, LLC. ADOPTED .-\ND APPROVED this 15th dny of Ap:il, 2013. • COUNCIL COMMUNICATION DATE : AGENDA ITEM: SUBJECT: Ass ignment of ReQ<"•dlr,pment II c II Assistance Agre i:'m erlt tc. CANV NC, LLC Company INITIATED BY: STAFF SOURCE : City Mduag er'S Onice D•rre11 H o llingsworth, Ec on omic D evelopment Manager - COUNCIL GOAL AND PREVIOUS COUNCIL ACTION: Council approved L .tleton Capital :'artner 's {LCPJ Planned Unit Development for the r edevelopment and reuse ol the fo rmer Martin Plastics si te on October 1, 2012. Additionally, Ci:y C ouncil discussed th~ prnposerl Redev elopment Ass is tan ce Agreement at the Sept ember 10, 2012 and February 4, 2013 Executi ve Sessions and there was c onsens~s to bring the proposal for consideratio n al an uprnming City Council meeting. tnr.,ewood's Compreh ens ive Plan states a goal of community revitalization and Increased housing opportunities. The Reiall Analysis and Site D evelopment Asses sment als o recomm ends the development of hou.ing to support e•lsting and new retail ers . RECOMMENDED ACTION: Staff recommends th at Council adopt the attached resolution authorizing the transfer of the redevelopment ass istan ce agreement from LCP Oxford, LLC and its management entiti es to CANV NC, LL(", an affiliate of Fore Property Company . CANV 'IC, LI.C will develop th e prnpose d 2.~1 1Jni 1 multi-family residential project nea r the Oxford ligh t Rail Station. BACKGROUND, ANALYSIS, AND ALTERNATIVES IUtNTltll'U: Citv staff ha s he en informed by LC:P of the sale oi their prop erty at Oxfo rd and Santa Fe, known as \,• · ·ormer Martin Plastics site. Attached is a letter from LCP expla ining th.,;, pendinB sale with C.' •' NC, LLC , with all rights and obligations of LCP including the redevelopment assis tance ag .. .-ment that City Council is also scheduled 10 consldl!r curing the April 15, 201 3 rne eti11g. CAN NC, LLC intends to move forward with the project as previously approved under the terms of the PUD, whkh run s with the prnperty. In orrl•r In complete the sale, LCP is asking that the City approve the assignment of the redevelopment assistance agreement to CANV NC, llC. forP i< a f11ll-servlce national real eslale company thal uuilds and 111Jnage• muhifamily re•idenlial housing across the United States, Including !heir firs! Dtmv~r project at 1000 Soulh Broadway in Denver. With over 30 years in business, Fnre has amassed a S 1 btlilon portfolio and manages 18,000 residential units 1n 77 cnmm11n P.,r ~ FINANCIAL IMPACT: Project impacts remain identical to th e L.:I' project LIST OF ATTACHMENTS: LCP Letter Requesting Assignment of the Redevelopmenl Ass i stan ce Agreemenl to CANV NC, I.LC Proposed Resolution • • • • LITTLETON CAJ•ITAL PARTNERS OEVFLOPING E ,lfCEPTIO!'t'AI. URBAN PHtJPl:..RTIES April 10, 2013 Mika Flaherty Deputy City Manager City of Englewood Englewood Civic Center 1000 Englewood Parkway Englewood, CO 80110 Subject : Oxford Station TOO Assignabilijy of Redevelopment .\ss lstance Agreement Dear M ike : On behalf of our company, let me fist say that we hav• appr•clatad the professionalism , dlllg•nc• and ease of working with the City of Englewood Counc il and staft on this project to date . We have completed a PUD and PUO Site Plan that will allow for substantial investment and will dramatically improve the former Martin Plastics site . The approved plan not only bettt!r leverages a major asset at the Oxford light rail station, but will also serve as a catalyst for future Investment in the surrounding area . To make the project flnanclally viable, we have cor.ie to agreement on a set of economic i nr.entlves that are documented In a draft Redeve lopment Assistance Agreement . For the Oxford Sta!ion TOO project to move forward , we request that this agreement be assignable to another party for the reasons outlined be low. When Littleton Capital Partner, first acqu ired the Martin Plastics Industrial property, It was with the full intention of gaining entitlements, raising capital and then developing Oxford Station ourselves. With a total development budget of approximately S35 million, our capital structore in·,olved both debt and e~ulty . Early on, we readi :y :i e<ured proposals from se\eral banks for debt terms . In the process of ra isins equity , however, an inleres• .!d party emerged , Fore Property Company, :hat has in-houst development capab illt,es and therefore ottered to acquire t he site from us and deve lop ,t themselves . With some hesitation due to the time and effort we had Ir.to it and our de si re to develop the projer •. w e ul~imately decided that accepting Fnu,'s offer to purcha ~t~ thP p~operty wa~ thP. best 01-1tion . Among other reasons, we ;?lccted to proceed with For~ due to their 10.~i track record of developing mu lti-family projects and their current activity In the Denver market, speclficollv anothe .-TOD ~reject on t he ~•nt• f• corridor. Over the last 30 years, ForP. has developed over 77 communities comprising more than 18,000 units. They are currently under const~Jction on the 1000 S. Broadway project at Broadway and Mississippi , a 260-unit project near the Broadway light rail station . We are presently under con tr•'"'·• and Fore is completing Its due diligence. If all goes as intended, fore should close In the late second or early third quarter of this year. Fore intends to continue with our desiIn direct inn and to engage our arch ited. Humphries Poli, to complete t he des ign , They have also reviewed and understand l'."le PUO and PUO Site Plan, and have siven no indication th.at they are planning to make revisions thal would trigger amendments to these documents . Fo,e 's underwriting has assumed and their closing on the property is conditioned on them effec•ively •stepping into our 5711 s. fl.'EvAD A snw 1 ·m.EToN , Cot..ouroso120-46IS phone _;o3 .7Q7 .9119 fox 16~113-6990 hoes ", lnc ludlns the benefits .,;,I obli&ations of the redevelopmont m lstanco packaRO, hone• the need • for ass ignabUity of the Rcdov oio,.11,ent A,sistancc Aarocment. For this project, the Fore entity that is party to agreements and the pr cpused asslsnee of the Redeve lopment Assistana, Agreomont is CANV NC, LLC . Both Fore Prop~ny Cornfany and CANV NC, LLC are 100% owned by Richard Fore, the founder of tho compa ny . We look forward to continuing !•> . ..,,rk with 1•ou as tho pro)ocl trans,t ions from us to Fore . Please lot us know if you ttavc any further quNt:i ons about our situation with Fore or our request for :isslgn~bility. Sincoroly, ~~~-~--:, Jonathan Bush • •