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HomeMy WebLinkAbout2015 Resolution No. 037• RESOLUTION NO . .!!) SERIES OF 2015 A RESOLUTION APPROVING THE SECOND ASSIGNMENT OF A REDEVELOPMENT ASSISTANCE AGREEMENT PREVIOUSLY MADE WITH LCP OXFORD, LLC, FOR THE REDEVELOPMENT OF THE OXFORD STATION TOD IN THE CTIY OF ENGLEWOOD, COLORADO TO OXFORD STATION INVESTORS, LLC. WHEREAS, the successful attraction and retention of high quality development to the City of Englewood provides employment and housing opportunities and increased revenue for citizen services which is an important public purpose; and WHEREAS, it is important for the City of Englewood to attract new sales and use tax revenue in the City and remain competitive with other local governments in creating assistance for redevelopment of under utilized and vacant land and structures existing space in the City; and WHEREAS, LCP Oxford, LLC has purchased the property and plans to demolish the former manufacturing facility of approximately 3.5 acres and build a 252 unit multifamily residential project located at 1366 West Oxford Avenue; and WHEREAS, a Redevelopment Assistance Agreement was proposed between the City and LCP Oxford, LLC, which was approved by Resolution No. 38, Series of 2013, said agreement was then assigned to CANV NC, LLC on April 15, 2013 by Resolution No. 39, Series of 2013 upon the sale of the sale of the property to that company; and WHEREAS, Paragraph 12 of the Redevelopment Assistance Agreement provides that this Agreement is personal to LCP Oxford, which may not assign any of the obligations, benefits or provisions of the Agreement in whole or in any part without the express written authorization of the City Council; and WHEREAS, the sale of the property to CANV NC, LLC did not occur, which voided the previous assignment of said agreement; and WHEREAS, LCP Ox.ford, LLC has established another company for the development of the Oxford Station TOD, PUD and wishes to assign its rights in the original agreement (Resolution No. 38, Series of2013) to the new company, Oxford Station Investors, LLC. NOW, THEREFORE, BE IT RESOLVED BY THE CTIY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. The assignment of the Redevelopment Assistance Agreement between the City of Englewood and LCP Oxford, LLC. is hereby approved. This assignment is subject to LCP Oxford, LLC and Oxford Station Investors, LLC closing on the sale of the property located at 1366 West Oxford Avenue ♦ • ADOPTED AND APPROVED this 17th day of February, 2015 . ATTEST: I, Loucrishia A. Ellis, City Clerk for tb?C~ty of Englewo~d, C·°"'olo do, hereby certify the above is a true copy of Resolution No.34 Series of 201 \..£/ ~Lo·~ ucn~ • • • • COUNCIL COMMUNICATION Date: Agenda Item: Subject: February 17, 2015 11 C ii Resolution Approving Assignment of the LCP Oxford, LLC Redevelopment Assistance Agreement Initiated By: Staff Source: Community Development Alan White, Community Development Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Council approved the Oxford Station TOD PUD on October 1, 2012. Council approved a Redevelopment Assistance Agreement with LCP Oxford, LLC on April 15, 2013 by Resolution No. 38, Series of 2013, and approved assignment of that Redevelopment Assistance Agreement from LCP Oxford, LLC to CANV NC LLC on April 15, 2013 by Resolution No. 39, Series of 2013. RECOMMENDED ACTION Staff recommends approve a resolution authoring the assignment of the LCP Oxford, LLC Redevelopment Assistance Agreement to Oxford Station Investors, LLC. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED LCP Oxford, LLC is a company established for the purpose of developing the Oxford Station TOD. Its officers are the partners of Littleton Capital Partners, the entity that made application and processed the PUD approved by Council. Oxford Station Investors, LLC is a newly-formed company established for the purpose of developing the Oxford Station TOD. The new company consists of Alex Brown Realty as an equity investor and LCP Oxford, LLC. LCP Oxford, LLC will convey the property to Oxford Station Investors, and LCP Oxford, LLC will be the operating manager of Oxford Station Investors, LLC. The previous assignment was subject to and effective upon the closing of the transaction between LCP Oxford, LLC and CANV NC LLC. The sale to CANV NC LLC did not occur. The proposed assignment voids the previous assignment The original Agreement provides that the assignment must be approved by Council . FINANCIAL IMPACT Terms of the Agreement do not change. Maximum reimbursement under the agreement remains at $326,000. LIST OF ATTACHMENTS Letter from Littleton Capital Partners Proposed Resolution • • • LITTLETON CAPITAL PARTNERS DEVELOPING EXCEPTIONAL VRM/V PROPERTIES January 27, 2015 Alan White Director of Community Development City of Enalewood Enstewood OvJc Center 1000 Englewood Parkway Enslewood, CO 80110 Subject Oxford Station TOD Re•asslgnment of Redevelopment Assistance Agreement Dear Alan: We are pleased to be moving toward a 2nd quarter 2015 sroundbreaklng on Oxford Station TOD . A key step In moving forward was securlns an equity Investor, Alex Brown Realty ("ASR.,), out of Baltimore, MD. Per customary practice, we have formed a new entity with ABR, Oxford Station Investors, LLC (.,Oxford Station Investors") that will own the property and develop the project Our current ownership entity, LCP Oxford, LLC ("LCP Oxford"), will convey the property to Oxford Station Investors and will then become a member of that new entity. As you are aware, LCP Oxford ls party to the Development Assistance Asreement (the "A1reement") for the Oxford Station TOO dated April 15, 2013. We would like to assign the rights and obligations of LCP Oxford under the AgrHment to Oxford Station Investors. It should also be noted that Littleton Capital Partners will the operatin1 manager of Oxford Station Investors, so the same company and Its principals that the City originally dealt with on Oxford Station TOD will continue to be Invested in the project and responsible for its successful execution. As you are further aware, a resolution approving the assignment of the asreement to CANV NC, LLC (.,CANV•) was adopted on April 15, 2013. Atthat time, we had Intended to sell the property to CANV. The resolution states that the assignment Is subject to and effective on the date that CANV closes on Its purchase of the property. We terminated negotiations with CANV over a year aso, and are now proceedln1 with the development ourselves In partnership with ABR, as discussed above. Therefore, ft seems that the new assignment to Oxford Station Investors should also document the termlnatlon of the CANV assignment. Thanks for your assistance with this request Please let us know Sf you need anythlna further re1ardlne the new asstsnment Sincerely, Jonathan Bush 5711 S. NEVADA STR£Er Lml.ETON, COLORADO 80120-4615 phan1 303.797.9119 fm 866-813-6990