Title
Scaleybark Development Agreement Amendment
Action
Action:
A. Approve the third amendment to the General Development Agreement and the seventh amendment to the Purchase and Sale Agreement with Scaleybark Partners, LLC, and
B. Authorize the City Manager to execute any additional documents necessary to implement the amendments.
Body
Staff Resource(s):
Tina Votaw, CATS
Todd DeLong, Neighborhood & Business Services
Explanation
§ Scaleybark Partners, LLC is working on the design and construction of a transit-oriented development (TOD) on approximately 25 acres it owns west of the Scaleybark Light Rail Station. The TOD site includes property that was conveyed to Scaleybark Partners, LLC by the City through a Purchase and Sale Agreement, as amended.
§ The parking lot operated by CATS that serves the Scaleybark Light Rail Station occupies a portion of the TOD site. The CATS parking lot is operated as a temporary lot with the intention of the City and Scaleybark Partners, LLC that permanent CATS parking spaces be integrated into the overall TOD. The cost of the permanent CATS parking spaces will be borne by Scaleybark Partners, LLC. The Purchase and Sale Agreement, as amended, anticipated delivery of the permanent CATS parking spaces by February 2016.
§ Scaleybark Partners, LLC envisions that the TOD will be developed in two phases. The location of the permanent CATS parking will be completed and designed as part of the second phase of the TOD. The design of the second phase of the TOD is underway but will not be completed in time to deliver the permanent CATS parking by the deadline of February 2016.
§ Scaleybark Partners, LLC has requested an extension of the deadline to deliver the permanent CATS parking by two years from February 2016 to February 2018.
§ Staff recommends approval of the time extension through a seventh amendment to the Purchase Sale Agreement and a third amendment to the General Development Agreement (both documents need to be updated to reflect the new date) to extend the deadline from February 2016 to February 2018.
§ The extension to complete the permanent CATS parking does not impact CATS customers as CATS will continue to use the existing parking lot at the Scaleybark Station until such time as the permanent CATS parking is available.
§ To date, Scaleybark Partners, LLC has accomplished the following:
- Completed a master-planning process that envisions development of the TOD in two phases totaling 300,000-400,000 square feet of office space; approximately 120 hotel rooms; over 500 multi-family and townhome units, which includes 80 units of affordable housing serving households earning 60% ($40,320) and below the area median income; and approximately 75,000 square feet of retail.
- In terms of the first phase of the TOD:
§ Completed the installation of the required linear park and the streetscape improvements including lighting, landscaping, and a plaza along South Boulevard.
§ Implemented an aggressive marketing campaign including both video and printed materials and retained a local broker to execute a full-scale marketing plan.
§ Constructed, in cooperation with the City, a master storm water retention pond.
§ Completed pre-development of approximately 15,000 square feet of retail and 50 townhome lots. Letters of intent are under negotiation currently to implement both of these elements. Additionally, negotiations are nearly complete with a hotel and approval of that element is projected in late 2015.
Background
§ On July 23, 2007, the City Council approved a Purchase Sale Agreement for the sale of approximately 16 acres of land along South Boulevard for $6,985,000 to Scaleybark Partners, LLC. The City and Scaleybark Partners closed on the property on February 29, 2008.
§ To-date, the City Council has approved six amendments to the Purchase Sale Agreement which:
- Two amendments extended the buyer’s examination period and the closing date.
- One amendment adjusted the final purchase price to $5,185,000 upon discovery of detrimental subsurface conditions during due diligence.
- Three amendments extended the deadlines for the completion of the linear park, streetscape, and permanent parking facility for CATS.
§ There is no change to Scaleybark Partners, LLC’s remaining deadline of December 31, 2017, to identify a financing plan for 80 affordable housing units.
§ In cooperation with the Charlotte-Mecklenburg Housing Partnership, three applications seeking low income tax credits have been submitted to the North Carolina Housing Finance Agency for consideration of a low-income housing tax credit award. Due to the competitive nature of the tax credit program, these applications have been unsuccessful. However, Scaleybark Partners is evaluating a different financing approach to implement the affordable units and will continue to coordinate and consult with the City pursuant to the Purchase Sale Agreement.
Fiscal Note
Funding: Not Applicable
Attachments