Discussion and possible action to amend the original agreement approved by Council on July 5, 2022, by adding two land lease agreements, one purchase and sale agreement, and providing corrections to language in the original agreement.

The mission of this project is to get 3 premier chef driven restaurants funded, designed, built, and operating at Stadium Point within 18 months. The customer, Common Bond, has been seeking to develop these premier restaurants.  The current agreement has several issues and problems, including language that violates the gift clause, an incomplete purchase and sale agreement, an incomplete parking lease, and an incomplete lease for the city tract.  The property currently does not produce any revenues for the City.  The amended agreement addresses and solves all of these issues.

The solution keeps the placemaking requirement as a public asset.  Then, when the public infrastructure improvements are completed, lease the property back to the customer for their exclusive use.  This accomplishes a number of things:

1. Accelerates the development of the project.
2. Accelerates the development producing sales tax revenues for the City.
3. Accelerates the development producing property tax revenues for the City.
4. Creates a new revenue stream in the form of land lease payments to the City.
5. Creates a new revenue stream in the form of parking lease payments for the City.
6. Allows for reimbursement of an arbitrary, City imposed public infrastructure requirement.
7. Removes property tax requirement for the customer, for the “football.”
8. As per the license agreement, requires the customer to provide all maintenance and operations for a City owned asset.

The City and the Developer entered into the current agreement (original agreement) on or about July 5, 2022.  The original agreement has language that violates the gift clause, does not have the purchase and sale agreement, does not have the parking lease, and does not have the city tract lease.  

Approve the amended agreement, which includes the purchase sale agreement, the parking lease, and the city tract lease.

Not approve the amended agreement, which includes the purchase sale agreement, the parking lease, and the city tract lease.

The amended agreement provides for the following financial benefits to the city:

1. Accelerates the development of a parking lot into revenue producing property.
2. Provides revenues via the sale of public property.
3. Provides sales tax revenues for the City.
4. Provides property tax revenues for the City.
5. Creates a new revenue stream in the form of land lease payments to the City.
6. Creates a new revenue stream in the form of parking lease payments for the City.
7. Creates new jobs for the City.