Fort Walton Beach Council agenda — 2-25-14--regular — reading text

a review of the existing agreements, memorandums and orders, it was agreed upon by the Ft. Walton Development Partners, LLC and Staff that it would be more appropriate to nullify all existing agreements, memorandums, and orders and begin with a new Development Agreement. This decision was based on the inability to make the new request and the original agreement comply under the new direction of the project. 2. 4. The project is located at 223 Miracle Strip Parkway SE and 203 Perry Avenue SE Page 1 of 3  Parcel ID No.' s 24- 2S -24- 0300 -000A -0070, 24- 2S -24- 0300- OOA -006B, 24- 2S- 24- 0030- 000A- 001A, & 24 -2S- 0300 -OOOA- OO1B). The project will consist of a mix of uses including residential, restaurant, retail, office, and hotel for a total of approximately 116, 000 square feet plus a parking garage ( approximately 156, 000 square feet). 2. 5. The major proposed terms and conditions of the new Development Agreement are as follows: 2. 5. 1. The proposed Agreement will nullify and render void all terms and conditions of the previously approved Development Agreement. It will also nullify and render void the previously approved Development Order ( approved on August 10, 2007), Memorandum of Agreement ( approved on August 10, 2007) and Conditional Use Order ( approved September 10, 2010). The purpose is to accommodate the revised project scope based on tenant demands and other factors. As stated in the newly proposed Agreement, the Developer will apply for a new Development Order and associated building permits, which must be consistent with the City' s 2011 -2021 Comprehensive Plan and most recent version of the Land Development Code, as well as all other applicable federal and state laws and regulations. 2. 5. 2. The proposed Agreement does not commit the City to purchase any parking spaces. Instead, the Agreement proposes to transfer the adjacent City property to the Developer, who will then provide and make available at least 119 public parking spaces, which is the number of public parking spaces currently available on the City property. The Contractor will also make the necessary changes to the remaining City parking lot property to return it to a functional parking lot. 2. 5. 3. There is no condominium arrangement proposed in the proposed Agreement. Instead, the parking spaces will be made public through a parking agreement and perpetual public easement. 2. 5. 4. In the proposed Agreement, the Developer may apply for grant assistance through the CRA, but approval is not guaranteed. 2. 5. 5. Since the Memorandum of Agreement was made part of the Development Order approved on August 10, 2007, and the Development Order from 2007 is being voided under the new Agreement, the Development Agreement does not need to follow the terms of the Memorandum of Agreement from 2007. 2. 6. The Developer will own, manage, operate, and maintain the parking facility at the Developer' s expense in perpetuity. 2. 7. The Developer must apply for a Development Order and associated building permits within six ( 6) months of City Council approval of the Agreement, obtain a Development Order and building permit within twelve ( 12) months of City Council approval, and complete the project within thirty ( 30) months of City Council approval of the Agreement. 3. FINANCIAL INFORMATION: Page 2 of 3  3. 1. The proposed Development Agreement does not obligate the City to commit any immediate funding to the development. The City' s contribution includes transfer of the City property upon issuance of a Certificate of Occupancy for the parking facility and shell development at an approximate assessed value of $277, 460. 4. RECOMMENDATION: 4. 1. Staff respectfully recommends approval of the attached Development Agreement between Ft. Walton Development Partners, LLC and the City of Fort Walton Beach for construction of the Landmark Center development. ATTACHMENTS: Development Agreement for Landmark ( PDF) Sketch of Exhibit B ( PDF) SIGNATURE BLOCK: Tim Bolduc Completed 02/ 19/ 2014 11: 47 AM Carole Jones Skipped 02/ 19/ 2014 10: 00 AM Finance Completed 02/ 19/ 2014 1: 16 PM City Attorney Completed 02/ 19/ 2014 1: 54 PM Carole Jones Completed 02/ 19/ 2014 1: 58 PM City Manager Completed 02/ 19/ 2014 2: 07 PM City Council Pending Page 3 of 3  DEVELOPMENT AGREEMENT between CITY OF FORT WALTON BEACH, FLORIDA and FT. WALTON DEVELOPMENT PARTNERS LLC This Development Agreement ( "Agreement ") is made and entered into as of 2014, by and between the City of Fort Walton Beach, a municipal corporation of the State of Florida ( "City ") and Ft. Walton Development Partners LLC, a Florida limited liability company ( " Developer ") for the following uses and purposes: A. City and Developer have previously entered into the Development Agreement Dated April 29, 2013 ( the " Agreement "). City and Developer desire to nullify the previous Agreement in its entirety and proposed a new Agreement with new terms as hereinafter set forth. The Site Plan for Landmark Center previously approved by City Council on August 10, 2007 and all orders since approved for the Landmark Center are hereby nullified and void as well as the Memorandum of Agreement associated with the 2007 Development Order. Recitals Developer owns certain real property located within the City of Fort Walton Beach, Florida, that is described in Exhibit A ( "Developer Property"). The Developer Property is located at 223 Miracle Strip Parkway SE and 206 Perry Avenue SE, Fort Walton Beach, Florida, and identified as Okaloosa County Parcel ID Nos. 24- 2S -24- 0300 -000A -0070, 24- 25 -24- 0300 -OOOA -006B, 24- 2S -24- 0300- 000A -001A and 24-2S- 24- 0300 -000A- 001 B. 2. City owns certain real property located within the City of Fort Walton Beach, Florida identified as Okaloosa County Parcel ID Nos. 13- 25 -24- 1910- 0571 -0030 ( 0.02 Acres), 24- 25 -24- 0300 -000A -0030 ( 0.07 Acres), 24- 2S -24- 0300- 000A -OO1C ( 0. 39 Acres); 24- 24- 0000 -0104 -0010 ( 0.25 Acres); 24- 2S -24- 0000 -0112 -0000 ( 0.40 Acres), for a total of approximately 1. 13 acres. The City Property is currently used as public parking with a total of 119 parking spaces available to the public. The portion of this City property to be transferred to the Developer is described in Exhibit B ( "City Property "). 3. Both properties have a Future Land Use designation of Mixed Use ( MU) and are both zoned MX -2 ( Mixed Use High Density), which permits multi -family residential and commercial uses, including, but not limited to, office, retail, restaurant, and hotel. The maximum allowable density is 30 dwelling units per acre ( base) and 45 dwelling units per acre ( with bonus provisions). The maximum allowable floor area ratio is 2. 0 ( base) and 3. 0 ( with bonus provisions). The maximum allowable height is 120 feet above mean sea level, plus adjacent height compatibility standards. 4. Developer desires to construct a mixed use project on the Developer and City Property, to be known as " Landmark Center" ( " Development "), which will contain retail, restaurant, hotel, office, and residential uses. Developer will apply for a new development order and 0 ..• . •...  associated building permits in accordance with the City' s current Land Development Code prior to commencement of development activities for the project. The Development will be consistent with the City' s latest version of the Comprehensive Plan and Land Development Code. 5. Developer and City view Landmark Center as a catalyst to the redevelopment of the City' s Downtown and recognize that it is in their respective best interests, and in the best interests of the citizens of Fort Walton Beach, Florida, to coordinate their efforts. Therefore, this Development Agreement and the conditions contained in it are necessary for the City' s economic revitalization and growth, and the health, safety, and welfare of the citizens. 6. The Development will be served by existing sewer utilities provided by the City and existing roads, including U.S. Highway 98, Perry Avenue SE, First Street SE, and Ferry Road SE. Stormwater management complying with the City' s Land Development Code requirements will be provided by the Developer. A new water main is required to serve the Development within the western right -of -way of Perry Avenue SE. The Developer will install the new water main, and a portion of the water impact fees will be credited towards the water main installation. 7. The Developer shall obtain all permits required by Federal law, Florida law, and the City of Fort Walton Beach Code of Ordinances. Wherefore, the parties, for and in consideration of ten dollars ($ 10. 00) in hand paid each to the other and of the mutual covenants and agreements contained in this agreement, intend to be legally bound to the following terms and conditions. Project Construction and Property Transfer 9. Developer shall verify and identify all underground utilities and easements of record on the property described in Exhibits A and B. Developer shall receive from the appropriate entities owning those utilities and holding the easements any approval and assistance to relocate the utilities and easements as may be necessary to develop Landmark Center. Developer shall obtain all necessary easements required for the Project and associated parking subject to the approval of the City. 10. Project Timeline The Developer shall apply for a Development Order and Building Permit within six ( 6) months of the approval date of this Agreement by City Council and shall obtain a Development Order and Building Permit within twelve ( 12) months of the approval date of this Agreement by City Council. The Development shall be completed within thirty (30)