| HX_Guy |
Jun 25, 2009 6:19 PM |
This is good...very good...but it better not fucking back fire and end up in the demolition of the Luhrs Central Building and then nothing happens. That should be part of the agreement...that nothing shall be demolished or touched until financing is secured and an agreement with a hotel brand is made.
Quote:
ORDINANCE S-36333 -
REDEVELOPMENT AGREEMENT WITH HHLUHRS, LLC
Request to authorize the City Manager, or his designee, to enter into a redevelopment agreement (RDA), leases, easements, and other agreements as necessary (collectively, the Agreements) with HHLuhrs, LLC, or its City approved nominee (collectively, Developer), and for the City Controller to accept and disburse funds for the development of an approximate 315-room select-service/ extended-stay hotel at the northwest corner of Madison Street and Central Avenue (the Property).
The Developer, the owner of the Property, in response to the City's request for mixed-use development proposals, will develop an approximate 315-room select‑service/extended-stay hotel at the southeast corner of the Luhrs block. The limited service hotel will include various amenities, including a bistro bar, no more than 8,000 square feet of meeting facilities, a fitness center, and a swimming pool. The hotel will include a level of furniture, fixtures, finishes, amenities, services, and other characteristics consistent with Courtyard/ Residence Inn by Marriott or Hilton Garden Inn/Homewood Suites or other similar dual brand hotels.
Under the proposed business terms, the Developer shall pay a performance deposit, in the amount of $50,000, payable fifteen days after Council authorization (Authorization Date) of the terms. Within six months from the Authorization Date, the Developer shall enter into an RDA with the City. Within twelve months from the execution of the RDA, the Developer shall provide an executed franchise agreement with a major hotel brand. Developer will be required to commence construction on the Hotel Project within twenty-four months from the Authorization Date and obtain a Certificate of Occupancy (C of O) for the Hotel Project within twenty-four months from the commencement of construction. A twelve-month extension to commence construction may be granted upon City review and approval of a written request from the Developer that includes a current market study.
Upon the satisfaction of certain requirements, including the timely submission by Developer and City approval of a current environmental report for the Property, the Developer will convey the Property to the City at no cost. The City will enter into a thirty-five year lease with the Developer with lease payments beginning at $5,000 in the first year and increasing to $355,000 in year thirty-five, and pursuant to current state law, the improvements will be eligible for Government Property Lease Excise Tax (GPLET) treatment with the first eight years of GPLET abated. At any time during the term of the lease, the Developer will have the option to repurchase the property for $50,000. All proceeds from the lease, repurchase, or sale of the leasehold shall be deposited in the Downtown Community Reinvestment Fund. Additionally, the City will require a Payment in Lieu of Property Tax from the Developer until the final C of O is issued for the Hotel Project.
The Developer is not permitted to sell, assign, or otherwise transfer its interest in the property or leasehold interest without prior approval by the City unless the transfer is to an affiliate of the Developer. Upon the first sale or transfer of its interest in the property and/or the leasehold interest, the Developer shall make payment to the City as follows: years 1 - 5 $300,000; years 6 - 10 $250,000; years 11 - 15 $200,000; years 16 - 20 $150,000; and years 21 - 35 $100,000. Developer will be reimbursed up to a maximum of $500,000 for eligible streetscape improvements that are installed within public right-of-ways that are adjacent to the Luhrs block. The City will provide the reimbursement on a matching expense basis. Developer is required to comply with all provisions of Title 34, Arizona Revised Statutes for the procurement and completions of the eligible streetscape improvements. The agreements may contain such additional terms and conditions deemed necessary or appropriate.
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