Housing Successor Agency
MEETING DATE: 2/22/2017
TITLE:
Title
Purchase Agreement for the Downtown Mixed Use Project
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FROM:
Curt Watts, Economic Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council, as the Housing Successor Agency to the Former Redevelopment Agency, authorize the City Manager to execute a Purchase and Sale and Escrow Instructions Agreement between Cathedral Canyon Development, LLC and the City of Cathedral City as the Housing Successor Agency to the Former Redevelopment Agency of the City of Cathedral City.
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BACKGROUND:
In August 2013 the Housing Successor Agency to the Former Redevelopment Agency of the City of Cathedral City ("City") approved a Property Transfer Agreement ("Agreement") with Thermal Land, LLC for the future sale of an approximate two-acre site located at the southeast corner of East Palm Canyon Drive and West Buddy Rogers Avenue for development of a mixed use project. Per the Agreement, the site was to be developed primarily for housing purposes with a percentage of the units to be available to, and occupied by, moderate income households. The Agreement has been amended multiple times to extend the deadlines for close of escrow and completion of the project as defined in the amended Agreement. The City approved an assignment of the Agreement from Thermal Land, LLC to Saxony Living, LP ("Saxony") on November 18, 2014 and an assignment of the Agreement from Saxony to GreenSpring Capital, Inc. ("GreenSpring") on October 26, 2016. The Agreement was subsequently assigned to GreenSpring's single-asset entity Cathedral Canyon Development, LLC ("CCD") on November 30, 2016. Simultaneous with the assignment to CCD, Amendment No. 6 to the Agreement was approved to incorporate certain modifications to better position the Project for future success and to re-establish the timelines necessary to complete the entitlement process, acquire building permits, and provide proof of const...
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