Title
Resolution to Approve the Modification of Deed Restrictions Placed on 350 S. Fifth as a Condition of Sale of the Formerly City-Owned Property to Fifth Fourth, LLC (8 Votes Required)
Memorandum
On October 17, 2013, the City entered into a Purchase and Sales Agreement and Rider (with subsequent amendment on December 26, 2013) for the sale of 350 S. Fifth to Fifth Fourth, LLC. Transfer of ownership was conditioned on a number of restrictions including a reversion of title in favor of the City if the Purchaser fails to obtain a final certificate of occupancy for a building consistent with Purchaser's Promised Use prior to January 1, 2018 (this date was later administratively extended to April 1, 2018 in accordance with the terms of the restrictions). The parties agreed that the negotiated and approved restrictions would run with the land and apply to any future purchaser. Fifth Fourth, LLC acquired ownership of the property on April 2, 2014. To date Fifth Fourth, LLC has not submitted plans to the City or initiated performance on the agreement or development of the site.
Fifth Fourth, LLC recently entered into an option agreement with The Habitat Group LLC ("Habitat") to acquire the property with the goal of developing the property into a market rate apartment building with commercial premises on the first floor and substantial landscaped open space, including a plaza and fountain. This is the second such agreement between Habitat and Fifth Fourth; Habitat determined not to move forward with their original option agreement after cursory investigation last year. However, after renewed discussions with the City, Habitat and its development team partner (CA Ventures and Hughes Properties) are requesting the City agree to remove or amend the existing Covenants/Deed restrictions. The development team identifies the restrictions as an impediment, limiting their ability to finance and develop the property. Attached is a letter dated September 20, 2016 from...
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