City Council Information Form DATE: 03/02/2016 ASSIGNED STAFF: Mark Dunning DEPARTMENT: Administration TYPE OF FORM: Presentation Form No.: 5318 APPROVALS: dept: MDUNNING 03/02/2016 ISSUE/REQUEST: Presentation and Consideration of Modifying and Assigning the Exergonix Development Agreement to Westcott Investment Group. KEY ISSUES: Mr. Steve Singh, Vice President Executive Director with the Westcott Investment Group and associated development team is requesting the City Council to consider modifying and assigning the development agreement to Westcott Investment Group. Aaron March with the White Goss Law Firm along with associated development team members will be providing a presentation to the City Council to outline and explain the proposal, and is requesting the City Council provide feedback and direction to City staff and the development team to continue to develop an assignment agreement for the City Council to consider at their March 31st meeting. PROPOSED CITY COUNCIL MOTION: I move to direct staff to prepare an assignment agreement and necessary modifications to the development agreement and present to the City Council for consideration at the March 31, 2016 City Council meeting. BACKGROUND:(including location, programs/departments affected, and process issues) In September of 2011, the City and Exergonix, Inc. entered into a Development Agreement to promote economic activities ($50M in construction of green technology uses and the creation of 150 qualifying jobs) on or before September 1, 2016 within the south M 291 Corridor. To date, the investment and creation of jobs has yet to materialize. Westcott Investment Group is requesting to revise the development agreement performance measures and assign the agreement to Westcott Investment Group to move forward with their proposed development. IMPACT/ANALYSIS: TIMELINE Start: Finish: OTHER INFORMATION/UNIQUE CHARACTERISTICS:
STAFF RECOMMMENDATION OTHER BOARDS AND COMMISSIONS ASSIGNED: Not Applicable DATE: ACTION: COUNCIL COMMITTEE ASSIGNED: Not Applicable DATE: ACTION: List of Reference Documents Attached 1. Presentation 2. Exergonix Development Agreement 3. Memorandum of Amendment
City of Lee's Summit, Missouri City Council March 10, 2016
WHY ARE WE HERE? History of Development Agreement Exergonix efforts to develop property Decision to bring in development partner Asking City to approve assignment of development rights
TEAM INTRODUCTIONS Westcott o Steve Singh o Retail Person o Office Person o Industrial Person Local Team Daren Fristoe Jon Plaas White Goss Klover Architects o Danny Potts BHC Rhodes o Ryan Elam
WHO IS WESTCOTT? Principals are associated with Diede Construction Diede Portfolio: o TOTAL s.f. built: 14,991,000 (approx.) o TOTAL s.f. under Management: 14,991,000 o TOTAL value under Management: $2.584 Billion
HALLMARK PROJECTS Commercial/Retail o Marriott LAX, approx. 480,000 s.f. (1 of 12 Marriotts owned) o Valencia Hotel, Santana Row, approx. 180,000 s.f. (funded, built and manage) o The Block SFO, retail approx. 11,250,000 s.f. of mixed use retail, restaurant, cinema, etc. (self funded, built and manage) o The Grove Los Angeles, mixed use, approx. 600,000 s.f. (funded, consulted) Industrial/Office o San Jose King Road, industrial approx. 117,000 s.f. (self funded, built and manage) o Silicon Valley River Park Plaza, office building approx. 303,000 s.f. (self funded, built and manage) o Almaden Park Plaza, industrial, 112,000 s.f. (self funded, built and manage) Residential o Americana at the Brand, 2 acres, 100 condos, 238 apartments (self funded, consulted) o Misora, Santana Row, approx. 426,000 s.f., 212 condo units of luxury living (self funded, built and manage) o Levare, Santana Row, 198,000 s.f. luxury living, 108 condo units (self funded, built and manage) o Santana Heights, Santana Row, 460,000 s.f. of luxury living, 292 condo units (self funded, built and manage)
Video (https://vimeo.com/156205619) Code: westcott [need avi (or mp4, etc.) file to insert video into PowerPoint]
WHY ASSIGNMENT IS BEST FOR CITY Certainty of timetable Master Plan process to include surrounding property Commitment to start construction on 200,000 +/- by summer 2017 No delay in corridor development Put product online ASAP Performance standards PMIX overlay on all property including surrounding property Neighborhood/community design charrette for surrounding property
NEXT STEPS Authorize Staff to prepare Assignment Agreement Bring back to Council on 3/31/16