Minutes 09/27/2011 - Laserfiche WebLink

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September 27.2011 11 - 407 - Adoption of a resolution authorizing a revised Interim Agreement with Lincoln Property Company Southwest, Inc., the Portsmouth Redevelopment and Housing Authority, and the Greater Portsmouth Development Corporation for development of the Crawford Point site. Vision Principle: Bold New Directions. Background: . Approximately three years ago, the City and several of its related development entities entered into an agreement with Lincoln Property Company Southwest for phased development of the Crawford Point development site, where the Holiday Inn was previously located. Because of economic conditions, Lincoln has been unable to proceed with the desired development. This resolution authorizes a Revised Interim Agreement between Lincoln and the City development entities, to develop a new plan. Discussion: Under the Revised Interim Agreement: . Lincoln is called upon to propose a new development agreement by January 31, 2012. . The new development agreement, if timely proposed, will be considered on the merits by the City organizations. It may be accepted, negotiated and modified, or rejected. . If not accepted, the relationship with Lincoln may be terminated. . In order to be acceptable, the proposed agreement must propose a development that will be of high quality and high density, to be developed within an acceptable time frame, and it must generate an acceptable rate of return on public investment, with good faith efforts for minority economic participation. . Qualified major developers in the region may be contacted by the City and/or Lincoln to partner with Lincoln in developing a joint development proposal. Financial Impact: . There will be no material financial impact of entering into and implementing the Revised Interim Agreement. If it ultimately causes the desired development of the Crawford Point property, there will be material financial benefits to the City and its citizens. The amount of those benefits cannot be fairly estimated at the present time. Recommended Action: . Adoption of the resolution IS recommended. Vision Principle: Bold New Directions. Next Steps Following Council Action: . Agreement to be signed with Lincoln. . Management Team will contact qualified major regional developers, then work with them and Lincoln to see if an acceptable joint development proposal can be developed. . Management Team will make monthly status reports to City Council. . After January 31, 2012, City Council will determine what action to take. Motion by Mr. Cherry, and seconded by Mr. Moody, to adopt the following resolution with the amendment that the agreement is changed to read that Lincoln Properties will propose a new development agreement by December 31, 2011 rather than January 31, 2012 , and was adopted by the following vote: "RESOLUTION AUTHORIZING A REVISED INTERIM AGREEMENT WITH LINCOLN PROPERTY COMPANY SOUTHWEST, INC., THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY, AND THE GREATER PORTSMOUTH DEVELOPMENT CORPORATION FOR DEVELOPMENT OF THE CRAWFORD POINT SITE. BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that: