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HomeMy WebLinkAbout3C PresentationOrchid Tree Operations CovenantAgenda Item #3C February 9, 2023 DEVELOPMENT SERVICES DEPARTMENT Orchid Tree Operations Covenant •Project is subject to an operations covenant, approved in 2019 •Amended agreement established project milestones •Owner invoked “force majeure” provision relative to project milestones, provided CBRE market report •Proposed modifications (package deal) offered as resolution to the project issues DEVELOPMENT SERVICES DEPARTMENT Orchid Tree –Performance Schedule •Revise project schedule so that construction must commence by March 1, 2024 •Additional project milestone dates to be revised accodingly •Owner will provide $1 million security amount to the City if construction does not start by specified date DEVELOPMENT SERVICES DEPARTMENT Orchid Tree –TOT Formula •Current agreement: 75% TOT for 30 years •Owner is requesting 100% TOT for the first 10 years; TOT formula will revert to 75% for years 11 to 30 •Analysis of change in allocations to the City included as Attachment C to the staff report •Requested change to TOT formula would require approval of a development agreement DEVELOPMENT SERVICES DEPARTMENT Orchid Tree –Revised Site Plan •Construction cost of current approved plan: Approx. $67 million •Owner investigated modifications to the site plan that would assist in reducing construction cost without reducing project quality •Revised concept plan retains the same number of units, parking spaces, and project amenities •Auberge Resorts has reviewed revised plan DEVELOPMENT SERVICES DEPARTMENT Approved Plan Proposed Plan Orchid Tree –Entitlements •Modifications to the site plan will require review by HSPB, Planning Commission, ARC •Development agreement will require review by Planning Commission, City Council •Owner has suggested joint meetings to facilitate entitlement process and reduce timeframes DEVELOPMENT SERVICES DEPARTMENT Orchid Tree –Other Requests •Deferral of permit and entitlement fees until Year 3 of operations •Owner has requested assistance with costs to underground utilities (perhaps as fee credits) •Owner may request approval of condo hotel units (CUP approval required) DEVELOPMENT SERVICES DEPARTMENT Summary of Requests •Modification to performance schedule, payment of $1 million security •Modification to TOT allocation for 10 years •Revisions to site plan •Deferral of permit and entitlement fees •Assistance with undergrounding utilities •Deal points to be memorialized through a development agreement DEVELOPMENT SERVICES DEPARTMENT Orchid Tree Operations CovenantAgenda Item #3C February 9, 2023 DEVELOPMENT SERVICES DEPARTMENT