HomeMy WebLinkAboutItem #03 Approval of the Fourth Amendment to Development & Economic Incentive Agreement for City Center West Orange A
ocoee
florida
AGENDA ITEM COVER SHEET
Meeting Date: September 18, 2018
Item # 3
Reviewed By:
Contact Name: Michael Rumer, City �' Department Director:
Planner
Contact Number: (407) 905-3100 x1018 City Manager: Afili
Subject: Fourth Amendment to Development and Economic Incentive Agreement
City Center West Orange
Commission District# 3— Richard Firstner
Background Summary:
On September 6, 2016, the City Commission approved and executed a Development and Economic Incentive
Agreement for City Center West Orange Phase 1, by and between CCWO Development Management, LLC,
WSCC Development, LLC, MB II, the City of Ocoee, and the Ocoee CRA, for the development of City Center
West Orange.
Subsequent to the execution of the Original Agreement which was on October 3, 2016, CBPW acquired the
property fee simple from WSCC Development, LLC by a Special Warranty Deed. By its acquisition of the
above-referenced parcels, CBPW must undertake all obligations inuring to WSCC Development, LLC and
CCWO Development Management, LLC under the Original Agreement and by this Amendment.
Additionally, a First Amendment to Development and Economic Incentive Agreement was approved and
executed at the December 6, 2016, City Commission meeting which amended Section 4 of the agreement to
include a provision allowing the economic incentives to be used by the City Center West Orange project on all
properties associated with the City Center West Orange development within the Target Area 2.
A Second Amendment to Development and Economic Incentive Agreement was approved and executed at the
January 17, 2017, City Commission meeting, which provided for the expiration dates for ground-breaking to be
extended from January 1, 2017, to March 1, 2017, and the site development completion date from August 31,
2017, to December 30, 2017 on all properties associated with the City Center West Orange development within
the Target Area 2.
A Third Amendment to Development and Economic Incentive Agreement was approved on December 20,
2018, City Commission meeting, which provided for the extension of the expiration dates for site development
completion from December 30, 2017, to July 2, 2018, on all properties associated with the City Center West
Orange development within the Target Area 2. On June 19, 2018 and July 17, 2018, the City Commission voted
to extend time under the agreement.
The developer has since created a Community Development District (CDD) on all of the City Center West
Orange Lands. The CDD will repay the developer for infrastructure improvements made to date and to other
improvements going forward. In order to adequately finish the previously approved infrastructure improvements
and additional improvements to be made from new lands purchased, the Developer is requesting one final
amendment to the Development and Incentive Agreement. The attached Fourth Amendment to Development
and Economic Incentive Agreement provides for the expiration dates for Building Permit submittal to be
extended from July 2, 2018, to September 18, 2019, and construction completion of Maine Street Section 2
date from July 2, 2018, to September 18, 2019.
During discussions with the developer on a proposed Fourth Amendment to the Development and Economic
Incentive Agreement, City staff requested the consultant (GAI Community Solutions Group) who aided in
crafting the original Economic Incentive Agreement to review the proposed delay of the project start dates for
impacts to the Incentive Agreement. Per the memorandum (see attached) dated August 23, 2018, the delay in
the project completion date will not negatively burden or add risk to the City or Community Redevelopment
Agency (CRA)with respect to providing incentives based on the criteria stipulated in the agreement. Also, the
consultant disclosed that because of the progress in infrastructure constructed to date, the property values of
the development are being assessed at a higher taxable value than when the agreement went into effect,
resulting in increased property tax collection with no offset in paying a percentage back as an incentive.
Issue:
Should the Honorable Mayor and City Commissioners approve a Fourth Amendment to Development and
Economic Incentive Agreement, in order to allow the expiration dates for Building Permit submittal to be
extended from July 2, 2018, to September 18, 2019, and construction completion of Maine Street Section 2
date from July 2, 2018, to September 18, 2019?
Recommendation:
Staff respectfully recommends that the Honorable Mayor and City Commissioners approve the Fourth
Amendment to Development and Economic Incentive Agreement for City Center West Orange.
Attachments:
Fourth Amendment to Development and Economic Incentive Agreement&
Community Solutions (GAI Consultants) Group Memo on Amendment to Development and Incentive Agreement
Financial Impact:
N/A
Type of Item: (please mark with an "x")
Public Hearing For Clerk's Dept. Use:
Ordinance First Reading Consent Agenda
Ordinance Second Reading Public Hearing
Resolution Regular Agenda
X Commission Approval
Discussion&Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney N/A
Reviewed by Finance Dept. N/A
Reviewed by 0 N/A
THIS INSTRUMENT PREPARED BY
AND SHOULD BE RETURNED TO:
PREPARED BY:
Dana Crosby-Collier,Esq.
SHUFFIELD,LOWMAN&WILSON.P.A.
1000 Legion Place,Suite 1700
Orlando,FL 32801
(407)581-9800
RETURN TO:
City Clerk
CITY OF OCOEE For Recording Purposes Only
150 N.Lakeshore Drive
Ocoee,FL 34761
(407)656-2322
FOURTH AMENDMENT TO DEVELOPMENT AND
ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
THIS FOURTH AMENDMENT TO DEVELOPMENT AND ECONOMIC
INCENTIVE AGREEMENT (this "Amendment") is made and entered into as of the 18`" day
of September, 2018, by and among CBPW CORPORATION, a Nevada corporation, whose
mailing address is 12724 Waterford Pointe Boulevard, Windermere, FL 34786 ("CBPW") and
MAINE BOULEVARD II, LLC, a Florida limited liability company, whose mailing address is
7380 West Sand Lake Road, Suite 395, Orlando, FL 32819 ("MB II") (CBPW, and MB II
hereinafter referred to collectively as the "Owner") and the CITY OF OCOEE, a Florida
municipal corporation, whose mailing address is 150 North Lakeshore Drive, Ocoee, Florida
34761, Attention: City Manager(hereinafter referred to as the "City").
WITNESSETH:
WHEREAS, on October 3, 2016, a fully executed Development and Economic Incentive
Agreement for City Center West Orange Phase 1, by and between CCWO Development
Management, LLC, WSCC Development, LLC, MB II, the City, and the City of Ocoee
Community Redevelopment Agency (CRA), for the development of the Property described in
Exhibit "A," attached thereto, was recorded at document #20160517902, public records of
Orange County, Florida, and is amended by that a First Amendment thereto as fully executed on
December 6, 2016, and recorded at document #20160666267, public records of Orange County,
Florida, the Second Amendment thereto as fully executed on January 17, 2017, and recorded at
document #20170046961, public records of Orange County, Florida, and the Third Amendment
thereto as fully executed on December 28, 2017, and recorded at document #20180023316,
public records of Orange County, Florida(the "Agreement");
WHEREAS, on June 19, 2018 and July 17, 2018, the City Commission voted to extend
time under the Agreement; and
WHEREAS, the parties agree that the terms and provisions of the Agreement should be
formally amended to allow additional time for development of the Property; and
WHEREAS, since the use and application of fees and impact fee credits is not within the
purview of the CRA, the CRA is not a party to this Amendment.
NOW, THEREFORE, in consideration of the premises and other good and valuable
considerations exchanged between the parties hereto, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
Section 1. Recitals; Definitions. The above recitals are true and correct and
incorporated herein by this reference. All capitalized terms not otherwise defined herein shall be
as defined or described on the Final Plans, unless otherwise indicated.
Section 2. Development Approvals. Nothing herein will be construed to grant or
waive on behalf of the City any development approvals that may be required in connection with
the Final Plan or the Owner's development of the Property. Notwithstanding this Amendment,
the Owner must comply with all applicable procedures and standards relating to the development
of the Property.
Section 3. Building Plan Review Fee. Section 6 of the Agreement is amended to
read as follows:
The parties acknowledge that, as of the date of this Fourth Amendment, construction of
the horizontal development of the Initial Construction Improvements, as defined in this
paragraph, has commenced. Notwithstanding anything contained herein or in the Final
Plans to the contrary, provided that (i) the Owner is not then in default under any of the
obligations contained in this Agreement; and (ii) only as it applies to building plans
submitted for the construction of the horizontal development and the parking garages and
shell buildings within the Property (the "Initial Construction Improvements"); and (iii)
provided such payment is made in connection with plans submitted on or before
September 18, 2019 (the "Plan Review Discount Deadline"), building and fire plan
review fees for construction of the Initial Construction Improvements, currently assessed
at 3/4 of 1% and 1/4 of 1%, respectively, of the anticipated construction costs for such
improvements, shall instead be assessed at a flat fee of $500,000.00 (the "Flat Review
Fee"). The Flat Review Fee shall be payable as follows: (i) $1,000.00 of the Flat Review
Fee shall be paid for each plan submitted at the time such plan is submitted to the City for
review, provided such submissions are prior to the Plan Review Discount Deadline; (ii)
the balance of the Flat Review Fee shall be submitted to the City on or before the date the
first building permit is issued for the Property (the "Balance Payment"). $200,000.00 of
the Balance Payment shall be retained by the City in a separate account and used for the
City's purchase and maintenance of plan review/permit tracking software, permanent or
temporary positions relating to inspections or other specific needs relating to the project
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
to be developed on the Property. Nothing herein shall prohibit the City from using any
software, employees or other items purchased with the $200,000.00 of the Balance
Payment for other projects or properties in the City. The remainder of the Balance
Payment shall be applied and used by the City consistent with its normal procedure
relating to the receipt of building and fire plan review fees. Notwithstanding anything to
the contrary contained herein, the Flat Review Fee shall not be applicable and instead the
then applicable standard fees shall apply in the event the building plans are not submitted
on or before September 18, 2019.
Section 4. Transportation Impact Fee Credits. Section 10 of the Agreement is
hereby amended to read as follows:
In the event the construction of Richmond Avenue, Maine Street Section 1, Ocoee Town
Center Boulevard/Street B, Street C, Street A, Lake Bennett Drive Extension, Maine
Street Section 2 and Maine Street Retention Pond (all as defined below) commences by
March 1, 2018 and are completed and accepted by the City as public roads prior to
September 18, 2019 and provided that the Owner is not then in default under any of the
obligations contained in this Agreement, Owner shall be entitled to transportation impact
fee credits in the total amount of $1,978,702.00 (the "Transportation Impact Fee
Credits"). The amount of the Transportation Impact Fee Credits is fixed and is not based
on the actual construction costs incurred relating to the construction of such
improvements. The Transportation Impact Fee Credits may only be applied toward
transportation impact fees that are due and payable in connection with improvements
constructed on the Property and any parcel within the Target Area 2 boundary. Except as
specifically set forth in this Section 10 and Section 11 of the Agreement, no additional
impact fee credits will be available for the construction of any improvements on the
Property.
Section 5. Parks and Recreation Impact Fee Credits. Section 11 of the Agreement
is hereby amended to read as follows:
In the event the construction of Richmond Avenue, Maine Street Section 1, Ocoee Town
Center Boulevard/Street B, Street C, Street A, Lake Bennett Drive Extension, Maine
Street Section 2 and Maine Street Retention Pond commences by March 1, 2018 and are
completed and accepted by the City as public roads prior to September 18, 2019 and
provided that the Owner is not then in default under any of the obligations contained in
this Agreement, Owner shall be entitled to parks and recreation impact fee credits in the
total amount of $200,000.00 (the "Parks and Recreation Impact Fee Credits"). The
amount of the Parks and Recreation Impact Fee Credits is fixed and is not based on the
actual construction costs incurred relating to the construction of such improvements. The
Parks and Recreation Impact Fee Credits may only be applied toward parks and recreation
impact fees that are due and payable in connection with improvements constructed on the
Property.
Section 6. Construction of Richmond Avenue. Section 12 of the Agreement is
hereby amended to read as follows:
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase I)
The Final Plans show the entire width of Richmond Avenue, a road segment with street
parking and curb cuts with the right-of way running north and south adjacent to the
western edge of the Property ("Richmond Avenue"). Notwithstanding what is depicted
on the Final Plans, Owner owns only the eastern half of Richmond Avenue (the "Eastern
Half of Richmond Avenue"). The City owns, or has contracted to acquire from the
adjacent owner, the western half of Richmond Avenue (the "Western Half of Richmond
Avenue"). In the event the entire Richmond Avenue has not then been completed either
by the adjacent owner to the west or another party, then Owner shall be responsible for
the construction of the entirety of Richmond Avenue, or so much as remains to be
completed. Such construction shall be in accordance with the requirements of the City
and shall accommodate access points to the adjacent property to the west. In the event
Owner does not then possess fee simple title to all of the Eastern Half of Richmond
Avenue land, Owner, at Owner's sole cost and expense shall acquire such land prior to
commencing construction. Nothing herein shall prevent Owner and the adjacent owner to
the west from entering into a mutually acceptable agreement for the construction of
Richmond Avenue, with such costs to be mutually agreed upon between such parties.
However, in all events, the construction of Richmond Avenue must commence prior to
March 1, 2018 and the entire Richmond Avenue must be completed and accepted by the
City as a public road prior to issuance of the first building permit for vertical construction
on the Property and in any event prior to September 18, 2019.
Section 7. Construction of Maine Street Section 1. Section 14 of the Agreement is
hereby amended to read as follows:
The Final Plans show the extension of Maine Street, a road segment with street parking
and curb cuts with the right-of-way running east and west along the northern boundary of
the Property from just west of the Richmond Avenue and Maine Street intersection to just
east of the Street C and Maine Street intersection ("Maine Street Section 1"). In the
event Maine Street Section 1 has not then been completed by another party, then Owner
shall be responsible for the construction of Maine Street Section 1, or so much as remains
to be completed. Such construction shall be in accordance with the requirements of the
City and shall accommodate access points to the adjacent property to the north. In the
event Owner does not then possess fee simple title to all of the Maine Street Section 1
land, Owner, at Owner's sole cost and expense shall acquire such land prior to
commencing construction. Nothing herein shall prevent Owner and any other party from
entering into a mutually acceptable agreement for the construction of Maine Street
Section 1, with such costs to be mutually agreed upon between such parties. However, in
all events, the construction of Maine Street Section 1 must commence prior to March 1,
2018 and the entire Maine Street Section 1 must be completed and accepted by the City as
a public road prior to issuance of the first building permit for vertical construction on the
Property and in any event prior to September 18, 2019.
Section 8. Construction of Ocoee Town Center Boulevard/Street B. Section 16 of
the Agreement is hereby amended to read as follows:
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase I)
The Final Plans show the extension of Ocoee Town Center Boulevard/Street B, a road
segment with a round-about connecting with Street A to the north and possibly the
extension of Lake Bennett Drive to the south, with street parking and curb cuts with the
right-of-way running east and west along the southern boundary of the Property from just
west of the Richmond Avenue and Ocoee Town Center Boulevard intersection to the
intersection with Street C ("Ocoee Town Center Boulevard/Street B"). In the event
Ocoee Town Center Boulevard/Street B has not then been completed by another party,
then Owner shall be responsible for the construction of Ocoee Town Center
Boulevard/Street B, or so much as remains to be completed. Such construction shall be
in accordance with the requirements of the City and shall accommodate access points to
the adjacent property to the south. In the event Owner does not then possess fee simple
title to all of the Ocoee Town Center Boulevard/Street B land, Owner, at Owner's sole
cost and expense shall acquire such land prior to commencing construction. Nothing
herein shall prevent Owner and any other party from entering into a mutually acceptable
agreement for the construction of Ocoee Town Center Boulevard/Street B, with such
costs to be mutually agreed upon between such parties. However, in all events, the
construction of Ocoee Town Center Boulevard/Street B must commence prior to March
1, 2018 and the entire Ocoee Town Center Boulevard/Street B must be completed and
accepted by the City as a public road prior to issuance of the first building permit for
vertical construction on the Property and in any event prior to September 18, 2019.
Section 9. Construction of Street C. Section 18 of the Agreement is hereby
amended to read as follows:
The Final Plans show Street C, a road segment with street parking and curb cuts with the
right-of-way running northeast and southwest along the eastern boundary of the Property
from the intersection with Street B to the intersection with Maine Street Section 1
("Street C"). In the event Street C has not then been completed by another party, then
Owner shall be responsible for the construction of Street C, or so much as remains to be
completed. Such construction shall be in accordance with the requirements of the City.
In the event Owner does not then possess fee simple title to all of the Street C land,
Owner, at Owner's sole cost and expense shall acquire such land prior to commencing
construction. Nothing herein shall prevent Owner and any other party from entering into
a mutually acceptable agreement for the construction of Street C, with such costs to be
mutually agreed upon between such parties. However, in all events, the construction of
Street C must commence prior to March 1, 2018 and the entire Street C must be
completed and accepted by the City as a public road prior to issuance of the first building
permit for vertical construction on the Property and in any event prior to September 18,
2019.
Section 10. Construction of Street A. Section 20 of the Agreement is hereby amended
to read as follows:
The Final Plans show Street A, a road segment with street parking and curb cuts with
the right-of-way running north and south within the interior of the Property from the
round-about portion of Ocoee Town Center Boulevard/Street B to the intersection with
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
Maine Street Section 1 ("Street A"). Owner shall be responsible for the construction of
Street A. Such construction shall be in accordance with the requirements of the City.
The construction of Street A must commence prior to March 1, 2018 and the entire
Street A must be completed and accepted by the City as a public road prior to issuance
of the first building permit for vertical construction on the Property and in any event
prior to September 18, 2019.
Section 11. Construction of Lake Bennett Drive. Section 22 of the Agreement is
hereby amended to read as follows:
The Final Plans provide for two proposed locations for the future Lake Bennett Drive
extension: (i) south from the round-about within Ocoee Town Center Boulevard/Street B
to the existing road north of the RaceTrac parcel, and (ii) southwest from the intersection
of Street B and Street C to the existing road north of the RaceTrac parcel (the final
determined location for such road referred to herein as the "Lake Bennett Drive
Extension"). The City shall ultimately determine the final location of the Lake Bennett
Drive Extension, with the understanding that preference shall be given to option (ii)
above. The City shall advise Owner as soon as possible if option (i) is selected, however,
the City shall not have the right to select option (i) in the event Owner has commenced
the design and permitting of Lake Bennett Drive Extension pursuant to option (ii). In the
event the Lake Bennett Drive Extension has not then been completed by another party
and the City then owns the Lake Bennett Drive Extension land or has a commitment from
the owner thereof to convey the same within ninety(90) days of a request by the City,
then Owner shall be responsible for the design, engineering and construction of Lake
Bennett Drive Extension, or so much as remains to be completed. Such construction
shall be in accordance with the requirements of the City. In the event at the time Owner
is prepared to commence construction on the Property and the City does not own the Lake
Bennett Drive Extension or does not have a commitment from the owner thereof to
convey the same within ninety (90) days of a request by the City, Owner shall have no
obligation to construct the Lake Bennett Drive Extension. Nothing herein shall prevent
Owner and any other party from entering into a mutually acceptable agreement for the
construction of Lake Bennett Drive Extension, with such costs to be mutually agreed
upon between such parties. However, provided that the City then owns the Lake Bennett
Drive Extension land or has a commitment from the owner thereof to convey the same
within ninety(90) days of a request by the City, the construction of Lake Bennett Drive
Extension must commence prior to March 1, 2018 and the entire Lake Bennett Drive
Extension must be completed and accepted by the City as a public road prior to issuance
of the first building permit for vertical construction on the Property and in any event prior
to September 18, 2019.
Section 12. Construction of Maine Street Section 2. Section 23 of the Agreement is
hereby amended to read as follows:
In order to accommodate the development of the Property for its intended use and to
alleviate traffic concerns in the area and in lieu of contributing to or making necessary
improvements to Bluford Avenue, Owner shall be responsible for the extension of Maine
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
Street from the eastern edge of Maine Street Section 1 east to Blackwood Avenue (the
final determined location for such road referred to herein as the "Maine Street
Section 2"). Owner shall be responsible for the design, engineering and construction of
Maine Street Section 2, or so much as remains to be completed. Such construction shall
be in accordance with the requirements of the City. In the event Owner and City do not
then possess fee simple title to all of the Maine Street Section 2 land, Owner, at Owner's
sole cost and expense shall acquire such land prior to commencing construction. The
construction of Maine Street Section 2 must commence prior to March 1, 2018 and the
entire Maine Street Section 2 must be completed and accepted by the City as a public
road prior to issuance of the first building permit for vertical construction on the Property
and in any event prior to September 18, 2019.
Section 13. Ratification of Prior Agreements. Except as amended hereby, the
Agreement remains unchanged and in full force and effect, and each of the parties hereto hereby
ratifies and confirms the terms and conditions of the Agreement. All references herein to the
Agreement shall refer to the Development and Economic Incentive Agreement for City Center
West Orange Phase 1, as amended by this Fourth Amendment, unless the text or context
indicates otherwise. In the event of any conflict between the Agreement and this Amendment it
is agreed that this Amendment shall control.
Section 14. Covenant Running with the Land. This Amendment shall run with the
Property and inure to and be for the benefit of the parties hereto and their respective successors
and assigns and any person, firm, corporation, or entity who may become the successor in interest
to the Property or any portion thereof.
Section 15. Recordation of Amendment. The parties hereto agree that an executed
original of this Amendment shall be recorded by the City, at the Owner's expense, in the Public
Records of Orange County, Florida.
Section 16. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original but all of which together shall
constitute one and the same instrument.
Section 17. Effective Date. The Effective Date of this Amendment shall be the day
this Amendment is last executed by a party hereto and such date shall be inserted on Page 1 of
this Amendment.
[THE BALANCE OF THIS PAGE IS INTENTIONALLY BLANK]
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
IN WITNESS WHEREOF, the Owner and the City have caused this instrument to be
executed by their duly authorized elected officials, partners, and/or officers as of the day and year
first above written.
Signed, sealed and delivered OWNER:
in the presence of:
CBPW CORPORATION, a Nevada
Corporation
By:
Print Name:
Title:
Print Name
Print Name
STATE OF
COUNTY OF
I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the
State and County aforesaid to take acknowledgments, personally appeared , as
of CBPW CORPORATION, a Nevada corporation, who [ 1 is personally known
to me or [ 1 produced as identification, and that he/she
acknowledged executing the same on behalf of said Company in the presence of two subscribing
witnesses, freely and voluntarily, for the uses and purposes therein expressed.
WITNESS my hand and official seal in the County and State last aforesaid this
day of , 2018.
Signature of Notary
Name of Notary (Typed, Printed or Stamped)
Commission Number(if not legible on seal):
My Commission Expires(if not legible on seal):
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
Signed, sealed and delivered OWNER:
in the presence of:
MAINE BOULEVARD II,LLC, a Florida
limited liability company
By:
Print Name:
Title:
Print Name
Print Name
STATE OF
COUNTY OF
I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the
State and County aforesaid to take acknowledgments, personally appeared , as
of MAINE BOULEVARD II, LLC, a Florida limited liability company, who F 1
is personally known to me or [ 1 produced as
identification, and that he/she acknowledged executing the same on behalf of said Company in
the presence of two subscribing witnesses, freely and voluntarily, for the uses and purposes
therein expressed.
WITNESS my hand and official seal in the County and State last aforesaid this
day of , 2018.
Signature of Notary
Name of Notary(Typed, Printed or Stamped)
Commission Number(if not legible on seal):
My Commission Expires(if not legible on seal):
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
Signed, sealed and delivered CITY:
in the presence of:
CITY OF OCOEE,FLORIDA
By:
Print Name: Rusty Johnson, Mayor
Attest:
Melanie Sibbitt, City Clerk
Print Name (SEAL)
FOR USE AND RELIANCE ONLY BY APPROVED BY THE OCOEE CITY
THE CITY OF OCOEE,FLORIDA. COMMISSION AT A MEETING HELD ON
Approved as to form and legality this , 201_
day of ,201_. UNDER AGENDA ITEM NO.
SHUFFIELD,LOWMAN& WILSON,P.A.
By:
City Attorney
STATE OF FLORIDA
COUNTY OF ORANGE
I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the
State and County aforesaid to take acknowledgments, personally appeared RUSTY JOHNSON
and MELANIE SIBBITT, personally known to me to be the Mayor and City Clerk,
respectively, of the CITY OF OCOEE, FLORIDA and that they severally acknowledged
executing the same in the presence of two subscribing witnesses, freely and voluntarily under
authority duly vested in them by said municipality.
WITNESS my hand and official seal in the County and State last aforesaid this
day of , 2018.
Signature of Notary
Name of Notary(Typed, Printed or Stamped)
Commission Number(if not legible on seal):
My Commission Expires(if not legible on seal):
Fourth Amendment
DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT
(City Center West Orange Phase 1)
COMMUNITY 618 E.South Street,Suite 700
SOLUTIONS Orlando,Florida 32801
GROUP T 407.423.8398 D 321.319.3099
Planning I Urban Design
Landscape Architecture
Economics I Real Estate A GAl Consultants Inc.Service Group
Memorandum
To Michael Rumer
cc Craig Shadrix
Subject CRA Incentive Agreement
Project City Center West Orange
From: Steven McDonald, CVA, Chief Economist
Date 8/23/2018
GAI Consultants,Inc. ("GAT') has completed a review of amendments to the Development and
Economic Incentive Agreement for City Center West Orange Phase 1 dated September 6, 2016.The
most recent amendment extended the expiration dates for Building Permit submittal and construction
completion of Maine Street Section 2 from July 2, 2018 to July 2, 2019.
Based on our review, it is our opinion that the delay in project completion does not have a material
impact on the efficacy of the original economic development incentive. The original incentive
agreement was thoughtfully developed so that neither party was burdened with a disproportionate
level of risk, especially the City.The following comments are provided as a summary of our review and
conclusion:
► The original economic development incentive concept was modeled over a 13 year period.The
initial three years reflected a period for project initiation, permitting, construction, and
property valuation.The flow of incentives were proposed to be completed over a period of 10
years.If timing of the original economic development incentive proceeded based a January 1,
2017 initiation date, the incentive arrangement would have expired by 2030.The CRA expires
in 2036.
► The main concern with the current delay or any future delays would be the timing of the
expiration of the CRA and the ability to fulfill the proposed incentive over a 10 year period.
Without any adjustments to our assumptions,the current delay would not extend the
execution of the incentives beyond the date of the CRA and does not impact the economic
development incentive.
► More importantly, the original economic development incentive was not modeled with
compounding increases in taxable property value that generates incremental revenues to the
City. Because the portion of economic development incentive captured from incremental ad
valorem taxes is capped, we estimated that these funds would potentially meet the agreement
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Planning I lir ban Design
Landscape Architecture
Economics j Real Estate
1 V2 to 2 years early.Again,this was a conservative modeling approach to ensure that potential
risks were minimized.
► In addition,the property values modeled in the original economic development incentive were
stated in constant dollars(2016).A delay in project completion is expected to result in a higher
base property value placed on the tax rolls once completed.Again,without compounded
increases in property value in the original economic development incentive model,this could
result in completing the incentive agreement by the original 2030 date, even with a 2 year
delay.
► Finally, a smaller beneficial impact would be provided to the City from the increases in taxable
value from the construction in progress that was not assumed in the original economic
development incentive model.We originally assumed the property went from vacant to
developed exactly on January 1 when property value is assessed. Because of progress in
construction,the property value of the site has nearly doubled and a significant increase is also
expected on the tax roll next year.This incremental tax revenue, albeit relatively small,was not
contemplated in the original model.
Let me know if you have any questions.
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