R2011-21 AUTHORIZING DEVELOPMENT AGREEMENT

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DEVELOPMENT SERVICES MEMORANDUM No. 11-15 March 2, 2011 TO: Honorable Mayor Michael T. McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Greg C. Crowe, Assistant City Manager SUBJECT: Development Agreement with Hurwitz Enterprises, LLC. for the development of Lot 2 of Mound Center SUMMARY RECOMMENDATION: Staff recommends approval of the resolution authorizing the Mayor to execute a Development Agreement with Hurwitz Enterprises for the development of Lot 2 of Mound Center. BACKGROUND: The City of Decatur and Blackstone Group (a partnership of which Joe Hurwitz/Hurwitz Enterprises is a general partner) entered into a Development Agreement on April 7, 2003 for the development of the Mound Center Tract. Blackstone Group provided technical oversight on behalf of the City for the negotiation, planning, design and construction of Mound Center. Through that Agreement, Hurwitz Enterprises also provided outlot development services to the City and successfully negotiated deals to attract Starbucks and Olive Garden to the Center. The Agreement from 2003 is no longer valid, so City staff recommends entering into an Agreement with Hurwitz Enterprises to continue providing technical services for the development of the remaining vacant lot. The services provided will include on-going maintenance, plan development, marketing and outlot development of the City owned lot. The term of the Agreement is until December 31, 2012. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER SOURCES: Assistant Corporation Counsel has reviewed the Agreement with Hurwitz Enterprises, LLC. STAFF REFERENCES: If Council members have questions they may contact Greg Crowe at 424-2727 or gcrowe@decaturil.gov. BUDGET/TIME IMPLICATIONS: The on-going maintenance, plan development and marketing costs will come out of the economic development line item in the Planning Fund. The commission costs for Lot 2 from outlot development will come out of the sale proceeds of the Lot.