R2003-146 AUTHORIZING FIRST AMENDMENT

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Y Economic & Urban Development Department Memorandum #03-97 September 23, 2003 TO: Honorable Mayor Paul Osbome and City Council Members FROM: Steve Garman, City Manager A.J. Krieger,Assistant City Mana r SUBJECT: Target Purchase Agreement Amendment RECOMMENDATION: Approval of the attached resolution will authorize the City Manager to execute an amended Purchase Agreement with Target Corp. Two exhibits to the amended Purchase Agreement, the Site Development Agreement (SDA) and Operation and Easement Agreement (OEA)will also be approved. City staff recommends approval. BACKGROUND: As Council will recall, the City of Decatur entered into a Purchase Agreement with Target Corp. in February of this year. The recommended amendment to the Purchase Agreement simply redefines the Target tract to include the detention area. Target will now own the detention area for the entire shopping center site. It was earlier contemplated that the owner of Lot 2 might own the detention area. However, Target Corp. will now own it. The original Purchase Agreement contemplated the negotiation and execution of two related agreements; the SDA and OEA. Together the SDA and OEA are intended to control both the initial development and the ongoing operation of the shopping center. Essentially the SDA and OEA add specific layers of operational and financial details to the Purchase Agreement and the approved B-3 Planned Shopping Center District Plan. Negotiation and execution of these agreements was one of the specific reasons the City retained the Blackstone Group; to provide professional services and specific input regarding the impact of the many issues included in both agreements. Generally, there is nothing in either agreement that changes any physical component of the approved B-3 Planned Shopping Center District plan; only the City Council can do that. These agreements have just added layers of detail to that approved plan by dealing with specific issues like cost sharing for general maintenance, the shopping center's signage, construction and maintenance of the detention area, and operational issues including shared parking and shared access. While an unusual agreement for the City to enter into, site development and easement agreements are standard practice in the retail/commercial development industry. With Council approval of these documents, this project is proceeding toward closing and is on course for Spring 2004 construction.