HomeMy WebLinkAboutTC-Extension of Pre-Development Agreementk.
TOWN OF
Memorandum
TO: Vail Town Council
FROM: George Ruther, Director of Community Development
DATE: August 5, 2014
SUBJECT: A request to extend the termination date of the Timber Ridge Pre - Development
Agreement.
I. DESCRIPTION OF REQUEST
The Developer, Gary Gorman of Gorman and Company, and the Town staff wish to
extend the termination date of the Timber Ridge Pre - Development Agreement, dated
November 4, 2013. The purpose of the extension request is to afford the developer and
the Town 30 additional days to finalize the steps in securing financing for the
redevelopment project.
II. BACKGROUND
A Pre - Development Agreement was executed by and between the Developer and the
Town. The Agreement establishes terms for the future redevelopment of the Timber
Ridge site. Since the execution of the Agreement, the Developer and the Town have
diligently pursued the steps needed to redevelopment Timber Ridge. For example, a
development plan has been approved, a building permit application has been submitted,
approved and is ready for issuance, the terms of the final Development Agreement,
Ground Lease and Deed Restriction have all been agreed to, the east side units have
been vacated, all necessary rockfall mitigation work is complete, and asbestos
abatement is underway along with the installation of the site construction fence. The
finalization of the financing is all the remains.
The Pre - Development Agreement established terms for the redevelopment of the
Timber Ridge site. Among, other standard provisions, the Agreement established a
"Term and Termination" provision. According to Section 6, of the Agreement,
"This Agreement shall commence on the Effective Date and terminate on
August 15, 2014 (unless such date is extended by mutual agreement of
the Parties); provided that the Developer may terminate this Agreement
earlier than such date upon thirty (30) days written notice to the Town."
Based upon the Term and Termination provision, it was contemplated and
understood by the Parties that an extension to the Agreement may be mutually
beneficial.
III. ACTION REQUESTED
The Vail Town Council is being asked to extend the termination date of the
Timber Ridge Pre - Development Agreement. The request is to extend the
termination date from August 15, 2014 to September 16, 2014. All other terms of
the Pre - Development Agreement will remain unchanged.
Is the Vail Town manager authorized to sign a letter agreement extending the
termination date to September 16, 2014?
IV. RECOMMENDATION
The Town staff recommends the Vail Town Council authorizes the Town
Manager to sign a letter agreement that extends the termination of the Pre -
Development Agreement from August 15, 2014 to September 16, 2014. Said
letter agreement must first be approved as to form by the Town Attorney.
Town of Vail Page 2
