Submitted By: Roberto Ellis
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve a release agreement with Madison Oaks West, LLC, concerning certain requirements outlined in the City Redevelopment Agreement for Pine Oaks
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OCALA'S RELEVANT STRATEGIC GOALS:
Quality of Place, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The city entered into a Redevelopment Agreement with West Oak Developers, LLC, for Pine Oaks on April 23, 2019. West Oak Developers, LLC, will redevelop the former golf course property as a residential community providing mixed-income housing and other improvements for residents of the City. The Redevelopment Agreement for Pine Oaks was inadvertently sent to the Marion County Clerk for recording, triggering the request for a release of the Madison Oaks portion of the property to satisfy the project's equity partner terms for closing. The release was requested by the bank financing the Madison Oaks West project. The bank was concerned that Madison Oaks would be responsible for the requirements of the City Redevelopment Agreement if the primary developer (West Oak Developers, LLC) defaulted on any terms of the agreement.
The proposed agreement will release Madison Oaks West, LLC, from the requirements of the City Redevelopment Agreement for Pine Oaks that do not pertain to the development of the Madison Oaks West project. The attached document clarifies that Madison Oaks West, LLC is not liable for requirements outlined in the City Redevelopment Agreement for Pine Oaks.
FINDINGS AND CONCLUSIONS:
The release is warranted to construct the 96-unit Madison Oaks West project. On December 20, 2022, agenda, City Council will be considering an agenda item concerning affordable housing funding for the project.
The proposed release will not impact the City Redevelopment Agreement with the primary developer.
FISCAL IMPACT: N/A
PROCUREMENT REVIEW: N/A
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