Title
Conveyance of City Parking Lot 9 to First Street Lodging, LLC, commonly known as the Hampton Inn Redevelopment Project
Recommendation
The City Commission authorize the Mayor and Clerk of the Commission to execute the Subordination Agreement between the City of Gainesville and the Developer and the Lenders relating to the conveyance of City Parking Lot 9 for the project commonly known as the Hampton Inn Redevelopment Project, subject to the approval of the City Attorney as to form and legality.
The request for proposals and the Option Contract for Sale and Purchase of Lot 9 provide that, after the conveyance of Lot 9 to the developer, the property may revert back to the City in the event the redevelopment project is not completed within a certain time period. The developer and its lenders have requested the City to subordinate the City's right of reverter to lenders who loan money for the acquisition of the property or construction of the project, or hold title as a result of foreclosure. The City Attorney, the Developers, and the Lenders have negotiated a Subordination Agreement, a copy of which is attached, that subordinates the right of reverter under the terms and conditions as more specifically provided in the Subordination Agreement.