Title
Downtown Hampton Inn/Lot 9 Redevelopment (B)
Explanation
On November 26, 2007, the CRA approved a revised incentive program for the Hampton Inn development located on Lot 9 in the Downtown Redevelopment Area. The incentives were designed to allow the project to move forward in the wake of the September 2007 Strand v. Escambia County Supreme Court decision, which, at that time, limited the CRA's ability to provide multi-year incentive programs. The approved incentives totaled approximately $764,000, and the payment timeline was limited to one year, in order to comply with the then-relevant Strand ruling. The original Development and Disposition Agreement between the developer and the CRA identified the incentive repayment deadline as December 14, 2008.
The developer has recently requested an extension to the invoice submittal and payment obligation deadlines. This extension would allow for additional site work to occur and for proper invoicing/submittal to the CRA for reimbursement. CRA staff has analyzed the issue and recommends extending the deadline for final payment until April 15, 2009. This date will allow additional time to the developer and correlates well with hotel's construction schedule. As the Court has recently issued a substitute opinion regarding Strand, the CRA is able to extend the payment period beyond the initial 12 month timeframe.
Fiscal Note
There is $767,601 budgeted in account 9999-610-790-464-W213-8201-5520 to fund the financial incentives associated with the Hampton Inn Development Agreement.
Recommendation
CRA Executive Director to the CRA: 1) Hear a presentation from staff; and 2) ratify the Executive Director's execution of an amendment extending the deadlines for submittal and payment obligation in the Development and Disposition Agreement until April 15, 2009.