Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 26-CRA-01, Termination of Redevelopment Agreement by and among the City of Port St. Lucie, the City of Port St. Lucie Community Redevelopment Agency, PSL City Center, LLC and DeGuardiola Properties, Inc.
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Submitted By: Jennifer Davis, Director, Community Redevelopment Agency
Executive Summary (General Business): The City of Port St. Lucie Community Redevelopment Agency (“Agency”) desires to terminate the City Center Redevelopment Agreement to enable development within the Walton & One Project.
Presentation Information: Staff will provide a brief presentation, if requested.
Staff Recommendation: Move that the Board approve the Resolution.
Alternate Recommendations:
1. Move that the Board amend the recommendation and approve the Resolution.
2. Move that the Board not approve and provide staff additional direction.
Background:
In August 2005, a Redevelopment Agreement was executed by and among the City of Port St. Lucie, the City of Port St. Lucie Community Redevelopment Agency (“Agency”), PSL City Center, LLC and DeGuardiola Properties, Inc. The Redevelopment Agreement was recorded on August 10, 2005, in Official Records Book 2329, Page 187 of the Public Records of St. Lucie County, Florida and was subsequently amended as follows:
• First Amendment to Redevelopment Agreement recorded on October 27, 2005, in Official Records Book 2398, 811 of the Public Records of St. Lucie County, Florida
• Second Amendment to Redevelopment Agreement recorded on March 16, 2006, in Official Records Book 2510, 1695 of the Public Records of St. Lucie County, Florida
• Third Amendment to Redevelopment Agreement recorded on May 5, 2006, in Official Records Book 2554, Page 750 of the Public Records of St. Lucie County, Florida
• Fourth Amendment to Redevelopment Agreement recorded on November 16, 2006, in Official Records Book 2702, Page 2948 of the Public Records of St. Lucie County, Florida
• Fifth Amendment to Redevelopment Agreement recorded on January 20, 2008, in Official Records Book 2932, Page 2410 of the Public Records of St. Lucie County, Florida
Collectively the Agreements and Amendments thereto are referenced as the City Center Redevelopment Agreement. When the City Center Redevelopment Agreement was originally entered into in 2005, the desire was to facilitate the development of a dense mixed-use, urban, town-center concept project (the “City Center Proposal”) through a public-private partnership between the City and the Agency (collectively the “City”), and two developer entities, PSL City Center, LLC and DeGuardiola Properties, Inc. (collectively “Developer”). At the time the City Center Redevelopment Agreement was entered into, the Developer owned twenty-two (22) parcels subject to the City Center Redevelopment Agreement and the City owned the balance of the parcels. The Developer failed to fulfill its obligations under the City Center Redevelopment Agreement, defaulted on its loan, and failed to pay real estate property taxes on the twenty-two (22) parcels, resulting in the issuance of tax certificates on those parcels and a foreclosure action by the Developer’s lender.
The twenty-two (22) parcels were acquired by Relief Defendant US1 Real Estate Developments, LLC (“US1”). Subsequent to acquisition by US1, the United States Securities and Exchange Commission (“SEC”) filed a complaint against US1 and other defendants, alleging they violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making false or materially misleading representations to investors. Ultimately the twenty-two (22) parcels were placed into receivership by the SEC, the City negotiated the purchase of the parcels, and the City took title and control of the twenty-two (22) parcels.
The result of the acquisition of the twenty-two (22) parcels was the City holding ownership to all property subject to the City Center Redevelopment Agreement. Following the acquisition of the twenty-two (22) Securities and Exchange Commission Receiver-held parcels, the City sought public and staff input, conducted economic analysis, and made policy decisions for a new development plan for the property formerly known as City Center. A new plan for the property was adopted and memorialized in the City’s Revised Original CRA Master Plan approved by Resolution 25-CRA-02 and City Ordinance 25-44 (“Walton & One Project”). The Walton & One Project was created as the original City Center Proposal was deemed infeasible and no longer desirable. Because the City Center Proposal is no longer active and the entire area intended for the project is now under the City’s single ownership and control, the City Center Redevelopment Agreement is no longer necessary to ensure the City’s vision for the project is fulfilled as originally planned. The City and the Agency desire to terminate the City Center Redevelopment Agreement to enable the Walton & One Project.
Issues/Analysis: N/A
Financial Information: N/A
Special Consideration: This item is a companion to 2026-329 to be considered by City Council on the same date.
Location of Project: Walton & One is located at the southeast corner of US Highway One and Walton Road. It was formerly known as City Center.
Attachments:
1. Resolution 26-CRA-__
2. Exhibit A to the Resolution: Termination of Redevelopment Agreement
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26084-13
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.