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HomeMy WebLinkAboutResolution 2015-038 Approving Mayor to execute the 1st amendment to Continental Ranch Parcel 60 Dev AgreementMARANA RESOLUTION NO, 2015 -038 RELATING TO DEVELOPMENT; APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE T HE FIRST AMENDMENT TO CONTINENTAL RANCH PARCEL 60 DEVELOPMENT AGREEMENT WHEREAS the Town approved the Continental Ranch Parcel 60 Development Agreement, a retail development tax Incentive agreement, by the adoption of Marana Resolution No. 2013-096 on October 15, 2013; and WHEREAS the developer /property owner paid $398,356.72 for the construction of public infrastructure known as the Tiffany Loop Potable Water Line for the benefit of the land that was the subject of the Continental Ranch Parcel 60 Development Agreement- and WHEREAS the Town accepted the Tiffany Loop Potable Water Line for public ownership and maintenance, and established its estimated value at $345,000, by the adoption of Marana Resolution No. 2014 -123; and WHEREAS the construction of the Tiffany Loop Potable Water Line was not procured In strict compliance with State of Arizona and Town public infrastructure construction procurement laws and procedures, as required by paragraph 6 of the Continental Ranch Parcel 60 Development Agreement; and WHEREAS the Town finds by its adoption of this resolution and by the adoption of Marana Resolution No. 2014 -123 that, despite non - compliance with procurement laws and procedures, the Tiffany Loop Potable Water Line's reasonable value is at least $345,000; and WHEREAS the Mayor and Council find the terms and conditions of the First Amendment to Continental Ranch Parcel 60 Development Agr eement are in the best interest of the Town and is consistent with the Town's desire to promote economic development within the Town. NOW, rl _'Hf RE1� ORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE rFO WN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The First Amendment to Continental Ranch Parcel 60 Development Agreement is hereby approved. SECTION 2. The Mayor is hereby authorized and directed to execute, and the Town Clerk is hereby authorized and directed to attest to, the F irst Amendment to Continental Ranch Parcel 60 Development Agreement attached to and incorporated by this reference in this Resolution as Exhibit A., for and on behalf of the Town of Marana. SECTION 3. The various Town officers and employees are authorized and directed to perform all acts necessary or desirable to give effect to this resolution. f 00041581.DOC X 1) Marana Resolution No. 2015-038 4/16/2015 2;31 PM FJC: PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 28 day of April, 2015. e Mayor Ed Honea !;E� -3 z 0 FORM. {00041581.DQCX 1} Marana Resolution No. 2015 -038 -2- 4116/2015 2:31 PM FJC F. ANN RODRIGUEZ, RECORDER Recorded By: KMS ov p .11V. DEPUTY RECORDER !ZV C1 4 935 3 .. SMARA TOWN OF MARANA PICKUP Izo r raw SEQUENCE: NO. PAGES: AAG PICK UP AMOUNT PAID: FIRST AMENDMENT TO CONTINENTAL RANCH PARCEL F)O DEVELOPMENT AGREEMENT TOWN OF MARANA, ARIZONA THIS FIRST AMENDMENT TO CONTINENTAL RANCH PARCEL 60 DEVELOPMENT AGREEMENT (this "Amendment ") is made and entered into by and among the TOWN OF MARANA, an Arizona municipal corporation (the ""Town"),, CONTINENTAL RANCH DEVELOPMENT, LLC, an Arizona limited liability company (the "Developer"), and HURON FARM MANAGEMENT, LLLP, an Arizona limited liability limited partnership ("'Huron"). The Town, the Developer, and Huron are sometimes collectively referred to as the "Parties," any one of which is sometimes individually referred to as a "Party." RECITALS A. The Town and the Developer entered into the "Continental Ranch Parcel 60 De- velopment Agreement" dated October 18, 2013, effective November 18, 2013, and rec- orded in the office of the Recorder of Pima County, Arizona, on October 25, 2013, at Sequence 20132980130 (the "Original Agreement "). B. The Original Agreement facilitated reimbursement of certain public infrastructure costs incurred before November 18, 2015, associated with the development of what was an unimproved vacant parcel of land located on Tiffany Loop then bearing Pima Coun- ty Assessor's parcel number 226-- 08 -010B and referred to in the Original Agreement and this Amendment as the "Owner's Land." C. The Owner's Land has now been divided, and Huron now owns that portion of the owner's Land bearing Pima county Assessor's parcel number 226.08 --0200 ( "Hu- ron's Land"'). D. By virtue of its purchase of a portion of the Owner's Land, Huron is a partial suc- cessor in interest to the Developer for purposes of the Original Agreement. E. Huron's Land is now improved with a John Deere dealership, and Huron and/or Developer paid $398,356.72 for the installation of certain public potable water im- provements (the "Tiffany Loop Potable water Line ") to serve the Owner's Land (includ- ing Huron's Land). F. By the adoption of Marana Resolution No. 2014 -123, the Town accepted the Tiffa- ny Loop Potable water Line for public ownership and maintenance, and established the estimated value of the Tiffany Loop Potable water Line at $345,000. (00041563.DOC tiIRS'r AMENDMENT O CONTINENTAt. RANCH PARCEL 60 DEVELOPMENT AGREEMENT 4/15/2015.1:20 PM I`jC T-1 - 20151210121 6 05/01/2015 11:00 $7.50 G. Developer and Huron have requested reimbursement from the Town of the total cost to install the Tiffany Loop Potable Water Line. H. Although competitive bids were obtained, the procurement process for the con- struction of the Tiffany Loop Potable Water Line did not comply with State of Arizona and Town public infrastructure construction procurement laws and procedures, as required by paragraph 6 of the original Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated into this Amendment as though fully restated here, and the mutual covenants set forth in this Amendment and in the original Agreement, the Parties hereby agree as follows: 1. Public improvements construction and reimbursement. Paragraph 6 of the original Agreement is modified to waive the public procurement requirement for the Tiffany Loop Potable Water Line. 2. Reimbursement amount. The total amount owed by the Town for the Tiffany Loop Potable Water Line is $345,000. 3. Reimbursement Payments. All Reimbursement Payments under paragraph 10 of the Original Agreement, as modified by this Amendment, shall be paid to the Developer, who in turn shall be solely responsible for any reimbursements owed to Duran under the original Agreement as modified by this Amendment. Developer shall retain the right to receive Reimbursement Payments as provided by paragraph 10 of the original Agreement, as modified by this Amendment, regardless of the status of title or owner- ship of any or all of the owner's Land. 4. Effect. Capitalized words and phrases in this Amendment shall have the meanings set forth in the original Agreement as modified by this Amendment, and the terms of the original Agreement shall continue in full force and effect except as expressly modi- fied by this Amendment. 5. Term. This Amendment shall become effective upon its execution by all of the Parties and, unless sooner terminated by the mutual consent of the Parties, shall auto- matically terminate and shall thereafter be void for all purposes on November 18, 2028, which is the 15th anniversary of the original Agreement's Effective Date. 6. Notices. Paragraph 6 of the Original Agreement is amended by adding Huron's notice information, as follows: If to Huron: HURON FARM MANAGEMENT, LLLP 11111 W. McDowell Road. Avondale, Arizona 85323 Telephone: (623) 936 -2081 100047.563.DOC /I FIRST' AMENI)MI N'I' 'I'C) CC)N`I'INEN'I'AI.. RANCII PAil cl t. 6(3 D :vI I.,OI'MI;N'I' .AGRI EMfi'N'I' 4/ 15/2[315 7.:20 PM 1 jC 2 7. Miscellaneous. (A) This Amendment ma be executed in multiple counterparts, each of which shall, for all purposes, be deemed an ori and all of which, taken to shall constitute one and the same a (B) This Amendment shall be bindin upon and inure to the benefit of the Parties and their respective successors in interest and assi provided, however, that no assi of this Amendment shall in an wa relieve the assi of its obli tions under this Amendment, and an sale of an portion of the Owner's Land shall not affect Developer's ri to receive Reimbursement Pa (see para 3 of this Amendment). (C) This Amendment is sub to A.R.S. § 38-511, which provides for cancella- tion of contracts in certain instances involvin conflicts of interest. IN WITNESS WHEREOF, the Parties have executed this Amendment as of the last date set forth below their respective si THE " "Town ": The "Developer": TOWN OF MARANA, an A 'zona municipal CONTINENTAL RANCH DEVELOPMENT,, LLC, corporation_ /I 'i an Arizona limited liabilit compan By: ■ %.,O� — ' I-,-' A 6Z V Y : 1/ PE Honell Ma Mark Schlossber Mana Date: Date: ATTEST: "Huron": HURON FARM MANAGEMENT,, LLLP, an Arizona limited liabilit limited o el C. onson, Cler partnership APPROVE A To F m: HURON FARms GP,, L•L.C., an Arizona limited liabilit compan its General Partner nk Cass y ," Town Att e 7 By: Thomas F. Ros y , na��r Date: V 100041563. DOC FIRST A TO CONTINENTAL RANCH PARCEL 60 DEVELOPMENT AG REEMENT 4/15/20151:20PMrJC -3- 7. Miscellaneous. ( A ) This Amendment ma be executed in multiple counterparts, each of which shall, for all purposes, be deemed an ori and all of which, taken to shall constitute one and the same a (B) This Amendment shall be bindin upon and inure to the benefit of the Parties and their respective successors in interest and assi provided, however, that no assi of this Amendment shall in an wa relieve the assi of its obli tions under this Amendment, and an sale of an portion of the Owner's Land shall not affect Developer's ri to receive Reimbursement Pa (see para 3 of this Amendment). (C) This Amendment is sub to A.R.S. § 38-511, which provides for cancella- tion of contracts in certain instances involvin conflicts of interest. IN WITNESS WHEREOF, the Parties have executed this Amendment as of the last date set forth below their respective si THE "Town". • TOWN OF MARANA,. an Arizona municipal corporation so Ed Honea, Ma Date: ATTEST'. J ocel y n C. Bronson, Clerk APPROVED AS To FORM: Frank Cassid Town Attorne The "Developer": CONTINENTAL RANCH DEVELOPMENT,, LLC., rizona. limited an A liabilit compan B Mark Schlossber Mana Date: Ll A01 ,.,2 /— / _} "Huron": HURON FARM MANAGEMENT,, LLLP,, an Arizona limited liabilit limited partnership HURON FARMS GP, L.L.C., an Arizona limited liabilit compan its General Partner Lows Thomas F. Rosztocz Mana Date: (00041563.DOC FiRsT AMENDMENT TO CONTINENTAL RANCH PARCEL 60 DEVELOPMENT AGREEMENT 4/15/20151 :20 PM FJC -3- STATE OF ARIZONA County of � SS The foregoing instrument was acknowledged before me on by Mark Schlossberg, Manager of CONTINENTAL RANCH DEVELOPMENT LLC an Arizona limited liability company, on behalf of the LLC. (Seal) Notary Public STATE OF ARIZONA 0.) County of I�0 1 ss The foregoing instrument was acknowledged before me on � � � 2 �� � `� by Thomas F. Rosztoczy, Manager of HurtoN FArtMS GP, L.L.C., an Arizo a lir6ited liability company, General Partner of HURON FARM MANAGEMENT, LLLP an Arizona limited liability limited partnership, on behalf of the (Seal) u Notary Public 'REiBECCA .J ARMNTA w Notary Public Arizona aricopa County my Cam. Expires May 29, 2017 1 00041563.DOC /I Fiics'I' AMI NI)MI?.N'I" ro CON`rINEN'I'Ai, RANCH P ARCEL 60 DEVELOPMI N'I' AGRE1 MI ?N' 4/ 15/20*151:20 PM FjC -4- IIAIA / 6L STATE OF AT=NA ss Count of —SC&^ P fa i C10MARA GALEANO Commission # 2083888 Z Notar Public - California z San Die Count Mv Comm. EXPir" Sop 29, 2018 The fore instrument was acknowled before me on 17 s , _ r b Mark Schlossber Mana of CONTINENTAL RANCH DEVELOPMENT UC, F an Arizona limited liabilit compan on behalf of the LLC. ( Seal ) Notar Public STATE OF ARIZONA Count of ss The fore instrument was acknowled before me on b Thomas F. Rosztocz Mana of HURON FARMS GP,, L.L.C., an Arizona limited liabilit compan General Partner of HURON FARM MANAGEMENT, LLLP, an Arizona limited liabilit limited partnership, on behalf of the LLLP. (Seal) Notar Public {00041563.DOC FIRST AMENDMENT TO CONTINENTAL RANCH PARCEL 60 DEVELOPMENT AGREEMENT 4/15/20151:20 PM FJC -4-