Update to the Phase II and III timeline for commencement and completion of the construction is being requested by Central Orange Partners, LLC.
The Performance Agreement dated January 21, 2019 in Section 8 states, "Extensions. Unless otherwise provided herein, in the event Developer encounters unforeseen conditions sufficient to warrant an extension of time for the Commencement and Completion Periods provided herein, it may request such an extension from City, which may be granted or denied within City's discretion, which shall not be unreasonably withheld. " This Section 8 of the agreement allows the commencement of and the construction with minor revisions if warranted.
Phase I has been completed and has been fully leased since January 2021.
The requested change is that Phase II would begin commencement no later than December 31, 2022 with construction completed by December 31, 2024. This extension would provide an additional 11 months to the agreement approved by the Community Redevelopment Agency in November of 2021.
RECOMMENDATION:
Staff recommends the commencement of Phase II and III be extended from January 21, 2022 and changed to December 31, 2022
(Additional 11 months to the timeframe)
Staff recommends the construction of Phase II and III be extended from January 21, 2024 and allowed to be changed to December 31, 2024.
(Additional 11 months to the timeframe)
BUDGET / FISCAL IMPACT:
Exhibit "B" in the agreement allowed for Property Tax Rebates. The expectation was construction would be completed by 2020 and as a result the TIF incentive will be less for the project after the completion of the construction.