EN10-041
STAFF REPORT
Operations Committee February 4, 2010
IPG Highcroft Village Reimbursement for Offsite Condemnation (EN10-041)
Recognition of developer reimbursement revenue from Impact Properties Group, LLC
Speaker: Mr. Tim Bailey
From: Tim Bailey, P.E., Engineering Director
Prepared by: Tommy Cline, Real Estate Manager
Approved by: Benjamin T. Shivar, Town Manager
Approved by: Michael J. Bajorek, Assistant Town Manager
Executive Summary: On March 8, 2007 , Town Council approved entering into a contract for easement acquisitions serving Highcroft Village (EN-07-079). The Developer, Impact Properties Group, LLC, was required to place funds totaling $82,000 on deposit in project SW1151 to cover expenses associated with the acquisition of the offsite easements. Expenses associated with the acquisition have exceeded funds originally deposited and additional funds are required. According to the terms of the agreement, the developer must provide all funds necessary to acquire the easements.
Background: Negotiations to acquire the required easements have not been successful and the easements were acquired through condemnation action on behalf of the Town. An additional $100,000 is required from the developer to cover expenses associated with continuing legal efforts. Impact Properties Group, LLC is contractually obligated to cover the costs of legal expenses and all costs covered by the Town to complete the acquisition, including any additional deposits and any costs associated with mediation and court costs. The developer revenue must be recognized to allow the Town to expend these funds.
Fiscal Impact: There will be no fiscal impact to the Town; the developer will cover all costs.
Staff Recommendation: Staff recommends recognition of $100,000 in developer reimbursement revenue to project SW 1151 to pay for existing legal expenses and other expenses associated with the acquisition.
Operations Committee February 4, 2010
IPG Highcroft Village Reimbursement for Offsite Condemnation (EN10-041)
Recognition of developer reimbursement revenue from Impact Properties Group, LLC
Speaker: Mr. Tim Bailey
From: Tim Bailey, P.E., Engineering Director
Prepared by: Tommy Cline, Real Estate Manager
Approved by: Benjamin T. Shivar, Town Manager
Approved by: Michael J. Bajorek, Assistant Town Manager
Executive Summary: On March 8, 2007 , Town Council approved entering into a contract for easement acquisitions serving Highcroft Village (EN-07-079). The Developer, Impact Properties Group, LLC, was required to place funds totaling $82,000 on deposit in project SW1151 to cover expenses associated with the acquisition of the offsite easements. Expenses associated with the acquisition have exceeded funds originally deposited and additional funds are required. According to the terms of the agreement, the developer must provide all funds necessary to acquire the easements.
Background: Negotiations to acquire the required easements have not been successful and the easements were acquired through condemnation action on behalf of the Town. An additional $100,000 is required from the developer to cover expenses associated with continuing legal efforts. Impact Properties Group, LLC is contractually obligated to cover the costs of legal expenses and all costs covered by the Town to complete the acquisition, including any additional deposits and any costs associated with mediation and court costs. The developer revenue must be recognized to allow the Town to expend these funds.
Fiscal Impact: There will be no fiscal impact to the Town; the developer will cover all costs.
Staff Recommendation: Staff recommends recognition of $100,000 in developer reimbursement revenue to project SW 1151 to pay for existing legal expenses and other expenses associated with the acquisition.
