Sparks Redevelopment Agency Meeting (following the City Council Meeting) 2/26/2018 2:00:00 PM

    Monday, February 26, 2018 2:00 PM
    Council Chambers, Legislative Bldg, 745 4th St., Sparks, NV

Business Items: 6.2

Title: Consideration, discussion and possible approval of Amendment No. 1 to the Disposition and Development Agreement (AC-SRA-316) between the Redevelopment Agency of the City of Sparks, the City of Sparks and SWD Partners, LLC to provide SWD Partners, LLC the option to construct apartments at 955 C Street and, at a later date, request City of Sparks approval to convert the apartments to condominium units.
Petitioner/Presenter: SWD Partners, LLC/Armando Ornelas, Assistant Community Services Director
Recommendation: The City Manager recommends that the Redevelopment Agency approve Amendment No. 1 to the Disposition and Development Agreement between the Redevelopment Agency, the City of Sparks and SWD Partners, LLC.
Financial Impact: None.
Business Impact (Per NRS 237):
     A Business Impact Statement is not required because this is not a rule.
Agenda Item Brief:

This agenda item asks the Redevelopment Agency to approve Amendment No. 1 to the Disposition and Development Agreement (Agreement) between the Redevelopment Agency of the City of Sparks, the City of Sparks and SWD Partners, LLC (Developer). The City Council and Redevelopment Agency approved the Agreement on December 11, 2017. The Agreement granted the Developer the right to acquire an Agency-owned parcel located at 955 C Street and improved with a public parking garage for the purpose of renovating the parking garage and constructing, atop of the garage, a new high-density apartment building referred to as The Deco (Project).

The proposed Amendment No. 1 would permit the Developer to construct the apartment component of the Project and then seek City approval to convert the apartments to condominium units at a future date. Conversion is not required and, per Amendment No. 1, would be subject to all applicable restrictions and requirements of Nevada law and the Sparks Municipal Code in effect at the time the Developer requests conversion. 



Background:

On December 11, 2017, the Redevelopment Agency and the Sparks City Council approved the Agreement with SWD Partners, LLC. The Agreement, which is attached for reference, provides the Developer the right to acquire a parcel located at 955 C Street that is improved with a public parking garage for the purpose of renovating the parking garage and constructing, atop of the garage, a new high-density apartment building referred to as The Deco (Project).

As specified in the Agreement, the Developer is permitted to construct a minimum of 175 and a maximum of 212 apartment units plus administrative offices, maintenance facility, lobby, clubhouse/gym, and swimming pool. The Project also includes renovation of the existing parking garage to provide parking for Project residents and the general public.



Analysis:

The proposed Amendment No. 1 to the Agreement modifies Article 3.2.1.A. to permit the Developer to construct the apartment component of the Project, as specified in the approved Agreement, and then seek City approval to convert the apartments to condominium units at a future date. Conversion is not required and, per Amendment No. 1, would be subject to all applicable restrictions and requirements of Nevada law and the Sparks Municipal Code in effect at the time the Developer requests conversion.

If converted to condominiums, the Developer could then choose to sell and/or continue leasing the individual units. This change would provide the Developer and the Developer’s lender(s) and investor(s) another possible “exit strategy.”

City staff supports the Developer’s request and recommends approval of Amendment No. 1.



Alternatives:
  1. The Redevelopment Agency can approve Amendment No. 1.
  2. The Redevelopment Agency can modify Amendment No. 1, subject to the consent of the Developer.
  3. The Redevelopment Agency can reject Amendment No. 1.


Recommended Motion:

I move to approve Amendment No. 1 to the Disposition and Development Agreement between the Redevelopment Agency, the City of Sparks and SWD Partners, LLC to provide SWD Partners, LLC the option to construct apartments at 955 C Street and, at a later date, request City of Sparks approval to convert the apartments to condominium units.



Attached Files:
     Amendment No. 1 signed by J Witt.pdf
     Recorded DDA.pdf
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