2013 2:00:00 PM

Monday, February 11, 2013 2:00 PM
745 Fourth St, Sparks, NV 89431

General Business: 6.5

Title: FIRST READING and possible discussion of Bill No. 2654, an ordinance to approve a Development Agreement between the City of Sparks and KM2 Development, Inc. (as “Master Developer”) and Rising Tides LLC (as “Owner”) for a portion of the Kiley Ranch North Project and other matters properly relating thereto.

Petitioner/Presenter: Community Services, Rising Tides LLC, & KM2 Development, Inc./Armando Ornelas, City Planner

Recommendation: This is a first reading of the proposed ordinance; no action is to be taken at this time.

Financial Impact: None

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief: A separate agenda item requests that the Sparks City Council cancel the 2004 development agreement between the City and Kiley Ranch Communities, the former owner and master developer for the Kiley Ranch North Project. Kiley Ranch Communities’ bankruptcy put them in default of the Development Agreement and their subsequent loss of ownership of the property negated the need for the 2004 agreement. This proposed ordinance provides for approval of a new Development Agreement with KM2 Development, Inc. (as Master Developer) and Rising Tides LLC (as Owner), which acquired and control a portion of the Kiley Ranch North property formerly owned by Kiley Ranch Communities. The proposed Development Agreement applies only to those portions of Kiley Ranch North presently under the legal or equitable control or ownership of Rising Tides LLC. Like its predecessor agreement, the Development Agreement is necessary to allow for the continued phasing of final planned development handbooks for the Kiley Ranch North.

Background: In 2004, the City of Sparks entered into an agreement for development of approximately 808 acres of land of the Kiley family ranch. The City also granted tentative approval of a planned development handbook for Kiley Ranch North that year. In 2010, Kiley Ranch Communities filed a voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code. Kiley Ranch Communities’ bankruptcy put them in default of the Development Agreement and their subsequent loss of control of the property negated Kiley Ranch Communities’ need for the 2004 agreement. A separate agenda item requests that the Sparks City Council cancel the 2004 Development Agreement. This proposed ordinance is for approval of a new Development Agreement with KM2 Development, Inc. (as Master Developer) and Rising Tides LLC (as Owner), which acquired and control a portion of the Kiley Ranch North property formerly owned by Kiley Ranch Communities. This Development Agreement applies only to those portions of Kiley Ranch North presently under the legal or equitable control or ownership of Rising Tides LLC.

Analysis: Like the 2004 agreement, this proposed Development Agreement permits the phased development of Kiley Ranch North. In particular, it allows for final handbooks to be approved beyond the one year period that would otherwise apply per Nevada law. A specific basis for the City entering into the agreement is to assure a planned community that includes a fiscally sound density and mixture of residential products, business park facilities, common area, open space and the public facilities contemplated by the Tentatively Approved Handbook for Kiley Ranch North. For the owners and master developer, the agreement is intended to assure a degree of certainty for the duration of the build out of the project.

Alternatives: The City Council can defer the first reading of the ordinance and/or provide alternative direction to staff regarding the proposed Development Agreement.

Recommended Motion: None

Attached Files:

Exhibit A to Dev Agreement w Rising Tides & KM2.pdf

ExhibitB to Development Agreement w Rising Tides & KM2.pdf

Ordinance for new Kiley North Dev Agreement 2-11-13.pdf

Rising Tides KM2 Dev Agreement for Kiley North 2-13.pdf

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