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HomeMy WebLinkAboutCRPS-10-023 - Execution of Centre Block Development AgreementREPORT TO: Committee of The Whole DATE OF MEETING: February 22, 2010 SUBMITTED BY: Lesley MacDonald, Director of Legal Services and City Solicitor PREPARED BY: Lesley MacDonald, Direcor of Legal Services and City Solicitor WARD(S) INVOLVED: Ward 1 DATE OF REPORT: February 22, 2010 REPORT NO.: CRPS - 10-023 SUBJECT: EXECUTION OF CENTRE BLOCK DEVELOPMENT AGREEMENT RECOMMENDATION: That the Mayor and Clerk be authorized to execute the Development Agreement with Andrin Investments Limited pertaining to the Centre Block Development; said agreement to be substantially in the form reviewed in-camera on February 22, 2010 and satisfactory to the City Solicitor; and further That the Mayor and Clerk be authorized to execute an amendment to the Agreement of Purchase and Sale with Andrin Investments Limited to make any corresponding housekeeping adjustments to the Agreement to ensure consistency with the Development Agreement. BACKGROUND: Following months of discussions and negotiations, representatives of the City and Andrin Investments Limited have completed the preparation of the Development Agreement. REPORT: The Development Agreement establishes the terms under which the actual project will proceed. The Development Agreement defines who is responsible for what and sets the condition precedents which the Developer must be in compliance with. Although it was originally contemplated that the Development Agreement would be executed by November 30, 2009, more time was needed time and the deadline for executing the Development Agreement was extended on the condition that the start date for the timing in the Agreement of Purchase and Sale and the Development Agreement to transact the property and commence construction of the various phases of the project remained at November 30, 2009, notwithstanding the Development Agreement would not be executed until February. The changes made to the Development Agreement since the last time Council reviewed it are technical in nature and do not affect the substance of the agreement. The changes were made at the request of Council. The execution of the Development Agreement further advances the project and documents both the Developer's and the City's commitment to the Centre Block Project FINANCIAL IMPLICATIONS: The City's previous commitment with respect to the construction and retention of one level of the parking garage. CONCLUSION: It is now in order for the City to execute the Development Agreement with Andrin Investments Limited. ACKNOWLEDGED BY: Rod Regier, Executive Director of Economic Development