Title
Approve Assignment of the Development Agreement with Ruby-07-SPMTGE, LLC for Public Improvements to Property Within Reinvestment Zone Number 1, City of Mansfield
Requested Action
Approve assignment of Development Agreement.
Recommendation
Approve assignment of Development Agreement.
Description/History
The developer has asked that the city approve an assignment of the Development Agreement with Ruby-07-SPMTGE, LLC For Public Improvements Within Reinvestment Zone Number 1, City of Mansfield, which is the SouthPointe residential development. Currently Ruby-07-SPMTGE, LLC (Ruby) is the primary owner and developer of the Property. At the time the agreement was executed, IPRR South Pointe-1, LLC (IPRR) owned part of the Property, and was a party to the agreement as well. Both parties are wholly owned by another entity. For financing purposes, the developer has asked that all of the obligations of the Owner and the payments to the Owner under the agreement be assigned to IPRR. While this is a nonsubstantive change, the terms of the agreement require that it be approved by the City Council. The City Attorney has reviewed and approved the proposed assignment. To recap:
1. No obligations or deal terms are being modified
2. The assignee party, IPRR, has 90%+ ownership with Ruby and was one of the signatories to the original agreement as Owner of 88 acres.
3. Ruby will still be liable for all duties and obligations under the Agreement. The City will just expand the current joint liability of IPRR and Ruby from the 88 acres IPRR owns to the entire development.
4. After the assignment, repayments will be paid to IPRR instead of Ruby.
Justification
N/A
Funding Source
N/A
Prepared By
Betsy Elam, City Attorney, TOASE