Title
Possible action on Amended and Restated Performance Agreement with RMA Holdings, LLC
Requested Action
Consider a new or amended development agreement with RMA Holdings a/k/a AM-C Warehouse
Recommendation
Recommend to the City Council reimbursement of up to $214,000 to RMA Holdings for site improvements on the AM-C Warehouse project.
Description/History
There are currently two development agreements associated with the RMA cold storage project. In order to accommodate the land owner/developer and RMA, an agreement was approved with Heritage Partners, LLC, the land owner and, at the time, the developer, to reimburse up to $400,000 in costs associated with the drainage, mitigation credits and some water and sewer extensions. This Heritage Partners portion of the property is under contract, but not yet sold, to RMA. Heritage Partners is no longer the developer of the project.
At the July MEDC Board meeting, the board authorized a partial assignment of the Heritage Partners agreement to RMA. However, the two parties could not come to terms on a course of action.
MEDC and City staff have a verbal agreement that Heritage Partners will sell the remaining land to RMA, contingent on Heritage Partners being reimbursed $122,551.12 by MEDC for invoices presented to MEDC.
RMA is requesting a separate agreement for reimbursement of up to $214,000 from MEDC upon completion of the remaining improvements.
Justification
City staff will not allow construction of the buildings to go forward without an acceptable drainage plan which will go on the Heritage Partners portion of the land.
Funding Source
4A
Prepared By
Scott Welmaker, Director, MEDC