Item #04
Date: May 21, 2024
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Approval of a First Amendment to Disposition and Development Agreement for the BStreet Property Recommendation:
Pass a Motion to approve the First Amendment to the Disposition and Development Agreement (DDA) between the City of Marysville and Engstrom Properties, Inc. and the Presidio Companies, LLC (Collectively referred to as the “Developer”).
Background:
The original agreement dated February 6, 2023, outlined the sale and development of certain real property (known as the B-Street Property) owned by the City to the Developer. The Developer intends to acquire the property for the development of a Project consisting of a hotel (inclusive of. Banquet Hall), a restaurant, and a grocery store. Additional information about the scope and cost of improvements has been gathered since approval including a lot line adjustment separating the hotel, restaurant and grocery store parcels.
Purpose of The First Amendment:
The First Amendment to the DDA aims to: (1) increase the deposit by requiring the Developer to deliver an additional deposit of $210,000 to the Escrow Agent within five business days of the effective date of the Amendment; (2) amend the purchase price to $1,000,000 for the sale of the site; and (3) remove the obligation for the City to reimburse the Developer for the off-site improvements.
Conclusion:
The First Amendment to the DDA represents an important step in the development process, ensuring the agreement accurately reflects the parties’ intentions and responsibilities. Approval of this Amendment will facilitate the of the continued momentum of this development project in our City.
Goals:
Economic Development
Fiscal Impact:
The purchase price has decreased; however, the decrease is offset by a larger deposit amount from the Developer.