M&C Review


COUNCIL ACTION:  Approved on 2/21/2017 

DATE: 2/21/2017 REFERENCE NO.: **C-28115 LOG NAME: 17CLEARFORK_AMEND3
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of Amendment to City Secretary Contract No. 45586, Economic Development Program Agreement with Clearfork Development Company, LLC, as Previously Amended, to Extend the Completion Deadline for the First Phase of a Mixed-Use Development to be Located Near the Southwest Corner of West Vickery Boulevard and South Hulen Street (COUNCIL DISTRICT 3)


RECOMMENDATION:

It is recommended that the City Council authorize the execution of an amendment to the Economic Development Program Agreement with Clearfork Development Company LLC, City Secretary Contract Nos. 45586, 45586-A1, and 45586-A2, to extend the completion deadline for the first phase of a mixed-use development to be located near the southwest corner of West Vickery Boulevard and South Hulen Street from March 1, 2017 to September 1, 2017, to accommodate a clarification of the requirements of the Agreement.

 
DISCUSSION:

On February 18, 2014, (M&C C-26672) the City Council authorized execution of an Economic Development Program Agreement (Agreement) with Clearfork Development Company, LLC, or an affiliate, related to Clearfork, a mixed-use project to be constructed near the southwest intersection of West Vickery Boulevard and South Hulen Street due south of Chisholm Trail Parkway. The planned development was to be constructed in two phases, with the first phase to be completed by December 31, 2016.

This Agreement was executed as City Secretary Contract (CSC) No. 45586, and was later amended (CSC No. 45586-A1) to provide for a clarification in terminology from "certificate of occupancy for shell building space" to "certificate of completion for shell building space" to confirm that the Agreement reflected current practice for issuance by the Planning and Development Department.

The Agreement provides that deadlines established by the Agreement may be extended on account of events that cause delays and that are not the fault of the performing party (identified in the Agreement as events of force majeure).

In order to provide clarity to the rights of both the City and the Developer, on November 15, 2016, the City Council approved amending the Agreement to change the completion deadline for the first phase of the development from December 31, 2016 to March 1, 2017 due to documented inclement weather delays.

Since that time, requirements for completion of shell building space have been further clarified to support the intent of the Agreement and amendment. Staff recommends an extension to the completion deadline for the first phase of the development to September 1, 2017, to accommodate the additional work necessary to meet the shell building space requirements. Per the Building Official, in order to meet the shell space requirements, the property needs to have passed the following inspections:

1.  Final Building Inspection (which includes Final MEP Inspections);
2.  Final Fire Inspection; and
3.  Final Parkway Inspection.

This constitutes a finished Shell Building, ready for a tenant finish out, which is an interior-only remodel. This standard has now been set for shell building completion in Economic Development Program Agreements.

This project is located in COUNCIL DISTRICT 3, Mapsco 75X.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that approval of the above recommendation will have no material effect on the Fiscal Year 2017 Budget. Upon approval of this Agreement, the long term financial impacts will be included in the multi-year financial forecast.

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Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Robert Sturns (212-2663)
Additional Information Contact:
Ossana Hermosillo (212-2665)

 
 
ATTACHMENTS
  Form1295_Clearfork_Jan2017.pdf
  Map_Clearfork.pdf