HomeMy WebLinkAbout2010 01 25 Regular 610 Vistawilla Office Center Phase II Completion Status COMMISSION AGENDA
Consent Informational
ITEM 610 Public Hearing
Regular
Janua ry 25. 2010 4GR.k/DEPT.
Regular Meeting Authorization
REQUEST: The City Attorney requests the City Commission provide direction regarding the
completion status of the Phase II office building at the Vistawilla Office Center located along State Road
434, and to grant the property owner additional time to complete the Phase 1I office building.
EXECUTIVE SUMMARY:
In 2007, the City provided a $200,000 economic development grant to the University of Central Florida
in order to bring the expansion of the UCF business incubator program to the Vistawilla Office Center
located on SR 434 in Winter Springs. In conjunction with that grant, Vistawilla Office Center, LLC and
the City entered into an agreement under which Vistawilla Office Center, LLC agreed to complete
construction of a second, phase II office building by October 29, 2009. Further, Vistawilla Office
Center, LLC agreed to pay the City up to $200,000 if the Phase II building was not completed as
scheduled. Although the City Commission approved final engineering for the Phase II office building,
the building has not been constructed apparently due to economic conditions. Vistawilla Office Center,
LLC has requested a two year extension of time on all permits and development orders for the Phase II
office building pursuant to Senate Bill 360. Given the request for an extension under SB 360, the City
Attorney recommends that the City Commission extend the completion date of the Phase II office
building until October 29, 2011.
CONSIDERATIONS:
1. In light of the current economic climate for real estate development, the City Commission requested to
review the current status of the proposed completion of the Phase II Building at the Vistawilla Office
Center, and to provide future direction related to the completion of the Phase II Building.
2. In the summer of 2007, the late Tom Corkery, one of the managers of Vistawilla Office Center, LLC,
approached the City about the possibility of bringing an expansion of the UCF Business Incubator
Program to the Vistawilla Office Center located on State Road 434 in the City of Winter Springs.
3. Ultimately, the City and Seminole County were successful in bringing the business incubator to the
City and the City Commission approved an Economic Development Grant Agreement with the
University of Central Florida, dated November 27, 2007. Seminole County also provided a grant.
REGULAR MEETING JANUARY 25, 2010
REGULAR AGENDA ITEM "610"
PAGE 2 OF 3
4. Under the Economic Development Grant Agreement, the City agreed to pay $200,000 to UCF. UCF
agreed to locate and operate a business incubator program within the City of Winter Springs in a
minimum of 10,000 square feet of office space at the Vistawilla Office Center on State Road 434 for a
period of least three years.
5. In conjunction with the City's commitment to UCF under the Economic Development Grant
Agreement, Vistawilla Office Center, LLC and the City entered into the Fifth Modification of
Developer's Agreement, dated October 29, 2007. Under the Fifth Modification, Vistawilla Office Center
LLC agreed to apply for and obtain building permits for the construction of the Phase II office building
within six (6) months of the effective date of the Fifth Modification. Vistawilla also agreed to complete
construction and obtain a certificate of occupancy for the Phase II office building (excluding tenant
improvements) within two (2) calendar years from the effective date of the Fifth Modification
"Completion Date The Completion Date was scheduled to be October 29, 2009.
6 On September 7, 2006, Final engineering for the Phase II office building was approved by the City
Commission. However, as noted by some of the members of the City Commission at the December 14,
2009 meeting, it appears that current economic conditions have negatively impacted the construction of
the Phase II building, and the commencement of construction has been indefinitely delayed until
economic conditions have improved. Consequently, Vistawilla Office Center, LLC. failed to complete
the construction of the Phase II office building by the scheduled deadline of October 29, 2009.
7. Paragraph 2.3 of the Fifth Modification provides that if Vistawilla Office Center, LLC fails to
complete construction and obtain the certificate of occupancy for the Phase II office building by the
Completion Date, Vistawilla Office Center, LLC will pay to the City $50,000, and $50,000 every year
thereafter that the Phase II building has not been completed, up to a cumulative total of $200,000.
8. On December 22, 2009, the engineer of record (David Schmitt Engineering, Inc.) for the Phase II
Building formally requested a two year extension of time under Senate Bill 360, which went into effect
June 1, 2009. In general, the permit extension provisions of SB 360 are intended to provide developers
some permit relief due to the poor economic climate in the real estate market. The law requires that a
municipality extend and renew for two (2) years any previously issued and active permits or other
development order that had an expiration date between September 1, 2008 and January 1, 2012. The law
requires that all requests for an extension be submitted no later than December 31, 2009. It appears that
Mr. Schmitt's request was timely filed with the City.
9. Given Mr. Schmitt's request under SB 360, and the concerns voiced by some members of the City
Commission at the December 14, 2009 meeting, the City Attorney recommends that the City Commission
consider the October 29, 2009 Completion Date deadline extended until October 29, 2011. Further, the
City Commission can conduct additional periodic reviews of this deadline, and provide additional
direction, as the revised deadline approaches.
10. If the City Commission agrees with the City Attorney's recommendation, the City Attorney will
work with staff to memorialize the City Commission's decision in writing.
REGULAR MEETING JANUARY 25, 2010
REGULAR AGENDA ITEM "610"
PAGE 3 OF 3
FISCAL IMPACT:
The construction of the Phase II office building will have a positive impact on the City's commercial tax
base when it is constructed. For example, the current assessed value of the Phase I Vistawilla Office
Center building is $5,213,271. The Total 2009 Tax Bill Amount for that building is $94,335, of which
$12,884.08 was for Winter Springs Ad Valorem; $573.46 for Winter Springs Bonds; and $12,146.40 for
Fire. That positive tax impact was intended to off -set the City's economic development grant to the UCF
for the business incubator program.
In the event the Phase II office building is not completed, Vistawilla Office Building, LLC has a
contractual obligation to pay the City up to $200,000 depending on how long it takes them to complete
construction of the Phase II building after the completion date. That obligation is memorialized in the
Fifth Modification of Developer's Agreement which is recorded in Seminole County ORB 6858, Pgs
1286 -1289.
COMMUNICATION EFFORTS:
1. This agenda item is not subject to any special advertising requirements. Therefore, this item
was only posted at City Hall and posted on the City's web site.
2. A copy of this agenda item was provided to one of the listed managers of the Vistawilla Office
Center, LLC, David McLeod, prior to the meeting.
RECOMMENDATIONS:
The City Attorney recommends that the City Commission extend the completion date
deadline for the Phase II office building at the Vistawilla Office Center until October 29, 2011, in
light of provisions set forth in SB 360. Further, the City Commission should conduct additional
periodic reviews of the completion deadline as conditions warrant.
In addition, the City Attorney recommends that the City Commission authorize the City
Attorney prepare a legal instrument to memorialize the City Commission's decision made
pursuant to this agenda item, and authorize the City Manager to execute the same on behalf of
the City.
ATTACHMENTS:
1. Fifth Modification of Developer's Agreement
2. Letter to Brian Fields, City Engineer, from Dave Schmitt Engineering, Dated December 22,
2009
111111111 1111111111111111111111111111H 1111 ;111111111111
MARYANNE MUHSE CLERK OF CIRCUIT COURT
SEMINOLE COUNTY
81< 06858 Pp 1286 1289; 14pgs)
CLERK'S 41 2007155599
RECORDED 11/02/2007 01157:15 PM
RECORDING FEES 35.50
THIS INSTRUMENT WAS PREPARED BY RECORDED BY L McKinley
AND SHOULD BE RETURNED TO:
Anthony Garganese
City Attorney of Winter Springs
rown, Garganese, Weiss D'Agresta, P.A.
L2 55 E. Robinson St., Suite 660
Orlando, FL 32801
(407) 425 -9566
FOR RECORDING DEPARTMENT USE ONLY
FIFTH MODIFICATION OF DEVELOPER'S AGREEMENT
THIS FIFTH MODIFICATION OF DEVELOPER'S AGREEMENT (the "Agreement is
made and executed this "da of October, 2007, by and between the CITY OF WINTER
SPRINGS, a Florida Municipal Corporation (the "City"), whose address is 1126 East S.R. 434, Winter
Springs, Florida 32708, and VISTAWILLA OFFICE CENTER, LLC, a Florida limited liability
company "Vistawilla whose address is 1491 East S.R. 434, Unit 103, Winter Springs, Florida
32708.
WITNESSETH:
WHEREAS, Robert Yeager, Trustee "Yeager and the City previously entered into a
binding Developer's Agreement dated April 13, 1998 and recorded May 13, 1998 in Official Records
Book 3424, Page 0611, of the Public Records of Seminole County, Florida (the "Original Developer's
Agreement"), relating to certain real property located in Seminole County, Florida and more
particularly described therein (the "Property and
WHEREAS, Vistawilla purchased the Property from Yeager and is the current fee simple
owner of the Property; and
WHEREAS, Vistawilla and the City previously amended the Original Developer's Agreement
pursuant to that certain First Modification of Developer's Agreement dated February 27, 2006 and
recorded March 8, 2006 in Official Records Book 6151, Page 42 (the "First Modification and that
certain Second Modification of Developer's Agreement dated June 12, 2006 and recorded June 27,
2006 in Official Records Book 6304, Page 36 (the "Second Modification and that certain Third
Modification of Developer's Agreement dated December 18, 2006 and recorded January 19, 2007, in
Official Records Book 6561, Page 0610 (the "Third Modification and that certain Fourth
Modification of Developer's Agreement dated March 27, 2007 and recorded April 4, 2007, in Official
Records Book 6656, Page 0823 (the "Fourth Modification all of the Public Records of Seminole
County, Florida (the Original Developer's Agreement, the First Modification, the Second
Modification, the Third Modification, and the Fourth Modification are hereinafter collectively referred
to as the "Developer's Agreement and
Fifth Modification to Developers Agreement
City of Winter Springs and Vistanilla Office Center, LLC
WHEREAS, parties acknowledge that the University of Central Florida desires to create a
business incubator program within the City of Winter Springs; and
WHEREAS, in furtherance of this desire, the University of Central Florida is seeking to lease
office space (approximately 10,000 square feet) within the City of Winter Springs; and
WHEREAS, Vistawilla has offered to lease space in the Vistawilla Office Building located on
State Road 434 to the University of Central Florida for the business incubator program; and
WHEREAS, in order to provide an economic incentive for the University of Central Florida to
locate in the City of Winter Springs, the City Commission of Winter Springs approved, by separate
agreement with the University of Central Florida, an economic incentive grant for purposes of paying
for the upfront build out costs associated with establishing the new facility at the Vistawilla Office
Building; and
WHEREAS, as consideration for issuing the grant to the University of Central Florida,
Vistawilla agreed and committed to commencing and completing construction of the Phase II office
building on the subject property under the terms and conditions set forth herein; and
WHEREAS, Vistawilla and the City have agreed to amend the Developer's Agreement in
order to memorialize this agreement and binding commitment relative to the Phase II office building.
NOW THEREFORE, in consideration of the mutual promises and covenants contained
herein, the parties mutually agree to amend the Developer's Agreement as follows:
1.0 Recitals; Capitalized Terms. The recitals set forth above are true and correct and are
incorporated herein by this reference. Unless otherwise set forth herein, all capitalized terms utilized
herein shall have the same meaning as set forth in the Developer's Agreement.
2.0 Phase II Development Schedule.
2.1 Vistawilla agrees to apply and obtain building permits for the construction of the Phase
II office building within six (6) months of the effective date of this Fifth Modification. The City will
not unreasonably delay or withhold said permits.
2.2 Vistawilla agrees to complete construction and obtain a certificate of occupancy for the
Phase II office building (excluding tenant improvements) within two (2) calendar years from the
effective date of this Fifth Modification "Completion Date
2.3 In the event that Vistawilla fails to complete construction and obtain the certificate of
occupancy for the Phase II office building by the Completion Date, Vistawilla shall pay to the City
Fifty Thousand and No /100 Dollars ($50,000.00). Thereafter, for every year after the Completion
Date that the Phase II office building has not been completed and obtained the aforesaid certificate of
occupancy, Vistawilla shall pay to the City an additional Fifty Thousand and No /100 Dollars
($50,000.00); provided however, the total payments under this section shall not exceed a cumulative
total of Two Hundred Thousand and No /100 Dollars ($200,000.00). Any payments required under
this section 2.3 shall be delivered to the City within three (3) business days after the date requiring the
payment.
Fifth Modification to Developer's Agreement
City of Wintcr Springs and Vistawilla Office Center, LLC
3.0 Affect of Amendment. All other terms and conditions of the Developer's Agreement,
not in conflict with this Amendment, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seal on the date first
above written.
CITY e f TER SPRINGS
By:
John F. Bush, Mayor
ATTEST: F
By:
'Lorenzo Luaces, City Clerk
q '``tr, APPROVED AS TO FORM AND LEGALITY
X3 de. For the use and reliance of the City of Winter Springs,
E, C Florida only.
O f`: a 2
o CITY SEA -ID Date:
Z y By: AV
,n t1 Anthony Garganese, City Attorney for the
c.;', City of Winter Springs, Florida
STATE OF FLORIDA
COUNTY OF SEMINOLE
Personally appeared before me, the undersigned authority, John F. Bush and Andrea
Lorenzo- Luaces, well known to me to be the Mayor and City Clerk respectively, of the City of
Winter Springs, Florida, and acknowledged before me that they executed the foregoing
instrument on behalf of the City of Winter Springs. as its true act and deed, and that they were
duly authorized to do so.
Witness my hand and official seal th day of -L-�f 2007.
OTARY SEAL f i
eta Public
Notary Public Slate 01 Florida My dommission expires: f t
Andrea Lorenzo- Luaces
1 ✓Y Comm scion DD664334
i,
r Ex ves 05/D9t2011
Finh Modification to Developer's Agreement
City of Winter Springs and Vistawifa Office Center, LLC
3
Signed, sealed and delivered in the VISTAWILLA OF'F'ICE CENTER, LLC, a
presence of the following witnesses: Florida limited liability company
By: 411111
Signature of witness Thomas J. Ci ery, Presiden/
Sc 011 ..Sp '1reS
Printed Name of Wilnets
Date: Ia- 0-.l"69
4 Al tk. 1
Si: •a•.reif t1 7 r
iL... [4 L, er
Printed Name Tr itn
STATE OF I-
or
COUNTY OF cif YU !'1 r5 I. -e_ nn
The foregoing instrument was acknowledged before me this o' E� day of Q( e- (2007,
by Thomas J. Corkery, as President of VISTAWILLA OFFICE CENTER, LLC, a Florida limited
liability company, on behalf of said company. He is personally known to me or produced
as identification.
iI
(NOTARY SEAL) ,-l�biia►. jj
r
(Print Name)
KATHRYN t.. WHITE Notary Public, State of C A.a
c DD03559Eit Commission No.: 1t D3SS9 C, 1
Commit Expire* srt7ncoa
t iV 1 eenee„rau (800 }4324254 My Commission Expires: (p't -cP�p R. ter. Fbrkta Nat9 Assn Inc
Fifth Modification to Developer's Agreement
City of Winter Springs and Vistawilla Office Center, U-C
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or
DAVE SCHMITT ENGINEERING INC.
December 22, 2009
Mr. Brian Fields
City of !minter Springs
1126 State Road 434
Winter Springs, FL 32708
RE: Vistawilla Site
Project 2009704
Dear Mr. Fields,
We are requesting a two-year extension to the existing permit (or approval) based on the recent
approval of Senate Bill 360. We understand this request is due no later than December 31, 2009. We
are therefore assuming this will be extended the two years allowed by this Bill.
Thank you for your assistance. Please contact us, should you have any questions.
0
Dave Schmitt, P.E.
President
Dave Schmitt Engineering, Inc.
cc: Dave McLeod, Pinnacle Companies
Ted Schwartzhoff, Dave Schmitt Engineering. Inc.
Permit File
3680 Avalon Park Blvd. East, Suite 310 Orlando, FL 32828 Phone: (407) 207 -9088 Fax: (407) 207 -9089
www.dseorl.com