DEPARTMENT: Center City Development
ASSISTANT CITY MANAGER: Carlos Contreras
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Master Lease and Master Agreement with HPARC
SUMMARY:
Approval of a Master Lease and Master Agreement with Hemisfair Park Area Redevelopment Corporation (HPARC). The Master Lease provides the authority for HPARC to solicit P3 development and act as landlord for the seven tracts of land within Hemisfair that City Council identified for development on December 5, 2013. The Master Agreement outlines the responsibilities for HPARC in managing the buildings and land within the Hemisfair district.
BACKGROUND INFORMATION:
On December 5, 2013, the City Council identified 14.366 acres consisting of seven (7) development tracts within Hemisfair for development consistent with the Hemisfair Master Plan. Also on December 5, 2013, the City Council dedicated 18.47 acres of land within Hemisfair as parkland, which increased the amount of public parkland in our downtown's largest park.
City staff and our real estate counsel have worked with HPARC to negotiate two long-term agreements that will grant HPARC broad authority to redevelop the district. City staff recommends a 99-year lease with HPARC that covers the seven developable parcels identified by City Council for development through Public-Private Partnerships (P3). The agreements will allow HPARC to solicit development opportunities and enter long-term subleases on the seven developable tracts. HPARC will solicit for these projects and negotiate ground leases with developers for vertical mixed-use developments via a P3 solicitation process, and those lease agreements will be subject to future City Council approval. HPARC has developed P3 Guidelines, similar to those of the City, to provide a transparent solicitation process for these vertical mixed-use developments; that process will include the involvement of City staff on evaluation committees, briefings to a City Co...
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