DEPARTMENT: Neighborhood and Housing Services Department
DEPARTMENT HEAD: Ver?nica R. Soto
COUNCIL DISTRICTS IMPACTED: Council District 3
SUBJECT:
Consideration of an Ordinance authorizing an Assignment and Assumption Agreement between the current Mission Del Lago TIRZ developer of record, Mission Del Lago, Ltd., and the new developer of record, SouthStar Mission Del Lago Holdings L.P. for matters associated with the 2014 Development Agreement for housing and retail construction in the TIRZ in Council District 3 and within the Mission Del Lago TIRZ.
SUMMARY:
Consideration of an Ordinance authorizing an Assignment and Assumption Agreement between Mission Del Lago, Ltd. (MDL), a Texas limited partnership and SouthStar Mission Del Lago Holdings L.P. (SouthStar), a Delaware limited partnership.
BACKGROUND INFORMATION:
The City designated the Mission Del Lago Tax Increment Reinvestment Zone (TIRZ) on August 19, 1999 by Ordinance 90312.
The City, the Mission Del Lago TIRZ Board, and MDL later entered into the Development Agreement on June 29, 2006 by Ordinance No. 2006-06-29-0801 and later amended the Development Agreement by Ordinance No. 2014-05-01-0286 on May 1, 2014.
The amended project includes the construction of 2,241 single-family homes, 630 multi-family homes, 280 multi-family homes as a part of the Villa Espada Apartments Chapter 380 Agreement project, and 287,600 square feet of retail, office and commercial space. The average single family home is 2120 sq. ft. and is selling for $180K.
MDL is the current Developer of Record in the Development Agreement.
ISSUE:
On May 13, 2014, MDL sold its assets to SouthStar and MDL assigned a portion of the revenues it receives from Reinvestment Zone Number Six (the "TIRZ") to SouthStar. Additionally, MDL and SouthStar entered into an Operating Agreement defining each party's rights and responsibilities related to the TIRZ.
MDL desires to assign its interests, rights, duties, obligations, an...
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