Title
Roads, Event Center and Utility Ball Field Construction
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Agreement between Blue Collar (BC Foley, LLC)
SOURCE OF FUNDING:
Please provide the amount requested: ____________
Is this a budgeted item? Yes /No
Please provide the budgeted amount: $_____________ Account No. ___________________________
If budgeted, is this a capital purchase, capital project, or special fund? _________________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No
If yes, please provide the amount included in Capital Projects Plan: $___________
Body
WHEREAS, the City of Foley is interested in constructing certain public improvemnets, including roads, an event center, and utility ball fields, in conjunction with a private development of other improvements, all of which will benefit the City and public welfare; and
WHEREAS, BC Foley, LLC, the private developer, is interested in buying certain real property for the purpose of donating it to the City to facilitate the City's construction of the roads and the event center; and
WHEREAS, the City wants to induce BC Foley, LLC into developing other properties; and
WHEREAS, the City is interested in purchasing or leasing from BC Foley, LLC certain property on which the utility ball fields would be constructed; and
WHEREAS, the City intends to finance or recoup its capital investment in the purchase of the property and in the construction of the improvements through increased lodging tax receipts from new hotel rooms that will be constructed on nearby properties, through the issuance of one or more municipal bond issues, and through the use of federal or state transportation grants; and
WHEREAS, the City wants to provide BC Foley, LLC with this Resolution stating the City's commitments to perform certain actions and the conditions and contingencies for performing those commitments;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foley as follows:
1. That the City hereby commits to build or cause to be built certain road right of way improvments generally described as extending Pride Drive eastward from Highway 59 to
County Road 20, widening and adding lanes to a section of Juniper Street from the new Pride Drive intersection with Juniper Street southward to County Road 20, and
intersection creation on the Foley Beach Express and County Road 20 which are subject of the ATRIP grant application and acceptance which is attached hereto subject to the
following conditions and contingencies:
a) That BC Foley donates sufficient right of way, where new right of way is needed, for the construction and location of the same; and
b) That the City is able to use the ATRIP grant, which provides $16,593,100.00 in federal or state funding, to pay or reimburse the City for its costs and expenses up to that
amount; and
c) That the City is able to finance its portion of this project though a bond issuance on terms deemed reasonable and acceptable to the City (prevailing market rates shall be
deemed reasonable and acceptable), and the City agrees to use commercially reasonable efforts in securing the bond financing.
2. That the City hereby commits, within the next twenty-four months, to begin construction on an indoor event center that will be approximately 100,000 sq. ft. in size and which will
be capable of housing events including, but not limited to, indoor sporting events, concerts, trade shows and conferences (the "Event Center") subject to the following conditions
and contingencies all occurring promptly or within a reasonable amount of time no later than eighteen months:
a) That the road right of way contingencies and actions described in paragraph 1 above have been fully satisfied and fulfilled; and
b) That BC Foley purchases all the subject property required for its development; and
c) That BC Foley donates to the City fee simple title to the land surrounding the lake to properly maintain, construct, repair and operate the same; and
d) That BC Foley donates to the City fee simple title to such adequate and acceptable real property, in the City's reasonable discretion, on which the City can construct the
Event Center including the landscaping and service areas sufficient for the effective construction, use and operation of the Event Center; and
e) That the City receives firm commitments from others to construct, at the sole expense of others than the City, one or more hotels that combine to add at least two hundred
fifty (250) new hotel rooms on the property that is in close (immediate) proximity to the Event Center site. The hotel room construction commitment will be deemed
satisfied when a developer or end user acquires title to the real property, applies for and receives land disturbance and building permits, and submits adequate evidence
of current financing arrangements for the construction of the facility and their commitment to commence and diligently pursue construction of the same. The hotel rooms
must be projected to be open and available to the public contemporaneously with the scheduled opening of the Event Center; and
3. That the City hereby commits to purchase or lease from BC Foley the following: (i) a sifficient amount of real property selected by the City, in its sole reasonable discretion, for
the purpose of constructing no less than ten (10) multi-use utility ball fields which will be operated as part of the Foley Sports Complex which are capable of housing outdoor
sporting events including, but not limited to, soccer, football, lacrosse and field hockey games (the "Utility Ball Fields") together with sufficient public parking areas to support the
Utility Ball Fields; and (ii) a sufficient amount of real property selected by the City, in its sole reasonable discretion, for the purpose of providing adequate parking for the Event
Center. Both of these commitments are hereby made subject to the following conditions and contingencies:
a) That the Event Center contingencies and actions described in paragraph 2 above have been fully satisfied and fulfilled; and
b) That the City is able to finance its portion of this project though a bond issuance on terms deemed reasonable and acceptable to the City (prevailing market rates shall be
deemed reasonable and acceptable), and the City agrees to use commercially reasonable efforts in securing the bond financing.
The purchase price that the City is hereby agreeing to pay to BC Foley for the land selected by the City is the average (mean) purchase price per acre paid by BC Foley to the various landowners whose property was purchased and assembled by BC Foley as part of the overall deveelopment on which the Utility Ball Fields and the Event Center are then a part of. If the City elects to lease some or all of this land, then the rental rate shall be a mutually agreeable rate and terms based off of the average (mean) purchase price per acre per year paid BC Foley for the land.