Agenda

Back to Calendar Return

Item # 7.

Council Meeting

Meeting Date:	04/27/2021
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Leverage Addison's assets to grow and expand placemaking business programs and events that will set Addison apart to attract talent and businesses

AGENDA CAPTION:

Consider Action on a Resolution Authorizing the City Manager to Execute the Assignment and Assumption of the Economic Development Incentive Agreement for Village on the Parkway from 5100 Belt Line Road Investors LLC to VOP Partners, LLC.

BACKGROUND:

This Resolution provides for the Economic Development Incentive Agreement (EDIA) in place for Village on the Parkway to be transferred to the new owners upon closure of the sale of the property. Per the existing EDIA between the Town of Addison and 5100 Belt Line Road Investors, LLC, the existing owner of Village on the Parkway is allowed to transfer the incentive agreement to new owners upon approval and acknowledgement by the Town of Addison. This would be the second transfer of the EDIA to new owners following the original execution of the EDIA on August 22, 2014. UBS Investment Bank, through 5100 Belt Line Road Investors, LLC took ownership of Village on the Parkway on May 12, 2015, and the Town of Addison authorized the transfer of the existing incentive agreement then.

UBS Investment Bank, the current owners of 5100 Belt Line Road Investors, LLC, has informed the Town of Addison that they are under contract to sell Village on the Parkway Retail Shopping Center to VOP Partners LLC, a Texas limited liability company. The new buyers are currently performing their due diligence which is scheduled to expire April 29, 2021, and closing is anticipated June 2, 2021. VOP Partners, LLC, is a well-funded partnership comprised of five local, high net worth individuals including Bo Avery, Jessie Mann and Rohit Mehrotra. The partners have been actively involved in commercial real estate since 1990 and have cumulatively acquired over 2 million square feet of retail shopping centers in Texas alone. The partnership has sufficient equity capital to close on the acquisition using partnership funds and is also strategically working with Wells Fargo to secure debt financing. Tri Marsh Retail, LLC, an entity owned and controlled by Bo Avery, will oversee the daily management of the property.

The assignment of the incentive agreement does not alter the performance based incentive agreement. The new owners will assume performance of all the obligations, covenants, duties and liabilities of the existing incentive agreement upon full execution of the attached Assignment and Assumption of Economic Development Incentive Agreement.

RECOMMENDATION:

Administration recommends approval.

Attachments
Village on the Parkway Economic Development Incentive Assignment Agreement