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Item # 6.a.

City Council (FY24)

Meeting Date:	04/23/2024
Department:	Economic Development
Key Focus Areas:	Economic Development and Revitalization

AGENDA CAPTION:

Consider action on a Resolution approving an unsubordinated ground lease between the Town of Addison and AMLI Residential Partners for development and operation of a mixed-use, residential building containing approximately 10,000 square feet of retail space and between 260-280 residential units in connection with the Addison Circle Area Transit Oriented Mixed-Use Development Project; authorizing the City Manager to execute the agreement; and providing an effective date.

BACKGROUND:

As part of the proposed transit-oriented development project at the Addison Silver Line Station, the city will lease land to AMLI Residential Partners, LLC for construction of a 15, 7 and 5-story multi-family residential tower, ground floor retail and associated parking garage. This ground lease captures the terms and conditions of the lease, including:

A 99-year term for the lease
Initial annual rent of $200,000
A $2 million non-refundable deposit to be applied to future rent payments. However, the deposit is refundable during the period between April1, 2025 and September 30, 2025 if AMLI submits infrastructure and building plans but does not receive internal approvals to proceed with the project.
Commencement of annual rent and calculation of rent increases
Prohibited and permitted uses
Maintenance of the property and buildings
Allowed construction, demolition and alteration of improvements
Assignment of the ground lease and subleasing

RECOMMENDATION:

Administration recommends approval.

Attachments
Presentation - TOD Ground Lease
Resolution - TOD Ground Lease (Tower)
Ground Lease - Tower