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TO: Mayor Richard C. Irvin
FROM: David Dibo
Executive Director, Mayor's Office of Economic Development
Alex Minnella
Senior Planner, Mayor's Office of Economic Development
DATE: January 1, 2025
SUBJECT:
A Resolution authorizing (1) the Assignment of the Redevelopment Agreement, Contractual Rights and Responsibilities of Frontier Development LLC to 7 South LLC for the redevelopment of property located at 7 S Broadway approved with resolution R24-185; (2) a modification of the project timeline set forth therein, and (3) an Assignment of Collateral from the Developer to its Lender for Construction Financing Purposes.
PURPOSE:
To authorize the assignment of all contractual rights and responsibilities of Frontier Development LLC to 7 South LLC, under the Redevelopment Agreement, to revise the timeline for the completion thereof, and to permit the assignment of collateral for financing purposes.
BACKGROUND:
Approximately 6 years ago, the City purchased the 3,200 square foot one-story building at 7 S. Broadway from Gary Brown who continued to maintain his art studio on site. Following the art studio's departure, the City entered into a redevelopment agreement with Frontier Development, LLC to repurpose the building into a restaurant with access to the area known as "Skinny Park" immediately to the south.
Under the agreement:
- Frontier Development, LLC ("Developer") will required to contribute with equity and/or third-party financing in the amount of $827,455. Frontier's obligations are guaranteed by Conrad Hurst and Curt Hurst.
- The City will provide a forgivable in the amount of $413,547.00.
- The City will provide a grant of $413,547.00.
- The City will sell the real property at 7 South Broadway to the Developer for $100,000.
The Developer has established a new legal entity, 7 South, LLC for the special purposes of performing the work required to redevelop the property in accordance with the agreement. The Developer is now asking the City to allo...
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