07 - Assignment of 5 In 5 Agreement from Brown to Hihland Heritage

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Item No. 7 TO: Mayor, Mayor Pro Tem and City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: Assignment of 5 In 5 Infill Development Agreement — LCAD's 10486,10487 & 10488, Lots 1, 2 &3, Block 2 Campbell Addition DATE: September 11, 2023 BACKGROUND & DISCUSSION On April 11, 2022, City Council approved a 5 In 5 Economic Development and Residential Tax Abatement Agreement with Jeffery S. Brown for the purpose of construction of three new duplexes. Mr. Adam Bolton was the General Contractor for the project, and is also the owner of Highland Heritage Investments, LLC, new owner of the properties. To date, 2 of the duplexes have been completed and are now occupied. Due to some personal setbacks, in the fall of 2022, Mr. Brown sold the property covered by the Agreement to Adam Bolton of Highland Heritage Investments, LLC. This was prior to completion of the 2 duplexes. Consequently, he has executed the attached assignment of the Agreement by Mr. Brown and is seeking Council approval of the assignment. The assignment is allowed by law and by the 5 in 5 program guidelines upon written approval of the Council. Should Council approve the assignment, the written approval will be in the form of the Mayor's signature on the assignment instrument. Mr. Bolton, as owner of the buyer entity, will then assume the obligations of and be assigned the original tax abatement benefits, along with the other 5 In 5 incentives, of the original agreement. This is an assignment only, and will not extend the length of the tax abatement period, extend any deadlines, or change any of the terms under the Agreement. Mr. Bolton anticipates starting construction in the near future for the 3rd duplex. Additionally, Lamar County is also in the process of approving the same assignment of the original agreement. The County Board approved acceptance of that application on August 28th and will also take final action on the assignment in September. Recommendation Approve the assignment of the 5 In 5 Infill Development Agreement from Jeffery S. Brown to Heritage Investments, LLC.