TO: Mayor and Commissioners
FROM: Lynn Gelin, City Attorney
DATE: March 5, 2024
Title
APPROVAL OF AMENDMENT NO. 1 TO THE PARKING SPACE AGREEMENT AND COVENANT WITH CDR DELRAY FEC, LLC
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Recommended Action:
Recommendation
Motion to Approve Amendment No. 1 to the Parking Space Agreement and Covenant with CDR Delray FEC, LLC.
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Background:
On January 24, 2020, the City Commission approved a Parking Space Agreement and Covenant with CDR Delray FEC, LLC (“CDR Delray”). As part of the Agreement, CDR Delray constructed, at its sole cost, sixty-one (61) parking spaces within the FEC right-of-way. Of those 61 spaces, Twenty-Nine (29) parking spaces were allocated for the use of the OG restaurant and the remainder of the spaces were dedicated to the public. The Agreement expressly contemplated CDR Delray utilizing the excess public spaces (32) as offsite parking spaces for any future projects.
This Amendment modifies the Agreement to allow CDR Delray to utilize twenty-eight (28) excess parking spaces to satisfy its parking requirement for the project known as 101 Delray Triangle located at 101 SE 2nd Avenue. If approved, four (4) excess parking spaces would remain dedicated to the public.
In addition, the Amendment would increase the allowable reimbursement to CDR Delray for its construction expenses from $325,000 to $618,124.44. When the Agreement was negotiated, it was contemplated that CDR Delray would receive full reimbursement for its construction costs. However, as a result of COVID and the resulting supply chain issues, the cost to construct the parking spaces increased substantially. It should be noted that CDR Delray receives reimbursement for any parking revenues from its parking spaces that exceed $1400 each month.
City Attorney Review:
Approved as to form and legal sufficiency.