TO: CRA Board of Commissioners
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: October 27, 2026
TITLE
APPROVE THE NINTH AMENDMENT TO THE GROUND LEASE AGREEMENT TO AMEND THE PURCHASE AND SALE AGREEMENT, AUTHORIZE THE CRA BOARD CHAIR TO EXECUTE ANY AND ALL RELATED DOCUMENTS TO THE SALE OF 910 W ATLANTIC AVENUE, AND AUTHORIZE CRA STAFF TO PROCEED WITH CONTRACTUAL OBLIGATIONS IN THE GROUND LEASE AGREEMENT TO EFFECTUATE THE SALE OF 910 W ATLANTIC AVENUE
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Recommended Action:
Recommendation
1. Approve the Ninth Amendment to the Ground Lease Agreement to amend the Purchase and Sale Agreement, in a form acceptable to CRA Legal Counsel;
AND
2. Authorize the CRA Board Chair to execute all documents related to the sale of 910 W Atlantic Avenue to Prime Delray Hotel, LLC, in a form acceptable to the CRA Legal Counsel, and authorize CRA Staff to proceed with contractual obligations in the Ground Lease Agreement to effectuate the sale of 910 W Atlantic Avenue, including ordering an appraisal to determine the purchase price
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Background:
In December 2010, the Delray Beach Community Redevelopment Agency (CRA) issued a Request for Proposal (RFP) with a mixed-use Development Objective for the development of office, retail or hotel to serve both residents and visitors. The RFP was ultimately awarded to Prime Delray Hotel LLC (Prime) for the development of a moderately priced flag hotel.
On April 2, 2012, the CRA and Prime Delray Hotel LLC (Prime) entered into a Ground Lease Agreement (Agreement) for CRA-owned property located at 910 W Atlantic Avenue. The Agreement was structured as part of the CRA Land Value Investment Program where Prime agreed to lease the entire development site for a 40-year term for the purpose of constructing a four-story business class hotel, which would later become the Fairfield Inn. Prime also participated in the CRA Development Infrastructure Assistance Program to construct a parking lot and borrowed $1,500,000.00 from the CRA to bridge the private financing gap.
STATUS: Paid in Full as of 2016.
Section 33 of the Agreement details Prime’s right to exercise its option to purchase the property:
“Purchase Option. The Tenant shall have the right to purchase the property from the Landlord pursuant to an Agreement to Purchase and Sell Real Estate ("Purchase Agreement") to be entered between the Tenant and Landlord. The right to exercise the Purchase Option shall commence upon the fifth (5th) year after the Effective Date and shall expire on the conclusion of the twenty-fifth (25th) year after the Effective Date. In order to exercise the Purchase Option, the Tenant shall provide the Landlord with an executed copy of the Purchase Agreement, a copy of which is attached hereto as Exhibit "D".”
On September 16, 2026, Prime contacted the CRA to exercise its purchase option by delivering an executed copy of the Purchase Agreement. The Agreement states that the purchase price will be determined through an appraisal conducted as if “the Property was vacant an unimproved, and available for development at its highest and best use.” Both the CRA and Prime must retain their own appraiser and complete an appraisal within 45 days of the agreement being executed. In the event that the two appraisals do not differ by more than 5%, then the purchase price will be based on the average of both the CRA and Prime’s appraisals. If the difference is more than 5%, then the two appraisers will recommend a third appraiser to provide a third appraisal. If the third appraisal is needed, then the purchase price will be determined based on the average of all 3 appraisals.
As part of Prime’s September 16, 2026, communication Prime requested to amend the Agreement’s Exhibit D, which includes the Purchase and Sale Agreement. The Ninth Amendment amends Section 1.1 Purchase and Sale Agreement to reflect the change in acreage from 2.23 acres to 1.778 acres. Additional changes include updating Primes’s name to Prime Hospitality Group II, LLC, updating the name of the CRA Executive Director, updating the execution block, updating the legal description, and updating Section 1.6 and 1.7 reference to the escrow agent.
At this time, CRA Staff requests that the CRA Board approve the 9th Amendment to the Agreement and amend the Purchase and Sale Agreement, in a form acceptable to CRA Legal Counsel, authorize the CRA Board Chair to execute any and all documents related to the sale of 910 W Atlantic Avenue to Prime, and authorize CRA Staff to proceed with contractual obligations in the Ground Lease Agreement to effectuate the sale of 910 W Atlantic, including ordering an appraisal to determine the purchase price.
Attachment(s): Exhibit A - Location Map; Exhibit B - Prime Ground Lease Agreement and Amendments; Exhibit C - Ninth Amendment to Ground Lease Agreement
CRA Attorney Review:
N/A
Funding Source/Financial Impact:
N/A
Overall needs within the Community Redevelopment Area from Delray Beach CRA Redevelopment Plan:
Removal of Slum & Blight
Land Use
Development & Investment
Housing
Infrastructure & Mobility Improvements
Public Assets & Facilities
Policing Innovations