TO: Mayor and Commissioners
FROM: Lynn Gelin, City Attorney
DATE: September 22, 2020
Title
CONSIDERATION OF AMENDMENT NO. 1 TO THE PARKING FACILITY AND EASEMENT AGREEMENT AND PROJECT COVENANT FOR THE 4TH AND 5TH DELRAY (IPIC), SPECIFICALLY REMOVAL OF THE REQUIRED CORPORATE HEADQUARTERS RELOCATION AND PUBLIC TERRACE AREA.
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Recommended Action:
Recommendation
Motion to approve Amendment No. 1 to the Parking Facility Easement and Agreement and Project Covenant subject to approval by the Community Redevelopment Agency (“CRA”).
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Background:
At its meeting of January 20, 2016, the Site Plan Review and Appearance Board (“SPRAB”) approved the Class V site plan for the iPic movie theater, offices, and retail for the project known as "4th & 5th Delray" located at 25 SE 4th Avenue, Delray Beach, Florida (“Site”). As a condition of site plan approval, the applicant was required to record a covenant related to the various obligations to be undertaken. As part of the Parking Facility Easement Agreement and Project Covenant ("Agreement"), the Developer (“iPic”) agreed to relocate its corporate headquarters as well as allow non-exclusive public use of the upper level, fourth floor terrace garden area and provide corresponding access to the public for use of same ("Public Terrace"). The covenants for the corporate headquarters and the Public Terrace were included in the Agreement approved by the City Commission on March 3, 2017.
Article V of the Agreement, “Relocation of Developer’s Corporate Headquarters,” requires the Developer to relocate its corporate headquarters to the Site within one-hundred eighty (180) days after the final certificate of occupancy is issued for the office portion of the Project. Developer filed for bankruptcy protection on August 5, 2019. Since then, there has been little activity in those proceedings and no indication that Developer will be relocating its corporate headquarters to the Site.
Article VI of the Agreement, “Publi...
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