TO: CRA Board of Commissioners
FROM: Sanaz Alempour, Esq., CRA Outside Legal Counsel
THROUGH: Renée A. Jadusingh, Esq., Executive Director
DATE: July 15, 2021
possible action regarding THE CRA’S RIGHT TO TERMINATE THE PURCHASE AND SALE AGREEMENT WITH BH3 MANAGEMENT, LLC
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Recommended Action:
Board consideration and possible action regarding termination of the Purchase and Sale Agreement with BH3 Management, LLC in light of the Closing not taking place on or before the July 10, 2021 Termination Date.
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Background:
On April 22, 2019, the Delray Beach Community Redevelopment Agency (“the CRA”) and BH3 Management, LLC (“BH3”) entered into a Purchase and Sale Agreement (“Agreement”) for the SW 600-800 blocks West Atlantic Avenue Properties. Pursuant to the Agreement, the Effective Date of the agreement is April 22, 2019.
On August 13, 2019, the CRA and BH3 entered into the First Amendment to the Agreement extending the commencement date for the workforce housing units being restricted to eligible tenants. At the request of BH3, on November 19, 2019, the CRA and BH3 entered into a Second Amendment to the Agreement in order to extend the Application Date by which BH3 had to submit for all government approvals from two hundred ten (210) calendar days to two hundred seventy (270) calendar days. The CRA and BH3 entered into the Third Amendment to the Agreement in order to allow the CRA to enter a new commercial lease with Emmanuel Jackson Sr. Project, Inc.
On May 11, 2020, BH3’s Legal Counsel sent a letter to the CRA, placing the CRA on notice of BH3’s intent to seek Force Majeure related extensions to the Approval Date in the Agreement due to COVID-19.
On November 25, 2020, BH3 notified the CRA of a design change and sought extension of the Approval Date, and to address project phasing and removal of the financing contingency.
At the January 26, 2021 CRA Board Meeting, the CRA Board declared BH3 in default of the Agreement for failure to meet the re...
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