Summary:
Heartwood 21, LLC, "Heartwood", is the successor-in-interest to LeRoyal International Development, LLC, "LeRoyal", and the owner of property located at 3851 Millenia Blvd. LeRoyal originally proposed to construct a large scale mixed use project known as the Gardens at Millenia Blvd., "Project". On November 16, 2006, the City and LeRoyal entered into a Developer's Agreement Regarding Transportation Improvements for the Gardens at Millenia Blvd., "Developer's Agreement". The Developer's Agreement provided, among other things, that the Project would be vested with six-hundred seventy-six (676) additional trips conditioned upon LeRoyal's payment of funds to the City for construction of certain off-site transportation improvements, "Transportation Improvements". LeRoyal paid the City $2,000,000.00 into escrow for construction of the Transportation Improvements. The City completed the Transportation Improvements and to do so, utilized $1,706,918.54. The Escrow Agent returned the remaining funds to the Developer.
Due to the severe adverse economic conditions which have occurred over the last five years, LeRoyal was unable to develop the Project. Heartwood has recently determined that it will not be able to complete the Project as originally planned and has reduced the intensity of the Project so that it is more feasible under current economic conditions. Construction of the Transportation Improvements created significant additional transportation capacity within the area and Heartwood has therefore requested, based on the reduced Project impacts, that the City refund a portion of the costs to construct the Transportation Improvements or, in the alternative, to grant a Transportation Impact Fee Credit. Based on the non-site related transportation capacity created by the Transportation Improvements, the City would agree to refund to Developer the amount of $727,776.00 in cash and to grant a Transportation Impact Fee Credit in the amount of $467,067.00, for a total of $1,194,843.00, which is about two-thirds of the cost of the Transportation Improvements. The refunded amount would be made from transportation impact fees collected in the Southwest Impact Fee District as said fees are collected.
As a condition of this Agreement and in connection with construction of the modified Project, Heartwood has also agreed to construct an east-west connector road that is necessary to serve an elementary school in the area. |