City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 7, 2023
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES F. PARAJON, CITY MANAGER /s/
DOCKET TITLE:
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Authorization of the Execution of Proposed Amendments to the Landmark Development and Financing Agreement.
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ISSUE: Approval of proposed amendments to the Landmark Development and Financing Agreement ("Development Agreement").
RECOMMENDATION: That City Council authorize the City Manager to execute the proposed amendments to the Landmark Development and Financing Agreement consistent with the attachment to this memorandum.
BACKGROUND: The Landmark Redevelopment public-private partnership entails redeveloping the 51-acre Landmark Mall site into a mixed-use town-center type development with new regional Level II Trauma Center Hospital, Cancer Center and at least one medical office building. Following City Council approval and authorization, on July 6, 2021, to execute the Landmark Redevelopment Agreements, the City Manager executed the Development and Financing Agreement between the City, Landmark Land Holdings, LLC ("Developer"), and Inova Health Care Services (collectively "Parties"), on July 30, 2021. The City also funded the purchase price of $54 million for a portion of the former Landmark Mall site (Inova Site) to consist of two payments - the first payment of $21 million was made at the time of property acquisition and the second payment of $33 million on the land purchase was anticipated to be made December 12, 2022, as long as the Developer posted a performance assurance.
DISCUSSION: Through engagement with the surety markets regarding the assurance as required by the Development Agreement, the parties have acknowledged that these instruments are cost prohibitive under the current transaction structure. The proposed amendments (Attachment) to address this issue in the Development ...
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