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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Paul Drake, Director of Real Estate and TOD |
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PRESENTER(S): |
Jordan Swain, TOD Project Manager |
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TITLE:
title
R2021-11-01 - Resolution Authorizing the Sale of Approximately 1.45 Acres of Real Property Located in the Clearfield Transit-Oriented Development
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Staff recommends that the UTA Board of Trustees pass Resolution R2021-11-01, to allow for the execution of a purchase and sale agreement to The Front Climbing Club.
BACKGROUND:
The Clearfield Station TOD has been moving forward rapidly over the past two years. In 2019, the Clearfield Station Area Plan was completed and adopted by the City and UTA. In 2021, the Clearfield Station Master Development Plan and Agreement was completed and adopted by the City, as well as a Joint Venture Agreement.
Within the mentioned plans and agreements, it is contemplated that a retail and/or civic land use would be central to the development, serving to “anchor” the surrounding uses, thereby reinforcing a sense of place. Through the process of working with Clearfield City, and our development partners, The Front Climbing Club has been identified as a tenant that could provide such a land use and sense of place.
The Front Climbing Club has a progressive business model in which a variety of services and community events are offered to the public. Examples of such services include; rock climbing facilities and lessons, yoga, personal training, a café with healthy options, concerts, and many other community-based events. Because of The Front’s business model, the company requires that it owns properties where its facilities are built.
DISCUSSION:
Terms within the PSA that directly affect UTA are as follows:
• The Front is proposing to purchase 1.45 acres of property (indicated as “Lot 3” and “Lot 20” in the attached plat map
• The Front is offering UTA $1.2M for the proposed acreage ($19.00 / sf).
• Proceeds from this disposition will be held in an ESCROW account, and used to fund subsequent infrastructural improvements within the Clearfield Station TOD.
• The PSA proposes an industry-standard process that includes a $50,000 deposit of earnest money, and a six-month due diligence period.
• Final design of the site plan and architecture will be subject to the UTA Design Review Committee.
• Parking for The Front will be shared with an adjacent office (depicted within the Master Development Plan as “Office B”).
ALTERNATIVES:
UTA and its development partners have proposed alternate partnership structures (i.e. ground lease and joint venture) to The Front. Because of its business model The Front requires the ownership of any property where its facilities are built.
One alternative could involve identifying a different tenant who is amenable to a ground lease option.
FISCAL IMPACT:
The offered price of $1.2 million or $19.00 sf is considerably higher than the market rate, of $8.12 / sf. The primary reasons for the $10.88 difference in value are:
• UTA, its development partners, and Clearfield City, have completed the entitlements that allow for an intense and diverse community to grow, and an ideal environment for The Front’s business model.
• Clearfield City has proceeded with funding, designing, and constructing all infrastructural improvements for the Clearfield Station TOD.
ATTACHMENTS:
R2021-11-01 - Resolution Authorizing the Sale of Approximately 1.45 Acres of Real Property Located in the Clearfield Transit-Oriented Development