Title
Resolution Approving the Lease of Lot 2A from TPAC, LLC, a Non-Profit Charitable Organization Owned by the Community Foundation of Greater Greensboro, to be Used at the Tanger Center for the Performing Arts Surface Parking Lot, and a Related Option to Purchase Agreement
Body
Department: Finance
Council District: 3
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Rick Lusk, 373-2077
Contact 2 and Phone: Tom Carruthers, 373-2320
PURPOSE:
The City will convey Lot 2A of the Tanger Center site to TPAC, LLC, a non-profit charitable organization owned by the Community Foundation of Greater Greensboro pursuant to Resolution #0317-14 adopted on December 2, 2014. TPAC, LLC will use Lot 2A as collateral for a loan to assist with the construction of the Tanger Center for the Performing Arts. The City and TPAC LLC shall also execute an agreement leasing the property to the City and an option to purchase agreement providing the City an option to repurchase Lot 2A in the event that TPAC, LLC default on its financing and the lender determines to institute foreclosure proceedings.
BACKGROUND:
On March 4, 2014, the City Council adopted Resolution #0317-14 - a Resolution Authorizing the Mayor and City Manager to Enter into a Memorandum of Understanding ("MOU") between the Community Foundation of Greater Greensboro ("CFGG") and the City to design, finance, develop, construct, and manage the operations and programs of the proposed Steven B. Tanger Center for the Performing Arts (STPAC). As part of this MOU, the CFGG, through private donors, agreed to pay up to $5 million of design costs for the facility and $33.5 million for the construction costs and the City agreed to pay up to $39.6 million for the purchase of land and the construction of the facility.
The MOU also stated the City and the CFGG, on behalf of its private donors, would have to obtain financing to cover each party's share of the costs of this project and that either party...
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