Looks like the 110 Quivira Plaza CID is about to rear its ugly head again.
This is what is scheduled for the City Council meeting, this Monday, Feb 27, 2012 (starts at 7:30PM):
F. PUBLIC ITEMS
1. CONSIDER REQUEST TO DELAY COLLECTION OF COMMUNITY IMPROVEMENT
DISTRICT SALES TAX FOR TEN QUIVIRA PLAZA.
DISCUSSION: On August 8, 2011, the Governing Body passed an Ordinance and
approved a Development Agreement authorizing the creation of Ten Quivira
Plaza Community Improvement District (CID). Ten Quivira representatives
have requested that the collection of sales tax be delayed until January 1,
2013. A memo and supporting documents are included for review.
PAGES 33 - 44
ACTION: Pass an ordinance delaying the collection of the CID sales tax to be
collected within the Ten Quivira Plaza Community Improvement District. If
approved, an Ordinance Number will be assigned.
But why is there consideration to delay the collection of this tax?
Aha, now we must look at this, from the packet:
BACKGROUND
On August 8, 2011 the Governing Body passed an Ordinance authorizing the creation of the Ten
Quivira Plaza Community Improvement District and authorizing the imposition of a sales tax to
be collected within such district; and, approved and authorized the Mayor to sign a Development
Agreement with the Developer/Owner.
The ordinance established the District and levied the tax with an effective date of July 1, 2012. In
order to initiate the collection of that tax, the City must notify the State 90 days prior to the beginning
of a quarter. The Development Agreement included language that if the City does not receive
confirmation of approval and commencement of the private financing by March 1, 2012, the City
would take steps to delay the implementation of the sales tax and the agreement would be terminated.
DISCUSSION
Since August, Ten Quivira representatives have kept staff informed of their change in ownership,
ZCOF TL Ten Quivira LLC (ZCOF), and their progress in working with Bank of America regarding
the restructuring of their portfolio. ZCOF cannot begin any work on the Center without Bank of
America’s final approval. Bank of America has required additional due diligence prior to construction
of the improvements including completed plans and final bids for the work. ZCOF has requested that
the collection of the sales tax be delayed until January 1, 2013. A letter from Hugh Robinson
explaining the request in more detail is attached. Delaying the collection of the sales tax can be
accomplished by passing a new ordinance.
Because of the ownership changes and the work with Bank of America, Tri-Land has not yet signed
the Development Agreement. If the ordinance passes delaying the collection of the sales tax, a revised
Development Agreement will be brought to the Governing Body at a future meeting with updated
language on the deadlines and the ownership. Once the Development Agreement is complete, ZCOF
will be ready immediately to begin construction. Construction of improvements that are not funded
by the CID may begin sooner.
Now, let's look at Tri-Land's letter:
"As we have explained, a portfolio of 6 shopping centers that includes Ten Quivira Plaza was sold to a new group, ZCOF TL Ten Quivira LLC ("ZCOF TL"), on September 29, 2011. Tri_land has an ownership interest in the new entity that owns the shopping centers and we continue to be responsible to lease and manage the 6-center portfolio."
In his letter Mr. Robinson also states that he has kept the city informed about the progress of the ownership transfer/sale since August. Why wasn't the public informed about the pending sale at the public hearings?
This entire project needs to be terminated and if the new ownership wants the CID let them start the process over. Or is this going to be another case of "we already started, so let's continue"?
Transparency on this issue was and is greatly lacking.
