Council to Discuss Covenant with Greenbelt North Core Developer

First, due to inclement weather, last Tuesday’s Council worksession was postponed to tonight at 7pm.

Tonight, we will discuss a covenant that the north Core developer may be entering into with the City in exchange of City’s support for the FBI development.

The city entered into the Greenbelt Station Development Agreement in 2005, which included both the north and south cores. In August 2012, this agreement was severed for the south core and a new Declaration of Covenants and Development Agreement was entered into with Sun Trust Bank, then owner of the south core. The owner of the north core, Renard Development Company, LLC, was aware of and supported this transaction but deferred entering into a new agreement with the city at the time. Renard is now responding to a government solicitation for the relocation of the headquarters of the Federal Bureau of Investigation (FBI) and seeks to resolve the matter.

A proposed draft agreement has been provided by Renard that brings forward language from the original agreement including a payment of $1.25 million to the city at the time of the first major out-sale in the north core (defined as a land purchase in excess of $10 million dollars). The agreement also makes reference to the city’s support for Renard’s efforts and plans to secure the FBI headquarters for the property Staff and the City Attorney are seeking some revisions to the agreement that are still under discussion with Renard. In particular, we are looking for a more specific trigger for the payment to the city. We hope to have a revised document for discussion at tonight’s worksession.

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