Title
Consider amendment (s) to Demolition and Abatement Agreement with Action Demolition.
Strategic goal: Old Town Revitalization
Objective: Provide support to implement redevelopment plans in the Old Town area.
Body
City Council (“City”) is considering execution of amendments to the Demolition, Abatement and Purchase Agreement previously executed with Action Demolition and RHP&F. The City has applied for DHEC and federal stimulus monies related to Brownfields loans and grants. In order to utilize these funds, estimated to be $1,500,000.00, the City and Action Demolition must agree to comply with numerous additional requirements. Therefore, amendments are necessary to incorporate all the various requirements related to the funding sources for these programs. Under the amendments, RHP&F, LLC is no longer a party to the demolition agreement as the Brownfields loans and grants prohibit RHP&F, LLC from being a party to the agreement. Instead, a separate purchase and sale agreement utilizing the original purchase and sale terms from the original agreement has been created between the City and RHP&F, LLC. In addition, Action will receive $4,000,000 upon completion of demolition rather than the $2,500,000 upon completion of demolition plus an additional $1,500,000 within one year as contemplated under the original agreement. Providing the entire $4,000,000 to Action upon completion of demolition as well as granting Action an extension until April, 1 2011 for completion of demolition is provided as consideration for Action’s agreement to the amendments. The City will take title to the property once Demolition is completed. No additional money is due Action Demolition or RHP&F, LLC under the amendments.