Title
Consideration and Possible Action on Request for an Extension of the Project Participation Agreement with TNJLA LLC.
Recommended Action
I move that Council reject TNJLA LLC's request for an extension of the Participation Agreement.
OR
I move that Council accept TNJLA LLC's request for an extension of the Participation Agreement and direct staff to bring forward an Ordinance for consideration as required to formally implement this change.
County Manager's Recommendation
The County Manager recommends rejection of the TNJLA LLC's request for an extension to the Participation Agreement.
Body
On November 16, 2019, the County entered into a Project Participation Agreement (PPA) with TNJLA LLC supporting the development of an extended stay hotel facility, a banquet-style conference center, and stand-alone food and beverage space on 20th Street Extension properties in downtown Los Alamos (see Attachment A.) One of the Agreement conditions was that the Project be fully open and operational within 48 months of the Agreements Effective Date, November 16, 2023. On October 19, 2021, Mr. Tushar Patel, the Principal of TNJLA LLC, submitted by email (see Attachment B) a request to extend the required project completion date from November 16, 2023, to August 31, 2024. Mr. Tushar cited in his request that development costs are $3 million higher than initially projected, and that TNJLA LLC expects these costs to come down by Q2 of 2022.
Staff believes that the existing 48 month window is adequate to execute this project.
Attachments
A - TNJLA PPA with Ordinance_fully executed
B - PPA Extension Request