Title
Amendment No. 1 to the Purchase, Sale, and Development Agreement for Real Property Located in the Incorporated County of Los Alamos Commonly Referred to as A-8-A
Recommended Action
I move that Council approve Amendment No. 1 to the Purchase, Sale, and Development Agreement for Real Property Located in the Incorporated County of Los Alamos Commonly Referred to as A-8-A.
County Manager's Recommendation
The County Manager recommends that Council approve the Amendment No. 1 to the Purchase, Sale, and Development Agreement for real property located in the Incorporate County of Los Alamos commonly referred to as A-8-A as requested.
Body
This amendment inserts Section 12.8 (Reversionary Interest to the County) into the existing agreement. This is not a material change to the agreement because the reversionary interest condition is already included in the restrictive covenant that currently burdens the property. However, adding this additional provision to the agreement has been requested by the New Mexico Self Insurance Fund (NMSIF) as part of their effort to qualify this property for casualty insurance provided by the NMSIF. Per the NMSIF, having this clause placed in the agreement itself betters the chances that the NMSIF underwriters finding that this property can be insured by the NMSIF. If the NMSIF can provide casualty insurance the cost of the project will be lessened.
This reversionary interest establishes a clear path for the County to regain full ownership of the property and all it’s improvements within the development agreement. Specifically, once the developer has fully paid the project debt and all associated mortgages or loans documents are released, title to the property automatically reverts to the Incorporated County of Los Alamos. This clarifies for the NMSIF that all “improvements built thereon,” ensuring that any structure or infrastructure developed by Servitas become County assets upon the retirement of debt. All other terms and ...
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