Laserfiche WebLink
KITTITAS COUNTY <br />DEPARTMENT OF PUBLIC WORKS <br />PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS <br />2023 STUDY SESSION STAFF REPORT <br />STUDY SESSION DATE: February 27, 2023 <br />TOPIC: Assignment of Development Rights <br />ACTION REQUESTED: Direct Staff <br />LEAD STAFF: <br />Mark R. Cook <br />RECOMMENDATION: <br />Direct staff prepare enabling documents for BoCC consideration. <br />BRIEFING SUIVIMARY: <br />• Suncadia Resort and Lowe Enterprises desire assigning Development Rights to CIBC <br />Bank as collateral for a revolving line of credit. <br />• This is a common practice securing development capital. <br />• Suncadia Resort's entitlements will expire on October 9, 2030. <br />BACKGROUND: <br />New Suncadia LLC sold to Real Capital Solutions (RCS) in July 2021. The Board of County <br />Commissioners (BoCC) authorized the transfer of development entitlements from New <br />Suncadia LLC to Suncadia Resort with Resolution 2021-100 (July 6, 2021). Suncadia Resort <br />development entitlements are set to expire on October 9, 2030. <br />DISCUSSION: <br />Public Works (PW) understands that RCS desires securing a line of credit with CIBC Bank <br />utilizing an assignment of their development entitlements as security on the loan. This is a <br />common practice amongst land developers and funding institutions. It is the opinion of PW <br />that risk of default is low, given recent communications with Lowe Enterprises acting as <br />Managing Director of Suncadia Resort. Assignment of rights to the highest bidder is the risk <br />the BoCC is taking in sanctioning the assignment. PW understands that a new business <br />model is being advanced for the resort by Lowe Enterprises that is expected to result in <br />accelerated land sales at the resort. Given the likelihood of increased land sales, default <br />potential is minimized. The assignment will terminate on October 09, 2023, allowing a <br />performance period of approximately six- and one-half years, for the county to determine the <br />need for potential development entitlement extension with Suncadia Resort. PW has <br />confirmed with the Prosecuting Attorney's Office that authorization of the assignment can be <br />accomplished by resolution. <br />FISCAL IMPACTS: <br />No financial impact to the county. <br />ATTACHMENTS: <br />None. <br />Page 1 of 1 <br />Public Works "Work Session Staff Report", 2023 <br />