The City Council on June 3 approved a resolution to terminate certain covenants and restrictions tied to the previously approved Q West Towers project, with city officials detailing conditions intended to protect the city if the project fails to close. The motion passed on a roll call with ayes from Comptroller Morton, Council President Brown and Mayor Patterson Howard.

Council and staff described a revert clause in earlier agreements that would have returned property to the city if developers failed to build within a required timetable. City counsel and staff negotiated a path that removes that revert clause if the developers reach closing; if closing does not occur, the revert clause and escrow protections will remain in place. Council President Brown explained that “the escrow will be held by our land use attorney until the closing actually happens” and that personal guarantees from the developers will be signed at closing.

Officials said the development’s financing terms include developer personal guarantees tied to capital investment (stated in the meeting as over $70,000,000) and community benefit payments structured through the Industrial Development Agency (IDA). Councilors said the school district will receive $2,000,000 at closing with a separate $1,000,000 payment scheduled later, and that roughly $400,000 was identified for fire department capital needs along with streetscape and lighting work along McQuesten Parkway. Staff noted an existing clause that would charge $25,000 per year back to the developer if student projections are exceeded.

Council members requested copies of the unsigned personal guarantees and were told staff (including Darius and Brad) would provide those documents; the guarantees will be executed at closing. The council emphasized that termination applies to a portion of the original restrictive covenant language and that other IDA and clawback protections remain in place.