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Council approves amendment to Johnston Golf Development agreement with milestone dates for financing and construction
Summary
The council approved Amendment No. 6 to the development agreement with Johnston Golf Development LLC, adding deadlines for a financing term sheet and construction milestones; staff said the dates may be adjusted as financing is finalized.
The Johnston City Council approved Amendment No. 6 to the purchase, sale and development agreement with Johnston Golf Development LLC, adding financing and construction milestones staff said are intended to keep the project moving while the developer secures private funding.
Under the amendment, the developer must provide the city documentation of a fully executed Bridal Lending term sheet by Feb. 19, 2025; commence minimum improvements by June 17, 2025; and complete those minimum improvements by Dec. 31, 2025. Josh, a city staff member, described the change as an amendment that mainly adjusts schedule milestones and requires the developer to show progress on financing.
When a council member asked what “minimum improvements” meant, Josh replied, “Minimum improvements, in legalese means, the construction of the building.” He also cautioned that the dates are a tight schedule and that staff expects additional conversations and likely future amendments as the developer finalizes financing.
Staff recommended approval of Amendment No. 6 and said that once private equity and loan documents are in place, the city will prepare a new, consolidated development agreement that reflects the final financing and grant structure, including any TIF (tax increment financing) grant dates.
Council action: The council approved Resolution No. 25‑28 authorizing Amendment No. 6 to the development agreement. Staff noted the amendment adds a condition requiring documentation of a financing term sheet and extends the developer’s deadlines to commence and complete minimum site improvements.
Context and next steps: Staff said they believe the developer is making significant progress toward securing financing and that execution of financing documents would allow the developer to purchase steel and begin onsite work. City staff said it is likely additional amendments and a rewritten agreement will follow as the financing package is completed.
Ending: The council approved the amendment by vote; staff and the developer will continue negotiations on final financing and a revised development agreement that will return to council for action.
