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Board directs staff to draft amendment allowing MBA Holdings sale–leaseback, with developer to cover attorney fees
Summary
The board authorized staff to work with the village attorney to draft an amendment to MBA Holdings LLC's development agreement permitting a sale–leaseback while keeping incentive payments flowing to the developer; Michael Brandt agreed to reimburse reasonable attorney fees and staff will return with a draft on March 17.
The Suamico Village Board on March 3 directed staff and the village attorney to draft an amendment to the development agreement with MBA Holdings LLC to permit a sale–leaseback of a building while preserving eligibility to collect incentive payments.
Staff said the original agreement (December 2021) ties incentives to the land, which Brandt of MBA Holdings said he misread when structuring a sale that would transfer ownership to a holding company. Brandt told the board the sale–leaseback would be a triple-net, single-tenant arrangement designed to free up equity for business operations; he said the planned lease term would be 15 years with two five-year extensions and that business operations at RC Moores would continue unchanged.
Board members asked about timing and attorney-fee exposure; Brandt said the transaction is expected to close by the end of March and that he would reimburse reasonable attorney fees for drafting the amendment. Trustee (Speaker 3) moved to direct staff to collaborate with the village attorney to draft the amendment and include MBA Holdings picking up attorney costs; the motion carried 7–0. Staff said the draft will return to the board on the March 17 agenda.
No final change to the development agreement was approved at the meeting; the board authorized drafting and direction to staff only.
