Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Real Estate topic
No spam. Unsubscribe anytime.
Commission delegates authority to director to sign letter allowing subdivision at Saint Edward leasehold for spa feasibility
Summary
The commission delegated to the director authority to sign a letter of agreement to subdivide the Lodge at Saint Edward leasehold so the lessee can pursue feasibility and financing for a proposed Nordic spa; if feasible, staff will return with a lease amendment potentially extending the lease term for lending purposes.
The commission on Jan. 29 approved a staff recommendation to delegate to the director (or designee) authority to sign a letter of agreement to subdivide the lease parcel at Saint Edward State Park. The subdivision would split the existing leasehold into separate leasehold lots (for the lodge and for spa parcels) to enable leasehold financing and allow the developer to pursue feasibility, design and lender due diligence for a proposed Nordic spa.
Real estate staff presented background on the 2017 lodge lease and subsequent amendments; they explained that banks typically require separate leasehold lots and a longer remaining lease term to underwrite leasehold mortgages. Developer Kevin Daniels told the commission the legislature has authorized an increase in allowable lease term (from 62 to 80 years) and that lenders have indicated a need for longer remaining term to underwrite leasehold improvements.
Nikki Fields (Real Estate Program Manager) noted that if the spa proves feasible staff would bring a lease amendment to the commission later in the year that could extend the lease to enable financing and address compliance items such as the Clean Buildings Act and a parks maintenance shop. She also reminded the commission that because portions of the property were acquired with Land and Water Conservation Fund resources, any development proposal would require review by the Recreation and Conservation Office and National Park Service to ensure continued public outdoor recreation access.
Commissioners asked about lease escalation (CPI) and the length of the existing lease; staff said the existing purchase of land was intended to cover the lease term to 62 years and that any extension would include an escalation clause to address inflation. After discussion a motion delegating authority to approve and sign the subdivision letter of agreement was moved, seconded and adopted by voice vote.
The action authorizes staff to finalize the letter of agreement to permit the lessee to pursue feasibility work; it is not approval of a spa, lease extension, or any amendments to park classification. Those items would return to the commission for separate review and potential action.
