Council authorizes conditional permit extensions to enable sale of Sundar Phase 1; vote 5–2

Lafayette City Council on April 7 approved a resolution to facilitate the potential sale of the approved Sundar Apartments Phase 1 by authorizing a time‑limited extension of the project’s expiring building permits.

Lede: The vote allows Milestone Sundar GP to assign Phase 1 to buyer Embry Development and extends Phase 1 building permits so that a closing and vertical construction can proceed, subject to a release of claims in a form acceptable to the city attorney.

Nut graf: The council’s action responds to a joint request from the current owner, Milestone, and a potential purchaser, Embry Development. Embry told council it is under contract, pursuing financing and prepared to self‑perform construction; Milestone and staff said certain technical and legal clean‑ups are necessary if ownership changes mid‑stream. To protect the city, staff required an executed release of claims and other technical assignments before finalizing the amendment.

What council authorized: The resolution, amended on the dais, instructs the city manager to execute a sixth amendment consistent with council direction. The key elements are: - If Embry closes on Phase 1, the Phase 1 building permits will be extendable through November 16, 2026 (180 days after current permit expiration). - If the Embry purchase contract terminates, council approved an amended fallback that allows an extension to October 18, 2026 (or 90 days after contract termination, whichever occurs first), giving Milestone a short window to commence construction itself. - The amendment must include a release of claims in a form approved by the city attorney before it becomes effective.

What proponents said: Embry representatives described their firm as a vertically integrated national developer and pledged commitment to build; Casey Klein (Embry) said the company had begun underwriting and raising equity and expected to accelerate construction once a closing occurs. Milestone’s attorney said the requested timelines are necessary to preserve financing and construction options.

What staff required: City Attorney Mary Lynn Maxalka told council the city sought a release of claims from Milestone and clear assignment of outstanding obligations so the city would know exactly what Embry must deliver if the purchase completes. Staff said they could produce a draft Sixth Amendment rapidly for signatures if council authorized the parameters.

Vote and outcome: The motion to approve the resolution with the amended fallback extension passed 5–2. Councilors who opposed raised concerns about additional delay risk and asked for firm milestones; the majority argued the approach balanced the city’s protections with the practicalities of a complex, mid‑stream real‑estate transaction.

Next steps: The city attorney and the buyer/seller teams will finalize the amendment language and the required release of claims; staff will record the amendment and monitor whether construction commences within the authorized windows.

Ending: The approved extension preserves the entitled project on the city’s books and aims to move a long‑stalled, entitled housing project toward construction while protecting the city by requiring release language and confirming what remains to be built.