AGENDA MEMORANDUM

 

Meeting Date:           February 9, 2009

 

From:                          Jack Rogers, Gas Director

 

Subject:                      Resolutions authorizing execution of an amendment to the Gas Service Agreement with Pillar Development, LLC, for Crestridge at Leesburg and a Memorandum of Natural Gas Agreement

 

 

Staff Recommendation:

Staff recommends approval of an amendment to the gas service agreement with Pillar Development, LLC, for the development known as Crestridge at Leesburg and approval of the Memorandum of Natural Gas Agreement.

 

Analysis:

On February 13, 2006, Pillar Development, LLC and the City of Leesburg entered into a Gas Service Agreement for the development known as Crestridge at Leesburg under which the developer was required to utilize natural gas from the City.  The Agreement required that forty five of the fifty one homes within the development use natural gas by the end of three years from the date of the Agreement.  However, due to economic conditions, the developer has only developed nine of the lots.  All nine use natural gas.  The developer has requested a three year extension of the term of the Agreement to afford time to complete his development. 

 

The purpose of the Memorandum of Natural Gas Agreement is to place on notice the public, potential purchasers and others who may acquire any interest in the Development or any portion thereof, of the requirements imposed by the Gas Service Agreement.

 

Options:

1.  Approve the amendment to the gas service agreement for Crestridge at Leesburg and approve the Memorandum of Natural Gas Agreement; or

2.  Such alternative action as the Commission may deem appropriate.

 


 

Fiscal Impact

Extension of the contract may lengthen the projected return on investment by three years. 

 

Submission Date and Time:    2/5/2009 9:45 AM____

Department: _____Gas_______

Prepared by:  _Jack Rogers_______                     

Attachments:         Yes _X_   No ______

Advertised:   ____Not Required _X__                     

Dates:   __________________________                      

Attorney Review :       Yes _X_  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head __JR______

 

Finance  Dept. ___________JB______                                     

                              

Deputy C.M. ______EFS__________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _                           ____

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________