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.
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.
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.
Extension of the contract may lengthen the projected return on investment by three years.
Submission Date and Time: 2/5/2009 9:45 AM____
Prepared by: _Jack Rogers_______
Attachments: Yes _X_ No ______
Advertised: ____Not Required _X__
Attorney Review : Yes _X_ No ____
Reviewed by: Dept. Head __JR______
Finance Dept. ___________JB______
Deputy C.M. ______EFS__________
City Manager ___________________
Account No. _ ____
Project No. ___________________
WF No. ______________________