Staff recommends approval of an amendment to the gas service agreement with D & E Development, LLC, for the development known as Majestic Oaks Shores and approval of the Memorandum of Natural Gas Agreement.
On February 23, 2004, D & E Development, LLC and the City of Leesburg entered into a Gas Service Agreement for the development known as Majestic Oaks Shores under which the developer was required to utilize natural gas from the City. The Agreement required that thirty-six of the forty-four homes within the development use natural gas by the end of five 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 Majestic Oaks Shores 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: 2/23/2009 4:13 PM____
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. ______________________