Council OKs Trinity Site Ground Lease Amendment

Council approves an amendment to the Trinity Site Real Estate Ground Lease and Development Agreement Tuesday evening with Kroger. Councilors from left, Fran Berting, Steve Girrens, Vice Chair David Izraelevitz, Chair Geoff Rodgers, Kristin Henderson, Pete Sheehey and Rick Reiss. Photo by Carol A. Clark/ladailypost.com

Staff Report

Los Alamos County Council approved 7-0 Tuesday evening an amendment to the Trinity Site Real Estate Ground Lease and Development Agreement Topvalco, Inc., a wholly owned subsidiary of Kroger and authorized County Administrator Harry Burgess to execute the amendment.
 
Council also unanimously approved a $981,276 budget revision that includes the design and construction of utility infrastructure in Trinity Drive adjacent to the Trinity Site.
 
On Sept. 25, 2012, the County assigned the Trinity Site Ground Real Estate Ground Lease and Development Agreement (the Agreement) to Topvalco, Inc. (Kroger.) Since that time Kroger has been working on feasibility period tasks. They have submitted and received approval of a site plan, submitted their building permit and have been working with the State of New Mexico Department of Transportation (NMDOT) to obtain required road access permits for access onto N.M. 502 (Trinity Drive.) It is this last task – working with NMDOT – that has created some delay in the completion of Kroger’s feasibility period tasks. Given the significant progress on other feasibility period items and their progress to date with the State (which has been substantial) County staff recommended that the Lease be modified to allow Kroger up to two additional 30-day extensions to the feasibility period so that they can complete their prerequisite items.
 
The second portion of the amendment provides for the Lessee performing certain on and offsite work for the County (see Attachments A and C below for details.) The purpose of having the work completed by the Lessee is to avoid contractor conflicts and to ensure that the work occurs prior to the opening of the development. The general County work includes tasks associated with drainage, trails and traffic safety. The Utility work is previously planned improvements to the utilities systems.

The general County portion of the work will be paid for out of the remainder of the Trinity Site Demolition project budget. The $622,000 for the work in the amendment is the net cost of the work after taking into account the Lessee’s previous commitment to spend $50,000 on the Canyon Rim Trail. The utility portion of the work was planned for in FY 2014. The budget revision, which is included within Attachment C, moves that FY 14 budget into FY 13. The additional two 30-day extensions, if both used, will result in a 60-day delay in the start of initial rent payments of $10,000 per month.
 

A – Amendment No 1 Ground Lease and Development Agreement between County and Topvalco

B – Trinity Site Real Estate Ground Lease with Assignment

C – Utility Board Documentation

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