2/8/2012 9:12:00 AM Development agreement amendments for Crossroads face questions
Prescott Valley Tribune
The Town Council is poised Thursday to act on three items at the request of two companies that seek to liquidate all of its commercial and residential development interests in Prescott Valley and Prescott.
The companies have had a business relationship with Kitchell Development Co., which built the Prescott Valley Crossroads shopping center on both sides of Highway 69 near the town's western boundary. One of the companies seeks to withdraw fully from the Crossroads project.
Town officials initially entered into a development agreement July 8, 1999, with Yavapai Hills Inc. to provide incentives to develop the 463 acres that later became the shopping center, according to a report from Town Attorney Ivan Legler.
The agreement has undergone several amendments since then.
Yavapai Hills Inc. conveyed the land to its sister company, Yavapai Hills Commercial Inc., by a quit-claim deed dated July 23, 2004.
The town and Yavapai Hills Commercial amended the agreement Aug. 11, 2005, to develop Crossroads.
As land and financing arrangements progressed with businesses to locate in Crossroads, town officials agreed to partial assignments of the interests of Yavapai Hills Commercial in the amended agreement. Among other things, that led to the creation of a joint venture of Yavapai Hills Commercial and Kitchell Development to attract Home Depot to Crossroads.
The developers made similar arrangements for the land where Sam's Club and the Chase Bank branch now sit.
Yavapai Hills Commercial decided to withdraw from Crossroads and convey its interests to YK Commercial Realty, the company formed by the joint venture.
Yavapai Hills Commercial Inc. and Yavapai Hills Inc. seek to put the development obligations for the remaining property in Kitchell's hands, according to Legler.
Legler has advised the council to agree to assign the amended development agreement to YK Commercial Realty, a partial assignment to another Kitchell entity and a collateral assignment between YK Commercial and Bank of America, its lender.
The council meeting will begin at 5:30 p.m. Thursday in the library auditorium, 7401 E. Civic Circle.