Title
An Ordinance approving documents related to the second transfer of property within the Blue Parkway and Colbern Road Redevelopment Area to St. Luke's East Hospital and authorizing other actions in connection with said transfer of property.
(Note: First read by Council on May 5, 2026. Passed by unanimous vote.)
Body
This ordinance will approve documents that facilitate the transfer of property to St. Luke’s East Hospital within the Blue Parkway and Colbern Road Redevelopment Area of the Chapter 353 Redevelopment Plan. This request is substantially similar to a request approved in 2016 by the City Council to facilitate the transfer of about 13.5 acres of property to St. Luke’s East Hospital.
Proposed City Council Motion:
I move for second reading of An Ordinance Approving Documents Related to the Second Transfer of Property Within the Blue Parkway and Colbern Road Redevelopment Area to St. Luke's East Hospital and Authorizing Other Actions in connection with said Transfer of Property.
Background:
The Council approved the Chapter 353 Redevelopment Plan on March 22, 2012, pursuant to Ordinance No. 7164 and on May 17, 2012, the Council approved a First Amendment to the Redevelopment Plan, pursuant to Ordinance No. 7186.
The City, Unity, Bernell K. Rice, and the Blue Parkway and Colbern Road Redevelopment Corporation entered into a Redevelopment Agreement on May 1, 2012, to implement the Redevelopment Plan, and on May 17, 2012, pursuant to Ordinance No. 7186, the Council approved the First Amendment to the Redevelopment Agreement.
The Blue Parkway and Colbern Road Community Improvement District was formed by the Council pursuant to Ordinance No. 7165 on March 22, 2012, and the City and the District entered into a Cooperative Agreement on April 30, 2012 which provided for the implementation of the Community Improvement District.
The Redevelopment Agreement provides that in the event of a property transfer, a proposed transferee will execute a Transferee Agreement that complies with Exhibit E of the Redevelopment Agreement with the City before a sale shall occur and that any change to the form of Transferee Agreement will be approved by the City Council before it can be executed by the Mayor.
In 2016, 13.58 acres within the redevelopment area was proposed to be purchased to Saint Luke’s East Hospital and Saint Luke’s requested that the documents be amended to facilitate the transaction. From this request, the Council approved Ordinance No. 7886 on May 19, 2016, which approved the requested transfer and amended the relevant document to provide that the special assessments would not be imposed on the property acquired by St. Luke’s. The current request is substantially identical to the 2016 request, except that the 353 Plan is not proposed to be amended for the current land transaction.
The City and the Blue Parkway and Colbern Road CID entered into the First Amended and Restated Cooperative Agreement dated August 22, 2023 (the "Amended & Restated Cooperative Agreement"), which amended the original Cooperative Agreement to account for the CID revenues to be generated by the Discovery Park project. St. Luke’s has requested an amendment to Amended & Restated Cooperative Agreement to accomplish request and provide that special assessments will not be imposed on the newly-acquired St. Luke’s property.
Impact/Analysis:
The documents provide that (a) the Saint Luke’s Property will not be transferred to the Corporation prior to conveyance to Saint Luke’s and will not be subject to Tax Abatement as provided in the Redevelopment Plan, (b) during the time that Saint Luke’s or its affiliates owns the Saint Luke’s Property it will be excluded from the imposition of special assessments imposed by the District, (c) during the time that Saint Luke’s or its affiliates owns the Saint Luke’s Property sales which occur on the Saint Luke’s Property that are exempt from tax under State law and other local laws, apart from the CID Act, shall also be exempt from the CID District Sales Tax, and (d) additional related terms and provisions as set forth in the Exhibits attached documents.
Timeline:
St. Luke’s proposes to complete the land transaction in 2026.
Presenter
David Bushek, Gilmore & Bell, P.C., Economic Development Legal Counsel.