FAQs: Frequently Asked Questions
If the City transfers the land on the South side prematurely, might the developer use it for a loan on the North side or just quit and keep the land?
The developer is not allowed mortgage the South Phase land to benefit the North Phase, but (as discussed above) it can use the South Phase land if it finances the Club improvements and the South Phase together at the same time. However, if it quits and never develops the South Phase as contemplated, the City has a reversionary interest -- the right to take the South Phase land back at no cost to the City. And if nothing happens on the South Phase, the lender will not have provided any money for the South Phase, making it easier for the City to reclaim the South Phase property.