Assisting Arizona Department of Transportation in a Facilities Exchange
We assisted the Arizona Department of Transportation in a build to suit and forward purchase matter when it sought to replace its Flagstaff office and other facilities, including a Department of Motor Vehicles and maintenance and storage units.
ADOT entered into agreements with a developer to exchange the old ADOT facilities for new facilities located on a single property. The agreements provide for the developer to acquire the single property and develop ADOT’s new facilities on it. Upon completion, they will exchange the new facilities and property for ADOT’s old facilities.
We drafted a preliminary development agreement setting forth parameters and milestones, including identification of properties and improvements, needed entitlements and timing. We also created an implementation agreement that included a build-to-suit development agreement and agreement of purchase, sale and exchange of real property between ADOT and the developer.
Between the developer and contractor, we drafted an addendum to construction contract that provided third party beneficiary terms from the contractor in favor of ADOT.