AgdaPkt 2003-09-22 - Laserfiche WebLink

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ILC -z When the $7.5M developer oavment for the air rahts occurs The Amended and Restated DDA (Section 305) provides for payment of the $7.5M by the developer when the construction of the garage is 80% completed, and if the City requested payment prior to that date there would be a substantial interest charge. It was assumed, at that time, that the escrow transferring the air rights to the developer was not likely to occur until after the 80% completion date. It now appears likely that the escrow will close prior to the 80% completion date and this Implementation Agreement clarifies that the City can receive the $7.5M at close of escrow without incurring the substantial interest charge. When the developer reoays the cost of abatement and demolition of the buildings on site This agreement also provides clarity regarding the developer's responsibility for the cost of abatement and demolition of the existing buildings on the site and the terms of payment for that work. It proposes to amend Section 402A of the DDA regarding the Construction and Reimbursement Agreement to require the developer's payment of $425,500 prior to close of escrow for the air rights parcel. Alternatives 1. Do not authorize the City, Agency and the developer to enter into the Implementation Agreement. In this case, the Agency would be required to wait until 80% completion of the garage to receive significant funding or pay substantial carrying costs if it is drawn earlier. 2. Direct staff to seek alternative solutions. Fiscal Impact There will be no change from the Am( Patricia J. Webb Economic Development Coordinator 'Bruce Lledstrand Community Development Director Attachments: Implementation Agreement ended and Restat DDA regarding the fiscal impaa ctt.. Susan tIoeller Redevelopment Manager Webb /cls /CD /Agenda: Second Implementation Agreement 091603 c Ed Everett City Manager EA