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6.1.A. - Page 72 B. Block 2/Depot Circle Project Update Recommendation: Accept the report and authorize the City Manager to (1) enter into negotiations with Lowe Enterprises for the potential development of City- owned property on Winslow Street; and (2) negotiate and execute an agreement for Project Management Services. MINUTE ORDER 12-155 Bill Ekern, Director of Community Development, presented a brief report and noted that a draft Development Agreement has been sent to Hunter Storm. He has connected with the Winslow property owner to discuss the Lowe's Group interest in a housing option on that site. Mr. Ekern said that he would like to bring on a Project Manager to make sure the project is delivered on time, on schedule, and on track on its quality. His hope is that staff will come in September with a possible Development Agreement. Mr. Ekern also said that the Lowe representatives have discussed options with staff and they are interested in developing the Winslow site for housing. Mr. Ekern believes that this is a possibility and he is requesting Council concurrence to begin discussions along these lines. He shared a site map of the Winslow Site — Block 2 layout and discussed moving the circle to a more central area. This would add square footage to the Winslow site and address the issue of area limitations. He spoke about other development opportunities in the area. Mr. Ekern further asked if there is a need for the "circle depot" and staff has begun looking at other options that may be more regular in shape and size to accommodate a possible housing site. He shared a site map concept#2 slide (on file). One Council Member wanted to keep in mind that this could be a conduit and connection for future development. The visual portion was very important for one of the Council Members and how it would fit with the electrification of CalTrain and it could serve both those who work downtown and/or love downtown. One Council Member is not ready to give up the Depot Circle concept since he had not seen these concepts before. This Council Member would like to explore the argument of moving Depot Circle slightly but he does not want to pursue a different concept. He is happy that Lowe wants to work with the City on this but he would like to know more about the project management firm. Mr. Ekern said he has solicited proposals from five bay area firms and who are familiar with this size and type of project. Another Council Member appreciates staff thinking out of the box and exploring other options. He is open to different ways of handling projects and he is supportive of this approach. He thanked Mr. Ekern for all his hard work. Yet another Council Member applauds the efforts to make Winslow an option and he is open to having a creative approach such as a different location or shifting things however great thought went into the Depot Circle and that should be considered. This Council Member noted that the connection across the train tracks is important. Mayor Aguirre thanked the subcommittee, Council Members Foust and Seybert, for working on this project with CITY COUNCIL July 9, 2012 MEETING MINUTES PAGE 7