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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: Beam Development Meeting Date: April 16, 2008 Agenda Item Number: A Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The Urban Renewal Agency (URA) provided direction to pursue a development agreement for the Beam Development project. The URA is being asked to review the status of the agreement and consider options for moving forward. BACKGROUND On December 10, 2007, the URA provided direction to pursue a development agreement for the Beam Development project and to proceed with acquisition or assignment of the purchase options on the Washburne Building, Centre Court building and adjacent lot, within the financial constraints of the current $33 million urban renewal district spending limit. On March 10, 2008, the council approved the supplemental budget action necessary to move forward with the purchase of the Centre Court building and adjacent lot ($2.8 million) and the Washburne building ($1.9 million). Also on March 10, the URA approved the supplemental budget action necessary to acquire the Diamond property ($290,360). On March 24, 2008 (the purchase option expiration date), the URA provided exercise notice of intent to purchase the Centre Court and Washburne Building properties. Consistent with the terms of the purchase option agreements, the URA paid a deposit equal to 10% of the purchase prices ($470,000). The URA is now in a 45-day due diligence period which ends on May 8, 2008. The required 10% deposit will become non-refundable after May 8. The URA has been working with Beam to draft terms to be included in a binding Purchase and Sale Agreement (PSA). The following is an outline of key terms that the URA has pursued for inclusion in the PSA: 1. PSA Signing Date: Beam will be required to sign a binding PSA no later than May 1, 2008. 2. Deposit: Upon the signing of the PSA, Beam will be required to provide a non-refundable deposit equal to 10% of the purchase price for each property. 3. Closing: Beam shall purchase the property from the URA, or take an assignment of the URA’s purchase option, prior to July 8, 2008. Beam shall demonstrate satisfactory progress regarding project financing and tenanting prior to closing. L:\CMO\2008 Council Agendas\M080416\S080416A.doc