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4. URA Loan #1: The URA shall provide financing for Beam’s purchase of the properties in an amount equal to the purchase prices of $4.7 million (minus the deposit). The financing terms would likely include a 20-year amortization schedule (interest-only during construction) with a 10-year balloon payment and an interest rate equal to the rate paid on the City’s HUD Section 108 loan. 5. URA Loan #2: The URA shall provide financing for Beam’s renovation of the Centre Court building and new construction on the vacant parcel in an amount equal to approximately $5 million. The financing terms would include a 20-year amortization schedule (interest-only during construction) with a 10-year balloon payment and an interest rate equal to the rate paid on the City’s HUD Section 108 loan. The URA is unable to commit to Loan #2 until City Council and HUD have approved the project-specific use of the borrowed HUD Section 108 funds. 6. Contingent Repayment of BEDI Proceeds: The portions of Loan #1 and Loan #2 derived from BEDI grant proceeds will be repaid on a contingent basis, after Beam has reached its target return on investment (13%). 7. Project Description: The PSA shall include a commitment from Beam to move forward with a project consistent with their proposal, including rehabilitation of the Centre Court building and a newly constructed building of approximately 75,000 square feet on the adjacent parcel. The Centre Court building will be designed for retail, office, and sub-surface parking consistent with the design elevations submitted in Beam’s February 2007 RFQ response. The adjacent building will also be designed for retail, office, and sub-surface parking. 8. Project Timing: Beam shall commence construction of the project no later than 150 days following their purchase of the property and complete construction no later than two years after the signing of the PSA. 9. Reversionary Clause: In the event that Beam does not meet the construction and completion timeline included in the PSA, the URA would have the right to re-purchase the property. Beam has estimated the total construction costs for the renovation of the Centre Court building and the new adjacent building to be approximately $33 million. Beam continues to be interested in purchasing the Washburne Building, although they would likely defer improvements until after the Centre Court renovation and new construction on the adjacent lot are completed. The Centre Court building and adjacent lot continue to be one of the sites that the Oregon Research Institute (ORI) is considering for relocation. Beam has submitted a proposal, and ORI is expected to select a site in early May. Although Beam has indicated that they plan to move forward if ORI does not select them, it is assumed that Beam’s ability to finance the proposed project would be enhanced with an anchor tenant such as ORI. The URA’s financial participation in the project would be limited to approximately $10 million in financing provided to Beam for acquisition of property and renovation/construction. The financing would be structured as interest bearing, secured loans that would be repaid from income derived from the completed project. The proposed source of funding includes proceeds from the HUD Section 108 loan ($8 million) and the BEDI grant ($2 million). The HUD Section108 program includes stringent L:\CMO\2008 Council Agendas\M080416\S080416A.doc