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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Public Hearing: Beam Development Meeting Date: May 19, 2008 Agenda Item Number: 6 Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The Urban Renewal Agency (URA) Board provided direction to pursue a development agreement for the downtown Beam Development project. The public is asked to comment on terms to be included in a purchase and sales agreement (PSA) between Beam Development and the URA. 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, 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 Agency 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). On April 16, 2008, the URA considered next steps related to the scheduled end to the due diligence period (May 8). The URA provided direction to “1) work with Beam and the property owner to extend the timeline for the purchase option agreements on the Centre Court building and adjacent lot, and the Washburne Building, 2) work towards an assignment of the purchase options to Beam, and 3) continue to work with Beam on elements of acquisition and redevelopment financing consistent with the amounts and terms outlined in this agenda item. If an extension of the option agreement timeline is not approved prior to May 7, then the Agency Director shall inform the property owners and the escrow agent that the URA will not be acquiring the property and the deposit should be returned. If a satisfactory extension is approved, the Agency Director shall bring back terms to be included in the assignment of the purchase options to Beam as soon as practicable.” In the discussion, the URA clarified that Beam would be responsible for providing any needed extension money payments. Due to considerations for the use of federal Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee and Brownfield Economic Development Initiative (BEDI) grant funds, Y:\CMO\2008 Council Agendas\M080519\S0805196.doc