Item A: Beam Development Purchase and Sale Agreement Terms

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deposit and the additional $50,000 deposit from Beam will become non-refundable after May 23. Prior to May 23, the URA and Beam will sign a binding PSA. On May 14, 2008, the URA received an overview of the potential terms to be included in the agreement with Beam. At that meeting, the following key points for the Beam Development project were highlighted: ·Revitalization of this prime downtown corner is a significant step to provide momentum for other downtown redevelopment. ·Redevelopment of the downtown core is a longstanding City Council and community goal. ·The City is moving the project forward in a financially responsible manner given our limited public resources. ·The proposal structures public financial participation to minimize risk and maximize results. ·The current property owner, Connor-Wooley, has extended the due diligence period to May 23, when the Purchase and Sale Agreement will be signed. ·The current owner has reduced the purchase price by $1.1 million. ·Beam will pay the additional $50,000 deposit for the extension. ·A top priority is to assist Beam in their work to secure private tenants that will provide maximum benefit toward downtown revitalization goals. ·The demonstrated commitment of all parties to the project is encouraging and is critical to its success. 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, staff has determined that it is in the best interest of the Agency to purchase the properties and sell them to Beam rather than to assign the purchase options to Beam. The properties will subsequently be conveyed to Beam in a simultaneous closing of escrow. The URA and Beam have negotiated terms to be included in the PSA. On May 19, 2008, a public hearing will provide an opportunity for comments on the terms to be included in the PSA. A summary of the terms is included in Attachment A. An overview of the project is included in Attachment B. The complete Purchase and Sale Agreement document is included in Attachment C (delivered under separate cover). RELATED CITY POLICIES The proposed redevelopment along West Broadway is consistent with the policies and implementation strategies included in the Downtown Plan, including: ·Downtown development shall support the urban qualities of density, vitality, livability and diversity to create a downtown, urban environment. ·Actively pursue public/private development opportunities to achieve the vision for an active, vital, growing downtown. ·Use downtown development tools and incentives to encourage development that provides character and density downtown. ·Promote multi-story, mixed-use structures downtown through financial incentives or code amendments. Y:\CMO\2008 Council Agendas\M080521\S080521A.doc