Item A: Beam Development Purchase and Sale Agreement Terms

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ATTACHMENT B Project Overview Beam has estimated a total project cost of approximately $38 million, including property acquisition, renovation of the Centre Court building, and construction of a new building on the vacant parcel. Beam will likely defer improvements to the Washburne Building until after the Centre Court renovation and new construction on the adjacent lot are completed. 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, plus transaction costs and funding of a debt service reserve account for the HUD Section 108 loan. The Beam 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 Section 108 program includes stringent loan underwriting criteria that will require the project to include adequate collateral and debt service coverage. The project would also have to meet a HUD national objective (elimination of slums and blight or job creation). On July 23, 2007, City Council approved the use of HUD Section 108 and BEDI funds for acquisition of the properties. This action was preceded by a July 16 public hearing at council. The proposed construction loan (URA Loan #2) would require a separate HUD application request including a public hearing and council resolution prior to HUD review and approval. The following are summaries of sources and uses for the acquisition of property and renovation/ construction: Property Acquisition SOURCES USES HUD Section 108 Loan $ 2,510,000 Acquire Centre Court Property $ 2,400,000 BEDI Grant 636,000 Acquire Washburne Bldg 1,200,000 Downtown Loan Program 454,000 Total Sources $ 3,600,000 Total Uses $ 3,600,000 Project Construction SOURCES USES HUD Section 108 Loan $ 5,187,000 Renovation of Centre Court Bldg $ 16,700,000 BEDI Grant Loan 1,313,000 New Construction 16,300,000 Bank Loan 15,500,000 Beam Equity 4,000,000 Historic Tax Credit Equity 2,000,000 New Mkt Tax Credit Equity 5,000,000 Total Sources $33,000,000 Total Uses $ 33,000,000 Y:\CMO\2008 Council Agendas\M080521\S080521A.doc