11/10/1982 Meeting - Laserfiche WebLink

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, e Mr. Sercombe began his report by saying there was a pending motion which had been tabled to this date to accept the recommendation of the Downtown Commission concerning design modifications to the Park Wi11amette Penthouse, He said there seemed to be three issues in this matter: 1) what legal remedies are available; 2) what is an appropriate resolution of the problem given the current funding needs of the developer; and 3) correction of some misleading portions of this controversy. He noted that during the construction, the developer in- curred unexpected costs due to high interest rates, litigation costs, and construction cost overruns. If at the time, the developer first asked for modifications, and those modifications had not been granted, the developer could have stopped the project. During this time there seems to have been a failure of communication between the developer and the City staff. If modifications are made, the building's value will be in excess of the original estimate of value. Staff recommends that the City Council modify the motion to allow changes previously recommended by the Downtown Commission, to request that the developer pay back City costs of approximately $3,500, and to agree to modify the contract to allow the design review committee to review modifications to the lid or penthouse and to determine at that point whether further modifications are needed to the external finish of the penthouse, the cost of such modifications not to exceed a certain amount, approximately $8,000 - $10,000, At this point the developer has agreed to approximately $42,000 worth of design changes to be completed within approximately two months. The design review e committee would then determine whether the color of the penthouse should be changed. If so, the developer would have approximately four years to do so, Finally, the developer has agreed to pay back the City's costs for the design review team and for legal expenses, Ms, Wooten asked what the amount of public investment in the development to- talled and was told by Mr. Tharp that $62,000 was spent on mall development in front of the building. Also the land was sold on the basis of a "re-use appraisal" for $125,000, The market value of the land at the time was $250,000. Mr. Obie moved, seconded by Ms. Schue that the previous motion (to approve, as recommended by the Downtown Commission, the design modification to the penthouse of the Park Willamette Building and direct the City Manager to take appropriate action) be removed from the table. Roll call vote; motion carried unanimously, Mr. Obie moved, seconded by Ms. Schue to amend the motion to instruct the City Manager to modify the contract in accordance with the City Attorney's recommendation. e MINUTES--City Council Meeting November 10, 1982 Page 5