02/13/1985 Meeting (2) - Laserfiche WebLink

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M E M 0 RAN DUM e February 7, 1985 TO: Mayor and eity Council as the Eugene Renewal Agency FROM: Eugene Development Department Staff SUBJECT: PRELIMINARY DEVELOPMENT AGREEMENT FOR THE DOWNTOWN RETAIL DEVELOPMENT PROJECT The current exclusive negotiating agreement between the City and Price Develop- ment Company and Sonoma Financial Corporation, granting those parties the exclusive right to negotiate for the development of a major retail project in certain areas of downtown, expires of February 18, 1985. The agreement called for the developer to retain an architect, develop a site and concept plan, and identify property for acquisition. The developer has met the terms of the agreement. The next steps in the development process are detailed in the attached chart of the development agreement process. Under the terms of the proposed Preliminary Development Agreement the City (as the Eugene Renewal Agency) would assume responsibility for the completion of appraisals of property situated within the project area; and arrange for the development of cost estimates for public improvements; land acquisition, and business relocation expenses associated with the project. - The developer would be responsible for further revision and refinement of the project concept plan for agency approval, for securing commitments from major anchor retail tenants, for projecting final development costs for the project, and for meeting monthly in Eugene to discuss project progress and related issues. The developer will--as a further expression of a good-faith commit- ment to the project--provide a letter of credit in the amount of $50,000 as additional security to the agency for the satisfactory completion of his obligations under this agreement. This additional security will supplement the $100,000 letter of credit already committed by the developer. This Preliminary Development Agreement represents the next step in the development process, an interim step between the Exclusive Negotiating Agree- ment and the final Disposition and Development Agreement. The term of this agreement will continue through August 1985, with an opportunity to extend the agreement for an additional 90 days if the developer has made substantial progress and is nearing completion of obligations under the agreement. The City Council, in its capacity as the Eugene Renewal Agency, will consider the proposed Preliminary Development Agreement--and an authorized motion-- at its meeting of February 13. The Downtown Commission will review the agreement at their February 12 meeting and forward a recommendation to the Council. A copy of the proposed agreement is provided under separate cover. JB:ky/Wa6 -