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HOME Funds:This preliminary plan assumes $800,000 of HOME funds would be used to make <br />an affordable housing loan to the developers.Annually, the City offers federal HOME funding <br />for the development of low-income housing projects. A Request for Proposals (RFP) is issued <br />under the auspices of the Housing Policy Board. Generally, about $800,000 is available for use <br />in the subsequent fiscal year. The RFP is usually released in late fall with applications due in <br />February. Council typically approves uses of HOME funds for specific projects by May. <br />General Funds: If needed, the City’s general funds might make a minimal contribution to the <br />project. An alternative would be for the Urban Renewal Agency to take on a higher level of debt <br />that would be guaranteed by the City’s full faith & credit. These decisions will not be made until <br />the City is ready to purchase the turnkey garage. <br />3.Project Structure & Participants <br />a. Principal Developers: <br />The City selected Beam and KWG for the Redevelopment Area. Beam is responsible for the <br />renovation and development of two properties (the Centre Court and Washburne buildings). <br />KWG is responsible for the remaining Redevelopment Area. The City is in the process of <br />negotiating a Memorandum of Understanding (MOU) with each developer. The MOU is a non- <br />binding agreement that states the intent of the City and developer, the roles and responsibilities <br />of the parties, and establishes the period of exclusive negotiation to finalize a development <br />agreement. The City expects to have binding agreements in the form of a Purchase and Sale <br />Agreement (PSA) signed with each developer within the next six months. The PSA will fully <br />delineate the obligations of each developer including the form and character of the development, <br />timing, the mix of uses, required private financing and equity, and other obligations including <br />those associated with federal program compliance. <br />b. Developers’ Contractor & Leasing Agency: <br />The contractors have yet to be selected by either development team. Beam will be responsible <br />for securing leases for their buildings. Leasing for KWG will be completed by Gray & <br />Associates, one of the four KWG principals. <br />c. Private Funds Source: <br />The PSA will include requirements for commitment of all necessary private financing and <br />equity. Financing commitments will also be a condition precedent to closing on the property <br />transactions with the developers. <br />Beam equity will originate from company cash and New Markets and Historic tax credits, as <br />applicable. Beam’s financing options include Gilbert Brothers Commercial Real Estate, Bank of <br />the Cascades, and National Trust Community Investment Corporation. <br />KWG’s most likely equity partner will be ScanlanKemperBard Companies (SKB), a Portland, <br />Oregon based real estate investment banking firm. Other potential sources include NBS Realty <br />Capital, Somera Capital, and other local high net worth individuals in the Portland area. KWG’s <br />financing will most likely come from SKB with additional funds from Bank of America. <br />d. Asset Ownership Upon Completion: <br />Beam will own the Centre Court and Washburne buildings and the development on the adjacent <br />property that is currently a subsurface lot. KWG will own the retail, cinema, grocery, and <br />