Item A: Terms for WG Development at 10th/Charnelton

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: Review of Outline of Terms of Sale and Development of 10th and Charnelton Site Meeting Date: October 22, 2008 Agenda Item Number: A Department: Planning & Development Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 682-5340 ISSUE STATEMENT On July 30, 2008, the Urban Renewal Agency (URA) Board selected WG Development as the th preferred proposal and development team for the 10 and Charnelton Development site. The URA directed the Agency Director to enter into exclusive negotiations with WG Development and to return within 90 days with the proposed sale and development terms. The URA also directed the Agency Director to work with Opus NWR Development to explore alternative sites in the downtown area and report back to the URA on the results. BACKGROUND A Request for Proposals (RFP) was issued in March 2008 for the sale and development of the th 10 & Charnelton development site. Five proposals were received by the May 30, 2008, deadline. At a work session on July 14, 2008, staff presented information about the proposals, focusing the presentation on the WG Development and Opus NWR Development proposals. Staff analyzed both proposals in terms of the Development Objectives approved by the URA as part of the RFP. Staff also considered the analysis from financial consultant Johnson Gardner on development risks as well as comments from the Eugene Redevelopment and West Broadway advisory committees. Since the July 30 URA meeting, City staff has worked with WG Development to outline the terms of the sale and development of the site. Staff has also provided assistance to Opus NWR Development in exploring alternative downtown sites for the proposed student housing development. The following sections provide more detail on both of these efforts. WG Development Following URA direction, staff worked closely with Wally Graff and Nathan Philips of WG Development on an outline of the sale and development terms. Both staff and WG Development were in agreement regarding the resulting outline of terms as of Friday, October 10, 2008. Included in these terms were WG Development’s three requested modifications: 1) an extension to the Due Diligence period by 30 days to address project-related issues, such as tenanting and financing; 2) the ability to postpone expenditures for project design and development until after the property has been purchased, and 3) a definition of the commencement of the project as the submission of building permits. Z:\CMO\2008 Council Agendas\M081022\S081022A.doc