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

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On Monday, October 13, staff received notification from WG Development that Pacific University, intended as the primary commercial tenant, needed additional time to determine their th needs relative to the 10 and Charnelton project. Subsequently, WG Development requested that the Due Diligence Period be extended; staff agreed to this change. Staff requested that the purchase date of March 31, 2009, be held firm; WG Development agreed to this request. The revised outline of terms is provided as Attachment A; a summary of the key terms is provided below. The letter from Pacific University is included as Attachment B. A memo discussing the changes in the project timeline is provided as Attachment C. Following approval of the outline of terms by the URA, the Agency and WG Development will enter into a formal Purchase and Sale Agreement (PSA). Key Terms (as of October 13, 2008) Purchase Price ? $500,000 cash. Note: WG Development proposed paying $1,000,000 in project-related costs; a portion of this money has been allocated towards the purchase price and the remainder towards System Development Charges (SDCs). Deposit ? WG Development will provide a $50,000 deposit as earnest money. The earnest money becomes non-refundable at the end of the Due Diligence Period. Due Diligence Period ? The Due Diligence Period runs from the time the PSA is signed through March 30, 2009, a period of approximately 120 days. During this time, WG Development has the opportunity to review property information and address project-related issues. Note: The PSA needs to be signed within 30 days of URA approval of terms. Alley vacation ? Prior to the sale closing, the City will process an alley vacation application to vacate the mid- block, north-south alley. Note: the portion of the alley to be vacated is shown on Attachment D. Multi-unit Property Tax Exemption (MUPTE) ? If requested, the City will process an application for a MUPTE. Bureau of Labor and Industry (BOLI) Determination ? The City will submit a request to BOLI to determine if the proposed project is subject to the Prevailing Wage Rate law. Note: If the project is subject to this law, labor costs for the project could increase significantly. As a result, either the Agency or WG Development may terminate or renegotiate the terms of the PSA. Timing ? The sale closing will occur no later than March 31, 2009. Building permits for the project must be submitted by November 30, 2009. The URA maintains the right to extend these timelines. Opus NWR Development Following URA direction regarding Opus NWR Development, staff identified alternative downtown sites for the proposed student housing development. The sites included the north half Z:\CMO\2008 Council Agendas\M081022\S081022A.doc