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

Home Browse Search

ATTACHMENT C Planning & Development Community Development City of Eugene th 99 W. 10 Avenue M Eugene, Oregon 97401 EMORANDUM (541) 682-5443 (541) 682-5572 FAX www.eugene-or.gov Date: October 13, 2007 To: Mayor Piercy and City Council From: Nan Laurence, 682-5340 Community Development Planner,Community Development Division th Subject: TIMING FOR WG PROJECT AT 10 AND CHARNELTON SITE Since the proposal submittal by WG Development (WG) was selected by the Urban Renewal Agency Board (URA) in July 2008, the timeline for the project has been extended. The purpose of this memo is to highlight and explain the changes in the project timeline. The original timeline indicated project selection at the end of July and occupancy 13 months later, in September 2010. The revised timeline has been extended by approximately 10 months, for occupancy in July 2011. The primary factors are time needed to negotiate and sign the Purchase and Sale Agreement (PSA), the addition of a Due Diligence Period, and more time to complete design and construction documents. WG had originally assumed that a PSA would be signed within 30 days. However, direction from the URA provided 90 days for staff to return with the outline of terms of the PSA. In the draft outline of terms, staff included a Due Diligence Period of 60 days for WG to inspect the property and resolve any environmental issues, with the understanding that the earnest money would be refundable during this period. At the request of WG, staff extended the Due Diligence Period to 90 days and broadened the issues to include financing, tenanting, and other project related issues. Staff also agreed to new assumptions from WG regarding the time required for design and construction documents and expanded the time for this component of the project by 60 days. As of the date of this memo, additional factors have come to light which further affect the project timeline, although not the purchase deadline of March 31, 2009. Based on a letter to WG and a follow-up conversation with City staff, Pacific University maintains their commitment as the primary commercial tenant in the project. However, the University requires additional time to determine short term as well as long term square footage requirements in the project, and to resolve financing issues due to the current economic situation. The Due Diligence Period has, therefore, been extended to March 30, 2009, approximately 120 days from the date the PSA is signed; the end of this period now corresponds with the March 31, 2009 deadline to purchase the property. Please contact me at 682-5340 or via e-mail (nan.laurence@ci.eugene.or.us) if you have questions or need additional information.