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ATTACHMENT E
<br />
<br />Financing Strategy for Purchase of the Garage and Optional Commercial Space
<br />
<br />The financing strategy set out in this attachment is a description of the general approach that the
<br />City and the Urban Renewal Agency could take when paying for the garage project. An addi-
<br />tional optional financing strategy is included at the end of this attachment.
<br />
<br />Certain aspects of the financing strategy cannot be finalized at this time. For instance, the pay-
<br />ment to the developer could change up until the time that the development agreement is signed.
<br />Staff is working with the developers and the utilities to determine if there are ways to minimize
<br />the costs for utility upgrades and relocations. The amount of money that the City or the Urban
<br />Renewal Agency could borrow will depend on resources available and market conditions at the
<br />time of the borrowing (more than one year from now). Due to these uncertainties, the strategy
<br />set out in this attachment could change.
<br />
<br />Cost of the Garage
<br />
<br />Four public garage development options are described in the council materials, along with the
<br />associated payments to the developer for the purchase of the garage, which represents the largest
<br />cost for the project. There are a number of other costs for the project, however. The estimated
<br />costs for the options are set out in the chart below:
<br />
<br />Option 2 – Option 4 –
<br />Option 1 – 186 spaces Option 3 – 260 spaces
<br /> 192 spaces with retail 266 spaces with retail
<br />Payment to Developer $4,810,000 $5,180,000 $6,320,000 $6,700,000
<br />City Project Manager 50,000 55,000 65,000 70,000
<br />City Attorney 75,000 75,000 75,000 75,000
<br />1% for Art 50,000 55,000 65,000 70,000
<br />Environmental Assessment 25,000 25,000 25,000 25,000
<br />Relocation/upgrade of Utilities 570,000 570,000 570,000 570,000
<br />Debt Issuance Costs 75,000 75,000 75,000 75,000
<br />Miscellaneous/Contingency 50,000 50,000 50,000 50,000
<br /> Total Project Costs $5,705,000 $6,085,000 $7,245,000 $7,635,000
<br />
<br />Debt Service Reserve Fund $400,000 $400,000 $400,000 $400,000
<br /> Total Funding Need $6,105,000 $6,485,000 $7,645,000 $8,035,000
<br />
<br /> Payment to Developer:
<br /> This is the largest component of the project cost, representing
<br />payment to the developer for purchasing the garage with between approximately 190 and 270
<br />spaces for public ownership, with optional publicly-owned commercial space. This payment
<br />includes the all costs of completing the garage, such as the cost of site work, design, permitting
<br />and construction.
<br />
<br /> City Project Manager:
<br /> The City should have a staff representative that works with the
<br />developer and their architect and construction team to ensure that the garage will meet City
<br />standards for garage projects, and that the components of the project will be compatible with
<br />other City garage components. This is similar to what the City did when the Pearl Street Garage
<br />was built and subsequently purchased by the City.
<br />
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<br />L:\CMO\2006 Council Agendas\M060208\S060208B.doc
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