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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 /> <br /> <br />L:\CMO\2006 Council Agendas\M060208\S060208B.doc <br /> <br />