Item A: URA - WG Development (10th and Charnelton)

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: Update on Sale and Development of 10th and Charnelton Site Meeting Date: March 9, 2009 Agenda Item Number: A Department: Planning & Development Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 682-5340 ISSUE STATEMENT On November 25, 2008, the Urban Renewal Agency (URA) signed a Purchase and Sale th Agreement (PSA) with W & G Development (WG) for the 10 and Charnelton site. The PSA requires WG to purchase the property by March 31, 2009, and to commence construction by November 30, 2009. In light of the national economic downturn and the uncertainty involved with current investment and construction decisions, WG has sent the URA a letter indicating difficulties in meeting the agreed-upon deadlines and requesting a minimum of six months extension (see Attachment A). BACKGROUND th A Request for Proposals was issued in March 2008 for the sale and development of the 10 and Charnelton development site. Five proposals were received by the May 30, 2008 deadline. On July 30, the Urban Renewal Agency (URA) considered two proposals, WG and Opus NWR Development. The URA selected WG as the preferred development proposal and directed staff to outline the terms of the sale and development. On October 22, 2008, the URA approved the outline of terms and directed the Agency Director th to enter into a Purchase and Sale Agreement for the sale and development of the 10 and Charnelton Development site consistent with the outline of terms. The approved outline of terms requires WG to purchase the property by March 31, 2009, and to commence construction, defined as the submission of building permits, by November 30, 2009. The URA and WG signed the PSA on November 25, 2008. In addition to approving the outline of terms for WG, the agency directed staff as follows: “in the event that the URA would be unable to successfully execute an agreement by March 31, 2009 that the URA enter into negotiations with Opus NWR Development.” The Agency clarified that formal negotiations would begin after March 31, 2009, but informal negotiations would occur before that time. th The national economic climate has affected the context for the redevelopment of the 10 and Charnelton site. Since October 2008, uncertainty over market performance and expectations has created difficulty for potential developers, tenants and lenders. Z:\CMO\2009 Council Agendas\M090309\S090309A.doc