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<br />ATTACHMENT C <br /> <br />Financing Strategy for Purchase of the Garage and 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. As men- <br />tioned in the presentation, however, because this transaction will not occur for over one year, <br />circumstances could change. Ifresources available for completion of this project are insufficient <br />to cover the budget authorization for the project, a revised financing strategy would be brought <br />back to council. <br /> <br />Cost of the Garage - Option 4 <br />Four public garage development options were described in previous council materials. The chart <br />below sets out the costs for Option 4, which is the option chosen by council at the February 13 <br />meeting. <br /> <br />Payment to Developer <br />City Project Manager <br />City Attorney <br />1 % for Art <br />Environmental Assessment <br />Relocation/upgrade of Utilities <br />Debt Issuance Costs <br />Miscellaneous/Contingency <br />Total Project Costs <br /> <br />Option 4 <br />260 spaces with retail <br />$6,700,000 <br />70,000 <br />75,000 <br />70,000 <br />25,000 <br />570,000 <br />75,000 <br />50,000 <br />$7,635,000 <br /> <br />Debt Service Reserve Fund <br />Total Funding Need <br /> <br />$400,000 <br />$8,035,000 <br /> <br />Payment to Developer: This is the largest component of the project cost, representing <br />payment to the developer for purchasing the garage with approximately 260 spaces for public <br />ownership with publicly-owned commercial space. This payment includes all of the costs of <br />completing the garage, such as the cost of site work, design, permitting and construction. <br /> <br />City Project Manager: 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 />City Attorney: The City Attorney will work with staff and the developers to draft the <br />Development Agreement and any other legal documents required for the project. <br /> <br />1 % for Art: The City must contribute 1 % for art on this project. <br /> <br />Environmental Assessment: For the land swap transaction, the City will have to provide <br />an environmental assessment of its property. <br /> <br />LICMOl2006 Council AgendasIM060222IS060222A.doc <br />