Item A: URA - Update on Sale and Development of 10th and Charnelton Site

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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: June 10, 2009 Agenda Item Number: A Department: Planning & Development Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 682-5340 ISSUE STATEMENT On March 9, 2009, the Urban Renewal Agency Board (URA) directed the Agency Director (City Manager Jon Ruiz) to allow a six-month extension to the Purchase and Sale Agreement (PSA) with W & G Development (WG) for the 10th and Charnelton site, and requested a written update on the project halfway through the six months. This Agenda Item Summary (AIS) and work session address the update and include a request by WG for further amendments to the PSA to allow project phasing and a commitment for City tenancy. BACKGROUND th On November 25, 2008, the URA Director signed a PSA with WG for the 10 and Charnelton site. The PSA required WG to purchase the property by March 31, 2009, and commence construction by November 30, 2009. On March 9, 2009, the URA directed the City Manager to amend the PSA to allow a six-month extension. The six-month extension requires the purchase of the entire property by September 30, 2009, and commencement of construction by May 31, 2010. On June 2, 2009, WG submitted a project update and requested further amendments to the PSA (Attachment A). WG stated that its commitment to the project remains strong, but that the economic conditions locally and regionally continue to be difficult. WG also noted that Pacific University, the anchor tenant identified in the proposal, will not move forward with plans to expand at this time, and attached a letter from Pacific University Vice President Darlene Morgan. WG has worked to identify other possible commercial tenants but does not have an anchor commercial tenant for the project. In light of these issues, WG requests additional amendments to the PSA, as follows: 1.WG requests flexibility to develop the property in two phases (see Attachment B: Site Diagram). Construction on the pit on the west quarter-block (Charnelton Street side) would be phase one, with construction on surface parking lot on the east quarter-block (Olive Street side) as phase two. The deadline for purchase of the property for the first phase would remain the same, September 30, 2009. 2.WG requests that the deadline for the purchase of phase two be September 30, 2010. 3.WG requests that the City commit to leasing 15,000 square feet of office space as the anchor commercial tenant in the first phase of development. The City could utilize the space for City functions, or could lease the space to other commercial tenants. Z:\CMO\2009 Council Agendas\M090610\S090610A.doc