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

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ATTACHMENT C Update of Key Terms Purchase and Sale Agreement th 10 and Charnelton Development Site a.Purchase Price. $500,000. Change Requested: WG would be allowed to purchase the west quarter block separately from the alley and remaining quarter block. The purchase price would be prorated to $239,520. b.Project Related Fees. The City committed to pay building and related permit fees. The URA Board approved expenditure authority for estimated expenses including building permits fees on March 9, 2009. c.Deposit. $50,000. WG provided a $50,000 note for the earnest money due upon WG’s acceptance of Conditions of Closing. The earnest money becomes nonrefundable at the end of the Due Diligence Period (see item d.). Change Requested: If the project is phased, the earnest money would be split evenly between the two phases. d.Due Diligence Period. The Due Diligence Period extends from November 25, 2008 to September 30, 2009, which includes the 6 month extension authorized by the URA Board on March 9, 2009. Change Requested: If the project is phased, the Due Diligence period would remain the same and apply to the west quarter-block. e.Alley vacation. City Council vacated the mid-block, north-south alley on February 23, 2009. f.Multi-Unit Property Tax Exemption (MUPTE). City Council approved WG’s application for a th MUPTE on February 23, 2009, subject to WG’s purchase of the 10 and Charnelton property by July 1, 2009. On April 13, 2009, City Council extended the deadline for the purchase of the property relative to the MUPTE to December 31, 2009. g.Bureau of Labor and Industry (BOLI) Determination. On March 4, 2009, the City received a determination from BOLI that the project is not subject to the Prevailing Wage Rate law. Although WG did not request a change related to the BOLI determination, the project will change as a result of the proposed amendment and an update will need to be provided to BOLI. h.Timing. Currently, the sale closing for the entire property must occur no later than September 30, 2009. Change Requested: The September 30, 2009 property sale closing deadline would apply to the first phase of the project (west quarter block). Purchase of the remaining property for phase two (east quarter-block) of the project would occur by September 30, 2010. i.City Tenancy. The original PSA does not include any provision for City tenancy in the WG development. Change Requested: The City would make a commitment to lease 15,000 square feet at terms to be negotiated later.