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ATTACHMENT E <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. Because <br />this transaction will not occur for over one year, circumstances could change. If resources <br />available for completion of this project are insufficient to cover the budget authorization for the <br />project, a revised financing strategy would be brought back to council. <br /> <br />Cost of the Garage – Option 4 <br /> <br />Four public garage development options were described in previous council materials. The chart <br />below sets out the costs for Option 4, which was the option chosen by council at the February 13 <br />meeting. <br /> <br />Option 4 <br /> 260 spaces with retail <br />Payment to Developer $6,700,000 <br />City Project Manager 70,000 <br />City Attorney 75,000 <br />1% for Art 70,000 <br />Environmental Assessment 25,000 <br />Relocation/upgrade of Utilities 570,000 <br />Debt Issuance Costs 75,000 <br />Miscellaneous/Contingency 50,000 <br /> Total Project Costs $7,635,000 <br /> <br />Debt Service Reserve Fund $400,000 <br /> Total Funding Need $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 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: <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 /> City Attorney: <br /> 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: <br /> The City must contribute 1% for art on this project. <br /> <br />Environmental Assessment: <br /> For the land swap transaction, the City will have to provide <br />an environmental assessment of its property. <br />L:\CMO\2006 Council Agendas\M060315\S060315A.doc <br /> <br />