Item B: Beam Development Project Update

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ATTACHMENT A Outline of Terms Purchase and Sale Agreement Third Amendment (Draft: 12/2/09) 1.Project Phasing: The Project will proceed in two independent phases: Rehabilitation of the Centre Court Building will be Phase I. New construction on the adjacent development site will be Phase II. 2.City Lease Commitment: The City’s commitment to lease up to 50,000 square feet for City offices in a newly constructed building is removed. The removal of the lease commitment does not preclude the City from leasing space in the new construction in the future. 3.Centre Court Project Description: Beam commits to moving forward with the proposed rehabilitation of the Centre Court Building for retail and office use consistent with the project description in the signed PSA and the design elevations submitted to the City in October 2009. 4.Commencement of Construction: Construction will proceed in stages. The demolition permit for the Centre Court Building must be submitted by February 1, 2010; the construction permit must be submitted by May 1, 2010; the Urban Renewal Agency (URA) Director may extend these dates for good cause. 5.New Construction: Beam will propose a viable project for new construction on the adjacent site by May 2011 for Urban Renewal Agency Board approval. The URA Director may extend this date for good cause. If the URA Board does not approve of the proposed development, the URA has the right to repurchase the property. 6.Beam’s Financial Investment: Beam’s financial investment in the Centre Court Building will total approximately $750,000 and will include $250,000 cash and approximately $500,000 from the combination of Business Energy Tax Credits and Historic Tax Credits. 7.City’s Financial Investment: The City’s financial investment totals $1,775,000 in Brownfield Economic Development Initiative (BEDI) grant funds. This investment is in addition to construction financing. 8.Construction Financing: The URA will offer $5,189,000 in HUD108 funds in addition to a Downtown Revitalization Loan of $350,000. The financing terms will include a 20-year amortization schedule (interest-only during construction and lease-up) with an interest rate equal to the rate paid on the City’s HUD 108 loan. The URA is unable to commit to the use of the HUD 108 funds until City Council and HUD have approved the project-specific use. (The approval process takes approximately two and a half months; an approval decision is expected by council in mid-January 2010 and by HUD in late February 2010.) If HUD approval is not granted and other sources of funds are not identified, the URA has the right to repurchase the property.