Item A: Recovery Zone Bonds and Downtown Site Development

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Recommendations 2004, Cultural Policy Review, Mayor’s 2004 Committee on Economic Development, Growth Management Policies, Sustainable Business Initiative, and JEO’s regional economic development principles. The City’s debt policies (which are included in Attachment B) set out provisions for the use of conduit financing, which is what BMC has requested for this project. Under those policies, a project has to meet certain criteria, including that the City not incur any moral or financial obligation from the borrowing, and that the private party requesting the financing pays all of the costs of the borrowing. The Bennett Project financing will comply with the debt policies related to conduit financings except for the rating or credit enhancement requirement. Because the Bennett Project will be financed through a bank private placement loan rather than a public bond sale, this policy requirement is not needed. The resolution included in Attachment C contains a waiver of this part of the policy. COUNCIL OPTIONS 1.Approve the terms included in Attachment A, and approve the resolution designating the Recovery Zone and authorizing the Recovery Zone Facility Bonds for the BMC project. 2.Do not approve the BMC redevelopment proposal. AGENCY OPTIONS 1.Approve the ownership transfer for the Vacant Parcel from Beam to BMC, along with the assignment of development rights related to the Vacant Parcel under Beam’s Purchase and Sale Agreement. 2.Do not approve the ownership transfer. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the terms included in Attachment A, and approval of the Resolution included in Attachment B. AGENCY DIRECTOR’S RECOMMENDATION TheAgency Director recommends approval of theownership transfer for the Vacant Parcel from Beam to BMC, along with the assignment of development rights related to the Vacant Parcel under Beam’s Purchase and Sale Agreement. SUGGESTED MOTIONS City Council 1. Move to approve Bennett Management Company’s redevelopment of the Vacant Parcel and authorize the City Manager to enter into the necessary agreements consistent with the terms included in Attachment A. 2.Move to adopt Resolution No. 5014 relating to the use of Recovery Zone Facility Bonds for the Bennett Management Company project.