EDC 05-21-2013 - Laserfiche WebLink

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EDC Meeting Agenda May 21, 2013 Page 5 Timing: APi will close on the land by the end of this year and start construction on the first building by January 1, 2014. The first building must be completed by December 31, 2014. This accelerated construction schedule should result in earlier tax increment receipts. If they complete the first building by the deadline,they would have until December 31, 2015 to close on the north parcel and start construction; and then finish the second building by December 31, 2016. In short,they must close and development the first building in order to have the right to buy and development the north parcel. Additionally, if they don't proceed with any development,the company will be required to continue their payments to the City for the smaller building; the details are described below. Due Diligence: This needs further refinement. Right now the term sheet states that APi would have until July 15th to conduct their due diligence work. That won't be enough time and given a December 31, 2013 closing date, means that the City may need to grant interim site access to conduct due diligence. Master APi has agreed to participate in a master association that would be Association: responsible for certain public amenities. These costs and respons- ibilities need to be defined in the Redevelopment Agreement. Fees: The developer will pay all of the customary fees (i.e. building permits, SAC/WAC and park dedication)that are required of a typical development. These will be delineated in the Redevelopment Agreement. Other APi is prepared to pay $138,000 in cash at closing on the south Consideration: parcel. This money is consideration for the City's willingness to sell the site in a phased approach and keep the north lot off the market for 2 years. The value was negotiated and reflects several factors, including the potential lost taxes (opportunity cost to the City). Existing APi is contractually obligated to build the 9,000 square foot building Obligations: which would ordinarily generate a certain amount of tax increment. APi initially requested to be relieved of its obligation to construct the smaller building. Staff pushed for consideration on the option parcel, which is described above. The combination of the larger development project and option payment is financially beneficial to the City; relative to the smaller building and no other immediate development prospects for Block G. In the event that APi doesn't