Ben Noble/bdn

PSB redevelopment  reso. fiscal note

7/26/07

Ver. 1                                                                                                                                     

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Legislative	Ben Noble, 4-8160

Legislation Title:

A RESOLUTION requesting that the Director of the Fleets and Facilities Department negotiate a Purchase and Sale Agreement, and Civic Square Agreement with Triad Civic Center LLC for the sale of the former Public Safety Building block and the development of a civic square on a portion of that site, consistent with the Civic Center Master Plan and with redevelopment objectives outlined in the City’s September, 2006 Request for Proposals.

· Summary of the Legislation:

This Resolution requests the Director of the Fleets and Facilities Department to complete negotiations on a Purchase and Sale Agreement and a Civic Square Agreement with Triad Civic Square LLC (“Triad”) for the redevelopment of the former Public Safety Building block (the “Site”).  The Resolution also endorses the program principles encompassed in Triad’s conceptual design for the Civic Square and associated retail spaces on the Site, and supports the inclusion of these principles in the Civic Square’s schematic design.

· Background:  

In May 2005, Resolution 30769 stated the City’s preferred approach to completion of the Civic Center Master Plan and the redevelopment of the Public Safety Building block and directed that, through a public process, proposals be solicited for redevelopment of the Site.

A Request for Concepts for redevelopment of the Site was published and distributed in April, 2006 and three of the development teams responding to the Request for Concepts were invited to respond to a Request for Proposals issued in September, 2006.  One of the finalists, Wright Runstad, withdrew from the process; proposals were submitted by Triad Development and OPUS.  In January 2007, Triad Civic Center LLC (“Triad”) was selected as the preferred developer for redevelopment of the Site.  In February, 2007, the City and Triad signed a Letter of Intent demonstrating the City’s intent to proceed with the sale of the Site to Triad and Triad’s commitment to develop a portion of the Site as a public plaza (the “Civic Square”).

Since the execution of the Letter of Intent, the City has been working with Triad to outline and negotiate the terms of the multiple agreements that will be necessary to implement this redevelopment project.  Concurrently, Triad and their design team (GGLO, Foster + Partners and Atelier Dreiseitl) have been doing further design work based upon the concepts presented in Triad’s proposal.  The proposed Resolution would confirm the design principles and objectives and general terms of the agreement, supporting the redevelopment project’s continued progress toward implementation.

· Please check one of the following:

___X_ This legislation does not have any financial implications

Subsequent legislation will be required to authorize execution of the finalized purchase and sale agreement, a development agreement and other related documents.  While this resolution does not have financial implications, it does confirm the City’s intent to continue to negotiate a transaction and redevelopment plan based upon the proposal submitted by Triad and the documents incorporated into the resolution.

The underlying structure of the proposed transaction and redevelopment is that the City will convey the full development rights for the Site in exchange for the Civic Square, a public plaza to be developed consistent with the design principles and other agreements articulated in the Resolution’s attachments.  The transaction and redevelopment agreements will also provide for an ongoing fund source for programming, operation and management of the Civic Square via dedicated revenues from the associated retail spaces.

As required under City policy, a "CLEAN" hearing will be scheduled at least 30 days in advance of Council action on legislation to approve the Purchase and Sale Agreement and the Civic Square Agreement that are anticipated by this resolution.