04-27-2004 CC RPT 04 - Laserfiche WebLink

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People Serving People CITY OF RIVERSIDE AGENCY MEMORANDUM Riverside ~lI-Amerlca Cit~ 1998 HONORABLE MAYOR AND AGENCY MEMBERS DATE: April 27, 2004 ITEM NO: 4 SUBJECT: PROVIDE GUIDANCE TO CARRY OUT THE BUSINESS TERMS/ESCROW RELATED TO THE UNIVERSITY VILLAGE SEVENTH IMPLEMENTATION AGREEMENT - UNIVERSITY CORRIDOR/SYCAMORE CANYON PROJECT AREA BACKGROUND: The Developer at University Village is aggressively working towards securing the construction financing and equity placement for both the student housing tower and Building F/G. Staff has been informed that the contractor, R.D. Olson is attempting to remobilize once again to commence construction at the student housing site. The eight-story student housing project with an estimated value upon completion of $38 Million Dollars is scheduled to be complete by August 2004, in time for the Fall 2004 quarter at University of California Riverside. With this crucial schedule, the window of opportunity to get the project back underway is now at hand. CURRENT ISSUE: The Agency has a financial interest at University Village; specifically, the $7.0 Million Dollars borrowed from the City to construct the parking structure. Under the Seventh Implementation Agreement, the Developer is to 1) Pay the Agency $3.6 Million Dollars to retire their portion of debt on the parking structure; 2) Provide the Agency with a letter' of credit in the amount of $280,000 to secure any tax increment shortfalls on Phases II and III of the project; and 3) Provide a Grant of Easement to the City of Riverside for the two lower ground levels of 1:he parking structure. Additional securities include the Agency's first position of the shortfall agreements with all the existing lenders in second position. Staff has been informed that construction financing may soon take place. This transaction, including all the above-mentioned items must be carried out through an escrow as outlined in the Seventh Implementation Agreement. In order to help meet these conditions of Escrow, staff is seeking guidance relative to a successful closing of Escrow for' those business terms that affect the Agency. RECOMMENDATIONS: That the Redevelopment Agency: Provide staff with guidance relative te the successful closing of Escrow pursuant to the Seventh Implementation Agreement. Authorize the Executive Director to carry out the guidance, as may be required and appropriate, including execution of needed docurnent. Prepared by: Rosemarie Gonzales(~ Project Manager Approved by: ~,~ George ,~. Caravalho City Manager/Agency Executive Director 4-1