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HomeMy WebLinkAboutRES 82-330 zL" X02- 3,30 R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to enter into a development agreement with the Central City Development Corporation and Cranston Development Corporation for the development of the Downtown Market Place Project in substantially the form attached hereto as Exhibit "A" and made a part hereof. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 190 A - Mayor - s 4 1 [ a o This Development Agreement is made this day of , 1982, by and between the City of Beaumont, a municipal corporation of the State of Texas (hereinafter referred to as the "City" ) ; the Central City Development Corporation (hereinafter referred to as "CCDC" ) ; and Cranston Development Corporation (hereinafter referred to as "Cranston" ) . W I T N E S S E T H: WHEREAS , the City is in support of efforts for the continu- ing revitalization of the downtown and has assigned CCDC the task of facilitating or being a catalyst for implementation of approved downtown development projects; and , WHEREAS, toward accomplishing their assignment, CCDC has retained the services of Zuchelli, Hunter & Associates, Inc. , (ZHA) of Annapolis, Maryland to provide development consultation services and to assist CCDC in causing desired development; and , WHEREAS , CCDC and ZHA have ceveloped a proposed program and plan for a redevelopment project generally located in the area bordered by Bowie Street, Neches , Laurel Street and Park Street and including a portion of the block immediately across from the site and south of the intersection of Crockett and Neches Streets which has been proposed for a parting site; and -3 3 6 -2- WHEREAS , said redevelopment program being proposed consists of new construction, rehabilitation and public improvements to create a high-quality integrated mixed-use (office , specialty retail and eating/drinking/entertainment) development which shall consist, in part, of the following components and approximate sizes: Public Improvements: • Parking construction of as close to 500 surface spaces as possible on the parking lot north of the project area; • Necessary street and sidewalk improvements including the widening of Neches and perimeter sidewalks and related curb and gutter improvements; and • Minor required site improvements. Private Improvements : • New building construction (34 , 000 gross square feet) ; • Renovation of existing buildings ( 91 ,000 gross square feet) ; and • Requisite tenant improvements; and • Ice Rink (4 , 800 square feet and associated uses ) ; • Pedestrian Plaza (57 , 475 square meet and associated decorative improvements ) ; WHEREAS, Cranston has reviewed the proposed program and plan and agrees to the overall development Dlan as currently envisioned ; and, -3- WHEREAS , the parties hereto deem it to be in their mutual best interest to cooperate and to coordinate development. Accordingly, the City has determined that the public interest can best be served by the execution of this Development Agreement with Cranston receiving designation as project developer; and, VMEREAS , during the effective term of this Development Agreement, the parties to this Agreement agree to accomplish respective actions and activities as specified below. It is understood by all parties to this Agreement that this Develop- ment Agreement may be cancelled in the event that any of the parties fails to carry out responsibilities as agreed herein, if acceptable project financing cannot be obtained , or if the project is subsequently determined , and mutually agreed by the participants hereto to be infeasible. NOW, THEREFORE, for and in consideration of the mutual promises herein contained and with successful- project implementa- tion being the common objective , the parties to this Agreement do hereby agree as follows: A. CITY COMMITMENTS 1. The City shall ensure the issuance of all necessary permits, licenses and approvals of any kind which shall be required with respect to project development shall be available on proper application, -4- payment of requisite fees and other compliance with applicable laws , rules and regulations. 2 . The City and CCDC agree to exert their best efforts to secure funding associated with development of appropriate public project components . The capital cost of providing the public project components is estimated at $2 million to include: a. Property acquisition for public S 1 Million project components and land lease to Cranston for pedestrian plaza. b. Construction and site improvements $ 750, 000 associated with the project as pro- posed including street improvements, and parking construction c. Fees including architectural and $ 100, 000 engineering fees and legal/finance/ insurance/accounting fees/deve-lop ment fees d. Contingency $ 150 , 000 TOTAL 3 . The City agrees to designate Cranston for design and engineering services associated with the expansion of the parking lot north of the project area, to be provided by properly licensed architects and engineers, and agrees that compensation for such services shall be calculated at 4 . 5 percent of total qualifying public construction and site improvements costs plus reimbursable expenses as defined in AIA Document No. ,e4.2336 -5- 4 . The City agrees that significant costs (currently esti- mated to be approximately $160 ,000 ) associated with architectural and engineering studies and other project packaging activities -will be incurred by Cranston during the effective term of this agreement as a prerequisite to responsibly developing the detailed project plans. Understanding that these costs are accounted for within public and private capital budgets as shown above , the City agrees to share with Cranston the need for these funds in advance of project financing and consequently, agrees to share with Cranston the potential burden of these funds should the project not proceed beyond the effective term of tnis agreement. Accord- ingly, the City agrees to make available for this purpose from Com- munity Development Block Grant Funds up to $80, 000 to be repaid from the permanent project financing at such time as the project proceeds as planned_ 5 . The City agrees to undertake street improvements and the relocation Of utilities as required for the project, and will bear all costs associated with such activities . The City further agrees to extend to Cranston the right to review planned street i,i,orove:cents undertaken in connection with project development. 6 . The City agrees to expand to a total of as near as 500 s-paces as possible the larger parking lot (located south p ?? of the intersection of Croci:ett and Neches Streets) and to this parkin, lot t0 Cranston. Revenues and ry?: °::SeS -6- from the operation of this lot will be audited and revenues which exceed deferred losses will be divided 75 percent to the City and 25 percent to Cranston. The City will continue to operate and maintain the smaller parking lot in the project (located at the southeast corner of the intersection of Neches and Laurel Streets ) and will install parking peters in this lot. 7. The City agrees to cause application to the Department of Housing and Urban Development for Federal Urban Development Action Grant (U DAG ) project funding assistance -in an amount not less than $2 . 1 million and further agrees that said application will be r.rade not later than October 30 , 1 982. 8 . The City agrees that execution of the Development Agreei:ient by all parties hereto extends developer designation to Cranston for the effective term of this agreement. B. CCDC COMMITMENTS 1. CCDC, with the continuing services of ZHA, agrees to assist in the continuing predevelopment programming , and development packaging stages of the development process, and specifically agrees to carry out the following activities. 2. CCDC, jointly with Cranston, agrees to undertake best efforts to secure land options required for both the public and �e4-,2 Z36 t • -7- private sector improvements. CCDC will review options prepared by Cranston and will negotiate and hold the options throughout their effective periods. 3 . CCDC agrees to monitor the progress of Cranston's development of the plan during the effective term of this agreement and agrees to reimburse Cranston for required arch- itectural and engineering services and preleasing and obtaining permanent financing ( Section A. 4 ) on a monthly basis throughout the effective term of this agreement up to a naximum provided by Section A. 4 of this agreement. 4 . CCD' agrees to prepare and submit on behalf of the City appropriate application to the Department of Housing and Urban Development for Urban Development Action Grant (UDAG) funding assistance , and commit to submit said application on or before October 30 , 1982 . 5 . CCDC agrees to continue to seek, on behalf of the project, union and pension fund long-term financing for the private-sector components and agrees to assist Cranston in any appropriate manner to secure long-term financing from other sources , if necessary. 6 . CCDC agrees to initiate efforts to cevelop, jointly with Cranston, a work program and schedule describing specific participant activities to be carried out durir_g the effective terra of this Development Agreement. �-2 33 0 7 . CCDC agrees that execution of this Development Agree- ment by all parties hereto extends developer designation to Cranston for the effective term of this agreement and commits that during this effective period CCDC will negotiate exclusively with Cranston for development in the project area. C. CRANSTON COMMITMENTS 1. Cranston agrees to have prepared by properly licensed design professionals architectural and schematic designs, and other graphics and plans for the project in exchange for designation as the Managing General Partner and reimbursement during the effective terms of this agreement in accordance with Section A. 4. Cranston will establish the "limited partnership" subsequently in the course of project development. 2 . Cranston agrees , subject to obtaining acceptable financing, to design and construct the private-sector project components and agrees that the private-sector project plan and program includes the following items and estimated respective Costs : A. Property Acquisition for private- $ 1 Million sector project components B . Construction includes renovation $ 8 Million of existing buildings, new con- struction, including pedestrian plaza and ice rink and tenant improvements C. tees including architectural/ $ 1. 9 Million engineering fees/d4evelo-,7ent �� ��D fees and finance/insurance/ legal/accounting fees _9- D. Contingency $ 200, 004 Total Estimated Cost $ 11. 1 Million 3. Cranston agrees to cause to be designed public improvements as described in Section A-3. 4 . Cranston will utilize the services of Landmarks Design Associates, Inc. , and Navarro Corporation for project design and construction together with those local subcontractors which Cranston selects and, at its option, additional architects and engineers registered in the State of Texas. 5 . Cranston agrees to undertake best efforts to secure, with CCD;., lane options required for project develop.ent as described in Section E , item 2 of this agreement. 6 . Prior to the expiration of this agreement Cranston shall make its best efforts to secure interim financing as required for construction of private project components and to identify likely sources for long-term per,lanent financing . 7 . Cranston agrees that the union and pension funds are viable long-term funding sources for development of private sector project components and further agrees to work with the CCDC in pro-noting this pension fund relationship. 8 . Cranston agrees to, in a timely -canner, form a li;-iiited T-,artne ship to own and operate the project and agrees to participate in the venture as the general partner. /1- d-?-33 0 -10- 9 . Cranston agrees to provide appropriate documentation to support application to the Department of housing and Urban Development for Urban Development Action Grant (UDAG) funding assistance , and agrees to provide said documentation to CCDC in a timely manner to enable submission of the application no later than October 30 , 1982. D. JOINT COMMITMENT 1. It is the intent of all parties to this agreement to pursue committed development as proposed for the project in an expeditious manner and to successfully accomplish the actions and activities respectively specified within the effective term of this Agreement. 2 . It is mutually agreed between the parties hereto that Cranston will direct or oversee the marketing and promotional effort for the project and to explore the development of a joint promotional program with the civic center and the performing arts center. It is further agreed that a joint steering committee and a joint promotional fund will be established in order to ensure efficiency- in advertising and programming. The Committee will consist of one representative each from Cranston, the City and CCDC, and each of the three parties will contribute an agreed upon share toward the establish- ment and maintenance of the promotional fund. Policies and actions of the co,7umittee will be subject to agreement by all parties. V' -11- 3. This Development Agreement entered into on the date here first written above shall bind the parties until such time as it is super- seded by commitments between the City/CCDC and the newly formed limited partnership or until September 1, 1983, whichever comes first. 4 -. It is mutually agreed between the parties hereto that this Development Agreement nay be given such time extensions as may be needed to reasonably effectuate the purposes hereon where a delay is caused by unforeseen or other complications bevond the dominion and control of the parties hereto. The parties hereto shall not unreasonably withhold such extensions . IN WIT` ESS .�rHEREOF, the parties hereto have caused their hands and seals to be affixed the day and year above first written. THE CITY OF BEAUMONT, TEXAS By: Title . Date: CENTRAL CITY DEVELOPMENT CORP. By: Title_ Date : CRA�:STON DEVELOP:`ENT CORP. By. Title �� � () Date: —