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. Deslred Outcome #6: Government FlexiblUty/Ec{ulty Value The County and Transtt D(strict have (nvested heavtly tn prepartng the North Block site. Stnce lea5e rates are predetermined to be market rate and not market rate plus cost recovey, the5e government ent(ties have an ec~ufty value in the North Block. Thts ec~uity value can e(ther be a benefit to a developer and future tenants of the butid(ng or the government entit(e5 can choose to benefit from thetr eauity tnvestment. There Is likely a future need for expanded offlce space for the County and Trans(t Dtstr(ct. If these government enttttes commft to a centraltzed space strategy, the North Block would be a destrable place to e~cpand. I'roce5s We have tdentifled four alternative courses of actton that are likely to brtng about the tdenttf(ed desired outcomes. Process #1: Competltlve 8Id for a 5ingle Buildfng The County and transit DlstricC w(II seek a developer through the normal IZFi' process. We bel(eve the goals of the bid proce5s 5hould be: 1. To produce a buflding fully occup(ed over the long term with compat(ble tenants and bus(ne5ses. 2. A financially sound project - produc(ng revenue for the County and Transit Dtstrtct, maktng a proftt for the developer, attracting successful businesses to the stte. enhancing opportunitfes for other bu5tnesses in 5alem, and provtdtng communtty enhancement fnclud(ng property tax revenues. 3. 7o ftnd a developer wtth tntegrtty and capab(I(ty. 4. to the extent allowed by law, gtve preference to local developers. Free market forces should drive what occurs on the North Block. We encourage ~etttng as few btd rec~utrementt as poss(ble. The most expensive real estate tn 5alem should not be 5een as a soctal engtneer(ng opportun(ty. F(nal dectstons mu5t be made by the developer in Itght of the market, within the reasonable parameters dtctated by the North Block's proximity to County and 7ranstt Distrtct factlitte5. Process ~#2: Multiple Bulldings Wh(le an (nd(vidual developer may find the r(sk for a s(ngie building too high, there may be more fntere5t in developtng a sect(on ofthe North Block building pad. Process #3: 5ubs/d(zed DevelopmerrC wfth a Building Resldual There may be a way to creattvely structure an arrangement that makes the North Block avatlable to a developer for 20-30 year5 and then returns the space for publtc use. 5uch a Approved Varalon 5.1- Page 4