Development Team Meeting Notes (96-99)

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~ which is the same way that other tenants were treated. In treating the county e same as other tenants on the block, it would a11ow county to access transit's money. Dan stated~that the concept is good but what if the FTA says it can't work? ~, Dan said that he wants three models to show the FTA. Ben expressed co cern about the environmental issues. RG said that under federallaw it reverts to the former own r. Gordon and Ben both said that this concept is not bullet proof. Ben said that this is a whol other issue to address. Dan stated that the only number that changes, when you change the mode , is the value of the land, whether it be 2mi1 or 6mi1. ~ Dan explained that the third concept will be leasing of the land. He will use the 5 yeaz economic life of the building instead of the standazd 99 yeaz lease and will capture the value f the air space to prepay the lease. RG said that he views tlus as the weakest concept. The FT will see this as leaving money on the table. Dan stated that the only way he can assess the prope is on the value of the ground lease. Ben responded that in looking at the project from the FTA's p' t of view, the district and the county are going to jointly buy this property/building, demolish th building, then build this facility at the present market value. This should be the first approach. ' Gordon asked if the rent from all the private space would go to the county. Because , transit and the county would own the land, private will lease back a portion of the land. Mike sked how this would work in terms of issuing the COP's. Ben responded that it would be an as '~nment of the leaser's rights. The developer builds his own space. Ben asked if Randy had si ed the more ~ recent inter-governmental agreement. Pat asked for copies of the ageements tha are already in place. , Dan summarized that he will run the model of transit and county owning the pro erty, with the second model, leaving out the third model. Transit will own the land they will be b ilding on, and pay for their space, and the common area will be paid for jointly. There was further discussion for clarification. Dan still needs to establish how much of the overall project transit o s, by looking at how much each owner is going to own in his cube. Dan clarified that we have a$6, 00,000 value of land, with 115,000 sf per level, x 5, based on the over occupancy of the space d the value of the land. He will have to say that the county really didn't get the value for their money. Dan explained that with the potential to expand to more floors, it is limited with the rights. Dan addressed tlus by saying that Ben asked them to look at it as just a deal between e county and transit. The county will calculate the value of their floor space, with the conceptu approach of putting a value on what transit is buying from the county, knowing that the coun y could have different use for the space. Randy asked if this is just a design, since it really doesn't give them the specifics of what percentage each player is going to occupy. Ra.ndy said that we nee to approach the FTA with a model that they will buy into. If we can walk away knowing they ha e bought the model, this is the go ahead for us to go back and fill in a11 the numbers and fit them to a budget. RG said that if they buy into a model, then we want them to release some money ' ediately and the authority to spend money to start paying for azchitecture, engineering and legal e penses. Ben questioned how many of those expenses are transits and how many aze county. P said that he wants to see a signed gant. RG explained that we also have a letter stating that we cannot spend ~ any money until we get a model approved, which does not allow us to borrow mon y from other sources on the potential monies to be received from the grant. Randy said that Da~ may have to