Laserfiche WebLink
. , 1J,/17/97 11:U5 $503 588 5495 HUAIAN K~SUUKC~S 1~004 <br />' ~ , <br />' <br />t ~ <br />~ <br />~ <br />~ <br />~ <br />~ <br />~ <br />~ <br />i_ I <br />have applied for additiona13.7 million in a federal grant The biggest piece of that is to do the demolition <br />and site preparation on the block. That wiil substantially reduce the private developers cost in the project <br />We think (Randy and RG) that even without the federal grant, the project probably is feasible, probably , <br />borderline. But with the federal grant this project is a go. In addition, we are hoping to obtain 1 to 2 <br />million for the ciry in urban renewal money. The city has given tentative support for that. That is really <br />another partnerslup. There are really five parties who have financial interest and commitment. <br />Randy continued by stating that next week we are really just selecting that final partner. Selecting that <br />partner in no way guarantees this project will work Right now the County owns its buildings. C~rrent rate <br />of rent on County buildings is $.85 a foo~ Market rate is $1.20 -$1.40. It is critical that we work with the <br />developer to get the cost down. If the project raquires that the County pay the market rate, it will not work. <br />If it's an extravagant building, the County will not be able to afford it He has projected to the County budget <br />officer that this project will cost an additional $250, 000 - 5300,000 annually in new money, starting in 1999, <br />just to afford the new space. T1~at means we ~ave to start looking three years ahead and the County budget <br />committee nceds to decida if we can make that commitment These are some of the things that we wanted <br />the panel to be aware of. <br />Bob Speclanan asked Randy if in a partnership, the County will always own the Iand, but the building will <br />be owned by the deveioper, and the County lease fees will be just on their building space. <br />RG responded that Transit will own their space outrigh~ <br />Randy responded that there is value in the land lease that is a credit back to the County and the developer <br />ends up owning the retail space: The land always stays in public ownership. <br />.,~ RG clarified that it may or may not be the County, it may be a combination of Transit and the County. The <br />square footage that is private use will pay taxes, from day one, even the portion that will eventually be the <br />County's. <br />~ Bob suggested that this is another way to buy down the square footage cost. <br />Randy added that even if the land and the entire building was in private ownership, as with the City of <br />' Salem, any portion of the public buildings, including the pazldng structure, as long as you are leasing it for <br />profit, it is on the tax roles. It is primarily the use of the property deterinines. <br />~ Dick question that a$.80 a square foot, is this building going to have a roof? <br />Randy responded that he doesn't expect to get it at $.80 a square foot. <br />~ There was discussion of proposals, the preliminary esrimates of where we could run into problems. Randy <br />pointed out that the Prudential proposal provided more deta.ils and options. David Glennie stated that he <br />~ did not see where they provided for ownership. <br />~ Randy expressed his understanding that tl~ere would be lease back,.as the project is better defined. Based <br />on the phone calls he has been receiving, without knowing who the parties are representing, it souads like <br />there would be at least partial ownezship. These are some of the issues that should be raised dunng the <br />~ selectiori process and should be part of the agreement <br />" Raady Franke added, in regards to the cost of space, the panel should keep in mind that for the County it <br />~ is not an evaluation of what we are currently paying. The Board is required to provide adequate room for <br />