Special Project Oversight Committee (SPOC) Report #1

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INTERIM AGREEMENT FOR GENERAL CONTRACTOR CONSULTATION SERVICES Agreement made, effective as of September 29. 1997 by and between Marion County, a political subdivision and body politic of the state of Oregon, and the Salem Area Mass Transit District, a political subdivision and body politic of the state of Oregon, hereinafter referred to as "Owner", and Pence/Kelly Construction, Inc., an Oregon corporation, hereinafter referred to as "Contractor". The parties recite, declare and agree as follows: 1. Owner owns Block 5, SALEM, Marion County, Oregoa Owner intends to build a mixed use facility on the real property generally consisting of undergound parkina facilities, a transit center, administrative offices for Owner, and a commercial retail site to be leased to private parties for development of retail and other private facilities. The project is known as Courthouse Square. 2. The project is undergoing substantial redesign. Owner needs consultation services of a general contractor. Contractor has provided similar services for the original design of the project, and wishes to continue in a consultative role. Owner wishes to retain the consulting services of Contractor. ~; 3. Owner and Contractor acknowledge and agree that for services rendered through May 31, 1997, Ovvner has paid Contractor the sum of $ 67,687.13', which amount is payment in full for services rendered to that date. The parties have no further commitment to each other, except as sEt forth in this agreement. 4. Both parties expect to negotiate an agreement retaining Contractor to act as general contractor for construction of the project. Both parties shall negotiate, in good faith with the Contra.ctor, the terms of a construction contract by November 15, 1997. Both parties expect construction to begin on or about January 1, 1998, and to be completed within 18 months of the authorization to start. Both parties expect the GMP to be submitted to Owner by ~ecember 12, 1997. The GMP shall contain a fee of 4.75%, including preconstruction fees. Contractor understands that Owner has retained a project management company (Melvin Mark Development Co., MNIDC) to independently review cost estimates and GMP. Contractor understands that Owner is under no obligation to sign final construction agreements with Contractor unless the parties can reach mutual agreement on the terms of such agreements, including an acceptable GNIP within the budget and financing capabilities of Owner as determined by Owner. a. The parties agree that all of the amounts paid or payable to Contractor for services rendered on and after June l, 1997 are subject to the following: