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<br />(206) 849-6260 | 1700 7th Ave, Suite 2100, PMB 552, Seattle, WA 98101 | publicfaclitiesgroup.org <br /> A. Proposed Bond Financing. Under PFG’s proposed financing and delivery <br />method, financing for the Project would be anticipated to be from the proceeds of bonds similar to <br />63-20 bonds or from conduit bonds or other bonds (the “Bonds”), as determined by the City. <br />Subject to financial market conditions, the proposal anticipates that PFG would facilitate efforts <br />to finance construction, and possible property acquisition, of the Project through the issuance of <br />the Bonds. <br /> B. Proposed Lease Structure. Under PFG’s proposed financing and delivery <br />method, the City would purchase the real property upon which the Project will be constructed (the <br />“Site”) and ground lease the Site to PFG (the “Ground Lease”). PFG would then finance, develop, <br />construct, and maintain the Project on the Site. PFG would lease (the “Financing Lease”) the <br />completed Project to the City for use by the City and for subletting by the City to subtenants, <br />including, without limitation, the Everett Aquasox and USL teams. <br /> C. Proposed Developer. Under PFG’s proposed financing and delivery <br />method, PFG proposes to engage Wright Runstad & Company (the “Developer”) to oversee and <br />manage certain construction and development activities for the Project pursuant to a separate <br />development management agreement (the “Development Agreement”), which would be between <br />PFG and Developer, but would be subject to the City’s written approval, at its sole and absolute <br />discretion. <br /> D. Proposed Scope of Services. Under PFG’s proposed financing and <br />delivery method, the services provided by PFG would include: (a) negotiating the Development <br />Agreement with the Developer, (b) negotiating the contemplated Ground Lease and Financing <br />Lease with the City, (c) negotiating a proposed guaranteed-maximum-price design-build <br />agreement with Bayley Construction, the anticipated design-builder for the Project; (d) monitoring <br />the pre-development costs incurred by the Developer in conjunction with the City and its advisors; <br />(e) assisting with oversight of design professionals and preparation of plans for the Project; (f) <br />procuring and facilitating the financing of the Project through the issuance of the Bonds as set <br />forth in Section 2A; and (g) taking all such actions as may be reasonably required to advance the <br />Project. <br />E. Proposed PFG Fees <br /> 1 Proposed Bond Fee. Under PFG’s proposed financing and delivery <br />method, if the Bonds are issued, then, at closing, PFG would receive from the proceeds of the <br />Bonds a fee in the amount of one percent (1%) of the aggregate proceeds of the Bonds. <br />2 Proposed Asset Management Fee. Under PFG’s proposed <br />financing and delivery method, if and when the Financing Lease is executed, the City would pay <br />monthly to PFG an asset management fee as part of its rent obligation, throughout the term of the <br />Financing Lease. The monthly asset management fee would be calculated as one-twelfth of an <br />amount equal to one percent (1%) of total annual rent payments under the Financing Lease.