2007/09/25 Council Agenda Packet

• • EVEMTtT ITYY�®, CILa Ax I a%w alk' PROJECT TITLE: First Amendment to Agreement to Consent COUNCIL BILL# Negotiate Exclusively between City X Action Originating Departmen Admin/Legal of Everett and Artspace Projects,Inc. First Reading Contact Person K. Shaw/S.Kim Second Reading Phone Number x 7103/x 8669 Third Reading FOR AGENDA OF Sept. 26, 2007 Public Hearing Initialed by: Department Head CAA Council President 144 Location Preceding Action Attachments Department(s)Approval . 10/4/2006-authorization for First Amendment to Legal,Administration Mayor to sign Agreement to Agreement to Negotiate Negotiate Exclusively; Exclusively 9/19/07 real estate committee Amount Budgeted. N/A Expenditure Required N/A Account Number(s): Budget Remaining N/A L Additional Required N/A DETAILED SUMMARY.STATEMENT: On October 4, 2006, the City Council authorized the Mayor to negotiate exclusively with Artspace Projects,, Inc. in furtherance of the objectives of the City for redevelopment of City-owned property located at 2919 Hoyt Ave. (the "Site"). The City and Artspace are both interested in the development of an Everett Regional Arts Center that would include 40 residential units for artists' live-work housing affordable to low and very low income households. On October 10, 2006, the City and Artspace entered into an Agreement to Negotiate Exclusively for a period of one year that expires on October 10, 2007. The 2006 Agreement states that if Artspace hasnot signed a long-term ground lease agreement for the Site by October 10, 2007, the Agreement automatically expires — unless both the City and Artspace agree to an extension. The 2006 Agreement established the parties' respective responsibilities during the exclusive negotiating period. Since entering into the 2006 Agreement, Artspace has been diligently pursuing necessary financing for the development and construction of its project at the Site, conducting due diligence investigation of the Site and keeping the City informed of progress in fulfilling Artspace's responsibilities. The City and Artspace have both acted in good faith during the exclusive negotiating period, but both parties need additional time to negotiate a ground lease. The attached proposed First Amendment to Negotiate Exclusively would extend the negotiating period by one year so that the Amended Negotiating Period expires one year from the date of execution of the Amendment. r RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to sign the First Amendment to Agreement to Negotiate Exclusively between the City of Everett and Artspace Projects, Inc. 8 8