2011/08/03 Council Agenda Packet

EVERETT CITY COUNCIL AGENDA ITEM COVER-SHEET PROJECT TITLE: Amendment No. 8 to Property 8-3-11 Briefing COUNCIL BILL# 2 Purchase Agreement with Proposed Action Originating Department Facilities Touchstone Corporation for the Consent Contact Person Mike Palacios Purchase and Redevelopment 8-10-11 Action Phone Number 425-257-8938 of the Allen Buick Property First Reading FOR AGENDA OF 8-3-11 extending the Project Second Reading Approvals Period for 180 days. Third Reading Initialed by: Public Hearing Department Head CAA .!._ Council President A Location Preceding Action Attachments Department(s)Approval Allen Buick Property, 10/15/08 Resolution and Property Amendment Legal SE Corner of Colby Ave Purchase Agreement Approval,4/8/09 No.8 and Wall Street Amend.No. 1, 10/7/09 Amend.No.2, Facilities/Property 2/10/10 Amend.No.3,6/16/10 Amend. Management No.4, 8/11/10 Amend.No.5, 11/10/10 Amend.No.6, 12/29/10 Amend.No.7 Amount Budgeted -0- Expenditure Required -0- Account Number(s): Budget Remaining -0- Additional Required -0- DETAILED SUMMARY STATEMENT: On October 15,2008, City Council adopted Resolution No. 6068 declaring surplus the City-owned real property commonly known as the Allen-Buick Property and authorized the Mayor to execute the Property Purchase Agreement with Touchstone Corporation for the sale and redevelopment of the property. On April 14,2009,the City and Touchstone executed Amendment No. 1 to the Agreement extending the feasibility period to October 16, 2009.Amendment No.2 was approved on October 7,2009, extending the feasibility period to February 16,2010. Amendment No.3 was approved on February 10,2010, extending the feasibility period to June 16, 2010. Amendment No.4 was approved on June 16,2010,extending the feasibility period to August 16,2010. On August 16, 2010,Amendment No. 5 to the Agreement was approved, amending certain terms of the Agreement including the approval of the schematic plans for the hotel project. On November 10,2010,Amendment No. 6 was approved extending the period to complete the exterior design of the hotel project to January 16,2011.Amendment No. 7 was approved on December 29, 2010,approving the exterior elevation design of the hotel building and completing the Project Design Criteria for the proposed hotel providing for Touchstone to submit and obtain construction permit approvals by August 16,2010,the Project Approvals Period and triggering the closing and transfer of the property 30-days thereafter. Detailed plans have been reviewed for building permit approvals;however Touchstone is exploring the use of New Market Tax Credits(NMTC)as part of the project financing.Amendment No. 8 would extend the Project Approvals Period for 180-days to February 16, 2012, allowing Touchstone sufficient time to explore the availability of NMTC funding for the project. RECOMMENDATION (Exact action requested of Council): Authorize the Mayor to sign Amendment No. 8 to the Property Purchase Agreement with Touchstone Corporation for the Purchase and Redevelopment of the Allen Buick Property extnding the Project Approvals Period for 180 days.