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Disposition and Development Agreement for YMCA September 3, 2019 Page 3 A new partnership also being developed by OCSA for the YMCA site is a joint venture with GameChanger Charity and ZOTT, two technology -based companies that will leverage technology and innovation to offer curriculum and programming for OCSA students to become the next generation of creators and innovators. Caribou Pr000sal As part of the City's Strategic Plan Goal to "leverage private investment that results in tax base expansion and job creation", the proposal by Caribou to redevelop the YMCA to include boutique style hotel rooms would generate significant revenue in terms of hotel visitors tax and property taxes for the City. Caribou is proposing to convert the former YMCA facility into a boutique hotel and new grand salon lobby for a proposed Grand Plaza Hotel project on an adjacent parcel (Exhibit 3). This lobby will, serve as the check -in area for the Grand Plaza Hotel and will maintain the historical features of the old YMCA. The main floor will also include a Grand Ball Room and Exhibition Center for community events and conferences. This Exhibition Center will be able to accommodate up to 300 people and will be equipped with state of the art audio and visual equipment. Also included in the former YMCA facility will be a gym, basketball court, indoor pool and spa, bistro for hotel guests, art gallery for local artists, and 26 additional hotel suites on the 21d and 31d floor of the building. All of these uses will supplement the proposed 12-story, 142-suite new Grand Plaza Hotel project that would be developed on a 0.32-acre lot, also owned by Caribou Industries. Caribou has received initial interest from Cambria Hotels, a Choice Hotel International Chain to operate the hotel in both the YMCA and adjacent parcel. An additional component of Caribou's proposal is their commitment to improve the exterior appearance of the YMCA in the first 180 days of a Disposition and Development Agreement (DDA) if selected. Improvements will include painting the building, replacing the windows, architectural lighting, landscaping and securing the site. Recommendation Each proposal offers unique community and economic benefits to the City. But only one proposal will add hotel visitor and sales tax revenue, return the property to the property tax rolls, will beautify the YMCA exterior in the first 180 days, and create fiscalization of land use for this important City asset. Based on these assumptions, staff is recommending that City Council authorize the development of a DDA with Caribou Industries. A DDA is an agreement designed to achieve the development of the YMCA by the City and Developer in a coordinated and comprehensive manner. The Developer will undertake the development of the Site; subject to terms and conditions set forth in the DDA that will be negotiated by staff. Terms such as verification of the developer's financial ability to undertake the redevelopment of the site, commitment by a preferred hotel operator, development schedule milestones, and specific development obligations such as improving the 60A-3