08/20/1985 - Laserfiche WebLink

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. . , permits. In response to questions from Mr. Young, the Deputy City Manager/Development Services stated that the Disposition and Development Agreement contained a "Right of Reverter" which would permit the Agency to take the land back and all improvements thereon if the Carley Group should defsult. He added that in his 20 years of experience in the redevelopment field, he had never been involved in such an action. In response to further questions from Mr. Young, the City Attorney stated that the land will not be transferred free and clear because the Agency retains the ability to recover the land if the Carley Group does not perform. Mr. Hart commented that, if Carley were to default prior to completion, the financing institution would probably step in and complete the project. The Deputy City Manager/Development Services agreed with this premise, adding that $20 to $40 million could be expended very quickly on a project of this magnitude. Mr. Acosta stated that he was uncomfortable regarding the proposed Carley development in the face of pending litigation on the A-2 site. The Executive Director/Economic Development stated that the land will not be conveyed until all litigations are cleared. In response to a further question from Mr. Acosta regarding the proposed IS-year lease between the City and the developer for the leasing of 72,000 square feet of office space, the Deputy City Manager/Development Services stated that this space would be used to house normal City operations. He pointed out that the City has leased approximately 40,000 square feet of downtown office space on Fourth Street. He added that both the Police Department and the Fire Department have been overcrowded for quite some time. He stated that one option would be to move part of the Police Department to City hall via the connection on the second floor. In response to further questions from Mr. Acosta, the Executive Director/Economic Development stated that the parking spaces in the proposed parking structure would cost approximately $7,000 each. In response to questions from Mr. Hart regarding the $2.00 per square foot lease figure, the Executive Director/Economic Development stated that, based on the historic rent growth in the area, this figure will be below market by the time the construction of the building is completed, adding that space of this caliber is now leasing for $1.75 to $1.85 per square foot. In response to further questions from Mr. Hart, the Deputy City Manager/Development Services stated that a redevelopment project -8-