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<br />. <br /> <br />. <br /> <br />.. <br /> <br />The Project Manager introduced Mr. Allan Lynch from Schurgin <br />Development Corporation and asked that he give an overview and <br />slide presentation of the project. <br /> <br />Mr. Lynch thanked the Vice Chairman and Agency Members for the <br />opportunity make a presentation on the proposed development for <br />the Harbor Drive-In site. He pointed out that Schurgin <br />Development Corporation was a private developer who had been <br />responsible for the development of 55 shopping centers <br />throughout the United States since 1944. He added that <br />Schurgin retained the ownership of these shopping centers and <br />had great pride of ownership in all of their developments. He <br />stated that Schurgin worked with tenants who were promotional <br />and generated high sales volumes on a national basis. He <br />pointed out that these tenants often participated in more than <br />one development. He added that Schurgin provided quality of <br />construction and attention to detail in all of their <br />developments. He then made a slide presentation showing <br />several Schurgin developments which are similar to the one <br />being proposed for the Harbor Drive-In site. Mr. Lynch stated <br />that Schurgin expected the proposed development to generate <br />approximately $600,000 sales tax revenue to the city in the <br />first year and reach the $1 million mark in ten years. Mr. <br />Lynch then thanked the Agency's staff, namely, Patti Nunn, <br />David Ream, Edward Cooper and his staff, and the Agency's <br />consultant, Richard Botti, for their cooperation. <br /> <br />The Project Manager, Mrs. Patti Nunn, addressed the Agency and <br />stated that Schurgin was paying fair market value for the site <br />and was advancing the funds to the Agency for its purchase. <br />She added that the Agency will participate in the project as an <br />equity partner and will receive 10% of the net cash flow with <br />no preferred return to the developer, beginning in the fourth <br />year of operations and continuing for ten years. She pointed <br />out that the Agency will enter into negotiations with the owner <br />of the Harbor Drive-In site and its long-term lessee, adding <br />that the Agency may have to pass a Resolution of Necessity to <br />acquire the property if negotiations are not successful. She <br />stated that the construction of a storm drain that will service <br />the site and the Harbor Boulevard area is an integral part of <br />the Schurgin development, adding that of the estimated cost of <br />$900,000, Schurgin is required to pay $225,000. She stated <br />that staff was proposing to finance the additional costs <br />through the formation of an assessments district and, in order <br />to structure the financing, issue the bonds, and construct the <br />improvements within the necessary time frames, staff is <br />recommending that the City Council approve entering into <br />contracts for bond counsel and underwriting services. She <br />stated that this would be considered to be a small bond issue <br />and that F. MacKenzie Brown, bond counsel, and Miller & <br />Schroeder Financial, underwriter, were being recommended by <br />staff since they not only had this particular expertise but had <br />also worked successfully with the city on prior issues. <br /> <br />4. <br /> <br />I, <br />