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Caribou Industries Agreements34Fiscal Impact Term End Information & OptionsYMCA City transferred property to Caribou to develop a hotel. There is no further assistance or ongoing costs associated with the property.N/A If Caribou defaults on the agreement and does not perform by January 2027, the City’s sole remedy is a one-time payment of $166,221 from Caribou. The City would need to send a “notice of default” and provide a period to cure the default.Third & Broadway City agreed to loan Caribou up to $13 million (based on actual costs) for demo, site prep, and construction of public parking spaces and private street reconnecting Sycamore. Loan accrues interest at LAIF rate (CA investment pool), to be repaid over 30 years.City transferred property valued at $3 million to Caribou to develop a mixed use project including a boutique hotel and housing. Caribou has had issues getting service from SCE, as new electrical infrastructure is necessary and SCE will not build it before having load requirements from everyone using the local infrastructure (Caribou’s neighbors).Options: If Caribou defaults, then City can recover the property. If Caribou sells the land, City shares in net profits based on a formula where Developer first recovers costs and a guaranteed 15% profit.