05 EXCLUSIVE NEGOTIATING AGMT 2012-11-19

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Exclusive Negotiating Agreement and Keyser Marston Amendment November 19, 2012 Page 4 Agreement". Updates are being recommended due to the dissolution of redevelopment, and with respect to such items as planning efforts completed or underway, status of County involvement, and property ownership (former Agency parcel now owned by the Housing Authority), with the developer still responsible for funding the SARTC area master planning effort, at a minimum level of $35,000 in third party costs for the City properties and an additional $65,000 for the larger site, should that transpire. Additionally, the developer has agreed to the removal of a liquidated damages clause that was in the original agreement, which could have resulted in the City being responsible for reimbursement for those third party costs in an amount up to $100,000. The Agreement calls for completion of the Master Plan within 18 months, however, asix-month extension may be granted by mutual agreement if substantial progress is being made on the Master Plan and more time is needed to complete it. Additionally, if the County Parcels are ultimately incorporated, up to two additional six-month extensions can be granted in the same manner. The approval t0 extend is also conditioned upon Developer providing the City and Authority with an updated schedule, which is subject to the approval of the City Manager and Executive Director of the Authority. Additionally, upon completion and approval of the Master Plan by the governing bodies of the City and Authority, the parties would have a year for greater if mutually agreed upon) to negotiate towards agreements}for disposition and/or development. It is recommended that Keyser Marston Associates (KMA) be hired to provide the necessary financial consulting services on an as-needed basis to assist in creating a financial and operational framework under which the City will pursue the development of the City Site, and potentially a larger site in conjunction with the County property. KMA, which has the requisite specialized skills and expertise, will be evaluating the master plan proposals and assisting the City in defining and analyzing the public revenues sources that may be generated by the proposed development, while balancing the City's goal to maximize the return on public investment with the City's transit goals and objectives. The City recently entered into an agreement with KMA dated October 1, 2012 in an amount not to exceed $25,000 with regard to two City-owned properties in the Downtown/Civic Center area, therefore an amendment to that agreement is now being recommended. with the Fixed Guideway project, which interconnects with the SARTC site, primed for funding, it is an opportune time for a more comprehensive master planning and development effort to proceed per the new agreement, including an analysis of the market and financial feasibility of development options. Once the County is in a position to be involved on a more formal basis, its property can be incorporated as applicable. ENVIR®NMENTAL COMPLIANCE Developer negotiations and preparation of a conceptual master plan do not constitute a project under CEQA guidelines. Additionally, the above-described action of the City Council was evaluated under the California Environmental Quality Act (CEQA) as part of Environmental Impact Report (EIR} No. 2006-02, adopted by the City Council on June 7, 2010.