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Exclusive Negotiations for YMCA <br />March 18, 2014 <br />Page 3 <br />in partnership with many Santa Ana organizations that are instrumental in helping Santa <br />Ana residents. <br />2. The St. Joseph/Taller San Jose team will provide a much needed fitness <br />center /community venue for the underserved population living near the downtown as well <br />multiple wellness programs for surrounding employers. This is consistent with Santa <br />Ana's proposed 5 -Year Strategic Plan, which includes numerous strategies addressing <br />community health and wellness, as well as the need for recreational opportunities and <br />youth development. <br />3. The St Joseph /Taller San Jose team proposal to share operating revenues and expenses <br />lends strength to their financial proposal, and helps ensure that they share in each other's <br />strengths while assisting each other to balance any organizational weaknesses. <br />4. The St. Joseph /Taller San Jose team is proposing to complete the development within a <br />three -year timeframe, which is two years shorter than the one proposed by Caribou <br />Industries. While the proposed timeline includes aggressive fundraising, the fact that the <br />proposers would be the users of the building is definitely more secure venture than a <br />conceptual hotel development. <br />Based on both their written proposal and subsequent interviews, the selection committee <br />recommends that the City Council authorize the City Manager to negotiate an Exclusive Right to <br />Negotiate Agreement with the St. Joseph Health Care /Taller San Jose team. As part of this <br />negotiation, it is anticipated that a separate Reimbursement Agreement (Exhibit 2) will be <br />negotiated to address project related and legal expenses incurred by the City to advance the <br />project. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Scott Kutner <br />District Manager <br />Community Development Agency <br />SK/MU -GL /kg <br />Exhibit: 1. RFQ Summaries and Project Financials <br />2. Reimbursement Agreement <br />25J -3 <br />