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Third and Broadway development Project <br />July 5, 2096 <br />Page 2 <br />to reach out to all of the development firms who had submitted proposals and give them a second <br />chance to submit new proposals that would include a hotel components, even as a second phase <br />of the project on the site or on a nearby property. <br />Four of the original development firms resubmitted proposals. Caribou Industries included a <br />hotel component. Of those four firms, the three other firms maintained their position that the <br />hospitality market in Downtown Santa Ana did not sufficiently support financing and construction <br />of a new hotel and did not include a hotel component in their new proposals. <br />Subsequently, staff Identified the qualifying criteria for Caribou Industries to be selected as the <br />developer for the Third and Broadway sits. Part of the qualifying criteria were audited financial <br />statements, a common criterion that allows City staff to assess the developer's ability to complete <br />and deliver the proposed project on time and on budget. After several requests, staff has not <br />received the audited financial information required, <br />Proposed Draft Disposition and Development Agreement (D61A) Components: <br />If the City Council opts to enter into a DA with a qualified developer as drafted in the proposed <br />sample DDA, the scope of the Third and Broadway Project will be as follows, but not limited to: <br />1. Developer is to purchase the property at market value with the intention of <br />demolishing the existing parking garage and building a mixed use <br />residential /retail /office /hotel project. <br />2. The City shall impose a lien on the property for the market value purchase of said <br />property, Said lien shall be maintained for no less than 25 years. <br />3. The City shall release the lien after 25 years and upon the developer's <br />accomplishment of all performance requirements and terms of the loan as outlined in <br />the ®CA. <br />4. The developer shall be required to deposit a determined amount within five (5) days of <br />opening an escrow. <br />6. The transfer of the title of the property shall only take place after certain City of Santa <br />conditions have been met by the developer. <br />6. The developer shall obtain all necessary entitlements at their own expense prior to <br />transfer of property titles from the City to the developer. <br />7. The developer shall prepare a complete environmental document consistent with <br />California Environmental Quality Act (CEQA) for the proposed project, <br />13. A minimum three (3) -star hotel component, consisting of no fewer than 60 rooms is a <br />required component of the proposed project, The hotel may be built at the same time <br />as the rest of the projector In a subsequent phase, as described by the developer with <br />a justification for Its phasing and timing. Developer must submit documentation to <br />verify a commitment from a major hotel, development proforma for the hotel, and <br />signed labor agreements as required but the City in order to meet the hotel <br />component requirement for the project, <br />65A -2 <br />