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Third and Broadway Proposed Development Update and Council Ad Hoc Committee <br />Recommendation <br />February 21, 2017 <br />Page 2 <br />As a first step in a major development project involving City -owned property, a city often enters <br />into an Exclusive Negotiating Agreement (ENA). An ENA proposes a process whereby a city and <br />a developer negotiate diligently and in good faith towards the goal of producing a mutually <br />acceptable Disposition and Development Agreement ("DIDA"). An ENA will include, among other <br />terms, at least all of the following: <br />• Schedule of Performance <br />• Development Concept <br />• Term <br />• Parameters for Negotiations <br />• Developer's Submission of Documents for City Review and Comment <br />Staff also recommended to the Council Ad Hoc Committee that the City ask Caribou for a <br />reimbursement agreement as the pursuit of complex development deals require significant staff <br />time, economic analysis, environmental analysis and legal expertise. The proposed ENA will <br />include a requirement that Caribou post a monetary deposit with the City and replenish the <br />deposit as funds are expended in pursuit of reaching a final DDA. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, <br />Objective #5 (Leverage private investment that results in tax base expansion and job creation <br />citywide), Strategy A (identify and market underutilized properties for new development that will <br />create new jobs and expand the City's tax base). <br />FISCAL IMPACT <br />There is no immediate fiscal impact to the City in entering into an Exclusive Negotiation and <br />Reimbursement Agreement. The reimbursement component of the proposed agreement will <br />require the developer to post a deposit with the City to cover legal, consultant and planning costs <br />associated with the continued research, negotiation and due diligence required to develop a <br />Disposition and Development Agreement. <br />Exhibits: 1. Request for Qualifications RFCA dated 8/5/13 <br />2. Request for Qualifications RFCA dated 9/16/14 <br />3. Request for Qualifications RFCA dated 7/15/16 <br />4. Resolution draft <br />65D-2 <br />