CARIBOU INDUSTRIES-2018 - Laserfiche WebLink

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Estimated financing- debt services @4% @30 yrs. _ $749, 476/annually Estimated parking revenue per Diamond Parking study for the Developer proposal is a $2 million in Annual Gross Revenue and $288,000 for expenses. These estimates are subject to City verification. Developer's Responsibilities: Mixed Use Residential Developer shall fund the design of the project, all costs related to entitlements, and all development costs for the apartments, retail, office and hotel. The City will cooperate with the Developer to process entitlements. The Developer will fund the entitlement application, including, but not limited to, any and all required General Plan and/or zoning amendments, and all related studies required for CEQA compliance. Once the entitlement process is completed, the Developer has financing for the project, and obtained all necessary building pennits, as will be detailed in the terms of a DDA, the City will convey to Developer the land and parcels for the residential, office, and retail portions of the project. Conveyance shall occur following the Developer providing evidence of financing for construction, permanent loan(s) and equity and issuance of all necessary building pen -nits. Hotel: Developer will design and build the hotel to standards for a typical boutique hotel similar to a Hilton Garden Inn and will nse best efforts to execute an operating agreement with a Hotel Chain. If Developer is not successful in securing an agreement with a Hotel Chain operator, Developer will self -operate as a Boutique Hotel. During the first 5 years of operation, various economic thresholds would be established that would allow the Developer to convert the Hotel to residential as follow: • after 2 years if the Rev/Par* falls below $65 • after 3 years if the RevPAR falls below $75 • after 4 years if the RevPAR falls below $80 • after 5 years if the RevPAR falls below $85 *Revenue per available room (RevPAR) is a performance metric used in the hotel industry and is calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel's total room revenue by the total number of available rooms in the period being measured. If in the Hotel does not achieve these thresholds during the first 5 years, the Developer will be allowed to submit an application to convert the hotel to apartments, subject to approval through all applicable city entitlement processes required and in accordance with entitlements approved for the site. -5-