HomeMy WebLinkAbout20A - AA THIRD & BROADWAY CONSULTANTREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 21, 2018
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APPROVE AN AMENDMENT TO
AGREEMENT WITH ELISA STIPKOVICH FOR
CONSULTANT SERVICES RELATED TO
THIRD AND BROADWAY PROJECT AND AN
APPROPRIATION ADJUSTMENT
(STRATEGIC PLAN NO. 3, 5A)
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CITY NAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and the Clerk of the Council to execute an amendment to the
agreement with Elisa Stipkovich for consultant services related to the Third and Broadway
development project to increase the compensation by an additional $25,000 for a total
contract amount not to exceed $50,000, subject to non -substantive changes approved by
the City Manager and City Attorney.
2. Approve an appropriation adjustment recognizing $53,561.37 in Miscellaneous Revenue
Expense Reimbursement account (no. 01102002-57000) and appropriate the same amount
to the Community Development Agency's Economic Development Contract Services
expenditure account (no. 01118810-62300) for the reimbursement agreement with Caribou
Industries.
DISCUSSION
Consultant Elisa Stipkovich has been lead negotiator for processing deal points for the Third and
Broadway Project. The project is moving forward with applications expected shortly. The City is
in need of expending more funds on the Consultant to be reimbursed by the developer. This
report appropriates the funds into the proper accounts for expenditure.
On March 21, 2017, the City Council authorized the City Manager and Clerk of the Council to
enter into an Exclusive Negotiation Agreement (ENA) with Caribou Industries for the Third and
Broadway project. To assist with the negotiations, the City entered into a contract with consultant
Elisa Stipkovich to lead negotiations for the City and identify transaction business terms.
On January 16, 2018, the City Council approved a restated Exclusive Negotiation Agreement and
an amended reimbursement agreement with Caribou Industries, which extended the negotiation
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Agreement with Elisa Stipkovich
August 21, 2018
Page 2
period of the project and identified specific business transaction terms between the City and
Caribou Industries to move forward with the development of the Third and Broadway parking
garage. City Council also approved an appropriation adjustment to recognize the potential
$100,000 in reimbursement from Caribou Industries for the City's expenses related to the
services provided by Elisa Stipkovich and Kosmont Companies. Of that total, $46,438.63 was
expended for the project and a balance of $53,561.37 remains at the end of FY 2017-18.
The next step in the process will be to prepare and present a Disposition and Development
Agreement (DDA) with more detailed business terms to City Council for consideration. The DDA
will further describe the terms of the transaction, including a schedule of completion with
milestones for the developer to achieve. The City will not convey the site until the developer has
met all the obligations defined in the DDA, obtained all approved permits and entitlements, and
provided proof of financing for the project.
In order to develop the Disposition and Development Agreement and finalize all business terms
between the City and Caribou Industries, staff is recommending amending the scope of work with
Elisa Stipkovich for these services. The consultant's new scope of work is attached as Exhibit 1
to the amendment to the agreement.
This contract amount has been included under the reimbursement agreement entered with
Caribou Industries to cover costs associated with the negotiation and execution of the ENA and
DDA.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #3 (Economic Development), Objective #5
(Leverage private investment that results in tax base expansion and job creation citywide),
Strategy A (Identify and market underutilized properties for new development that will create new
jobs and expand the City's tax base).
FISCAL IMPACT
Approval of the appropriation adjustment will recognize $53,561.37 in the Miscellaneous
Revenue Expense Reimbursement account (no. 01102002-57000) and appropriate the same
amount to the Community Development Agency's Economic Development Contract Services
expenditure account (no. 01118810-62300) in the FY 2018-19 budget. Thereafter, funds will be
available in the Economic Development, Contract Services account (no. 01118810-62300) for the
amendment to the agreement with Elisa Stipkovich.
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Steven A. Mendoza
Executive Director
Community Development Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Sergio Vidal Co
Assistant Director
Finance and Management Services Agency
Exhibit: 1. Amendment to Agreement with Elisa Stipkovich including new scope of work
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