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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 7, 2019 <br />TITLE: <br />APPROVE SECOND EXCLUSIVE <br />NEGOTIATION AGREEMENT WITH <br />CARIBOU INDUSTRIES FOR THE THIRD <br />STREET AND BROADWAY DEVELOPMENT <br />{STRATEGIC PLAN NO. 3,5A) <br />190-#:7:(•]361•11IRIli IF9X•]ki1Wiii <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 11' Reading <br />❑ Ordinance on 20d Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />CITY AN GER <br />RECOMMENDED ACTION <br />Authorize the City Manager and the Clerk of the Council to execute a second Exclusive <br />Negotiation Agreement with Caribou Industries for a one-year period from May 6, 2019 to May 6, <br />2020 for the Third and Broadway development, subject to non -substantive changes approved by <br />the City Manager and City Attorney. <br />DISCUSSION <br />On September 16, 2014, the City Council directed the Planning and Building Agency (PBA) to <br />release a Request for Qualifications (RFQ) for the Third and Broadway Development Project. The <br />RFQ outlined several project components desired by the City Council. Among the components of <br />the new project was a desire to include a hotel/hospitality component. Five proposals were <br />received and only the Caribou Industries Inc. proposal included a hotel. <br />On March 21, 2017, the City Council authorized the City Manager and Clerk of the Council to <br />enter into an Exclusive Negotiation Agreement (ENA) with Caribou Industries for the Third and <br />Broadway project. To assist with the negotiations, the City entered into a contract with consultant <br />Lisa Stipkovich to lead negotiations for the City and identify transaction business terms. A first <br />amendment to the agreement extending the ENA period was entered into on July 5, 2017. <br />On January 16, 2018, the City Council approved a second amended and restated ENA and <br />reimbursement agreement with Caribou to pay for the services of Lisa Stipkovich and Kosmont <br />Company, the firm hired to evaluate the financial feasibility of the project. The term of the <br />restated ENA allowed for three 90 -day administrative extensions which expired on April 28, 2019. <br />Staff is recommending a second ENA (Exhibit 1) to extend the term to allow for an additional 1 - <br />year period to complete all technical studies required for the CEQA analysis and land use <br />entitlements. It is anticipated that the technical studies will be completed by Fall 2019. <br />25C-1 <br />