06/21/11 Work Session - Laserfiche WebLink

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HRA Work Session 5. 1. Meeting Date: 06/21/2011 By: Darren Lazan, Housing & Redevelopment Authority Title: Consider Letter of Intent - West 50 Retail (Portions may be closed to the public) Background: Since early 2010, the development team has been working with a number of medium and large retail developers on formulating a partnership to develop the +/- 50 acre retail area envisioned on the west side of the site (the "West 50 "). In 2010 we met a group out of Cleveland Ohio that has interest in the project and we have worked towards a framework agreement to partner with this group to develop the retail component of the project. Unlike the remainder of the site, the development most likely to occur on the West 50 would be 'build -to -suit' development. Typically retailers lease space from a developer who builds and owns the property and structures. In the current development structure, the HRA has contemplated 'build -to -suit' development for the VA and /or other uses, but it has clearly been as a last means to a development, and has generally been limited to public or quasi - public uses. The development team met again with the group from Ohio this year at the ICSC and discussed the project. In response to that meeting, this group has presented a letter of intent (LOI) outlining the terms under which they could proceed. This LOI addresses sale price and schedule, but should be considered an initial offer, and as such is not ready for detailed consideration. The development team would like to provide an overview of the concept of partnering on the West 50 portion of the project, and ask for input on responding to the LOI. We have had considerable discussions with a major retailer who would ultimately be in the project, so consideration should also be given to how that aspect of the project is addressed in any potential agreement with the retail developer. It is currently envisioned that the HRA would remain responsible for the overall development and continue to act as master developer of The COR, but that this developer would take the lead on negotiating the deals with prospective tenants, purchase the property on an agreed schedule, and build the retail spaces. Notification: Observations: Recommendation: The development team recommends the HRA consider the concept of partnering with a retail developer on the West 50 portion of the project, and provide direction as to continuing discussions with the proposed developer. Funding Source: Council Action: Provide consensus direction on proceeding with negotiations with the proposed developer for the West 50.