pages: CityCouncil/2017-01-17.pdf, 6
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CityCouncil | 2017-01-17 | 6 | Mayor Spencer inquired whether APP is in default for the December deadline, to which the Assistant City Attorney responded in the negative; stated the City has been working with APP to bring the item before the Council; staff caused a scheduling delay and APP has not been issued a default notice. Mayor Spencer inquired what will change in the next few months versus the last 18 months. The Base Reuse Director responded the infrastructure that needs to occur makes the project complex; stated 18 months is an aggressive timeline to incentivize performance; APP has worked very hard, is continuing to work very hard and there has been no lagging; the reality is it is a complicated project; they have shown progress and commitment without taking any breaks; it is reasonable and no surprise there is a four month delay; the delay does not change any of the actual completion dates. In response to Mayor Spencer's inquiry regarding Block 9, Bruce Dorfman, TCR, stated that UDR is going to map the site as condos for future exit strategies; UDR's business plan is to rent; the long term plan is to sell an asset, which could then be converted to condominiums. Councilmember Ezzy Ashcraft inquired whether staff felt they have had good communication with the developer in the past 18 months, to which the Base Reuse Director responded in the affirmative; stated there has been significant interaction with the developer and weekly meetings; communication is an open book; staff will meet with UDR to review their financials; there is constant, ongoing communications and a real long term partnership perspective. In response to Councilmember Ezzy Ashcraft's inquiry, the Base Reuse Director stated Council is being asked to approve an extension of the outside closing date to April 11, 2017; the extension does not change any of the major milestone dates. Councilmember Oddie inquired what else is necessary for UDR to meet the expected commitments. The Base Reuse Director responded other property due diligence items need to be sorted through final investigations on the open petroleum site; covenants from Water Board; and continuing to work through other conditions to close. Councilmember Oddie inquired whether more financing needs to be obtained, to which the Base Reuse Director responded anything not done in time would be committed through TCR in a commitment letter; stated it was contemplated in the DDA that the managing partner could provide a commitment letter to help finalize the financing commitments. Councilmember Oddie inquired whether UDR would have an opportunity to cure if they were in default. The Base Reuse Director responded in the affirmative; stated the cure period starts at 30 days and ends at 120 days, depending on the type and extent of cure. Regular Meeting Alameda City Council January 17, 2017 | CityCouncil/2017-01-17.pdf |