AGENDA #12
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Chris S. Berndt, Special Projects Assistant
SUBJECT: Proposed Budget for Downtown Economic Development Initiative
DATE: March 8, 2006
This memorandum reviews the next steps anticipated for the Downtown Economic Development Initiative, and suggests a proposed budget.
On October 24, 2005, the Town Council authorized a Memorandum of Understanding with Ram Development Company for undertaking a mixed-use development on the Lot 5 and Wallace Deck Sites. The Council is in negotiations with Ram Development Company to finalize a Development Agreement soon. Ram Development Company has submitted a Concept Plan to begin the Special Use Permit process and the Town’s review as regulator.
The current year’s Budget included $104,000 for costs related to planning and legal costs for the project. On November 9, 2005, the Council authorized an additional $30,000 for legal costs for negotiating the Development Agreement.
We anticipate that approximately $60,000 would be needed in Fiscal Year 2006-2007 for continued planning, coordination and legal costs related to the Downtown Economic Development Initiative. Responsibilities of the Town in the upcoming year would include:
Provide project coordination of the project through special use permit, final plan review, building permit issuance, and initiation of construction in 2007.
Implement Town responsibilities under the Development Agreement, including preparation of legal documents, review of financial structure and escrow accounts, undertaking all conditions precedent to closing, and review of closing documents.
Coordinate with the Developer on construction management plans related to impact of the project on downtown businesses and patrons.
Continue oversight of peer review process with Dean Marvin Malecha through detailed design phase.
Assist with planning for the second phase of the Downtown Initiative for Lot 2, including review of transit transfer center study.
Provide continued staffing to the Council’s Negotiating Team Committee.
Coordinate with Stainback Public/Private Real Estate (SPPRE), which would provide technical review services during construction during construction. SPPRE costs are anticipated to be paid by the developer from its construction budget for the project.
The focus of work on the project in Fiscal Year 2006-2007 will gradually shift from planning to construction oversight. At the same time, planning work would continue on Phase II of the Downtown Initiative related to potential development of Lot 2. This preliminary Budget proposal provides for costs related to continued planning, coordination, and construction management for the Downtown Economic Development Initiative.