to: Roger L. Stancil, Town Manager
from: Bruce Heflin, Assistant Town Manager
Ralph Karpinos, Town Attorney
subject: Information Report on the Development Agreement Timetable for Lot 5 (140 West)
date: March 23, 2009
The purpose of this report is to provide the Council with a summary of the target dates in the Development Agreement for Lot 5 (140 West) and in the Special Use Permit for the project. We review the current status in meeting those dates.
On February 12, 2007, the Town Council authorized the Manager to enter into a Development Agreement with Ram Development Company for construction of 140 West on the Lot 5 site at the corner of West Franklin, Church and West Rosemary Streets. Subsequently there have been three amendments to the Development Agreement.
The Development Agreement and amendments may be found online at:
http://townhall.townofchapelhill.org/projects/dedi/documents/agreement/
On January 12, 2009, a Council member requested a report on the timetable in the Development Agreement, and the status of meeting those dates.
Preconstruction Work in the Development Agreement
Section 2.3 (i) of the Development Agreement (p. 14) sets out dates by which the Developer agrees to “use commercially reasonable efforts to complete all Pre-Construction Work.” The following table lists these dates and the actions to be completed. We have indicated the current status in italics with each action item.
|
Target Date |
Action |
|
3/20/07 |
Submit Special Use Permit (complete) |
|
9/04/07 |
Submit Architectural Drawings for approval of the Town (Ram submitted in March 2008; the Town provided preliminary comments on June 5, 2008. Ram provided a response to the Town’s preliminary comments on 12/31/08. The Town staff is reviewing this information and has not approved the Architectural Drawings as yet.) |
|
12/31/07 |
Secure Special Use Permit (completed 6/27/07) |
|
5/07/08 |
Secure Zoning Compliance Permit (Ram submitted Final Plans for the buildings in April 2008; Ram has not yet responded to the Town’s Round 2 Final Plan comments which it received on November 13, 2008. Final Plans for the plaza and streetscape elements have not been submitted to date.) |
|
6/04/08 |
Submit final design development documents and Construction Documents for the Town to review to determine compliance with the Approved Architectural Drawings (not submitted) |
|
7/09/08 |
Complete initial Project Budget (not submitted; Town has limited review rights) |
|
---* |
Secure firm commitment for Project Financing (not submitted) |
|
|
*within 60 days after Zoning Compliance Permit |
|
--- ** |
Submit application for building permit (permit plans submitted 9/18/08; waiting on State Department of Insurance to complete its review) |
|
|
**within 30 days of Town confirmation that design development and Construction Documents are in compliance with Approved Architectural Drawings |
|
10/01/08 |
Closing to occur within 30 days after the building permit obtained, by October 1, 2008 (project is not ready for closing at this time) |
Performance of Work in the Development Agreement
Section 2.4 of the Development Agreement (p. 15) calls for the project to start construction 90 days after the Closing. The Agreement sets the Scheduled Completion Date as 24 months after the Closing (see Article I, p.5).
Fiscal Impact
Section 2.2 (a) (iv) of the Agreement (p. 9) provides that the Town shall provide $7.245 million (or other amount adjusted per the Agreement) upon substantial completion of the Parking Garage component of the project.
Special Use Permit Stipulation
In addition to the terms of the Development Agreement, the Special Use Permit for Lot 5 approved by the Council on June 27, 2007 provides for a construction timetable as follows:
“1. That construction begin by June 27, 2009 and be completed by June 27, 2012.”
We understand that the Developer intends to apply for an extension of this starting date.
We recommend that the Council receive this report.