Presentation on theme: "1100 CORNWALL INFO HANDOUT Bellingham Public Development Authority www.bellinghampda.org 1."— Presentation transcript:
1100 CORNWALL INFO HANDOUT Bellingham Public Development Authority 1
1100 Cornwall Strategic Considerations for 2012 BPDA Downtown & Old Town Projects 2 1.Assemble vacant parcels to complete infill of block with mixed-use development. 2.Scale and style of development compatible with existing buildings. 3.Earliest possible development of vacant lots in the block compatible with existing zoning, adding property to tax rolls. 4.Recover past City Investment with sale and public revenue generated from development, while minimizing or avoiding need for additional City Investment in the development. 5.Provide funding source to support pre- development work on other priority sites in the environs, without additional City budget appropriations. Focus on strategic, central parking structure to increase future parking capacity in Downtown, Old Town and Waterfront Districts.
1100 Cornwall Parcel Assemblage 3 CCS Parcel 0.24 ac BPDA Parcel0.71 ac Combined 0.95 ac
Negotiated Sale Process 02/15/2011CCS expression of interest. 04/05/2011BPDA Board resolution authorizing negotiated sale process (*) 04/11/2011City Council approval of negotiated sale process (*) 06/09/2011CCS letter of intent. 07/24/2011Fair market value appraisal ($1,180,000) completed. 10/18/2011BPDA Board approval of Purchase & Sale Agreement, Development Agreement (*) 12/05/2011City Council ratification of Purchase & Sale Agreement, Development Agreement. Commencement of Buyers six month Inspection Period (*) 04/23/2012City Council approval of amendment to Development Agreement re. commencement of construction (*) 07/03/2012Closing. (*) 5 noticed public meetings. 4
1100 Cornwall Sale & Cost Recovery Sale to CCS closed July 3, Sources of Recovery of City Investment: Increases to City Investment Purchase Price $1,535,600 (Dec 2008) Capital Improvements $10,000 Ownership/Holding Costs $356,500 (Prorated BPDA ) Projected City Investment at end of 2012 $1,902,100 Reductions to City Investment Direct Benefits: Proceeds from Sale $1,180,000 Indirect Benefits: Net City Revenue From Development $1,329,200 (Discounted NPV, 30 yrs, 5% disc.) Total Reductions $2,509,200 ___ ______________ Net City Investment +$607,100 (positive return on equity, IRR) Key assumptions: 1.Build-out capital value of project est. at $20,000,000. Public-private (third party) capital 1: Construction commencement in 2-years from sale, build-out completed 5-6 years from sale. 3.Downtown multi-family residential tax property tax exemptions applied, 12 years. 5
Excerpts from CCS-BPDA 1100 Cornwall Development Agreement Recitals (D.) Developer is the owner of other parcels in proximity to the Property upon which Developer has developed and operates mixed use buildings. Developer also owns a certain vacant property (the CCS Property) contiguous to the BPDA Property. Developer desires to acquire the Property for purposes of developing an additional mixed use development project on the Property and the CCS Property. Developer intends to develop the Property and the CCS Property in two or more phases. The first phase is intended to consist of an approximately 40-unit housing complex serving low-income senior citizens and will be constructed on the CCS Property (the Phase One Project). The second phase is intended to consist of a mixed use development intended to contain a residential affordable workforce housing component, a commercial component and associated parking and will be constructed on the Property (the Phase Two Project). Section Cooperation on Development and Parking Developer and BPDA agree that, to the extent practicable as reasonably determined by the Developer, Developer will endeavor to incorporate energy and resource conservation measures in the design and construction of the Project. The build-out of the Project may be undertaken in phases as reasonably determined appropriate by the Developer and approved by the City. Further, Developer agrees that, to the extent practicable as reasonably determined by the Developer, parking facilities that provide parking in excess of the parking required under applicable Legal Requirements for Improvements then constructed shall be made accessible to the general public for off-hours use, shared use, or on a reserved basis at rates reasonably established by Developer. The scale of the Improvements will be generally consistent with the scale of the improvements and development in the vicinity of the Project. 6