Foster Row Proposed Development Project Update May 18,

Foster Row 2 Unsolicited Proposal 19 proposed “infill” townhomes with small commercial component Uses CRA owned land & 2 small parcels purchased by the Developer 75% Community Benefit Plan Potential to “leverage” off of Dixie/Foster Mixed Use project

Foster Row 3 November 10, 2014Unsolicited Proposal Received Mid Nov. – Dec Staff preliminary review of proposal and preparation of Summary to Board January 6, 2015 Board authorization to further explore and negotiate terms Mid Jan. – Mar. 2015Staff questions/issues and Developer responses March 31, 2015Negotiation meeting with Developer's team April 1, 2015Additional staff issues and Developer response April 28 - May 4, 2015Negotiation of Term Sheet May 8, 2015 Conference call with Developer to address outstanding responses and staff concerns

19 proposed three-story townhouses – average 1,950 SF 2,200 SF of Commercial / Office space 1,150 SF Gym  Foster Row 4  

5 CRA & Developer have 60 day “due diligence” period; Developer to demonstrate financial capacity within the 60 day period. CRA contributes 3 parcels of land; developer contributes 2 parcels of land; land is held by CRA during construction. CRA approves final plans and specifications; approves Final Development Budget and Development Schedule; approves GC and GMP or CMAR construction contract. Developer assumes all pre-development and construction risk. CRA purchases completed project for amount equal to approved Final Development Budget, less any delay penalty incurred by the Developer. CRA markets and sells townhouse units; Developer receives 2,200 SF of commercial space.

Foster Row 6 Contribution of Land (2015 BCPA Value)$156, Gross Outlay to Purchase Units:$4,571, Subsidy on Unit Sales: $1,235,000 - $1,615,000 ($65,000 - $85,000 per unit) * The Marketing / Mortgage Placement and Net Investment information will be provided at a later time when the product is finalized.

Foster Row 7 High cost of write-downs at $65,000 - $85,000 per unit versus $32,000 per unit for Dixie / Foster Mixed Use project. Unit design/density – 3 story product at 25 du’s per acre. No comparable experience of Development Team Limited self funded capability of Developer

8 Developer to revisit project density (19 units) and provide market justification. Developer to review and amend development budget to include critical components (soft costs, contract, bonding, etc.). CRA negotiation team to carefully review resubmitted information. CRA to bring recommended development agreement to CRA Board (proposed timeline within 60 days). Foster Row