OCR Text |
Show RDA plan given the go ahead By PAUL CH ALUS BOUNTIFUL "Optimistic" Redevelopment Agency members have given permission to begin organizing a major downtown project pro-ject to be known as ' Bountiful Towne Centre." The RDA board voted 5-1 Wednesday in favor of signing an option agreement with developers of a proposed shopping center in Block 29, downtown Bountiful, that would feature six major anchor stores. "Bountiful Towne Centre, a 180,000 square foot development, would rejuvenate the downtown area, they said. 1 Only RDA member Renee Coon opposed the measure. "I am very optimistic about the project but I don't want to hurt our local merchants, and some of the wording of the option agreement bothers me," Coon said. The board OK'd a revised option agreement with items that had been added to satisfy each of the two parties par-ties involved. City Attorney Layne Forbes told the RDA board, "The option agreement offers you five opportunities oppor-tunities to terminate the agreement It is drawn up to give you many ways out." Board member Barbara Holt made a motion to go ahead with the project but just for the first 90 days to she if it would fly. "I am very optimistic about the proposal but would like to see hard figures before signing the complete option agreement," she said. Members Leslie Foy and Harold Shafter said they didn't want to hold up or delay the process if the project has a chance to succeed by not approving the entire package. Developer John Thackeray said he didn't like the arrangement to go for the first 90 days only. "If it goes like that, we will have spent hundreds hun-dreds of hours and have nothing to I show for it" J SEE RDA ON A-2 the RDA staff to update the progress pro-gress on the project and interchange information. Upon completion of all functions func-tions in the first benchmark, buyer may extend through the second benchmark. In the event the seller determines in reasonable judgment that the buyer has not performed the functions required for the first phase, the seller has the right to terminate the agreement During the second benchmark, also a 90-day period (three to six months of project), the buyer will execute a binding option or purchase pur-chase agreement on all properties necessary for the proposed development, de-velopment, obtain seller's approval for vacating 100 South between Main Street and 100 West, The developer must also prepare final marketing plans and brochures to enable retail tenants to make final decisions regarding the feasibility of the project Upon completion of the functions func-tions within the second benchmark period, buyer may extend through the third benchmark. Should the seller, in the seller's reasonable judgment, determine that the buyer has not completed said objectives, seller has the right to with 30 days' notice terminate the agreement In the third benchmark, another 90 days (six to nine months into the project), the buyer must obtain letters of intent from tenants willing to occupy no less than 50 percent of the critical space of the project. Critical space is defined as all spaces of the project, less any freestanding free-standing specialty space, including restaurants, banks and etc. At buyer's option Block 32 can be excluded from the project. If Block 32 is excluded, seller's property prop-erty on Block 32 shall be excluded from the option. Critical space for Block 32 is defined as 45,000 square feet Total square feet to be developed on Block 20 and 29 is approximately 120,000 square feet. Critical space for Block 20-29 is defined as 70,000 square feet. At this point in the process, the buyer must disclose to the seller the tenant list as it develops, and seller shall have the right to independently independent-ly contact the tenant list to determine deter-mine interest in and commitment to the project Seller agrees not to publicize pub-licize the tenant list without approval ap-proval of buyer. Should the seller determine, in the seller's reasonable judgment, that space has not been leased as represented, seller shall have the right with 30 days written notice to terminate this agreement In the fourth benchmark, another 90 days (nine to 12 months), final zoning site plan to be approved by Bountiful City and application for financing for the construction, Execute leases with the major tenants necessary for the approval of the financing, subject only to final financing approval. The fifth and final benchmark, months 13-15, will close the loan for the construction of the on and off-site improvements, and provide evidence of financing to seller. Purchase all of the property necessary for the development of the shopping center. Complete architectural drawings, commence construction on the development and notice of exercise of option shall be given in writing on or before the expiration of the final benchmark. RDA CONTINUED FROM A-1 Holt's motion died for lack of a second and Robert Gramoll made the motion to accept the originally proposed agreement. The term of the option agreement with Johansen-Thackeray Company for a three-block downtown area will be for a period of five consecutive con-secutive periods (benchmarks) commencing on the date of execution execu-tion of the agreement by the buyer (the developer) and the seller (Bountiful RDA). The first benchmark will be for 90 days and include the following: Buyer to investigate property at the governmental staff level to determine the necessary steps for project approval. Buyer to prepare and submit for conceptual approval of the RDA board and Bountiful City Planning Commission, Commis-sion, a site plan showing the proposed pro-posed site plan, parking and elevations eleva-tions of the project. Buyer to obtain an architect or engineering report showing the estimate of costs to construct all on and off-site improvements. Buyer to share the analysis with the RDA board including all estimated and projected land prices, construction costs, rents, vacancy rates, return on investment, loan to value ratios, and other pertinent information relating to the economic feasibility of the development. Buyer to meet will all property proper-ty owners between Center Street and 200 South, and Main Street and 100 West, summarize the meeting in writing and make recommendation recommenda-tion as to whether or not each owner is interested in a sale or other disposition of the property. Buyer shall provide, at least monthly to the board, a written progress pro-gress update report and shall meet a minimum of twice per month with |