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Interim City Manager Hollister asked what is meant by insure Labor Peace and stated that the <br />language does not include specifics regarding what would happen if the developer and unions <br />did not come to agreement. He further wondered if a lack of agreement would halt the project. <br />Manager Battenberg reviewed the main deal points of the Draft ENRA. <br />• The Developer is to be involved with the Shoreline Development CAC and generally <br />responsive to public. <br />• The Developer and its contractors are to comply with prevailing wage laws and the <br />City's Living Wage Ordinance. <br />• The term will be for 18 months with the ability to extend another 18 months. <br />• A $50,000 initial deposit to cover the City's third party financial and legal consulting <br />fees, plus an additional $25,000 due upon extension of the agreement. <br />• The Developer will be responsible for all technical studies, and in the event an EIR is <br />required the City will select the consultant to prepare the EIR and the Developer will <br />be required to pay the City and consultant costs. <br />• The City and the Developer are to work cooperatively on hydrology and other tidal <br />action studies. <br />• The City is to retain ownership of the site. <br />Mayor Santos asked if Section 1 of the Draft ENRA precluded the City from selling any of the <br />shoreline property for development. Manager Battenberg explained that the agreement does <br />not preclude the City from selling the property or entering into an equity sharing relationship <br />and that this may be necessary in order for the Developer to secure funding. The intent, <br />however, is to keep the shoreline as public land. Mayor Santos stated that interested <br />restaurant developers and investors over the years have not been able to have viable projects <br />without being able to purchase the land and having the land as collateral to secure their <br />development loans. Councilmember Prola expressed his preference that the City retain <br />ownership of the shoreline. Director Sims explained that the provision in the ENRA is <br />standard wording. It makes clear that to the Developer that he has no legal property right if <br />the environmental review and entitlements are granted. It protects the City's interest. <br />Mayor Santos and Councilmember Prola asked that Labor Peace be added to the ENRA. <br />Interim City Manager Hollister stated that the City Attorney will be asked to review the <br />proposed language and that language will be added following that review. Manager <br />Battenberg stated that the proposed wording will also be forwarded to the Developer. <br />Recommendation: <br />The Committee asked City staff to review the provision on Labor Peace for inclusion in <br />the ENRA scheduled for adoption at the October 20, 2008 City Council meeting. <br />2. Review of the Shoreline Development Citizens Advisory Committee (CAC) Schedule <br />Manager Battenberg reported that 66 applications for the CAC were received. The <br />Committee then discussed the appropriate size of the CAC. <br />Councilmember Starosciak asked if there were any applicants 18 years old or under. <br />Manager Battenberg replied no. Councilmember Starosciak recommended that a Youth <br />