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File Number: 15-675 <br />approximately 12 acres of the Shoreline Development Project and rezoned a portion of the <br />project site. <br />Cal-Coast is now on a fast track to obtain the remaining entitlements and permits, including <br />those from outside agencies. The Shoreline Development Project will come back to the City <br />Council in late 2016 for approval of the Planned Development and vesting tentative map. <br />Staff plans to bring the Development Agreement to the City Council for approval along with <br />the remaining entitlements. <br />Analysis <br />The Development Agreement will be a comprehensive document that addresses all matters of <br />construction, use, maintenance and lease rates including details regarding infrastructure, <br />development schedule and phasing, performance and construction guarantees, <br />redevelopment of the boat harbor, and issues such as default and right to terminate, transfer <br />of the agreement, insurance and indemnification to name a few. <br />Given the size of the project and various uses as well as the significant investment that it <br />represents and the long-term nature of the lease, staff has requested the assistance of <br />Keyser Marston Associates (KMA) in developing and negotiating a term sheet which will serve <br />as the foundation for the Development Agreement. KMA specializes in public-private real <br />estate development, specifically the evaluation and negotiations of transactions that achieve <br />the goals and objects of both the public sector and private developer. Their services include <br />financial feasibility and market feasibility analysis, business term and ground lease <br />negotiations and public private financing plans. <br />KMA would provide assistance to staff in support of the negotiations with Cal-Coast as <br />directed by staff. The detailed Scope of Services can be found in Exhibit A of the Consultant <br />Services Agreement. A summary of the tasks, budget and timeline follows. <br />Task 1:Draft basic term sheet /Request financials from Developer/Equity Partner <br />Timeline: January Budget: $16,800 <br />§Review goals and objectives of City <br />§Assist City in developing a negotiating strategy <br />§Summarize, interpret, and explain key aspects of developer proposal <br />§Assist in preparing business terms for term sheet <br />§Evaluate the return on the publicly owned asset. Identify possible public <br />financing opportunities, such as EIFD and CFD, to replace expensive private <br />funds with for infrastructure, harbor redevelopment, site development and public <br />facilities. <br />§Recommend guarantee’s, such as a completion guarantee, to protect the City <br />§Discuss with City if fiscal neutrality should be demonstrated with a payment to <br />the City’s General Fund for Phase 1 and each of the subsequent phases. <br />§Request financials from developer/equity partner and other submittals in support <br />of the Project, including: market studies, conceptual programs and phasing, <br />development pro forma by land use, site development costs, debt and equity <br />requirements, ground lease terms by land use, etc. <br />Task 2:Review financial feasibility based on development program and pro forma <br />Page 3 City of San Leandro Printed on 12/15/2015