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Amendments to DA No. 2004-01 June 14, 2010 Page 4 The applicant requests that this section be deleted to allow for a discussion about potential assistance from the Redevelopment Agency. 5. Section 5.9 (3) Historic Structures on the Property The development agreement requires that the scarified (excavated) area under the tower be refilled 90 days after completion of the construction of the building's piles if the tower construction has not commenced. The applicant requests that the 90 day period be extended to 120 days. Analysis of the Issues 1. Section 4.3 Assignment The applicant proposes to delete the provision requiring that Mr. Harrah retain a 51% ownership interest in the project. All other provisions in Section 4.3 pertaining to assignments will remain. Assignment of rights conferred under the development agreement will require prior approval by the City Council. Mr. Harrah is proposing to enter into a joint venture with a financial entity(s), whereby each party retains certain ownership percentages. Mr. Harrah would retain daily managerial control of the project. In these uncertain economic times, it is not unusual for equity partners to request such a position in the project. Further, it is unusual for a City to specify how property is owned. Staff believes matters such as ownership are better controlled by the private market. Further, Section 4.2 of the development agreement species that the term of the agreement is seven years. This requirement that Mr. Harrah retain 51% ownership, therefore, is impermanent. For all these reasons staff finds no compelling reason to retain the requirement that the applicant retain 51% ownership. It is recommended that the requirement for retaining 51 % ownership be deleted. All other provisions in Section 4.3 pertaining to assignment of rights are recommended to remain. 2. Section 5.1.1 Offsite Mitigation Measures The applicant proposes to change the timing of payment of the $1.2 million. This $1.2 million provides for $200,000 to fund neighborhood traffic plans in the following six neighborhoods: French Park, French Court, Willard, Floral Park, West Floral Park and Washington Square. The rationale behind this requirement was to fund future traffic plans for affected neighborhoods based on the actual traffiGcirculation conditions existing after occupancy of the completed One Broadway Plaza tower. In this way actual impacts that may have been 75A-18