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EXHIBIT C <br />Proposed Deal Points for Public/ Private Partnership: <br />3rd and Broadway Project Deal Points Summary <br />Overview: <br />The Project is proposed on a City -owned site that currently has a 440 space Parking Structure that <br />needs to be replaced. The City needs to replace at least 200 to 300 spaces for Public Parking. The <br />City also wants to create anew Public Street to reconnect Sycamore St. These requirements have <br />a negative economic impact on any proposed development on this site and will require a public <br />subsidy. <br />Based upon this scope of work (below), the latest pro forma from the Developer, and the ICosmont <br />Company's analysis, the Project without a subsidy has a significant financial GAP. <br />The proposed deal structure would minimize the GAP as follows: the City would segregate <br />typical costs to develop a site such as demolition of the existing parking structure and preparation <br />for development, as well as Public Improvements such as replacement Public Parking and a Public <br />Street (Sycamore St.) as the City's responsibilities. <br />The costs for the City's responsibilities are estimated by the Developer at $13 million. The City <br />cost will be based on the actual cost of the Public Improvements. The City would finance the <br />capital costs thru a Public Financing. The Developer will pay the debt service thru an Operating <br />Agreement whereby the Developer will operate the Public Parking and pay all costs with no <br />financial risk to the City. <br />The subsidy amount is within the feasibility gap as estimated by I{osmont. The Hotel is the biggest <br />economic risk. However, the possibility of future conversion to residential if the Hotel is not <br />economically viable in the first 5 years, provides an economic alternative that helps to mitigate the <br />risk. <br />The Developer would have the responsibility to entitle, develop and finance all private <br />improvements, provide evidence of financing and obtain all necessary building permits prior to <br />the City conveying the site. <br />As part of the Developer's due diligence, the City will agree to allow the Developer to enter the <br />site for necessary tests as appropriate. <br />These terms are attached with the revised ENA which will provide the parameters to negotiate <br />terms of a DDA and will require CEQA clearance for approval by the City Council. <br />20C-18 <br />