cover
TO: Mayor Richard C. Irvin/ and City Council
FROM: David Dibo Executive Director, Division of Economic Development
DATE: September 12, 2024
SUBJECT:
A Resolution authorizing a third amendment to and restatement of the approved redevelopment agreement (R21-204) with DAC Developments LLC regarding the development of 100 North Broadway
PURPOSE:
The DAC Development group is requesting to update the existing RDA (approved by City Council on September 29, 2021) in order to change certain milestones within the agreement to maintain an up-to-date timeline in the RDA, and to address increased costs associated with the project
BACKGROUND:
In September 2021 City Council approved a Redevelopment Agreement with DAC Developments LLC. The RDA included Exhibit H which outlined a schedule outlining key steps in the construction process and associated dates.
In July 2022 City Council approved a 1st Amendment to the RDA to update the schedule outlined in the original RDA.
In December 2022 City Council approved a 2nd Amendment to the RDA to update certain milestones within the agreement and to adjust the project budget to reflect COVID 19 induced inflationary impacts on construction costs.
DAC has broken ground on the development and has begun work on the site and foundation construction. This work has uncovered substantial remediation issues not revealed in the prior review of the property. This remediation centered both on the need to remove contaminated soils from the site as well as removal of structures such as foundations as deep as 20 feet below grade.
DISCUSSION:
At the time of the 2nd Amendment which increased the project budget from $68,000,000 to $84,000,000.00, DAC did not make a request for additional City contributions to the project opting instead to test the altered lending environment. In fact, lenders severely tightened their requirements. Specifically loan amounts as a percentage of costs reduced along with higher lending costs. In add...
Click here for full text