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Home My WebLink About061306 Town Center IIITown Center Phase III City of Virginia Beach June 13, 2006 North Perspective South Perspective Prior Phase III Action - •09/06/05 –City Council Approval of Phase III Development Agreement •09/15/05 –VBDA Approval of Phase III Development Agreement •06/06/06 –City Council Closed Session Briefing of Modifications to Phase III Development Agreement BLOCK 7 Elements •37 story hotel/condominium tower (501 feet tall) -119 unit residential condominium (21 floors) -236 room full service Westin Hotel (10 floors) •25,000 sq. ft. West Retail Unit •11,500 sq. ft. East Retail Unit •25,000 sq. ft. meeting room/conference facility •947car parking garage (212 condo parking and 735 public parking) Timing •Construction Commencement –Fall ’05 •Construction Completion –Summer/Fall ’07 BLOCK 7 PARKING GARAGE •735 Public Spaces •Acquisition Cost based on actual construction costsincurred with guaranteed maximum price •Due to increases in construction costs, guaranteed maximum priceto be increased from $16.1M to $17.2M ($23K/space) •Authority to pay actual construction interest portion of Acquisition Cost, regardless of guaranteed maximum price, if interest exceeds Developer’s estimates solelydue to a rate increase •Authority obligated to purchase upon opening of Hotel and substantial completion of rest of Block 7 –If improvements on Blocks 6 and 9 not complete, financial equivalent of lost real estate taxes to be paid by Developer to VBDA over 8 years (or until constructed) (payments for Block 9 to begin 12/2010) –If Block 7 condo units not complete or not assessed at projections, financial equivalent of lost real estate taxes to be paid by Developer to VBDA over 8 years (or until complete and projections met) BLOCK 7 WEST RETAIL •25,000 square feet of ground floor commercial space •Authority obligated to purchase upon substantial completion of shell space and rest of Block 7 •Acquisition Cost based on actual construction costs with a guaranteed maximum price of $2.8M (cold dark shell) •Authority to develop options for use of space to further the economic interest of the City, including any potential buildout •Developer obligated to re-purchase after 3 years for Authority’s Acquisition Cost plus cost-of-carry BLOCK 6 Elements •1200 seat Performing Arts Theater •Eastern Development Parcel (Block 6E) -±15,000 sq. ft. land on which 56 residential condominiums and 14,000 sq. ft. of commercial space to be constructed –Developer has signed lease with McCormick & Schmick for majorityof commercial space •Western Development Parcel –±18,370 sq. ft. raw land -Authority retains, Developer has right of first option if parcel is to be used for commercial purposes Timing •Construction Commencement –Theater –Summer ’05 •Site Delivery –Block 6E –December ’06 •Construction Commencement –Block 6E –January ’07 •Construction Completion –Theater –Fall ’07 •Construction Completion –Block 6E –Fall ’07 BLOCK 6E •56 Loft residential condos, 14,000 sq. ft. of ground floor commercial space •Developer to pay Authority parking contribution of $8,942 per residential condominium unit •Authority has agreed to deliver site by December 31, 2006 BLOCK 9 Elements •75,000 -100,000 sq. ft. multi-story multi-use building (may include residential condos) Timing •Developer Purchase of Block 9 Land –Fall ’10 •Construction Commencement –Fall ’12 •Construction Completion –Fall ’14 Other Changes –Extend to 9/1/2010 date by which Developer must purchase remaining Option Land (Block 9 and portion of Block 11) Principles of Phase III •Investment partnership between Developer and Authority –Economic Development Park •Authority obligations supported by a Support Agreement between City and Authority •Authority obligations supported by City are structured to be paid from TIF District and Special Tax District revenues •TIF is designed to accumulate funds to pay for purchases of parking garage, conference facility and pedestrian bridge and to pay for purchase of and on-going management and capital maintenance of conference facility Principles of Phase III Continued... •Special Tax District pays for operation and maintenance costs of Authority in operating parking garage •Traditional public infrastructure (streets, street-scapes) to be funded through CIP and EDIP •Project paid for by TIF revenues; special tax available to cover shortfalls in TIF except if shortfall in TIF occurs because of reduction in real estate tax rate