Title
Review of Draft Exclusive Negotiating Agreement (ENA) For Redevelopment of the Former Griswold’s Property in Partnership With Big Rock Capital Partners
Recommended Action
Committee Recommendation:
Not referred to committee.
City Manager Recommendation:
Review the draft Exclusive Negotiating Agreement (ENA) and recommend moving it forward to Council for review.
Report
Issue:
Whether to receive an update on the process that has led to the draft ENA and review draft elements for possible recommendation.
Staff Contact:
Renee Sunde, Economic Development Director, Community Planning & Development Department
Presenter(s):
Renee Sunde, Economic Development Director
Keith Stahley, Community Planning & Development Director
Leonard Bauer, Deputy Director, Community Planning & Development
Background and Analysis:
Request for Proposal - Downtown Redevelopment Opportunity
The City of Olympia issued a Request for Proposal (RFP) on July 22 to identify a qualified development partner to fulfill the City’s primary objective to create a vibrant mixed-use development on the property. Two proposals were received by the September 23 deadline. The City’s Review Committee (City staff, Mayor Pro Tem Jones and representatives from ECO Northwest, Pacifica Law Group, and the National Development Council) formally recommended to CERC the selection of Big Rock Capital Partners as a qualified development partner.
At the October 24 CERC meeting, the committee approved the recommendation to Council to accept the redevelopment proposal recommended by the review committee and requested a briefing of the draft Exclusive Negotiation Agreement (ENA) during the November CERC meeting.
The proposed ENA is an agreement between the City of Olympia and Big Rock Capital Partners that will provide a framework for next steps and define obligations of the developer and the City of Olympia. The agreement allows for the exclusive right to conduct due diligence and negotiations with the City for the sale of the Property and development of the Project for a specified period of time. Staff seeks review by the CERC and a recommendation to forward the agreement to City Council for their review. The ENA attached to the staff report is in draft form. Legal review is ongoing and may result in revisions to this agreement. A revised agreement may be presented to the CERC for their consideration on November 21.
If the ENA is approved by City Council then a negotiation period would commence that may result in a Purchase and Sale Agreement being presented to the CERC and City Council in the next six months. The Purchase and Sale agreement would detail the purchase price, design, use and timeline for the project.
Neighborhood/Community Interests (if known):
Over the past several years, there has been significant interest throughout the community in understanding the challenges for downtown development and the tools available to assist in the removal of blight. The adoption of the Community Renewal Area (CRA) Resolution establishing a CRA boundary was an important first step.
Through the work of the Downtown Strategy hundreds of citizens have been engaged in an ongoing effort to plan for the future of Downtown. The former Griswold property is in the heart of Olympia’s Entertainment and Artisan Tech character areas and remains a significant blight in the area.
There has been much interest from neighbors and the community at large to support a project that returns the property to economic use and enhances the existing Downtown businesses. The project ideally will contribute to the social, environmental and economic health of the community.
Options:
1. Review the agreement and forward a recommendation to Council to accept the ENA.
2. Direct staff to make significant changes to the ENA prior to recommendation.
3. Receive the briefing and make no recommendation to Council.
Financial Impact:
The City closed on the subject property with the intent of partnering with the selected development team for redevelopment of the subject property and its return to economic use. Financial terms will be part of the Purchase and Sale Agreement.
Attachments:
Draft Exclusive Negotiation Agreement (ENA) between City of Olympia and Big Rock Capital Partners