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9a. Attachment B Project Management 33 As the City moves into the lead negotiating position, the responsibility for the management of 34 the project will shift personnel. Instead of the HRA Executive Director and the HRA attorney 35 leading the staff efforts with City staff in a support position, the roles will switch. Going 36 forward, the lead staff efforts will be led by the Community Development Director and the City 37 Attorney with HRA staff and legal serving in a support role. 38 Next Steps 39 Prior to the February 23, 2015 City Council meeting, representatives of GMHC presented the 40 City Council members with a plan for an 18 unit concept that takes access directly off of the 41 street. GMHC indicated that it believes it can construct this concept profitably and its banker 42 will finance the development. It is also willing to proceed on the original concept, but 43 acknowledges it does not have the ability to finance Phases 2 and 3 at this time. 44 As previously mentioned in earlier meetings, both the City Attorney and the HRA Attorney have 45 reviewed the expired agreements and actions taken by the City, RHRA and GMHC and 46 determined that there is currently no legal obligation nor any other ties to GMHC related to this 47 development site. Both the RHRA and City Council have been presented with multiple 48 opportunities to initiate a process to consider soliciting additional developers and have not taken 49 any action on any of those efforts. Therefore, the next steps outlined below assume that 50 development of this site will be with GMHC. 51 City staff met with representatives of GMHC and outlined a process for moving forward with 52 either the 18 or 25 unit options. The goal of this process is to move quickly and build upon the 53 work that has already been accomplished in the earlier expired pre-development agreement 54 process as follows: 55 1. In the interest of time, City staff has already provided GMHC’s 56 financial information for both the 18 and 25 unit concepts to an outside financial 57 consultant (Ehlers) that specializes in housing redevelopments of this type. Ehlers will 58 perform a complete review of the development pro forma and provide guidance as to 59 whether the proposed deal structure is in line with other similar projects in the Metro 60 Area. 61 2.Since GMHC does not currently have any legal 62 ties to the development site, the City nor the RHRA, it will be necessary to enter into a 63 new PDA. As staff has outlined the structure with GMHC, the PDA will likely be more 64 simplified than the expired PDA because it will acknowledge those steps which have 65 already occurred. The key elements that staff anticipates in the new PDA include the 66 following: 67 a.Acknowledgement that all previous agreements, efforts, actions, etc. (whether 68 formal or informal) have expired and there is no liability nor other financial 69 obligation from the earlier process which will extend past the date of entering into 70 the new PDA. This is a fairly standard process to avoid real or implied legal 71 entanglements with similar documents from different processes. 72 b.GMHC will hold another meeting with the neighborhood to establish which 73 concept plan it intends to bring forward to development. GMHC will hold this 74 meeting and indicate in writing which concept it is pursuing within 30 days of 75 entering into the PDA. 76 Page 2 of 3