2022-14 - Authorize negotiations with CASTO for downtown development

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Page 11 Term Sheet for Lakewood Downtown Development March 23, 2022 d. Developer will submit a detailed timeline and master schedule for Project milestones for the City's review within sixty (60) days after execution of this letter, which timeline will be incorporated into the Development Agreement. Such master schedule may be subject to amendment from time to time as development of the Project progresses, without the City's approval, except where the outside commencement date or outside completion dates as outlined above are changed, in which event Developer shall seek approval of the City not to be unreasonably conditioned, withheld, or delayed. e. The parties agree to revisit the outside completion dates set forth above in the event the Development Agreement is not executed by both parties by June 30, 2022. 7. Costs/Investments. a. Community Reinvestment Area. Developer has expressed its intent to participate in the City's Community Reinvestment Area Program whereby a 15-year residential tax abatement is made available for the provision of affordable housing meeting certain requirements defined by Resolution 2019-08. b. Additional Incentives. Further, Developer has demonstrated to the City that additional incentives will be necessary to close financial gaps in the capital and/or operating costs associated with the Project. These additional incentives include, but are not necessarily limited to, the creation and use of funds from a Tax Increment Financing (TIF) district, NCA, and/or SID. An initial customary sources and uses schedule and proforma ("Financial Analysis"), based upon the conceptual Project site plan (Exhibit A), has been provided by the Developer to the City. Based upon a review of the initial Financial Analysis, the City has indicated preliminary support for establishing a TIF District as authorized by 5709.41 of the Ohio Revised Code and providing certain. revenues from the TIF for the Project as set forth in the Development Agreement (excluding any for -sale residential components unless otherwise determined by the City). Such support shall be used to offset costs related, but not limited to, right of way and site improvements, structured parking, community spaces, Curtis Block facade preservation, sustainability initiatives, public art, and to pay, reimburse or finance any costs eligible under applicable law approved by the City pursuant to the Development Agreement. Any financial support by the City is conditioned on the Developer demonstrating in the final Financial Analysis a bona fide need and that without such support the Project would not be feasible. C. Non -City Funding. The City will use good faith efforts to obtain, or cooperate, as applicable, with the Developer's efforts to obtain additional non -City funding sources based on the development program and economic impacts of the Project. d. Environmental Obligations. The City has made Developer aware and Developer acknowledges there are environmental covenant restrictions and operation and maintenance obligations on the property related to a former dry cleaning use on the property. Upon transfer, the Developer will fully assume any and all responsibility associated with the environmental condition of the property. Notwithstanding anything herein to the contrary, the City will transfer the Project to Developer in its "As -Is, Where - Is" condition, and Developer shall rely solely on its own studies and investigations with respect to the condition and suitability of the Property. Developer shall release and 17439155v7