HomeMy WebLinkAboutItem 01 Blue McKenzie Predevelopment Loan ExtensionAGENDA ITEM SUMMARY Meeting Date:
11/14/2022
Meeting Type:
Regular Meeting
Department:
CAO, CMO
Staff Contact:
Kristina Kraaz, CAO
STATEMENT:
Niel Laudati, CMO
S P R I N G F I E LD ECONOMIC Staff Phone No:
541-744-4061
DEVELOPMENT AGENCY Estimated Time:
10 Minutes
ITEM TITLE: BLUE MCKENZIE PREDEVELOPMENT LOAN EXTENSION
ACTION
Authorize the City Manager to execute a six-month extension to the
REQUESTED:
Predevelopment Loan Agreement between SEDA and Blue McKenzie Apartments,
LLC.
ISSUE
In May 2021, the SEDA Board authorized a $2,000,000 land acquisition and
STATEMENT:
predevelopment loan to Blue McKenzie Apartments LLC, to support a mixed-use,
market -rate project in Downtown Springfield known as the "Blue McKenzie"
development. Market conditions impacted the project timeline and has delayed
completion of the predevelopment work. The Board is asked to approve a six-
month extension to the original term of the predevelopment loan, which was
originally due payable on November 25, 2022, to extend the term to May 25, 2023.
ATTACHMENTS:
1. First Amendment to the SEDA/Blue McKenzie Predevelopment Loan
2. Final SEDA/Blue McKenzie Predevelopment Loan (May 2021)
DISCUSSION/
In April 2021, the SEDA Board authorized spending of existing tax increment
FINANCIAL
financing (TIF) dollars of the Downtown urban renewal area to support the Blue
IMPACT:
McKenzie project, a Downtown mixed use market rate structure. The project
includes an 8 -story, mass timber construction type, project with ground floor
commercial and 75 +/- residential units above.
The key project goals are to:
1. Create a proof of concept to communicate that new construction type and
height is profitable and viable in Springfield;
2. Provide a market -rate high-density housing project to serve as a comparable
for financial institutions when approving future projects in Springfield; and
3. Create a dense development in Downtown to spur subsequent private, taxable
housing development.
At the June 13, 2022 SEDA meeting, City staff updated the SEDA Board on several
factors have contributed to delays and unexpected cost impacts on the project, since
the Predevelopment Loan was signed in 2021. These factors include the rising
labor costs and scarcity of supplies and contractors; uncertainty in manufacturers'
timing and availability; and contractors' willingness to commit to projects and bids.
Considering those factors, in January 2022, SEDA staff and the Blue McKenzie
project team agreed to slightly delay completion of the predevelopment loan tasks
to help mitigate rising construction costs. Consistent with this approach, the SEDA
Board is asked to formally approve a six-month extension to the original
Predevelopment Loan. The Predevelopment Loan would be repaid upon
disbursement of the Construction Loan, expected prior to May 2023.
FIRST AMENDMENT TO
SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY DOWNTOWN
ACQUISITION AND PREDEVELOPMENT LOAN CONTRACT
(Blue McKenzie Apartments LLC)
Contract #2827
Effective Date: November 14, 2022
The Parties hereby agree that the SEDA Downtown Acquisition and Predevelopment Loan
Contract ("Loan Contract") is made and entered into this May 17, 2021, by and between the
Springfield Economic Development Agency (SEDA) and Blue McKenzie Apartments LLC, an
Oregon limited liability company (Borrower) is hereby amended for the first time as set forth
herein.
Pursuant to Section 9 of the Loan Contract, Borrower has requested SEDA approve an extension
to the term of the Loan Contract for an additional six months, to a total of 24 months from the
effective date of the Loan Contract. The basis for Borrower's request is that said extension will
enable Borrower to receive better construction pricing and more favorable senior financing for
the development that is the subject of the Loan Contract. SEDA considers it in the parties'
mutual interest to agree to the requested six-month extension.
Therefore, the Loan Contract is amended as follows:
Section 9 is amended to state:
Project Schedule and Completion. The predevelopment work must be completed
within twenty-four (24) months of the date Borrower signs this Contract (for the
avoidance of doubt, subject to extensions for events of force majeure as described in
section 35). Each predevelopment task must be completed according to the project
schedule in Exhibit B, except that period for completion of tasks 4 through 7 are
extended by an addition six (6) months. Any deviations or adjustments to the project
schedule that will materially delay the ultimate completion of the predevelopment work
and/or Project completion must be approved by SEDA.
Section 17 is amended to state:
Repayment Terms. The disbursed principal amount is fully due and payable
twenty-four months (24) months from date of this Contract.
Except as amended herein, all other terms and conditions of the Loan Contract between Parties,
including Project Budget in Exhibit B, will remain in full force and effect.
SEDA BORROWER
Name: Name:
Title: Title:
Date: Date:
{00026329:1}
Attachment 1 Page 1 of 1
SEDA DOWNTOWN ACQUISITION AND PREDEVELOPMENT LOAN
Contract #_2827
This SEDA Downtown Acquisition and Predevelopment Loan Contract ("Contract") is made and
entered into this May 17 , 2021, by and between the Springfield Economic Development
Agency, hereinafter referred to as "SEDA" and Blue McKenzie Apartments LLC, an Oregon
limited liability company, hereinafter referred to as "Borrower."
STATEMENT OF PURPOSE
SEDA is authorized to provide financial loans to businesses in the Downtown Urban Renewal
Plan area that are consistent with the Downtown Urban Renewal Plan. Borrower and SEDA
have entered into a Memorandum of Understanding dated April 16, 2021 (the "MOU") regarding
development of an eight -story mixed-use, market rate residential building located east of 7'h
Street and north of A Street in Springfield (Map Number 17-03-35-42, Tax Lot 2300) (the
"Property"). The purpose of this Contract is to set forth the terms under which the SEDA funds
will be provided to Borrower.
NOW, THEREFORE, in consideration of the promises contained herein, it is agreed as follows:
1. Purpose of Loan Funding. The purpose of this loan is to facilitate Borrower's
acquisition of the Property and to fund predevelopment costs for a new development with the
following attributes: (a) eight -story mixed-use building; (b) seven stories of market rate
residential development providing approximately 84 units; (c) approximately 5,000 square feet
of ground floor commercial retail; and (d) cross -laminated timber construction, more particularly
described in the "Springfield Motors Development Report" in Exhibit A (the "Project").
2. SEDA Agreement to Fund Loan. Subject to, and conditioned upon, Borrower's
compliance with the terms of this Contract and the other Loan Documents and the
representations contained in the Developer's Statement of Financial Capability (the
"Application"), SEDA agrees to provide Borrower a loan in an amount not to exceed two million
dollars ($2,000,000.00) at 0% interest. Notwithstanding any provision in this Contract, items
eligible for the SEDA funds shall be limited to purchase of the Property and predevelopment
costs associated with the permanent improvements to the Property identified in Exhibit B.
Examples of items not eligible for the SEDA funds include: Ongoing administration costs or
business operating costs. SEDA shall have final determination on items eligible for payment,
provided SEDA's approval shall not be unreasonably withheld, conditioned, or delayed.
3. Security. This loan shall be evidenced by a Promissory Note executed by
Borrower in favor of SEDA, and secured by (a) a Line of Credit Instrument Deed of Trust,
Assignment of Leases and Rents, Security Agreement and Fixture Filing executed by Borrower
in favor of SEDA placed on the Property (the "Deed of Trust"), and (b) an Assignment of Plans,
Specifications, Reports and Permits (the "Assignment") executed by Borrower in favor of SEDA
(collectively with this Contract, the "Loan Documents"). Borrower hereby authorizes SEDA to file
or record any other documents Lender considers reasonably necessary to perfect Lender's
security interest.
3.1. Subordination. This loan will be secured by a first position lien on the
Property. SEDA will not agree to subordinate this loan.
Page 1 of 7
Attachment 2 Page 1 of 19
4. Title Insurance. Title insurance will be required. The costs of a title search, title
insurance and any endorsements thereto, and credit reports, and recording SEDA's security
interest against the Property are considered eligible project expenses and shall be paid by the
loan proceeds as the first or subsequent draws on the loan. Borrower will be responsible for
reconveyance costs either through the remainder of loan proceeds or by making a separate
payment to SEDA.
5. Credit Information Release. Borrower and its members each individually hereby
authorize any person or consumer reporting agency to complete and furnish to SEDA's agents
any information it may have or obtain in response to SEDA's credit inquiries. Borrower
authorizes SEDA to provide information concerning Borrower's and Borrower's members' credit
relationship to credit reporting agencies or other creditors.
6. Funding. Pursuant to Oregon Budget Law, SEDA's obligations are expressly
made subject to the availability of uncommitted funds on all dates anticipated for SEDA
payments. If funds are not available on the anticipated date, but are expected in the future,
SEDA funding may be deferred until funds become available.
7. Disbursement of Loan Proceeds.
7.1. Acquisition Loan funds. Loan funds not greater than the purchase price of
the Property or four hundred thousand dollars ($400,000), whichever is less, will be sent to
escrow to acquire the Property, along with the Loan Documents. No loan funds may be
disbursed unless all the Loan Documents are properly executed by Borrower.
7.2. Predevelopment Loan funds. SEDA shall segregate the loan proceeds to a
specific SEDA account held for the use of Borrower's disbursement pursuant to the terms of this
Contract. SEDA will disburse funds directly to the Borrower. Eligible expenses are only those
expenses listed in the project budget in Exhibit B. SEDA will disburse loan funds no more
frequently than once in any 30 -day period and within 15 days of SEDA's receipt of a
disbursement request that meets the following requirements and is otherwise approved by
SEDA:
7.2.1 Borrower will submit each disbursement application using the form
in Exhibit C.
7.2.2 Borrower will provide SEDA and City staff with all invoices, proofs
of payment, contracts and lien waivers associated with the Project with the disbursement
application.
7.2.3 With the exception of the final loan draw, loan funds must be
drawn in amounts of at least $10,000.
7.2.4 Borrower will provide SEDA and City staff with any other
documentation reasonably requested by SEDA or City staff in connection with the
disbursement, including without limitation, title endorsements.
Loan Documents.
7.2.5 Borrower shall not be in default of any of its obligations under the
Page 2 of 7
Attachment 2 Page 2 of 19
8. Borrower's Representations. Borrower represents, warrants and covenants to
SEDA the following as of the date of this Contract, each disbursement date and during the term
of this Agreement as follows:
8.1. Organization and Authority. Borrower is a limited liability company, duly
and validly organized and in existence under the laws of the State of Oregon. Borrower has full
legal right, power and authority, and all necessary licenses and permits required to (a)
undertake and carry on the predevelopment work, (b) execute and deliver this Contract, the
Note and the other Loan Documents, and (c) carry out and consummate all transactions
contemplated by this Contract, the Note and the other Loan Documents.
8.2. No Violations or Default. Borrower is not in default under or in violation of
any agreement to which it is a party or by which it is bound, nor any order, regulation, ruling or
requirement of a court or other public body or authority. No creditor has given Borrower notice
or threatened to give it any notice of default under any material agreement. At all times material
to this Contract, Borrower shall remain fully able to perform all of its duties and obligations.
8.3. Litigation. No action, suit, investigation or proceeding is pending against
Borrower or with respect to the Property or the Project before any court or administrative
agency, (a) the outcome of which, by itself or taken together with any other litigation, might have
a material adverse effect on the business, assets, operations, or financial condition of Borrower,
or (b) which purports to affect the legality, enforceability or validity of any Loan Document.
8.4. Tax Returns. All federal, state, and other tax returns of Borrower required
by law to be filed have been filed.
9. Project Schedule and Completion. The predevelopment work must be completed
within eighteen (18) months of the date Borrower signs this Contract (for the avoidance of
doubt, subject to extensions for events of force majeure as described in section 35). Each
predevelopment task must be completed according to the project schedule in Exhibit B. Any
deviations or adjustments to the project schedule that will materially delay the ultimate
completion of the predevelopment work and/or Project completion must be approved by SEDA.
10. Review of Work Product. SEDA staff may review the work product as stated in
Exhibit B to ensure that all elements have been satisfactorily completed. SEDA shall have
reasonable discretion to determine whether or not Borrower has complied with Borrower's
obligations herein. SEDA's determination on this matter shall be final and binding.
11. Standard of Work. Borrower shall ensure that all predevelopment activities,
investigation and work product contemplated by this Contract in Exhibit B or subsequently
approved in writing by SEDA, and undertaken by Borrower are of high quality and meet with the
commonly accepted standards of persons performing such investigations or activities or
producing such work product. If Borrower fails to take all reasonable steps of investigation,
adequate contracting and monitoring typical of a borrower similarly situated to Borrower and in
accordance with applicable industry standards, such failure shall be a breach of this Contract,
subject to applicable cure periods.
12. Licenses; Maintenance of Business. Borrower will remain a limited liability
company, validly existing under the laws of Oregon, and will keep in force all licenses and
permits necessary to undertake and complete all predevelopment work.
Page 3 of 7
Attachment 2 Page 3 of 19
13. Prior Expenses. Expenses incurred by Borrower or otherwise with respect to the
Project prior to the date of the execution of this Contract are not eligible for reimbursement.
14. Third Party Contracts. All predevelopment contracts will be between Borrower
and Borrower's contractors and suppliers as identified in Exhibit B. Borrower will provide copies
of executed contracts with all contractors. Borrower will not enter into new contracts for
predevelopment work with contractors or suppliers not described in Exhibit B, including yet to be
identified contractors, without the consent of SEDA, which shall not be unreasonably withheld,
conditioned, or delayed. The City of Springfield (the "City") and SEDA are not parties to these
contracts by virtue of providing this financial assistance.
15. Final Disbursement. Five percent (5%) of the total SEDA funding, not including
funds for acquisition of the Property, will be held back from the final draw and released only
upon satisfactory completion of the predevelopment work as described in section 19, and
receipt of documentation establishing that the total expenditures match the estimated cost
outlined in the Exhibit B.
16. Remaining Loan Funds. SEDA's funding assumes that completion of the
predevelopment work will require expenditure of all sums represented by the applicant as being
necessary for the predevelopment work. If the total predevelopment work costs are less than
the projected amount, SEDA's contribution is to be proportionately reduced. If, at the
completion of the predevelopment work, or the deadline for completion of the predevelopment
work set forth herein, any loan funds remaining undisbursed, the Borrower shall not be required
to repay any undisbursed funds.
17. Repayment Terms. The disbursed principal amount is fully due and payable
eighteen months (18) months from date of this Contract.
18. Consequences of Unauthorized Expenditure by Borrower. In the event that
Borrower expends any loan funds for a purpose outside of, or beyond what is set forth in this
Contract, SEDA may withhold any future loan funding and Borrower shall be immediately
obligated to repay SEDA all loan funds which have been expended for a purpose outside or
beyond that set forth in this Contract. Expenditures shall be subject to inspection annually by
SEDA/City auditors.
19. Prosect Completion. Borrower agrees to complete the predevelopment work
described in this Contract within the time schedule provided therein. The predevelopment work
shall be deemed complete when all documents have been created to the extent described in
Exhibits A and B and are otherwise ready to submit for required permits and construction
lending requests, as reasonably determined by SEDA. If necessary, Borrower may request in
writing, an extension to complete the work. This extension will be authorized by SEDA at its
reasonable discretion.
20. Construction Loan Negotiation. During the 6 -month period commencing on the
date of this Contract (the "Negotiation Period"), SEDA and Borrower shall exercise diligent and
good faith efforts to agree in writing on the material terms (which shall include, without limitation,
the loan term, interest rate, repayment terms, and required guarantors and loan collateral, as
generally described in the MOU) of a subsequent approximately $10 million dollar construction
loan from SEDA to Borrower for the construction of the Project (the "Construction Loan"), which
loan is intended to pay off this Predevelopment and Acquisition Loan. The Negotiation Period
may be extended if the parties mutually agree in writing to such extension. If the parties are
unable to agree in writing on the material terms of the Construction Loan during the Negotiation
Page 4 of 7
Attachment 2 Page 4 of 19
Period (as may be mutually extended), then, notwithstanding anything herein to the contrary,
SEDA shall have no obligation to disburse additional funds to Borrower under this loan, except
for disbursements for expenses actually and already incurred by Borrower under this
agreement. Nothing in this paragraph shall be construed to create an obligation of SEDA to
make the Construction Loan and no party shall be obligated with respect to the Construction
Loan until binding loan documents are mutually executed by the parties.
21. Consequences of Failing to Complete Prosect or Other Breach of this Contract.
In the event that the Borrower fails to complete the predevelopment work described in this
Contract within the applicable time schedule (as the same may be extended pursuant to force
majeure under section 35 of this Contract), or commits any other material breach of this
Contract beyond all applicable notice and cure periods, all sums loaned or granted by the City
shall then be immediately repaid to City by Borrower.
22. Loan Forgiveness. Notwithstanding anything in the Loan Documents to the
contrary, in the event that Borrower and SEDA mutually agree that future construction of the
Project is no longer feasible, this loan will be forgivable by SEDA. As a condition precedent to
loan forgiveness, Borrower will deliver and assign to SEDA, at no cost to SEDA, all Borrower's
right, title and interest in the architectural designs and drawings for the Project, third -party
reports, studies, work product and other Collateral (as defined in the Assignment), and a deed
to the Property in lieu of foreclosure, all in forms acceptable to SEDA. Following Borrower's
delivery of the aforementioned documents to SEDA, Borrower shall be fully released from any
and all obligations under this Contract or the Loan Documents. For the avoidance of doubt, the
principals, members, managers, and other individuals associated with Borrower shall have no
personal liability associated with this loan evidenced by this Contract, it being understood and
agreed that all liability of Borrower shall be limited solely to Borrower's assets described in the
Loan Documents, except for any indemnification obligations under this Contract or the Loan
Documents.
23. Inspection and Regulatory Review. It is Borrower's responsibility to obtain all
necessary regulatory reviews and approvals including but not limited to land -use review, and
requisite permits. The Project must remain in compliance with all regulatory bodies and
approval agencies. It will be Borrower's responsibility to resolve any regulatory issues.
24. Special Provisions. In addition to compliance with all representations made in the
loan Application, this loan shall further be conditioned upon Borrower's compliance with the
following special conditions:
24.1. Project Plan Amendment. Any material deviation from the predevelopment
work detailed in Exhibit B must be preapproved in writing by SEDA to be eligible for
reimbursement.
24.2. Design Review. The Project is subject to the City of Springfield
Development Code and applicable building codes. If the Project is not approved by Springfield
Development & Public Works Department, subsequent funding is hereby revoked. SEDA shall
agree to loan forgiveness as provided in Section 22.
25. Discharge of Liens. Borrower will timely pay and discharge all indebtedness,
taxes and other obligations for which it is liable or to which its income or property is subject, as
well as all claims for labor, materials or supplies that, if unpaid, might become by law a lien upon
the Property, subject to Borrower's right to contest any liens described in the Deed of Trust. If
Borrower fails to discharge any such claim or lien, SEDA may, in its sole discretion and without
Page 5 of 7
Attachment 2 Page 5 of 19
waiving the default, pay the same, which payment shall, at SEDA's option, be added to the
amount outstanding under the Note.
26. Prevailing Wages. Borrower and its subcontractors shall comply with ORS
279C.840 requiring Borrower and its subcontractors to pay workers on the Project the prevailing
rate of wage as established by the Oregon Bureau of Labor and Industries unless exempt
therefrom. Borrower will be responsible for compliance and reporting under the Oregon
Prevailing Wage Law and its implementing rules, ORS 279C.800 et. seq. Borrower will hold the
City and SEDA harmless for all costs, fees and penalties that may be incurred, and for all
reports, fines and/or litigation costs, including reasonable attorney fees, that may result from
Borrower's application of the Oregon Prevailing Wage Law to the Project.
27. No Assignment. The obligations of Borrower hereunder and under any
accompanying loan or personal obligations of Borrower are not assignable or transferable
without written consent of SEDA, which shall not be unreasonably withheld, conditioned, or
delayed.
28. Interest. In the event Borrower breaches any term of this Contract or any of the
other Loan Documents, Borrower's obligation will bear interest at the rate of twelve percent
(12%) per annum.
29. Attorney's Fees. Should suit or action be filed to enforce this Contract or seek
damages for its breach, the prevailing party shall be entitled to an award of its reasonable
attorney fees including those incurred upon appeal.
30. Indemnification and Regulatory Compliance. Borrower shall be responsible, and
shall comply with, all requirements of law including, but not limited to, compliance with all
applicable federal, state, and local regulations and hereby covenants and agrees to indemnify
and hold harmless SEDA, from any claim, demand, or damage, resulting in any manner from
the extension in loan funds from SEDA to Borrower and/or any use of SEDA funds by Borrower,
this Contract, Borrower's actions in connection with the Project, including its agents and
assignees, and from any use of SEDA funds except to the extent caused by SEDA's
negligence or willful misconduct.
31. Insurance. Borrower will at all times carry a Comprehensive General Liability
insurance policy for at least $2,000,000 combined single limits per occurrence for Bodily Injury,
Property Damage, and Personal Injury and $3,000,000 aggregate. The City and SEDA, and
their respective employees, officials, and agents will be named as an Additional Insured on the
General Liability policy and a certificate evidencing the foregoing insurance requirements in a
form acceptable to SEDA shall be delivered to SEDA prior to the initial loan disbursement. This
insurance will be primary over any insurance the City may carry on its own. Borrower
understands that the City of Springfield is a public entity subject to the requirements of the
Oregon Governmental Tort Claims Act, ORS 30.260 et seq.
32. Tax Consequences. SEDA makes no representations concerning the tax
consequences to the recipient of any agency grant or loan. Any questions in this regard should
be resolved by the recipient with his/her own tax professional.
33. Legal Representation. This Contract was prepared by SEDA. Borrower has had
the opportunity to have this Contract reviewed by its own legal counsel prior to its execution.
Page 6 of 7
Attachment 2 Page 6 of 19
34. Venue. Venue for litigation concerning this Contract shall rest exclusively with the
court of the State of Oregon for Lane County.
35. Force Maieure. If Borrower is delayed by reason of weather, fire, strikes,
pandemic (other than the present conditions or restrictions associated with the COVID-19
pandemic), Acts of God, or other similar circumstances beyond Borrower's reasonable control,
Borrower shall be entitled to additional time to complete the predevelopment work equal to that
lost by any or all of the above causes, as reasonably determined by SEDA.
36. Obligations Binding on Trustees Successors and assign . The obligations of
Borrower shall be binding upon Borrower, Borrower's successors and assigns, Borrower's
estate, any trusts in which Borrower is a trustor or beneficiary, and any other entity or instrument
owned or controlled by Borrower.
SEDA:
By: C _
Printed Nam6-"
Title: Ci=g�
2=1Date:
EXHIBITS:
A — Springfield Motors Development Report
B — Project Budget, Tasks and Timeline
C — Disbursement Request Form
BORROWER:
BLUE MCKENZIE APARTMENTS, LLC
By��–ted
- — Name: 4�tLams
Title:
Date: S't� z
Page 7 of 7
Attachment 2 Page 7 of 19
SPRINGFIELD MOTORS
DEVELOPMENT REPORT - OCTOBER 2020
702 NORTH A STREET, SPRINGFIELD, OR 97477
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Attachment 2 Page 9 of 19
SPRINGFIELD MOTORS
MIXED USE MASS TIMBER DEVELOPMENT
702 NORTH A STREET, SPRINGFIELD, OR 97477
DATE: 10/19/2020
SITEWORKS
PAGE: 20F19
DESIGN I BUILD
SPRINGFIELD ZONING MAP & EXISTING SITE INFORMATION
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EXISTING SITE PLAN DIAGRAM
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PHASE 2 - FUTURE DEVELOPMENT
10 FT MAX SETBACK
25 FT MIN. BUILDING HEIGHT
BUILDING HEIGHT SUBJECT TO SHADE POINT
HEIGHT REGULATIONS PER 3.2-225A
EASEMENT
SOUTHEAST PARCEL - FOCUS SITE
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PAVED PANG PHASE 1A - PROPOSED DEVELOPMENT
90 FT MAX BUILDING HEIGHT
25 FT MIN. BUILDING HEIGHT
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VEHICLE ACCESS ALLOWED FROM A -STREET
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ALLOWED USES - MIXED USED COMMERCIAL (MUC) ZONE
• BUSINESS AND PROFESSIONAL OFFICES AND PERSONAL SERVICES
• EATING AND DRINKING ESTABLISHMENTS (INCLUDING TAVERNS AND
BREW PUBS)
• RECREATIONAL FACILITIES
• RELIGIOUS, SOCIAL AND CIVIC INSTITUTIONS
• RESIDENTIAL USES IN AREAS DESIGNATED MIXED-USE IN THE METRO
PLAN OR REFINEMENT PLANS
• RETAIL SALES
• TRANSIENT ACCOMMODATIONS
Attachment 2 Page 10 of 19
PHASE 1 B - FUTURE RENOVATION
EXISTING BUICK DEALERSHIP
MUC - ZONE DEVELOPMENT STANDARDS
• MINIMUM FLOOR AREA = 6000 SF
• MIN F.A.R. = .40
• 40 FT MIN. STREET FRONTAGE
• 60% MIN. GROUND FLOOR AREA AS
COMMERCIAL USE
• UNLIMITED LOT COVERAGE
• BUILDING SETBACK = 0 FT
SPRINGFIELD MOTORS
MIXED USE MASS TIMBER DEVELOPMENT
702 NORTH A STREET, SPRINGFIELD, OR 97477
DATE: 10/19/2020
PAGE: 30F19 SITEWORKS
DESIGN I BUILD
SITE MASSING DIAGRAM
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PHASE 1
7 STORIES RESIDENTIAL TYPE IV -C: 63,980 SF
1 STORY COMMERCIAL TYPE IV -C: 9,020 SF
TOTAL 73,000 SF
85FT BUILDING HEIGHT
(MASS TIMBER CONSTRUCTION)
84 TOTAL RESIDENTIAL UNITS
49 ONE BEDROOM UNITS
28 TWO BEDROOM UNITS
7 THREE BEDROOM UNITS
PHASE 2
4 STORIES RESIDENTIAL TYPE VA: 62,000 SF
1 STORY COMM. / RES. TYPE IA: 15,900 SF
52FT BUILDING HEIGHT
85 TOTAL RESIDENTIAL UNITS
58 ONE BEDROOM UNITS
23 TWO BEDROOM UNITS
4 THREE BEDROOM UNITS
77,900 SF TOTAL BUILT SF
53,845 SF RESIDENTIAL LEASABLE
6,745 SF COMMERCIAL LEASABLE
12,070 SF COMMON AREA/ CIRCULATION
5,240 SF ROOF DECK AREA
SPRINGFIELD MOTORS
MIXED USE MASS TIMBER DEVELOPMENT
702 NORTH A STREET, SPRINGFIELD, OR 97477
DATE: 10/19/2020
PAGE: 50F19 SITEWORKS
DESIGN I BUILD
PHASE 1 - SITE DIAGRAM & MASSING
r
B STREET
I
PROPOS- ---- -- --- --------
NOT TO SCAL
A STREET
1
PHASE 1H
HISTORIC DEALERSHIP
RENOVATION TO
RESTAURANT/ BREWERY
PHASE 1A
PROPOSED 7 STORY
DEVELOPMENT
Attachment 2 Page 12 of 19
EXIS I INU PUS I UFFlUE
SPRINGFIELD MOTORS
MIXED USE MASS TIMBER DEVELOPMENT
702 NORTH A STREET, SPRINGFIELD, OR 97477
DATE: 10/19/2020
SIITEWORKS
PAGE: 60F19
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PHASE 1 - FLOOR PLANS
1 ST FLOOR PLAN & SITE PLAN
NOT TO SCALE
A STREET
Attachment 2 Page 13 of 19
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EXISTING POST
OFFICE
`4 3 BEDROOM 2 BEDROOM
1,089 SFLr'- 819 SF
BEDROOA
748 SF
1 BEDROOM
1510 SF
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1 BEDROOM - 1 1 BEDROOM
510 SF r --7I X1510 SF
1 B 510 SI ,®1 �� u III /lI I 1 rEDRO
510 S (�-" �� 7 510 SF
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= E �T7 SF O
BEDROOM AMENITY 'r 2 BEDROOM
736 SF 267 SF - 732 SF
2ND - 8TH FLOOR PLAN
NOT TO SCALE
SPRINGFIELD MOTORS
MIXED USE MASS TIMBER DEVELOPMENT
702 NORTH A STREET, SPRINGFIELD, OR 97477
DATE: 10/19/2020
SIITEWORKS
PAGE: 70F19
SPRINGFIELD FEASIBILITY - MASSING
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EXHIBIT A
7 STORIES TYPE IV -C: 63,980 SF
1 STORY TYPE IV -C: 9,020 SF
(MASS TIMBER CONSTRUCTION)
84 RESIDENTIAL UNITS
A
73,000 SF TOTAL BUILT SF
54,425 SF RESIDENTIAL LEASABLE
2,300 SF COMMERCIAL LEASABLE
16,275 SF COMMON AREA / CIRCULATION
4
MASSING 3A
Attachment 2 Page 14 of 19
SPRINGFIELD FEASIBLITY
702 N. A STREET
Spnngfield, OR 97477
2020.06.25
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9 STREET CAR PARKING SPACES
10 STREET CAR PARKING SPACES
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EXISTIN&BUILDING
8,000 SF GROUND FLOOR
CORRIDOR
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210 SF I F
MEP / TRASH /
BIKE / STORAGE
1 5,560 SF
STAIR
200 SF COMMERCIAL
2,300 SF
ELEV
90 SF
LOBBY
460 SF
L
STAIR
200 SF
80' - 6"
10 STREET CAR PARKING SPACES
8 STREET CAR PARKING SPACES
Attachment 2 Page 15 of 19
1" = 40--0"
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SPRINGFIELD FEASIBLITY
702 N. A STREET
Springfield, OR 97477
2020.06.25
--------------------
59 STREET CAR PARKING SPACES
55 PRIVATE CAR PARKING SPACES '
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I 114 TOTAL PARKING SPACES
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I 48 UNITS; 2.38 TOTAL PARKING RATIO ,
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8 STORIES TYPE IV -C '
9,020 SF (NEW) + 8,000 SF (E) _
17,020 SF TOTAL GROUND FLOOR AREA
60% COMMERCIAL REQUIRED
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= 10,212 SF MIN COMMERCIAL SPACE i
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CAR PARKING SPACES
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EXISTIN&BUILDING
8,000 SF GROUND FLOOR
CORRIDOR
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210 SF I F
MEP / TRASH /
BIKE / STORAGE
1 5,560 SF
STAIR
200 SF COMMERCIAL
2,300 SF
ELEV
90 SF
LOBBY
460 SF
L
STAIR
200 SF
80' - 6"
10 STREET CAR PARKING SPACES
8 STREET CAR PARKING SPACES
Attachment 2 Page 15 of 19
1" = 40--0"
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SPRINGFIELD FEASIBLITY
702 N. A STREET
Springfield, OR 97477
2020.06.25
EXHIBIT A
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9,140 TOTAL SF PER FLOOR
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12 UNITS PER FLOOR
84 UNITS ON 7 FLOORS: i
7*7 = 49 ONE BEDROOM UNITS
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4*7 = 28 TWO BEDROOM UNITS
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1 *7 = 7 THREE BEDROOM UNITS
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1,100 SF
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595 SF 280 SF 90 SF 200 SF
SPRING ITY
702 N.
A STREET 702 N. A STREET
3C Spnngfield, OR 97477
1j32" = 1'-0" 2020.06.25
Attachment 2 Page 16 of 19
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EXHIBIT B
BLUE MCKENZIE APARTMENTS LLC PROJECT BUDGET, TASKS, & TIMELINE
Project Budget — Predevelopment & Acquisition Loan
Predevelopment Activity
Amount
Development Management
$409,000
Architectural Design
$739,250
Structural Engineering
$116,250
Civil Engineering
$31,500
Mechanical Engineering
$148,600
Surveying & Geotechnical
$17,000
Cost Estimating
$75,000
Loan Fee
$20,000
Contingency
$43,400
Predevelopment Total
$1,600,000
Acquisition Activity
Amount
Property Acquisition
$400,000
Acquisition Total
$400,000
LOAN TOTAL
$2,000,000
Project Tasks & Timeline
The Project timeline is intended to inform estimated timing and relationship of tasks and
predevelopment phases to be funded during the initial pre -development and property acquisition loan
($2M) phase. SEDA will disburse loan funds to Owner on a monthly basis according to the
Predevelopment & Acquisition Loan Agreement.
1. Property Acquisition. Owner will acquire fee simple title to the Property no later than June 30,
2021.
2. Survey & Geotechnical. Owner will complete surveying and geotechnical work needed to
complete the schematic design in four to six weeks, no later than June 30, 2021.
Development of Project Concept and Scope. Owner agrees to refine the Project concept and
scope for a mixed-use development that is consistent with the following attributes
("Schematic Design"): (a) eight -story mixed-use building; (b) seven stories of market rate
residential development providing approximately 84 units; (c) approximately 5,000 square
feet of ground floor commercial retail; and (c) CLT construction. Owner's Conceptual Design
will include at least the following: (i) a site plan that shows the location of the structure,
streets, any parking areas and open spaces; (ii) a program showing all proposed uses for the
Project; (iii) the location of uses within the Project; (iv) the approximate square footage of
each use; (v) building envelopes that show the approximate scale and massing of the
proposed buildings; and (vi) illustrative sketches depicting the character of the overall Project,
Page 1 of 2
Attachment 2 Page 17 of 19
including public spaces. SEDA will have the right to review and approve or disapprove of the
Schematic Design, which approval shall not be unreasonably withheld. The Schematic Design
will be completed within 12 weeks of Survey no later than September 1, 2021.
4. Schematic Design. Owner will prepare schematic level architectural design drawings
('Schematic Design's and engineering drawings and specifications of the Project, which shall
be consistent with the Conceptual Design approved by SEDA. The drawings will include a site
plan, floor plans, elevation views and renderings, and SEDA will have the right to review and
approve or disapprove of the Schematic Design, which approval shall not be unreasonably
withheld. Upon completion of Schematic Design, Owner will prepare and provide to SEDA a
preliminary cost estimate and construction schedule for the Project, which cost estimate and
schedule shall be subject to SEDA's review and approval. Owner will provide SEDA with the
Schematic Design for review no later than [date 12 -weeks out].
5. Design Development Drawings and Specifications. Owner will prepare the design development
level architectural and engineering drawings and specifications of the structures ("Design
Development Drawings'. The dimensioned drawings, details and the specifications will be
sufficiently detailed to allow subcontractor pricing and for the contractor to prepare cost
estimates, a schedule, construction contract, and to obtain a building permit. SEDA will have
the right to review and approve or disapprove of the 50% and 90% Design Development
Drawings, which approval shall not be unreasonably withheld. Upon completion of Design
Development Drawings, Owner will prepare and provide to SEDA an updated cost estimate
and construction schedule for the Project, which updated cost estimate and schedule shall be
subject to SEDA's reasonable review and approval.
6. Construction Documents. Owner will prepare construction documents for the Project sufficient
to allow the City to review and issue a building permit for all vertical construction other than
site work ("Construction Documents"). SEDA will have the right to review and approve or
disapprove of 50% and 100% Construction Documents, which approval shall not be
unreasonably withheld. The 50% Construction Documents must be provided to SEDA no later
than and the 100% Construction Documents must be provided to SEDA no later than March 1,
2022.
7. Final Cost Estimate. Upon completion of Construction Documents and no later than May 15,
2022, Owner will prepare and provide to SEDA an updated cost estimate and construction
schedule for the Project, which updated cost estimate and schedules shall be subject to
SEDA's reasonable review and approval. After completion of a competitive subcontractor bid
process for the construction of the Project, Owner shall provide to SEDA an updated project
budget and timeline. The final project budget and timeline is subject to reasonable review
and approval by the SEDA.
Page 2of2
Attachment 2 Page 18 of 19
Steps At set-up of this form, please complete steps below for pre -development phases
1 List Contractors in Column C
2 Insert Estimated Total Budget by Task in Column G
Do Not Modify Column L
Prime Hours Sub Fixed Costs Total Estimated Total Spent By End Total Spent Total Spent to Percent Task Percent of Total Task
Attachment 2 Page 19 of 19