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• <br /> CM OF REQUEST FOR EDA CONSIDERATION Agenda Section <br /> STAFF REPORT Report Number: ®—/g0/�1S <br /> O lU1 NDS Report Date: 9/26/96 <br /> filWO) , <br /> RK SESSION MEETING DATE <br /> Eve September 30. 1996 <br /> vies=•Partnevsk <br /> 4 <br /> Item Description: Discussion of the Status of Bel-Rae Development and V.B. Digs <br /> Administrator's Review/Recommendation: <br /> -No Comments to supplement this report <br /> -Comments attached. <br /> Explanation/Summary(attach supplement sheets as necessary) <br /> Summary: <br /> Chuck, Mary and I met with V.B. Digs this week to discuss their progress on securing financing and <br /> their continued interest in working with the City regarding a Volleyball Complex as part of the Bel- <br /> Rae redevelopment. <br /> V.B. Digs discussed the project with Western Bank about a month ago. Western Bank provided <br /> feedback to V.B. Digs regarding a stronger financial position prior to considering their request before <br /> a review board and hence issuing a commitment letter. Some of the suggestions included further <br /> market data to substantiate revenue projections, increasing the equity investment and gaining lease <br /> . agreements. V.B. Digs has had success in increasing the equity investment from $100,000 to over <br /> $300,000 which show a stronger commitment to the project. In addition,they have been able to <br /> gather additional market studies to support the projected revenue. Unfortunately, they are unable to <br /> gain leases on a building arrangement with so many uncertainties. Therefore, they are looking for <br /> some direction from Council regarding continued involvement with the redevelopment of the project. <br /> Their desire is to have a combined building with the City on a smaller scale from what has been <br /> proposed by WAI Continuum. They will build and finance four volleyball courts with second story <br /> office space and shared parking arrangements. In addition, they would be willing to finance and <br /> construct an additional gym which would be used by the City. The City could either assist with the <br /> development of the gym through a pay-as-you-go agreement or lease arrangement. In each case,the <br /> City would set controls on usage of the gym through a development agreement and\or other <br /> contractual arrangement. Also, the City could include a clause that they would secure ownership of <br /> the gym over a period of time. V.B. Digs would administer the gym with an arrangement to use the <br /> additional space for larger tournaments. These details would be arranged in advance between the <br /> Parks & Recreation Department and V.B. Digs. <br /> 06116 ..e./Ylivalcofr <br /> Economic bevelopment Coordinator <br /> i <br />