BURA BILL. Beaverton Urban Redevelopment Agency BUDGET IMPACT
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- Bartholomew Hood
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1 II 11. BURA BILL Beavertn Urban Redevelpment Agency Beavertn (\ 1) '" Authrize the BURA Executive Directr t Enter int a Sublease fr a Prtin SUBJECT: f Tax lt 1S116AAOOSOO SW Beaverdam Rad and Authrize a Transfer f Apprpriatin Reslutin t Prvide $4,2 fr the lease Payments FOR AGENDA OF: January 23, 218 BURA BILL NO: DATE SUBMITTED: January 18, 218 BURA EXECUTIVE DIRECTOR: PROCEEDING: New Business CLEARANCES: Legal Cunsel Treasurer EXHIBITS: Develpment 1. Transfer f Apprpriatin Reslutin 2. Existing Cnditin Image & Vicinity Map 3. Prpsed Sublease Term Sheet BUDGET IMPACT Expenditure Amunt: $4,2 Amunt Budgeted: $-- Apprpriatin Required: $4,2* *Accunt Number BURA General Fund - Rents and Leases Accunt. The request fr a $4,2 apprpriatin is available frm the BURA General Fund's Cntingency Accunt which has a FY Adpted Budget amunt f $3,849,39, RECOMMENDATION: 1) Authrize the Beavertn Urban Redevelpment Agency ("BURA") Executive Directr t enter int a sublease based n the terms stated in the attached Term Sheet (Exhibit 3) fr the nrthern prtin f the prperty ttaling apprximately 1,875 square feet (as illustrated in Exhibit 2) lcated at SW Beaverdam Rad (Tax Lt 1S116AAOOSOO) and 2) adpt a Reslutin authrizing the transfer f apprpriatin (Exhibit 1). HISTORICAL PERSPECTIVE: Current effrts are underway t remve blight and increase vitality in the Beaverdam area including a City grant leading t the develpment f the BG Fd Cartel and BURA's recent acquisitin f 1.43 acres alng SW Beaverdam Rad. The prperty is lcated directly between these tw sites and is zned Reginal Center - Transit Oriented (RC-TO) and is part f the Transit-Oriented Subzne f the Central Beavertn Urban Renewal District (the "District"). Discussins are in prgress with the prperty wner under an Exclusive Negtiatin Agreement fr the acquisitin f this parcel. In the meantime, in an effrt t cntinue imprvement f the BURA Bill N: 218-5
2 area and the Millikan Way frntage, staff prpses entering int a sublease fr the Millikan-frnting prtin f the site t help fster near term change. INFORMATION FOR CONSIDERATION: This nrthern prtin f the prperty is integral t the transfrmatin f the face f Millikan acting as the link between the new Fd Cart Pd and BURA's recently acquired prperty. An interdepartmental team is develping strategic placemaking plans fr this site and the brader area. Sme f the prpsed elements f the term sheet fr the lease include: $1,5 mnthly payments fr up t ne year, which may be extended fr ne year. Future prperty acquisitin will be structured with payments ver multiple years. The current tenant has requested t license ne f the ffice spaces BURA recently acquired prviding additinal revenue f $25 per mnth. BURA intends t imprve the appearance f the subleased Prperty, which may include adding imprvements such as thse belw. Grant funds and partnerships will be sught t mitigate BURA csts. Mving the fenceline back ff f Millikan Way t create space alng the sidewalk/street Temprary uses Bike parking Public seating Demnstratin prjects Artistic displays and installatins Active uses If the BURA Bard apprves this agenda bill, the Executive Directr will sign a sublease in line with the terms f the attached Term Sheet, withut requiring further BURA Bard actin, taking effect March 1, 218, and expiring within a year r upn purchase f the prperty, whichever is first. BURA Bill N: 218-5
3 RESOLUTION NO EXHIBIT._l_' _ A RESOLUTION APPROVING TRANSFER OF APPROPRIATION WITHIN THE GENERAL FUND OF THE BEAVERTON URBAN REDEVELOPMENT AGENCY DURING THE FISCAL YEAR BUDGET YEAR AND APPROVING THE APPROPRIATIONS FOR THE FUND WHEREAS, the BURA Bard reviews and apprves the annual budget; and, WHEREAS, during the year the BURA Bard must authrize the transfers f apprpriatins frm ne categry f a fund t anther fund r frm categries within a fund; and, WHEREAS, an apprpriatin is requested in the Materials and Services Categry's Rents and Leases Accunt Number 551 fr the mnthly sublease payments n the prperty lcated at SW Beaverdam Rad thrugh the end f the fiscal year and the expenditure apprpriatin is available frm the BURA Cntingency-accunt; nw therefre, BE IT RESOLVED BY THE BEAVERTON URBAN REDEVELOPMENT AGENCY BOARD: Sectin 1. The Treasurer is hereby authrized and instructed t transfer the fllwing apprpriatins in the BURA General Fund fr FY as fllws: Material and Services Categry: BURA Cntingency - Unreserved Rents and Leases Expense <$4,2> $4,2 Apprved by the BURA Bard this day f 218. Apprved by the BURA Chair this day f 218. Ayes: Nays: ATIEST: APPROVED: Catherine Jansen, BURA Recrding Secretary BURA CHAIR Reslutin N BURA Bill N: 218-5
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6 PROPOSED LEASE AREA (IN GRE EN) COB Bulldlng.,a.ns.nd site plan grund lease '!El BUILDING Exhibit < a: < a: w > < UJ c. : APKREQ.ACCf.Ss_ SH ARCO SS ' Prpased new, ranee Ima rr 1Nrth Bund CHA.Nl1 f-r " - r \.).. <'... ::::! SITE PLAN ".. lfl IT,. IE! BUILQING!El BUILDING f I I I I
7 ',,/_ Beavertn EXHIBIT January_, 218 Rn White BESThq, LLC SW Beaverdam Rad Beavertn, OR 975 RE: Lease Term Sheet fr the nrthern prtin f SW Beaverdam Rd. Dear Mr. White: Pursuant t the existing Exclusive Negtiatin Agreement between Adelphs Hldings, LLC ("Adelphs") and the Beavertn Urban Redevelpment Agency (BURA), BURA desires t acquire the prperties lcated at SW Beaverdam Rad and SW Canyn Rad ("Entire Prperty"). Adelphs and BESThq, LLC ("BESThq") are entities with shared member(s), including yurself. BESThq has leased the Entire Prperty frm Adelphs. Prir t acquisitin f the Entire Prperty, in an effrt t help imprve the Beaverdam area, BURA prpses the fllwing shrt-term grund sublease terms t BESThq, which will becme binding nly if 1) ytj agree, 2) the BURA Bard apprves, and 3) the parties execute a written grund sublease agreement. The prpsed sublease is intended t be an interim measure prir t acquisitin. 1. Prperty. The prperty t be subleased ("Subleased Prperty") cnsists f the nrthern apprximately 1,875 square feet f the Entire Prperty, as depicted in the attached graphic. BURA intends t pursue due diligence t investigate purchase f the Entire Prperty. 2. Lease Rate Price. $1,5 per mnth. 3. Term. One year, with autmatic terminatin in the event f BURA acquisitin f the Entire Prperty. 4. Sublessr. BESThq. 5. Sublessee. BURA. 6. Frm f Agreement. Grund sublease. -5- City f Beavertn SW Millikan Way PO Bx 4755 Beavertn, OR
8 BESThq January_, 218 Page 2 f 5 7. Pest Slutins Strage. BURA agrees t license Suite E, lcated at 1275 SW Beaverdam Rd, t Pest Slutins, LLC (a BESThq subtenant) fr $25 per mnth. Full terms f that license shall be stated in a separate agreement between BURA and Pest Slutins, LLC. 8. Exterir Strage. N exterir strage shall be allwed n the Entire Prperty, except fr vehicles related t business peratrs at BESThq. 9. Structured Sale. Based n current discussins between the parties, any future sale f the Entire Prperty may be dcumented with a purchase and sale agreement, a deed f trust, and a prmissry nte financed by Adelphs. The nte may prvide fr annual payments based n an agreed schedule. 1. Exclusive Negtiatin Agreement. The current Exclusive Negtiatin Agreement ("ENA") expires n May 14, 218. If necessary fr the parties t cmplete and execute the purchase and sale agreement, the expiratin date f the ENA will be extended at n cst. Entering int the grund sublease will have n effect n the terms f the ENA. 11. Brker. BURA des nt intend t use a brker. BURA will be respnsible fr any brkers' fees, shuld it decide later t use ne. Adelphs's brker, if utilized, will be cmpensated by Adelphs. 12. Lease Cmmencement Date. BURA will take immediate pssessin f the Subleased Prperty n the Lease Cmmencement Date. The prpsed Lease Cmmencement Date is 3 days after BURA 's apprval f the Lease r March 1, 218, whichever is later. 13. Prperty Taxes. BESThq and/r Adelphs will be respnsible fr prperty taxes. 14. Insurance. Fr the perid f this agreement, City f Beavertn shall btain and keep in place general liability insurance in the amunt f at least $1,, per ccurrence and $2,, in the aggregate and shall name Besthq and Aldelphs as additinal insureds. 15. Cnditin f Prperty. Prir t sublease executin, the site will be cleared f all persnal prperty and debris. The Subleased Prperty and any imprvements n the Subleased Prperty will cntinue t be maintained in gd cnditin by BURA. 16. Access t the Subleased Prperty. BURA intends t encurage public access and use f the Subleased Prperty, and BESThq agrees t this use. 17. Apprvals. The BURA Bard must authrize this transactin. BURA Bard authrizatin entails the exercise f BURA discretin and is nt necessarily assured. -6-
9 BESThq January_, 218 Page 3 f Sublease. BURA has the right t assign its interest, in whle r in part, including all rights and bligatins under the ENA and sublease. 19. Utilities. Nne t be prvided by BESThq. BURA may, at its sle cst, btain utility access if desired_,_ 2. Imprvements. BURA intends t imprve the appearance f the Subleased Prperty, which may include adding imprvements such as the fllwing: Mving the fence line back ff f Millikan t create space alng the sidewalk I street Bike parking Public seating Demnstratin prjects Temprary uses Artistic displays and installatins Active uses The imprvements described abve will be allwed by BESThq and Adelphs, yet shall be submitted t Besthq fr review prir t wrk. BURA will be respnsible fr any and all csts assciated with imprvements. Imprvements nt described abve require written apprval frm BESThq, which apprval will nt be unreasnably withheld. 21. Extensin f Lease. BURA has the right t extend this sublease fr an additinal year, in its sle discretin. If these terms are agreeable, please sign and date this letter in the space prvided belw and return the executed letter t: Peter Livingstn Assistant City Attrney City f Beavertn SW Millikan Way Beavertn, OR Please direct any questins t Janiene Lambert, Senir Develpment Prject Manager, at r by at jlambert@beavertnregn.gv. Sincerely, Cheryl Twete BURA Executive Directr -7-
10 BESThq January_, 218 Page 4 f 5 Apprved as t frm: City Attrney This letter agreement is effective as f the date a persn with authrity t sign n behalf f BESThq has signed belw. Agreed t by: Rn White, BESThq Attachment: Sublease Area Map -8-
11 BESThq January _, 218 Page 5 f 5 Exhibit A Sublease Area Map Cl lulldltg... - lite plm gund -!El BUILDING Exhibit RE ' a: < a: w > < w ID IEI BUIL QING SITE PLAN t - IEI BUILQfNG PAA!CIHQ $ PACfS W'fflN AUF EW!NQ I -9-
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