1100 CORNWALL INFO HANDOUT

Bellingham Public Development Authority

www.bellinghampda.org

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1100 Cornwall Strategic Considerations for 2012 BPDA Downtown & Old Town Projects

1. Assemble vacant parcels to complete infill of block with mixed-use development.

2. Scale and style of development compatible with existing buildings.

3. Earliest possible development of vacant lots in the block compatible with existing zoning, adding property to tax rolls.

4. Recover past City Investment with sale and public revenue generated from development, while minimizing or avoiding need for additional City Investment in the development.

5. Provide funding source to support pre-development work on other priority sites in the environs, without additional City budget appropriations.

Focus on strategic, central parking structure to increase future parking capacity in Downtown, Old Town and Waterfront Districts.

1100 Cornwall Parcel Assemblage

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CCS Parcel 0.24 acBPDA Parcel 0.71 acCombined 0.95 ac

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Negotiated Sale Process

02/15/2011 CCS expression of interest.

04/05/2011 BPDA Board resolution authorizing negotiated sale process (*)

04/11/2011 City Council approval of negotiated sale process (*)

06/09/2011 CCS letter of intent.

07/24/2011 Fair market value appraisal ($1,180,000) completed.

10/18/2011 BPDA Board approval of Purchase & Sale Agreement, Development Agreement (*)

12/05/2011 City Council ratification of Purchase & Sale Agreement, Development Agreement.Commencement of Buyer’s six month Inspection Period (*)

04/23/2012 City Council approval of amendment to Development Agreement re. commencement ofconstruction (*)

07/03/2012 Closing.

(*) 5 noticed public meetings.

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1100 Cornwall Sale & Cost Recovery• Sale to CCS closed July 3, 2012.

• Sources of Recovery of City Investment:

Increases to City Investment Purchase Price $1,535,600 (Dec 2008)

Capital Improvements $10,000 Ownership/Holding Costs $356,500 (Prorated BPDA 2008-2012)

Projected City Investment at end of 2012 $1,902,100

Reductions to City InvestmentDirect Benefits: Proceeds from Sale $1,180,000

Indirect Benefits: Net City Revenue From Development $1,329,200 (Discounted NPV, 30 yrs, 5% disc.)

Total Reductions $2,509,200

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Net City Investment +$607,100 (positive return on equity, IRR)

Key assumptions:1. Build-out capital value of project est. at $20,000,000. Public-private (third party) capital leveraging @ 1:10.52. Construction commencement in 2-years from sale, build-out completed 5-6 years from sale.3. Downtown multi-family residential tax property tax exemptions applied, 12 years.

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Excerpts from 12.05.11 CCS-BPDA 1100 Cornwall Development Agreement

Recitals (D.)

Developer is the owner of other parcels in proximity to the Property upon which Developer has developed and operates mixed use buildings. Developer also owns a certain vacant property (the “CCS Property”) contiguous to the BPDA Property. Developer desires to acquire the Property for purposes of developing an additional mixed use development project on the Property and the CCS Property. Developer intends to develop the Property and the CCS Property in two or more phases. The first phase is intended to consist of an approximately 40-unit housing complex serving low-income senior citizens and will be constructed on the CCS Property (the “Phase One Project”). The second phase is intended to consist of a mixed use development intended to contain a residential affordable workforce housing component, a commercial component and associated parking and will be constructed on the Property (the “Phase Two Project”).

Section 2.1.2 Cooperation on Development and Parking

Developer and BPDA agree that, to the extent practicable as reasonably determined by the Developer, Developer will endeavor to incorporate energy and resource conservation measures in the design and construction of the Project. The build-out of the Project may be undertaken in phases as reasonably determined appropriate by the Developer and approved by the City. Further, Developer agrees that, to the extent practicable as reasonably determined by the Developer, parking facilities that provide parking in excess of the parking required under applicable Legal Requirements for Improvements then constructed shall be made accessible to the general public for off-hours use, shared use, or on a reserved basis at rates reasonably established by Developer. The scale of the Improvements will be generally consistent with the scale of the improvements and development in the vicinity of the Project.