HomeMy WebLinkAbout5.611 Original Contract
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City of Port Angeles
Conference Center/Hotel Development Project
Preferred Proposal Due Diligence Phase
Letter of Intent
The City of Port Angeles hereby formally identifies the Ehm Architecture Proposal for the Holiday
at the Pier Port Angeles Conference Center Facilitv as the "preferred proposal" and expresses the
City's intent to enter into a "due diligence review phase" with Ehm Architecture.
The City of Port Angeles has sought proposals from developers interested in a public/private
partnership toward the construction and operation of a conference center and/or hotel-conference
facility in the vicinity of the downtown waterfront. To facilitate the development of a conferencing
facility, the City is offering to contribute from the City's lodging tax revenues $100,000 per year for
twenty years to acquire an ownership interest in the property.
A. The duration of the "due diligence review phase" shall be 45-business days from receipt of
this Letter ofIntent but shall not exceed 5:00 pm. Friday AprilS. 2002, without the written
consent of the City of Port Angeles.
B During the "due diligence review phase", Ehm Architecture shall be responsible for
accomplishing the following:
1. Substantial Progress on the Pre-Design of the Building Structure(s) and Site
Improvements, which is acceptable to the City and which shall include substantial
descriptions of.
(a) interior and exterior design and finishes to assure high quality
(b) provisions for parking in accordance with City regulations
(c) preservation of public access to the current Waterfront Trail
(d) any other onsite or off site improvements necessary to meet anticipated
permitting requirements
(e) the option of building the conference center as a separate structure.
2. Provision of a Business Plan Document acceptable to the City.
3. Provision of a Marketing Plan. Budget and Implementation Strategy, which
supports the Business Plan and which is acceptable to the City.
4. Successful Property Acquisition/Lease Negotiations with the
(a) the Port of Port Angeles
(b) the W A State Dept of Natural Resources
(c) any other property owner for the acquisition and/or lease of Oak Street
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Development Site and any other necessary properties.
5. Documented evidence that all Sources of Project Financing are available.
6. Provision of a Project Development Schedule
(a) permitting
(b) construction
7. Development of terms for a long term lease by the City of the conferencing
facility, with a lease-back or other operating agreement with the Developer for
marketing and operation of the conferencing facility consistent with a viable
marketing/operation plan.
The City's total payment obligations to the Developer under the agreement cannot
exceed $100,000 per year. The proposed terms should be discussed with the City
during the 45-day review period. Suggested basic terms for the lease/lease-back
agreement( s) include: 20-year term (subject to termination of the lease and lease-back
if the conferencing center is not operated according to the agreed upon standards, no
liability to the City for operation of the conferencing center, no assignment of the
lease-back (or operating agreement) without the City's consent, option to renew at
the end of the lease, option to purchase the facility at the end of the lease, etc.
C During the "due diligence review phase", the following persons shall be the respective points
of contact between the City of Port Angeles and Ehm Architecture:
Timothy J. Smith, Economic Development Director
City of Port Angeles
Randal Jay Ehm AlA, Architect
President / CEO
Ehm Architecture
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City of Port geles
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