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ECONOMIC AND URBAN DEVELOPMENT MEMORANDUM <br /> No. OS-119 <br /> June 15, 2005 <br /> TO: Mayor Paul Osborne and City Council Members <br /> FROM: Steve Garman, City Manager m� m <br /> Dane C. Bragg,Assistant City Manager� <br /> SUBJECT: Limited Guaranty—Wabash Crossing <br /> SUMMARY RECOMMENDATION: Staff recommends approval of the attached <br /> limited guaranty for pre-development expenses related to engineering and site <br /> development of the Phase II and Phase III areas of Wabash Crossing. <br /> The proposed guaranty provides for payment of approved pre-development expenses <br /> during the pre-construction period. The guaranty does not obligate the City beyond its <br /> $10.3 million infrastructure commitment as approved in the Phase II and Phase III three <br /> party agreement. <br /> BACKGROUND: HOPE VI projects provide for the developer to be covered far � <br /> certain pre-development expenses. DHA will have a similar pre-development advance to <br /> the developer for the design of the rental units. <br /> POTENTIAL OBJECTION: N/A. <br /> INPUT FROM OTHER SOURCES: The agreement has been reviewed by DHA and <br /> East Lake sta.ff as well as appropriate legal counsel. <br /> STAFF REFERENCE: Any additional questions may be forwarded to Dane Bragg at <br /> 424-2727 or dbrag�(c�decaturnet.org. <br /> BUDGET/TIME IMPLICATIONS: Obligations of the guaranty will be tied only to <br /> the Section 108 loan and the Near North Redevelopment TIF district and will not be a <br /> general obligation of the City. <br />