City of Brea COUNCIL COMMUNICATION

Transcription

1 City of Brea COUNCIL COMMUNICATION Agenda Item. TO: FROM: Honorable Mayor and City Council Members City Manager DATE: 06/16/2015 SUBJECT: CONSIDERATION OF BREA DOWNTOWN SUPERBLOCK PARKING STRUCTURE RECOMMENDATION Staff recommends that the City Council: Receive staff s presentation and discuss parking structure design and funding options; Identify funding for the parking structure project; and Direct staff to commence the work program Initiating Option 2, parking only Direct staff to verify information provided for Option 3 and return to Council within 45 days. BACKGROUND/DISCUSSION At its meeting of April 15, 2015, the Council directed staff to work with our consultants and confirm cost and schedule estimates received from the Downtown Owners Group regarding the proposed parking structure design concept. Additionally, the Council requested staff to prepare information regarding funding options available to finance a new parking structure. Finally, several Council Members expressed continued interest to understand options for a parking structure including other uses, the primary use being housing. Staff understand the Council to be clear in its commitment to a new parking structure, in some form, in Brea Downtown. The Council has expressed and acknowledged the value of Brea Downtown and the need to continue to invest and commit to ensure the future vitality, as the Downtown continues to evolve and develop over time. Parking in the Downtown History: When the Downtown was developed, the City built two parking structures on City-owned land to support the uses and provide the needed parking to ensure visitors to the Downtown had accessible, convenient parking. After a few years, the City received criticism regarding parking. One point was the west end

2 parking structure was not as accessible to support the uses on the east side of Brea Boulevard (the Superblocks). Another point made was the Brea Boulevard parking structure had no active, commercial or residential uses on its ground floor fronting the streets and only offered parking; this was seen as a missed opportunity. Taking cues from this input, the City set out to determine options for the City s parcel on Brea Boulevard to consider new parking in the Downtown that would support the Superblock businesses and further activate Downtown. In 2009, the City Council/Redevelopment Agency, pursued a parking structure design including 15,000 sq. ft. of commercial space along Birch Street. The dissolution of Redevelopment and subsequent State take-away of funding earmarked for this project stalled that effort to the present day. Although funding has been a challenge, the discussion around the parking garage has continued. Other input for improving the Downtown includes the idea that the Downtown can benefit from adding more residential population to help establish a more complete 24 hour environment. Also, since the Downtown has been growing more in entertainment uses, a need for added trash facilities has been identified, especially for businesses on the east side of Brea Boulevard. In early 2014, Downtown property owners Dwight Manley and Mark Caplow brought an evolved garage concept for the City Council to consider. They impressed on the Council the need for a parking structure to be realized as quickly as possible. They shared the growing concern for parking available to support the business on Brea Boulevard and their desire to support additional entertainment uses on Super Blocks 1 and 2. During the discussion, a concept plan was shared with the Council that offered four levels of above ground parking. At the conclusion of the discussion, the City Council directed staff to: Validate the cost estimate and timing of the proposal Review the design for a parking only solution and provide other potential options for what the final form of the structure should be (e.g. parking alone, parking with housing, parking with commercial, or a combination) Provide funding sources for consideration DISCUSSION Staff provided two options; Downtown Owner s Group garage only design concept and the City s original garage and commercial design concept as well as cost estimates, and schedules to the City s consultants, Griffin Structures and its sub-consultants, International Parking Design (IPD) and Bomel Construction. The Griffin team has reviewed this information and a memorandum containing their findings is attached as Exhibit A. A summary is provided below. Option 1: City s Original Parking Garage and Commercial Concept This project provides for a four level design for parking, includes 15,000 sq. ft. of commercial space, and realizes 444 parking spaces (net gain 266 stalls). The updated cost of this parking structure is now estimated to be $12,702,000. Scheduling for completion is estimated at 24 months.

3 Option 2: Downtown Owners Garage Only Concept This design provides a four level garage and will provide 485 parking spaces (net gain 307 stalls). The Griffin team s final cost estimate is $12,625,000. This cost estimate includes all anticipated needs and contingencies as they are known today, including site testing and preparation, utility relocation work, parking count system, and a 10% contingency for unknown costs that may be encountered. The schedule to complete this project, is estimated to be 24 months. As mentioned earlier, the City has maintained an interest in ensuring that any future development on City property in the Downtown supports the Downtown businesses as well as responds to the needs and values shared by the community for realizing the general goals identified in the General Plan, such as furthering housing opportunities in Brea Downtown, ensuring economic vitality and diversity, and providing workforce housing near places of business. To ensure the Council has as much information as possible at this time to make an informed decision for the future development of the City s property on Brea Boulevard, additional design concepts were explored. Staff has sought concepts from an affordable housing developer, Jamboree Housing, as well as a market rate housing developer, Beard Development, to provide additional options for Council discussion and consideration. Parking garage/housing/commercial space concepts from both Jamboree Housing and Beard Development are attached as Exhibits B and C to this report. Based on Council s direction, these two options need to include a minimum net new parking inventory of approximately 300 stalls for Brea Downtown and other uses that support goals of the City s General Plan, such as housing opportunities. In addition, given funding challenges to realize a new parking structure any creative financing solutions could be welcome for consideration. The information below outlines the main features of the concepts received from Jamboree Housing and Beard Development. Option 3: Jamboree Housing Jamboree Housing is a leader in the construction of quality affordable housing around the County and State. They have consistently been a valuable and performing partner with the City of Brea to realize affordable housing goals in our City. Jamboree Housing has been recognized for award winning affordable housing projects within the City of Brea including the Bonterra Apartments at the Blackstone Community and Birch Hills Apartments at the Birch Hills Golf Course. Prior to the parking structure discussion, Jamboree representatives had expressed interest in seeking site opportunities in Brea, as well as seeking land to establish a new corporate headquarters for their administrative office operations. Their track record and interests is what prompted staff to contact Jamboree in response to the Council s discussion to explore options for our Downtown parking structure site. Specifics of the Option 3 concept include: Two levels of subterranean and four levels of above ground parking. Total stalls = 615 (net new 315+ stalls) 15,000 sq. ft. of commercial office space on the fifth level of the garage. 40 units of affordable housing 1, 2 and 3 bedroom apartments units. Estimated Total Project Cost = $34.7M Garage Cost = $14.3 M

4 Unfunded costs = $11.5M This concept offers an office component providing the City with additional day-time population in Brea Downtown. It also provides 40 units of affordable housing, including the potential for low and very low options meeting a fundamental and challenging goal of the General Plan. Cost - Importantly for project implementation purposes, the Jamboree concept can be broken into three distinct phases for both construction timing and funding garage, housing, and office. Critically, the garage portion would occur first and if selected is recommended to be a City CIP project as the City will retain ownership. Cost Estimate Office= $2.25M (including $504k of parking garage cost) Residential= $18.16M (including $2.3M of parking garage cost) Garage= $14.3M TOTAL project cost= $34.7M Funding Proposed by Jamboree TOTAL NEED: $34.71M Office= $2.25M sub-total for Office, Jamboree funded Residential = $18.16M $11.44M tax credit equity $645k mortgage $2.8M City land note (Jamboree cost, City land as security)* $3.025M City/Successor Agency Affordable Housing Funds* $244k waived fees *to be paid back to the City over time Garage= $14.3M $2.3M assumed in Residential budget $504k assumed in Office budget $11.5 unfunded gap Cost Comparison to other Options: Option 1 - $12.7M unfunded costs Option 2 - $12.6M unfunded costs Option 3 - $11.5M unfunded costs

5 Timing and schedule In order to provide this information for Council consideration, this proposal has been prepared in concept and while it includes best estimates of costs, like the previous options presented to the City, it will require peer review to ensure all factors have been considered and the data is as accurate as possible. It is anticipated that this option will require more than 24 months to complete. However, if the concept of developing additional uses to parking is of high value to the City Council, a dual-track can be taken to initiate the parking garage, refine the scope, costs and schedule for this option, and make a final determination within an estimated 45 days of this decision. Additionally, it is anticipated that the parking garage in this concept could be initiated without the final funding for the housing component allowing a phased approach to this development reducing any time delay for parking. Option 4: Beard Development Peter Beard is a real estate developer who has designed and constructed projects in Southern California. Mr. Beard s primary pursuits are for in-fill residential projects on often challenging reuse sites. His experience includes the South Walnut Bungalows, which was a very successful rehabilitation/redevelopment residential effort south of Imperial Highway in Brea. Staff s initial discussions with Beard Development focused on a private sector garage project which could include housing or commercial space, or both, with a desire to gain further insights on the economics of such a project from a private investment perspective. Mr. Beard has opted to present a concept based on modifications to a plan explored earlier for the site the residential/commercial/garage concept originally presented by Manley/Fanticola and subsequently withdrawn from consideration. Beard Development s submittal materials are contained within the attached Exhibit C to this report. Specific features of the option 4 design concept include: Two levels of subterranean and four levels of above ground parking. Total stalls = 698 (net new 348 stalls) 82 units of housing apartments Estimated Total Project Cost = $35.15M Unfunded costs = $16.9M Similar to the Option 3 concept, Option 4 would introduce additional residential population to Brea Downtown and achieves the goal for at least 300 net new parking stalls. Cost The materials provided by Beard Development detail a breakdown of anticipated construction costs offset by resulting rents for the residential apartments (see attached Exhibit C). The information is provided in a different format than the prior option, separating direct costs for the components of parking and housing, and combining indirect costs cumulatively. Cost Estimate Residential= $5.7M Garage= $21M Off site improvements= $1.3M

6 Indirect costs= $5M Construction Interest= $2.2M TOTAL project cost = $35.2M Funding Proposed by Beard TOTAL NEED= $35.2M Supported investment= $18.3M Feasibility Gap= $16.9M (anticipated apartment net operating income of $1.1M) Should any of this housing be reserved at affordable levels, the Council could consider use of our Housing funds toward construction of the units. Option 1 - $12.7M unfunded costs Option 2 - $12.6M unfunded costs Option 3 - $11.5M unfunded costs Option 4 - $16.9M unfunded costs Timing and schedule In order to provide this information in time for Council consideration, the Beard proposal has been prepared in concept and while it includes best estimates of time and costs, like the previous options presented to the City, it will require peer review to ensure all factors have been considered and the data is as accurate as possible. Similar to Option 3 it is anticipated that this concept will exceed the 24 month program identified for options 1 & 2 due to the subterranean levels of its design. Design Concept Analysis and Staff Recommendation Analysis Criteria - The Council now has four options for consideration for the City s land in the Downtown. All options include new parking to support the Downtown businesses. Three options include other land uses that have been identified as valuable to the community based on feedback and goals identified in the City s General Plan. Staff has used the Council s directed criteria in our analysis of all options and development of a recommendation. Comparison of Concepts Uses Garage Unfunded Cost Time Option 1 City Parking Garage 444 parking spaces 266 net new spaces 15,000 square feet commercial $12,720, months Option 2 Downtown Owners Garage Only 485 parking spaces 307 net new spaces $12,625, months

7 Option 3 Jamboree Housing 615 parking spaces 315 net new spaces 15,000 square feet commercial 40 affordable housing units $11,500, months ++ Option 3 Jamboree Housing 698 parking spaces 348 parking spaces 82 units $16,900, months ++ Options 2, 3 and 4 meet the Council s direction to achieve a minimum net new 300 parking stalls. Additionally, Option 2 and 3 have been found to be slightly less expensive to build as compared to Option 1. Option 2 does not provide any street facing uses beyond parking. However, Option 2 is recommended for implementation ahead Option 1, based on expressed evaluation criteria. Option 1 offers 15,000 square feet of office space at a cost only $77, higher than Option 2, parking only. Option 1 provides 34 less spaces than the Council s directed 300 net new. Both options 3 & 4 require peer review and vetting to ensure that scope, costs and timing are validated. Each option provided for new housing opportunities Downtown and Option 3 includes additional commercial uses in Downtown as well. Option 3 proposes housing at affordable levels which can meet several additional goals of the City s General Plan Housing Element including providing more workforce housing opportunities in Brea, options for targeting specialty needs for families as well as Veterans in and around needed services and amenities. Option 3 also identifies a variety of available private and public funding, including City and Successor Agency monies limited for use to achieve affordable housing goals. Comparison of timing and schedule As previously mentioned, staff understand the Council s expressed concern for parking structure timing to be fundamentally related to realizing new and expanded uses within Brea Downtown. Most immediately, an application for a new Improv Comedy Club with expanded live entertainment space (e.g. live performance theater) and accompanying restaurants has been submitted and is under review by staff. Staff have discussed the Improv s schedule with project applicant, Dwight Manley, who has expressed a goal for an opening on New Year s Eve, December 31, Given the realities of project review and construction processes and needs plan comments, corrections, meetings, required CEQA studies, Planning Commission public hearing, Planning Commission action, any required City Council hearing (any appeal), etc this is a very aggressive schedule. In staff s professional experience, even with the utmost diligence on the part of the City and Developer, we anticipate the need for schedule modifications will arise. However, if we assume this goal for forecasting purposes and compare it against the parking structure schedule provided for Options 1 & 2, the Improv would be completed 6 months ahead of the parking structure. It is staff s understanding that Improv operators would be willing to open without immediate use of the parking structure, while any construction progresses to completion. Staff has not analyzed the viability of

8 any early opening of an expanded Improv ahead of any parking structure, but it is conceivable that proper management of business operations and parking controls could facilitate such action. Parking review will be a component of the Conditional Use Permit required for the Improv. Less information is known regarding a schedule to achieve the final Option 3 or 4 projects. Any estimates today would be speculative. As previously mentioned, with underground work, it is anticipated that planning and construction work will exceed 24 months. However, a schedule providing for this design may match-up well with a more realistic schedule for the Improv entitlement and construction but again today, this is speculative. Upon direction, staff will work with the Option 3 or 4 teams and our consultants to provide estimated schedules for consideration. Concerns: Any Council consideration of the other uses in the Downtown beyond parking should consider unintended consequences. For example, given a new Improv theater is proposed on the north side of Birch, is it appropriate to introduce housing uses on the south side of this street? Is the proposed unit mix of 1, 2, and 3 bedroom apartment units conducive to a new resident composition envisioned by the Council (e.g. family units, etc.)? These are similar questions and issues that past Planning Commissions and Councils have grappled with regarding the redevelopment of Brea Downtown and attention to design details have carried through to address identified concerns (e.g. noise attenuation, door entrance locations, etc). CEQA The California Environmental Quality Act (CEQA) provides specific guidance regarding the review of potential impacts from planned development. It additionally addresses cumulative impacts which may be realized from cumulative activities with particular emphasis to avoid an incremental approach to the review of projects which may create cumulative impacts. The actions currently under consideration in Brea Downtown a parking structure project and, separately, an expanded Improv theater need tandem consideration and project schedules will benefit from this comprehensive consideration. Staff is already in the process of completing CEQA s Initial Study check list which will identify necessary technical studies needed to proceed on the Improv proposal. These same studies are envisioned to be needed for a parking structure and, with Council project selection, staff can readily incorporate a selected option(s) into one, master, CEQA review. Doing so will not only save time, but cost and provide the necessary, comprehensive review required. Staff Recommendation Staff recommends that the Council identify funding (discussed in next section of this report) and direct staff to advance work to achieve a parking structure based on Options 2 and 3. While this work commences, additional information would need to be gathered and return to Council for a final determination regarding the preferred concept for final design. This information will include securing cost confirmation and a draft schedule to realize the garage component of the Option 3 concept similar to the process just performed for Options 1 & 2. It will also include analysis from the City s consulting economist regarding proposed deal points from Jamboree. This information would then be provided to the Council as quickly as

9 possible for final direction and design concept selection, and is estimated to return to you within 45 days. The initial work effort needed from the City consulting team at Griffin/IPD would allow a dual-track process with initial tasks of drafting the RFP for the Design/Build and to pre-qualify bidders and establish a bidder list benefiting both options. This initial work schedule is for an approximate 3 month period ( Preparation of RFP and Pre-Qualification Phase, see Exhibit A). Staff recommend Council final selection of a design option prior to starting the preparation of bridging documents which will be unique to one design option. This recommendation provides due consideration of a design which can fulfill other goals of the General Plan, as well as conceivably be achieved at a reduced cost to the City. Funding Options Available to the City Council As previously mentioned, Council has directed staff to return possible funding options available for pursuing a parking structure project in Brea Downtown. A discussion of these options together with our recommendations is provided within the attached Exhibit D. Other Questions from the City Council As previously mentioned, staff has received questions from Council Member Parker which can benefit the entire Council in its consideration and deliberation regarding parking structure options. These questions and staff responses are provided within the attached Exhibit E. SUMMARY/FISCAL IMPACT Based on the information available to date, analysis criteria, and pending the Council s direction regarding funding, one parking garage option has been identified among those explored to implement the Option 2 concept. Additionally, one further design option met the Council s criteria for additional consideration Option 3 pending receipt of additional information. A dual-track work program, allowing data gathering and analysis of Option 3 while Option 2 is initiated. This allows final consideration of land use options for the City s property while maintaining the Option 2 schedule. RESPECTFULLY SUBMITTED: Tim O'Donnell, City Manager Prepared by: William Gallardo, Assistant City Manager; Eric Nicoll, Public Works Director; David M. Crabtree, AICP, Community Development Director; Jennifer A. Lilley, AICP, City Planner Exhibit A Exhibit B Exhibit C Attachments

10 Exhibit D Exhibit E

11 REPORT PRESENTED TO THE CITY OF BREA, CALIFORNIA FOR BUDGET AND SCHEDULE OPTIONS NEW DOWNTOWN PARKING STRUCTURE June 1, 2015 GRIFFIN STRUCTURES, INC. 385 SECOND STREET LAGUNA BEACH, CA P F 1 P a g e

12 INTRODUCTION AND SCOPE OF WORK Per Griffin Structures Proposal dated May 26, 2015, the following scope of work was to be included in a report to the City of Brea. Task #1 Review the Guy Yocum & IDG-Parkitects plans for cost and schedule/timing to complete the project. This will include a review of the Guy Yocum budget for design and construction costs to provide an opinion of unit costs and budgetary items based on an assumed accuracy of quantities based on the submitted plans. Task #2 Determine if a 3-Level (ground plus two elevated decks) parking structure can yield an additional net (300) parking stalls. Task #3 Update the construction budget and schedule to construct a 4-Level parking structure per the IPD plans generated in Budget and schedule to be based on including a 15,000 GSF mixed use core and shell that can be used for a combination of commercial and housing. TASK #1 REPORT Guy Yocum Construction Budget Comparison Griffin Structures, Inc. with the assistance of Bomel Construction reviewed the plans and budget prepared by Guy Yocum-IDG/Parkitects. The following summary represents our review and conclusions of the Guy-Yocum Budget: Proposed Parking Structure is a 4-Level, 485 Stall, on-grade structure. Delivery method is Design-Build Construction is to begin in the 2 nd Quarter of 2016 based on a 9 month construction duration It is assumed that prevailing wages are included the budget Total budget is $8,901, Cost per square feet is $53.95 Cost per stall is $18, Griffin Structures and Bomel Construction produced an independent estimate based on the same Guy Yocum-IDG/Parkitects design, assumptions, qualifications, quantities, and units and the following are the results of this independent estimate: Guy Yocum Budget is $8,901, Bomel Budget is $9,802, Variance is $901, or 10% higher Note: This is based on not including Payment/Performance Bonds or Builders Risk Insurance. 2 P a g e

13 Griffin Structures review of the Guy Yocum qualifications and exclusions has identified that Payment and Performance Bonds and Builders Risk Insurance are excluded which will be required for the project. Based on these adjustments the revised budget comparison is the following: Guy Yocum Budget is $9,058, Bomel Budget is $9,975, Variance is $917, or 10% higher Master Schedule for the 4-Level Parking Structure without the 15,000 GSF of Core & Shell Based on the City of Brea proceeding with the IPD conceptual design without the 15,000 GSF of Core & Shell space, Griffin Structures prepared an overall Master Schedule for the project. The Master Schedule is based on the following phases, tasks, and durations. Preparation of RFP and Pre-Qualification Phase 3 Months Complete the RFP and Bridging Documents 3 Months Pre-qualification of Design-Build teams 3 Months Note: Preparation of RFP and Pre-Qualification to be concurrent tasks Issuance of RFP and Selection of Design-Build Contractor 3 Months RFP Response Period 1 months Selection of Design-Build Contractor and Award of Contract 2 Months Design, Plan Check, and Permits 7 Months Design Development and Construction Documents 5 months Plan Check and Permits 2 Months Note: Permits will be phased with Demolition/Grading/Site Utilities being a separate permit followed by the Building Permit being issued as construction is underway on the initial phase of work Construction and Project Close-Out 11 Months Construction Phase 9 months Project Close-Out 2 Months 3 P a g e

14 Master Budget for the 4-Level Parking Structure without 15,000 GSF of Core and Shell COMPONENT VALUE COMMENTS 1 RFQ and PRE-QUALIFICATION PHASE a Architectural & Engineering Services $110,000 Allowance b Updated Geotechnical Reports $10,000 Allowance c Management Services $30,000 Allowance 2 RFP RESPONSE AND AWARD OF CONTRACT PHASE a Architectural & Engineering Services $10,000 Allowance b Management Services $30,000 Allowance 3 DESIGN-BUILD CONTRACT $9,976,000 Based on 4-Level without 15,000 GSF of Core/Shell 4 TESTING AND INSPECTIONS Deputy Soils & Materials Testing Building Inspections $400,000 Allowance based on 4% of Construction value $100,000 Allowance based on 1% of Construction value 5 PROJECT & CONSTRUCTION MANAGEMENT $375,000 Allowance Design, Plan Check, and Permits Construction Phase Administration Incl Incl 6 NEW UTILITIES and RELOCATIONS New SCE Transformer for Parking Structure and Existing Business Reestablishment of Existing Street Light Power Relocation of existing Natural Gas Main and/or Branch Lines New Utility Services to Structure/ (telephone and cable) $250,000 Allowance $25,000 Allowance $10,000 Allowance $25,000 Allowance 7 EQUIPMENT AND FURNISHINGS Parking Control Equipment Misc. Furnishings $200,000 Allowance $25,000 Allowance 8 CITY OF BREA ADMINISTRATION FEES Plan Check and Permit Fees Public Works Inspections $0 City of Brea to provide at no cost to the project $0 City of Brea to provide at no cost to the project 9 CONTINGENCY: CITY OF BREA $1,159,000 Allowance of 10% TOTAL BUDGET $12,625,000 Note: The Design-Build Contract value of $9,976,000 is based on using the Bomel Construction budget of $9,975, rounded up to the nearest $1, P a g e

15 TASK #2 REPORT The City of Brea requested an opinion if a new 3-Level Parking Structure could net a total of 300 additional spaces above what exists on the current surface parking lot. The conclusion is that a 3-Level Parking Structure will not result in a net additional 300 spaces and only a new 4-Level structure will produce the required total new spaces the City of Brea is seeking. A new three level structure would yield approximately 350 parking stalls in the structure and with the total amount displaced from the existing surface lot the City would not gain the net 300 additional spaces it is seeking. TASK #3 REPORT Updated Construction Budget for the IPD 4-Level Parking Structure with 15,000 GSF Core & Shell Proposed Parking Structure is a 4-Level, 470 Stall, with 15,000 GSF Core & Shell Gross Square Footage is 173,000 Delivery method is Design-Build Total budget is $10,046,000 Cost per square feet is $58.07/sf Cost per stall is $21,373/Stall Master Schedule for the IPD 4-Level Parking Structure with 15,000 GSF Core & Shell Based on the City of Brea utilizing the IPD Architects conceptual design with the 15,000 GSF Core & Shell space, Griffin Structures prepared an overall Master Schedule for the project. The Master Schedule is based on the following phases, tasks, and durations. Preparation of RFP and Pre-Qualification Phase 3 Months Prepare RFP and Bridging Documents 3 Months Pre-qualification of Design-Build teams 3 Months Note: Preparation of RFP and Pre-Qualification to be concurrent tasks Issuance of RFP and Selection of Design-Build Contractor 3 Months RFP Response Period 1 months Selection of Design-Build Contractor and Award of Contract 2 Months Design, Plan Check, and Permits 7 Months Design Development and Construction Documents 5 months Plan Check and Permits 2 Months Note: Permits will be phased with Demolition/Grading/Site Utilities being a separate permit followed by the Building Permit being issued as construction is underway on the initial phase of work Construction and Project Close-Out 11 Months Construction Phase 9 months Project Close-Out 2 Months 5 P a g e

16 Master Budget for the IPD 4-Level, 470 Stall Parking Structure with 15,000 Core and Shell COMPONENT VALUE COMMENTS 1 RFQ and PRE-QUALIFICATION PHASE a Architectural & Engineering Services $100,000 Allowance b Updated Geotechnical Reports $10,000 Allowance c Management Services $30,000 Allowance 2 RFP RESPONSE AND AWARD OF CONTRACT PHASE a Architectural & Engineering Services $10,000 Allowance b Management Services $30,000 Allowance 3 DESIGN-BUILD CONTRACT $10,046,000 Based on IPD 4-Level Design 4 TESTING AND INSPECTIONS Deputy Soils & Materials Testing Building Inspections $402,000 Allowance based on 4% of Construction value $100,000 Allowance based on 1% of Construction value 5 PROJECT & CONSTRUCTION MANAGEMENT $375,000 Allowance Design, Plan Check, and Permits Construction Phase Administration Incl Incl 6 NEW UTILITIES and RELOCATIONS New SCE Transformer for Parking Structure and Businesses Reestablishment of Existing Street Light Power Relocation of existing Natural Gas Main and/or Branch Lines New Utility Services to Structure/ (telephone and cable) $250,000 Allowance $25,000 Allowance $10,000 Allowance $25,000 Allowance 7 EQUIPMENT AND FURNISHINGS Parking Control Equipment Misc. Furnishings $200,000 Allowance $25,000 Allowance 8 CITY OF BREA ADMINISTRATION FEES Plan Check and Permit Fees Public Works Inspections $0 City of Brea to provide at no cost to the project $0 City of Brea to provide at no cost to the project 9 CONTINGENCY: CITY OF BREA $1,164,000 Allowance of 10% TOTAL BUDGET $12,702,000 6 P a g e

17 EXECUTIVE SUMMARY- PROJECT DESIGN, BUDGET, AND SCHEDULE Project Description 4-Level, 485 stall parking structure, without 15,000 GSF Core and Shell 4-Level, 470 stall parking structure, with 15,000 GSF Core and Shell Total Budget Schedule from NTP to initiate RFP to Completion of Project $12,625,000 (22) Months from NTP to begin the RFP Documents $12,702,000 (22) Months from NTP to begin the RFP Documents 7 P a g e

18 APPENDIX "A" City of Brea Parking Structure Guy Yocum/Bomel Construction Esitmate Comparison Excluding Payment/Performance Bonds and Builders Risk Insurance 6/1/2015 Guy Yocum Estimate Description Quantity Unit Unit Cost Extension Allowance GY Estimate Bomel Estimate Variance Bomel Clarifications Contracting Requirements Transformer/Primary/Secondary relocation 1 ea $275, $0.00 $275, $275, $300, $25, Recommend Allowance of $300,000 Fire Line & Hydrant Relocation 1 ea $55, $0.00 $55, $55, $55, $0.00 Allowance appears reasonable Offsite Modifications 1 ls $20, $0.00 $20, $20, $20, $0.00 Allowance appears reasonable Large Trash Compactor 1 ls $55, $0.00 $55, $55, $55, $0.00 Allowance appears reasonable Division 1 - General Requirements A/C/L Design Fees 165,000 gsf $2.10 $346, $0.00 $346, $346, $0.00 Budget appears reasonable Structure Design Fees 165,000 gsf $0.60 $99, $0.00 $99, $99, $0.00 Budget appears reasonable Division 2 - Site Construction Traffic Control 4 mo $5, $20, $0.00 $20, $20, $0.00 Budget appears reasonable Demolition 165,000 gsf $1.10 $181, $0.00 $181, $288, $107, Bomel budget is based on 165,000 SF at $1.75/SF Earthwork 13,200 cy $12.00 $158, $0.00 $158, $66, ($92,400.00) Bomel budget is based on 13,200 SF at $5.00/SF Soil Export 1,950 cy $28.00 $54, $0.00 $54, $54, $0.00 Budget appears reasonable Fine Grading 22,400 sf $1.00 $22, $0.00 $22, $22, $0.00 Budget appears reasonable Asphalt 18,400 sf $3.75 $69, $0.00 $69, $69, $0.00 Budget appears reasonable Planter Curbs 795 ls $20.00 $15, $0.00 $15, $15, $0.00 Budget appears reasonable Storm Water System 1 ea $105, $105, $0.00 $105, $105, $0.00 Budget appears reasonable Drywell Storm System 1 ea $65, $65, $0.00 $65, $65, $0.00 Budget appears reasonable Landscaping & Irrigation 50,000 sf $1.00 $0.00 $50, $50, $40, ($10,000.00) Bomel budget is based on 10,000 SF at $4.00/SF Hardscape/Enhanced Paving 0 sf $ $0.00 $0.00 $30, $30, Bomel recommends budget of $30, Division 3 - Concrete Structural Concrete 165,000 gsf $19.51 $3,219, $0.00 $3,219, $3,219, $0.00 Budget appears reasonable Reinforcing Steel 165,000 gsf $9.90 $1,633, $0.00 $1,633, $990, ($643,500.00) Bomel budget is based on 165,000 SF at $6.00/SF Division 4 - Masonry Masonry 5,500 sf $17.00 $93, $0.00 $93, $137, $44, Bomel budget is based on 5,500 SF at $25.00/SF Division 5 - Metals Misc Metals, Expansion Control 165,000 gsf $0.40 $66, $0.00 $66, $66, $0.00 Budget appears reasonable Cable Barrier System 1,400 lf $35.00 $49, $0.00 $49, $49, $0.00 Budget appears reasonable Stairs & Railings 5 sets $12, $60, $0.00 $60, $95, $35, Bomel budget is based on 5 sets at $19,000/set Steel Stud Walls/Drywall/Stucco 5,500 sf $16.00 $0.00 $88, $88, $88, $0.00 Allowance appears reasonable Architectural Metal Screen Façade 5,500 sf $45.00 $0.00 $247, $247, $247, $0.00 Allowance appears reasonable Architectural Metal Screen Entry 3,300 sf $40.00 $0.00 $132, $132, $132, $0.00 Allowance appears reasonable Division 7 - Waterproofing Waterproofing 165,000 gsf $0.05 $8, $0.00 $8, $8, $0.00 Budget appears reasonable Division 8 - Doors & Windows Doors & Hardware 165,000 gsf $0.02 $3, $0.00 $3, $6, $2, Bomel budget is based on (2) doors at $3,000/ea Division 9 - Finishes Paint 165,000 gsf $0.30 $49, $0.00 $49, $49, $0.00 Budget does not include interior columns and soffits Sealed Floors 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable Elastomeric 5,000 sf $1.00 $5, $0.00 $5, $30, $25, Bomel budget is based on 5,000 SF at $6.00/SF Striping 485 stalls $40.00 $19, $0.00 $19, $19, $0.00 Budget appears reasonable Division 10 - Specialties Signage/Fire Extinguishers 165,000 gsf $0.20 $33, $0.00 $33, $33, $0.00 Budget appears reasonable Division 13 - Special Construction Security Access & Surveillance 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable for conduit only Detection & Alarm 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable for conduit only Division 14 - Conveying Systems Elevators/Cab Finishes 4 stops $55, $220, $0.00 $220, $170, ($50,000.00) Bomel budget is based on 4 stops at $42,500/stop Division 15 - Mechanical Fire Line & Hot Tap 1 ea $29, $29, $0.00 $29, $25, ($4,000.00) Budget appears reasonable Fire Sprinklers 165,000 gsf $0.50 $82, $0.00 $82, $82, $0.00 Budget appears reasonable for standpipes only Domestic Water 1 ea $7, $7, $0.00 $7, $7, $0.00 Budget appears reasonable Plumbing 165,000 gsf $0.30 $49, $0.00 $49, $123, $74, Bomel budget is based on 165,000 SF at $0.75/SF Phone Line (Annex) 1 ea $2, $2, $0.00 $2, $2, $0.00 Budget appears reasonable Sewer (Annex) 1 ea $7, $0.00 $7, $7, $7, $0.00 Budget appears reasonable Division 16 - Electrical Electrical Systems 165,000 gsf $1.05 $173, $0.00 $173, $495, $321, Bomel budget is based on 165,000 SF at $3.00/SF Lighting Systems 165,000 gsf $0.80 $132, $0.00 $132, $0.00 ($132,000.00) Lighting System is included in above budget figure Prevailing Wage adjustment - 15% N/A N/A N/A $1,167, $1,167, SUBTOTAL $7,123, $930, $8,053, $8,954, $901, Permits & Fees 1 ea $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Assumes City of Brea does not charge for permits and fees Contingency 1 ea $100, $0.00 $100, $100, $100, $0.00 Budget appears reasonable Payment & Performance Bonds 1 ea $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 General Conditions 9 mo $40, $360, $0.00 $360, $360, $0.00 Budget appears reasonable Insurance - E&O 1 ea $14, $14, $0.00 $14, $14, $0.00 Budget appears reasonable Insurance - Liability 1 ea $34, $34, $0.00 $34, $34, $0.00 Budget appears reasonable Insurace - Builders Risk 1 ea $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Contractor Overhead & Profit 8,500,000 costs 4.00% $340, $0.00 $340, $340, $0.00 Budget appears reasonable Escalation - Based on 2nd QTR 2016 start 1 ls $0.00 $0.00 $0.00 $0.00 $0.00 Budget includes escalation to 2nd QTR of 2016 GY BASE BID GY ALLOWANCES GY TOTAL BOMEL TOTAL VARIANCE Parking Structure Total $7,871,500 $1,030,000 $8,901,500 $9,802,532 $901,032 Guy Yocum Estimate/GSF $53.95 Guy Yocum Estimate/Stall $18, Bomel Estimate/GSF $59.41 Bomel Estimate/Stall $20,211.41

19 APPENDIX "B" City of Brea Parking Structure Guy Yocum/Bomel Construction Esitmate Comparison Including Payment/Performance Bonds and Builders Risk Insurance 6/1/2015 Guy Yocum Estimate Description Quantity Unit Unit Cost Extension Allowance GY Estimate Bomel Estimate Variance Bomel Clarifications Contracting Requirements Transformer/Primary/Secondary relocation 1 ea $275, $0.00 $275, $275, $300, $25, Recommend Allowance of $300,000 Fire Line & Hydrant Relocation 1 ea $55, $0.00 $55, $55, $55, $0.00 Allowance appears reasonable Offsite Modifications 1 ls $20, $0.00 $20, $20, $20, $0.00 Allowance appears reasonable Large Trash Compactor 1 ls $55, $0.00 $55, $55, $55, $0.00 Allowance appears reasonable Division 1 - General Requirements A/C/L Design Fees 165,000 gsf $2.10 $346, $0.00 $346, $346, $0.00 Budget appears reasonable Structure Design Fees 165,000 gsf $0.60 $99, $0.00 $99, $99, $0.00 Budget appears reasonable Division 2 - Site Construction Traffic Control 4 mo $5, $20, $0.00 $20, $20, $0.00 Budget appears reasonable Demolition 165,000 gsf $1.10 $181, $0.00 $181, $288, $107, Bomel budget is based on 165,000 SF at $1.75/SF Earthwork 13,200 cy $12.00 $158, $0.00 $158, $66, ($92,400.00) Bomel budget is based on 13,200 SF at $5.00/SF Soil Export 1,950 cy $28.00 $54, $0.00 $54, $54, $0.00 Budget appears reasonable Fine Grading 22,400 sf $1.00 $22, $0.00 $22, $22, $0.00 Budget appears reasonable Asphalt 18,400 sf $3.75 $69, $0.00 $69, $69, $0.00 Budget appears reasonable Planter Curbs 795 ls $20.00 $15, $0.00 $15, $15, $0.00 Budget appears reasonable Storm Water System 1 ea $105, $105, $0.00 $105, $105, $0.00 Budget appears reasonable Drywell Storm System 1 ea $65, $65, $0.00 $65, $65, $0.00 Budget appears reasonable Landscaping & Irrigation 50,000 sf $1.00 $0.00 $50, $50, $40, ($10,000.00) Bomel budget is based on 10,000 SF at $4.00/SF Hardscape/Enhanced Paving 0 sf $ $0.00 $0.00 $30, $30, Bomel recommends budget of $30, Division 3 - Concrete Structural Concrete 165,000 gsf $19.51 $3,219, $0.00 $3,219, $3,219, $0.00 Budget appears reasonable Reinforcing Steel 165,000 gsf $9.90 $1,633, $0.00 $1,633, $990, ($643,500.00) Bomel budget is based on 165,000 SF at $6.00/SF Division 4 - Masonry Masonry 5,500 sf $17.00 $93, $0.00 $93, $137, $44, Bomel budget is based on 5,500 SF at $25.00/SF Division 5 - Metals Misc Metals, Expansion Control 165,000 gsf $0.40 $66, $0.00 $66, $66, $0.00 Budget appears reasonable Cable Barrier System 1,400 lf $35.00 $49, $0.00 $49, $49, $0.00 Budget appears reasonable Stairs & Railings 5 sets $12, $60, $0.00 $60, $95, $35, Bomel budget is based on 5 sets at $19,000/set Steel Stud Walls/Drywall/Stucco 5,500 sf $16.00 $0.00 $88, $88, $88, $0.00 Allowance appears reasonable Architectural Metal Screen Façade 5,500 sf $45.00 $0.00 $247, $247, $247, $0.00 Allowance appears reasonable Architectural Metal Screen Entry 3,300 sf $40.00 $0.00 $132, $132, $132, $0.00 Allowance appears reasonable Division 7 - Waterproofing Waterproofing 165,000 gsf $0.05 $8, $0.00 $8, $8, $0.00 Budget appears reasonable Division 8 - Doors & Windows Doors & Hardware 165,000 gsf $0.02 $3, $0.00 $3, $6, $2, Bomel budget is based on (2) doors at $3,000/ea Division 9 - Finishes Paint 165,000 gsf $0.30 $49, $0.00 $49, $49, $0.00 Budget does not include interior columns and soffits Sealed Floors 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable Elastomeric 5,000 sf $1.00 $5, $0.00 $5, $30, $25, Bomel budget is based on 5,000 SF at $6.00/SF Striping 485 stalls $40.00 $19, $0.00 $19, $19, $0.00 Budget appears reasonable Division 10 - Specialties Signage/Fire Extinguishers 165,000 gsf $0.20 $33, $0.00 $33, $33, $0.00 Budget appears reasonable Division 13 - Special Construction Security Access & Surveillance 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable for conduit only Detection & Alarm 165,000 gsf $0.10 $16, $0.00 $16, $16, $0.00 Budget appears reasonable for conduit only Division 14 - Conveying Systems Elevators/Cab Finishes 4 stops $55, $220, $0.00 $220, $170, ($50,000.00) Bomel budget is based on 4 stops at $42,500/stop Division 15 - Mechanical Fire Line & Hot Tap 1 ea $29, $29, $0.00 $29, $25, ($4,000.00) Budget appears reasonable Fire Sprinklers 165,000 gsf $0.50 $82, $0.00 $82, $82, $0.00 Budget appears reasonable for standpipes only Domestic Water 1 ea $7, $7, $0.00 $7, $7, $0.00 Budget appears reasonable Plumbing 165,000 gsf $0.30 $49, $0.00 $49, $123, $74, Bomel budget is based on 165,000 SF at $0.75/SF Phone Line (Annex) 1 ea $2, $2, $0.00 $2, $2, $0.00 Budget appears reasonable Sewer (Annex) 1 ea $7, $0.00 $7, $7, $7, $0.00 Budget appears reasonable Division 16 - Electrical Electrical Systems 165,000 gsf $1.05 $173, $0.00 $173, $495, $321, Bomel budget is based on 165,000 SF at $3.00/SF Lighting Systems 165,000 gsf $0.80 $132, $0.00 $132, $0.00 ($132,000.00) Lighting System is included in above budget figure Prevailing Wage adjustment - 15% N/A N/A N/A $1,167, $1,167, SUBTOTAL $7,123, $930, $8,053, $8,954, $901, Permits & Fees 1 ea $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Assumes City of Brea does not charge for permits and fees Contingency 1 ea $100, $0.00 $100, $100, $100, $0.00 Budget appears reasonable Payment & Performance Bonds 1 ea $0.00 $90, $0.00 $90, $99, $9, Bonds are estimated at 1% of total contract value General Conditions 9 mo $40, $360, $0.00 $360, $360, $0.00 Budget appears reasonable Insurance - E&O 1 ea $14, $14, $0.00 $14, $14, $0.00 Budget appears reasonable Insurance - Liability 1 ea $34, $34, $0.00 $34, $34, $0.00 Budget appears reasonable Insurace - Builders Risk 1 ea $0.00 $67, $0.00 $67, $74, $7, Budget is based on 0.75% of total contract value Contractor Overhead & Profit 8,500,000 costs 4.00% $340, $0.00 $340, $340, $0.00 Budget appears reasonable Escalation - Based on 2nd QTR 2016 start 1 ls $0.00 $0.00 $0.00 $0.00 $0.00 Budget includes escalation to 2nd QTR of 2016 GY BASE BID GY ALLOWANCES GY TOTAL BOMEL TOTAL VARIANCE Parking Structure Total $8,028,500 $1,030,000 $9,058,500 $9,975,532 $917,032 Guy Yocum Estimate/GSF $54.90 Guy Yocum Estimate/Stall $18, Bomel Estimate/GSF $60.46 Bomel Estimate/Stall $20,568.11

20 JOB NAME: Brea Superblock BUDGET DATE: 5/27/2015 ESTIMATOR: Paul Hecko/Keith Dodson file name: I:\EST\2830 Brea Superblock 4 Level - Revised GROSS SQUARE FOOTAGE 173,246 ELEVATED DECK SQ FT 125,123 TOTAL CARS WITH VALET 470 CODE # SUBCONTRACT ITEM BUDGET DESIGN-ARCHITECTURAL/STRUCTURAL/MEP 387, DESIGN-CIVIL ENGINEERING 50, CRACK CONTROL ALLOWANCE 2, ENGINEERING (FIELD) 25, FINAL CLEAN 7, DEMOLITION In Grading EXCAVATING/GRADING 253, ASPHALT PAVING-SLOT PATCH 7, BIKE RACKS - 23 ea 11, SITE CONCRETE 248, DETECTABLE WARNING STRIPS 14, PARKING LOT STRIPING 18, SITE UTILITIES 75, LANDSCAPE/IRRIG./TRASH/TREE GRATES 63, REINFORCING STEEL & PT 971, BARRIER CABLE 62, CONCRETE & FORMWORK 3,254, MASONRY 351, STEEL, MISC. METALS, STAIRS, PERFRORATED CANOPY 311, GREEN SCREEN-50% EXTERRIOR 192, EXPANSION JOINT 18, CARPENTRY, ROUGH 1, CAULKING/ BGWP/ROOFING 132, SHEET METAL 35, METAL DOORS/FRAME/FIN. HRDWE 12, GLASS & GLAZING-North Elevation 187, Retail 76, PAINTING 111, SIGNS & GRAPHICS 25, PARKING CONTROLS (Conduit only in elect) By Others HYDRAULIC ELEVATOR 4-STOP 170, ELEVATOR CAB FINISH ALLOWANCE 5, FIRE SPRINKLER SYSTEM-Retail 42, PLUMBING & STANDPIPE SYSTEM 267, HVAC- OFFICE & PARKING STRUCTURE 331, ELECTRICAL/TEMP.POWER 673,700 CONTINGENCY-2% 165,529 Schedule ESCALATION -3% 253, Mos SUBTOTAL SUBCONTRACTORS 8,820,220 GENERAL CONDITIONS AND FEE 1,125,672 TOTAL 9,945,892 ALTERNATE ADD FOR BOND - 1% 99,459 TOTAL WITH BOND 10,045,351 COST PER SQUARE FOOT $58.07 COST PER STALL $21,373.09

21 Downtown Brea Mixed Use Development

22 Jamboree Vision for Site Current use: 1.44 acre site used as a surface parking lot Opportunity to transform an underutilized site into a catalyst for new investment in downtown Brea Proposed development to include 15,000 SF of new office space, 40 affordable family units, and a total of 615 parking stalls in two subterranean levels and 4 above ground parking levels

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27 Public Parking Structure 615 parking stalls to meet demands of local business owners, replace existing surface parking, and ensure adequate parking for office and residential components 2 subterranean levels and 4 levels above ground 5 th level above garage will house 15,000 SF office building Height similar to architectural elements of adjacent Buffalo Wild Wings building 55 setback from face of building to residential uses across street on Orange Avenue

28 Office Component 15,000 SF of new office space proposed as Jamboree s new corporate headquarters Office space to be located on roof of public parking garage, structured as air rights deal, with necessary access easements etc. necessary for space to be marketable

29 Affordable Residential Component 40 affordable family units with a mix of one, two, and threebedroom units to compete in the large family pool High 1BD count; possible preference for veterans and/or seniors Parking to be in public lot via use agreement Opportunity to bring rooftops to shop downtown businesses in a pedestrian oriented neighborhood district Resident services onsite, such as after school programs to work with neighboring schools and help enhance student achievement

30 Financing Plan Public Parking Garage Total development costs of $14.3 million $2.3 million to be paid by residential development as parking fee for 80 subgrade spaces $504,000 to be paid by office for 42 above ground spaces Remaining $11.5 million could be offset by a number of potentially available sources

31 Financing Plan - Office Office component to be financed on a standalone basis by Jamboree, with sources to include a conventional mortgage and Jamboree equity Estimated cost of office space is $2.25 million ($150/SF) Jamboree proposes to purchase rights to 42 spaces for a total cost of $504,000 ($12,000/space) Office development cost derived from a conventional mortgage supported by monthly lease payments, with any remainder coming from Jamboree equity sources

32 Financing Plan Affordable Residential Project to be financed as a 9% tax credit development Total development costs of $ million Over $11.44 million in low income housing tax credit equity $645,000 conventional mortgage $2.8 million for the City Land Note $3.025 million in current or projected City housing funds $Over $244,000 of deferred Jamboree developer fee

33 Other Options / Alternatives Recognizing that the potential costs of the parking garage are prohibitive, we evaluated the implementation of an automated parking system, which could eliminate both levels of the subgrade parking while potentially providing more parking stalls. Determined in this case, the cost of implementing an an automated system was nearly $5 million more expensive $ million vs. $14.3 million.

34 Summary Opportunity to leverage public investment in parking garage to do more for the stakeholders in Brea We are proposing to separate the garage and residential components to address cost/unit concerns for the California Tax Credit Allocation Committee (CTCAC) Net effect is to reduce City financing requirement for parking garage Significant ancillary and economic benefits to the City of Brea and local stakeholders

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42 Downtown Financing Options There are several methods of financing or constructing public improvements: 1) City financed; 2) Privately financed by adjacent property owners that benefit from these improvements via an assessment or special tax; and 3) A combination of City and private property owners sharing in the cost of the public improvements. Federal, State or County grants are sometimes available and could also be considered as additional funding sources, however, are not likely for this project. In order to consider options that involve private property owners, there must be a willingness or agreement to participate in an assessment or special tax. At the present time, ownership in the Downtown has not put that option forward for consideration. Therefore, solutions such as Community Facilities Districts, Enhanced Infrastructure Finance Districts or any other method of financing which involves an assessment or special tax, cannot be considered at this time. State law prohibits a City from imposing or compelling any special tax or assessment without a vote of the property owners affected. If the City is therefore to fund 100%, or nearly 100% of the cost of the public improvements, the following options are available: Use of Reserves These funding sources have been identified in order of least impactful to the organization at the present time; however, use of these funds may influence future policy decisions and future City projects not yet defined. Any combination of the following sources may be used. $3,750, Redevelopment Bonds The most recent FY State Budget Proposal allows for some ability to gain access up to 30% of our $12.5 million in 2011 bond proceeds that are currently held in escrow. The 2011 bonds were issued to help construct three projects: the New Downtown Parking Structure, Tracks at Brea and an Eastside Community Facility. Staff is working diligently with our legislative partners in Sacramento to increase access to the 2011 Bonds. This issue has not yet been resolved; however, there a very good probability $3.75 million will be released to the City in $5,160, Capital & Mitigation Improvement Fund This fund was established to account for Council designated Capital Improvement Projects. These funds are one-time revenues received by the County for the extension of the Olinda Landfill. The fund description is as follows: This fund is used to account for the revenues received and expenditures made for City Council designated Capital Improvement Projects. As well as the implementation of measures designed to mitigate impacts related to development, and the operation of government facilities, including but not limited to traffic, noise aesthetics, and open space preservation. The City Council has the full discretion to use these funds to build a parking structure. $3,481, Community Benefit & Economic Development (CBED) Fund This fund was established to account for the deposit of revenues from the County of Orange. These revenues are collected by the County at $1.50 per ton and remitted to the City of Brea and housed in this special fund. It is estimated the City will receive Page 1

43 approximately $1.3 million per year over the next seven years of the agreement with the County of Orange. The fund description is as follows: This fund was established in 2014 to retain funds which are set aside annually for the continuation of legacy community benefitted projects as well as provide a funding source for the attraction and retention of business and economic development. The City Council has the full discretion to use these funds to build a parking structure. $3,000, General Fund Reserves The City s General Fund reserves projected at the conclusion of FY are estimated to be $17.1 million. This is a 33% reserve level and represents a percentage of operating expenditures Brea has available as reserves. Generally, reserves are considered a rainy day or catastrophic event resource. In the past, Brea has used reserves on such items as fire apparatus, plunge rehabilitation and Brea Envision project. The use of General Fund reserves is at the discretion of the City Council. The $3 million is an illustration of an amount that could be used and this amount can be higher if Council so desires. If $3 million were used, it would reduce the General Fund reserve level to $14.1 million and reduce the percentage to a 27% reserve level. The current Council policy is to maintain an 8 to 10% General Fund reserve level; however, more recently, the Council has had an interest in increasing the reserve level policy. Financing The City may choose to finance the cost of the parking structure; however, given this is a City project the resources committed to pay the annual debt service (loan payment) would come from the General Fund. We previously identified in a prior report that approximately $197,000 in new General Fund revenues could be generated from expanded uses in the downtown and related spin-off revenues. If we include existing valet and cell tower revenue the City is currently receiving, that number grows to approximately $267,000 per year. In order to reduce the impact to the General Fund with an ongoing expense greater than the amount of new revenue generated, consideration should be given to match as closely the annual payment being financed to the amount of revenue generation. In other words, finance an amount closely related to the amount of money the City would be receiving in new revenues. Ideally, you would want new revenue generation higher than your annual payment; however, if you can fix the annual payment, then you would look for revenues to grow higher over time due to inflation and increased cost of goods and service. Examples of Long Term Financing $3,000,000 Financing $3 million would result in an estimated annual payment of $220,000 per year over 20 years or if payments were extended 30 years, the payment would be estimated at $195,000 per year. Page 2

44 $3,500,000 Financing $3.5 million would result in an estimated annual payment of $257,000 per year over 20 years or if payments were extended 30 years, the payment would be estimated at $227,000 per year. $4,000,000 Financing $4 million would result in an estimated annual payment of $294,000 per year over 20 years or if payments were extended 30 years, the payment would be estimated at $260,000 per year. Other Offsets $15,000 The property owner of Gaslight Square offered to contribute $15,000 per year towards the City s annual financing payment. Over a period of 20 years, this amounts to $300,000 towards the overall cost. Financing Examples 2011 Bonds/Financing/Contributions from Multiple Fund Reserves $12,700,000 Parking Structure Project -3,750, Bonds -1,500,000 Fund 560 reserves -1,500,000 Fund 140 reserves -2,450,000 Fund 110 reserves -3,500,000 Fund 110 Long term financing with $257,000 annual payment for 20 years 2011 Bonds/Financing/Contributions from General Fund Reserves $12,700,000 Parking Structure Project -3,750, Bonds -5,450,000 Fund 110 reserves -3,500,000 Fund 110 Long term financing with $257,000 annual payment for 20 years Page 3

45 2011 Bonds/Financing/Contributions from General Fund Reserves $12,700,000 Parking Structure Project -3,750, Bonds -3,481,000 Fund 140 reserves -5,469,000 Fund 110 Long term financing with $402,000 annual payment for 20 years 2011 Bonds/Financing $12,700,000 Parking Structure Project -3,750, Bonds -8,950,000 Fund 110 Long term financing with $658,000 annual payment for 20 years Page 4

46 Return to Report EXHIBIT E to June 16, 2015 staff report EXHIBIT E Since its meeting and discussions in April staff have received a variety of questions from Council Members. We have compiled those questions below, with responses outlined for the Council s reference. 1. Please provide a time line explaining all the different proposals since City designed parking structure- 4 levels (grade + 3), 15,000 sq ft of commercial space, 444 stalls (266 net new) Manley/Fanticola designed parking structure + 72 residential apartments, 428 stalls (252 net new, less 72 for dedicated residential use) Downtown Owners designed one level deck on SB I & II, very conceptual, 364 (SB I) (SB II) stalls ( net new) Downtown Owners design parking structure for SB I, very conceptual, 3 levels (grade plus 2), 501 stalls (323 net new, including 87 in tandem configuration) Downtown owners design refined to current proposal-4 levels (grade + 3), 485 stalls (307 net new) 2. Please create a list of our major financial obligations/needs (e.g.; unfunded pension & medical liability, The Tracks unfunded cost, unfunded FARP, unfunded Pavement Management costs, etc.) Financial Obligation Amount Unfunded Pension Liability (6/30/13) Other Post Employment Benefits (6/30/11) Unfunded Identified Capital Purchases for the next 10 years Unfunded Tracks (March 2015) Pavement Management (Slurry Seal Program)- $200K per year for the next ten years Total 89,749,208 18,197,000 5,800,000 1,702,000 2,000,000 $ 117,448, What are the three projects and their costs that were identified in the 2010 CIP Budget? Not CIP, but the bond issue from 2010 identified three projects to implement the Downtown Parking Structure, $7M; the Community Facility on the Birch Hills Golf Course, $4M; and The Tracks at Brea, $2M. The dollar figures discussed in the bond measure were flexible and could allow for different final allocations among projects. 4. Parking Space Analysis: Please provide analysis that supports the number of spaces proposed by the Downtown Owners. For example, if built today, how many parking spaces would be required by occupancy for the existing and proposed occupancies for Super Blocks 1 & 2? In 2012 staff had Gibson Transportation, our longstanding parking consultant for Brea Downtown, review a land use option to replace retail (Old Navy) with a live entertainment and restaurant venue (Improv expansion). It is noted that the assumptions made at that time for an expanded Improv may now have changed and these details are now under review. The 2012 analysis found a new Improv to be achievable within the existing downtown parking inventory. Aggressive parking management strategies would need to be implemented to allow this land use scenario to function and these strategies were never explored. Rather, it is staff s understanding that the

47 Improv management and/or property owner Dwight Manley rejected the idea to move forward on any expansion absent new parking inventory on the east side of Brea Boulevard. 5. What s the walking distance from the S/E corner of PS1 (existing Brea Boulevard garage) to the former Tower Bldg? to Taps? Staff used Google maps and its walking directions feature which calculates from property line to property line to provide the information below: PS1 to Tower Records feet, 2 minute walk PS2 to Tower Records feet, 4 minute walk PS1 to Taps 1200-feet, 5-6 min walk 6. What s the width of Brea Blvd.? Birch? at the intersection? Improve patrons are crossing Brea Blvd now, but we re told this street is a barrier? How is this different from Birch Street? See exhibit below. +/- approximate distances as measured via City of Brea GIS.

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