Transcript Board Presentation 3-17-16

PLAZA SALTILLO REDEVELOPMENT
OVERVIEW OF TRANSACTION
MARCH 17, 2016
STRUCTURE OF DOCUMENTS
 Master Development Agreement: Outlines and governs initial
construction of Project
 Ground Lease: Governs long-term use and operation of
property, and payment of rent
 Developer/Tenant: Composed of Endeavor, Columbus and
Equity Investor, to be adequately capitalized and financed with
customary lender protections
 Phases:
 Phase I: Mixed-use Project (Blocks 1-5)
 Phase II: Senior Project (Block 6)
CONCEPTUAL OVERALL SITE PLAN
TERM
 FTA Concurrence: Documents will be signed after FTA
concurrence
 Commencement Date:The date the Ground Lease is signed
 Rent Commencement Date:The earlier of (a) January 1, 2017
(subject to certain delays) or (b) the date Tenant commences
work on the Project
 Term: From Rent Commencement Date to December 31, 2115
 Subject to certain termination rights by either party
RENT
 First Lease Year Base Rent: $1,625,000
 Base Rent Increases:
 Fixed Base Rent increases during first 5 Lease
Years
 Variable Base Rent increases afterwards
 Additional increases if square footage increases
 Pre-Paid Rent: $3,298,750.00 Pre-Paid Base Rent for
first 2 Lease Years; then Base Rent paid quarterly
 Rent Deposit: $3,250,000.00 Rent Deposit paid at
signing to be returned under certain conditions
 Percentage Rent:To be paid if applicable
 Triple net lease
INITIAL CONSTRUCTION OF PROJECT
 Capital Metro Right to Review Design
 Commencement and Completion Milestones
 Green Building/LEED
 B-Cycle Contribution
 Development Team
 Existing Agreements
 Environmental Remediation
 Track Realignment, Rail Crossings and Signalization
 Developer Reimbursement of Certain Capital Metro
Costs
WORKER PROTECTIONS
 Legal Protections: Compliance with legal protections
required
 Safety: OSHA certification and safety equipment
 Living Wage: Workers paid $11.39/hour (living wage as
of June 1, 2015)
 Insurance: Medical pay coverage and workers’
compensation or occupational accident insurance
 Monitoring:
 Project monitored by independent party with
translators available
 Regular reports regarding worker protections
 Action required to address and resolve issues
AFFORDABLE HOUSING
 Affordability:As required by TOD regulating plan with
remedies for non-compliance
 Increases: Possibility of increasing from 15% to 25% if
public funding is available
 Senior Affordable Project:
 Phase II of Project
 Capital Metro recapture right if not commenced
with one-time payment to Capital Metro and no
rent reduction
OPERATION AND USE
 Class A mixed use community operation standard
 Permitted uses and prohibited use restrictions
 Project components may be owned by separate
owners
 Lease includes defaults and remedies
QUESTIONS