Planning Commission Minutes 2019 02 14

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Planning Commission Meeting Minutes February 14, 2019 Page 6 of 17 McClure replied that it was based on the market and other projects, like stabilization of DELO Plaza and the Foundry building itself to execute Building E. Williams asked what stabilization meant. McClure replied that it meant about 85% occupancy for commercial buildings. He would not know how long that would take to meet before the building went on the market. Williams asked if, in the scenario that building F was occupied at 85% at year one with three-year leases, there would be a trigger to build the other buildings. McClure replied that it would definitely be a trigger. He noted that he would prefer five- year leases or three-year leases with extensions. Hoefner asked what the chances were that the applicant would stop building after building C. McClure replied that he would be in trouble in that case after all the time and money he would have already sunk into the project by that point. If he defaulted on any of these loans, he was personally liable. Hoefner asked if the applicant thought he would come back to the Commission asking for another re -write. McClure replied that the thought of coming back for a re -write gave him a hot flash. Williams asked if there was a possibility that the applicant would ever come back and ask to change Building E to residential. McClure replied that there was a possibility, though it was not be his intent. The intent was to build it as commercial as approved. He noted that it was more valuable as a commercial unit, but might be more marketable if they turned it into a live -work unit. Williams asked if all the condominiums were live -work. McClure replied that the condominiums were purely residential. Hoefner asked how McClure would respond if the Commission changed the second condition to make the CO conditional on more buildings than just the last one. McClure replied that the lender would not want any COs withheld at all so he would like it to be as light as possible. He noted that withholding the CO on the last unit was a big motivator, because the entire horizontal infrastructure of Building D would already be in place. Howe noted that the applicant would not have to finish E and F to trigger the last CO for the last building. All the applicant would have to do was complete the horizontal infrastructure, not build the building. He asked how the applicant and the City could avoid having a vacant area.