Town of Sunnyvale
Town Council & 4A Development Corporation
Joint Special Meeting
April 30, 2012
Tonight’s Agenda:
• Call to Order
• Move Into Executive Session
• Discuss Proposed Economic Development
Agreement for Sunnyvale Centre
• End Executive Action
• Discussion/Action Items
• 4A – Consider Resolution 2012-2
• Council – Consider Resolution 2012-12
• Discussion regarding TIRZ #1
• Adjourn
Background on Meeting:
• Council was first notified by e-mail of the
meeting for calendaring on 4-13-12
• Draft agenda included in e-mail
• 4A and Council action included on agenda
• This item has been on 4A radar for some time
• Council previously approved preliminary plat
for ring road on 3/28/11
• Project discussed for some time on/off agenda
Communication on Meeting:
• Council was first notified by e-mail of the
meeting for calendaring on 4-13-12
• One response received from Councilman saying
he would not be here – no request to change
date, no explanation he would be out of Town
• Reminder of this meeting given at Council
Meeting on 4/23 – no request to change date,
question raised about why the hurry?
• Mayor nor Town Manager has received no
request to delay or change the meeting date
Reality:
• The issue/opportunity is not new; there is no
rush to judgment
• Communication on this meeting started 17
days ago with Council
• Intended agenda – including Council action –
was communicated 17 days ago
• No one has asked for a reschedule
• No Public Hearing scheduled – contrary to email
Executive Session
Return from
Executive Session
4A Discussion/Action
Resolution 2012-02
Council Discussion/Action
Resolution 12-12
Performance Agreement:
• RKS agrees to spend up to $3,000,000 for
Qualified Expenditures and a Ring Road for
Sunnyvale Centre
• 4A agrees to fund 50% of the Qualified
Expenditures and Ring Road capped at $1.5 million
• $500,000 in 2012
• $500,000 in 2013
• $500,000 in 2014
• All payments made by 4A will be based on
substantiated receipts for all expenses
Performance Agreement:
• Qualified Expenditures include –
Engineers
Admin. Fees
Site improvements
Architects
Drainage
Interest Expense
Planners
Water/Sewer Lines
Traffic Controls
Attorneys
Electric/Gas Lines
Irrigation
Consultants
Fiber optic, phone
Utility Relocation
Contractors
Lighting
Utility Construction
Subcontractors
Pedestrian amenity
Performance Agreement:
• Bids to Developer indicate –
ELEMENT
BID
Ring Road
Sign Package
TOTAL BID
$1,875,372
$1,407,484
$3,082,626
Bid expires after 5/10/12
Performance Agreement:
• Term of 11 years initially (2012-2023)
• RKS option to extend through 6/30/27
• RKS agrees to –
• Commence construction by 10/1/12
• Substantially complete the project by
10/31/13
• Submit all receipts to 4A by 10/31/14
• Report Sales Tax generated by properties on
an annual basis
Performance Agreement:
• Target Sales/Use tax revenue targets
• $170,000/year
• Includes Town, 4A and 4B collections
• Target achievement date is 12/31/22 with
reporting by 6/30/23
• If target achieved before 12/31/22, the
Agreement is considered fulfilled by RKS
Performance Agreement:
• If Target Sales/Use tax is not achieved
• RKS can automatically extend the Agreement
another four (4) years
• If target tax income is not achieved by 12/31/26
• Percentage of 4A funding to be repaid
• Example: Sales/Use tax in 2026 = $120K
• $120K = 70.6% achievement of target
• $1.06 million of 4A funding (70.6%) is kept
• $441,176.47 is paid back by RKS
Performance Agreement:
• Other provisions included for
• Indemnification
• Default
• Severability
Questions from the Public
Council Discussion/Action
Resolution 12-12
TIRZ DISCUSSION
4A & Town Council