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File #: 2018-0542   
Type: Contract Status: Agenda Ready
File created: 8/10/2018 In control: Construction Committee
On agenda: 9/20/2018 Final action:
Title: AUTHORIZE the Chief Executive Officer (CEO) to: A. AUTHORIZE staff to execute the Settlement Agreement; B. INCREASE the Life of Project Budget for The Bloc/Metro Connection Joint Development by $270,000, increasing the Life of Project from $4,650,000 to $4,920,000; and C. AMEND the FY19 annual budget by $270,000.
Sponsors: Construction Committee
Indexes: Budget, Construction, Contracts, Easements, Joint development, Joint Development Agreement, Payment, Safety, Strategic planning
Related files: 2018-0673
Date Action ByActionResultAction DetailsMeeting DetailsAudio
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Meeting_Body
CONSTRUCTION COMMITTEE
SEPTEMBER 20, 2018

Subject
SUBJECT: THE BLOC/METRO CONNECTION JOINT DEVELOPMENT

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer (CEO) to:

A. AUTHORIZE staff to execute the Settlement Agreement;

B. INCREASE the Life of Project Budget for The Bloc/Metro Connection Joint Development by $270,000, increasing the Life of Project from $4,650,000 to $4,920,000; and

C. AMEND the FY19 annual budget by $270,000.

Issue
ISSUE

This action is necessary to execute a global settlement agreement with NREA-TRC 700 LLC (the Developer), ("Settlement Agreement"). This Settlement Agreement represents staff's negotiations to settle various unforeseen construction changes encountered during construction that impacted the scope of the project, and represents the final agreement to close out the Construction. The increase to the Life of Project (LOP) budget is required to close-out the Joint Development, Construction and Funding Agreement (JDCFA).
Background
BACKGROUND

In April 2015, the Board authorized the Chief Executive Officer to negotiate and execute a JDCFA and Reciprocal Easement Agreement (REA) with NREA-TRC 700 LLC, a Delaware limited liability company, ownership entity of The Bloc formerly Macy's Plaza (the "Owner") for the design, construction, operation, maintenance and funding of a pedestrian passageway between the 7th Street/Metro Center Station ("The Bloc/Metro Connection").

The total cost of the passageway, including The Bloc improvements necessary to accommodate the passageway, and the value of the forgone retail space was estimated to be $9,312,000. Metro's share of the costs for The Bloc/Metro Connection (construction and easement fee) was not to exceed $4,650,000, which represented approximately half of the total project costs. In November 2015, Metro executed the JDCFA with NREA-TRC 700 LLC, and the project was completed with full Certificate of Oc...

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