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Developers pursuing gap financing for Davis Exchange; city says MOU still in progress
Summary
City staff told commissioners July 1 that the Davis Exchange MOU is not final; developers are pursuing additional funding to close a previously reported $750,000 gap while the city’s current MOU reflects the original $1,750,000 commitment. Commissioners requested timelines, original agreements and clearer documentation of the city’s obligations.
City staff updated the Albany City Commission on July 1 that the memorandum of understanding for the Davis Exchange (IDP) project remains under negotiation and is not ready for a final vote.
Miss Gatson, speaking for staff, said the MOU work continued after a meeting with the developer and the city manager and that the document will be brought back to the commission for review when complete. Gatson said the developers are seeking additional funding to cover a gap from a previously discussed request for an extra $750,000 but that the current MOU under development reflects the original $1,750,000 loan commitment the commission previously approved.
Commissioners pressed staff on what had happened at the prior meeting where an additional $750,000 was discussed. City attorney Michael Custer explained that the prior agenda item had been an ask for an extra $750,000 and that this MOU now represents the original commitment amount rather than a new ask. Gatson told the commission that the developers are looking for other financing to round up the $750,000 difference and that the MOU will include a timeline and proposed construction-start dates.
“Without this 750, I can't make this project happen,” Mayor Bo Dura said, describing comments he had heard from the developer at an earlier meeting; the mayor also described the developer’s subsequent assertion that the project could proceed without that additional sum as “somewhat duplicitous.” Gatson responded that the developer is continuing to seek gap funding and that staff expects the initial project as approved for $1,750,000 to proceed.
Commissioners asked for the original MOU (if one exists), a clear bullet-point list of the city’s commitments, dates for closing and construction milestones, and contract protections in the event of a sale or transfer. Staff said they would return with the drafted MOU and additional documentation for the commission’s review.
No formal vote on the MOU was taken during the special call; commissioners adjourned the special call and proceeded to a scheduled work session.
