Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Davis Exchange Mou topic
No spam. Unsubscribe anytime.
Commission hears update on Davis Exchange MOU as developers pursue gap financing
Summary
City staff told the commission the Davis Exchange MOU is still being finalized; the developers and staff said the project should proceed at the originally approved $1.75 million while developers seek an additional $750,000 from other sources. Commissioners pressed for a completed MOU with milestones and repayment safeguards before additional funding.
City of Albany commissioners received an update July 1 on the memorandum of understanding for the Davis Exchange (IDP) project but took no vote because staff said the MOU remains unfinished.
Economic development staff (identified in the record as Miss Gaskins) told the commission the city met with the developer, the city manager and legal counsel as recently as the day before and that the MOU will be returned to the commission once the document is complete. Staff said the MOU will include a timeline with delineated dates for milestone completion, anticipated construction start dates and proposed closing dates so the commission can ask questions before taking action.
Commissioners revisited the project’s funding history during the exchange. Several members recalled a prior commission action that allocated $1,750,000 toward the project; city attorney Michael Custer said the current MOU reflects that original commitment and does not, in its present form, include an additional $750,000 request. Commissioners noted there had previously been a request for an increase of $750,000 tied to an earlier meeting and asked staff to clarify whether the earlier agenda item had been tabled or acted upon.
Several commissioners criticized the past process and the lack of a standing MOU when funds were allocated. Mayor Bo Dura said he had expected a formal MOU to exist when the allocation was made and asked staff to provide a bullet-point summary of the city’s commitments and benefits. Commissioners also asked that any sale of the project after the 15-year term include repayment provisions so the city would be repaid to avoid leaving a future purchaser with the original low-rate terms indefinitely.
Developers are pursuing gap financing to cover a $750,000 shortfall while staff said the city still expects the project to proceed under the originally approved scope tied to the $1.75 million allocation. Commissioners raised repeated concerns about repeated extension requests by the developer and the city’s exposure of taxpayer dollars, asking staff to build checks and balances and to ensure the MOU documents clear performance milestones before any future funding action.
The commission did not vote on the MOU during the special call; staff indicated it will return to a regular meeting later this month with a completed MOU for review.
