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RES 14-665RESOLUTION NO. 14 -665 A RESOLUTION of the City Council of the City of Federal Way, Washington, Authorizing Development of the Performing Arts and Conference Center. WHEREAS, in 2012 the Council issued a Request for Qualifications seeking a private- sector development partner to develop a Performing Arts and Conference Center and associated lodging /hospitality use on the site formerly known as the Toys R Us property; and WHEREAS in response to the Request for Qualifications the Council selected Lorax Partners, LLC; and WHEREAS, Lorax provided Council a schematic plan performed by LMN and an initial overall schematic design and construction cost estimate of $31,850,000 (breakdown of costs is contained in the 100% schematic design estimate prepared by Mortenson Construction, dated September 5, 2013); and WHEREAS, the Mayor created a Blue Ribbon Panel to review the Performing Arts and Conference Center; and WHEREAS, the Blue Ribbon Panel identified enhancements and additions to the Lorax /LMN design proposal for Council consideration; and WHEREAS, of the Blue Ribbon Panel enhancements and additions, Council selects to incorporate all of the front -of -house enhancements and the back -of -house additions and enhancements that would enlarge the size of the kitchen; and WHEREAS, incorporating the cost of the selected enhancements and additions, the overall design and construction costs are estimated to be $32,429,000; and Resolution No. 14 -665 Page 1 of 4 WHEREAS, to account for inflation over the construction period, the maximum planning and construction cost estimate for the Performing Arts and Conference Center is $32,750,000; and WHEREAS, in conjunction with the development of the Performing Arts and Conference Center, the Council desires the construction of a private hotel on property to be sold to Lorax Partners that is surplus to the needs of the Performing Arts and Conference Center; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, RESOLVES AS FOLLOWS: Section 1. The Mayor is authorized to proceed with the development of the Performing Arts and Conference Center ( "PACC ") as represented in the 100% schematic design prepared by LMN dated August 9, 2013, with the addition of the following enhancements and additions as identified by the Blue Ribbon Panel: 1) Front -of -house enhancements — estimated cost $210,000 a. Place entry vestibule outside to enlarge circulation/queuing area inside the lobby b. Enlarge Box Office and Concessions areas and counters C. Reconfigure Box Office Manager area and safe money handling area d. Improve circulation into and through the auditorium 2) Back -of -house enhancements and additions — estimated cost $369,000 a. Larger kitchen space, equipped as catering kitchen b. To facilitate larger kitchen, enlarged back -of -house area housing administrative, storage, dressing room and similar functions. Section 2. The Mayor is authorized to enter into contracts up to $32,750,000 for the design and construction of the PACC utilizing existing, anticipated and committed funding, as well as a maximum three -year City inter -fund loan. Resolution No. 14 -665 Page 2 of 4 Section 3. Upon the completion of the inter -fund loan period, the Mayor shall present for Council approval a bond to finance the remaining permanent financing gap. Section 4. The Mayor is authorized to enter into negotiations with Lorax Partners, LLC, for the development of a private hotel on the PACC site to be developed in conjunction with the PACC. As part of the negotiations, the Mayor may offer to sell PACC site property that is surplus to the needs of the PACC. Such determination of surplus property is exempt from the requirements of Resolution 93 -156. Final sale or transfer of the surplus property shall require Council action. Section 5. The Council shall be provided regular updates regarding the status of the PACC. Contractors shall be instructed that cost savings are of paramount concern and to continue to identify potential cost savings during the design and construction process. Section 6. Staff is directed to assist in the preparation of an editorial to the Mirror by Council in support of the PACC project, to be reviewed and approved by the Deputy Mayor. Section 7. Severability. If any section, sentence, clause or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this resolution. Section 8. Corrections. The City Clerk and the codifiers of this resolution are authorized to make necessary corrections to this resolution including, but not limited to, the correction of scrivener /clerical errors, references, resolution numbering, section/subsection numbers and any references thereto. Section 9. Ratification. Any act consistent with the authority and prior to the effective date Resolution No. 14 -665 Page 3 of 4 of this resolution is hereby ratified and affirmed. Section 10. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON this 3rd day of June, 2014. CITY OF FEDERAL WAY ATTEST: Gag CITY CLERK, CAROL MC EILLY, C APP VED AS TO FORM: INTERIM ATTORNEY, AMY JO PEARSALL FILED WITH THE CITY CLERK: 5/28/2014 PASSED BY THE CITY COUNCIL: 6/03/2014 RESOLUTION NO.: 14 -665 Resolution No. 14 -665 Page 4 of 4