City Manager Williams that "a preliminary review of the housing market indicates a feasible (120-150 unit apartment building) project" and requested an option to study the inclusion of the Park Tower Apartment building in the plan. The apartment tower was added to the list of projects Carley was to evaluate. Subsequently, in a letter to city council, dated March 18, 1983, and at a city council meeting, held March 28, 1983, Carley reported to the city council that there was a "strong demand" for residential highrise development in downtown Newport News and that "an apartment building will enhance and complement the office building and retail space" under study pursuant to the December 20, 1982 Development Option Agreement.
5. After several extensions of the Development Option Agreement, Carley representatives metwith the city council on June 27, 1983, and reported that the projects they had been studying were "viable". They stated that Carley was "prepared to take the risk to move forward with Phase I" and the projects set forth in the Option Agreement, as amended, including the Park Tower project which was now supported by a Carley-financed study.
6. The Carley representative at the June 27, 1983 meeting, Terry Lierman, stated that Carley was prepared to move forward with the Park Tower project (later called RiverPark Tower), and to finance it with $3 million in Carley equity, an Urban Development Action Grant ("UDAG") and $8.5 million in permanent financing.
7. As a result of the June 27, 1983 meeting, the City and Carley entered into a "Development Agreement", dated