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BACKGROUND and DISCUSSION The background and discussion of this item, through the Council's May 5, 2009 meeting, are set forth in great detail in the attached (a) May 5, 2009 City Council Agenda Report and its various attachments, (b) supplemental agenda report with attachments, and (c) City Council minutes of May 5, 2009. At the Council's May 5, 2009 meeting, Council expressed concern that residents needed more information about the proposed conversion and directed staff to coordinate with the Park owner to conduct additional outreach to the residents and provide them with additional information. Thereafter, staff sent all the residents a six page document entitled "Common Questions and Answers about Conversion" (copy attached) that set forth a number of questions that residents and Council had asked concerning conversion and answering those questions in lay terms. In addition, staff arranged for two meetings with residents, held at the Park Clubhouse, one during the day and one during the evening. (About 40 persons attended the afternoon meeting, 25 the evening meeting.) At those meetings, residents were provided with an overview of conversion, the "Questions and Answers" document was discussed and residents were given as much time as they needed to express their concerns and ask their questions. Following those meetings, as requested by Council, all residents were sent a survey asking whether they were or were not in support of the conversion. The residents were also encouraged to provide a reason or two for their position. A copy of the survey is attached. The City received 139 responses (out of 208 spaces). The overwhelming majority 118 —did not support conversion. Although the survey informed residents that supporting conversion did not mean that the resident intended to purchase a lot, a common thread expressed as to the reasons for not supporting the conversion was that many residents were not interested in purchasing a lot, either because they did not know what the cost would be (the owner has refused to provide this information because sales would not begin for at least 10 years) or because they were not interested in obtaining a loan at this stage of their lives. Some also expressed a concern that converting the Park would result in their rents being raised and forcing them to leave. (For a one person lower income household —a person earning less than $46,350 —upon conversion, rents could only be raised essentially by cost of living increases. For a person who would not qualify as lower income, rents could be raised to "market currently that amount is undefined but over a five year period.) EXPLANATION FOR STAFF'S RECOMMENDATION The Council's options here are to uphold the appeal, thereby approving the application, to deny the appeal, thereby denying the application or, if Council believes the input of the Housing Commission concerning the conversion would be helpful to its decision making process, to refer the application to that Commission for a recommendation. Page 2 of 4