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The report recommended that in order to meet the needs of the very low- income senior population, the City's best efforts would be to acquire a site that is neither Kottinger Place nor Pleasanton Gardens. An organized group of residents met with the Bernal Property task force to reserve roughly 5 acres of the total site for such a project but the initiation of Measure B ultimately stalled that effort. Staff and residents then considered several alternative sites before returning to the pursuit of a project at Kottinger Place. Mr. Bocian stated that at the same approximate time, Pleasanton Gardens reached out to the Housing Commission and expressed an interest in a cooperative project. The Council authorized staff to move forward with investigating potential development options for the two sites and also form a project task force. The task force contracted with Christian Church Homes to conduct a predevelopment study and involved the public through a series of neighborhood and tenant outreach meetings. A predevelopment analysis for the 2 sites considered various development options which incorporated both rehabilitation on one or both sites and new development at one or both sites. Mr. Bocian noted that while both properties are well maintained and in good condition, the units themselves do not meet current building standards and do not lend themselves to senior needs; neither would be sufficiently addressed by rehabilitation. New development options included a 128 -unit project on the Kottinger site and rehabilitation of Pleasanton Gardens, a joint project of 174 units on both sites (60 of which would be on the Pleasanton Gardens site), 112 -unit project on the Kottinger site, and a combined development of 150 units that required reducing some of the surrounding park land. In June 2008, the task force recommended a conceptual site plan to the City Council which combined options 4 and 5 into a 150 -unit development using a combination of 2 and 3 -story design. Mr. Bocian reviewed photos, layout, and existing conditions at both sites, briefly outlined the 3 proposed design alternatives, and deferred to the architect for a more detailed presentation. He noted that a number of 2 -story footprint options were considered and said that following the Council's request to study a 2 -story design, the task force settled on retaining the footprint but reducing the overall mass to 2 stories and 128 units. He noted that certain residents from Kottinger Drive near the adjacent creek have expressed concerns over the building's height and overall mass and said that the task force has recommended that the Council begin tree plantings in this area. Mr. Bocian stated that the development concepts include the construction of a new 3 -story, 150 unit development that replaces Kottinger Place and Pleasanton Gardens with the goal of retaining the low- income status and rents currently offered at both. The plan is relocate the then current tenants to the new development of studio and 1- bedroom units. A redevelopment report was prepared to facilitate this process and relies on keeping vacant units open at both sites to accommodate residents of Kottinger Place during the construction process. He stated that some offsite relocation may ultimately be required and added that staff, the task force, and the Pleasanton Gardens are very focused on minimizing it to the extent possible. The construction process includes 2 phases to minimize relocation impacts and accommodate the types of financing considered and would retain the entire Kottinger Village Community Park, utilizes the Regalia House site, and removes the associated building. Mr. Bocian reviewed the preliminary financing plan although noted that the specifics do not materialize until very late in the development process and after a developer is on board. He stated that the proposed 150 -unit and 128 -unit designs carry an estimated cost of $44 million and $38 million respectively. Both options carry heavy funding presumptions and estimated City Council Minutes Page 4 of 16 December 1, 2009