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15% discount as to the purchase price. Those residents who choose not to purchase lots will pay rents as provided in items 3 and 4, regardless of park ownership. 6. The park will remain an age- restricted park in perpetuity unless a majority of residents vote otherwise or unless remaining an age- restricted park is prohibited by law, which he said was important for the residents. 7. The City will pay the park owner $750,000. The park owner has agreed to use funds solely for the purposes of capital improvement projects in the park and will provide an annual accounting of those expenditures to the City. 8. There has been a constant theme throughout the conversion regarding the value of the lots upon conversion. Through discussions in the subcommittee process, the City agreed to obtain, at its own expense, an appraisal of the lots. These were one of the issues asked by residents. This information will be useful to residents for long -term planning. The City also agreed to work with residents in terms of how the appraiser is selected and what kind of things they will look for in determining price so they have the benefit of not only understanding the thought process that goes into that, but they will also have the ability to communicate this back to neighbors when the time comes. 9. At the time of conversion, several residents may not be able to get traditional financing through a bank or the state may no longer offer its low discount loan program. In order to address this gap, the City agreed to establish a low- interest loan program for residents who cannot secure financing either through a commercial bank or through the state. 10. The City would set aside $1 million from its affordable housing fees which have accumulated over the years to approximately $13 million. The terms of the loan program is being developed. Councilmember McGovern stated this was probably one of the best processes she ever participated in. The owner, residents and the City all came together to resolve an issue and give the residents what they needed. Mayor Hosterman agreed. The Mayor opened the public hearing. Dan Guggenheim said he has been the majority owner and managing partner of Vineyard Villas Mobile Home Park since 1999. He acknowledged that when he originally began the subdivision process, he handled the issue poorly with residents. He spoke of the process of litigation and the request by the City Manager to find a solution, and thanked the Council for authorizing the City Manager and the Council subcommittee to take time and negotiate, which he agrees was one of the best sessions he ever went through. Regarding the settlement of $750,000 for infrastructure improvements, it has never been his intent to profit or punish the City through litigation and said all funds will be used to make capital improvements to the park. Donna Wilkinson thanked the Council, staff and Mr. Guggenheim on behalf of Vineyard Villa residents, for taking into account all issues and concerns and returning with a win /win situation. They are all very happy with the outcome from this. She said many residents were simply scared and all of their expectations were exceeded of what is ahead for them. Art Moniz said he was originally opposed to the conversion mostly because of the way it was presented to residents; however, under current proposal, he feels it is now a win /win proposition and he thanked all parties for their efforts. City Council Minutes Page 5 of 8 March 2, 2010