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BACKGROUND <br /> In 2000, members of the Housing Commission expressed concern regarding the long <br /> term viability of Kottinger Place, the City's affordable senior housing project located at <br /> 240 Kottinger Drive, including concern that the community building /office and cottage <br /> units were not fully ADA accessible or equipped with modern design features found in <br /> current senior facilities. In addition, it directed staff to explore the potential for adding <br /> additional units on the site and the potential for replacing the current community room <br /> with a more modern facility that could include second story living units. As part of this <br /> research, the Commission also encouraged staff to explore the acquisition of the <br /> adjacent property located at 4138 Vineyard Avenue as its acquisition could be combined <br /> with the City's Regalia House site to facilitate additional senior units without significantly <br /> altering the existing senior cottage units. Staff contacted the property owner but was <br /> informed that the property was not for sale. However, the owner advised that the City <br /> would be offered the site should it ever be available for sale. Since this time, the Council <br /> has worked with the Kottinger Place Task Force exploring options for addressing the <br /> Commission's initial concerns, opportunities to develop additional units on the site and <br /> working cooperatively with Pleasanton Gardens. <br /> In February 2010, the Council approved the Principles of Agreement with Pleasanton <br /> Gardens setting forth the parameters for continuing the Kottinger Place development <br /> process. Two important steps in this process include selecting a not - for - profit developer <br /> to direct the development process and a more detailed review of the potential for <br /> rehabbing existing Kottinger Place units prior to beginning the process on a new <br /> development. Staff circulated the RFP but has not yet selected the developer pending <br /> further clarification from the City Council regarding its preferred intent with this project, <br /> i.e., postpone until completion of the Housing Element update, focus on rehab only, hold <br /> further discussions with Pleasanton Gardens, proceed with the Task Force's <br /> recommendations, etc. <br /> Notwithstanding the RFP scope noted above, with the availability of 4138 Vineyard Ave., <br /> there is an opportunity to amend the proposed project's scope of work to include studying <br /> the Housing Commission's initial concept of retaining / rehabilitating the existing cottage <br /> units, constructing a new community building and using the Regalia site and 4138 <br /> Vineyard as a location for constructing additional units. Also, should the City Council <br /> ultimately favor pursuing an entirely new development as currently being recommended <br /> by the Kottinger Place Task Force, the acquisition of 4138 Vineyard will help address <br /> concerns expressed to date related to building height and site density. <br /> DISCUSSION <br /> As a result of the opportunities noted above, the City Council authorized staff to negotiate <br /> with the property owner regarding the acquisition of the site. Staff has completed this <br /> work including reviewing a title report and acquiring a property appraisal that supports the <br /> acquisition price. A copy of the appraisal is available at the City Clerk's Office. As a <br /> result, staff is requesting authorization to complete the purchase transaction. <br /> Page 2 of 3 <br />