10 - Laserfiche WebLink

Predevelopment Report was prepared which outlines desired development characteristics applied to all approaches, Task Force goals, basic site plan design concepts, anticipated project development costs, tenant relocation , a number of HUD disposition approaches, project financing, development phasing, potential unit counts and project elevations from the neighborhood. The report was approved unanimously by the Task Force and the Housing Commission. DISCUSSION MidPen DDA If the City Council approves staff recommendations, one required project step includes preparing a DDA that would memorialize project roles as the project moves forward. In general, the DDA would outline that MidPen is the project developer and that the ownership and financial concepts included in the Predevelopment Report would be carried through to the development phase. The agreement would not limit the planning process, which staff anticipates would continue to be centered on the Task Force's ongoing public process. A DDA would not necessarily have direct financial impact in and of itself; however, as part of carrying out DDA requirements it is anticipated that the City would be asked to provide a predevelopment loan (under a separate predevelopment loan agreement) to meet architecture and design costs, legal and specialty consultant fees and other preconstruction related costs. If a predevelopment loan were to be approved, the proceeds would be part of the City's total financial contribution as identified above. A DDA is a common development instrument used for affordable projects and was used successfully for the development of Ridge View Commons, The Promenade and the Parkview Assisted Living project. Finally, the DDA could include language identifying compensation that would be paid to MidPen in the event the City decided against developing the project or using MidPen as the project's developer. Staff anticipates reporting back to the City Council with a recommended DDA within the next 90 days. Pleasanton Gardens In 2010, staff developed a draft memorandum of understanding (MOU) with the Pleasanton Gardens Board of Directors that outlined responsibilities and liabilities if the project were to move forward on the Pleasanton Gardens site. Due to concerns with the overall Kottinger Place development concepts submitted at the time, the MOU was not approved. However, because Development Approach 2 included in the Predevelopment Report, anticipates a joint development on both the Pleasanton Gardens and Kottinger Place sites, and the transfer of Pleasanton Gardens land and assets to the City for the purpose of facilitating the project, an MOU should be developed to memorialize the City's and Pleasanton Gardens' interests and contributions to a new project. In general, it is anticipated that Pleasanton Gardens would provide its land, facilities (which would be demolished), Section 8 entitlements, and financial reserves at no cost to the City for the purpose of supporting the new project. In addition, Pleasanton Gardens would participate in the tenant phasing/relocation process as a means of Page 3 of 5