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restricted as an affordable unit. The 147-149 North Livermore Avenue building("Commercial Space") is a 2,850 square- foot commercial building built in 1968, with three individual office/shop spaces ranging from 650 to 900 square feet that are currently rented at market rate.At the time of purchase, both buildings were included in a single parcel. The lots have subsequently been redrawn to allow for the separation and independent sale of the buildings. In order to pay off the NCCLF and Seller notes the property was listed with Colliers International in July 2010. Unfortunately, the downturn in the real estate commercial market has impacted the Center's plan. Since the property listing, the commercial real estate market has been extremely slow to recover. The property has been on the market for two years with no tangible offers. In July 2012,the Board listed the property with Fracisco Realty, a realty group that specializes in commercial properties in Livermore. With the change in representation,the realtor provided a broker's opinion that the property, with its existing zoning, has a market value of up to $650,000. Although a recent appraisal listed the property value at $725,000, there has been little interest in the property. Challenges that vie have identified that impact the sale of the property are: 1)the property is tucked away and is considered a"destination" location suited for a business that doesn't need main street exposure; and 2) the property's cinder block construction is not very attractive. To stimulate Interest in our property, the Center believes that reducing the price would incentivize an investor to purchase the property. The Center received a six month loan extension from NCCLF to allow the Center time to aggressively market/sell the building. The original seller, Mrs. DeBorba-Smith, has advised that she cannot extend the seller's note which matured in June 2012. Mrs. DeBorba has indicated a willingness to extend the note to September 4, 2012. With accrued interest this note totals $64,000. The loan from the City of Livermore remains in effect and is secured by the Center's main building and is not part of the restructuring plan. Funding Request The Center is requesting a loan from the cities of Dublin,Livermore and Pleasanton in the amount of$155,000 to cover residual financial obligations from the 2010 reorganization; up to $100,000 to be held in trust to facilitate the anticipated costs associated with the sale or refinancing of the commercial portion of the property (147-149 N Livermore Avenue);and,$30,000 per jurisdiction per year for the next three years for general operations. The$155,000 funding request would consolidate these outstanding obligations: Seller's note payable to Mrs. DeBorba $ 64,000 Contractor's note payable to JM O'Neill $ 45,000 Accrued Property Taxes payable to Alameda County $ 35,000 2011 Financial Audit payable to Karlsson&Lane* $ 11,000 $155,000 *Audit for 2011 Financials-Prior to engaging on auditor to review the 2011 financials, the Center applied for and was granted funds to cover the costs by the Tri-Valley Community Foundation(TVCF).The TVCF is not able to fulfill our grant award. The$100,000 funding request for funds to be held in trust would be applied to the sale/refinance of the building: Realtor commission $ 34,000 Closing Costs $ 3,000 Gap to incentivize sale** $ 63,000 $100,000 **Gap to incentivize the sale-This gap funding will cover the difference in the expected sale price and the amount of the NCCLF mortgage (approximately$63,000). The Center expects that this will motivate a buyer to purchase the property.As the commercial real estate market is still recovering, it is unsure if the property will sell by the end of the year which is why the loan request has both a refinance and sale component listed. Page 3