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While Danville and San Ramon have been involved with the program since its inception, recently they have decided against further financial support based on user data which shows the largest group of users being in Pleasanton, Livermore and Dublin. However, as part of this process, staff intends to develop a mechanism for obtaining financial support from these cities as a reimbursement for TVHOC provided services to residents in the two communities. DISCUSSION Over the past two years, TVHOC has been affected by the overall financial environment which has impacted its revenue raising efforts and its ability to sell a portion of its real estate holdings located in downtown Livermore. In addition to its office building noted above, the TVHOC also owns an occupied/rented affordable living unit located on the second story of its office building and an adjacent vacant commercial building located at 147-149 North Livermore Avenue. At the time of property acquisition it was expected that the commercial site would be sold and that proceeds would be used to help meet the cost of needed capital improvements to the office building and related debt. However, the commercial property has not sold due to the challenges facing the commercial real estate market. This situation is creating financial pressure for the TVHOC which has outstanding debt requiring immediate payment. In view of this situation, TVHOC approached the cities requesting the following: . A $155,000 loan to meet current/ immediate financial obligations, including payment of a seller's note, contractor fees for necessary building improvements, accrued property taxes and fees for preparation of financial audits. . A $100,000 pledge to assist with sale of its commercial property at 147-149 North Livermore Avenue in downtown Livermore. The sale of this property is critical to TVHOC financial health because it's unlikely that it will have the ongoing revenue to meet debt service. The pledge would essentially cover the cost of some real estate fees and a property write-down to bring the property more in line with the existing commercial market. . A $270,000 grant to be paid over three years to meet ongoing operating expenses Total Amount of TVHOC Request - $525,000 Detail of TVHOC's request for financial assistance is set forth in the September 28 letter from Milly Seibel, TVHOC Executive Director included as Attachment 2. Due to the complexity of these matters, over the past few months's staff from the three cities met collectively with the TVHOC Executive Director and Board representatives to fully analyze the extent and purpose of the financial assistance. The outcome of these discussions was a summary report that outlined various options for consideration. Based on discussions between the city managers, there has been agreement that the $155,000 loan is necessary to meet current debt obligations and to this end, an agreement has been prepared. However, while the agreement includes parameters for loan repayment terms, the city managers have not yet agreed upon the most Page 3 of 5