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Development Name As part of the overall financing and plan review process, it will be beneficial to name the proposed development so that it can be referred to in various documents. The Task Force recommended and approved the name "Kottinger Gardens" as it retains the history of both developments. In view of this action, staff is recommending endorsement of the Task Force's naming of the development. Disposition, Development and Loan Agreement (DDA) Included as Attachment 2 is the recommended DDA with MidPen that memorializes its role as the project developer, future owner and operator of site improvements, and anticipated lessee of the site(s). It also sets forth conditions of performance and establishes the relationship between MidPen, the City and the Housing Authority of the City of Pleasanton (Housing Authority), and outlines conditions for a $2.8 million predevelopment loan. The City has previously utilized DDA's for its Parkview, Ridge View Commons and Promenade properties as it represents the appropriate legal means for establishing a relationship between the parties until the ground lease, regulatory agreement and permanent financing are put into place. In addition, predevelopment loans have also been employed previously and reflect a non-profit's interest in securing funds to further the project during the entitlement and funding process, and the City's recognition of the costs involved with conducting this effort. A summary of some of the most significant DDA terms are as follows: MidPen is obligated to: . Make a diligent effort to secure project financing • Assist the Housing Authority with securing approval of HUD for the demolition and disposition of Kottinger Place and related HUD approvals . Conduct environmental review and development-related studies required for the PUD • Process the PUD and obtain all land use permits and approvals . Prepare construction related documents . Prepare a tenant relocation plan and coordinate tenant relocations as needed • Construct the development consistent with approved plans and provide property management services after construction . Maintain a development schedule and keep the City informed of project progress The City (and/or its Housing Authority) is obligated to: . Provide a loan of up to $10 million to support the development (including approximately $7.2 million for construction and development costs and a predevelopment loan of $2.8 million covering predevelopment costs including architectural, engineering, studies, etc,) . Endeavor to secure the Pleasanton Gardens site and transfer its HUD Section 8 rent subsidy contract to the new development . Ground lease the site (including Pleasanton Gardens) for $1 annually for a term of no less than 55 years (the terms of the ground lease will be developed consistent with PUD review) Page 5 of 9