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Councilmember Brown asked whether the DIDA properly indemnifies the city against any incident related to the relocation and housing of seniors or the city's role as a lien holder on such a project. Mr. Lowell said the DDA contains what he considers an appropriate transfer of risk. Section 3.1 includes a general hold harmless and indemnification provision that transfers risk to MidPen and holds harmless the city. Section 9.6 also specifically contemplates relocation of the residents and provides that MidPen hold harmless and indemnify both the city and Housing Authority in conjunction with that activity. Councilmember Narum referred to Exhibit D, Ground Lease Term Sheet, which states that title in the improvements will vest with the lessee during terms of the lease. She asked and Mr. Bocian confirmed that this means the city would own both the site and its improvements at the end of the 55 year term. Mr. Bocian explained that the specific terms of the ground lease have yet to be determined, but that staff does expect the typical 55 year term. Staff does not, however anticipate ever owning the development and instead expects that an extension of the ground lease would be renegotiated near the end of that term. Councilmember Narum referred again to Exhibit D, which indicates that 49% of units are to be income restricted at 30% to 60% of AMI. She asked how the remaining 51% would be broken down. Mr. Bocian said the rent mix has yet to be determined but the intent is somewhere between 30% and 50% of AMI. Councilmember Narum noted the terms indicate that MidPen has 120 days to cure defaults, yet throughout the agreement and in the presentation it was stated that if available cash flow is insufficient the loan will be forgiven. Mr. Bocian explained that Exhibit D refers to the ground lease, which includes use of the property and provisions relative to how the property is used. The loan agreement is separate. Under the ground lease, a default could constitute use of the project for market rent units, improvements being transferred to another entity without the city's approval or any other non monetary default. Abby Golclware, Project Manager with MidPen, thanked the task force, residents and neighbors for all their input. She introduced key members of MidPen staff and invited Lauri Moffet-Fehlberg with Dahlin Group Architecture to review the site plan. Ms. Moffet-Fehlberg stated that one of the primary focuses was to create one united community between the two sites. She reviewed the site plan and elevations, noting a cottage-like four-sided architecture throughout the project, and presented several slides of proposed floor plans. Councilmember Brown noted the project site's proximity to the downtown. She asked whether safety was a concern, both pedestrian safety and community security, and what was done to address this. Ms. Moffeir-Fehlberg said they spent considerable time working on the connection at Kottinger Drive in terms of safety and connectivity. Even now they are working with city staff to explore various traffic calming measures and pedestrian modes of engagement in order to allow the community to flow in a safe manner. With regards to security, she explained that management space was deliberately located in prominent areas. This high visibility, coupled with MidPen's very strong and competent management staff, should provide a very safe and secure community. Mayor Thorne invited public comment. City Council Minutes Page 10 of 13 November 5, 2013