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THE CITY OF <br /> 22 <br /> _ - 2 <br /> T "'" CITY COUNCIL AGENDA REPORT <br /> PL£ASANTON. <br /> May 6; 2014 <br /> Assistant City Manager <br /> TITLE: APPROVE THE SUBMISSION OF A $125 MILLION SECTION 108 LOAN <br /> APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN <br /> DEVELOPMENT (HUD) TO PROVIDE FINANCIAL ASSISTANCE TO THE <br /> AXIS COMMUNITY CLINIC EXPANSION PROJECT; AND AUTHORIZE <br /> THE CITY TO ENTER INTO A PUBLIC PARTICIPATING JURISDICTION <br /> (PPJ) AGREEMENT WITH THE CITIES OF LIVERMORE AND DUBLIN <br /> AND THE COUNTY OF ALAMEDA TO REPAY THE LOAN <br /> SUMMARY <br /> This report summarizes a proposal that the City of Pleasanton (as lead agency) apply <br /> for a Section 108 loan in the amount of $1.25 million to provide funding for the <br /> improvement of the new clinic building acquired by Axis Community Health.. The <br /> project, which is addressed as a key priority in the Tri-Valley Human Services Needs <br /> assessment, would enable Axis to more than double its capacity to serve low-income <br /> area residents and better meet the challenges of evolving health care needs. <br /> Repayment of the loan would be shared by the cities of Pleasanton, Livermore, and <br /> Dublin, and the County of Alameda. <br /> RECOMMENDATION <br /> Authorize the City Manager to: <br /> 1. Submit a $1.25 million Section 108 loan application to HUD; and <br /> 2. Enter into a Public Participating Jurisdiction (PPJ) agreement with the cities of <br /> Livermore and Dublin and the County of Alameda to memorialize collaborative <br /> repayment terms for the loan. <br /> FINANCIAL STATEMENT <br /> If approved by HUD, the City would enter into an agreement for a $1.25 million <br /> Section 108 loan with a 20-year term and annual payments of approximately $62,500. <br /> The City would also enter into a PPJ agreement with Livermore, Dublin, and Alameda <br /> County to share repayment of the loan. Pleasanton's share of the principal amount of <br /> the loan would be approximately $338,442. The City could repay its share of the loan <br /> annually (at approximately $16,922 per year for 20 years) or in one or more lump sum <br /> payments.. The primary repayment source would be the City's annual allocation of <br /> federal CDBG (Community Development Block Grant) funds. A secondary source <br /> would be the portion of the General Fund allocated annually for human services. <br />