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THE CITY OF 2 CITY COUNCIL AGENDA REPORT pLEASANTONo February 16, 2016 City Manager TITLE: APPROVAL OF A DISPOSITION AGREEMENT, USE AGREEMENT, AND RELEASE OF DECLARATION OF TRUST BETWEEN THE CITY OF PLEASANTON, PLEASANTON HOUSING AUTHORITY, AND THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR THE KOTTINGER PLACE PROPERTY AND AUTHORIZATION FOR THE CITY MANAGER TO SIGN ALL DOCUMENTS RELATED TO TRANSFER OF THE PROPERTY TO THE CITY SUMMARY On February 26, 2015, the U.S. Department of Housing and Urban Development ("HUD") approved the disposition of the 50-unit senior housing property located at 240 Kottinger Drive ("Kottinger Place") from the Pleasanton Housing Authority ("Authority") to the City for redevelopment as part of a new, 103-unit senior housing project proposed by MidPen Housing referred to as Kottinger Gardens. HUD's approval of disposition is contingent upon the parties executing a Disposition Agreement, Use Agreement and Release of Declaration of Trust (the "Agreements"). The Agreements describe terms and conditions for the sale and release of HUD's interest in the property. The Agreements are consistent with redevelopment plans previously approved by City Council for the property. RECOMMENDATION It is recommended that the City Council: 1) Approve a Disposition Agreement, Use Agreement, and Release of Declaration of Trust substantially in the forms attached to the resolution and subject to final form approval by the City Attorney and City Manager; and, 2) Authorize the City Manager to sign all documents related to the release of HUD's interest in the Kottinger Place property and to effectuate the transfer of the property to the City for the development of Kottinger Gardens. FINANCIAL STATEMENT Disposition of the Kottinger Place property from the Authority to the City will not generate sales proceeds. Under the terms of the proposed Disposition Agreement, which is consistent with the financial plan previously approved by City Council for Kottinger Gardens, the Authority will sell the property to the City for$1.00.