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THE CITY OF r� an la wn+� pL �sS�.15. m CITY COUNCIL AGENDA REPORT December 6, 2016 City Manager TITLE: APPROVING A PURCHASE AND SALE AGREEMENT WITH PLEASANTON GARDENS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS AND TAKE ALL STEPS RELATED TO THE TRANSFER OF THE PROPERTY FOR KOTTINGER GARDENS PHASE II SUMMARY The Disposition, Development and Loan Agreement executed with MidPen Housing to develop the Kottinger Gardens project included a Memorandum of Understanding ("MOU") that established the terms of cooperation between the City and Pleasanton Gardens for transfer and development of their property In accordance with that MOU, the City and Pleasanton Gardens have now negotiated the terms of a Purchase and Sale Agreement ("PSA") which will transfer the housing site and the project's operating reserve funds to the City Transfer of the site is contingent upon MidPen Housing, the developer of Kottinger Gardens, securing all of the financing necessary to commence with the development of Phase 2 RECOMMENDATION It is recommended that the City Council adopt a Resolution approving the Purchase and Sale Agreement with Pleasanton Gardens, Inc , and, authorizing the City Manager, Nelson Fialho, or his designee, to execute such additional documents and to take all steps necessary to implement the transaction that are consistent with the terms of the Purchase and Sales Agreement FINANCIAL STATEMENT The proposed PSA would transfer ownership of the Pleasanton Gardens project to the City along with any project operating reserves to the City Project reserves are estimated to be approximately $300,000, which in accordance with the PSA would be contributed by the City to Phase 2 Reserves would also be used to pay for the City's share of customary escrow costs incurred to transfer the property The transfer of the Pleasanton Gardens property to the City will not incur any costs to City Funds, including the Lower Income Housing Fund and General Fund, other than the one dollar purchase price