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it was very clear that the project depended upon working its way through the normal planning process. It did not want to cut any corners on that process; it wanted to make sure it was open and typical of what the City does. MidPen Housing has been working very closely with Planning staff as any other developer would. While the Council has seen the project and likes the project, it still wants the project to go through this process. HUD approval of the Demolition and Disposition application process, which is currently in the pre - application process. MidPen Housing expects to submit the formal application within 30 days, and it takes about 30 -45 days to get an answer. This is the most critical step in the process. If HUD's answer could be: "Yes, move ahead, and here is some potential financing" or "No, we want to keep the asset." MidPen Housing has put together a very solid preliminary application, and all of the work that has been done with the community to date supports moving towards a new development. Project financing. This is basically a 9- percent tax - credit project, and what that means is that it will be a very competitive process. All the players involved — staff, MidPen Housing, and the Task Force — think that there is a very good chance to get approved. Approval of the Ground Lease. The City will enter into a long -term ground lease identifying MidPen Housing as the Lessee, who will own the site improvements and also act as the property manager and operate it in accordance with the terms the City sets forth in the ground lease. The ground lease has not yet been negotiated, but the DDA has an outline; and the most critical element and most important focus is that the City will have a quality development that provides low- income units to those individuals who need them. Commissioner Ritter inquired if, after the projects are consolidated, the 501(c)3 will end up being owned by the City. Mr. Bocian replied that the 501(c)3 will most likely go away or be put to another use, but that site will be owned by the City. Commissioner Ritter further inquired if it will eventually be one entity. Mr. Bocian said yes; the ownership will be transferred to the City. He explained that through the process, the Housing Authority will be moved out and both of the parcels will be owned by the City. Commissioner Allen inquired if her understanding is correct that the City will not have any on -going financial obligations. Mr. Bocian replied that was correct. PLANNING COMMISSION MINUTES, March 12, 2014 Page 5 of 24