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THE CITY OF 2
<br /> aanaiaal.a. 1, aaa CITY COUNCIL AGENDA REPORT
<br /> pLEASANTON0
<br /> October 17, 2017
<br /> City Manager
<br /> Housing Division
<br /> TITLE: APPROVAL OF A LOAN OF $2,825,360 OF LOWER INCOME HOUSING
<br /> FUNDS AND PLEASANTON GARDENS RESERVE FOR KOTTINGER
<br /> GARDENS PHASE 2, AND AUTHORIZATION FOR THE CITY MANAGER TO
<br /> EXECUTE ALL DOCUMENTS AND TAKE ALL STEPS RELATED TO THE
<br /> LOAN FOR THE PROJECT
<br /> SUMMARY
<br /> In November 2013, the City Council approved a Disposition, Development and Loan
<br /> Agreement with MidPen Housing Corporation ("MidPen"), which was further amended
<br /> on June 16, 2015, (collectively, the "DDLA") for the Kottinger Gardens, a 185-unit,
<br /> phased, senior housing development (the "Project"). City Council approved a Lower
<br /> Income Housing Fund (LIHF) loan commitment to the Project of up to $13,750,000
<br /> through the DDLA Phase 1 of the Project (Kottinger Gardens Phase 1), which consists
<br /> of 131 units, is nearing completion, and MidPen is mobilizing in securing the financing
<br /> plan for developing the other 54 units in Phase 2 of the Project (Kottinger Gardens
<br /> Phase 2) Of the original $13,750,000 LIHF loan, there is a remaining balance of
<br /> $2,575,360, which along with $250,000 from the Pleasanton Gardens operating
<br /> reserve, will be provided as a loan totaling $2,825,360 to Kottinger Gardens Phase 2
<br /> Associates, L P , a MidPen affiliate, who will serve as developer for Kottinger Gardens
<br /> Phase 2
<br /> RECOMMENDATION
<br /> It is recommended that the City Council adopt a resolution approving the Ground Lease,
<br /> the Regulatory Agreement, the Loan Agreement, the Promissory Note, and Assignment
<br /> Agreement, (collectively the Loan Documents) and authorizing the City Manager to
<br /> execute each such document substantially in the forms attached to the resolution, with
<br /> such modifications as may be approved by the City Manager in consultation with the
<br /> City Attorney
<br /> FINANCIAL STATEMENT
<br /> Per the approved DDLA, $13,750,000 from the Lower Income Housing Fund has been
<br /> approved to be appropriated to the development of Kottinger Gardens Phase 1. The
<br /> $2,575,360 LIHF loan is simply the remaining balance from the original loan for
<br /> Kottinger Gardens Phase 1 which will now be contributed to Kottinger Gardens Phase
<br /> 2 Additionally, $250,000 from the Pleasanton Gardens operating reserve will be
<br /> transferred to the City from Pleasanton Gardens, Inc., the current owner of Pleasanton
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