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FINANCIAL STATEMENT Property Taxes, Services, and Impact Fees As a low-income housing project, the development qualifies for a property tax exemption, therefore it would not result in new property tax revenue and would not contribute financially for any increased demand for services such as police, fire, etc. However, the applicant would have to pay development impact fees (eg., in -lieu park dedication fee, public facilities fee, traffic fees, water/sewer connection fees, etc.) used to pay for the cost of new City facilities and infrastructure attributable to the development. Lower Income Housing Fund Consistent with the City Council's goal and priority to support Sunflower Hill, the Council approved an Exclusive Negotiating Rights Agreement (ENRA) between the City and Sunflower Hill. The ENRA includes the City's commitment to contributing $2,250,000 from the lower-income housing fund (LIHF) and the use of the 1.64 acre parcel for the project. The FYI 2017/18 Capital Improvement Program (CIP) allocates $2,250,000 from the LIHF to the Sunflower Hill project. In addition, Sunflower will be applying for the allocation of $7,195,844 of the City's "Base City Allocation" from the Alameda County Measure Al Housing Bond (Measure Al funding) to assist in financing of the Project. A complete discussion of the financing has been provided in the corresponding agenda report to be reviewed by City Council. BACKGROUND Irby Ranch Development In February 2017, the City Council approved the Irby Ranch development, a PUD development plan (PUD -110), General Plan Amendment, Downtown Specific Plan Amendment, Rezoning, Vesting Tentative Map, Growth Management Agreement, Affordable Housing Agreement, and Development Agreement allowing for the construction of 87 single-family homes and the set-aside of land for a future affordable residential community for individuals with special needs. The site plan for Irby Ranch is shown below in Figure 1. As outlined within the Development Agreement and Affordable Housing Agreement (AHA) for PUD -110, the developer is required to dedicate the 1.64 -acre property to the City and contribute $1,000,000 to the City to support the development of affordable housing on-site. Under the terms of the approved agreements, the Irby Ranch developer will retain ownership and maintenance responsibilities of the subject property until the property is needed for the Sunflower Hill development. Page 2 of 10