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The Lease Option provides that the Ridgeview would continue to be used as affordable rental <br />housing for a period not less than 75 years. Additionally, the draft Option to Lease Agreement <br />contemplates replacing the current land lease payment of $1 per year with a capitalized land <br />lease payment matching the value of land, which is currently appraised at $3,954,000. A new <br />Promissory Note would be executed to formalize Eden Housing repaying this new residual <br />receipt loan with a 75 -year term. This Promissory Note, along with the other loan and <br />regulatory agreements would be reviewed and approved for execution when Eden Housing <br />closes escrow on its project financing in Spring 2020. <br />Ownership <br />Eden Housing will be forming a new partnership as part of the new tax credit syndication. The <br />City would be approving the transfer of the property to this new partnership once the housing <br />tax credits investor limited partner has been selected. <br />City Loans <br />The two existing City loans would need to be structured into a new tax credit syndication. The <br />restructuring of these two existing loans would be formalized in the new loan and regulatory <br />agreements that would be executed prior to the project's tax credit closing in Spring 2020. <br />STAFF RECOMMENDATION <br />This report is for the Commission's information only. No specific action is required at this time, <br />though, the Commission is welcomed to provide feedback on the refinancing and resyndication <br />of Ridgeview Commons. <br />All other documents relating to the Ridgeview refinance and resyndication referenced in this <br />Agenda Report would be presented to the Commission and City Council prior to execution. <br />Page - 2 - <br />