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currently appraised at $3,954,000. Anew Promissory Note would be executed to <br />formalize Eden Housing repaying this new residual receipt loan with a 75 -year term. <br />This Promissory Note, along with the other loan and regulatory agreements would be <br />reviewed and approved for execution when Eden Housing closes escrow on its project <br />financing in Spring 2020. <br />Partnership Documents <br />Eden Housing will be forming a new partnership, Ridge View Commons Associates II, <br />L.P. as part of the new tax credit syndication. The current partnership, with City <br />approval, will sell the property to a selected new equity investor limited partner who will <br />invest equity in the rehabilitation of Ridgeview Commons in exchange for tax credits. <br />Only the ownership of the tax credits, not the ownership of the land, will be transferred. <br />Regulatory Agreement and City Loans <br />A City policy interest continues to be the provision of affordable attractive housing with <br />amenities for seniors, and affordability levels would continue to be set forth and <br />enforced through a new regulatory agreement. The two existing City loans would need <br />to be restructured with the new tax credit syndication. The restructuring of these two <br />existing loans would be formalized in the new loan and regulatory agreement that would <br />be executed prior to the project's tax credit closing in Spring 2020. <br />Housing Commission <br />An overview of the refinancing and resyndication of Ridgeview Commons was <br />presented to the Housing Commission at its September 19, 2019 meeting. The <br />Housing Commission unanimously supported the opportunity for Eden Housing to <br />successfully refinance and resyndicate in order to complete substantial rehabilitation to <br />the Ridgeview Commons property. <br />RECOMMENDATION <br />Staff recommends that the City Council authorize the execution of the Option to Lease <br />Agreement, allow the City Manager and City Attorney to make minor modifications to <br />the agreement, and direct the City Manager to execute the agreement and any <br />necessary documents related to Eden Housing's application for the proposed tax credit <br />resyndication and rehabilitation of Ridgeview Commons. <br />Submitted by: <br />Brian Dolan <br />Assistant City Manager <br />Fiscal Review: <br />��� <br />Tina Olson ��� <br />Director of Finance <br />Approved�y: <br />�` <br />Nelson Fialho <br />City Manager <br />Attachments: <br />1) Resolution approving an Option to Lease Agreement with Eden Housing for <br />Ridgeview Commons <br />2) Draft Option to Lease Agreement <br />Page3of3 <br />