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BACKGROUND The HBP is responsible for maintaining the landscaped area that is bordered by Interstate-580 to the North, Tassajara Creek to the East, the Arroyo Mocho Canal to the South, and Hopyard Road to the West (see attached map). City staff and HBP agree that the HBP landscaped area should be renovated and have worked together to develop a landscaping plan that is expected to cost $732,548 to install. HBP has insufficient reserves to cover the $732,548 and asked the City to provide a loan to fund the project. Since the HPB's landscaped areas are in the City's right- of-way, the improvements would provide a benefit to the City's residents and visitors that use HBP by making the area more aesthetically pleasing. As such, it is in the City's interests to provide a loan to HBP to fund the landscaping improvements. DISCUSSION The attached Agreement sets out the terms of the proposed loan to the HBP and is summarized as follows: 1. HBP will contract with a landscape contractor to install improvements that the City has approved. 2. HBP will execute the Agreement and Promissory Note for the $732,548 loan. 3. An annual interest rate of 2.72 percent. 4. Payments are due monthly commencing on January 1 , 2020 and continuing for 120 months. 5. There will be a 5 percent penalty for payments not made within 30 business days of the due date. 6. There will be no prepayment penalty. Staff recommends that the City Council approve the Agreement and Promissory Note, direct the City Manager to execute the documents in generally the form as shown in the attached, and appropriate the loan funds from the Downtown and North Pleasanton CIP Reserve Fund (Fund 202) to fund the loan. Jointly Submitted by: Approved /11 rig 30A Tina Olson Steve K atrick Nelson Fialho Director of Finance Director of Engineering City Manager Attachments: 1 . Hacienda Business Park Loan Agreement 2. Promissory Note 3. Map of Hacienda Business Park 4. Hacienda Landscape Restoration Plan