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Other terms of the Option to Lease Agreement would remain the same, including the provision that Ridgeview Commons would continue to be used as affordable rental housing for a period of not less than 75 years. Additionally, the executed Option to Lease Agreement and the Amendment to Option to Lease Agreement will continue the agreed-upon Ground Lease terms by replacing the current land lease payment of$1 per year with a capitalized land lease payment matching the value of the land. Finally, since the 2019 Option to Lease agreement reflected the then-appraised land value ($2,945,000), a new appraisal is being completed by Eden Housing (expected to be complete in August 2023), and the valuation will be updated accordingly in the agreement. Regulatory Agreement and City Loans If City Council approves the extended Option to Lease Agreement, and if Eden Housing's resyndication application is successful, a new Promissory Note would be executed to formalize Eden Housing repaying this new residual receipt loan with a 75-year term. This Promissory Note, along with new regulatory and loan agreements, would need to be executed prior to Eden Housing closing escrow on its project financing (estimated Spring 2024). Finally, a new regulatory agreement would be executed to formalize the affordability levels of Ridgeview Commons while two existing City loans would need to be restructured with the new tax credit syndication in a new loan agreement. Such regulatory and loan agreements and other legal documents associated with the property would return to the City Council for review and approval. Partnership Documents As part of the new tax credit syndication, Eden Housing has formed a new partnership, Ridge View Commons Associates II, L.P. The current partnership, with City approval, will sell the property to a selected new equity investor limited partner which will invest equity in the rehabilitation of Ridgeview Commons in exchange for tax credits. Only the ownership of the improvements will be transferred, as the City remains the owner of the land. Housing Commission At its September 19, 2019, meeting, the Housing Commission unanimously supported the opportunity for Eden Housing to successfully refinance and resyndicate in order to complete substantial rehabilitation to the Ridgeview Commons property. The project overview and scope is unchanged from 2019. mitte y: Fiscal Review: Approved by: len Clark Susan Hsieh 4erry Beaudin Community Development Director of Finance Manager Director Page 3 of 4