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Mike Madden, 5955 Coronado Lane, representing Red Bear, Inc., thanked the City staff <br />for all its help on this project. He felt this project will benefit the City of Pleasanton. There <br />is a real shortage of affordable housing for seniors. Right now he has 70 names on a waiting <br />list for this project and Red Bear has not done any type of solicitation or advertising. He felt <br />once the project is completed, it will be a true enhancement to the neighborhood. He stat~l <br />10% of the project will be at the very low income level, 40% of the project is at the 60% of <br />median income, and the remaining 50% of the units will be at the low income level. ~ is <br />ready to build in 1996 in whatever manner growth management will allow. As far as sound <br />mitigation, his project goes as far as other projects in the area. <br /> <br /> Ms. Mohr wanted to get as many very low income units as possible and was hoping for <br />more than 10%. If three or four units were given back from what has been taken out, where <br />would the units be placed? She felt very low income units are almost impossible to create in <br />Pleasanton. <br /> <br /> Mr. Madden replied he has worked with the neighbors to get an acceptable design and <br />if he agreed to more units, he felt he would be going back on his word to the neighbors. If <br />there were some way to get a low interest loan from the city, then the affordability could be <br />bumped up; however that has not been explored at any length. <br /> <br /> Ms. Michclotti stated that if there were interest in more lower income units, it would be <br />beneficial to explore that with the City Manager and Council. It could be a means of getting <br />more people in the 60% of median income bracket. <br /> <br /> Ms. Mohr stated there might be a way to use the low income funds. If some potion of <br />the low income funds were used in the form of a trust, the interest generated off that could be <br />used similar to a Section 8 type of subsidy. In that case, it would not be a loan to the builder, <br />it would take the form of a subsidy to a particular tenant. Would this project be a good one to <br />see if that concept would work? <br /> <br /> Mr. Bocian stated that staff has checked into the maximum amount of very low income <br />units that would be possible. He felt it had been successful in getting at least eight of the units <br />at very low income and 35 units at low income. As to the possibility of a direct tenant subsidy <br />program, the City has shied away from that because it is felt that the City can be equally <br />successful with trying to work with the up front costs which in turn lead to long term lower <br />rents. If Council would 12_~ke this explored further, staff can meet with the developer, develop <br />a few plans and bring it back to Council. <br /> <br /> Mr. Madden said he will work as hard as staff to get maximum affordability out of this <br />project. <br /> <br /> Ms. Michelotti asked how much have rents been raised on the St. Mary's Street project? <br />Have there been increases all along? <br /> <br />01/02/96 -6- <br /> <br /> <br />