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Council obtain some financial data regarding the cost of maintenance, repairs, insurance, and the fees charged to the residents. Mr. McClure said the pool would cost $50,000 to build. This pool was expanded because it was felt that there will be children using it. He did not know what maintenance fees might cost or the cost of insurance. It is felt that if there isn't a pool built, the project will not attract the market rate renters. The lenders might even cancel out if there if no pool built. Mr. Pico mentioned a Yerba Buena Commons project in San Francisco that received 111 points ($15,700,000). San Francisco put in $4.8 million. He felt the Pleasanton project was $15,400,000 with Pleasanton putting in $5.8 million. San Francisco gets 246 units of affordable housing and Pleasanton gets only 68 units for about the same price. Mr. McClure stated the value of the land cannot be factored in because it will have a market rate lease on it. If the City had approved a 10055 affordable project, we'd have had 146 units. The City determined it wanted a mixed income project. Ms. Michelotti asked where is the risk for the developer? Mr. McClure stated that there is a $300,000 developer fee: $100,000 when the project closes, $100,000 when the project is completed and $100,000 when it is rented out. All of the $300,000 is at risk. There can be cost over-runs that can exceed the budget, rain delay, and an interest rate change; and the developers do not recover costs until year 11. The developer fee is there so that it can be calculated into tax credit basis. The equity that comes in is enhanced by that much more. Mr. Bocian commented that if the 15 year cash flow is looked at, it can be seen that the City is getting 75% of the project's cash flow from day one and that goes towards paying the principal. The City is also getting the equity from the investment partner starting in year one and those two sources together pay the principal. After the principal is paid off they start paying interest on those loans and advances. The developer fee does not have any significant payments until year six or seven and doesn't get paid off until year eleven. The City has a higher priority than the deferred developer fee. If there are cost savings with the project the savings would go to pay back the City's loan. If the developer were not able to make the equity contribution that is indicated, then 100% of the cash flow goes towards making that. It that is met, 75% of the cash flow goes toward paying off the loan. The difference is that the developer is not agreeing to taking every part of the cash flow but putting it towards the repayment of the loan if they are meeting the base equity payments. Ms. Michelotti asked about the Ridge View Commons loan. Mr. Bocian commented the Ridge View Commons cost is $9.3 million; $4 million is from a HODAG loan. We leased the land for $1 and waived all fees for that project and the City agreed to pay back all of the investor equity that was received out of the project to meet 08/22/95 -20-