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own and hire somebody to manage it for us, so that the City owns the project from the first day and tuntract out with someone to ~nanage it. He expressed concern that in the past the City has put up all of the money, carried all of the risk and an agency who is partnering with the City is not really a partner in terms of any financial conunitment. Why can't the Cit~ own 100% of this project or why doesn't the City get the financing, just as the other agency can get the financing. Why can't the City own it, construct it and have BRIDGE, or someone similar, operate it? It seemed to him that the City is basically asstiming all of the equity and no one else is putting up any dollars. He has a hard time with any agreement where the City is assuming all of the risk, putting up all of the money and someone else is sharing ownership. He definitely wanted to see Pleasanton get into the assisted living project, but this kind of financial structure is not what he would like to see. If Pleasanton is going to put up all of the risk and put up the land, he would like to see Pleasanton own the building and contract it out, Hc feels uncomfortable authorizing an agreement without having looked at other options. He asked if the ttousing Commission has looked at other options, Mr. Bocian said that BR1DcaE indicates that it has other investors in line that may be interested in providing the loan. The City has the option of doing the project on its own, but the City has generally not been in the business of running projects. He felt that the City would be reluctant at this time to assume that responsibility. If the City entered into a cone'act to find someone to operate the project, the City will still be assuming all of the potential issues with the debt of the loan. Other options can certainly be further explored throughout this ~vhole process, but the City has not entered into this process with the assumption that the City would be in the assisted living business. That represents a significant service change for the City to be operating a building such as this. He explained that there will be agreements in place outlining the City's role throughout the life of the project. An issue yet to be resolved is the ownership of the project and what the City's role will be in terms of long term operations. Also involved is the sharing of the cash flow of the project. BR1DGtE has indicated a willingness to work with the City regarding the cash flow- to make sure that the City's investment in the project is appropriately covered and to insure that aftbrdable rents are in place for the life of the pmject. Ms. Dennis expressed her understranding that the City's role is to use the resources the City has to bring forward any project that serves the Pleasanton community. Mr. Bocian said that both staff and the commissions that have looked at this project feel that this is the best proposal that we have had. Getting affordability in assisted living projects is a very costly undertaking and difficult to put into place. The financing is very limited, along with projects of this nature being very difficult to operate. Mr. Bocian explained that the financing that will be pursued requires the transfer of the ownership of the property. Mayor Tarver declared the public hearing open. Pleasanton City Cotmall 7 09/05/00 Minutes