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THE CITY OF <br /> CITY COUNCIL AGENDA REPORT <br /> pL£ASANTONo <br /> March 20, 2012 <br /> Assistant City Manager <br /> TITLE: APPROVAL OF THE SECOND AMENDMENT TO THE LOAN AGREEMENT <br /> AND GROUND LEASE FOR THE PARKVIEW ASSISTED LIVING <br /> DEVELOPMENT <br /> SUMMARY <br /> The City and BRIDGE Housing (BRIDGE) collaborated to develop the 105-unit <br /> Parkview assisted living and memory care development located on City owned property <br /> at 100 Valley Avenue at Sunol Boulevard. The facility was funded in 2005 with a <br /> number of financial sources, including a $2,490,000 City loan, which assists in allowing <br /> it to provide 31 affordable assisted care units. In October 2010, BRIDGE finalized the <br /> development's permanent financing as was anticipated in the original project financing <br /> plan. As an outcome of the new financing, staff and BRIDGE determined it appropriate <br /> to amend the existing City Loan Agreement and Ground Lease to reflect the impacts of <br /> the permanent financing and to address some minor operational and language <br /> clarification issues to assure that financial auditors will have the documentation required <br /> to monitor the financial aspects of the City Loan Agreement. <br /> RECOMMENDATION <br /> Approve the Second Amendment to the Loan Agreement and Second Amend to Ground <br /> Lease <br /> FINANCIAL STATEMENT <br /> The establishment of a facility replacement reserve as an allowable operating expense <br /> to be used to meet the development's long-term capital needs, may impact the total <br /> amount of project surplus funds available to pay the City loan in any given year. <br /> However, securing this source of funding for long-term facility replacement and repair is <br /> a long term benefit to the development. <br />