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THE CITY OF 2 <br /> aanaiaal.a. 1, aaa CITY COUNCIL AGENDA REPORT <br /> pLEASANTON0 <br /> October 17, 2017 <br /> City Manager <br /> Housing Division <br /> TITLE: APPROVAL OF A LOAN OF $2,825,360 OF LOWER INCOME HOUSING <br /> FUNDS AND PLEASANTON GARDENS RESERVE FOR KOTTINGER <br /> GARDENS PHASE 2, AND AUTHORIZATION FOR THE CITY MANAGER TO <br /> EXECUTE ALL DOCUMENTS AND TAKE ALL STEPS RELATED TO THE <br /> LOAN FOR THE PROJECT <br /> SUMMARY <br /> In November 2013, the City Council approved a Disposition, Development and Loan <br /> Agreement with MidPen Housing Corporation ("MidPen"), which was further amended <br /> on June 16, 2015, (collectively, the "DDLA") for the Kottinger Gardens, a 185-unit, <br /> phased, senior housing development (the "Project"). City Council approved a Lower <br /> Income Housing Fund (LIHF) loan commitment to the Project of up to $13,750,000 <br /> through the DDLA Phase 1 of the Project (Kottinger Gardens Phase 1), which consists <br /> of 131 units, is nearing completion, and MidPen is mobilizing in securing the financing <br /> plan for developing the other 54 units in Phase 2 of the Project (Kottinger Gardens <br /> Phase 2) Of the original $13,750,000 LIHF loan, there is a remaining balance of <br /> $2,575,360, which along with $250,000 from the Pleasanton Gardens operating <br /> reserve, will be provided as a loan totaling $2,825,360 to Kottinger Gardens Phase 2 <br /> Associates, L P , a MidPen affiliate, who will serve as developer for Kottinger Gardens <br /> Phase 2 <br /> RECOMMENDATION <br /> It is recommended that the City Council adopt a resolution approving the Ground Lease, <br /> the Regulatory Agreement, the Loan Agreement, the Promissory Note, and Assignment <br /> Agreement, (collectively the Loan Documents) and authorizing the City Manager to <br /> execute each such document substantially in the forms attached to the resolution, with <br /> such modifications as may be approved by the City Manager in consultation with the <br /> City Attorney <br /> FINANCIAL STATEMENT <br /> Per the approved DDLA, $13,750,000 from the Lower Income Housing Fund has been <br /> approved to be appropriated to the development of Kottinger Gardens Phase 1. The <br /> $2,575,360 LIHF loan is simply the remaining balance from the original loan for <br /> Kottinger Gardens Phase 1 which will now be contributed to Kottinger Gardens Phase <br /> 2 Additionally, $250,000 from the Pleasanton Gardens operating reserve will be <br /> transferred to the City from Pleasanton Gardens, Inc., the current owner of Pleasanton <br />