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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2006-058 (3059) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LEANDRO AUTHORIZING THE LEASE OF REAL PROPERTY TO MERCY HOUSING CALIFORNIA XXXIII, APPROVING THE REUSE REPORT REQUIRED BY HEALTH AND SAFETY CODE SECTION 33433, AND ADOPTING FINDINGS IN CONNECTION WITH SUCH CONVEYANCE WHEREAS, by Resolution No. 93-012 adopted on July 12, 1993, the Redevelopment Agency of the City of San Leandro (the "Agency") established the Alameda County-City of San Leandro (Joint) Redevelopment Project Area ("Project Area") and adopted a redevelopment plan for the Project Area (as thereafter amended, the "Redevelopment Plan"); WHEREAS, pursuant to an Exclusive Negotiating Rights Agreement authorized by Resolution adopted in September 2005, Agency staff have negotiated the terms and conditions under which Mercy Housing California XXXIII, a California Limited Partnership ("Developer") (an affiliate of Mercy Housing California, a California nonprofit ~ublic benefit corporation) would lease and rehabilitate the property located at 2398 East 14\ Street (the "Property") as a 68-unit multi-family housing development affordable to very low- and extremely low-income households (the "Project"); WHEREAS, the Project, the Property and the terms and conditions for development and financing of the Project are more particularly described in a proposed Disposition and Development Agreement (the "DDA") and Ground Lease (the "Ground Lease") copies of which have been provided to the Agency and the City Council; WHEREAS, the Project involves the rehabilitation of an existing structure to provide affordable housing to low-income households and therefore is exempt from the California Environmental Quality Act ("CEQA) pursuant to CEQA Guidelines Sections 15301 and 15302; WHEREAS, in order to increase the economic feasibility ofthe Project, the Developer has requested that the City permit Developer to defer payment of City fees until the Property is conveyed to Developer pursuant to the Ground Lease; WHEREAS, California Health and Safety Code Sections 33430 and 33431 provide that a redevelopment agency may sell or lease real property without public bidding provided the agency holds a public hearing following publication of notice; WHEREAS, California Health and Safety Code Section 33433 provides that prior to a redevelopment agency's sale or lease of property acquired with tax increment funds (i) the agency must prepare and make available to the public a report (the "Reuse Report") describing the terms of the conveyance and development of the property, (ii) the legislative body must hold 803837-4