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<br />Executive Summary <br /> <br />The Redevelopment Agency of the City of San Leandro ("Agency") has endeavored to <br />develop, reconstruct or rehabilitate the deteriorated and blighted conditions and areas that exist <br />within the community which act as a barrier to new investments by private enterprises. The City <br />Council decided to utilize the redevelopment process, as authorized in the State Community <br />Redevelopment Law, Health and safety Code S33000 et seq., as the principal means to achieve <br />this goal. <br /> <br />In 1993, the City of San Leandro adopted the Alameda County-City of San Leandro <br />Redevelopment Project Area by Ordinance 93-012. Over the years, the Agency has provided <br />low-interest loans to property owners within the Redevelopment Project Area in order to <br />encourage property improvement with the overall goal of eliminating blighted conditions. The <br />Islander Motel Lodge is a 68-unit motel situated at 2398 East 14th Street in San Leandro within <br />the Redevelopment Project Area. The City of San Leandro and the San Leandro Police <br />Department identified the motel as a property that experienced a high amount of crime and vice. <br />Efforts dating back to 1995 oore made to work with the motel O'Mler to eliminate the blighted <br />conditions which include criminal activity and various health and safety issues. <br /> <br />By May of 2005 the Agency recognized that no significant improvement had been made <br />to mitigate the blighted conditions. The Agency then determined to enter into negotiations with <br />the owner of the Islander Motel Lodge with the goal of purchasing the property and converting <br />the property into affordable housing. On May 23, 2005 the property owner and the Agency <br />entered into a purchase agreement with an anticipated closing date of September 22, 2005. <br /> <br />The Agency expects to enter into an Exclusive Negotiating Rights Agreement and a <br />Property Management Agreement with Mercy Housing. In the short term, Mercy Housing's <br />property management company, Mercy Services Corporation, intends to manage the property for <br />the Redevelopment Agency. Eventually, Mercy Housing is expected to own and rehabilitate the <br />property to create rental units that will be made available to persons of Low and Very Low <br />Income. Mercy Services Corporation will manage the property in a professional manner in order <br />to create a decent, safe and sanitary living environment for the occupants. <br /> <br />Between June and August of 2005, the Agency conducted various inspections of the <br />property in order to investigate the condition of the motel and to identify any health and safety <br />issues that needed to be addressed. In August of2005, the Agency was advised that the health <br />and safety issues were too severe to allow for continued, long-term occupancy of the building. <br />Contractors recommended to Agency staff that all occupants be required to move from the <br />building as soon as reasonably possible to allow for significant rehabilitation. <br /> <br />During the week of May 23, 2005 each existing weekly occupant of the motel was given a <br />General Information Notice that described the Agency's efforts to purchase and convert the <br />motel. The Notice encouraged the occupants to remain at the motel. A EW weeks later each <br /> <br />Relocation Impact Study and Last Resort Housing Plan <br />Page 1 <br />