RDA Reso 2006-003 - Laserfiche WebLink

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the terms of the lease and development of the property, (ii) the legislative body must hold a public hearing following notice, and (iii) the legislative body must approve the conveyance by a resolution adopting specified findings; WHEREAS, the Agency has caused a Reuse Report to be prepared, and the Agency and the City Council have caused notice to be published and have conducted public hearings in accordance with all legal requirements; WHEREAS, the City Council has approved the Reuse Report, has approved the lease of the Property pursuant to the DDA, and has adopted the findings required by Section 33433 of the Health and Safety Code; WHEREAS, the Developer and Agency staff have determined that it will not be economically feasible to rehabilitate and operate the Project at the proposed level of income- targeting and affordability without financial assistance from the Agency, and despite good faith efforts on the part of Developer, no other reasonable means of private or commercial financing is reasonably available to finance the Project at such affordability and income levels; WHEREAS, the proposed Agency financing for the Project includes a construction/permanent loan in the maximum amount of $884,000 (the "Loan") and a commitment to provide operating subsidies in the maximum aggregate amount of $5,712,709 (the "Operating Subsidy") if required to maintain Project feasibility at affordable rents during the first 30 years of Project operations; WHEREAS, Developer and Agency staff have negotiated the terms and conditions of a Loan Agreement addressing use and disbursement of the Loan proceeds (the" Loan Agreement"), a Secured Promissory Note (the "Note") which provides for repayment of the Loan on a residual receipts basis, an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants ("Regulatory Agreement") which restricts rents for units in the Project at affordable levels for a period of 55 years, and a Leasehold Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the "Deed of Trust") pursuant to which the Agency will be provided a security interest in the Property and the Project to secure repayment of the Loan and compliance with the Regulatory Agreement. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Leandro hereby: 1. Finds that the lease and rehabilitation of the Property in accordance with the DDA and the Ground Lease will assist in the elimination of blight in the Project Area, will facilitate the development of housing for very low- and extremely low-income households, will further the goals of the Redevelopment Plan, and will be consistent with the implementation plan adopted in connection therewith. 2. Finds that the consideration to be paid for the lease of the Property is not less than the fair reuse value of the Property at the use and with the covenants and conditions imposed by the DDA and the Ground Lease. 803825-4 RESOLUTION NO. 2006-003 RDA 2