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Minutes San Leandro Redevelopment Agency Joint Meeting - July 17,2000 Page 3 B. Resolution of the San Leandro Redevelopment Agency of the City of San Leandro Approving an Owner Participation Agreement (OP A) Between the San Leandro Redevelopment Agency, Stan Boersma and Amin-Concord, LLC, for Construction of a Hotel and Self-Storage Facility Located at 524-526 Lewelling Boulevard, Assessor's Parcel Number 412-0011-001-07 (ensures the 121-room hotel and 137,000-square-foot self-storage project approved for construction by PD-99-2 meets certain development and operational requirements and provides up to $210,000 in tax-increment funds to pay for certain hotel project upgrades). Jennifer Andersen gave the staff report, reviewing the project in greater detail and explaining the rational for the Owner Participation Agreement. Vice Mayor Glaze indicated his disappointment that this project is being brought back to the Agency for proposed funding after the Agency had publicly stated when it was before them the first time there was no Redevelopment participation in the project. He commented that he feels this sets a bad precedent. Agency discussion ensued regarding their disappointment in the proposed Redevelopment funding. The Agency Members stated they didn't like the process in which the Agency supported a project "in concept," without Redevelopment Agency funding, and then had the issue come back to the Agency, with a different looking project, with Redevelopment Agency funding proposed. Council Member Loeffler commented that the City Council Economic Development and Redevelopment Committee had discussed the project funding. It was noted the proposed site is an underused site and that the proposed use will improve the area. It was also noted that the Transit Occupancy Tax income will make up for the costs, and the Agency will have a IS-year guarantee that it will be a quality hotel. The Mayor commented that the owner of the property had parceled out the property, which resulted in one owner doing two projects. She sees this project as a "win-win" for the City and stressed the importance of the IS-year guarantee of a quality hotel on the site. Discussion ensued regarding the need to amend the OP A to reflect language that would provide for a potential extension beyond the IS-year guarantee for a quality hotel. Vice Mayor Glaze said he wants to make it clear to the City Manager that these projects should not come to the Agency like this again. He feels staff needs to be more up-front about possible Redevelopment Agency participation so that it is clear to everyone involved.