Agmt 2005 Mercy Housing California (3)

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e¢~"~`° AMENDMENT TO EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT This Amendment to Exclusive Negotiating Rights Agreement (this "Amendment") is entered into effective as of December 9, 2005, ("Effective Date") by and between Mercy Housing California, a California nonprofit public benefit corporation ("Developer") and the Redevelopment Agency of the City of San Leandro ("Agency"). Developer and Agency are hereinafter collectively referred to as the Parties. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Exclusive Negotiating Rights Agreement (as defined below). WHEREAS, the Parties entered into that certain Exclusive Negotiating Rights Agreement dated as of September 6, 2005 ("Agreement") pursuant to which among other obligations, the Developer agreed to obtain or perform certain economic and design analyses related to the redevelopment of the Islander Motel located at 2398 East 14th Street in the City of San Leandro (the "Property"), and the Agency agreed to provide funding for such work in the amount and in accordance with the terms and conditions specified in the Agreement; WHEREAS, the Parties have determined that it is necessary to obtain a market study in order to assess the economic feasibility of the project proposed to be developed on the Property; WHEREAS, Developer has requested, and Agency has agreed to increase the maximum amount payable by the Agency pursuant to the Agreement by the sum of Seven Thousand Dollars ($7,000) for the purpose of obtaining a market study for the proposed project; and WHEREAS, the Parties desire to amend the Agreement to reflect the foregoing. NOW THEREFORE, in consideration of the mutual covenants of the Parties and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows. Section 7 of the Agreement is amended to add the following to the first paragraph: In addition to the foregoing, as part of Developer's Predevelopment Work, by no later than January 31, 2006, Developer shall obtain a market study prepared by an independent third party in accordance with California Tax Credit Allocation Committee guidelines which shall provide an analysis of demand for residential units in the proposed project at rents affordable to low- and very-low income households. Upon receipt of a copy of such study, an invoice therefor, and such other documentation as Agency may reasonably require, Agency shall reimburse Developer for the cost of such market study in an amount not to exceed Seven Thousand Dollars ($7,000). The Parties agree 796142-]