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Letter of Intent 2 October 15, 2008 Concurrent with the adoption of the TOD Strategy, the City's Zoning Code was updated. The current Zoning Code, Section 2-636, includes the following development requirements for the Site: • Ground floor retail on Washington Avenue • Maximum residential density of 24 units per acre • Maximum building height of 75 feet • Maximum office density of 2.0 FAR In July 2007, the Agency entered into exclusive negotiations with the second ranked company, John Benjamin Company; Robert Caruso, Principal. Staff worked closely with the John Benjamin Company on numerous development concepts and financial proformas and in June 2008, negotiations ended as a project with commercial on the ground floor of Washington Avenue and a minimum of nine (9) residential units was found by the John Benjamin Company to be not economically viable at the time. The Agency has been contacted by the third-ranked company, Langon Homes, David Langon, President, as they remain interested in developing the Site. Langon Homes has continued developing in this challenging market with the completion of the nine residential unit development, Toscani Place, on Davis Street and more recently, the six unit residential development, Arbor Place, on Hays Street in downtown. Langon Homes is a quality developer with a commitment to building green and a desire to continue to build in San Leandro. Langon Homes' proposal included the development of nine residential units and approximately 3,340 square feet of retail/professional space. Although staff recognizes the challenges of developing this Site given the current market, we recommend entering into aone-hundred and twenty (120) day letter of intent to negotiate exclusively with Langon Homes. During this time, Agency staff and Langon Homes will negotiate in good faith towards the preparation of a draft Development and Disposition Agreement (DDA) which would then be presented to the Agency Board for approval. Current Redevelopment Agency Policy The December 2007 Mid-Term Review of the San Leandro Redevelopment Agency 2004-09 Implementation Plan identifies the development of 1595 Washington Avenue and 268 Parrott Street as a project which will improve the economic health of the Joint Project Area and encourage private investment. Previous Redevelopment Agency Action(s) - N/A. C~ CounciURedevelopment Agency Committee Review and Action The Business Development Committee reviewed this item on September 11, 2008 and recommended that staff bring it forward to the Agency for authorization. Applicable General Plan Policy - N/A. Permits andlor Variances Granted - N/A. G:ADEPT10ffice of Business Development\Files RDA\Joint Project Area\1595 Washington\I,angonHomes\LetterofIntentStaffReport 10-20-08. doc