10C Action 2012 0618 - Laserfiche WebLink

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LETTER OF INTENT The purpose of this "Letter of Intent" is to provide a framework for a proposed loan agreement ( "Agreement ") between the City of San Leandro ( "City ") and the San Leandro Unified School District ( "SLUSD" or "District ") to assist the District in its purchase of real property located at 13666 East 14 Street, San Leandro, California, 94578 (APN ) ( "Property "). Background and Current Conditions: The District is cooperating with Alameda County on a Federal grant application to expand District facilities near San Leandro High School for administrative and instructional purposes, and to develop a neighborhood serving medical and dental clinic. It is the City's understanding that the District is interested in purchasing, and Girls, Inc. (the current owner of the Property) is interested in selling the Property to the District. The purchase and renovation of the Property by the District is a key component of the grant application. The City is interested in loaning the District monies out of the City's General Fund reserves to assist in the purchase of the Property. The interest rate, term, and other provisions of the loan would be negotiated by and amongst the parties. It is the City's understanding that the District will pay with or pledge District development impact fees to repay the City's loan. The Parties agree that additional consideration could involve the District transferring to the City, for a nominal amount, property near Bancroft School owned and currently unused by the District. The transfer of this property could be used to reduce the amount of the loan principal. Proposed Loan Terms: The City will loan the District a total of one million five hundred thousand dollars ($1,500,000.00) to be paid off over a defined term at a favorable interest rate to be determined by the parties, all to be memorialized in a loan agreement approved by the respective parties' governing bodies. To demonstrate the District's good faith in paying off the City's loan the District will immediately transfer back to the City two hundred thousand dollars ($200,000.00) as a reduction of Principal upon execution of the loan agreement. 2. As part of the consideration, the parties agree to negotiate the transfer of District property near Bancroft Middle School to the City. The value of the property transferred may be applied as a credit against the loan Principal. 3. The City will not be responsible for any maintenance, upkeep or repair to the Property. Loan Approval Process: Both parties hereby understand that this Letter of Intent (and appropriate final Agreement) may be subject to the approval of and /or non - objection by the following agencies /organizations: 1. The City Council for the City of San Leandro 2. The San Leandro Unified School District Board of Education 1898828.1