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File Number: 12 -311 <br />DISCUSSION AND ANALYSIS <br />Under this Letter of Intent (LOI) the City would loan the District one million five hundred <br />thousand dollars ($1,500,000.00) from City General Fund reserves. The loan would be <br />subject to a favorable market interest rate, a defined pay off term, penalties for late payment, <br />and default provisions for non - payment, all of which would be determined by negotiation, and <br />eventually memorialized in a loan agreement that would be subject to review and approval by <br />the City Council and the Board of Education. The District has stated that funds to repay the <br />City loan over the defined term would come primarily from developer impact fees. The Parties <br />would also negotiate a payment by the District of $200,000 as a show of good faith to pay <br />back the loan. The parties have also discussed other considerations to pay off the loan, <br />including the transfer of District property to the City. <br />If the City Council approves the LOI, and authorizes the City Manager to commence <br />negotiations, the City expects that the San Leandro Unified School District Board of Education <br />will take action in response to the proposed LOI on July 17, 2012. <br />ATTACHMENTS <br />Letter of Intent to Cindy Cathey, Superintendent, San Leandro Unified School District <br />PREPARED BY: Chris Zapata, City Manager; Richard Pio Roda, Assistant City Attorney, City <br />Attorney's Office <br />City of San Leandro Page 2 Printed on 711012012 <br />