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Minutes - San Leandro City Council Meeting - January 11 , 1993 Page - 12 - NEW BUSINESS (continued) Fran David, 11260 Kerrigan Drive, Oakland, representing the Chabot Park Highlands Homeowners Association, said it is hard to understand what San Leandro will gain. He said, if they sign the MOU, they withdraw the Appeal and give away all future rights to Appeal and to file a lawsuit on the project. He said they may legally have the right to oppose, the project; but, politically, it is not a good move. He said, if the City Council withdraws the Appeal , it implies approval . He says this does not take into consideration the loss of open space. He said the project is not likely to get started in the next two to three years or even five to ten years. He said the future value of the money will be very little. He said, if the MOU is approved, the language on page 5, which states, "approved by the Oakland Planning Commission, " but does not say when or on what date, is unclear. He asked how the City could go to court on this if the MOU doesn't say what project. He asked the City Council not to make a political mistake by withdrawing the Appeal and to oppose the project. Steve Meyers, City Attorney, said the recitals in paragraphs B and C identify the project. Susan Riskind-Poulsen, 185 Sunnyside, Broadmoor Neighborhood Association, North Area Business Development Task Force, and Public Advisory Task Force on City Finances, said she has spent a great deal of time looking at budget issues and is involved in trying to develop business in the North Area. She said she is aware the City is facing shortfalls and trying to find ways to raise money. She said, if the Peralta Oaks extension is not approved, the $357,000 mitigation, which is one-third of the actual cost based on the DFSI Ordinance, will still result in a shortage of $700,000, which the City would have to pick up. She said this project would need to generate $71 million in gross sales to generate enough sales tax to make up the difference. She said the mitigation amount also does not cover on-going costs of maintenance and repair of streets, students brought into the schools, etc. Christine Scobee, 495 Fortuna Avenue, said the money will not cover the costs to the City. She said it' s not the difference between getting something or getting nothing, but it' s selling the City's right to take legal action. She said the Council is giving up the City's rights to permanently stop the project for a small amount of money. She urged the City Council to deny the MOU and consider the loss of respect to the community leaders and people who have come to this community. Mike Oliver said the DFSI does not exist in adjacent communities. He said other communities make no attempt to recover any of these costs. He said DFSI is an attempt to recover long-term costs pursuant to the Master Plan of City Streets .