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Minutes - San Leandro City Council Meeting - October 19, 1992 Page - 9 - NEW BUSINESS (continued) vacant for a number of months and be detrimental to the economic development program which has already taken place in the North Area. He said the City does not want to see a repeat of what happened to the commercial structure on East 14th Street which has been sitting vacant for some time. He said this project would form a partnership. He said the Agreement has been reviewed by the City Attorney's Office and the Finance Director, and he is confident it contains necessary securities to grant a short-term loan. Council Member Perry said she did not have a problem with this particular project, but she did feel that implementation of the program was premature since the City Council had only approved the program in concept. She said the Council is waiting for answers to questions on how the program will run. She said there may be other projects which would be better funded through the program. Mr. Emslie said the funds allocated would be directed toward this particular project. He said staff feels this project will provide the biggest bang for the buck. He said the program was actually generated as a result of this problem and the program would continue and constitute a revolving fund. He said there would be a new allocation in Fiscal Year 1992-93 and this project would be a test and also a good advertisement for the program itself. Council Member Perry said she is concerned that there should have been an open period to apply for this type of loan. Council Member Corbett said she had been concerned regarding the open- ended terms of the program regarding interest and the definition of viability of a business. She said she feels better after reviewing the proposed documents, such as the interest rate and the Promissory Note. She said she thinks this is a good project. She said she is concerned that, in the future, criteria related to interest, business viability, etc. , be tied down. She said she feels the City should go forward with this project, but she hopes staff will come back with criteria in the next couple of meetings. Council Member Myers said he has no problem with the project but feels that there should be guidelines. He said proceeding with this project is a good advertisement to the public of the program, and he would like to see this go forward. He also asked that staff come back with guidelines. Council Member Faria asked what the City's position was on the Deed of Trust. Staff said the City was in second position. Council Member Corbett referred to Section 5.02 of the Agreement and asked if it would limit further encumbrances beyond the first and seconds on the Deed of Trust.