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City of San Leandro <br />Meeting Date: December 17, 2018 <br />Resolution - Council <br />Agenda Section:File Number:18-646 CONSENT CALENDAR <br />Agenda Number: <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:City Attorney and <br />Rich Pio Roda <br />City Attorney <br />FINANCE REVIEW:Not Applicable <br />TITLE:RESOLUTION of the City of San Leandro City Council to Approve a General <br />Fund Loan of $455,107.36 and the Loan Agreement, Promissory Note, and a <br />Deed of Trust on 2539 Grant Avenue, San Leandro to Secure the Loan, between <br />the City and MTLG, LLC <br />WHEREAS, MTLG, LLC, the “Borrower,” owns real property located at 2539 Grant <br />Avenue, San Leandro, CA 94579, APN 80G-910-15 (the “Property”). The Property is 204,732 <br />square feet, flag shaped, and is zoned IG. It is improved with a +(-) 13,382 square foot building. <br />A broker’s opinion obtained by the City May 2018 provided a value of between $7,800,000 to <br />$8,100,000; and <br />WHEREAS, on April 1, 2013, the City approved Halus’ proposed wind energy conversion <br />project and height variance (“Project”) to be located on the Property. On May 8, 2013, interested <br />persons (“Petitioners”) filed a writ of mandate pursuant to the California Environmental Quality Act <br />(“CEQA”) in Alameda County Superior Court, Case No. RG13677840, alleging that the City, in its <br />regulatory capacity, failed to comply with CEQA and CEQA Guidelines in approving the Project <br />(the “Litigation”). On April 14, 2014, the Alameda County Superior Court entered judgment in <br />favor of the Petitioners, and the court issued a writ of mandate to the City. Thereafter, the court <br />awarded Petitioners’ counsel attorneys’ fees. The City and Halus appealed the award of <br />attorneys’ fees, but on January 12, 2018, the Court of Appeal upheld the trial court’s award of <br />attorneys’ fees and awarded Petitioner attorneys’ fees for the appeal action; and <br />WHEREAS, Halus agreed to pay all costs incurred by the City in defending approval of the <br />Project and related litigation. The City paid $186,382.25 for appeal fees and $232,425.65 in trial <br />court fees, and Borrower owes the City an additional $36,299.46 in other outstanding fees <br />(collectively, “Litigation Costs”); and <br />Page 1 City of San Leandro Printed on 12/11/2018