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File Number: 18-639 <br />special benefits or services over and above those currently provided by the City of San Leandro. <br />The District includes all property owners within the boundaries ofthe attached map. The function of <br />the CBD is also one of an advocacy organization that seeks to improve the overall appearance, <br />building/commercial mix, and public space improvements within the district. <br />Discussion <br />The cost of projects has increased requiring SLIA to seek grants necessary to complete the <br />landmark sign and the bocce ball court. Accordingly, SLIA staff approached the City with a <br />request to amend the loan term while the fundraising efforts take place. The proposed <br />amendment would include three years of interest only payments before the initiation of principal <br />and interest payments in 2022. <br />The projected allocation of funds from the City loan follows: <br />Landmark sign - $170,000 (design/build plus plans and permits). The sign would be located in <br />the Downtown and would span East 14th Street. (not yet underway) <br />Bocce Ball courts - $ 90,000. The bocce ball courts would be located in Root Park. (not yet <br />underway) <br />Small capital improvements and equipment for use in the Downtown: $25,000 <br />a. Pressure washer trailer and equipment - $10,000 <br />c. Public Amenities -- Tables, chairs umbrellas, concrete planters - $15,000 <br />Total: $285,000 <br />Adjusted Loan Terms: Current balance of $260,139 will be paid back over five years <br />commencing January 31, 2022. Semi-annual payments are due on January 31 and July 31. The <br />first payment commences January 31, 2019 and the final payment is due July 31, 2026. <br />Additional detail is provided in the loan amortization schedule attached at the end of this report. <br />The source of repayment is the City mandated assessments paid annually into the SLIA <br />Community Benefit District. Annual revenues would be set-aside, on a priority basis, to make the <br />debt service payment; the coverage would be more than six times the annual debt service <br />($375,000 available to pay annual debt service, which is approximately $57,000/year during <br />years 2022 to 2026). <br /> <br />Legal Analysis <br /> <br />The City Attorney drafted the Loan Agreement and Promissory Note in compliance with all <br />generally and specifically applicable laws and regulations. The City Attorney also drafted the First <br />Amendment. <br /> <br />Fiscal Impact <br /> <br />Under the terms of the existing loan, the remaining loan payments due to the City are $267,288. <br />Page 2 City of San Leandro Printed on 12/11/2018