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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO
<br />RESOLUTION NO. 2018-160
<br />RESOLUTION OF THE CITY OF SAN LEANDRO CITY COUNCIL TO
<br />APPROVE A GENERAL FUND LOAN OF 5455,107.36 AND THE LOAN
<br />AGREEMENT, PROMISSORY NOTE, AND A DEED OF TRUST ON 2539 GRANT
<br />AVENUE, SAN LEANDRO TO SECURE THE LOAN, BETWEEN THE CITY AND
<br />MTLG, LLC
<br />WHEREAS, MTLG, LLC, the "Borrower," owns real property located at 2539 Grant
<br />Avenue, San Leandro, CA 94579, APN 8OG-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
<br />conversion project and height variance ("Project") to be located on the Property. On May 8,
<br />2013, interested persons ("Petitioners") filed a writ of mandate pursuant to the California
<br />Environmental Quality Act ("CEQA") in Alameda County Superior Court, Case No.
<br />RG13677840, alleging that the City, in its regulatory capacity, failed to comply with CEQA and
<br />CEQA Guidelines in approving the Project (the "Litigation"). On April 14, 2014, the Alameda
<br />County Superior Court entered judgment in favor of the Petitioners, and the court issued a writ of
<br />mandate to the City. Thereafter, the court awarded Petitioners' counsel attorneys' fees. The City
<br />and Halus appealed the award of attorneys' fees, but on January 12, 2018, the Court of Appeal
<br />upheld the trial court's award of attorneys' fees and awarded Petitioner attorneys' fees for the
<br />appeal action; and
<br />WHEREAS, Halus agreed to pay all costs incurred by the City in defending approval of
<br />the Project and related litigation. The City paid $186,382.25 for appeal fees and $232,425.65 in
<br />trial court fees, and Borrower owes the City an additional $36,299.46 in other outstanding fees
<br />(collectively, "Litigation Costs"); and
<br />WHEREAS, the City paid the Litigation Costs, and Borrower has agreed to repay to the
<br />City an amount equal to the Litigation Costs, totaling Four Hundred Fifty Five Thousand One
<br />Hundred Seven Dollars and Thirty Sixty Cents ($455,107.36.) (the "Loan") pursuant to the
<br />terms and conditions of a loan agreement; and
<br />WHEREAS, the Loan would be evidenced by a promissory note, and secured by a Deed
<br />of Trust on 2539 Grant Avenue. The terms of the loan are 2% simple interest per annum,
<br />repayment would commence July 1, 2019, and would be for a 10 year term. If the property is
<br />sold, assigned, or otherwise transferred as defined by the agreement, then the loan payments
<br />would accelerate to pay off the loan; and
<br />RESOLUTION NO. 2018-160
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