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File Number: 19-376 <br />several funding sources for the B & G Club. The estimated total project cost for the renovations is <br />currently estimated to be $9.9 million. (The City is separately funding and directly managing the <br />renovation of the pool itself.) <br />Staff proposes that the City Council provide the $600,000 to the B & G Club as forgivable loans. <br />The interest rate for each loan would be 3% and the loan term would be 10 years. As long as the <br />B & G Club complies with all of the loans’ requirements, one tenth (1/10) of each loan will be <br />forgiven each year. After the 10 year period, each loan and any accrued interest will be <br />completely forgiven. If B & G Club defaults or fails to cure after notice any breach of the loans’ <br />covenants or conditions, the City has available to it various remedies, including specific <br />performance, and acceleration of the loan payments, amongst others. <br />Current Agency Policies <br />HUD Five Year Consolidated Plan for 2015-2020: This five year plan was adopted by Resolution <br />No. 2015-080 on April 20, 2015. One of the priorities identified in this document for Community <br />Development Block Grant (CDBG) expenditures is “Non-Housing Community Development <br />Projects.” HUD requests that cities identify specific action areas where CDBG funds can be <br />spent. In “Actions Planned to Develop Institutional Structure” staff named capital improvement <br />projects conducted by area non-profit organizations that provide social services to the City as a <br />priority area that CDBG funds could support. <br />Previous Actions <br />The City Council initially allocated these funds as part of the Fiscal Year 2018-19 budget. Those <br />funds will be carried over to FY 2019-20 upon adoption of the attached resolution. <br />HUD FY 2019-2020 Action Plan: On May 6, 2019, the City Council approved the FY 2019-2020 <br />Action Plan, which contains the B & G Club Organization Capital Improvement Project described <br />above. <br />Environmental Review <br />A National Environmental Protection Act (NEPA) review was conducted and found this project to <br />be in compliance with those standards. <br />Legal Analysis <br />The City Attorney’s Office has reviewed and approved the staff report and resolution. In close <br />coordination with staff, the City Attorney’s Office drafted the loan agreements, and promissory <br />notes. <br />Fiscal Impacts <br />The City of San Leandro will commit $600,000 to the B & G Club Organization Capital <br />Improvement Project. This will be funded by the City’s Community Development Block Grant <br />Page 2 City of San Leandro Printed on 8/28/2019 <br />226