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City of San Leandro <br />Meeting Date: September 3, 2019 <br />Resolution - Council <br />Agenda Section:File Number:19-377 ACTION ITEMS <br />Agenda Number: <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Tom Liao <br />Community Development Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:RESOLUTION of the City of San Leandro City Council to Approve (1) a General <br />Fund Loan of $300,000; and (2) a Loan of $300,000 from CDBG Funds to the <br />San Leandro Boys And Girls Club, Inc., and to Authorize the City Manager to <br />Execute the Loan Agreements <br />WHEREAS, the City of San Leandro owns the property located at 401 Marina Boulevard, San <br />Leandro, California (the “Property”); and <br />WHEREAS, the San Leandro Boys And Girls Club, Inc. (“Boys and Girls Club”) owns and operates <br />a clubhouse, pool and aquatic center on the Property that serves the San Leandro community; and <br />WHEREAS, Boys and Girls Club desires to undertake certain capital improvements to renovate and <br />repair the clubhouse, including modernizing locker rooms and meeting spaces, as well as other <br />infrastructure upgrades on the Property, and seeks City’s assistance to accomplish this goal; and <br />WHEREAS, the City receives funds from the United States Department of Housing and Urban <br />Development under Title I of the Housing and Community Development Act of 1974, as amended <br />(“CDBG”), and desires to provide CDBG funded loans to qualified local nonprofit organizations, like <br />Boys and Girls Club, to assist such organizations with capital improvement projects, in conformance <br />and accordance with CDBG and HUD laws and regulations; and <br />WHEREAS, the City Council has also determined that the improvements to be undertaken by Boys <br />and Girls Club will serve a public benefit because the Property is a recreational facility used by the <br />entire San Leandro Community; and <br />WHEREAS, the City Council desires to provide Boys and Girls Club with a forgivable loan from the <br />General Fund of Three Hundred Thousand Dollars ($300,000) (the “General Fund Loan”) and a <br />forgivable loan of CDBG funds of Three Hundred Thousand Dollars ($300,000) (the “CDBG Loan”); and <br />WHEREAS, both the General Fund Loan and CDBG Loan will be for ten years at three percent (3%) <br />interest, but will be forgiven at the end of the loan term if Boys and Girls Club is not in default of either <br />Loans’ covenants, conditions, and requirements; and <br />WHEREAS, because the City already owns the Property, neither the General Fund Loan nor CDBG <br />Loan can or will be secured by a deed of trust. <br />NOW THEREFORE, the City Council of the City of San Leandro hereby RESOLVES that: <br />1. The above recitals are true, correct, and a part of this Resolution. <br />2. The General Fund Loan is approved and the City Manager is authorized to execute the General <br />Page 1 City of San Leandro Printed on 8/28/2019 <br />228