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File Number: 22-122 <br />Attorney’s Office worked closely with staff and the City’s broker on the review, back and forth <br />negotiations with the property owner, and the drafting of particular PSA provisions to get to a <br />standard commercial real estate transaction agreement that is approved as to form . <br />Fiscal Impacts <br />The Nimitz Motel will cost an estimated $6,235,000 for the City to purchase: $6,150,000 <br />(purchase price) + $85,000 (estimated closing costs). The City has sufficient funds from a variety <br />of local, State and federal funding sources earmarked for affordable housing and/or a navigation <br />center to provide local matching funds for the State Project Homekey application. Project <br />Homekey will be the primary funding source for the acquisition and rehabilitation of the Nimitz <br />Motel. <br />Council action only authorizes the City Manager to execute the purchase agreement. Pledging of <br />(or intent to pledge) local, State and federal funding sources for acquisition, rehabilitation, <br />operations and services for the Property will be brought forward for City Council review on April <br />18, 2022, along with approval to submit a State Project Homekey application. <br />Upon opening of escrow, this Affordable Housing Trust Fund (Fund 167) request will cost <br />$184,500 as a refundable deposit (until July 30, 2022) and does not require increasing the <br />FY2021-2022 Adopted Budget by the same amount because there are more than $250,000 <br />available in the AHTF. <br />Budget Authority <br />This request to approve the execution of the purchase agreement of the Nimitz Motel will require <br />City Council approve transferring $184,500 from the AHTF (Fund 167) to the title company as a <br />refundable deposit until July 30, 2022. There is currently over $250,000 available in the AHTF. <br />ATTACHMENT(S) <br />Attachment(s) to Staff Report <br />·None <br />Attachment(s) to Related Legislative File <br />· Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate (Purchase <br />Agreement) (Note: The redlined markups in the attached Purchase Agreement are the final <br />text in the Agreement that will be executed by all authorized parties.) <br />PREPARED BY: Tom Liao, Director, Community Development Department <br />Page 6 City of San Leandro Printed on 3/16/2022